E 37 Black Book Final 2

A STUDY OF ETHICAL HUMAN RESOURCE
MANAGEMENT IN BANKING SECTOR
A Project Submitted to
Dr. HOMI BHABHA State University for partial completion of

the degree of
Master’s in Commerce (Banking & Finance)
Under the Faculty of Commerce
By
DHARA NAYEE
ROLL NO 91
Under the Guidance of
DR. KHUSHPAT JAIN SIR
SYEDENHAM COLLEGE OF COMMERCE AND

ECONOMICS,
CHURCHGATE, MUMBAI-40002
1
A STUDY OF ETHICAL HUMAN RESOURCE MANAGEMENT IN BANKING SECTOR
Index
SR NO CONTENT PAGE NO
1 CHAPTER 1: INTRODUCTION 5-19

1.1 Objectives 14
1.2 Methodology use to collect data 14
1.3 Scope of the study 15
1.4 Limitation of the study 19
2 CHAPTER 2: REVIEW OF LITERATURE 20-24
3 CHAPTER 3: CONCEPTUAL FRAMEWORK 25-47

3.1 Principle of Ethical in HR 25
3.2 The Definition of Bank 26
3.3 History of Banking 27
3.4 Type of Banking 28
3.5 Human Resource Metrics and benchmarking of Bank
29
3.6 Human Resource Management and Organisational
31
Performance
3.7 Challenges of HRM 32
3.8 Practices of HRM Strategy 36
3.9 The following are some basic limitation 37
3.10 Factors Affecting Ethics in Bank 39

3.11 Ethical Law Implemented in Banking Sector 39
4 CHAPTER 4: RESEARCH METHODLOGY 48-49
4.1 Introduction 48
4.2 Method use for Research Methodology 49
4.3 Qualitative Research 49
5 CHAPTER 5: DATA INTERPRETATION 50-62

5.1 Introduction 50
6 CHAPTER 6: Suggestion & Recommendations 63-68

6.1 Recommendation / Conclusion / Bibliography /
Website link / Annexure
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SYDENHAM COLLEGE OF COMMERCE AND

ECONOMIC
Certificate
This is to certify that Ms./Mr. has worked and duly completed
her/his Project Work for the degree of Bachelor in Commerce
(Banking and Insurance) under the faculty of Commerce in the
subject of DHARA NAYEE and her/his project is entitled, “A
STUDY OF ETHICAL HUMAN RESOURCE MANAGEMENT
IN BANKING SECTOR” under my supervision. I further certify
that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree
or Diploma of any University.
It is her/his own work and facts reported by her/his personal
findings and investigations.
Name and signature of
Seal of the Guiding teacher
College
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Declaration by learner
I the undersigned Miss DHARA NAYEE here by, declare that the work
embodied in this project work titled “A STUDY OF ETHICAL HUMAN
RESOURCE MANAGEMENT IN BANKING SECTOR”” forms my own
contribution to the research work carried out under the guidance of
“Dr. KHUSHPAT JAIN” is a result of my own research work and has not
been previously submitted to any other University for any other
Degree/Diploma.
Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.
Dhara Nayee
Certified by
Dr. KHUSHPAT JAIN .
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Acknowledgement-
To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.
I would like to acknowledge the following as being idealistic channels and

fresh dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.
I would like to thank my Principle Dr. MADHURI KAGALKAR for

providing the necessary faculties required for completion of this project.
I take this opportunity to thank our Coordinator Dr. KHUSHPAT JAIN for
his moral support and guidance.
I would also like to express my sincere gratitude towards my project guide

Dr. KHUSHPAT JAIN whose guidance and care made the project
successful.
Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my parents and peers
who supported me throughout my project.
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CHAPTER 1 – INTRODUCTION
 Human resource management (HRM or HR) :-
The strategic approach to the effective and efficient management of people in a company
or organization such that they help their business gain a competitive advantage. It is
designed to maximize employee performance in service of an employer's strategic
objectives. Human resource management is primarily concerned with the management of
people within organizations, focusing on policies and systems. R departments are
responsible for overseeing employee-benefits design, employee recruitment, training and
development, performance appraisal, and reward management, such as managing pay and
employee-benefits systems. HR also concerns itself with organizational
change and industrial relations, or the balancing of organizational practices with
requirements arising from collective bargaining and governmental laws.
The overall purpose of human resources (HR) is to ensure that the organization is able to
achieve success through people. HR professionals manage the human capital of an
organization and focus on implementing policies and processes. They can specialize in
finding, recruiting, selecting, training, and developing employees, as well as maintaining
employee relations or benefits. Training and development professionals ensure that
employees are trained and have continuous development. This is done through training
programs, performance evaluations, and reward programs. Employee relations deals with
the concerns of employees when policies are broken, such as cases involving harassment
or discrimination. Managing employee benefits includes developing compensation
structures, parental leave programs, discounts, and other benefits for employees. On the
other side of the field are HR generalists or business partners. These HR professionals
could work in all areas or be labour relations representatives working
with unionized employees.
HR is a product of the human relations movement of the early 20th Century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. It was initially dominated by transactional work, such
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as payroll and benefits administration, but due to globalization, company consolidation,

technological advances, and further research, HR as of 2015 focuses on strategic
initiatives like mergers and acquisitions, talent management, succession
planning, industrial and labor relations, and diversity and inclusion. In the current global
work environment, most companies focus on lowering employee turnover and on
retaining the talent and knowledge held by their workforce. New hiring not only entails a
high cost but also increases the risk of a new employee not being able to adequately
replace the position of the previous employee. HR departments strive to offer benefits that
will appeal to workers, thus reducing the risk of losing employee commitment
and psychological ownership.
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. HRM is
intimately intertwined with business strategy. In many situations, it even critically
influences business strategy.
The development of employee commitment through employee involvement and

empowerment is one of the key objectives of any HRM discourse. The complex business
objectives in today’s business environment are difficult to realize without developing
highly committed and motivated employees who would strive to contribute to
organizational goals. That is why, human resource issues are no more the exclusive
preserve of personnel specialists; rather line and general managers are being increasingly
involved in handling key HR issues and in evolving, shaping and managing human
resource strategies and policies. These developments have given a far greater recognition
to the HR function in organizational decision-making processes.
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 Banking has been and will always be a ‘People Business’. Though pricing is
important, there may be other valid reasons why people select and stay with particular
bank. Banks must try to distinguish themselves by creating their own niches or images,
especially in transparent situations with a high level of competitiveness. In coming
times, the very survival of the banks would depend on customer satisfaction. Those
who do not meet the customer expectations will find survival difficult.
 Banks must articulate and emphasise the core values to attract and retain certain
customer segments. Values such as sound, reliable, innovative, international, close,
socially responsible, Indian, etc. need to be emphasised through concrete actions on
the ground and it would be the bank’s human resource that would deliver this. It is a
common complaint among bank executives that skilled manpower is in short supply.
No two arguments on this, Human resources are becoming scarce – both in quality
and quantity.
 It is quite elementary that any resource that is in short supply needs to be properly
managed for the benefit of society and, therefore, you need to pay attention to the
entire human resource management process. What do I mean when I say this? You
need to manage the people – and for this you need to discriminate between the people,
I mean positive discrimination.
 The entire spectrum of ethical HR practice requires revolutionary changes if the banks
have to survive. Managing the people is the key challenge. And, in my opinion,
discrimination is the key word when dealing with people. You will notice that I will
use this word very frequently during my discussion.
 Ethical HR management is must necessary as banks are the important part of human
life, as they should be clear and adequate with the management of the services they
are providing to their customers so that t is properly and satisfactorily delivered to the
customers.
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 The ever changing banking industry, with a steady growth in the past decade, has
resulted in many vacancies and overall growth in the sector. The number of branches
of Public sector has risen significantly and accordingly the requirement for skilled
manpower has grown as well. The HR management team is responsible in any banks
to analyse future requirements of their organization and steadily calibrate recruitment
process.
 The changing scenario of the banking sector with emergence of online banking and
core banking services, there is a need to incorporate youth energy and exuberance in
work. But, there should be a fine balance between the youth energy and experienced
professional, to make it a successful and fruitful combination, just like in any other
sector. Hence, the HR management is responsible for maintaining this balance and
undergo some cultural and management adjustments to fit in the people working.
 The technology along with the method of working in banking sector is changing
rapidly. Not only the machines, but approaches to various schemes, policies and
banking facilities are changing with time. The new recruit and the older ones as well,
need to undergo necessary training to grasp the same from time to time. The human
resource management makes sure that the people working in the banking organization
are not suffering from any such discrepancy. Empowering the employees with training
and measuring their performance afterwards, is what the human resource department
needs to look after.
 Performance management and talent spotting: The HR management remains

responsible for measuring the overall performances of the employees working in
different departments. They focus more on the people who are lacking the spirit of
working in the organization and try to help them improve their performance for the
betterment of the bank. To give importance to the hard-work and dedication of
employees, the HR department provides the adequate praise and promotion to them.
 The banking sector is a wide financial and economical industry, which depends
majorly on the workforce. Thus managing and maintaining this workforce becomes
the priority for the HR department in the banks. It is also important for the HR
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management team to have a look at the present and possible future requirements of
the banks and work accordingly with the same.
 Achieve organizational goals

HRM function starts here. One major HRM objective is to fulfil organizational goals.
Utilizing human resources to achieve business requirements and goals is very important
for an effective HRM.
 Work culture
When it comes to handling HRM effectively and following objectives, employee and
work environment are the prior factors. Work culture plays an important role in defining
HRM and business performance.
An HR manager needs to be active while calling for strategies to foster better work culture.
Automated activities like leave approvals, reimbursement request acknowledgement, etc.
can help you. Quick operations and empowerment to employees help in creating positive
vibes at the workplace. Developing and maintaining healthy and transparent relations
among team members and teams contribute to building a good example of work culture.
Adopting the right solutions like employee management software can solve more than
half of your job.Small steps like short and sound onboarding processes can help build a
good image of the workplace.
 Team integration
One of the prime roles and objectives of HRM is to make sure the team coordinates
efficiently. Easy communication is the need for teams at an enterprise. An HR here must
ensure a tool to assist in making the integration easier and smooth.
The proper connection between individuals is a must to ensure productivity. To make HR

management successful, you need to search for better integration portals to make data
availability easier for people. Functional objectives like team integration are to produce
streamlined operations and tasks. A right tool like the self-service portal can bring
employees closer to HR folks.
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 Training and Development

Workforce being effective and performing are two important and basic elements to work
upon for achieving your basic objectives at an organization. With proper training and
providing future opportunities, employees feel safe and organized.
Effective employment is highly dependent upon the training practices. Providing

opportunities to employees is one great step to ensure workforce management.
There might be difficulties such as planning, scheduling, training sessions, and evaluation
of each on-boards. To lessen the pain, solutions like training management software can
help you with auto-reminders, easy scheduler, reporting, and tracking capability. The HR
manager can ensure effective training practice at the firm.
 Employee motivation
The prime objective of HR folk is to keep things on the right path. Keep distractions and
negative vibes away. For this, the employees need to be attended to and kept motivated
throughout. How can HR motivate employees?
Give powers to them. Take their views on things. Involve them in weekly meets or
decisions. Even if it is a fresher, let them join. Keep the morale always high. Employee
recognition like yearly appraisal based on their performance can too help.
An automated feedback system for performance appraisal management can keep your
employees motivated and ensure productivity throughout the service. When the
employees are satisfied and fulfilled, nothing else can prevent you from losing your
objectives and goals.
 Workforce empowerment
Talking about employee motivation, nothing can work better than empowering them.
Empowering them with tools like ESS (employee self-service) portal can help save HR
efforts too.
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With the portal, employees can themselves apply for approvals and track them through
their mobile phones. Be it leave request, generating payslip, checking PF account,
remaining leaves, upcoming holidays, manager details, or anything, HR intervention is
least required. Now, you no more need to knock on HR’s desk for small queries.
What else could empowering workforce take? How would you ensure the right workforce
engagement? Effective HRM measures can definitely help. Look for easy employee
management tips.
 Retention
Providing leadership qualities and opportunities, a healthy working area, and employee
retention are some prime objectives and deliverables of the HR managers. Keeping
employees retained and motivated needs to be a top priority for HRM.
Other than employee hiring, onboarding, and training cycle, keeping the employees
retained for long is the biggest challenge AKA objective of the HR people. It often occurs
that employees leave the organization within 2 months of onboarding. It can be due to
ineffective training management or a rough hiring process.
Employee experience needs to be carefully attended. Keeping your employees retained

can help maintain a good state of employee turnover. To keep it stable, the HR manager
needs to learn the best retention tips for business.
 Data and compliance

Functional and organizational objectives also include managing company/ employee data
and managing compliances. Managing payroll compliances and keeping the company out
of any penalties or fines is a huge challenge for HR people and managers.
Even a small error or miscalculation can owe you huge penalties and even may lose
respect. When committing to tasks like employment and payroll, you need to be careful
about laws and regulations. The objective here is to keep any unwanted claims at bay for
smooth functioning.
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Automated software like the HRMS system can help you keep errors at the side and leave
no window for owing any penalty from IRS. It is the responsibility of HR to follow IRS
guidelines and standards for effective employment at the company. Stay assured of all the
legalities.
An HRMS system is a new-age employee experience software and payroll system. It

eliminates the maximum part of the paperwork and human intervention, which then drops
the chances of human error in calculations.
The HRMS helps you streamline HR activities, which include important tasks in order to
achieve the objectives.
Auto-generation of reports and reminders make processes easier and more accurate. The
chances of failing with an HRMS tool is minimal. Data access, time consumption, and a
better work environment are some major benefits of the right HR management.
Curating and working upon a set of HR objectives can help you get the cutting edge of
survival in the industry. With the changing conditions and requirements of people, staying
up-to-date with trends and HR strategies can be a better decision.
As time passes, we realize and adopt the changes that are taking place around us. We keep
on evaluating effects of changes on us. It is obvious that technology has changed and
modified the life styles of human beings. In the process of industrialization,
modernization and globalization, we are observing some global issues like global
warming, environmental concerns, social and ethical issues. These issues and concerns
do not emerge instantly rather it takes years of continuous and gradual change. It is said
that every action ends up with some reaction. Therefore, the uninterrupted
industrialization has been significantly threatening to our society, nature, and human life
as well. It is again technology that has helped scientists to undrape the various bad
effects of innovations. It is high time for us to enliven consciousness of our society
about the blind industrialization and enhance quality of life. In the above context,
we need to identify a common factor that can be an independent entity. A Bank is one
of the most common factor among human beings, societies, industries, and countries.
We all are related to Banks directly or indirectly. There is direct role of banks in day-
to-day activities of our life. As we know that a bank is a financial institution and
whether it is a common person, private organization or government organization,
all of them are dealing with banks. Therefore, the responsibility of banks increases
and we need to understand the role of banks in the Global Economy of 21st century.
 Periodic History of Human Resource Management

The practice of HRM was started before the world war during the 17th century (Langbert
&Aupperle, 2002). During those periods of time, there were industries and organizations
where different kinds of industrial tasks were carried out by the help of labors and
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industrialists. Quinn & Rohrbaugh [1983] has listed the four competing methods of
Organization’s effectiveness such as: Human relations, internal process, rational goal and
open system (Langbert & Aupperle 2002, 932). Whereas Ulrich [1997] has discovered
four HR deliverables which are Employees, efficiency, strategy execution and capacity
for change (Langbert & Aupperle 2002, 932-933).
Historically HR had four broad periods Pre-industrial period, paternalist period,
bureaucratic and high-performance period (Langbert & Aupperle 2002, 933). Each
particular period shows a slight improvement with the prior one in terms of equality and
flexibility. However, the preindustrial period was said to have high inequality and
flexibility which lasted until the late 18th century in the United States of America
(Langbert &Aupperle 2002, 933). Significant improvement was made in the time period
of late 18th century to 20th century. However, management practices for the employees
in those days was still less effective and more inferior and unsatisfactory compared to the
HRM of the 21st century (Langbert & Aupperle 2002 932-933.)
The early time period known as pre-industrial time period, is the time period between 17th
to 18th century when the medieval statue of labours was started (Langbert &Aupperle
2002, 933). During that period the cruel law or principle practice of physical punishments
to the labour’s were practiced, enslaved servants and slaves were hired to work in the
province (Langbert &Aupperle 2002). There were laws confining the freedom of
employment to the employees.
Hiring and rejecting employees were not fair and motivation was quite low. Author,
himself agrees that the quality of the HRM was low and not well organized. After the end
of the first time period, paternalist period was started. Paternalism refers to the policy of
restricting the freedom and responsibilities of the subordinates by the people in authority.
The period lasted from the late 18th century until the beginning of 20th century (Langbert
&Aupperle 2002, 933- 934.)
During the period of 20th century, there has been slight change effectively markets were
growing, and the industries were expanded. As a result, Organizations and firms were
fruitfully improved with good labor output and there was a positive change in state of
living and life expectancies (Langbert & Aupperle 2002). Slavery was abolished, and the
flexibility was reinforced with the evolution of employment. So the modern management
practices were developed with the inducement plans (Langbert &Aupperle 2002, 933). As
stated by Jacoby [1985], ‘The drive system generally led to bribery of foremen obtain jobs
and physical abuse of worker’ (Langbert &Aupperle 2002, 933-934). Bureaucratic
systems were evolved where as a result job analysis, training, evaluation of jobs,
classification and employee selection were developed (Langbert &Aupperle 2002, 934).
Late in time period of late 18th century, Trade unions happened to take place whereas
during late 20th century some learning experiments were made to find out good and bad
in terms of HR. Subsequently some experiments succeeded whereas some failed
(Langbert &Aupperle 2002, 934). Bureaucratic period pressures were enforced by Trade
unions, management experts, and economists on firms to reform the paternalist period’s
low-quality practices (Langbert &Aupperle 2002, 934). However, improvement came
with management practice, Bureaucratization and unionization in the early 20th century.
Later, Taylor (1972) supported the idea for the rational goal-setting model which focused
on improving the employee selection and jobs and employees (Langbert &Aupperle 2002,
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934). Technological shifts, computers, telecommunication begin to come into more

practice as a new work approach (Langbert &Aupperle 2002, 935).
Eventually, high-performance period was introduced when the Transportation industries
were denationalized, and importance of small business firm and entrepreneurship were
announced and spread widely for the improvement of economy. Essentially, HR focused
more on customer needs and satisfaction, authorization to the workforce, increased
responsibility, psychological motivation and learning more about the organizations
(Langbert & Aupperle 2002, 935).
1.1 Objectives of the study
Every task has a particular aim. A study without objective cannot reach its destination.
The main objectives of this study are to find out the overall HRM process of various
banks. The objectives of the study conducted in the banks are mentioned as under:
 To study the ethical human resource management in the banks.

 To study the problem faced by the employee in banking sector/industry.
 To identify ethical human resource management strategies
1.2 Methodology use to collect data
 Methodology used in the introduction part is the collection of raw data and primary data.
 Primary data collected through the employee of a bank
 Convenient sampling method is used select respondents
 For analysis interpretation suitable statically technique are used like graph, tables etc.
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1.3 Scope of the study
Human Resource Management is not just limited to manage and optimally exploit human
intellect. It also focuses on managing physical and emotional capital of employees.
Considering the intricacies involved, the scope of HRM is widening with every passing
day. It covers but is not limited to HR planning, hiring (recruitment and selection), training
and development, payroll management, rewards and recognitions, Industrial relations,
grievance handling, legal procedures etc. In other words, we can say that it’s about
developing and managing harmonious relationships at workplace and striking a balance
between organizational goals and individual goals.The scope of HRM is extensive and
far-reaching. Therefore, it is very difficult to define it concisely. However, we may
classify the same under following heads:
 HRM in Personnel Management:
This is typically direct manpower management that involves manpower planning, hiring
(recruitment and selection), training and development, induction and orientation, transfer,
promotion, compensation, layoff and retrenchment, employee productivity. The overall
objective here is to ascertain individual growth, development and effectiveness which
indirectly contribute to organizational development.
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It also includes performance appraisal, developing new skills, disbursement of wages,

incentives, allowances, traveling policies and procedures and other related courses of
actions.
 HRM in Employee Welfare:
This particular aspect of HRM deals with working conditions and amenities at workplace.
This includes a wide array of responsibilities and services such as safety services, health
services, welfare funds, social security and medical services. It also covers appointment
of safety officers, making the environment worth working, eliminating workplace
hazards, support by top management, job safety, safeguarding machinery, cleanliness,
proper ventilation and lighting, sanitation, medical care, sickness benefits, employment
injury benefits, personal injury benefits, maternity benefits, unemployment benefits and
family benefits.
It also relates to supervision, employee counselling, establishing harmonious relationships

with employees, education and training. Employee welfare is about determining
employees’ real needs and fulfilling them with active participation of both management
and employees. In addition to this, it also takes care of canteen facilities, crèches, rest and
lunch rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.
 HRM in Industrial Relations:
Since it is a highly sensitive area, it needs careful interactions with labour or employee
unions, addressing their grievances and settling the disputes effectively in order to
maintain peace and harmony in the organization. It is the art and science of understanding
the employment (union-management) relations, joint consultation, disciplinary
procedures, solving problems with mutual efforts, understanding human behaviour and
maintaining work relations, collective bargaining and settlement of disputes.
The main aim is to safeguarding the interest of employees by securing the highest level
of understanding to the extent that does not leave a negative impact on organization. It is
about establishing, growing and promoting industrial democracy to safeguard the interests
of both employees and management.
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 We have, then, three major subdomains, summarized here under the acronyms
MHRM, SHRM, and IHRM. Researchers have pursued questions in all sorts of
specialized niches in these three domains, some publishing for decades on one minor
aspect of a field (the age-old academic strategy of looking for new angles in a small
corner of a perpendicular field). For much of the time, the three subdomains seem to
have been developing in parallel. While this has added to the volume of publication,
over-specialization brings problems and much can be done to enhance learning about
theory and/or methodology from one domain to another (Wright and Boswell 2002).
We think there are some important characteristics of an analytical approach to HRM
that are critical for the intellectual life of all three domains.
 Micro HRM (‘MHRM’) covers the sub functions of HR policy and practice (Mahoney
and Desktop 1986). These can be further grouped into two main categories. The
largest group of sub functions is concerned with managing individuals and small
groups, including such areas as recruitment, selection, induction, training and
development, performance management, and remuneration. These topics each cover
a vast array of practices, underpinned by an extensive body of research, much of it
informed by personnel or industrial-organizational psychology and, to some extent,
by personnel and institutional economics. A smaller group of sub functions concerned
with work organization and employee voice systems (including management–union
relations) is less driven by psychological concepts and is more associated with
industrial sociology and industrial relations.
 The depth of research in the HR sub functions has grown enormously over the years
and some areas, such as Human Resource Development, can legitimately claim to be
fields in their own right. Regular reviews testify to this depth while pointing out the
way in which MHRM research often remains ‘silo based’ and, thus, poorly connected
to the wider set of HR practices and to broader workplace problems (e.g. Wright and
Boswell 2002). On the other hand, each of these sub functional domains represents
recurring organizational processes which carry major costs and simultaneously offer
opportunities to improve performance. The conventionally designed first course in
HRM in any country is a survey course which attempts to summarize MHRM research
across the major sub functional domains and, in the better-designed programs, relate
it to local laws, customs, organizations, and markets. A vast range of textbooks
published by the largest international publishers serve this need.
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 Strategic HRM (‘SHRM’) is concerned with systemic questions and issues of serious
consequence—with how the pieces just described might fit together, with how they
might connect to the broader context and to other organizational activities, and with
the ends they might serve. SHRM focuses on the overall HR strategies adopted by
business units and companies and tries to measure their impacts on performance (e.g.
Dyer 1984; Delery and Doty 1996). Much of the ‘big push’ in the recognition of the
field of HRM came from landmark works in the 1980s which sought to take a strategic
perspective, arguing that general managers, and not simply HR specialists, should be
deeply concerned with HRM and alert to its competitive possibilities (e.g. Beer et
al. 1984). The area now has major texts reviewing a research domain in which HRM
bridges out to theory and research in strategic management as well as industrial
relations and organizational behaviour (e.g. Boxall and Purcell 2003; Paauwe 2004).
The links with strategic management are well known, particularly through the two
fields' mutual interest in the resource-based view of the firm and in processes of
strategic decision-making (e.g. Boxall 1996; Wright et al. 2003). The links with
industrial relations are also very important, currently shown in the shared interest in
the notion of ‘high-performance work systems,’ while the connections with
organizational behaviour are evidenced in mutual interest in such notions as
psychological contracting and social exchange (e.g. Wright and Boswell 2002; Purcell
et al. 2003).
 A third major domain is International HRM (‘IHRM’). Less engaged with the
theoretical bridges that are important in strategic HRM, IHRM concerns itself with
HRM in companies operating across national boundaries (e.g. Brewster and
Harris 1999; Evans et al. 2002; Dowling and Welch 2004). This connects strongly to
issues of importance in the fields of international business, including the
internationalization process. International HRM is an amalgam of the micro and the
macro with a strong tradition of work on how HR sub functions, such as selection and
remuneration, might be adapted to international assignments. When, however, the
field examines the ways in which the overall HR strategies of organizations might
grapple with the different socio-political contexts of different countries (as, for
example, in several chapters of Harzing and Van Ruysseveldt's (2004) edited
collection), it takes on more strategic features.
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The scope of HRM is extremely wide, thus, can not be written concisely. However,
for the sake of convenience and developing understanding about the subject, we
divide it in three categories mentioned above.
1.4 Limitations of the study
Despite all the benefits that HRM offers, it also carries certain drawbacks. A good
understanding of these drawbacks can help managers implement HRM principles effectively
and derive maximum benefits.
Limitation of the study:

 This study is limited to people working in banking sector or is related to banking
sector.
 Due to limited people surrounding me, time and other resources the data was
collected from 60 respondants.
 This survey is limited to people from age group 22-45.
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CHAPTER 2
REVIEW OF LITERATURE
1. Dr. K.A. Goyal and Vijay Joshi

Economic performance of a country is largely determined by banking and financial
system. Banking and finance play a vital and crucial role in framing public policies in
today’s business environment. This article highlights social and ethical issues such as
social banking, ethical banking, green banking, global banking, rural banking, and Agri-
banking, which help in achieving sustainable development of banking and finance. For
this purpose, we have gone through a series of development that are taking place in current
business scenario. This paper is divided in four parts. First part discuss introduction of
Banking Industry in India. Second part explains historical background of banking and its
development. It also discusses concept of Banks. Third part analyses the review of past
studies on the theme. Fourth part highlights Social and Ethical issues related to Banking
Industry and finally conclusion has been given.
2. Journal of Business Ethics
This paper explores the behaviour of the banking industry in the new business
environment that arose after the subprime crisis. The main hypothesis is that there are two
major types of banking institutions: conventional banks and ethical banks. Each has a
distinct business model. To test how they have reacted to the new environment, factor
analysis techniques have been used. The main findings are twofold. Firstly, the new
financial context has indeed caused the behaviour of mainstream banks to change. Within
this group, one can further distinguish between those that have tried to anticipate the
changes by adopting a more responsible financial attitude and those that have merely
modified their banking practice to comply with the new regulatory framework. Secondly,
there are the so-called ethical banks. Interestingly, their behaviour has scarcely been
altered by the new financial context. The main conclusion is that the different response of
both types of banks reflects the existence of a distinct business model.
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3. Sunny Gupta
In this competitive world each bank needs to own most market share. during this
last most share differing kinds of selling methods and ways area unit adopted by banks.
except for the expansion and survival each business should trade off between 'profit' and
'ethical' problems regarding their promoting methods. So, a number of these promoting
methods adopted by banks may be unethical. Unethical practices will profit briefly run
however will severely injury name of bank within the end of the day. In general, ethics is
outlined as “a branch of philosophy coping with what's smart and dangerous and with
ethical duty and obligation”. Ethics is that the common prescribed follow of various
ethical principles or values. It concentrates on the overall nature of ethical and therefore
the specific moral alternative a private makes in relationship to others. Ethics in banks is
all the a lot of vital because it establishes confidence of public within the system. smart
moral practices area unit vital for banks as banking industry is predicated on trust and
confidence of individuals. gift paper is modest decide to uncover unethical practices in
promoting of banks and problems that make moral conflict. "Core moral values embrace
honesty, integrity, fairness, accountable citizenship and responsibility. In short, business
ethics means that "choosing the great over the dangerous, the proper over the incorrect,
the truthful over the unfair, the reality over the lie". perceptive the law is one basic skilled
demand for banks. they have to additionally pay shut attention to ethical issues so as to
create the proper moral selections on a daily basis. The upholding of associate moral
culture in banking is of crucial interest to regulators, banks, workers and customers alike.
Banking ethics area unit the ethical or moral principles that bound banks selected to abide
by. There isn’t associate ethics investigator or a universal code of moral conduct, however
the banks that vaunt their moral credentials vet the moral standing of potential investors
and partners and additionally select the businesses that they successively invest in with
their ethical policy in mind.
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4. Sustainability and Ethical Banking: A Case Study of Punjab

National Bank, (Amrish Dogra & Manu Dogra)
In the field of banking and finance, Ethical banking is a business model that responds to
emerging approaches to sustainable economy based on the principles of corporate social
responsibility. Ethical banking is also known as ‘sustainable banking’ or ‘civic banking’
or ‘clean banking’. ‘Transparency in reporting’ is a major value integrated in the
fundamentals of ethical banking (Barcelona, 2012). The recent disclosure of mega scam
in Punjab National Bank has violated this fundamental norm of ethical banking. Besides,
the surmounting nonperforming assets in banks pose a threat to the sustainability of these
banks. The present study focusses upon these two areas of CSR by forecasting NPAs of
PNB in 2025 and by highlighting the present case of mega scam in the bank. The study
has forecasted the non-performing assets of PNB on the basis of quarterly data from 2010
to 2017. Basel II guidelines regarding better supervisory review, market discipline via
certain disclosure requirements and minimum regulatory capital were introduced in an
advanced manner in India in 2010. Hence, quarterly data relating to repo rate, gross
domestic product, inflation rate and loans and advances from 2010 to 2017 has been
considered. The second major objective of the study aims at highlighting the recently
revealed scam relating to Punjab National Bank. Coincidentally, the PNB scam also lasted
seven years from 2010 to 2017. For forecasting non-performing assets of PNB in 2025,
E-views 8 have been used to perform multiple linear regression on the data. Besides, the
case also gives an outline of the scam declared on February 14, 2018 which highlights the
fraudulent transactions at one of its branches. (Hindustan Times, Feb 20, 2018). The study
empirically finds out that if the trend goes on, the Gross NPAs of Punjab National bank
will be equal to INR 84140.46 crores which is 9.56% of its average loans and advances.
The results are quite alarming. The study has forecasted the non-performing assets of PNB
using multiple linear regression equation. The forecasted NPA figure can help the
regulatory bodies in further analysis of bank’s financial soundness post scam. The intent
of this critique study is to incite further exploration of the financials of PNB giving due
consideration to nonreported transactions covered under the scam.
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5. A Case Study of Yes Bank , (Dr. Prameela S Shetty & Ms. Ramya
Shetty)
Business ethics is a matter of concern now a days. There are many live examples of failure
in governance and unethical practices by companies which has doped the investors in turn
affecting the economy in a large scale. This paper is an attempt to study the case of Yes
Bank which became bankrupt without giving a hint of that to the investors. The study
makes an attempt to check if the bankruptcy of Yes Bank could have been predicted. The
study also makes an attempt to review the governance and find the reason for the
bankruptcy. This paper tries to evaluate the performance of Yes Bank by calculating the
Z-score from 2014 till 2019. The study reveals that the bankruptcy could not be predicted
by the z-score model. This is because of the non reflection of certain transactions in the
balance sheet and internal governance issues which becomes a matter of concern for all
the stakeholders, especially the shareholders
6. Ethics and Professionalism in the Banking Industry, a Case Study of

Nigerian Banking Environment
The study’s objective is to look at empirical investigation into the various causes of Bank
failure with more emphasis on compliance enforcement by Banks with the Banking Code
of Ethics and Professionalism (BCEP), so as to achieve a robust banking environment.
Banking failure in Nigeria had become a worry to all and sundry. Questionnaires were
administered to staffers of selected banks in the South Western states of Nigeria for a
quick coverage as a result of the limited time, available for the conduct of this study. One
Hundred [100] questionnaires were administered, but only eighty five (85) were received
and analysed. The analysis of data and the test of hypotheses was based on the use of the
Pearson’s Moment Correlation Co-efficient, it showed that majority of bank failures in
Nigeria, occurred not only because of non-adherence to ethical practices among operators
but due to the spiralling height of indiscipline, corruption, hi-tech money laundering of
public funds stolen by people in government authority, and the continuous uncontrollable
conspiratorial acts of non-professionals and grossly incompetent government appointees
into positions of regulatory and supervisory authority in the institutional framework in
total authority and management of the banking and finance industry. Yet at the level of
the operators, there has been gross insider’s abuse on lending; lending to high risk
borrowers; micro-economic instability that has perpetually kept the economy comatose.
In this paper legal enforcement and strict sanctions, adherence to ethical and professional
practices in the banks and the entire financial industry is highly recommended. Also
advocated is the coming together of professional bankers in academics to form an
association and use their various research capacities and potentials to advise the banking
and Finance industry in the area of ethics and professionalism.
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7. A STUDY OF SOCIAL AND ETHICAL ISSUES IN BANKING

INDUSTRY, (Dr. K.A. Goyal and Vijay Joshi)
Economic performance of a country is largely determined by banking and financial
system. Banking and finance play a vital and crucial role in framing public policies in
today's business environment. This article highlights social and ethical issues such as
social banking, ethical banking, green banking, global banking, rural banking, and Agri-
banking, which help in achieving sustainable development of banking and finance. For
this purpose, we have gone through a series of development that are taking place in current
business scenario. This paper is divided in four parts. First part discuss introduction of
Banking Industry in India. Second part explains historical background of banking and its
development. It also discusses concept of Banks. Third part analyses the review of past
studies on the theme. Fourth part highlights Social and Ethical issues related to Banking
Industry and finally conclusion has been given. Introduction As time passes, we realize
and adopt the changes that are taking place around us. We keep on evaluating effects of
changes on us. It is obvious that technology has changed and modified the life styles of
human beings. In the process of industrialization, modernization and globalization, we are
observing some global issues like global warming, environmental concerns, social and
ethical issues. These issues and concerns do not emerge instantly rather it takes years of
continuous and gradual change. It is said that every action ends up with some reaction.
Therefore, the uninterrupted industrialization has been significantly threatening to our
society, nature, and human life as well. It is again technology that has helped scientists to
undrape the various bad effects of innovations. It is high time for us to enliven
consciousness of our society about the blind industrialization and enhance quality of life.
In the above context, we need to identify a common factor that can be an independent
entity. A Bank is one of the most common factor among human beings, societies,
industries, and countries. We all are related to Banks directly or indirectly. There is direct
role of banks in day-to-day activities of our life. As we know that a bank is a financial
institution and whether it is a common person, private organization or government
organization, all of them are dealing with banks. Therefore, the responsibility of banks
increases and we need to understand the role of banks in the Global Economy of 21st
century.
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CHAPTER 3 : CONCEPTUAL FRAMEWORK
3.1 Principles of ethical HR
 Professional Responsibility:
As a professional, the HR manager is responsible for adding value to organisation
he is serving and he must contribute to the ethical success of the organisation. He should
accept responsibility for his personal decisions and actions. He is also an advocate for the
profession by engaging in activities that enhance its value and credibility.
 Professional Development:
As professionals, the HR managers must strive to meet the highest standards of
competence and commit to strengthen their own competencies on a continuous basis.
 Ethical Leadership:
HR professionals are expected to exhibit individual leadership as a role model for
maintaining the highest standards of ethical conduct.
 Fairness and Justice:

The HR managers are responsible for promoting and fostering fairness and justice
for all employees and their organisation. The purpose of this principle is to create an
environment that encourages all individuals and the organisation to reach the fullest
potential in a positive and productive manner.
 Conflicts of Interest:
HR managers must maintain a high level of trust with all their stake holders. They
must protect the interests of their stakeholders as well as their own professional integrity
and should not engage in activities that create actual, apparent or potential conflicts of
interests.
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 WHAT IS BANKING SECTOR IN GENERAL ?
The main idea of this chapter is to provide information of bank with some examples.
Moreover, this chapter helps the reader to identify the HR metrics as well as internal and
external factors affecting inside the bank.
3.2 The definition of bank
Banks plays an important role in the development of economy. Bank is the financial
institution which is permitted to receive deposits, conduct monetary policy, and make
loans. Banks may also provide financial services such as wealth management, currency
exchange and safe deposit boxes (Investopedia 2018). Banks creates liquidity for the
public on the balance sheet by transforming relatively illiquid assets for example: loan
commitments and similar claims to liquid funds (Berger, Molyneux & Wilson 2015).
Other tasks of banks are to reduce interest rate, credit, foreign exchange rate and liquidity
risk. Some of the largest banks has transformed themselves into multiproduct
multimarket, financial service conglomerates which offer retail banking, investment
banking, breakage, insurance, wealth management services (Berger, Molyneux & Wilson
2015).
In addition, there are various other things that helps to run banks for e.g.: staffing,
human resource, security, facility management, technologies, and logistics etc. Banks are
divided into different types, but the most common banks are commercial banks,
investment banks and Central banks. In most countries, the national government or central
bank regulates banks (Investopedia 2018). Central banks are the head of other banks that
functions as the chief and is responsible for the economic stability, controlling the
inflation and the monetary policy and commanding the money supply. The example of
central bank is Bank of Finland, Nepal Rastra Bank, Bank of Israel.
According to the sources, Euro countries have their own euro system The European
system of central Banks (ESCB) and national central banks (NCBs) consisting of 28 EU
member states. Commercial banks provide savings, withdrawals and provides short term
loans to individuals and small business entities. Commercial banks are mostly selected
because of its services that it provides such as saving accounts, mortgages etc. Some of
the examples of commercial banks 20 of Finland are Aktia Savings Bank, Nordea Bank,
OP corporate Bank, Danske Bank etc. Investment banks are the banks that is concerned
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to provide corporate clients with assisting and underwriting with merger and acquisition
activity. Some of the examples from U.S. investment banks are: Invest Morgan Stanley
and Goldman sachs Group Inc (Investopedia 2018). Therefore, banks are the most
important part of economy that handles all the monetary system.
3.3 History of Banking
Along with civilization banks have their own long history prior to the existence
from 16th century (Lawson 1850, 14). According to William John Lawson (Lawson 1850)
In the golden age due to scarcity of commodities such as gold and silver, the value of
these commodities became high and their value were computed by weight, unit of quantity
then people started procuring them for various reasons. Then the bills of exchange were
invented to make the process easier in order to transmit the wealth safely from the banks
of Ganges to the shores of the Baltic (Lawson 1850, 36-37). Hence, then the advantages
of banking came into practice. Before the development of progress of banking then
established English money i.e. pounds or pence (Penny) it became the only coin in
England till long (Lawson 1850). Back in 6000 B.C barter system was introduced when
our ancestors used to exchange goods with different kinds of foods and materials.
Further, revenues of the church where bank credits, bank cheques and bank notes
had no existence and the whole system of monetary intercourse was rude and not perfect
then, after the establishment of Bank of England, the Exchequer became office of accounts
and control. In comparison which is now have become advanced and the banks have their
own way and system and they perform their tasks in a very official manner with the help
of professionals and advanced technologies (Lawson 1850). According to the source,
banks were established before 1600. The most famous Italian banks was the Medici bank
established in 1397 but the oldest existing bank of the world is Banca Monte dei Paschi
di Siena headquartered in Italy and it has been operating continuously since 1472 (Lawson
1850). 21
3.4 Types of Bank
There are some banks that work in multiple areas which might offer many kinds of
services such as business accounts, personal accounts as well as helps larger financial
markets in raising money. Different types of banks are central banks commercial banks
etc.
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 Central bank is a bank that is authorized to provide guidance and regulate the
banking system of a particular country. Central bank is responsible for managing
banking activity of all the banks inside the country. The task of central bank is to
maintain deposit accounts of other banks and provide loans as well as guidance to
the banks which are in need. It maintains record of government revenue and
expenditure. It also advises the government on monetary and credit policies.
Central bank decides the interest rates for bank deposits including foreign
exchange rates.
 Commercial banks are the banks that are mostly subjected to focus on the business
customers. for example; business related saving accounts. Businesses need more
complex services than the individuals. They provide various services related to
the dollar, euro amounts that has high number of transactions and is much larger.
Commercial banks accept payments from customers and manage cash flow and
use letters of credit to do business overseas (Pritchard 2018). However, nowadays
most commercial banks offer their services to consumers as well. Therefore, it
provides savings accounts, safe despite boxes, loads, credit cards etc. to people as
well.
 Retail banks are defined as the banks that is concerned with providing services to
the public people as their customers. These types of banks help in savings
accounts and providing credit cards, offering loans. They also have numerous
branch in many cities within the country. Retailed banks are similar to the saving
banks (Pritchard 2018)
 Investment banks helps in financial markets and business works. In case

whenever the business needs or wants to sell their debt to investors they usually
prefer investment banks (Pritchard 2018). Investment banks do not accept
deposits but assists companies which are involved in acquisitions.
 Credit unions are not exactly banks, but it is known as similar to banks, they are
also known similar to the Mutual banks. These types of banks are not for profit
organizations but owned 22 mostly by the investors. Credit unions offers less
identical or mostly products or services to the retail and commercial banks
(Pritchard 2018).
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 Online banks are exclusively online. They don’t have any physical locations or
branch where people can visit. For example: pay bills online, internet only banks
etc. (Pritchard 2018). Services are done through the internet.
3.5 Human Resources Metrics and Benchmarking of Bank
The strategic goals of the human resource management are to develop the policies
and practices that helps to produce the employee’s proficiency and behaviours in HR
(Dessler 2015, 105- 106). Metrics is the standard measurement of the organization’s
behaviour, activities and performance. HR metrics is the important way to evaluate the
quality and impact of the employee in an organization. Tracking Applicant metrics is
basically used in recruiting employees and measuring them. One of the good examples of
the Metrics measurement is the Authoria’s system. Metrics helps in reducing the
recruiting costs (Dessler 2015, 105-106).
The word ‘benchmarking’ is known as evaluating or comparing with the standard. As

a process, it can be compared into two process quantitative and qualitative. Thus,
comparison can be made between two separate organizations or between different
divisions within the organisation. Therefore, it is common for employer to compare the
HR metrics with another companies so that the company knows their performance and
competition in the business world (Roth 2012).
Bank is formed with two different factors that is internal and external pressures. Both
the pressures are equally important for the bank. With the challenging economy the
change in these both factors are noticeable. In another word, the change can be related to
the pressure of the internal and external factors (Roth 2012, 1-2).
Therefore, the operational excellence, improvement in workforce capability,

improving the future managers & directors and the growth of emerging markets
challenges the pressure on the growth of emerging markets (Roth 2012, 1). Internal and
external factors of bank (Adapted from Deloitte 2012)
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HR executives in banking organizations are considered in accomplishing cost

competitiveness in fluctuating financial market (Roth 2012). HRM focuses on delivering
equal services to both factors. HR must provide the instant support to the change in
organizations with the unexpected change in market conditions. From CEO to the
employees working in front line, dealing with the customers’ needs to be provided with
the excellent service similar to the customers’ expectations. The following things must be
taken into consideration such as developing product and channel with strategies,
managing global workforce, developing the strategic expansion, promoting operational
performance and developing the performance by new talent management approach.
The present situation of the banking and under HR assistance is very unpredictable
and underperforming because of the challenging world’s economy (Roth 2012, 2). With
changing HR policies and the change in organizations both the internal and external
pressures of banking organizations must compare high-performing companies to their
own to find out what makes them improved. HR metrics and benchmarking seems
preceding to the decisions making and illustrate the productivity of their employee in HR
through various options such as customer feedbacks, Surveys and change the HR policies
according to the changing market.
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3.6 Human Resource Management and Organisational Performance
The nature of the HRM performance link is traced by examining direct and indirect
relationship between individual HR practices (Darwish 2013, 13-18). The studies
however show that the specific HR practices can lead to the competitive advantage and as
a result can upgrade the organisational performance. In other words, a set of HR practices
can improve the performance of an organisation inadvertent and environment while it is
believed that HR practices will lead an organisation to the better performance in any
situation (Darwish 2013,13-18). HR practices refers to the training courses and
motivational programs which assist management in performing better tasks. An author
Darwish (2013), has discussed that whoever adopted the approach ‘bundle of practices’
should generate greater effects than the individual HR practices because it is discussed
that the whole is greater than the sum of its small parts or in another word it is argued that
the individual HR practices are finite to get competitive advantages for an organisations
(Darwish 2013, 13-18). Therefore, many researchers only agreed that practices will lead
to better performance for all types of firms, in terms of measurement of HR practices
(Darwish 2013, 13-18).
According to the research there has been both agreement and criticism is terms of
HRM and the performance. In the second research stream, indirect relationship between
HRM and performance, researches has criticised by arguing that both individual practices
and bundle of practices do not directly affect the organisation’s performance (Darwish
2013 13-18). There are two factors they are internal and external factors on HRM
performance relationship. Internal factors include employee satisfaction, research and
development, leadership, employee commitment, employee turnover and social climate
(Darwish 2013, 13-18). External factors can have considerable impacts on the company’s
performance.
In order to upgrade HRM performance for the organisational performance there is

none other than practicing HR activities for the long time with the better outcomes
resulting into the high competitive advantage. HRM activities must be followed to make
the work more efficient and effective. The first most important activity or HRM includes
staff recruitment, HR planning, 25 benefits to the employees, participation in different
training and motivational programs, decentralisation, opportunity for internal promotion,
autonomy, coaching and HR bundles for internal factors (Darwish 2013,19-18). HRM
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performance is performed for the competitive advantage of an organisation such as profit

in an organisation, customer satisfaction, increase in sales, market value, market share,
development of product and service, productivity and future investment.
External factors have two separate variables where is specific to an organisation

following the demand condition, its competitive environment and market structure
whereas the second one compose natural, economic, social, technical and political factors
etc. these does not vary from one organisation to another and they are visible to outsiders
(Darwish 2013, 17).
Moreover, there are certain things that work as a control variable for example, Level
of an organisation (size, age, technology, capital intensity etc. whereas the next thing is
an Individual’s level for example, employee’s age, gender, education lever, nationality
and job experiences). These are the variables that plays vital role in performing the HRM
activities for the best result (Darwish 2013, 16). We can take good example of a
commercial bank for example, OP has many small branches in various cities in Finland.
The HRM activities is interrelated with the HR performance because of the qualified staffs
with different age groups working in many parts of the country. The information flow,
HR planning and training leads employees to stay updated and work efficiently. As a
result, positive outcome leading to customer satisfaction. Employee satisfaction builds
trust and gives productivity of the bank.
3.7 Challenges of HRM
Globalization has made drastic change in the business world. Along with
company’s economy to the HRM, we could notice many changes and challenges.
Competition has grown up in accordance with technologies. Banking institutions and
many other organizations has faced both good and bad changes.
In comparison to both, international and national banks globalization.

Development in technologies, challenges and opportunities, are the common challenges.
HRM challenges are categorized into 3 categories.
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In the above figure three categorized HR challenges are multi-dimensional issues.

Environmental challenges are the external forces that can affect the performance of the
organization. Some of the environmental challenges are mentioned above in the figure.
Work force diversity falls under the environmental challenges. Along with the
globalization, Organizations are expanding, many people having different cultural
backgrounds, religions, ethnicity, gender, social status, age group etc. are working
together. The importance of diversity in an organization is to bring together the talents
and creative people inside an organization. In many Asian countries, high gender
inequality has been faced. Women employees are not treated same as the Men employees.
According to the given source Asian Development Bank (2011) women are earning 70
percent – 90 percent less of the male wage. However, cultural differenc create more
challenges because of the thinking of the person towards working life, treating women,
co-workers and adapting changes. In working life people have been facing many gender
inequalities, racism, discrimination in terms of positions and many more issues in the
work place.
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The development of technology has been started from the beginning of 21st century.
The field of Telecommunication and Computer are emerging significantly (Zkjadoon
2015). Therefore, with the changing technology the person with good technological skills
are always in high demand. However, while recruiting staffs HR faces difficulties to find
the right skilled person. Additionally, old employees must be trained to keep updated with
all the new technologies. Not having technological skills could be challenges to
employers. Additionally, globalization and increase in competition in foreign and
domestic businesses are getting global and highly productive. Therefore, the challenge is
quite tough for the HRD to update employees with the new technology skills (Zkjadoon
2015).
Organizational challenges are the internal factors that can be controlled by

management inside the organization. HRM can be challenging for both small and big
businesses. However, it can be more challenging to those small businesses that doesn’t
have HRD to commit for. While in big organizations HR managers duty is to manage
workforce and be prepared for the future challenges. HR managers are aware about the
challenges beforehand for which they have already prepared themselves. There are lots of
organizational challenges that might affect workforce of an organization in long run
(Zkjadoon 2015). Some of them are: unstable employment laws, rules and regulations,
change in management, training and development, complying new technologies, cost
controlling, improving quality, retention and recruitment of employees (Zkjadoon 2015).
Being updated to changing employment laws is a necessary task for the business
owners. Each country has their own local, state and federal laws and each and every
businesses are categorized according to their service and sectors. Therefore, laws are also
made differently according to their different categories, size or structure, service and
work. The EU has its own law compared to other Asian countries. Every organizations
are obliged to follow the law to remain in the business and for the competitive advantage.
Similarly, rules and regulations must be followed by both organization and workforce to
maintain the position in challenging businesses world.
Training and development of the workforce is the common problem faced by HR in

many companies. With the changes in work performance and advancement in
technologies, old workforce needs changes and development in themselves. Employees
will learn new skills and become more productive and loyal. New technologies will
improve the work performance (Atlas staffing 2019).
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Recruitment is the most challenging and difficult task for HR managers. Hiring the
right person for the right task and in the right time is quite difficult because it is impossible
to know if a candidate is good or not. It is really difficult to know the person’s loyalty
until they have worked in a company for some period. Similarly, retaining talented
employees is costly because of the competition and huge search of talented employees
(Atlas staffing 2019).
Individual challenges are related to employees themselves individualistically.

Organization is fully depended on the manpower. The measurement of output is related
to greater output, higher productivity. That is why motivation and communication inside
an organization plays an important role in an individual’s work performance. Some of the
individual problems are: Empowerment, ethics and social responsibility and brain drain
(Zkjadoon 2015).
Empowerment of an employee refers to the individual control over their own work.
Empowerment gives employees an independence of decision making and taking
responsibility and control on their work. In conclusion, employee empowerment improves
and increase the productivity and makes employee’s responsible (Zkjadoon 2015).
Ethics and social responsibility are both important part for an organization. Ethics
can be defined as a moral principles or values of an individual whereas social
responsibility refers to the legal responsibilities. Ethical issues in an organization are;
diversity, job security, fair pay, confidentiality. Social responsibility issues are:
prioritizing health and safety issues, providing additional trainings, benefits, counselling
etc. (Zkjadoon 2015).
Nowadays, the issue of brain drain is most common because of certain things like
money and good facilities. In a business world there are always competitors besides. Brain
drain can be defined as a situation where people leave particular place, country as well as
their own profession for another place, country and profession that gives them better
payment and good lifestyle 29 (Zkjadoon 2015). It is common to hear higher-level
employees leaving for better remuneration and these things are becoming crucial issue in
the higher technology companies (Zkjadoon 2015).
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3.8 Practices of HRM Strategy
Strategy refers to planning about the future (Kearns 2010, 1). The establishment of
any business organizations is to achieve a certain goal. For that reason, there is always
some strategic plans made by executives to reach that goal. In a business world it is known
as competitive advantage. Every organizations profitable or non- profitable, large or
small, these all have some objectives to achieve through the well-planned strategies. Plans
and strategies are made for future achievements.
In a business world where there are many competitors, Strategies works as a

company’s strength corresponding to that of competitors (Kearns 2010, 1). People
management or Human management is not an easy task. There should be lots of
experiences with thousands of people before working in HRM because each and every
individual are different. Similarly, it is a very tough task to make people work according
to strategies and plans. Consequently, different serious issues yield in an organization
when strategy should be implemented to the people. Thus, human behavior in terms of
future strategy is most of the time based upon the predictions. And as we know that
predictions are least based upon the information’s or accurate analysis, yet it is not always
sure that organizations will enjoy the supreme level of success (Kearns 2010, 1- 2). As a
fact, in 2008-2009 global credit crunch many experts such as investment analysts,
financial directors, economic professors came to have a questionable situation when the
prediction went wrong (Kearns 2010, 2.) One wrong strategy for a company is always a
wrong step.
HR strategy is mainly focused for the welfare of the Human resources and
organization’s success. Business strategy have to have fully unified HR strategy such as
Corporate Social Responsibility (CSR), primary influence on the individuals or group of
people, diversity and business ethics for the development (Kearns 2010, 3-5). While
devising the HR strategy plan making it into the implementation is the tough job because
of uncertainty. HR- business strategy not only works with the company’s plans, but also
business ethics.
Motivation is the key to a successful HR strategy. While developing the strategic

plan HRD should always focus on people and their needs. Competitive salaries, promotion
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opportunities, open-door policy, clear and regular communications and training and
development are some to the tools that helps to maintain the strategic HR practice
(Poppulo 2018)
3.9 The following are some basic limitations:
 Uncertainty of future
The future of all business organizations largely remains uncertain. This is because many
social, political, technological and financial factors can affect their functioning. These
factors end up affecting HRM as well because they dictate employment.
 Problems of surplus staffing

Whenever an organization is over-staffed, HRM provides solutions like termination of
excess employees, VRS, etc. This, in turn, negatively affects existing employees as the
threat of job termination looms on them all the time. Such negative psychological
pressures can generally make employees inefficient.
 Conservative attitudes of top-level management

The top-level management of many organizations often possesses a conservative attitude
in functioning. It can be reluctant in changing its own ideas and beliefs to accommodate
the quirks of employees. This can create hindrances for managers in employing HRM
practice should have the support of top level management. The change in attitude at the
top can bring good results while implementing HRM. Owing to passive attitude at the top,
this work is handled by personnel management people. Unless there is a change in
approach and attitude of top management nothing remarkable will happen.
 Time-consuming
HRM generally requires managers to collect all sorts of information from employees with
respect to their functioning. Collecting all this data from all departments can be highly
time-consuming.
 Expensive
In order to facilitate an organization in functioning effectively, HRM suggests solutions
like training, VRS, bonus, perks, etc. Therefore, implementing HRM solutions can be
highly expensive too.
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 Improper Actualisation:
HRM should be implemented by assessing the training and development requirements of
employees. The aspirations and needs of people should be taken into account while
making human resource policies. HRM is actuated half-heartedly. The organising of some
training programmes is considered as the implementation of HRM. With this,
management’s productivity and profitability approach remains undisturbed in many
organisations.
 Inadequate Information:
Some enterprises do not have requisite information about their employees. In the absence
of adequate information and data base, this system cannot be properly implemented. So
there is a need to collect, store and retrieval of information before implementing human
resource management.
In many organisations, even the professionals misunderstand HRM as synonymous with
HRD. Some class room training programmes are generally arranged, which are called
HRD programmes. These programmes are understood as human resources management.
Such casual class room programmes are not the actual HRM programmes.
Even a well planned and executed HRD programme is not HRM. HRD is only a part of
HRM which is an integrated approach to management. Undoubtedly, human resource
management suffers from such limitations. But the impact it has made on the managerial
effectiveness has been spectacular wherever it was introduced. Actually speaking a real
need exists in every Indian organisation for an HRM approach.
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3.10 FACTORS AFFECTING ETHICS IN BANKS
 The study found that younger employees had a higher level of ethical
consciousness than older employees. In addition, it was observed that the longer
one worked for an organisation, the more one is likely to take job security as a
priority; this could lead to overlooking or rationalising unethical behaviours
 Trust & transparency of business, freedom of choice & accountability.

 Lack of quailed bankers, breaking of guidelines, lack of proper ethics training,
frauds & other malpractices
 Issues idented for focus – social banking, green banking, ethical banking, global
banking & agro banking
 Growing presence of competition, meeting high expectations & demands of

customers, complexities of bank operations
 self-interest, unethical corporate administration, money laundering
3.11 ETHICAL LAW IMPLEMENTED IN BANKING SECTOR
Article 1 (General Provisions):
The basic purpose of these Principles of Banking Ethics intended to be applied in all kinds
of affairs and relations of banks with each other or with their customers, shareholders and
employees, and with other organizations is to assure sustainability of the existing
reputation and reliability of banking profession in the public, and to enhance and maintain
such reputation and reliability feelings termed as professional dignity, and to protect and
maintain stability, consistency and confidence in banking sector. For the purposes of these
Principles, the word “bank” refers to the Association-member banks, and the word
“Association” stands for both the Banks Association of Turkey and the Participation
Banks Association of Turkey.
Article 2 (Legal Grounds)
These Principles of Ethics are issued in reliance upon the provisions of second paragraph
of Article 75 and subparagraphs (c) and (e) of Article 80 of the Banking Law no. 5411.
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Article 3 (General Principles)
Not only for the purposes of protecting the rights and interests of savors, and assuring
confidence, stability and consistency in fiscal markets, and ensuring effective operation
of deposit, credit and payment systems, and preventing transactions and practices which
may lead to material damages and losses in economy, but also with a view to supervising
the public benefits and social utility and protecting the environment, banks are required
to act in tandem with the general principles outlined hereinbelow.
 Integrity:
 Neutrality:
 Reliability:
 Transparency:
 Supervision of Public Benefits, and Respect to Environment:
 Fight Against Laundering of Proceeds of Crime and Combat Against Financing
of Terrorism:
 Information Abuse:
Article 4 (Relations With Public Entities and Organizations)
In their relations with public entities and organizations, the banks act in line with the
integrity, accountability and transparency principles, and take care of disclosure of all
information, documents and records as may be requested for audit and control purposes
pursuant to the applicable laws accurately, completely and timely.
Article 5 (Exchange of Information)
Exchange information of every kind with each other accurately and systematically to the
extent permitted by the applicable laws
Article 6 (Personnel Movements)
Refrain from all kinds of actions and practices that may pave the way for unfair
competition in employment-related matters; and Save for the freedoms of contract and
movement in employment pursuant to the Labor Act and other relevant laws and
regulations, elaborate to ensure that their employment does not cause any interruption in
services of other banks; and 4 Act honestly and objectively when providing information
requested about their ex-employees by other banks; and Take all kinds of actions in order
to ensure that their employees who have previously worked in other banks perform their
job duties in compliance with their secrecy and non-disclosure obligations as per the
relevant banking regulations
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Article 7 (Competition)
Consider the competition as a legitimate race among all relevant entities operating in the
banking sector which assures freedom in economic decisions, and to this end, in their
activities and operations conducted within free market economy, beside safeguarding
their own interests, they abstain from statements and behaviors causing unfair
competition, within the frame of the principles of:
a) sustainability of general trust in banking industry;
b) endeavoring for development of banking industry;
c) maintenance of marketplace atmosphere required by competition laws.
This principle is not only valid for banks as legal entities, but also applicable on statements
and behaviors of employees of banks. While providing services to their customers, banks
cannot offer or provide any benefits to an employee of another bank.
Article 8 (Advertisements and Promotions)
Both in their statements and disclosures pertaining to their financial situation, and in their
advertisements and announcements for publicity, promotion and marketing of their
banking products and services, they comply with the laws and regulations and public
morality, and behave honestly and realistically, and abstain from any kind of behaviors
which may harm the reputation of banking profession; and In their advertisements,
statements and promotions, do not ever use any expressions, terms or phrases denigrating
other entities and organizations or products and services of other entities and
organizations.
Article 9 (Information of Customers)
Give accurate, consistent, complete and timely information in compliance with the
limitations stipulated by laws at each stage and in all aspects of their service relations,
with regard to all kinds of products and services offered to their customers
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Article 10 (Customer Secrets)
Are under obligation to keep in strict confidence all kinds of information and documents
relating to their customers, except for persons and entities clearly authorized by laws to
request information and documents
Article 11 (Service Quality)
Consider and treat the service quality as a condition precedent of satisfaction of the
customer needs, demands and expectations by high-quality services, and try to ensure that
technological infrastructure and qualified human resources, as two basic elements of this
concept, are used in accordance with the goal of continuous development of service
quality; and Provide services of the same quality and same level to all of their customers;
provided, however, that determination of target markets and differentiation of
organizational structure and product range according to the target audience, or showing
different approaches to customers of separate risk groups cannot be interpreted or
construed as a discrimination among or a categorization of customers
Article 12 (Customer Applications)
Establish an efficiently and effectively operating system capable of responding to all

kinds of questions of their customers with regard to services, and inform their customers
about that system; and Inquire the causes of their disputes and conflicts with customers,
and take the required actions and measures for non-repetition thereof, and correct
improper practices causing complaints by also remedying the customer dissatisfaction,
and take the required actions and measures for non-repetition thereof
Article 13 (Security)
Accept that the term “security” does not only cover the precautions and measures aiming
at protection of the bank’s service locations and premises against all kinds of attacks and
offences, but also extends to prevention of all kinds of breaches that may technically cause
harm to services offered to customers in the banking sector; and Take all technical and
legal actions of any kind aimed at security of transactions and information in all kinds of
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service atmospheres due to changing service channels and services developing parallel to
technological advancements and electronic banking, and keep their customers informed
about the actions taken by them and the actions required to be taken by their customers.
Article 14 (General Qualifications and Employees)
Banks are expected to employ only persons having the knowledge, know-how and
responsibility feeling required for their job duties. Banks cannot recruit any personnel
who do not bear the legal qualifications sought for by the applicable laws and particularly
the Banking Law no. 5411.
Article 15 (Recruitment and Career Development)
Banks attempt to offer equal opportunities to all of their employees both in recruitment
and in career development, without any discrimination among employees. Departing from
the principle of best management of human resources, they provide all opportunities to
their employees for their access to the knowledge level required by contemporary world
and banking profession. In professional development and promotion of their employees,
they take into consideration not only knowledge, skills and personal achievements, but
also commitment to the Principles of Banking Ethics and diligence in implementation of
the said principles.
Article 16 ( Principles of Representation and Work Environment )
They issue and impose internal regulations requiring their employees to be clean and
well-groomed in conformity with reputation of banking profession and conscious of
representing the bank. They take actions for enhancement of motivation of their
employees in all service units, and for provision of services under better conditions, and
ensure the creation and maintenance of a healthy and safe work environment. They take
all kinds of measures in order to prevent any kinds of harassment, and especially
psychological harassment (i.e. mobbing), and in the case of such accusations, carry out
the required investigation thereon. If the investigation reveals a psychological harassment
(i.e. mobbing), they take all remedial measures of any kind, and apply all possible
sanctions to the extent allowed by the applicable laws.
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Article 17 ( Working Hours )
Banks show maximum effort in order to employ an adequate number of employees in

line with the workload, and to organize their employees in such manner to get the
maximum efficiency during the normal working hours, and not to go beyond the normal
working hours, and if and to the extent overtime work is needed, to show respect to and
safeguard the rights of their employees, and to make sure that their employees regularly
take their annual leaves.
Article 18 ( Rights of Employees )
Banks do their best in order to recognize and provide timely and completely all rights of
their employees arising out of the Labour Act and other applicable laws and regulations,
and particularly the prevention of unfair termination of employment contract.
Article 19 (Professional Rules and Ethical Principles To Be Followed By

Bank Employees)
Bank employees are obligated:
 To comply with the pertinent applicable laws in the course of performance of their
job duties.
 To keep their customers informed about benefits and risks of products and
services offered to them
 To provide neutral and fair services to customers buying the same service
 Not to disclose any information about banks or their customers, which come to
their knowledge due to their positions and duties, to any person other than the
authorities and bodies clearly authorized by the laws to request such information
 Not to lead to any loss of reputation of the bank through their works and
behaviours
 Not to directly or indirectly engage in any business operations which require them
to be considered and treated as a merchant or an artisan
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 Not to breach and violate the justice, honesty, integrity, reliability and social
responsibility principles
 To communicate with other employees carefully and respectfully and enter into
cooperation with them for joint purposes or motives, in the course of performance
of their job duties
 Not to use the bank’s assets, properties and resources inefficiently and for non-
intended purposes
 Not to derive any personal benefits for themselves or for others out of their own
work environments or their customers’ facilities by using their job positions and
duties
 To immediately refuse, and report to superiors and authorized bodies, any offers
or propositions of personal benefits
 To direct potential customers first and mainly to their own bank
 To avoid entering into non-ethical relations with customers, such as indebtedness,
personal guarantee and opening of joint accounts
 Not to accept any gifts contrary to customs and usage from existing or potential
customers
 To be accountable with regard to their job duties during performance of banking
services
 Not to assume any duty in any other private or public entity without a prior
consent of their bank, except for associations, foundations, cooperatives and
similar other organizations
 Not to cause harm to reputation of banks and other financial institutions, and not
to attempt to denigrate and humiliate their business partners, shareholders,
employees and customers, in media and social media, profiles, accounts or
postings, by using their own identity, or by concealing identity or using
misleading identities
 Not to take actions binding on their bank, and not to make deceptive and untrue
statements, by exceeding their powers in the course of performance of their duties.
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Article 20 (Development of Principles of Banking Ethics)
Banks may at any time submit proposals to the Association’s Board of Directors for
development and if required, amendment or revision of these Principles of Banking
Ethics.
Article 21 (Right and Duration of Application)
Banks, bank employees and bank customers are entitled to file an application. However,
an application cannot be filed on the ground of breach of the Association’s Ethical
Principles through acts and behaviours regulated and sanctioned by the Banking Law and
other pertinent laws, also including disputes pending in or already resolved by juridical
authorities and courts. Applications not filed within one year following the date of
occurrence of the underlying event are forfeited.
Article 22 (Application Procedures)
Applications are filed in writing to the Association. Applications clearly contain all
details, information and documents regarding the alleged breach of these Ethical
Principles, and which article of these Ethical Principles as alleged to be breached is also
stated in the petition for application. The allegation of breach, being the subject matter of
application, is indicated concretely by reference to person, time and location.
Article 23 (Acceptance and Investigation of Application)
The applications are checked by the Association as to description, essence, information

and documents. Applications deemed unfit in terms of description, essence, information
and documents are not processed, and this is duly notified to the applicant clearly and
understandably, together with rationale of refusal. Applications deemed fit are escalated
by the Association to the Association’s Ethical Commission. Composition and working
procedures and principles of the Association Ethical Commission are determined by the
Association’s Board of Directors.
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Article 24 (Actions Regarding Decisions of Association Ethical

Commission)
The Association Ethical Commission may either not find any breach of Ethical Principles
with regard to a processed application, or decide to escalate and present such application
to the Board of Director. Decisions of the Association Ethical Commission as to
applications determined not to be in contradiction with the Ethical Principles are
communicated to the relevant sides in writing.
Article 25 (Determination and Sanctions of Breaches)
With respect to applications escalated by the Association Ethical Commission to the

Association’s Board of Directors, the Board of Directors decides whether these Ethical
Principles are actually breached or not, and such decision is communicated in writing to
sides. If the Board of Directors determines a breach of the Ethical Principles, those who
breach these Ethical Principles are reported to the Banking Regulation and Supervision
Authority, and the provisions of third paragraph of Article 81 of the Banking Law no.
5411 are applicable on them.
Article 26 (Enforcement)
These Principles will be enforced by the Secretariat General of the Association.
Article 27 (Effective Date)
These Principles of Banking Ethics shall become effective as of the date of publishing.
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CHAPTER 4: RESEARCH METHODOLOGY
4.1 INTRODUCTION
Research methodology is a method of collecting the data or information to give meaning

to the research. The term research methodology is formed by two different words
‘Research’ and ‘Methodology’. The definition of research varies from person to person.
As a process research is a series of activities that are linked with starting from the
identification of the topic or the problem followed by hypothetical questions, data
collection techniques, processing and analysis, selecting units of study and collecting data,
analysing the hypothetical questions and finally presenting all the process in the form of
a report. However, methodology is defined as a system of methods used for the study.
According to Creswell (2014, 31) research method is the process of data collection,
analysis and interpretation.
According to the Business Dictionary, Research methodology is defined as the process of
collecting information by the help of using various methods such as interviews, journals,
surveys, books, etc. for generating facts and figures and also improving the decision-
making process in business world (Business Dictionary 2018). Research methodology
helps to develop the decision-making skills and gives more knowledge of scientific
attitude and disciplined thinking.
Different types of research methods are used in conducting research amongst which
qualitative and quantitative research are the two widely used research methods.
Quantitative research is expressed and measured in terms of quantity. Statistical data is
prepared in a numerical order. In this method, questionnaire forms are prepared, and
respondents are asked to fill up the forms to make the precise measurement with the help
of questionnaire. This research is done by comparing the trends and focusing on daily
life experiences.
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4.2 METHOD USE FOR RESEARCH METHODOLOGY
 Methodology used in the introduction part is the collection of raw data and primary
data.
 Primary data collected through the employee of a bank
 Convenient sampling method is used select respondants
 For analysis interpretation suitable statical technique are used like graph, tables
etc
4.3. QUALITITAVE RESEARCH
 Qualitative research method is based on the introductory research.

 This method is used to get the information in more detailed way concerning with
people’s thoughts, opinions motivations and reasons.
 The result is not measured in numeric or statistical order.
 This method focuses on discussions with targeted group of people, interviews with
participants or an individual.
 This research method is very effective because it reveals the ethical part of any
problems or cases.
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CHAPTER 5 : DATA INTERPRETATION
5.1 INTRODUCTION
 What Is Data Interpretation?
 Data interpretation refers to the process of using diverse analytical methods to review
data and arrive at relevant conclusions. The interpretation of data helps researchers to
categorize, manipulate, and summarize the information in order to answer critical
questions.
 The importance of data interpretation is evident and this is why it needs to be done
properly. Data is very likely to arrive from multiple sources and has a tendency to
enter the analysis process with haphazard ordering. Data analysis tends to be
extremely subjective. That is to say, the nature and goal of interpretation will vary
from business to business, likely correlating to the type of data being analyzed. While
there are several different types of processes that are implemented based on individual
data nature, the two broadest and most common categories are “quantitative analysis”
and “qualitative analysis”.
 Yet, before any serious data interpretation inquiry can begin, it should be understood
that visual presentations of data findings are irrelevant unless a sound decision is made
regarding scales of measurement. Before any serious data analysis can begin, the scale
of measurement must be decided for the data as this will have a long-term impact on
data interpretation ROI. The varying scales include:
 Nominal Scale:
Non-numeric categories that cannot be ranked or compared quantitatively. Variables

are exclusive and exhaustive.
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 Ordinal Scale:
Exclusive categories that are exclusive and exhaustive but with a logical order.
Quality ratings and agreement ratings are examples of ordinal scales (i.e., good, very
good, fair, etc., OR agree, strongly agree, disagree, etc.).
 Interval:
A measurement scale where data is grouped into categories with orderly and equal
distances between the categories. There is always an arbitrary zero point
 Ratio: contains features of all three.
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1. Age group
Age Group No. of Employee
22-26 37
27-25 10
26-45 10
As per the above pie diagram there are 37 people form age group 22-26 i.e
62.7%, 10 people from age group 27-35 and 10 people from age group 36-45.
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2. Gender
Gender No. of employee
Male 42
Female 15
As per the above pie diagram, there are 42 Males working in bank i.e 71.2% and
15 females working in the bank i.e 25.4%.
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3. How good is your HR department?
Remark No. of Employee
Poor 3
Good 29
Very Good 14
Excellent 9
No 2
As per the diagram , the responses for the above question are
Among 57 employee only 9 employee i.e.15.8% were fully satsified with their HR
Department and were as 14 employee i.e 24.6% , Good is 50.9%.
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4. Do you get salary on time ?
Yes No
54 1
As per the pie diagram ,
the responses for the above question are 54 Employee get the salary on time i.e 96.4%
and 1 employee don’t get salary on time
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5. Does the bonus and incentive are given by the bank on the time ?
YES NO
50 7
Out of 57 responses the 50 employee get salary and incentives on time i.e 87.7% where
as 7 employee i.e 12.3%Don’t get salary and incentives on time
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57
6. Does your HR dept has/had ethical HR Policies?
YES NO
54 3
Out of 57 responses the 54 employee working in bank their HR Department follow ethical
policies i.e 94.7% where in 3 bank where the employee working their human resource
department follow the less ethical policies
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7.Does all the rules and regulations are followed strictly?
YES NO
50 4
Out of 54 responses the 50 employee Working in bank at their place rules and regulation
are followed i.e 92.6% and were as 7.4% 0f banks don’t follow rules and regulation
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8.What issues as an employee have /had you faced with your HR

department?
Out of 54 responses following are the issues faced by the employee by their human
resources department of bank which are follows:-
ISSUED FACED NUMBER 0F EMPLOYEE
Compliance with laws and 8

regulations
Healthy and safety 4
Change management 14
Landing top management 5
Retention 6
Monitoring productivity and performance 13
Compensation management 4
According to given pie diagram we come to know that most of the 25.9% of bank
employee faced the problem of change management which has been highlighted with red
colour
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9. How often does you Bank's HR department follows ethics?
Remark No. of Employee
Situationally 10
Frequently 17
Occasionally 5
Allways 23
According to given pie diagram we come to know that how does the bank behave
depending upon the situations and how they follow the ethics most of the bank human
resources department react and follows ethic always i.e 41.8%
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10. How satisfied you were with the ethics followed by your HR dept in
management?
According to given Graph we come to know that the

Y axis represent the satisfactory level of the employee
Among my 55 response collected by bank employee only 17 i.e 30.9% of employee are
fully satisfied with their human resource department and rest you all can know from the
above given graph
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11. How good was your HR dept is/was in taking decision on an

conflict?
This question is basically personal response type question among 41 response here are
the few best response which has been given by the bank employee of different bank
working in Mumbai and this data has been collected between region between Dahisar
to Andheri which are as follows:-
Employee name Brinda Dodie working in state bank of India (SBI)She says that her
HR Dept provide many policies and take fair decision regarding the rewards and
incentives
Employee name Surya Nair working in Axis bank she says that her HR Dept is good at
Balancing and clearing the problem easily
Employee name Sandeep Sharma working in state bank of India (SBI) he says that his
HR Dept reacts Depending upon situations
And reaming employee have also shared their views and opinions in positive manner as
well as in negative way too.
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CHAPTER 6 : SUGGESTIONS & RECOMMENDATIONS
CONCLUSION:-
We can conclude that the objective of the project was to study the problem faced by the
employee and and to study the ethical human resource mangement strategies.
On the basis of survey conducted from employee. We come to know that employee faced
the problem due to Change Mangement and Monitoring productivity and performance.
As you can refer to above data and from the above data we also come to know that how
does bank react depending upon situation to follow their ethics and also rules and
regulations we come to know from survey that most of banking employee are fully
satsifed with their HR Department.
On the basis of review of literature we can conclude that the common thread and
observation in most of studies focuses on customer satsifaction in bank related to the
ethical practice.Customer feel more secure and comfortable in entrusting their hard
earned-money to those bank were they feel safe.In the addition I had come to know that
the main reason of bank failure is non-addherence or lack use of code of ethic.
Therefore according to me employee is equally responsible to express his or her
excpection and need from the top mangement and HR Department
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 SUGGESTION & RECOMMENDATIONS
 According to me human resource department should maintain transperancy

between employee and manger regarding changes
 Also try to come out with new policies for the employee benfits scheme should
be introduce
 There should be growth opportunity for young employees
 They should get recogniation or recognized by the top mangement of banking
sector
 The employee facing any problem or there is any kind of missunderstamding
among the employee and employer their should be good employee engement
team
 Fair judgement should be provide to employee working in your banking
organization
 They should get equal opportunity to share their view and opnion in decision
making
 According to me banking sector should have effective HR Team
 They should be aware about changes brought in banking sector
 They should be encourage to participate in activities carried out by the bank it
can be any way for example bank can organized the sport events,career
consuelling program etc.
 Therefore, it is suggested that for long-term profitability and higher customer
satisfaction, banks should focus more on following the code of conduct, thus
improving ethical practices.
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 BIBLIOGRAPHY AND ANNEXUERS
Bibliography
 A Alawiye-Adams, A. (Jan 2018). Ethics and Professionalism in the Banking Industry, a
Case Study of Nigerian Banking Environment.
 Dogra, A. D. (2014). Sustainablity and Ethical Banking: A Case Study Of Punjab National
Bank. Mumbai.
 Gupta, P. (2019). The role of Business Ethics and Ethical Issues of Marketing in Banking
Industry in India. Meerut.
 Joshi, D. K. (May 2011). A Study of Social and Ethical Issues in Banking Industries.
Udaipur.
 Relano, M. p. (July 2014). Banking with Ethics: Strategic Moves and Structural Changes
of the Banking Industry in the Aftermath of the Subprime Mortgage Crisis. Europe:
Journal of business Ethics.
 Shetty, D. P. (2014). Case Study of Yes Bank. banglore.
 Tripati, M. (2019). Impact of Corporate Social Responsibility on Performance of Public

Sector and Private Sector Banks in India. Delhi: From the director desk,83.
 WEBSITE LINK
 https://www.researchgate.net/publication/262144664_A_Study_of_Social_and_Ethica
l_Issues_in_banking_industry
 https://www.researchgate.net/profile/Vijay-Joshi-
14/publication/262144664_A_Study_of_Social_and_Ethical_Issues_in_banking_industr
y/links/02e7e536c68c515784000000/A-Study-of-Social-and-Ethical-Issues-in-banking-
industry.pdf
 https://link.springer.com/article/10.1007/s10551-014-2274-9
 http://indusedu.org/pdfs/IJREISS/IJREISS_2482_53223.pdf
 https://www.researchgate.net/publication/350037170_Ethics_and_Ethical_Practices_i
n_Banks_A_Review_of_Literature
 https://www.researchgate.net/publication/262144664_A_Study_of_Social_and_Ethica
l_Issues_in_banking_industry
 https://www.tbb.org.tr/en/Content/Upload/dokuman/136/Bankacilik_Etik_Ilkeleri.pdf
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 ANNEXURE: - GOOGLE QUESTIONER
A study of Ethical Human Resource Management in Banking

Sector
1.Name
________________
2.Age group
o 22 to 26
o 27 to 35
o 36 TO 45
3.Gender
o MALE
o FEMALE
4.Contact
_______________
5. In which Bank do you work or had worked for?

_______________
6. How good was your HR dept?

o Poor
o Good
o Very good
o Excellent
7.Do you get your salary on time ?

o Yes
o No
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8.Does the bonus and incentive are given by the bank on time ?
o Yes
o No
9. Does your HR dept has/had ethical HR Policies ?

o Yes
o No
10.How good was your HR dept is/was in taking decision on an conflict?

_____________________
11. Does all the rules and regulations are followed strictly?
o Yes
o No
12. What issues as an employee have /had you faced with your HR department?
o Compliance with laws and regulations
o Change management
o Compensation management
o Landing top management
o Retention
o Monitoring productivity and performance
13. How often does you Bank's HR department follows ethics?

o Situationally
o Frequently
o Occasionally
o Always
14. How satisfied you were with the ethics followed by your HR dept in
management?
1 2 3 4 5 6 7 8 9 10
O O O O O O O O O O
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A STUDY OF ETHICAL HUMAN RESOURCE

MANAGEMENT IN BANKING SECTOR

Dr. HOMI BHABHA State University for partial completion of

Master’s in Commerce (Banking & Finance)

Under the Faculty of Commerce

Under the Guidance of

DR. KHUSHPAT JAIN SIR

SYEDENHAM COLLEGE OF COMMERCE AND

1 CHAPTER 1: INTRODUCTION 5-19

2 CHAPTER 2: REVIEW OF LITERATURE 20-24

3 CHAPTER 3: CONCEPTUAL FRAMEWORK 25-47

3.8 Practices of HRM Strategy 36

3.9 The following are some basic limitation 37

3.10 Factors Affecting Ethics in Bank 39

5 CHAPTER 5: DATA INTERPRETATION 50-62

6 CHAPTER 6: Suggestion & Recommendations 63-68

SYDENHAM COLLEGE OF COMMERCE AND

Name and signature of

Seal of the Guiding teacher

I would like to acknowledge the following as being idealistic channels and

I take this opportunity to thank the University of Mumbai for giving me

I would like to thank my Principle Dr. MADHURI KAGALKAR for

I would also like to express my sincere gratitude towards my project guide

 Human resource management (HRM or HR) :-

as payroll and benefits administration, but due to globalization, company consolidation,

The development of employee commitment through employee involvement and

 Performance management and talent spotting: The HR management remains

 Achieve organizational goals

The proper connection between individuals is a must to ensure productivity. To make HR

 Training and Development

Effective employment is highly dependent upon the training practices. Providing

Employee experience needs to be carefully attended. Keeping your employees retained

 Data and compliance

An HRMS system is a new-age employee experience software and payroll system. It

 Periodic History of Human Resource Management

934). Technological shifts, computers, telecommunication begin to come into more

1.1 Objectives of the study

 To study the ethical human resource management in the banks.

1.2 Methodology use to collect data

1.3 Scope of the study

 HRM in Personnel Management:

It also includes performance appraisal, developing new skills, disbursement of wages,

 HRM in Employee Welfare:

It also relates to supervision, employee counselling, establishing harmonious relationships

 HRM in Industrial Relations:

1.4 Limitations of the study

Limitation of the study:

1. Dr. K.A. Goyal and Vijay Joshi

2. Journal of Business Ethics

4. Sustainability and Ethical Banking: A Case Study of Punjab

6. Ethics and Professionalism in the Banking Industry, a Case Study of

7. A STUDY OF SOCIAL AND ETHICAL ISSUES IN BANKING

CHAPTER 3 : CONCEPTUAL FRAMEWORK

3.1 Principles of ethical HR

 Fairness and Justice:

 WHAT IS BANKING SECTOR IN GENERAL ?

3.2 The definition of bank

3.3 History of Banking

3.4 Types of Bank

 Investment banks helps in financial markets and business works. In case

3.5 Human Resources Metrics and Benchmarking of Bank

The word ‘benchmarking’ is known as evaluating or comparing with the standard. As