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PROJECT REPORT ON “HUMAN RESOURCES MANAGEMENT IN PRIVATE SECTOR BANK”

BACHELOR OF COMMERCE BANKING AND INSURANCE SEMESTER-V

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR AWARD OF DEGREE OF BACHELOR OF COMMERCE – BANKING AND INSURANCE BY RAJNI NAIDU ROLL NO.39

SMT.CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE ULHASNAGAR-3

CERTIFICATE

THIS IS TO CERTIFY THAT SHRI/MISS RAJNI NAIDU OF B.COM BANKING AND INSURANCE SEMESTER-V (2009-2010) HAS SUCCESSFULLY COMPLETEDTHE PROJECT ON HRM IN PRIVATE SECTOR BANK UNDER THE GUIDANCE OF PROF. KAJAL BHOJWANI

COURSE CO-ORDINATOR

PRINCIPAL

INTERNAL EXAMINAR

EXTERNAL EXAMINAR

DECLARATION

I, MISS RAJNI NAIDU, THE STUDENT OF B.COM BANKING AND INSURANCE- SEMESTER-V (2009-2010) HEREBY DECLARE THAT I HAVE COMPLETED THE PROJECT ON HUMAN RESOURCES MANAGEMENT IN PRIVATE SECTOR BANK. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.

SIGNATURE OF STUDENT RAJNI NAIDU ROLL NO.39

METHODOLOGY Primary Data Collection:The primary data was collected by making a visit to…..  ICICI Bank,andheri branch  ICICI,ambarnath The view and opinions were collected from the above mentioned bank. Secondary data collection:The secondary data has been collected from the following sources….  HRM books  Websites  Magazine

ACKNOWLEDGEMENT

I, WOULD LIKE TO ACKNOWLEDGE THE FOLLOWING AS BEING AN IDEALIST CHANNEL AND A FREASH DIMENSION IN THE COMPLETION OF THIS PROJECT. FIRST AND FOREMOST I WOULD LIKE TO THANK MY GUIDE, PROFESSOR KAJOL BHOJWANI WHO’S IN VALUABLE SUPPORT AND GUIDANCE HELPED ME IN EVERY ASPECT OF THIS PROJECT. SECONDLYT, I WOULD LIKE TO EXPRESS MY DEEP SENSE OF GRATITUDE TOWARDS OUR BANKING AND INSURANCE CO-ORDINATOR PROFESSOR KISHORE PISHORI FOR THEIR VALUABLE GUIDANCE AND SUPPORT WITHOUT THIS PROJECT WOULD HAVE NOT BEEN POSSIBLE. LAST BUT NOT THE LEAST I WOULD LIKE TO THANK ALL THE RESPONDENTS FOR THEIR SUPPORT ANDALL THOSE PEOPLE WHO DIRECTLY AND INDIRECTLY HELPED ME IN COMPLETING THIS PROJECT SATISFACTORILY.

OBJECTIVE:-

1) To understand the role of HRM in banks 2) To know the functions of HRM 3) To know the need of HRM in banks 4) To know the structure and position of HR department 5) To study the Human Resources Management 6) To know the changing bank environment and role of HRM

EXECUTIVE SUMMARY
Fast global and technological developments have made today's business environment highly uncertain and even chaotic. Organizations are seeking newer ways to promote their adaptability to the complexities of the changed scenario so as to survive and prosper. Globally, organizations are striving to realize competitive success through strategic management of human resources. Thus, people management has never been more important than it is today. Therefore new themes have emerged in the process, replacing some of the old ones. The new thinking in this regard is referred to as Human Resource Management (HRM), which carries a more proactive and strategic connotation. In this project it includes the focus on HRM as Human Resource Management. Indicating the ability of banks to deliver value to customer.

BROAD CONTENTS Sr.no. 01 02 03 04 Chapters Human Resources Management Human Resources Management in Private Sector Banks Case Study on ICICI Conclusion Page no. 1-44 45-56 57-67 68-70

Human Resource Management (HRM) INDEX

Sr.no
01 02 03 04 05 06 07 08 09 10 11

Particulars
Introduction Meaning and definition Scope of HRM Evolution of HRM Objectives of human resource management Functions Positions and structure of HRM Human Resources planning Focus on HRM HRM implementation activities HRM development and implementation responsibilities Evaluation of HRM methods

Pg.no. 1 2-6 7 8-14 15-16 17-24 24-27 28-31 32-33 34-38 39-41 42-44

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INTRODUCTION
“Human Resources Management” (HRM) is a management functions that helps managers recruit, select. Train and develop members for an organization. HRM involves the application of management functions and principles. The functions and principles are applied to acquisitioning, developing, maintaining and remunerating employees in organizations. It is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objectives. Thus, HRM refers to a set of programmers, functions and activities designed and carried out in order to maximize both employees as well as organizational effectiveness.

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

Thus, human resource management refers to a set of programmer, functions and activities designed and carried out to maximize both, employee as well as organizational effectiveness.

It is concerned with the people dimensions in the management. Since every organization is made up of people, Human resources Management is also management function concerned with hiring motivating and maintaing people in an organization . It focuses on people in organization acquiring their services developing their skills motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of organization –government, business, education, health, recreation or social actions. Human resource is one of the natural resources of any country’s economy. ~2~
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It is the wealth of the country. In the context of banking, human resource is of greater importance. The deployment of human resource through proper and efficient selection, training and development, is called Human Resource Management.

The success of any bank or organization largely depends on efficient human resource management, apart from operations, marketing and sales, the HR department manages all the efficient people working in operations and marketing divisions in any organization. Human resources are a term with which many organizations describe the combination of traditionally administrative personnel functions with performance management, employee relations and resources planning. The field draws upon concepts developed in industrial/organizational psychology. Human resources have at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one or four factors of production. The more common usage within corporations and business refers to the individual within the firm and to the portion of the firm’s organization that deal with hiring, firing, training, and other personnel issues. ~3~
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Human resources management (HRM), or human resource development, entails planning, implementing, and managing recruitment as well as selection, training, career and organizational development initiative within an organization. The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and training employees as valuable resources. Consequently, HRM encompasses efforts to promote personal development, employee’s satisfaction, and compliance with employmentrelated laws. Michael j.jucius defined as” the field of management which has to-do with planning, organizing, directing and controlling the functions of procuring, developing, maintaining and utilizing a lobour force, such that the(a) objective for which the company is established are attained economically and effectively,
(b)

objective of all levels of personnel are served to the highest possible degree, and

(c) objectives of society are duly considered and served”

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To achieve equilibrium between employer and employee goals and need, HRM department focus on these three general functions:-

1. planning 2. implementing and 3. evaluation The planning function refers to the development of human resources policies and regulations. Human resources manager attempt to determined future HRM activities and plan for implementing of HRM procedures to help companies realizes their goals. Implementing of HRM plans involves four primary activities: a) Acquisition, b) Development, c) Compensation and d) Maintenance.

Acquisition entails the hiring of workers most likely to help a company attain its goals. The development function encompasses the training of workers to perform their task in accordance with company strategy.

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This activity also involves company efforts to control and change employee behavior, appraisals, incentives and discipline.

Compensation covers the payment of employees for their services. Maintenance requires structuring labor relations the interaction between a company’s management and its unionized employees and ensuring compliance with federal and state employment law.

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SCOPE OF HRM

The scope of HRM is indeed vast. All major activities in the working life of a worker-from the time of his or her entry into an organization until he or she leaves-come under the preview of HRM. Specially, the activities included are-HR planning, job analysis and design, recruitment and selection, orientation and placeme3nt, training and development, performance appraisal and job evaluation.

Human resource management serves these key functions:
1. Recruitment & Selection 2. Training and Development (People or Organization) 3. Performance Evaluation and Management 4. Promotions/Transfer 5. Redundancy 6. Industrial and Employee Relations 7. Record keeping of all personal data 8. Compensation, pensions, bonuses etc in liaison with Payroll 9. Confidential advice to internal ‘customers’ in relation to problems at work 10.Career development
11. Competency Mapping

12.Time motion study is related to H.R.Function

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EVOLUTION OF HRM

The momentum for the industrial revolution grew through the 17th century. Agricultural methods were continually improving, creating surpluses that were used for trade. In addition, technical advances were also occurring, for example the Spinning Jenny and the Steam Engine. These advances created a need for improved work methods, productivity and quality that led to the beginning of the Industrial Revolution. Adam Smith. In 1776, Adam Smith wrote about the economic advantages of the division of labour in his work The Wealth of Nations. Smith (1776) proposed that work could be made more efficient through specialization and he suggested that work should be broken down into simple tasks. From this division he saw three advantages: - the development of skills - time saving - the possibility of using specialized tools. Smith's suggestions led to many changes in manufacturing processes.

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Every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it.

By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it." Adam Smith, considered by many to be the father of Capitalism, also discussed the Invisible Hand or Laissez Faire approach (this term is not used in the book but argues the case). "According to the hidden hand approach, the only responsibility of business is to maximize profits according to the market principle and within the constraints of the law. If government interference in business is restricted to a minimum, society will benefit automatically from the activities of the business sector." According to Rossouw (1994) the hidden hand approach lost value when societies did not benefit automatically from business activity. It was clear that business could not be relied upon to act in the best interests of is staff, consumers and the society within which it was operating. ~9~
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In 1832, Charles Babbage examined and expanded upon the division of labour in his work, On the Economy of Machinery and Manufacturers. In this book Babbage offered, as an advantage to the division of labour,

that the amount of skill needed to undertake a specialized task was only the skill the necessary to complete the task. Babbage analysed and documented the manufacture of a pin and broke the process down into seven elements to illustrate his point. This study became important to employers in that they only had to pay for the amount of skill required to complete a task. Trade Unions. During the late 1700's and early 1800's governments began to feel pressure from the working class masses who started to question and defy the power of the aristocracy. The working class began to form workplace combinations and trade organizations provide a collective voice for their rights. Governments tried to fight this using legislation such as the Combination Acts of 1799/1800 in the UK, which Banned everything from meetings to combinations.

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"There were also attempts to form general unions of all workers irrespective of trade. William Benbow (a Lancashire shoemaker), Robert Owen and many others looked upon trade unionism not just as a means for protecting and improving workers' living standards, but also as a

vehicle for changing the entire political and economic order of society. Owen experimented with co-operative ventures and 'labour exchanges'; both attempts to bypass the existing order of wage slavery." (Trade Unions Congress, 2004) Trade Unions were and are still an influential force, working for continued economic and social development of workers and societies in many countries around the world. Taylor is considered to be the father of Scientific Management. In 1911, his seminal work, The Principles of Scientific Management was published. This book contains four overriding principles of scientific management: - Each part of an individuals work is analysed 'scientifically'. - The most suitable person to undertake the job is 'scientifically chosen' and is taught the exact way to do the job.

- Managers must co-operate with workers to ensure the job is done in a Scientific way. ~11~
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- There is a clear division of work and responsibility between management and workers. (Bloomsbury, 2002)

"Taylor's impact has been so great because he developed a concept of work design, work measurement, production control and other functions, that completely changed the nature of industry. Before scientific management, such departments as work study, personnel, maintenance and quality control did not exist." The Hawthorne Studies :The Hawthorne Studies were a groundbreaking set of experiments conducted at the Western Electric plant in Hawthorne, Chicago by Elton Mayo. The studies were conducted from 1927 to 1932 and measured the relationship between productivity and working environment. The studies were based on preliminary experiments conducted in 1924 that measured the effect of lighting on productivity. (Bloomsbury, 2002) The results of the experiments showed that changes in the environment did affect productivity, but this was not the sole factor. The results of the experiments showed that changes in the environment did affect productivity, but this was not the sole factor. The workers considered management to be showing an interest in them and this improved motivation. ~12~

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Mayo's studies and the subsequent results were a significant break from the theories of F.W. Taylor in that the workers were not solely motivated by self interest. Mayo's research has led to the

understanding that workplaces are more than machine like environments in that there are social environments and human emotions that require consideration. Mayo's studies led to the rise of the Human Relations Movement Contemporary Human Resource Management. In modern business the Human Resources Management function is complex and as such has resulted in the formation of Human resource departments/divisions in companies to handle this function. The Human resource function has become a wholly integrated part of the total corporate strategy The function is diverse and covers many facets including Manpower planning, recruitment and selection, employee motivation, performance Monitoring and appraisal, industrial relations, provision management of employee benefits and employee education training and development.

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18901910

Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive-based compensation systems to motivate employees. Many companies establish departments devoted to maintaining the welfare of workers. The discipline of industrial psychology begins to develop. Industrial psychology, along with the advent of World War I, leads to advancements in employment testing and selection. The interpretation of the Hawthorne Studies' begins to have an impact on management thought and practice. Greater emphasis is placed on the social and informal aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to increase their productivity. In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater emphasis on collective bargaining and labor relations within personnel management. Compensation and benefits administration also increase in importance as unions negotiate paid vacations, paid holidays, and insurance coverage.

19101930

19301945

19451965

The first is the increasing diversity of the labor force, in terms of age, gender, race, and ethnicity. A second trend is the globalization of business and the accompanying technological revolution. These factors have led to dramatic changes in transportation, 1985communication, and labor markets. The third trend, which is related present to the first two, is the focus on HRM as a "strategic" function. HRM concerns and concepts must be integrated into the overall strategic planning of the firm in order to cope with rapid change, intense competition, and pressure for increased efficiency.

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OBJECTIVE OF HUMAN RESOURCES MANAGEMENT

Objectives are pre-determined goals to which individual or group activity in an organization is directed. Objectives of human resources management are influenced by social objectives, organizational objectives, functional objectives and individual objectives. Institutional are instituted to attain certain specific objectives. The objectives of the economic institute are mostly too earn profits, and that of educational institutions are mostly impart education and conduct research so on and so forth. However, the fundamental objectives if any organization is survival. Organizations are not just satisfied with goal. Further, the goal of the most of the organization is growth and/or profit. The objectives of HRM may be as follows:-

i.

To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.

ii.

To establish and maintain sound organizational structure and desirable working relationship among all the members of the organization. ~15~

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iii.

To secure the integration of individual and groups within the organization by co-ordination of the individual and group goals with those of the organization.

iv.

To create facilities and opportunities for individual or group development so as to match it with the growth of the organization.

v.

To attain an effective utilization of human resources in the achievement of organizational goals.

vi.

To identify and satisfy individually and group needs by providing adequate and equitable wages, incentives, employee benefits and social security and measures for challenging work prestige, recognition, security, status etc.

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FUNCTION OF HRM
The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices managing employee conform your to various to and regulations. Activities also include approach benefits

compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.

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Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, e.g., career development, training, organization development, etc.There is a long-standing argument about where HR-related functions should be organized into large organizations, e.g., "should HR be in the Organization Development department or the other way around?" The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner.

Following are the some of the functions in details:Recruitment strategy planning:An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage;

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In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process). Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection. Equally some small organizations exist to 'head hunt', i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the 'cost' of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants.

Employee motivation:To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per

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cent of the gross pay of manual workers is often the result of local negotiations and details(e.g. which particular hours shall be worked) of conditions of service are often more important than the basics. Hence there is scope for financial and other motivations to be used at local levels. As staffing needs will vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. The latter can depend upon other factors (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as 'fair and just' there will be no motivation.

Employee services
Attention to the mental and physical well-being of employees is normal in many organizations as a means of keeping good staff and attracting others. The forms this welfare can take are many and varied, from loans to the needy to counseling in respect of personal problems. Among the activities regarded as normal are:

Schemes for occupational sick pay, extended sick leave and access to the firm's medical adviser; Schemes for bereavement or other special leave; The rehabilitation of injured/unfit/ disabled employees and temporary or permanent move to lighter work;

• •

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The maintenance of disablement statistics and registers (there are complicated legal requirements in respect of quotas of disabled workers and a need for 'certificates' where quota are not fulfilled and recruitment must take place); Provision of financial and other support for sports, social, hobbies, activities of many kinds which are work related; Provision of canteens and other catering facilities; Possibly assistance with financial and other aid to employees in difficulty (supervision, maybe, of an employee managed benevolent fund or scheme); Provision of information handbooks, Running of pre-retirement courses and similar fringe activities; Care for the welfare aspects of health and safety legislation and provision of first-aid training.

• •

• • •

The location of the health and safety function within the organization varies. Commonly a split of responsibilities exists under which 'production' or 'engineering' management cares for the provision of safe systems of work and safe places and machines etc., But HRM is responsible for administration, training and education in awareness and understanding of the law, and for the alerting of all levels to new requirements.

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Employee education, training and development:In general, education is 'mind preparation' and is carried out remote from the actual work area, training is the systematic development of the attitude, knowledge, skill pattern required by a person to perform a given task or job adequately and development is 'the growth of the individual in terms of ability, understanding and awareness'. Within an organization all three are necessary in order to:
• • • • •

Develop workers to undertake higher-grade tasks; Provide the conventional training of new and young workers Raise efficiency and standards of performance; Meet legislative requirements (e.g. health and safety); Inform people (induction training, pre-retirement courses, etc.);

From time to time meet special needs arising from technical, legislative, and knowledge need changes. Meeting these needs is achieved via the 'training loop'. (Schematic available in PDF version.) The diagnosis of other than conventional needs is complex and often depends upon the intuition or personal experience of managers and needs revealed by deficiencies. Sources of inspiration include

Common sense - it is often obvious that new machines, work systems, task requirements and changes in job content will require workers to be prepared;

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Shortcomings revealed by statistics of output per head, performance indices, unit costs, etc. and behavioral failures revealed by absentee figures, lateness, sickness etc. records; Recommendations organizations; Inspiration supervisors; and of government of and industry training and

innovations

individual

managers

• •

Forecasts and predictions about staffing needs; Inspirations prompted by the technical press, training journals, reports of the experience of others; The suggestions made by specialist (e.g. education and training officers, safety engineers, work-study staff and management services personnel).

Designing training is far more than devising courses; it can include activities such as:
• • •

Learning from observation of trained workers; Receiving coaching from seniors; Discovery as the result of working party, project team membership or attendance at meetings; Job swaps within and without the organization; Undertaking planned reading, or follow from the use of self– teaching texts and video tapes;

• •

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Learning via involvement in research, report writing and visiting other works or organizations.

So far as group training is concerned in addition to formal courses there are:
• • • • • •

Lectures and talks by senior or specialist managers; Discussion group (conference and meeting) activities; Briefing by senior staffs; Role-playing exercises and simulation of actual conditions; Video and computer teaching activities; Case studies (and discussion) tests, quizzes, panel 'games', group

forums, observation exercises and inspection and reporting techniques.

POSITION AND STRUCTURE OF HUMAN RESOURCE MANAGEMENT

Human resource management department responsibilities can be broadly classified by:1) Individual, 2) Organizational, and 3) Career areas.

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Individual management entails helping employees identify their strengths and weaknesses; correct their shortcomings; and make their best contribution to the enterprise. These duties are carried out through a variety of activities such as performance reviews, training, and testing. Organizational development, meanwhile, focuses on fostering a successful system that maximizes human (and other) resources as part of larger business strategies. This important duty also includes the creation and maintenance of a change program, which allows the organization to respond to evolving outside and internal influences. The third responsibility, career development, entails matching individuals with the most suitable jobs and career paths within the organization. Human resource management functions are ideally positioned near the theoretic center of the organization, with access to all areas of the business. Since the HRM department or manager is charged with managing the productivity and development of workers at all levels Human resource personnel should have access to—and the support of—key decision makers. In addition, the HRM department should be situated in such a way that it is able to effectively communicate with all areas of the company.

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HRM structures vary widely from business to business, shaped by the type, size, and governing philosophies of the organization that they serve. But most organizations organize HRM functions around the clusters of people to be helped—they conduct recruiting, administrative, and other duties in a central location. Different employee development groups for each department are necessary to train and develop employees in specialized areas, such as sales, engineering, marketing, or executive education. In contrast, some HRM departments are completely independent and are organized purely by function. The same training department, for example, serves all divisions of the organization.

In recent years, however, observers have cited a decided trend toward fundamental reassessments of human resources structures and positions. "A cascade of changing business conditions, changing organizational structures, and changing leadership has been forcing human resource departments to alter their perspectives on their role and function almost over-night," "Previously, companies structured themselves on a centralized and compartmentalized basis—head office, marketing, manufacturing, shipping, etc. They now seek to decentralize and to integrate their operations, developing cross-functional teams….

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Today, senior management expects HR to move beyond its traditional, compartmentalized 'bunker' approach to a more integrated, decentralized support function." Given this change in expectations, Johnston noted that:"An increasingly common trend in human resources is to decentralize the HR function and make it accountable to specific line management. This increases the likelihood that HR is viewed and included as an integral part of the business process, similar to its marketing, finance, and operations counterparts. However, HR will retain a centralized functional relationship in areas where specialized expertise is truly required," such as compensation and recruitment responsibilities.

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Human Resources Planning
The objective of human Resources management is to achieve a high level of return on an organization investment in people. For many organization people are the only, or the most expensive, asset upon which the success of the enterprise is dependent. Although most organization realize the important of this asset, some have not put into place the infrastructure components required to manage people in the same manner in which other assets are managed .Financial, capital, and information resources, for example, are managed with careful planning, monitoring, replacement, or upgrading. Often the same cannot be said for how an organization’s Human Resources are managed. In order to manage and nurture Human Resources, planning is required to establish a framework in which this valuable asset will be employed. This includes identification of objectives, values, principles, and practices to guide the organization in its use of people. Within this framework the infrastructure components to give managers the skills and guideline to apply sound management principles and practices are developed. The infrastructure is made up of a broad framework and includes such support mechanisms as organization, performance management processes, rewards and incentives, recruitment standards and human resources development principles. ~28~

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These in turn are supported by subsystems which include specific policies and procedures such as recruitment procedure, compensation policies, performance appraisal, training and development policies, legislative compliance, communication devices, and the like.

BENEFITS OF HUMAN RESOURCES PLANNING:Human Resources Planning (HRP) anticipates not only the required kind and number of employees but also determine the action plan for all the functions of personnel management. The major benefits of human resources planning are:• It checks the corporate plan of the organization. • It offsets uncertainty and changes. But the HRP offsets uncertainties and changes to the maximum extent possible and enables the organization to have right men at the right time and in the right place. • It provides scope for advancement and development of employees through training, development etc. • It helps to anticipate the cost of salary enhancement, better benefits etc.

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• It helps to anticipate the cost of salary, benefits all the cost of human resources, facilitating the formulation of budgets in an organization. • To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organization and the government through remodeling organizational, industrial and economic plan.

• To foresee the changes in value, aptitude and attitude of human resources and to change the techniques of interpersonal management etc. • To plan for physical facilities, working conditions and the volume of fringe benefits like canteen, school, hospitals, conveyance, child care centre, quarters, company stores etc. • It gives an idea of the type of tests to be used and interview techniques in selection based on the lev4el of skills, qualifications, intelligence, values, etc. of future human resources. • It causes he development of various sources of human resources to meet the organizational needs

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• It helps to take steps to improve human resources contributions in the forms of increased productivity, sales, turnover etc. • It facilities the control of all the functions, operations, contribution and cost of human resources.

Factors Affecting HRP:HRP is influenced by several considerations. The more important of them are:  Type and strategy of organization  Organizational growth cycles and planning  Environmental uncertainties,  Time horizons  Type quality of forecasting information  Nature of jobs being filled and  Off-loading the work

Organizatio nal growth cycle Type and strategy of organization

Environmen tal uncertaintie s Outsourcing

Time horizons

HRP
Nature Type and quality of forecasting

of jobs being filled

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THE FOCUS OF HRM:Businesses and organizations rely on three major resources: 1. Physical resources, such as materials and equipment; 2. Financial resources, including cash, credit, and debt; and 3. Human resources or workers. In its broadest sense, HRM refers to the management of all decisions within an organization that are related to people. In practice, however, HRM is a tool used to try to make optimum use of human resources, to foster individual development, and to comply with government mandates.

Larger organizations typically have an HRM department and its primary objective is making company goals compatible with employee goals insofar as possible. Hence, for a company to attain its goals, it must have employees who will help it attain them. Towards this end, R. Wayne Pace, writing in Human Resource Development, identifies seven underlying assumptions that provide a foundation and direction for HRM.

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First is the acknowledgment of individual worth, suggesting that companies recognize and value individual contributions. Second is that employees are resources who can learn new skills and ideas and can be trained to occupy new positions in the organization. Third is that quality of work life is a legitimate concern, and that employees have a right to safe, clean, and pleasant surroundings. A fourth assumption is the need for continuous learning; talents and skills must be continually refined in the long-term interests of the organization. A fifth assumption supporting the existence of an organized HRM within a company or institution is that opportunities are constantly changing and companies need methods to facilitate continual worker adaptation. Sixth is employee satisfaction, which implies that humans have a right to be satisfied by their work and that employers have a responsibility and profit motivation to try to match a worker's skills with his or her job.

The seventh and final assumption is that HRM encompasses a much broader scope than technical training—employees need to know more than the requirements of a specific task in order to make their maximum contribution.

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HRM IMPLEMENTATION ACTIVITIES:To fulfill their basic role and achieve their goals, HRM professionals and departments engage in a variety of activities in order to execute their human resource plans. HRM implementation activities fall into four functional groups, each of which includes related legal responsibilities: maintenance. ACQUISITION:Acquisition duties consist of human resource planning for employees, which includes activities related to analyzing employment needs, determining the necessary skills for positions, identifying job and industry trends, and forecasting future employment levels and skill requirements. These tasks may be accomplished using such tools and techniques as questionnaires, interviews, statistical analysis, building skill inventories, and designing career path charts. Four specific goals of effective human resource planning are:
1. Sustaining stable workforce levels during ups and downs in output,

acquisition,

development,

compensation,

and

which can reduce unnecessary employment costs and liabilities and increase employee morale that would otherwise suffer in the event of lay-offs. 2. Preventing a high turnover rate among younger recruits.

~34
HRM in private sector banks

3. Reducing problems associated with replacing key decision makers in the event of an unexpected absence. 4. Making it possible for financial resource managers to efficiently plan departmental budgets. The acquisition function also encompasses activities related to recruiting workers, such as designing evaluation tests and interview methods. Ideally, the chief goal is to hire the most-qualified candidates without encroaching on federal regulations or allowing decision makers to be influenced by unrelated stereotypes. HRM departments at some companies may choose to administer honesty or personality tests, or to test potential candidates for drug use. Recruitment responsibilities also include ensuring that the people in the organization are honest and adhere to strict government regulations pertaining to discrimination and privacy. To that end, human resource managers establish and document detailed recruiting and hiring procedures that protect applicants and diminish the risk of lawsuits.

DEVELOPMENT:The second major HRM function, human resource development, refers to performance appraisal and training activities. The basic goal of appraisal is to provide feedback to employees concerning their performance. ~35~

HRM in private sector banks

This feedback allows them to evaluate the appropriateness of their behavior in the eyes of their coworkers and managers, correct weaknesses, and improve their contribution. HRM professionals must devise uniform appraisal standards, develop review techniques, train managers to administer the appraisals, and then evaluate and follow up on the effectiveness of performance reviews.

HRM professionals must devise uniform appraisal standards, develop review techniques, train managers to administer the appraisals, and then evaluate and follow up on the effectiveness of performance reviews. They must also tie the appraisal process into compensation and incentive strategies, and work to ensure that federal regulations are observed.

Training and development activities include the determination, design, execution, and analysis of educational programs. Orientation programs, for example, are usually necessary to acclimate new hires to the company. The HRM training and education role may encompass a wide variety of tasks, depending on the type and extent of different programs. In any case, the HRM professional ideally is aware of the fundamentals of learning and motivation, and must carefully design effective training and development programs that benefit the overall organization as well as the individual. Training initiatives may include apprenticeship, internship, job rotation, mentoring, and new skills programs. ~36~

HRM in private sector banks

COMPENSATION:Compensation, the third major HRM function, refers to HRM duties related to paying employees and providing incentives for them. HRM professionals are typically charged with developing wage and salary systems that accomplish specific organizational objectives, such as employee retention, quality, satisfaction, and motivation. Ultimately, their aim is to establish wage and salary levels that maximize the company's investment in relation to its goals. In particular, HRM managers must learn how to create compensation equity within the organization that doesn't hamper morale and that provides sufficient financial motivation. Besides financial compensation and fringe benefits, effective HRM managers also design programs that reward employees by meeting their emotional needs, such as recognition for good work

MAINTENANCE:-

The fourth principal HRM function, maintenance of human resources, encompasses HRM activities related to employee benefits, safety and health, and worker-management relations. Employee benefits are non-incentive-oriented compensation, such as health insurance and free parking, and are often used to transfer no taxed compensation to employees. ~37~

HRM in private sector banks

The three major categories of benefits managed by HRM managers are: employee services, such as purchasing plans, recreational activities, and legal services; vacations, holidays, and other allowed absences; and insurance, retirement, and health benefits.
Human resource maintenance activities related to safety and health usually entail compliance with federal laws that protect employees from hazards in the workplace. Regulations emanate from the federal Occupational Safety and Health Administration, for instance, and from state workers' compensation and federal

Environmental Protection Agency laws. HRM managers must
work to minimize the company's exposure to risk by implementing preventive safety and training programs. They are also typically charged with designing detailed procedures to document and handle injuries.

Maintenance tasks related to worker-management relations primarily entail: working with labor unions, handling grievances related to misconduct such as theft or sexual harassment, and devising systems to foster cooperation. Activities in this arena include contract negotiation, developing policies to accept and handle worker grievances, and administering programs to enhance communication and cooperation.

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HRM DEVELOPMENT AND IMPLEMENTATION RESPONSIBILITIES

While most firms have a human resources or personnel department that develops and implements HRM practices, responsibility lies with both HR professionals and line managers. The interplay between managers and HR professionals leads to effective HRM practices. For example, consider performance appraisals. The success of a firm's performance appraisal system depends on the ability of both parties to do their jobs correctly. HR professionals develop the system, while managers provide the actual performance evaluations. The nature of these roles varies from company to company, depending primarily on the size of the organization. This discussion assumes a large company with a sizable HRM department. However, in smaller companies without large HRM departments, line managers must assume an even larger role in effective HRM practices. HR professionals typically assume the following four areas of responsibility: establishing HRM HRM methods, policies and procedures, HRM developing/choosing monitoring/evaluating

practices and advising/assisting managers on HRM-related matters. HR professionals typically decide (subject to upper-management approval) what procedures to follow when implementing an HRM practice. ~39~

HRM in private sector banks

For example, HR professionals may decide that the selection process should include having all candidates:(1) Complete an application, (2) Take an employment test, and then (3) Be interviewed by an HR professional and line manager. Usually the HR professionals develop or choose specific methods to implement a firm's HRM practices. For instance, in selection the HR professional may construct the application blank, develop a structured interview guide, or choose an employment test. HR professionals also must ensure that the firm's HRM practices are properly implemented. monitoring. For example, HR professionals may evaluate the usefulness of employment tests, the success of training programs, and the cost effectiveness of HRM outcomes such as selection, turnover, and recruiting. They also may monitor records to ensure that performance appraisals have been properly completed. HR professionals also consult with management on an array of HRMrelated topics. They may assist by providing managers with formal training programs on topics like selection and the law, how to conduct an employment interview, how to appraise employee job performance, or how to effectively discipline employees. ~40~ This responsibility involves both evaluating and

HRM in private sector banks

HR professionals also provide assistance by giving line managers advice about specific HRM-related concerns, such as how to deal with problem employee Line managers direct employees' day-to-day tasks. From an HRM perspective, line managers are mainly responsible for implementing HRM practices and providing HR professionals with necessary input for developing effective practices. Managers carry out many procedures and methods devised by HR professionals. For instance, line managers:
• • • • • • •

Interview job applicants Provide orientation, coaching, and on-the-job training Provide and communicate job performance ratings Recommend salary increases Carry out disciplinary procedures Investigate accidents Settle grievance issues

The development of HRM procedures and methods often requires input from line managers. For example, when conducting a job analysis, HR professionals often seek job information from managers and ask managers to review the final written product. Additionally, when HR professionals determine an organization's training needs, managers often suggest what types of training are needed and who, in particular, needs the training. ~41~

HRM in private sector banks

EVALUATION OF HRM METHODS One of the most critical aspects of HRM is evaluating HRM methods and measuring their results. Even the most carefully planned and executed HRM programs are meaningless without some way to judge their effectiveness and confirm their credibility. The evaluation of HRM methods and programs should include both internal and external assessments. Internal evaluations focus on the costs versus the benefits of HRM methods, whereas external evaluations focus on the overall benefits of HRM methods in achieving company goals. Larger human resource departments often use detailed, advanced data gathering and statistical analysis techniques to test the success of their initiatives. The results can then be used to adjust HRM programs or even to make organizational changes. The authors of Human Resources Management posit four factors, the "four Cs," that should be used to determine whether or not an HRM department or individual program is succeeding: commitment, competence, cost-effectiveness, and congruence. In testing commitment, the HRM manager asks to what extent do policies enhance the commitment of people to the organization? Commitment is necessary to cultivate loyalty, improve performance, and optimize cooperation among individuals and groups.

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Competence refers to the extent to which HRM policies attract, keep, and develop employees: Do HRM policies result in the right skills needed by the organization being available at the proper time and in the necessary quantity? Likewise, cost-effectiveness, the third factor, measures the Fiscal proficiency of given policies in terms of wages, benefits, absenteeism, turnover, and labor/management disputes. Finally, analysis of congruence helps to determine how HRM policies create and maintain cooperation between different groups within and outside the organization, including different departments, employees and their families, and managers and subordinates. In addition to advanced data gathering and analysis techniques, several simple observations can be made that provide insight into the general effectiveness of a company's human resources. For example, the ratio of managerial costs to worker costs indicates the efficiency of an organization's labor force. In general, lower managerial costs indicate a more empowered and effective workforce. Revenues and costs per employee, when compared to related industry norms, can provide insight into HRM effectiveness. Furthermore, the average speed at which job vacancies are filled is an indicator of whether or not the organization has acquired the necessary talents and competencies. Other measures of HRM success include employee complaint and customer satisfaction statistics, health insurance and workers' compensation claims, and independent quality ratings.

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In addition, the number of significant innovations made each year, such as manufacturing or product breakthroughs, suggest HRM's success at fostering an environment that rewards new ideas and is amenable to change. Besides evaluating these internal aspects of HRM programs, companies also must assess the effectiveness of HRM programs by their impact on overall business success. In other words, companies must link their

Evaluation of HRM methods with company performance to determine whether these methods are helping their business by increasing quality, reducing costs, expanding market share, and so forth. Ultimately, companies must make sure that they have the right amount of properly skilled employees performing tasks necessary for the attainment of company goals and that greater revenue and profits result from HRM efforts to increase the workforce and improve worker training and motivation.

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Human Resource Management (HRM) in private sector banks

INDEX
Sr.no. 1 2 3 Introduction Meaning of HRM in Banks Need For HRM and Its Particular Page no. 45-46 46 47

Management in banks 4 Building up efficiency in Banks with the help of HRM The Changing Banking Environment 5 6 and Role of HRM Employee Turnover and 50-52 53-55 48-50

Implementation of "Exit Policy"

7

Human Resource Risk

56

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Introduction

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

Thus, human resource management refers to a set of programmes, functions and activities designed and carried out to maximize both, employee as well as Organizational effectiveness.

It is concerned with the people dimensions in the management. Since every organization is made up of people, acquiring their services developing their skills motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of organization -government, business, education, health, recreation or social actions. Human resource is one of the natural resources of any country's economy. It is the wealth of the country. In the context of banking, human resource is of greater importance. The deployment of human resource through proper and efficient selection, training and development, is called

~45~

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Human Resource Management. The success of any bank or organization largely depends on efficient human resource management, apart from operations, marketing and sales, the HR department manages all the efficient people working in operations and marketing divisions in any organization. Thus, HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employees as well as organizational effectiveness.

Meaning of “Human Resources Management” in Banks
Human resource is one of the natural resources of any country's economy. It is the wealth of the country. In the context of banking, human resource is of greater importance. The deployment of human resource through proper and efficient selection, training and development, is called Human Resource Management. The success of any bank largely depends on efficient human resource management, apart from operations, marketing and sales, the HR department manages all the efficient people working in operations and marketing divisions in any organization. ~46~

HRM in private sector banks

Need For HRD and Its Management in banks
 There is a qualitative change in the banking paradigm on account of changes in the industry due to the entry of new private sector Banks. Therefore, it has become a necessity to recruit, train and deploy people at all level efficiently, for better performance and success. This is the basic function of HRD, which includes the concept of HRM.
 A view of the changes in the political scene in the recent past,

seeping changes is expected to take place in the banking industry. It is expected that only a few banks will remain after a series of amalgamations and mergers, not only in the Indian banking industry, but also at the international level.  Emergence of new private sector banks, disintermediation and competition and self-regulation in monitoring banking has necessitated efficient Human Resources Management in banks.
 HRM is a continuous process, involving selection, recruitment and

training on an "on going basis" for the staff and their deployment in the right place. The activity is called HR development.

~47~

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Building up efficiency in Banks with the help of HRM

 The crucial factors behind successful banking will be continuous

and sustained build up of skills, knowledge, education and attitudes among people working in the banks, particularly the frontline staff, working in the branches.
 It is possible through professionalization, which is an internal part

of HRM. Bank staff should be motivated and encouraged to practice professionalism for their personal growth and thus contribute to the organization's growth.
 Building efficiency in banking is, therefore largely dependent on

the best selection process adopted by the HR department. There is imperative need to build up skills within an organization for the successful managing of available HR.
 Banks have vast human resource specialized in multiple disciplines

like technology, law, operations, foreign exchange, administration etc. the basic function of HR is to manage them efficiently for continuous follow the bellow two functions:success. For building up better efficiency in banks HRM in banks have to

~48~
HRM in private sector banks

1) Emphasis on job description and job Assignment.

2) Response to challenges in future.

1. EMPHASIS ON JOB DESCRIPTION AND JOB ASSIGNMENT One of the important functions of HR department is to ensure proper definition for workers in the bank. The staff should know about the vacant positions and the skills required for those particular jobs. Accordingly, people should be recruited to that particular job. The allotment of a job to a right person, who has the required skills is called job assignment. If this function is not properly performed by the HR department, people in all departments will be in a chaotic situation. This will impair their performance and subsequently customer service. Improvement in performance and skills of existing employees can be achieved through recruiting the right person for the right place. Thus, job description and job assignment are parallel concept requiring attention. 2. RESPONSE TO THE CHALLENGES IN FUTURE. Bankers should chalk out a wide range of strategic responses to the future challenges. They have to look into the structure, procedures and processes of the systems and make policies accordingly, to ensure necessary changes. It is the foremost function of HRM. ~49~
HRM in private sector banks

Banks have to convince their employees that that a challenge is an opportunity to prove oneself. Bankers in India have to utilize this opportunity before the competition overtakes them and people in banks have to respond immediately to the challenges. This requires the HR department to work efficiently. Banks are in the service industry, where the raw material is HR. HRM, therefore, emerges as a very basic and important element for strategic response to the changes that are taking place in the banking sector. HR departments should take it seriously to formulate policies to meet this challenge. HRD is a critical management function. Each manager should have initiative, awareness, co-ordination and facilitation to perform his role. This is critical function of HRM.

The Changing Banking Environment and Role of HRM
Owing to the changing banking environment HR department should call for appropriate response in equipping people who have to perform in the new environment. People should be prepared to 'accept changes. The upgraded technology in banks might create fear among the staff regarding their adaptability to the new environment. It is the responsibility of the HR department to properly counsel people and prepare them to face the challenges before them. Their mind should be fine - tuned to work in the new technological environment. ~50~
HRM in private sector banks

The main function of HRM is to build up capabilities in people working in banks and intensify their sense of belonging to the organization. To improve their performance and increase the bank's productivity HR must incorporate challenges in routine work. Team spirit has to be inculcated in the branches and greater focus should be on customer care. This would be possible only through the unprecedented efforts to be put forth by the HR department.

Rewards, Remuneration, Incentives and Punishments
HR department should make efforts to provide appropriate incentives, rewards and increase remuneration to employees. Otherwise, dissatisfaction may creep into all levels of the bank, resulting in" inefficiency, perfunctory attitude, and poor service standards. These will ultimately affect the functioning of the organization. Therefore, the HR department has to formulate policies with utmost care taking into account all these facets of personnel banking. Radical changes are required in the performance appraisal system to avoid nepotism. HR policies with regard to manpower and career planning, and placement policies have to he revamped. A level of professionalism with the help of technology and scientific management has to be brought in by the HR departments of banks. Clear policies regarding performance rewards, incentives and increase in remuneration have to be outlined and implemented.

~51~
HRM in private sector banks

With regard to the accountability for non-performance and for the mistakes, the HR department's intervention is a must for establishing the facts of each case. Proper judgment "with impartial attitude helps develop satisfaction among the staff members.Before punishing for mistakes and non-performance, a certain kind of enquiry is required by the HR department. In the present scenario, particularly in the new private sector banks, dismissals are taking place arbitrarily without proper enquiry for accountability. This will impart the efficiency of the existing staff and lower dynamism in their performance, ultimately leading to reduced productivity due to fear and insecurity of losing the job. It is the first and foremost duty of the HR department to formulate appropriate policies with regards to punishments. A set of guidelines and procedures has to be formulated and followed for punishments to staff in case of any indiscipline. There are certain inevitable situations in working where the staff needs to experiment in order to take decisions. In the process mistakes are bound to occur. Committing mistake is a way of learning. These are not to be treated as sin by the management. Otherwise, the decision making process will be vitiated. HRM will play a significant role in handling situations while awarding punishments to employees without impairing others’ efficiency.

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HRM in private sector banks

Employee Turnover and Implementation of "Exit Policy"
 I n the present scenario, the employee turnover has increased in the

banking industry, specifically in the new private sector banks.
 The main reason behind the trend is the recruitment of young

people without experience.
 They will be moving to other jobs after gaining experience, for

higher salaries.  This usually has a bad effect on the work atmosphere of the organization.

 The new private sector banks have become a training ground for

the new and fresh recruits.
 It is the responsibility of the HR department to arrest this trend of

employee turnover. The HR department should formulate suitable policies to retain the staff by providing 'incentives, rewards, and better increments every year. These policies will ensure organizational efficiency. ~53~
HRM in private sector banks

 The employee turnover may increase on account of

o Lacunae in the appraisal systems, o Non-recognition of talent, o Discouragement for the staff, o Lack of motivation, o Lack of promotions to higher cadre in the organization etc. HR and personnel departments of banks should realize the importance of all these aspects and help the organization in formulating correct policies. In this process, the HR departments of all banks should realize the importance of recruiting experienced people in higher positions to ensure utmost efficiency. It will increase the productivity and profitability of the organization.

~54~
HRM in private sector banks

Performance Appraisal Systems
 It is one of the important functions of the HR department is to formulate proper policies with regard to performance appraisal in banks to avoid discrimination in ranking the personnel for further promotions.  To manage people, it is very important to fudge the abilities correctly to recognize them. Self-appraisal system is prevalent for officer cadre personnel in public sector banks.  In die new private sector banks, if is available to the entire staff including award staff but it is compulsory, tiring system by which a section of the employees will he ranked under the lowest category that is, it requires improvement on a specific percentage basis.  This is a discouraging exercise and at times even a performer will be ranked the lowest.  This will have an adverse impact on die organization.
 HRM should give a serious thought to this aspect.

~55~

HRM in private sector banks

Human Resource Risk
The banking HR risk is another important aspect to be managed by the HR and Planning department. In certain situations the departure of an employee with specialized skills and knowledge due to resignation, retirement or removal may bring certain systems to a halt and may even create chaos. This is called HR risk. In this process, the-bank may have to pay multiple individuals with similar knowledge and experience to ensure protection against this risk. Similarly, the bank may have to face the risk of loss of key personnel, which is called the risk of inadequate motivation among staff who manage the situation. If the management offers inadequate incentives or doesn't, give any incentive at all, or wrong incentives, it may lead to disastrous financial results, provided the incentives are linked to individual performance. In such a case, the personnel will not co-operate in combating the risky situation. In case a group incentive is given, individual motivation will be affected. ~56~

Case study on ICICI Bank INDEX
Sr.no. 01 02 03 04 Particular Introduction of ICICI bank History of ICICI bank Awards & recognitions Questionnaire Page no. 57-58 59-61 62-63 64-67

HRM in private sector banks

Introduction of ICICI bank
ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank by market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 77 billion (at the end of December 2008). The Bank also has a network of 1,449 branches and about 4,721 ATMs in India and presence in 18 countries, as well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ~57~ I
HRM in private sector banks

CICI Bank is also the largest issuer of credit cards in India.

[1]

. ICICI

Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the HiSAVE savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's current and savings account (CASA) ratio increased to 30% in 2008 from 25% in 2007.

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History of ICICI

1955 The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses.

1994 ICICI established Banking Corporation as a banking subsidiary. Formerly Industrial Credit and Investment Corporation of India. Later, ICICI Banking Corporation was renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit cards, car loans etc.

2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s.

2002 The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, into ICICI Bank. ~59~
HRM in private sector banks

After receiving all necessary regulatory approvals,

CICI integrated the group's financing and banking operations, both wholesale and retail, into a single entity.

Also in 2002, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank. ICICI started its international expansion by opening representative offices in New York and London.

2003 ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai.

2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that country, India and South Africa.

~60~
HRM in private sector banks

2005 ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International Financial Centre and in Hong Kong.

2006 ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened representative offices in Bangkok, Jakarta, and Kuala Lumpur.

2007 ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State, and which had 158 branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in 1916 and was particularly strong in rural areas. ICICI also received permission from the government of Qatar to open a branch in Doha. ICICI Bank Eurasia opened a second branch, this time in St. Petersburg.

2008 The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch.

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HRM in private sector banks

Awards and recognitions for HRM
2008 Indira group of institute, pune presented indira excellence awards for creating opportunities for youth innovatively. Mr.K.V.Kamath, MD&CEO, ICICI Bank wins “the Asian banker leadership achievement awards” for the Asia pacific and gulf region 2007.

2007 India time’s mindscape presented employer branding award 2007, 13th Jan, 2007: taj land ends, Mumbai awards for talent management ICICI Bank Ltd.hosted by: - the savile row company, London. Bharti vidyapeeth’s and India time’s mindscape- gateway to knowledge capital presented recruiting and staffing best in class award 1st Feb, 2007. Taj land ends, Mumbai. Mr.k.ramkumar- group chief HR

Officer, ICICI Bank.

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2004 Best HR practices award- centre of international business amity business school. International HR summit 2004.

2003 World HRD congress: innovative HR practices award in banking ICICI Bank Ltd Jan, 30th,31st-feb1st,2nd,2003 India. 2002 Ranked third ‘best employer’ in a campus track study amongst the student of the best business school in India conducted by ORGMARG. 2000 Best CEO for innovative HR practices to Mr. Kamath by world HRD congress.National HRD award- outstanding company award 19th Aug, 2000 for innovative HR practices.

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QUESTIONNAIRE

(1) What are the functions of HR department in banks? Ans: - a) determining human resources need b) Attracting qualified employees c) Developing qualified employees d) Keeping qualified employees

(2) What is the HR planning in banks? Ans: - planning is significant as it helps you determine future personnel needs. And it is also a part of strategic planning and also creates highly talented personnel.

(3) What is the recruitment procedure in ICICI bank? Ans:- In our continuous endeavor to improve the selection process for recruitment at all levels in ICICI Bank, we have carried out an in-depth study of the competencies required to succeed in ICICI Bank which are called the ICICI Bank DNA anchors. As per our research, the DNA anchors which indicated success at the entry level in ICICI Bank are:
• •

Customer first Passion ~64~
HRM in private sector banks

• •

Dynamism Compliance with conscience

In order to assess the same we use a set of tools a. Aptitude Tests (for applicants with 0-2 years of work experience). The tests are designed to assess basic aptitude of candidates including numerical comprehension, verbal comprehension, logical reasoning and basic checking abilities. These are important skills for the role of an entry-level manager and people who do well in these tests tend to do well in their jobs at ICICI Bank. The total time taken in this exercise is 55 minutes.

B.Occupational Personality Questionnaire. Applicants are also required to complete the Occupational Personality Questionnaire (OPQ) before they appear for the selection, the results of which are integrated into our selection process.

(4) How you motivate your employees? Ans: - we provide flexible working hours to women employees and different facilities to them which are as follows:Fitness center:State of the art on site fitness center. It helps to refresh the mind of the employees and also provides space from stress of work. ~65~
HRM in private sector banks

Health services:The company provides a comprehensive medical plan with an on site doctor and dietician. Club membership, Discount offers/schemes, Holiday homes, Scholarship scheme, Etc… (5) Is there any training conducted by you for better efficiency of employees? Ans: - ICICI bank has training centers at khandala in the state of Maharashtra which conduct various training programs designed to meet the changing skill requirements of its employees. (6) Is it necessary to conduct the training program? Ans: - yes it is very necessary to conduct the training program to employees to develop their skills but also focus on the following:a) Improve the employees performance in their jobs, thus improve the performance of the bank. b) Allow employees you achieve professional and further educational qualifications. c) Allows employees to achieve promotion and allow a chosen career, thus leading a job satisfaction. ~66~
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(7) What is the nature of workforce? Ans: - a) cultural diversity and need for unification b) Increased in professionalisation c) Increased formal education d) Increased level of soft skill e) Positive attitude (8) What welfare and recreation facilities given by you to your employees? Ans: - welfare and recreation facilities includes:Canteens, consumer societies, credit societies, housing, legal aid, employee counseling, welfare organization, holiday homes, etc.

(9) What are your retention strategies?

Ans: - our retention strategy includes:a) identification of potential talented staff b) alternative stock options c) quicker promotion It has unable us to achieve higher retention rate

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Analysis of Survey
After visiting the bank and after getting the answer of my question from the manager I analyzed that: The financial services industry in India is undergoing unprecedented changes as deregulation gains momentum. Moreover, changing customer needs and rapid advances in technology are continually redefining the lines of innovation and competition. To meet these challenges the bank has to relied extensively on Human Capital. Their main intention is to adopt new innovation technology and to retain the customer my providing various services.Their employees are also so talented; manager provides them training and development programs before joining the banks as well as their performance management are strong enough. The last but not the least one their selection process is one of the best process, they not only look after the past qualification but at the same time they check the candidate  mental ability  personality profiling system work experience) are also required to complete the occupational personality questionnaire. Therefore, the ICICI bank is one of the leading private sector banks. ~68~
HRM in private sector banks

 Candidate (at all level regardless of the number of years of

CONCLUSION
The core function of HRD in the banking industry is to facilitate performance improvement, measured not only in terms of financial indicators of operational efficiency but also in terms of the quality of financial services provided. Factors like skills, attitude and knowledge of the human capital play a crucial role in determine the competitiveness of the financial sector. Capital and technology are replicable but not the human capital which needs to be valued as a highly valuable resource for achieving that competitive edge. HRM strategies include managing change, creating commitment, achieving flexibility and improving teamwork. The other processes representing the over aspects of HRM. i.e. recruitment, placement, performance management are complementary.

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Book Referred:-

Authors name K.Aswathappa

Books name Human resource & Personnel management Human Resource Management Human Resource Management in Banking & Insurance

Publication Tata McGraw-Hill

P. Subba rao Vinay v. Prabhu

Himalaya Vipul Prakashan

Websites:-

A) www.hr.com B) www.icicibank.com C) www.management.co.in D) www.thehindubusinessline.com

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