International Journal of Business Administration and Management.

ISSN 2278-3660 Volume 7, Number 1 (2017),

© Research India Publications http://www.ripublication.com

Impact of Training and Development with Reference to

Banking Sector in India

Jyoti
Ph.D Scholar (Management)
(2014-2017)
K alinga University, Raipu r, C.G.
En r ol l me n t No. 1 5 0 8 6 4 1 8 ( K U0 0 2M MX I V0 2 0 10 5 9 6)

Abstract
The rapidly changing business environment in banking sect or and t he
const ant challenges it poses t o organizat ions and businesses make it
imperat ive t o cont inuously enhance and improve knowledge and sk ill set s
across t he organizat io n. Banks are facing sever al cr it ical pr essures,
inc luding a short supp ly o f leader s, t he need t o develo p and engage
emplo yees, and issues wit h t urno ver. One o f t he biggest challenge being
faced by professio nals in human resource management t oday is t he
development o f an effect ive HR st rat egy t hat aligns wit h and support s you r
organizat io n‟s short - and lo ng-t er m business goals. But even as hig h
unemplo yment persist s, emplo yers are st ill facing a short age of candidat es
wit h t he r ight skills and exper ience to fill cr it ical jo bs. This paper
discusses t he impact o f t raining and De velopment on t he E mplo yees o f
Banking S ect or.

1. Introduction

The rapidly changing business environment in banking sect or and t he

const ant challenges it poses t o organizat ions and businesses make it
imperat ive t o cont inuously enhance and improve knowledge and sk ill set s
across t he organizat io n.

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 International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

The Bank has built st rong capabilit ies in t raining and development t o build
co mpet encies across var ious sect ors. Training o n product s and operat io ns is
impart ed t hrough int er net -based t raining modules. Specia l progra mmes on
funct io nal t raining and leadership development are co nduct ed t o build
knowledge as well as management abilit y at a dedicat ed t raining facilit y.

As per t he report of Mrs. B.VIJAYALAKSHMI MURTHY(2013 -2015) 1

Previous research has shown t hat Human Reso urce Management is one o f
t he mo st import ant det er minant s of organizat ional per for mance or
efficiency. According t o (St ephen A. Stumpf, Ma y- June 2010) co mpanies
funct io ning in I ndia cr eat e a robust huma n resource t eam by incorporat ing
a st rong organized HR pract ice in place.

It is also found t hat on cert ain par amet ers such as t he co mpensat ion and
t raining and develop ment , t he pr ivat e sect or seemed t o have adopt ed a
pract ical approach such as screening and t est ing o f jo b applicant s t o
ascert ain t he applicant ‟s jo b- fit ness, t raining need analys is, t raining
evaluat io n, et c. These aut hors are also of t he opinio n t hat Indian co mpanie s
whet her big or small imple ment HRM pract ices such as emplo yee
invo lvement pract ices, t raining and development pract ices, emp lo yee
welfare pract ices, managing emplo yee relat ions to manage emplo yees.
(St ephen A. St umpf, May-June 2010).

2 Objectives and Research Methodology

Objectives of study:

1. To assess t he ro le o f HRM in Bank ing Indust r y.

2. To analyze t he I mpact of Training and Developm ent (T&D) for
emplo yees ser ving in banks.

1
Mrs. B.Vijayalakshmi Murthy (2013-2015), “Innovative HR Practices in IT Industry In India -An
Empirical Study”, Minor UGC Sponsored Research Project.

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 International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

Research Methodology

It is always import ant t o be cr it ical o f t he infor mat io n present ed in sources,

especially since t he mat er ial might have been gat hered t o address a
different problem area. Moreover, many seco nda r y sources do not clear ly
descr ibe issues such as t he purpose o f a st udy, how t he dat a has bee n
gat hered, analysed and int erpret ed making it difficult for t he researcher t o
assess t heir usefulness. In order t o address t his problem I have t r ied t o
t riangulat e t he secondar y dat a by using numerous independent sources.

The infor mat io n about t he problem is collect ed fro m t he Researc h

Journals, Trade Magazines, Annual Report s of Banks and t he I nt ernet . For
evaluat ing „T he I mpact of T &D in Banking I ndust r y‟ , I ha ve focused on as
recent mat er ia l as possible. In order to get access to t he lat est
development s in t his area I have used a number o f art icles published in
academic jour nals and t rade magazines. We have also used secondar y
infor mat io n fro m I nt ernet based di scussio n forums.

3. Role of HRM in Banking Organisation

Human Resources (HR) can inc lude a broad spect rum of specialt ies wit hi n
organizat io ns. So me examp les o f specialt ies inc lude recruit ing, pa yro ll,
polic y, safet y, t raining and development , and per for man ce management . In
smaller organizat ions, t he HR pro fessio nal ma y handle all o f t hose
spec ialt ies and in larger organizat ions, each specialt y is mo st likely it s own
depart ment .

Many banks in I nd ia were t r ying t o hire t he professio nals wit h higher

packages even when t he GDP o f count r y was quit e high as t he y were not
able t o find t he ready available t alent . Few banks have t aken st eps t o build
t he t alent and one amo ng t hem is ICI CI Bank. T hey have t ried t o build t he
available resources on supply side t o billa b le resources on demand side.

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

Our count r y is mainly do minat ed by medical and engineer ing co lleges

where bank indust r y finds it difficult t o locat e specific inst it ut es who
produce only poo l o f t alent s for banks. This made t he banking indust r y t o
look beyo nd t op cit ies for t alent and mo ved to small t own and rural I ndia
t hat need t o be polished on social and corporat e skills.

The ro les wit hin HR can var y great ly as well as wit h many depart ment s
fro m t he pur ely administ rat ive t o t he execut ive. Anot her relat ed a nd
perhaps more import ant quest ion t hat is oft en discussed is, “what should
HR be do ing?” For me, HR‟s pr imar y purpose is t o ensure t hat t he r ight
people are working in t he r ight places to acco mplish t he organizat io n‟s
goal.

In ot her words, HR is r espo nsi ble t o develop programs t hat will at t ract,
select , develop, and ret ain t he t alent needed t o meet t he organizat iona l
missio n. So whet her you ar e an HR depar t ment o f one or a co mbinat io n o f
mult ip le depart ment s t hat include hundr eds o f emplo yees, your pr imar y
responsibilit y is t alent management .

In an art icle wr it t en by Fast Company Magazine‟s Keit h Hammo nds, Keit h

purport s all t he reaso ns “Why We Hat e HR.” I f t he t it le it self isn‟t enough
to put a HR pro fessio nal o n t he defense, t hen provid ing t he declarat i on t hat
“HR people aren‟t t he sharpest t acks in t he bo x” as t he fir st reaso n
cert ainly will. H is assert io n in t he art icle is t hat t hose who ent er t he HR
field are not business people and are ill - equipped t o underst and business.
He quot es a Societ y for Huma n Resource Management (SHRM) st udy t hat
ident ified which coursework HR pro fessio nals found mo st benefic ial t o
t heir success in t he field t o support his message t hat t he major it y o f t hose
working in t he fie ld do not see under st anding business as necessar y t o t heir
success. T he result s showed t hat coursework in co mmunicat io ns, business
law, and et hics were mo st beneficial.

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

A recent ly released SHRM sur vey o f HR leader s indicat es t he same finding.

The respondent s in t he U.S. indicat ed t hat st rat egic t hinking is o ne o f t he
top five co mpet encies needed for senio r HR leaders; however, business
knowledge was not list ed. While t he lineage o f t he fie ld o f HR coupled
wit h t he int roduct ion o f legislat io n t o prot ect emplo yer s ma y have
cont r ibut ed to st ereot ypes t hat exis t in t he field about t he HR professio n,
our failur e as HR pro fess io nals t o recognize t hat we are business people
charged wit h t he co mpany‟s mo st valuable asset s will cert ainly cont inue t o
harbor t hose st ereot ypes we so emot io nally defend. I f you want a sea t at
t he t able, lear n t he business o f business and speak t he language o f t he
execut ive t eam.

4. Impact of Training and Development in Banking Sector

The major impact s of effect ive t raining and development in t he banking

sect or ma y be given as belo w:

i. Motivating the workforce

Due t o t he growt h of t he glo bal market , a t echno logical edge support ed by

a t alent pool has beco me a vit al fact or for surviva l in t he market . Due to
t he reaso n organizat ion gives main pr iorit y t o t echno logy advancement
programs. HR ma nager s are now per for ming t he ro le o f mot ivat ors for t heir
knowledge workers to adopt new changes (Chiams ir i, S., Bulusu, S. D. &
Agarwal, M. (2005)).

ii. Managing people

Due t o t he increasing co mpet it io n t here is a need in t he organizat io n for

knowledge workers, hence t he co mpanies always look for individual who
can make a differ ence. Due t o t he reason gaining t he r ight knowledgeable
person had beco me a cost ly deal for t he organizat ions but t he at t it ude is
different for t hose who are t aking up responsibili t ies at a lesser age and

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

exper ience. T hese fact ors have result ed in t he clear shift in approach t o
individualized career management fro m organizat io n career co mmit ment
(Chiams ir i, S., Bulusu, S. D. & Agarwal, M. (2005)).

iii. Competen cy Develop ment

Human cap it al is t he real asset for any organizat io n, and t his makes t he HR
role import ant in recruit ing, managing, and ret aining t he best . The HR
depart ment has a clear ro le in t his process and det er mines t he success
t empo of any organizat io n. An urgent pr ior it y for most of t he organizat ions
is t o have an inno vat ive and co mpet ent HR pool; sound in HR management
pract ices wit h st rong business knowledge (Chiams ir i, S., Bulusu, S. D. &
Agarwal, M. (2005)).

iv. Developing Trust factor

Low levels o f t rust inhibit t acit knowledge shar ing in t he knowledge based
indust r y. It is essent ial t hat co mpanies t akes more init iat ives t o improve
t he secur it y levels o f t he emplo yees ( Chiams ir i, S., Bulusu, S. D. &
Agarwal, M. (2005)).

v. Work li fe Balance Factor

This aspect creat es wit h it t he challenge of a smoot her assimilat io n and t he

cult ural binding o f t he new co mers int o the organizat io n fo ld. T he pressur e
of deliver ing t he best o f qualit y ser vices in a r educed t ime frame calls for
ensur ing t hat emplo yees maint ain a work life b alance ( Chiams ir i, S.,
Bulusu, S. D. & Agarwal, M. (2005)).

vi. Attrition/Retention of the Talent Pool

One o f t he t oughest challenges for t he HR manager s in any indust r y is t o

deal wit h t he prevalent high at t rit ion levels. T hough t here is an adequat e
supply o f qualified st aff at ent r y level, t here are huge gaps in t he middle

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 International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

and senior level manage ment in t he indust r y. Furt her, t he salar y growt h
plan for each emplo yee is not well defined. This s it uat io n has result ed in
incr eased levels o f poaching and at t rit io n bet ween organizat ions. The
indust r y average at t rit io n rat e is 30 -35 per cent and could range up to 60
per cent (Chia msir i, S., Bulusu, S. D. & Agarwal, M. (2005)).

Bridging the Demand Supp ly Gap

HR manager s have t o br idge t he gap bet ween t he demand an d supply o f

professio nals. Wit h help o f T &D t hey ma int ain co nsist ency in per for mance
and keep t he mot ivat io n levels o f emplo yees high, despit e t he mo notonous
nat ure of work. The same also leads to recurring t raining cost s.
Inco nsist ent per for mance dir ect ly affect s revenues. Dwindling mot ivat io n
levels lead t o a loss o f int erest in t he job and a higher number o f errors
(Chiams ir i, S., Bulusu, S. D. & Agarwal, M. (2005)).

5. Conclusion

There is enough evidence t o show t hat emplo yees who wer e t rained on a
regu lar basis are t he ones who provide a higher qualit y ser vices t o t he
cust omers. To deve lop an int egrat ed and proact ive t raining and
development st rat egy t here is r equireme nt o f co herent corporat e cult ure
rat her t han ad- hoc programs. In a ser vice or ient ed in dust r y such as
banking, people are amo ng t he mo st import ant asset s and a bank must
efficient ly manage it s emplo yees dur ing ever y phase o f emplo yment in t his
co mpet it ive arena. It is concluded t hat public sect or banks undert ake
t raining and develo pment prog rammes for t heir emp lo yees t o increase t heir
efficiency. Banks provide t raining programmes t o enhance t heir knowledge
and skills t o sat isfy t he cust omer s. Growth o f banking sect or in I ndia is t he
result o f skilled manpower which is t he out come o f t raining and
development .

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

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