46 Lakshmi

A STUDY ON HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEE
SATISFACTION TOWARDS PRIVATE SECTOR BANKS
PROJECT REPORT SUBMITTED TO THE
UNIVERSITY OF MADRAS
in partial fulfillment of the requirements for the award of degree of
BACHELOR OF COMMERCE IN BANK MANAGEMENT
By
M. LAKSHMI
Register No: 12/S303046
Under the guidance and supervision of
Mrs.A.J.Jemima Malathy, M.C.S, M.PHIL.
DEPARTMENT OF BANK MANAGEMENT
ETHIRAJ COLLEGE FOR WOMEN (AUTONOMOUS)
(SELF-SUPPORTING)
CHENNAI – 600 008
MARCH 2015
ETHIRAJ COLLEGE FOR WOMEN (AUTONOMOUS)
(SELF-SUPPORTING)
DEPARTMENT OF BANK MANAGEMENT
ETHIRAJ SALAI
CHENNAI 600 008
CERTIFICATE
I certify that the project entitled ‘‘A STUDY ON HUMAN RESOURCE

MANAGEMENT PRACTICES AND EMPLOYEE SATISFACTION TOWARDS
PRIVATE SECTOR BANKS ’’, submitted for the degree of Bachelor of
Commerce in Bank Management by M.LAKSHMI, is the record of research work
carried out by her during the period NOVEMBER-MARCH 2015 under my
guidance and supervision, and that this work has not formed the basis for the award
of any degree.
(SIGNATURE OF CANDIDATE)
MRS.A.J.JEMIMA MALATHY, M.C.S.,M.PHIL. DR.MRS.T.USHA PRIYA M.COM,M.phil.,Ph.D

ASSISTANT PROFESSOR HEAD OF THE DEPARTMENT
STATION: CHENNAI
DATE:06/03/2015
BANK TRAINING LETTER (XEROX)
ACKNOWLEDGEMENT
I express my gratitude tour principal Mrs.A.Nirmala, for providing me an opportunity to

undergo my project. And also for those who have guided and inspired me in completing this
study. I would like to express my deep sense of gratitude to our mentor Mrs.A.J.Jemima
Malathy, for giving me support and helping me during my project study. I would like to express
my gratitude to my Head of the Department, Dr.Mrs.T.Usha Priya, for her constant
encouragement and guidance without the task would not have been completed. Last but not least
I would like to thank my parents & friends for their support.
SIGNATURE OF THE CANDIDATE

DECLARATION
I declare that the project entitled “A Study On Human Resource Management and
Employee Satisfaction towards private sector Banks” Submitted by me for the
Degree Of Bachelor Of Commerce In Bank Management is the record of research
work carried out by me during the period of November-March 2015 under the
guidance Of Mrs.A.J.Jemima Malathy and has not formed the basis for the award
of any Degree.
PLACE: CHENNAI
DATE: 06/03/15 SIGNATURE OF THE CANDIDATE

CONTENTS
Chapter Title Page No

No
CERTIFICATE
ACKNOWLEDGEMENT
DECLARATION
LIST OF TABLES
LIST OF FIGURES
I INTRODUCTION 1
II REVIEW OF LITERATURE 21
III ANALYSIS AND INTERPRETATION 26
IV CONCLUSION 42
BIBLIOGRAPHY
ANNEXURE
LIST OF TABLES
Table Title Page
No. No
3.1 Table showing socio-personal traits 26
3.2 Recruitment and Selection Analysis 30
3.3 Compensation Package Analysis 31
3.4 Job Security Analysis 32
3.5 Carrer Growth Analysis 33
3.6 Training and Development Analysis 34
3.7 Management Style Analysis 35
3.8 Job Design and Responsibilities Analysis 36
3.9 Reward and Motivation Analysis 37
3.10 Working Environment Analysis 38
3.11 Co-workers Analysis 39
3.12 Important Decision Analysis 40
3.13 Information Analysis 41
LIST OF FIGURES
Figure Title Page
No. No
3.1 Age Analysis and Interpretation 27
3.2 Gender Analysis and Interpretation 28
3.3 Educational Status Analysis and Interpretation 29
3.4 Recruitment & Selection Analysis and Interpretation 30
3.5 Compensation Package Analysis and Interpretation 31
3.6 Job Security Analysis and Interpretation 32
3.7 Career Growth Analysis and Interpretation 33
3.8 Training & Development Analysis and Interpretation 34
3.9 Management Style Analysis and Interpretation 35
3.10 Job Design & Responsibilities Analysis &Interpretation 36
3.11 Reward and Motivation Analysis and Interpretation 37
3.12 Working Environment Analysis and Interpretation 38
3.13 Co-workers Analysis and Interpretation 39
3.14 Important Decision Analysis and Interpretation 40
3.15 Information Analysis and Interpretation 41

CHAPTER I
INTRODUCTION
INTRODUCTION
In current era of highly volatile business environment organizations are facing emerging
challenges in form of acquisition and optimization of human resource. Being valuable and scarce
capabilities, human resources are considered as a source of sustainable competitive advantage.
The success of an organization depends upon several factors but the most crucial factor that
affects the organization performance is its employee. Human resources play an integral role in
achieving an innovative and high-quality product/ service. If the employees of an organization
are satisfied with their jobs, the organization can achieve its goals very straightforwardly. In any
organization HRM practices focuses on optimal utilization and management of their human
resource effectively in order to achieve maximum output. Managing people is concerned with
deciding approaches and strategies to find alternatives of how to achieve organization goals.
Dramatic advances of Information and Communication Technology (ICT), changing mix and
Personal values of the workforce, emergence of the knowledge economy and increasing global
competition have created enormous challenges on organizations. To cope with the challenges
efficiently, human resource has been considered as one of the most important factors in today’s
hypercompetitive market place. In the context of a developing economy like India, where the
need for formation of capital is pressing, where developments in the field of industrial and bank
management are dynamic, and where financial crises accompanying pangs of economic growth
are frequent, the challenges posed by HRM are great importance; and, as a sequel, exploring the
possibilities of the application of HRM becomes a very relevant field of enquiry and research.
The concept of job satisfaction has emerged and now there are several factors contributing to it
which are monetary and non-monetary. Job satisfaction is the favourableness or un-
favourableness with which employees view their work and it is affected by both internal and
external environment of the organization. Job design affect the job satisfaction, as jobs that are
rich in behavioural elements such as variety autonomy, task unimportance and feedback
contribute to employee’s satisfaction. Similarly the employee’s acceptance by the work group is
important to job satisfaction. To sum up each element of organizational environment and system
and contribute to detract from job satisfaction (William &J.R.Keith, 2000).
Human resource management practices is the management of people within the internal
environment of organizations, comprises the activities, policies, and practices involved in
planning, obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate
numbers and skill mix of employees to achieve the organization’s objectives (Appelbaum
2008). Presently organizations are competing through implementing the unique HRM practices
and due to the globalization organizations adopt the most up-to-date HRM practices in order to
accomplish the organizational goals. Best HRM practices are advantageous for both employee
and employer; it plays an important role in constructive growth of the organization.
Bogdanova et al (2008) stated that HRM practices try to develop and allocate human capital in
the best possible ways in order to achieve long-term goals; they provide them with many benefits
and good environments that would boost employee’s motivation, job satisfaction, and increase
their performance.
Gürbüz (2009) remarked that in order to sustain in the market human resource management
(HRM) practices and job satisfaction of employees have many significant benefits for
organisation.
Senyucel’s (2009) sees HRM as a combination of people-centered management practices that

recognizes employees as assets and geared to creating and maintaining skilful and committed
workforce for achieving organizational goals.
Human resources management practices play a very crucial role in achieving the organization’s
goals and maintain the competitive advantage. HRM practices refer to organizational activities
directed at managing the pool of human resource and ensuring that the resources are employed
towards the fulfilment of organizational goals (Schuler &Jackson 2010).
Khan (2013) revealed that in energetic business atmosphere, there is a need of an approach to
achieve better performance, to originate and implement HRM practices. In considerable and
insubstantial extent the organizations need to invest in such practices to get a competitive
advantage.
Job satisfaction is an attitude which is an outcome of harmonizing and summation of numerous
precise likes and dislikes experiences with the job. Job satisfaction for an employee is the level
of satisfaction according to job. Job satisfaction is a crucial indicator of how employees feel
about their job and describes how much they are contented with his or her job. The satisfaction
level of employees also associated with increase output of the organization. Job satisfaction of an
employee is essential to the success of an organization. In an organization a high rate of
employee contentedness is directly related to a lower turnover rate. Thus, keeping employees’
satisfaction in their jobs with their careers should be a foremost priority for every organization.
The success of an organization depends not merely on its technical efficiency, updated
machinery, good plant layout and dynamic organization etc; but also depends upon its human
recourses. A satisfied, happy and hardworking employee is the biggest asset of any organization,
including banks. Workforce of any bank is responsible to a large extent for its productivity and
profitability. So, for the success of banking, it is very important to human resource effectively
and to find whether its employees are satisfied or not.
One of the key factors of any organization is its employees. The success or failure of the
organization largely depends on their satisfaction and dissatisfaction. One of the reasons for
deteriorating conditions in an organization is low job satisfaction. Due to which, work slows
down, employees remain absent and sometimes employees may leave the organization also. High
job satisfaction on the other hand, is desired by the management because it tends to be connected
with the positive outcomes that managers want. High job satisfaction is the hallmark of well
managed organization and is fundamentally the result of effective behavioural management. It is
measure of the counting process of building a supportive human climate in an organization.
A major part man’s life is spent in work which is a social reality and social expectation to which
man seem to confirm. Even the only economic motive has never satisfied men. It is always
greater interest to know why men work and at which level and how he/she satisfied with the job.
Job satisfaction refers to an individual’s positive emotional reactions to a particular job. It is an
effective reaction to a job that results from the person’s comparison of actual outcomes with
those that are despaired, anticipated, or deserved.
Efficient human resource management and maintaining higher job satisfaction level in Banks
determine not only the performance of the Bank but also affect the growth and performance of
the entire economy. So, for the success of banking it is very important to manage human
resource effectively and to find whether its employees are satisfied or not only if they are
satisfied, they will work with commitment and project a positive image of the organisation. If
they are highly satisfied they produce more and it is profitable for the organization. Job
satisfaction is an integral component of organisation climate and an important element in the
management employee’s relationship. Job satisfaction means individuals emotional reaction to
job it. It is a positive emotional state that occurs when a person’s job seem to fulfil important job
values provided.
MEANING OF HUMAN RESOURCE MANAGEMENT
Human Resource Management has come to be recognized as an inherent part of management,

which is concerned with the human resources of an organization. Its objective is the maintenance
of better human relations in the organization by the development, application and evaluation of
policies, procedures and programs relating to human resources to optimize their contribution
towards the realization of organizational objectives. In other words, HRM is concerned with
getting better results with the collaboration of people. It is an integral but distinctive part of
management, concerned with people at work and their relationships within the enterprise. HRM
helps in attaining maximum individual development, desirable working relationship between
employees and employers, employees and employees, and effective modeling of human
resources as contrasted with physical resources. It is the recruitment, selection, development,
utilization, compensation and motivation of human resources by the organization.
In simple words, HRM is a process of making the efficient and effective use of human resources
so that the set goals are achieved. Let us also consider some important definitions of HRM.
According to Flippo “Personnel management, or say, human resource management is the

planning, organising, directing and controlling of the procurement development compensation
integration, 4intenance, and separation of human resources to the end that individual,
organisational and social objectives are accomplished”.
Brief history of Human Resources and HR Management
The history of Human Resources starts to be interesting with the evolution of the large
factories. It was in the 18th century. The rapid Human Resources is a business function, which
manages, leads, facilitates and provides tools for the human capital management in the
organization. HR sets strategic processes and procedures, runs difficult and complex
communication campaigns as the organization attracts the best talents from the job market,
retains them with the attractive compensation packages or it develops them in talent development
programs. HR runs many processes, which are crucial for the modern organization. We cannot
believe that the successful business could exist without the Recruitment and Staffing,
Compensation and Benefits, Training and Development or the Leadership Development.
However, in the past the companies did not use any of the HR value added processes. The story
of Human Resources started as evidence of all employees. It dealt with issues and requests.
Nothing more was expected to be delivered. The HR Management history is fascinating. The
wars usually change the path of Human Resources in organizations and society.
Development of new industrial approach to work changed the world dramatically. The quick and
cheap production became a priority for many industries. The factories hired thousands of
workers, who worked up to 16 hours a day. Soon, many entrepreneurs discovered that satisfied
employees are more effective and can produce more than depressed employees. Many factories
started to introduce voluntary programs for employees to increase their comfort and satisfaction.
On the other hand, the government started to intervene to introduce some basic human rights and
the work safety legislation.
The second rapid development of Human Resources started in the beginning of 20th century.
Most organizations introduced the Personnel Management. The personnel department had large
responsibilities. It was dealing with issues, introducing the new law requirements. It had the
responsibility for the implementation of different social and work place safety programs.
Everything was focused on the productivity of employees. The regular productivity increments
were the key measure for the management of employees. The significant change was introduced
after the 2nd World War because the military developed many training programs for new
soldiers. After the war, the training became a respected process in personnel department.
During this period, the trade unions evolved. The trade unions changed the rules of the game.
The employer got a strong partner to discuss with. Trade unions introduced many improvements
at no significant costs for the employer. Today, trade unions are not as strong as they were used
to be, but many organizations still benefit or suffer from a strong presence of trade unions in
their factories.
The real HR Revolution began in 70’s of the 20th century (see Early HR Management). The

technology and the globalization have changed the rules of the game. Most HR Functions are
running complex HRIS solutions, which make information about employees available anywhere
and anytime to managers and HR Professionals.
The economy of the wealthy western countries shifted towards the services economy. The
quality of services became the crucial competitive advantage. HR became necessary because the
structure of the workforce changed. The leadership development was the right answer.
Managers and leaders have to think global today; they have to understand to different cultural
backgrounds. The corporate culture cannot be country specific; it has to reflect many nations
working for the organization. This is a fantastic opportunity for Human Resources. Human
Resources Management is global today. The global HR policies drive processes in different
countries, but the processes produce comparable results. The employees relocate from country to
country.
The future of Human Resources is bright. The globalization cannot be stopped because nations
collaborate. The organizations become less country specific, and they cannot identify themselves
with one country.
New technologies will bring other revolutions to offices. The commute working is standard
today, but it will become a norm. The technology will connect employees as they would sit in the
next cubicle.
IPods will allow quick and instant access to information about employees and managers will be
able to make all decisions and approvals online.
However, the future of Human Resources will be about new networking methods and how to
make employees know each other.
Human Resource Management: Nature
Human Resource Management is a process of bringing people and organizations together so that
the goals of each are met. The various features of HRM include:
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good results.
• It helps an organization meet its goals in the future by providing for competent and well-
motivated employees.
• It tries to build and maintain cordial relations between people working at various levels in the
organization.
• It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology,
economics, etc.
Human Resource Management: Scope
The scope of HRM is very wide:

1. Personnel aspect-This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity etc.
2. Welfare aspect-It deals with working conditions and amenities such as canteens, crèches, rest
and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation
facilities, etc.
3. Industrial relations aspect-This covers union-management relations, joint consultation,
collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.
Human Resource Management: Objectives
• To help the organization reach its goals.

• To ensure effective utilization and maximum development of human resources.
• To ensure respect for human beings.
• To ensure reconciliation of individual goals with those of the organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-motivated employees.
• To increase to the fullest the employee’s job satisfaction and self-actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To develop overall personality of each employee in its multidimensional aspect.
• To enhance employee’s capabilities to perform the present job.
• To inculcate the sense of team spirit, team work and inter-team collaboration.
Functions of Human Resource Management
Human resource management (HRM), or human resource development, entails planning,

implementing, and managing recruitment, as well as selection, training, career, and
organizational development initiatives 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 treating employees as valuable
resources. Consequently, HRM encompasses efforts to promote personal development, employee
satisfaction, and compliance with employment-related laws.
The planning function refers to the development of human resource policies and regulations.
Human resource managers attempt to determine future HRM activities and plan for the
implementation of HRM procedures to help companies realize their goals.
Implementation of HRM plans involves four primary activities: acquisition, development,
compensation, and 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 tasks in accordance with company strategy. This activity also involves company
efforts to control and change employee behaviour via reviews, appraisals, incentives, and
discipline. Compensation covers the payment of employees for their services. Maintenance
requires structuring labour relations—the interaction between a company's management and its
unionized employees—and ensuring compliance with federal and state employment laws.
Finally, the evaluation function includes the assessment of a company's HRM policies to
determine whether they are effective.
We have already defined HRM. The definition of HRM is based on what managers do. The
functions performed by managers are common to all organizations. For the convenience of study,
the function performed by the resource management can broadly be classified into two
categories, viz.
(1) Managerial functions, and
(2) Operative functions (1.2)
These are discussed in turn.
(1) Managerial Functions:
Planning:
Planning is a predetermined course of actions. It is a process of determining the organisational
goals and formulation of policies and programmes for achieving them. Thus planning is future
oriented concerned with clearly charting out the desired direction of business activities in future.
Forecasting is one of the important elements in the planning process. Other functions of
managers depend on planning function.
Organising:
Organising is a process by which the structure and allocation of jobs are determined. Thus
organising involves giving each subordinate a specific task establishing departments, delegating
authority to subordinates, establishing channels of authority and communication, coordinating
the work of subordinates, and so on.
Staffing:
TOs is a process by which managers select, train, promote and retire their subordinates This
involves deciding what type of people should be hired, recruiting prospective employees,
selecting employees, setting performance standard, compensating employees, evaluating
performance, counselling employees, training and developing employees.
Directing/Leading:
Directing is the process of activating group efforts to achieve the desired goals. It includes
activities like getting subordinates to get the job done, maintaining morale motivating
subordinates etc. for achieving the goals of the organisation.
Controlling:
It is the process of setting standards for performance, checking to see how actual performance
compares with these set standards, and taking corrective actions as needed.
(2) Operative Functions:

The operative, also called, service functions are those which are relevant to specific department.
These functions vary from department to department depending on the nature of the department
Viewed from this standpoint, the operative functions of HRM relate to ensuring right people for
right jobs at right times. These functions include procurement, development, compensation, and
maintenance functions of HRM.
A brief description of these follows:
Procurement
It involves procuring the right kind of people in appropriate number to be placed in the
organisation. It consists of activities such as manpower planning, recruitment, selection
placement and induction or orientation of new employees.
Development:
This function involves activities meant to improve the knowledge, skills aptitudes and values of
employees so as to enable them to perform their jobs in a better manner in future. These
functions may comprise training to employees, executive training to develop managers,
organisation development to strike a better fit between organisational climate/culture and
employees.
Compensation:
Compensation function involves determination of wages and salaries matching with contribution
made by employees to organisational goals. In other words, this function ensures equitable and
fair remuneration for employees in the organisation. It consists of activities such as job
evaluation, wage and salary administration, bonus, incentives, etc.
Maintenance:
It is concerned with protecting and promoting employees while at work. For this purpose virus
benefits such as housing, medical, educational, transport facilities, etc. are provided to the
employees. Several social security measures such as provident fund, pension, gratuity, group
insurance, etc. are also arranged.
It is important to note that the managerial and operative functions of HRM are performed in
conjunction with each other in an organisation, be large or small organisations. Having discussed
the scope and functions of HRM, now it seems pertinent to delineate the HRM scenario in India.
Human Resource Management: Evolution

The early part of the century saw a concern for improved efficiency through careful design
work.During the middle part of the century emphasis shifted to the employee’s productivity.
Recent decades have focused on increased concern for the quality of working life, total quality
management and worker’s participation in management. These three phases may be termed as
welfare, development and empowerment.
THE FOCUS OF HRM

Businesses and organizations rely on three major resources: physical resources, such as materials
and equipment; financial resources, including cash, credit, and debt; and 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. 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.
THE ROLE, POSITION, AND STRUCTURE OF HRM DEPARTMET
In Personnel Management, Paul S. Green law and John P. Kohl describe three distinct,
interrelated fields of interest addressed by the HRM discipline: human relations, organization
theory, and decision areas. Human relations encompass matters such as individual
motivation, leadership, and group relationships. Organization theory refers to job design,
managerial control, and work flow through the organization. Decision areas encompass interests
related to the acquisition, development, compensation, and maintenance of human resources.
Although the method and degree to which those areas of interest are handled vary among
different HRM departments, a few general rules characterize the responsibilities, positioning, and
structure of most HRM divisions.
HRM department responsibilities, other than related legal and clerical duties, can be classified by
individual, organizational, and career areas. Individual management entails helping employees
identify their strengths and weaknesses, correct their shortcomings, and then 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 focuses on fostering a
successful system that maximizes human, and other, resources. 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, involves
matching individuals with the most suitable jobs and career paths.
The positioning of HRM departments is ideally near the theoretic organizational centre, with
maximum access to all divisions and management levels. In larger organizations the HRM
function might be headed by a vice president, while smaller entities will have a middle-level
manager as head of HRM. In any case, because the HRM department is charged with managing
the productivity and development of workers at all levels, the top HRM manager ideally has
access to, and the support of, key decision makers. In addition, the HRM department should be
situated in such a way that it has horizontal access, or is able to communicate effectively with all
divisions within the company. Horizontal access allows HRM to integrate, educate, and train the
workforce, and to facilitate changes that affect one division and indirectly influence other
segments of the company or institution.
The structure of HRM departments differs according to the type and size of the organization that
they serve. But many large organizations (including governments, institutions, manufacturing
companies, and service firms) organize HRM employee development functions around various
clusters of workers—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.
HRM IMPLEMENTATION ACTIVITIES To

fulfil 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:
acquisition, development, compensation, and 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, 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.

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. This feedback allows them to evaluate the appropriateness of their
behaviour in the eyes of their co-workers 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. 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.
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. This is often
successfully accomplished with performance based incentives. 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.
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. 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. To successfully administer a benefits program,
HRM professionals need to understand tax incentives, retirement investment plans, and
purchasing power derived from a large base of employees.
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 labour
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.
FORCES CHANGING HRM
In the 1990s several forces were shaping the broad field of HRM. The first key force, new
technologies—particularly information technology—brought about the decentralization of
communications and the shake-up of existing paradigms of human interaction and organizational
theory. Satellite communications, computers and networking systems, fax machines, and other
devices were facilitating rapid change. Moreover, since these technologies helped blur the lines
between work time and personal time by enabling employees to work at home, HRM
professionals began adopting "management by objective" approaches to human resources instead
of the traditional "management by sight" method.
A second important change affecting HRM was new organizational structures that began to
emerge during the 1980s and continued through the 1990s. Because many companies began
expanding their operations and diversifying their products and services, the central decision-
making system failed to respond quickly enough to managers' needs and concerns. Therefore,
companies started scrapping traditional, hierarchical organizational structures in favour of flatter,
decentralized management systems. Consequently, fewer managers were involved in the
decision-making process and companies were adopting more of a team approach to management.
HRM professionals, as the agents of change, were charged with reorganizing workers and
increasing their efficiency. These efforts also resulted in the proliferation of part-time, or
contract, employees, which required human resource strategies that contrasted with those
applicable to full time workers.
A third change factor was accelerating market globalization, which was increasing competition

and demanding greater performance out of workers, often at diminished levels of compensation.
To compete abroad, companies were looking to their HRM professionals to augment initiatives
related to quality, productivity, and innovation. Other factors changing HRM include: an
accelerating rate of change and turbulence, resulting in higher employee turnover and the need
for more responsive, open-minded workers; rapidly changing demographics; and
increasing income disparity as the demand for highly educated workers increases at the expense
of lower-wage employees.
OBJECTIVES OF THE STUDY

The objectives of the study are to measure employees’ satisfaction on the HRM practices of
Private banking sector. To that end, the specific objectives are:
To provide an overview and analysis of HRM practices;
To propose a test for measuring employee’s satisfaction by HRM practices;
To examine weak points of HRM practices which affects employees’ satisfaction;
To provide some suggestions for improving HRM practices and employee’s satisfaction.
SAMPLING TECHNIQUE
The present study is an exploratory research seeks to examine and analyze the impact of human
resource management practices on job satisfaction of private sector banking employees. For the
present study a few leading private sector is taken as research study. The sample units include
executives, middle level managers and managers of private banks. For the research 60
respondents were contacted for obtaining the information regarding HRM practices. But due to
busy time schedules of bank employee and their engagement in various activities the numbers of
respondents were restricted up to 50. A part from variables like : Gender, age and overall HRM
practices and employee satisfaction towards private sector banks were collected and percentage
method used for this study.
SAMPLE SIZE
The presented study was conducted in a Chennai city. In case of sample size we take 50
Employees (Respondents) of HRM practices and Employee satisfaction towards private Banks.
Out of the total 50, 30 were males and rest 20were females and the age group of the respondents
between 20 to 60.
METHODOLOGY OF THE STUDY
This paper is based on both primary and secondary data. Primary data were collected through a
structured questionnaire which was administered personally to the bank employees. Convenient
sample technique has been used to interview the employees. The target population of this study
was employees in Chennai city who are serving as a banker of different private banks. Among
various banks, this study only considered 4 private commercial banks. For conducting this
research, 60 bank employees are selected from the chosen banks and out of this 50 employees
responses properly, the response rate is 50 percent. The questionnaire consists of different
questions on nine HRM dimensions such as recruitment and selection systems, compensation
package, job security, career growth, training and development, management style, job design
and responsibilities, reward and motivation and working environment.
The questionnaire was developed by using a five point Liker scale, whereas 1 = dissatisfied, 2
= somehow satisfied, 3 = satisfied, 4 = moderately satisfied, 5 = highly satisfied. But some
secondary data have been used in the study. The secondary data used in the study have been
collected from related journals, books, newspapers and internet, etc. In this study collected data
has been processed and tabulated by the way of tables & graphs and the data was presented with
the help of Bar-diagram, Pie-Chart and tables.
LIMITATION OF THE STUDY

 In this study only Private Sector Banks has been taken into consideration.
 Only 4 Banks are taken for the purpose of study if some other banks have also been taken
for this purpose result may be varied.
CHAPTER ARRANGEMENTS
CHAPTER I= The study deals with:

Introduction
 Meaning
 History
 Nature
 Focus
 Role
 Sampling Technique
 Methodology and ;
 Limitation of study
CHAPTER II= Review of Literature
CHAPTER III= Analysis and Interpretation
CHAPTER IV= Conclusion

Suggestion
CHAPTER II
REVIEW OF LITERATURE
REVIEW OF LITERATURE
In order to examine the relationship between HRM practices and job satisfaction the researchers,
academicians and policy makers have investigated several studies in different time periods.
Many researchers have demonstrated that HRM practices and job satisfaction are the key factors
for employee performance. In this paper an attempt has been made to assess the relationship
between HRM practices and job satisfaction of private sector bank employees.
Human resource management (HRM) is considered a critical organizational resource that

Helps an organization sustain its effectiveness. It is one important area that influences a number
of employees' attitudes and behaviour such as intent to leave, levels of job satisfaction, and
organizational commitment (Lee & Heard, 2000).
Employee’s attitude towards their organizational which has great impact towards their working
ways and contributions, in consequence organizational climate causes organization performance
because this relates directly to employee’s motivation. Employee’s perception to organizational
as defined in six factors stringer (2002).
Gould-William (2003) showed that use of specific HR practices in local government

organizations in the United Kingdom (UK) was associated with a greater degree of job
satisfaction, workplace trust, commitment, effort, and perceived organizational performance.
To have a satisfied, motivated, less stressed performing workforce an organization must have
consistency amongst its structure, system, people, culture and good fit with the strategy. Impact
of different factors on job satisfaction has been analyzed in the literature. Job satisfaction
involves several different spheres such as satisfaction with pay, promotion opportunities, fringe
benefits, job security and the importance/challenge of the job. (Nguyen,Taylor, & Bradley,
2003).
Steijn (2004) found that HRM practices had positive effect on job satisfaction of the employees
of Dutch public sector whereas individual characteristics such as age, gender, and education had
insignificant effect on job satisfaction.
The best way to improve productivity is by striving for the shared goals of employees and
managers. By allowing worker input into developing the mission statement, establishing policies
and procedures, determining perks, etc., you can improve communication and increase morale
and satisfaction. For the success of banking, it is very important to manage human resource
effectively and to find whether its employees are satisfied or not workforce of any bank is
responsible to a large extent for its productivity and profitability. Efficient Human resource
management and maintaining higher job satisfaction level in banks determining not only the
performance of the bank but also affect the growth and performance of the entire economy
(Thakur, 2007)
Aswathappa, (2008) found that compensation is very much important for employees because it
is one of the main reasons for which people work. Employees’ living status in the society,
satisfaction, loyalty, and productivity are also influenced by the compensation. There are various
HRM practices as discussed by various researchers and academicians.
Katou (2008) conducted a study to measure the impact of HRM practices on organizational
performance in manufacturing sector of Greece. The results indicated that the relationship
between HRM practices (resourcing and development, compensation and incentives,
involvement and job design) and organizational performance is partially mediated through HRM
outcomes (skills, attitudes, behaviour), and it is influenced by business strategies (cost, quality,
innovation). The study concluded that HRM practices are associated with business strategies will
affect organizational performance through HRM outcomes.
Thang and Buyens (2008) stated that training and development lead to superior knowledge,
skills, abilities, attitudes, and behaviour of employees that ultimately enhance excellent financial
and non-financial performance of the organizations.
Mohanty (2009) presented specialized practices for retaining employees within organization. He
started that practices like open communication, employee rewards programs, carrer development
programs performance based bonus, recreation facilities and gifts at some occasion can help
organizational to retain potential human resources. He further added that open communication
keep employees up-to-date on key issues and enable them to know that their opinions and that
management is fully interested in their inputs, likewise, recreation facilities help staff away from
stress.
Awang et al (2010) examined the impact of job satisfaction of university lecturers on their
commitment towards academic activities. Besides that, it also investigated specifically factors
contributing to job satisfaction, namely promotional opportunities, remuneration, working
environment, workload, and relationship with colleagues, and management style. The study
found that promotional opportunities, workload and relationship with colleagues significantly
affect job satisfaction of lecturers. Most importantly, this study also confirmed that there is a
significant relationship between job satisfaction and work commitment.
In a study on public sector universities of Pakistan Malik et al (2010) examined the impact of
teachers’ satisfaction with job dimensions on perceived organizational commitment. The
findings of the study indicated that the satisfaction with work-itself, quality of supervision and
pay satisfaction had significant positive influence on organizational commitment of faculty
members. The study found that teachers had high degree of organizational commitment
The findings of the study indicated that the satisfaction with work-itself, quality of supervision
and pay satisfaction had significant positive influence on organizational commitment of faculty
members. The study found that teachers had high degree of organizational commitment and
satisfaction with work-itself, supervision, salary, co-workers and opportunities for promotion.
Padala (2010) conducted a study to identify the various parameters for employee job satisfaction
and organizational commitment.
Shikha (HRM 2010) examined practices among the employees of Indian commercial banks to
study HRM practices which provide a source of sustainable competitive advantages. Study
revealed that instead of spending resources on training and development, organization should
emphasize on long term commitment towards human resource.
Hock (2011) carried out a study to examine and gain a better understanding of the impact of
human resource practices on foreign workers job satisfaction in PCSB group of companies in
Malaysia. The results of the study found that the independent variable, only compensation was
found to have an impact on foreign workers job satisfaction. Results also revealed that workers,
who possess only primary education, have higher job satisfaction.
Iqbal et al (2011) conducted a study to compare the HRM practices of public and private
universities of Pakistan among executives. The study found that there was a significant
difference in HRM practices in public and private universities. HRM practices such as job
definition, training and development, compensation, team work and employees participation
were better in the public universities than private universities.
Martin (2011) conducted an investigation to find out the influence of HRM practices on job
satisfaction, organizational commitment and influence on intention to quit. HRM practices
include recruitment & hiring, compensation & benefits, training & development, and supervision
& evaluation. The result of research found a significant relationship between perceptions of
human resource practices and intention to quit, mediated by organizational commitment and job
satisfaction.
Zulfqar et al (2011) investigated a study to examine the relationship and nature of relationship
between HRM practices (compensation, performance evaluation, and promotion practices) and
the employee perceived performance in the banking sector of Pakistan. The results of the study
found that, the employee perceived performance and HRM practices has the positive and
significant relationship. Further results based on analysis indicated that performance evaluation
and promotion practices are significant but the compensation practices are not significant.
Khan et al (2012) conducted a study on university teacher of three different sectors of Pakistan
Universities (public, private and semi govt.) to find out the relationship between job satisfaction
and HR practices. The study found that male university teachers are more satisfied with their job
but female teachers are more satisfied with HR practices of universities. Public sector university
teachers are more satisfied and found direct relationship in length of experience and job
satisfaction. A similar study on bank employees was conducted by Majumder (2012) to gain an
insight into the current HRM practices (recruitment and selection systems, compensation
package, job security, career growth, training and development, management style, job design
and responsibilities, reward and motivation and working environment) and its impact on
employee’s satisfaction on the private banking sector in Bangladesh. The study revealed thamost
of the employees are dissatisfied with compensation package followed by reward and
motivation, career growth, training and development, management style, and job design and
responsibilities.
Hussain and Rehman (2013) examined the relationship between the HRM practices
implemented by the organization on employee’s intention to stay and work effectively for the
organization. The result of the study explored that HRM practices viz-a-viz: person-organization
fit, employment security, communication and training and development are contributing strongly
in developing the employees’ intentions to stay with organization. Further, strong positive inter-
relationships were found between HRM practices and employees’ retention and such practices
enhances employees’ retain ability of organizations.
Lamba and Choudhary (2013) revealed that how HRM practices provide an edge to
employee’s commitment towards an organization goal in the global competitive market. The
study concluded that HRM practices such as training & development, compensation and welfare
activities has significant effect on organizational commitment and are associated with superior
organizational performance, which help in retention of knowledgeable and skilled employees.
Olusegun (2013) conducted a study among universities employees in South West Nigeria to
examine the influence of job satisfaction on turnover intentions. The result of the study found
that the linear combination effect of job satisfaction and turnover intentions was significant.
There were significant relationships between job satisfaction and turnover intention. The study
also revealed that there was no significant difference in the turnover intention of library
personnel by their place of work.
On the basis of the above literature review, the study consider the following dimensions of
HRM practices have impacts on employees’ satisfaction towards organization such as
recruitment and selection systems, compensation package, job security, career growth, training
and development, management style, job design and responsibilities, reward and motivation, and
working environment.
CHAPTER III
ANALYSIS AND INTERPRETATION
Analysis and Interpretation
RESPONDENT’S PROFILE (N=50)
Table 3.1 Socio-Personal Analysis
PRIVATE SECTOR BANKS
S.NO Socio- personal Traits Frequency

(%)
1) Age ( years)
21-34 44
35-48 52
49-62 4
2) Gender:
Male 60
Female 40
3) Educational Status:
Higher Secondary 16
Graduation 30
Post Graduation 54
RESPONDENTS PROFILE:
The profile of the respondents has been discussed as under:
3.1 AGE
AGE GROUP
21-34 35-48 49-62

4%
44%
52%
Figure 3.1 Employees age group Analysis
Interpretation
It has been observed from the data in the table 3.1, and figure 1, we try to interpret that the
majority of the respondents (52%) in private banks were in the age group of 35-48 years whereas
those who were in the age group of 21-34 years were 44% and 49-62 were 4% respectively.
3.2 GENDER
GENDER
FEMALE
40%
MALE
60%
Figure 3.2 Gender wise Analysis
Interpretation
From the above table 3.1 and figure 3.2, we can analyze that majority of the respondents i.e. 60%
of respondents were male and 40% respondents were female in the private sector banks.
3.3 EDUCATIONAL STATUS
EDUCATIONAL STATUS
HIGHER SECONDARY GRADUATION
POST GRADUATION
16%
54%
30%
Figure 3.3 Educational status Analysis
Interpretation
From the above table 3.1. and figure 3.3, we can analyze from the data that 30% of employees
were Graduate, 54% were Post Graduate and the remaining were Higher Secondary.
4.Employees are satisfied on “Recruitment and Selection systems”?
Table 3.2 Recruitment & Selection Analysis

Particular Frequency Percentage
Dissatisfied 04 8
Somehow Satisfied 10 20
Satisfied 25 50
Moderately Satisfied 05 10
Highly Satisfied 06 12
Total 50 100
60%
50%
40%
30%
20%
10%
0%
Figure3.4 Recruitment & Selection Analysis
Interpretation
The above table and diagram represents that Employees are satisfied on the current Recruitment
and Selection systems of their bank ie., the recruitment system is fair and appropriate for the
appointment to the job. Therefore, we conclude that Employees are satisfied on Recruitment and
Selection system of their bank.
5. Employees are satisfied on “Compensation Package”?
Table 3.3 Compensation Package Analysis
Particular Frequency Percentage (%)

Dissatisfied 0 0
Satisfied 35 70
Total 50 100
compensation package
Dissatisfied Satisfied
Moderately satisfied Highly Satisfied
2%
10%
18%
70%
Figure 3.5 Compensation Package Analysis
Interpretation
The above table and diagram represents that Employees are satisfied with present salary,
increment allocation method and other Compensation package. The figure shows that 70% of
employees are satisfied and 18% of employees are moderately satisfied. We conclude that
Employees are satisfied on Compensation Package of their bank.
6. Employees are satisfied on “job Security”?
Table 3.4 Job Security Analysis

Dissatisfied 0 0
Satisfied 26 52
Total 50 100
Highly Satisfied
Moderately Satisfied
Satified
Somehow Satisfied
0% 10% 20% 30% 40% 50% 60%
Figure 3.6 Job Security Analysis
Interpretation
The above table and figure 3.6, represents that 52% of employees are satisfied, 24% are highly
satisfied, 16% of employees are moderately satisfied and remaining are somehow satisfied. None
of them are dissatisfied with their Job Security. Hence, we conclude that employees are satisfied
on job security of their bank.
7. Employees are satisfied on “Carrer Growth”?
Table 3.5 Carrer Growth Analysis

Dissatisfied 08 16
Satisfied 23 46
Total 50 100
Carrer Growth
Figure 3.7 Career
Growth
Analysis
46%
24%
16%
6% 8%
sfied sfied sfied sfied sfied

ati ati Sa
ti
Sa
ti
Sa
ti
iss S
y y
D ow tel hl
eh er
a
H
ig
m od
So M
Interpretation
The above table and diagram represents that 46% employees are satisfied, 24% employees are
moderately satisfied, 16% of them are dissatisfied, 8% employees are highly satisfied and
remaining employees are somehow satisfied. We conclude that employees are satisfied on their
career growth of their bank.
8. Employees’ are satisfied on “Training and Development”?
Table 3.6 Training and Development Analysis

Dissatisfied 28 56
Satisfied 05 10
Total 50 100
Figure
Training & Development 3.8 Training
& Dissatisfied Somehow Satisfied Satisfied Development
Moderately satisfied Highly Satisfied Analysis
4%
12%
10%
56%
18%
Interpretation
The above table and figure3.8, represents that employees are not satisfied on the current Training
and Development of their bank i.e., the Training & Development is not fair and appropriate for
the training to the job. Therefore, we conclude that 56% are not satisfied on Training and
Development of their bank.
9. Employees’ are satisfied on “Management Style”?
Table 3.7 Management Analysis

Dissatisfied 30 60
Satisfied 08 16
Total 50 100
Management Style
70%
60%
50%
40%
30%
20%
10%
0%
Dissatisfied Somehow Satisfied Satisfied Moderately satisfied
Figure 3.9 Management Analysis
Interpretation
The above table and figure 3.9, represents that employees are not satisfied on the current
Management and Style of their bank ie., the Management and Style is not fair and appropriate for
the job. Therefore, we conclude that 60% of employees are not satisfied on their Management
and Style of their bank.
10. Employees’ are satisfied on “Job Design and Responsibilities”?
Table 3.8 Job Design & Responsibilities Analysis

Dissatisfied 29 58
Satisfied 07 14
Total 50 100
70%
60%
50% Figure 3.10
Job 40% design &
30%
20%
10%
0%
Dissatisfied Somehow Satisfied Moderately
Satisfied satisfied
Responsibilities
Interpretation
The above table and figure 3.10 represents that employees are not satisfied on the current Job
Design & Responsibilities of their bank ie., it is not fair and appropriate for the job. Therefore,
we conclude that 58% of employees are not satisfied on their Job Design and Responsibilities of
their bank.
11. Employees’ are satisfied on “Reward and Motivation”?
Table 3.9 Reward and Motivation Analysis

Dissatisfied 08 16
Satisfied 15 30
Total 50 100
25%
20%
Figure 15%
10%
5%
0%
sfied sfied sfied sfied sfied

ati ati Sa
ti
Sa
ti ati
iss w
S
ly ly
S
D o te h
eh era H
ig
m od
So M
3.11Reward & Motivation Analysis
Interpretation
From the above table and figure 3.11, we can analyze that majority of employees 30% of
respondents are satisfied. 20%of respondents were somehow satisfied. 16% of respondents are
dissatisfied. 22% are moderately satisfied and remaining 12% are highly satisfied. We conclude
that employees are satisfied on reward and Motivation of their bank.
12. Employees’ are satisfied on “Working Environment”?
Table 3.10 Working Environment Analysis

Dissatisfied 18 36
Satisfied 09 18
Total 50 100
40%
30%
20%
10%
0%
d d d d d
isfie isfie isfie isfie isfie
at at Sa
t at Sa
t
iss S
y
S
y
D ow tel hl
eh er
a
H
ig
m od
So M
Figure 3.12 Working Environment Analysis

Interpretation
respondents are satisfied. 24%of respondents were somehow satisfied. 36% of respondents are
dissatisfied. 14% are moderately satisfied and remaining 8% are highly satisfied. We conclude
that employees are not satisfied on Working Environment of their bank.
13. Employees’ are “Satisfied with Co-Workers”?
Table 3.11 Co-Workers Analysis

Dissatisfied 03 6
Satisfied 16 32
Total 50 100
32%
28%
22%
12%
6%
Figure 3.13 Co-Workers Analysis

Interpretation
respondents are satisfied. 28%of respondents were moderately satisfied. 22% of respondents are
somehow satisfied. 12% are highly satisfied and remaining 6% are dissatisfied. We conclude that
employees are satisfied with Co-Workers of their bank.
14. Employees’ are satisfied with the amount of freedom in “Taking

Important Decision”?
Table 3.12 Taking Important Decision Analysis

Dissatisfied 30 60
Satisfied 07 14
Total 50 100
60%
Figure 3.14
50%
Important
Decision 40%
Analysis 30%
20%
10%
0%
Dissatisfied Somehow Satisfied Satisfied Moderately Satisfied
Interpretation
respondents are dissatisfied. 16% of respondents were somehow satisfied. 7% of respondents are
satisfied. 5% are moderately satisfied and none of them are highly satisfied. We conclude that
employees are not satisfied with the amount of freedom in Taking Important Decision of their
bank.
15. Employees’ Satisfaction with the “Level of Information”?
Table 3.13 Information Analysis

Dissatisfied 09 18
40% Satisfied 19 38
35%
30% Moderately Satisfied 07 14
25% Highly Satisfied 02 4
20%
15% Total 50 100
10%
5%
0%
Figure 3.15 Information Analysis
InterpretationFrom the above table and figure 14, we can analyze that majority of employees
38% of respondents are satisfied. 26% of respondents were somehow satisfied. 18% of
respondents are dissatisfied. 14% are moderately satisfied and 4% of them are highly satisfied.
We conclude that employees are satisfied with the Level of Information of their bank.
CHAPTER IV
CONCLUSION
Conclusion
The study disclosed the relationship between employees’ satisfaction and various dimensions of
HRM practices. In this study, we considered twelve major factors which represented most of the
human resources management practices followed by different private banks. The study reveals
that all HRM dimensions exercised in the private banking sector of Chennai does not satisfied to
the employees equally. Most of the employees are dissatisfied with important decision followed
by work environment, training and development, management style, and job design and
responsibilities. It is obvious that HRM practices in the private banking sector has not been fully
developed and there is the urgent need to employ the services of HR professionals, consultants
and researchers to help shape and develop new directional focus that will ensure an efficient and
effective human resource practices.
The study recommends that private sector banks have to build new policies and management
style to improve employee’s participation at middle level and senior level management. Other
practices like Training, Performance Appraisal, Team Work and Compensation..etc, need to be
maintained in order to achieve high level of job Satisfaction.
We suggest the following recommendations for doing perfect HRM practices in the private
banking sector:-
Bank should give various financial and non-financial benefits to employees according to their
Performance. This will make them more devoted to the work and their satisfaction will be
definitely high.
 This economy allows the importation of new technologies to enhance HRM, but
training is still a bit slow, thus employment of expatriates to handle such is still
encouraged.
 The cooperation and coordination between management and employee should be developed
because it is crucial for effective and efficient functioning of an organization.
 Attractive compensation package should be given to the employees.
 Management should make a clear cut career advancement path.
So, to make loyal employees organizational should pay attention to introduce managed
operations, provide incentives and rewards to motivate employees, make job secure and also
provide recreational activities to overcome workload. These activities might take much time and
money in the short-run but are quiet beneficial in the long run.
Finally, this paper suggest that bank should review existing pay practices so as to offer fair pay,
provide challenging and meaningful work tasks, and foster positive co-worker relationships in
order to create a good working environment. HRM practices are the vital factor for generating
satisfaction and commitment in employees in private sector banks.
SUGGESTIONS
 To have an intense and depth about the subject, a single factor under HRM can be chosen
for a survey.
 Not only banks, even other financial institutions can be include for HRM study, as HRM
is one of the core element in many firm, institutions, or company.
 As this survey was limited within Chennai, this survey can be extended to other
metropolitan studies to have an overload view about HRM.
 50 samples due to time constraints. This study can be on the basis of 100 samples for an
accurate result.
 As this study has concentrated study between public and private banks can be done on
this topic, to know which sector bank is efficient in HRM for employees.
 Even comparative study between public and private banks can be done to know about the
employee’s satisfaction towards bank.
BIBLOGRAPHY
BIBLOGRAPHY
REFERENCES
1. Lee Miin Huui, (October2012) “Human Resource Disclosure: The Current Practice
and Its Association with Corporate Characteristics in Malaysia” Interdisciplinary
Journal of Contemporary Research in Business COPY RIGHT © 2012 .
2. Raunak Narayan(2010) “Human resource accounting: A new paradigm in the era of

globalization” Asian Journal of Management Research Online Open Access publishing
platform for Management Research ISSN 2229 – 3795.
3. Syed Abdulla Al Mamun (2009) “Human Resource Accounting (HRA) Disclosure of

Bangladeshi Companies and its Association with Corporate Characteristics” REF:
BRAC University Journal, vol. V1, no. 1, 2009, pp. 35-43.
4. Rauf, Khalida (2010). The employee satisfaction towards HRM in banks., delhi
business review.
BOOKS
5. Sharma A.M “Personnel and Human Resource Management” Himalaya Publishing
House, New Delhi
6. Mirza S. Saiyadain “Human Resource Management” Tata Mc Graw- Hill Publishing
Company Ltd.
7. Aloke K. Sen “Human Resource: Development, Planning & Development, Asian

Books Private Ltd.
Websites
8. NBMINDIA.ORG
9. UKESSAYS.COM
10. EBSCO
ANNEXURE
ANNEXURE
QUESTIONNARIE
This questionnaire is only a part of research work carried out by the researches M.LAKSHMI OF
B.B.M, DEPARTMENT III YEAR “A” Batch of Ethiraj College for Women for partial
fulfillment of the degree. It was carried out on the topic “Human Resource Management
Practices and Employee Satisfaction towards Private Sector Banks.” The information provided
will be strictly kept confidential
1. GENDER:
o Male
o Female
2. AGE:
o 21-34
o 35-48
o 49-62
3. EDUCATIONAL STATUS
o Higher Secondary
o Graduation
o Post Graduation
4. The employees are satisfied on Recruitment and Selection process in Banks?

o Dissatisfied
o Somehow Satisfied
o Satisfied
o Moderately Satisfied
o Highly Satisfied
5. The employees are satisfied on their compensation package in banks?

o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
6. Employees are satisfied on job security in their banks?

o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
7. Employees are satisfied on their carrer growth?

o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
8. The employees are satisfied on their training and development in their banks?
o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
9. Employees are satisfied on their management style?
o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
10. The employees are satisfied on job design & responsibilities in banks?
o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
11. Employees are satisfied on reward and motivation on banks?

o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
12. Employees are satisfied on working environment?

o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
13. The employees are satisfied with their co workers?
o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
14. Employees are satisfied in taking important decision in their banks?

o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied
15. Employees are satisfied on level of information?

o Dissatisfied
o Somehow Satisfied
o Satisfied
o Highly Satisfied

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A STUDY ON HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEE

SATISFACTION TOWARDS PRIVATE SECTOR BANKS

PROJECT REPORT SUBMITTED TO THE

in partial fulfillment of the requirements for the award of degree of

BACHELOR OF COMMERCE IN BANK MANAGEMENT

Register No: 12/S303046

Under the guidance and supervision of

Mrs.A.J.Jemima Malathy, M.C.S, M.PHIL.

DEPARTMENT OF BANK MANAGEMENT

ETHIRAJ COLLEGE FOR WOMEN (AUTONOMOUS)

CHENNAI – 600 008

DEPARTMENT OF BANK MANAGEMENT

CHENNAI 600 008

I certify that the project entitled ‘‘A STUDY ON HUMAN RESOURCE

MRS.A.J.JEMIMA MALATHY, M.C.S.,M.PHIL. DR.MRS.T.USHA PRIYA M.COM,M.phil.,Ph.D

I express my gratitude tour principal Mrs.A.Nirmala, for providing me an opportunity to

SIGNATURE OF THE CANDIDATE

Employee Satisfaction towards private sector Banks” Submitted by me for the

Degree Of Bachelor Of Commerce In Bank Management is the record of research

DATE: 06/03/15 SIGNATURE OF THE CANDIDATE

Chapter Title Page No

III ANALYSIS AND INTERPRETATION 26

3.2 Recruitment and Selection Analysis 30

3.3 Compensation Package Analysis 31

3.4 Job Security Analysis 32

3.5 Carrer Growth Analysis 33

3.6 Training and Development Analysis 34

3.7 Management Style Analysis 35

3.8 Job Design and Responsibilities Analysis 36

3.9 Reward and Motivation Analysis 37

3.10 Working Environment Analysis 38

3.11 Co-workers Analysis 39

3.12 Important Decision Analysis 40

3.13 Information Analysis 41

3.2 Gender Analysis and Interpretation 28

3.3 Educational Status Analysis and Interpretation 29

3.4 Recruitment & Selection Analysis and Interpretation 30

3.5 Compensation Package Analysis and Interpretation 31

3.6 Job Security Analysis and Interpretation 32

3.7 Career Growth Analysis and Interpretation 33

3.8 Training & Development Analysis and Interpretation 34

3.9 Management Style Analysis and Interpretation 35

3.10 Job Design & Responsibilities Analysis &Interpretation 36

3.11 Reward and Motivation Analysis and Interpretation 37

3.12 Working Environment Analysis and Interpretation 38

3.13 Co-workers Analysis and Interpretation 39

3.14 Important Decision Analysis and Interpretation 40

3.15 Information Analysis and Interpretation 41

Senyucel’s (2009) sees HRM as a combination of people-centered management practices that

MEANING OF HUMAN RESOURCE MANAGEMENT

Human Resource Management has come to be recognized as an inherent part of management,

According to Flippo “Personnel management, or say, human resource management is the

The real HR Revolution began in 70’s of the 20th century (see Early HR Management). The

Human Resource Management: Nature

Human Resource Management: Scope

The scope of HRM is very wide:

Human Resource Management: Objectives

• To help the organization reach its goals.

Human resource management (HRM), or human resource development, entails planning,

(1) Managerial functions, and

(2) Operative functions (1.2)

These are discussed in turn.

(1) Managerial Functions:

(2) Operative Functions: