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A Study on Training and Development in Public Sector Banks

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International Journal of Management and Social Sciences Research (IJMSSR)
Volume 3, No. 1, January 2014
A Study on Training and Development in Public Sector Banks
Kavita Rani, Research Scholar, Kurukshetra University, Kurukshetra
Diksha Garg, Research Scholar, Kurukshetra University, Kurukshetra
ABSTRACT:
The process of financial development in India has hinged
effectively on the development of banking system. The
Indian banking industry is continuously going through a
process of transformation since nineties, due to the
introduction of Liberalization, Privatization and
Globalization (LPG), Information and Communication
Technology (ICT). The first objective of present paper is to
study existing status of training and development
programmes banks for their employees. The second
objective is to examine the effectiveness of training and
development programmes for employees in fulfillment of
their duties. Present research paper is of descriptive type
and based on primary data collected through
questionnaire filled by the bank employees. The present
paper explained some suggestions to enhance training and
development strategies, and to cope up with the existing
challenges in the wake of severe competition in the
training and development. The findings of the study
suggest that training and development is inevitable and
unavoidable in any sector.
Keywords:
Training and Development, Banks, Human Resource
Management, Employees.
TRAINING AND DEVELOPMENT
Training: The aim of any training programme is to
provide instruction and experience to new employees to
help them reach the required level of performance in their
jobs quickly and economically. For the existing staff,
training will help develop capabilities to improve their
performance in their present jobs, to learn new
technologies or procedures, and to prepare them to take on
increased and higher responsibilities in the future.
Development: Employee Development Programs are
designed to meet specific objectives, which contribute to
both employee and organizational effectiveness. There are
several steps in the process of management development.
These includes reviewing organizational objectives,
evaluating the organization’s current management
resources, determining individual needs, designing and
implementing development programs and evaluating the
effectiveness of these programs and measuring the impact
of training on participants quality of work life.
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ISSN: 2319-4421 33
Definitions of Training and Development
According to the Michel Armstrong, “Training is
systematic development of the knowledge, skills and
attitudes required by an individual to perform adequately a
given task or job”.
According to the Edwin B Flippo, “Training is the act of
increasing knowledge and skills of an employee for doing
a particular job.”
Dale S Beach defined “Training is usually considered as
the organized procedure by which people gain knowledge
and increase skill for a definite purpose”
Differences between Training and Development-
Employee training is different from management
development or executive development. While the former
refers to training given to employees in the operational,
technical and allied areas, the latter refers to developing an
employee in the areas of principles, and techniques of
management, administration, organization and allied ones.
Table No. 1
Area Training Development
Content Technical skills and Managerial Behavioral
knowledge skills and knowledge
Purpose Specific and Job Conceptual and
related General Knowledge
Duration Short term Long term
For Technical and Managerial personnel
Whom non-managerial
personnel
Training and Development in banks
In Banks, there is a need for the continuous training and
development of the staff in the areas of customer care
services on operational aspects and behavioral aspects of
the business. How are the needs identified? The training
needs are assessed through task analysis and performance
analysis, which can be conducted through surveys, or from
the information furnished by the heads of the departments,
customer complaints, even from the reports on 360 degree
feedback systems. In case of a large banks, there are two
ways of conducting training programmes – through an
established department having a full time HRD
functionary who oversees all the training and development
functions of the Banks or through an external trainers
coordinated by the HRD department These days Banks
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International Journal of Management and Social Sciences Research (IJMSSR)
Volume 3, No. 1, January 2014
have recognized the need for training and re-training their
staff, in order to develop a competitive edge over their
competitors in delivering high quality services to the
customers.
Traditionally, banks have recruited young school leavers,
and their initial training was either long apprenticeship or
on-the-job or formal training in basic routine operations.
Aspirants to management position were encouraged to
qualify professionally by reading for associate-ship of the
Institute of Bankers or an equivalent qualification. It was
argued that banking requires exercise of sound training
and development programmes for their employees.
LITERATURE REVIEW
In every study a good literature review does not only
provide knowledge about what has been done in the
research area but also strengths and weaknesses upon
which one can also build an insightful and purposeful
study.
Jadhav (2013) studied the training and development
programmes undertaken by banks for their employees.
The main objectives of the present study were to analyze
effectiveness of training and development programmes for
employees to discharge their duties and to study how
training and development programmes helps to achieve
customer satisfaction. For this study primary data was
collected through questionnaire filled by the bank
employees. A sample of 40 employees is selected by the
use of random sampling from different banks like HDFC,
ICICI, Vijaya bank, Bank of Baroda, and Dena Bank
located in suburban area of Mumbai. It is concluded that
private and public Indian banks undertake training and
development programmes for their employees to increase
their efficiency. Banks provide training programmes to
enhance their knowledge and skills to satisfy the
customers. Growth of banking sector in India is the result
of skilled manpower which is the outcome of training and
development.
Ramakrishna et al. (2012) have studied that Human
Resource Development department has to play a more
proactive role in shaping the employees to fight out the
challenges. The banks not only have to make plans and
policies and devise strategies, the actual functionaries have
to show competence and effectiveness in executing the
said policies and strategies. A sample of 85 employees
covering all Canara bank branches in Kurnool District has
been considered for the study at random. The study
revealed that the employees have attended more training
and development programmes, employees strongly agreed
about the necessity of training and development
programmes, majority of the employees rated trainer’s
preparation as good, employees rated trainers creating
i-Explore International Research Journal Consortium
ISSN: 2319-4421 34
learning atmosphere and employees given overall rating
for training and development programmes.
Sthapit (2012) pointed out that the strategic human
resource development factors affecting the evaluation of
induction training effectiveness in Nepali banks. The study
was based on the survey which was conducted during Feb-
March 2012 on 104 low and middle level managers of
Nepali development banks established from June 2001 to
June 2010. The study revealed that induction training as
most effective in terms of learning and least effective on
the behavior change criterion.
Purohit (2012) studied the existing policies practiced in
co-operative banks to appraise the level of HRD practices,
to assess the satisfaction level of employees about HRD
practices particularly Training and development & Reward
and recognition of employees. In the present study
structured questionnaire via in-depth personal interviews
is used to collect primary data. From large number of banks
in Pune region 16 are selected for the study. Information
was collected from 30 employees of different level. The
study adopted random sampling with regard to the
selection of cooperative banks. The study revealed that
training helps employees to gain better understanding in
the area of Job and this will enhance their stock of
knowledge. Extensive training providing the continuous
development, such as on-the-job training, training
programmes and workshops can be a driving factor for the
activities in the firm. The present paper also suggests the
ways & means by which the selected co-operative banks
can improve their high performances of work practices.
Srimannarayana M. (2011) in his study found that
Training and Development is very important component in
the modern Human Resource Management and the scope
of training and development vary from one organization to
another. The present study is based on primary data. Data
is collected from 105 HR/Training professionals working
in manufacturing, IT/ITES and service sector with a
minimum experience of three year in their respective
organization in the functional area of training and
development. The study revealed that more than 75% of
respondents have believed that performance improvements
made because of training is an extremely valuable measure
and 70.48% have believed that transfer of learning is
extremely important. Almost (95.24%) respondents have
mentioned that they collect feedback of the participants
after completion of the training programme routinely.
There is a gap between the measures that that are used
actually in assessing training and development and
HR/Training professionals do not have control over data
that is required for measuring training and development.
Mohanty (2011) explained how Liberalization,
Privatization and Globalization have changed the scenario
of corporate world and holds for us many challenges. In
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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 35
Volume 3, No. 1, January 2014

this connection, the development of human resources is RESEARCH METHODOLOGY

putting newer challenges in business world. New skills
and abilities are needed to face these challenges and it is Present research paper is of descriptive type and based on
possible by providing “Training”. Training is the strong primary data collected through questionnaire filled by the
foundation of highly skilled and motivated human bank employees. The secondary data includes reference
resource. So, training is one of the most important tools in books, journal, research papers and internet. Random
Human Resource Development effort to improve overall sampling of 40 respondents from employees from different
performance of an organization. Effective and suitable banks like SBI, Oriental Bank of Commerce and Punjab
training interventions can bring improvements and impact National Bank located in urban area of Kurukshetra.
in the working of organization significantly which help
employees to adopt new work practices for the success of
business. Through training an organization go green by ANALYSIS AND FINDINGS
making employees more effective and productive.
Table No. 2
Nagar (2009) study the effectiveness of training Statements %Response of
programmes being conducted by the commercial banks in employees
public as well as in the private sector. The area of study is Induction training is given adequate 86% Very Good
limited to the staff training centers of State Bank of importance.
Bikaner & Jaipur and The Bank of Rajasthan Ltd. The data Training programmes are well 89% Very Good
is collected through a structured questionnaire containing planned.
several questions relating to various aspects of training Norms and values of the 71% Very Good
programme. The focus of the study is mainly the opinions organization are clearly explained
of the trainees regarding various aspects of training like to new employees during induction
course duration, library facilities, trainer, teaching & training.
computer aided programme and other infrastructural Training programmes are 90% Very Good
facilities and the calculated t values are less than table periodically reviewed and
value of t, hence null hypothesis is accepted or hence there improved.
is no significant difference in the opinion of respondent at Employees acquired technical 80% Good
the two staff training centers. knowledge and skill through
training.
Onattu (2005) explored that the need for qualified and Training and development is based 79% Good
trainable employee is recognized as an important factor to on genuine needs.
compete in the global market. This study was conducted to Employees participate in 65% Good
generate information that can be used by industry, policy determining the training needs.
maker and the consultants to develop appropriate training Training and development (T&D) 89% Very Good
initiatives. The present study was based on primary data increase the skill of employees.
which collected with help of questionnaire filled by 50 T&D enhance the quality of 76% Very Good
respondents. services being performed by
employees.
Raju (2005) conducted an opinion survey on the various
aspects of training like management’s attitude, selection T&D satisfy the ego of employees. 79% Very Good
process, quality of training, impact of training on T&D enhance the efficiency and 78% Very Good
productivity & individual and post-training assessment in effectiveness of the work being
different categories of banks in Coimbatore. A performed by employees.
questionnaire was formulated comprising various aspects T&D minimize the faults in 81% Very Good
of training and opinion on the statements was sought from operations.
154 employees of 24 banks in Coimbatore. T&D improve the leadership and 79% Very Good
managerial skills.
OBJECTIVES T&D reduce the stress level of 73% Very Good
employees.
1. To study existing status of training and development Training and development stabilize 78% Very Good
programmes banks for their employees. the organization.
2. To examine the effectiveness of training and T&D help employees in promotion 72% Very Good
development programmes for employees in and other monetary benefits.
fulfillment of their duties.

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International Journal of Management and Social Sciences Research (IJMSSR)
Volume 3, No. 1, January 2014
CONCLUSIONS
There is enough evidence to show that employees who
were trained on a regular basis are the ones who provide a
higher quality services to the customers. To develop an
integrated and proactive training and development strategy
there is requirement of coherent corporate culture rather
than ad-hoc programs. In a service oriented industry such
as banking, people are among the most important assets
and a bank must efficiently manage its employees during
every phase of employment in this competitive arena. It is
concluded that public sector banks undertake training and
development programmes for their employees to increase
their efficiency. Banks provide training programmes to
enhance their knowledge and skills to satisfy the
customers. Growth of banking sector in India is the result
of skilled manpower which is the outcome of training and
development.
REFERENCES
Books
[1] Kunjukunju Benson (2008), “Commercial Banks in
India” New Century Publication, New Delhi.
[2] Jankiraman B. (2009),“Training and Development”
Biztantra.
[3] Sangwan D. S. (2009),“Human Resource
Management in Banks” National Publishing House.
[4] Jyothi P. and Venkatesh D.N. (2006),“Human
Resource Management” Oxford University Press.
[5] Pande Sharon and Basak Swapalekha (2012),
“Human Resource Management” Pearson.
[6] Raj Aparna (2011),“Training and Development”
Kalyani Publisher.
[7] Haldar Uday Kumar and Sarkar Juthika
(2012),“Human Resource Management” Oxford
University Press.
[8] Rao P.L. (2004),“Human Resource Management”
Excel Publishing House.
[9] Shah et.al.(1984))“Human Resource Management
in Banking Industry” South Asian Publisher New
Delhi,.
APPENDIX
Questionnaire on Training and Development in Banks
Dear Respondents,
Kindly go through this questionnaire and you are requested to answer by placing a •tick( ) mark in the
appropriate response column on the right side of the questions .
Tick the option Poor (1)
Fair (2)
Good (3)
Very good (4)
Excellent (5)
This information is meant for only research purpose and I assure that the response recorded by you will be kept strictly
confidential.
i-Explore International Research Journal Consortium
ISSN: 2319-4421 36
Journals
[10] Jadhav Ajit (2013),“A Study on Training and
Development in Indian Banks”, ABHINAV National
Monthly Refereed Journal of Research in
Commerce & Management, Vol.1, No.1, pp34-39.
[11] Ramakrishna G., Kamleshwari, Kumar, M. Girdhar,
Krishnudu CH. (2012),“Effectiveness of Training
and Development Programmes- A Case Study of
Canara Bank Employees in Kurnool District”,
International Journal of Multidisciplinary Research,
Vol.2 No 4. Pp 150-162.
[12] Purohit Manisha (2012), “An Evaluation of HRD
Practices Followed in Co-operative Banks in Pune
Region”, ACADEMICIA: An International
Multidisciplinary Research Journal, Volume 2,
Issue 8, pp 186-195.
[13] Gopal (2008),“Effectiveness of Executive Training
Programs”, The Indian Journal of Commerce,
Vol.6, No.3, pp143-150.
[14] Pathak Neetu (2008), “Corporate Training
Programme- An Effective Instrument for
Organization”, The Indian Journal of Commerce,
Vol.61, No.3, pp113-119.
[15] Saharan Teena (2010), “Training for Employees
Major Constraints Automobile Industries are
Facing”, Optimization, Vol.3 No.1, pp.88-99.
[16] Nagar Vaishali (2009),“Measuring Training
Effectiveness”, The Indian Journal of Commerce,
Vol.62, No.4, pp.86-90.
[17] Srimannarayana M. (2011), “Measuring Training
and Development”, The Indian Journal of
Industrial Relations, Vol.47, No.1, pp. 117-125.
[18] Sthapit Arhan (2012), “Strategic factors in
evaluation of Induction Training Effectiveness an
exploratory study of Nepali bank managers”
EXCEL International Journal of Multidisciplinary
Management Studies, Vol.2. Issue 8, pp.16-32.
Websites
[19] www.iba.org
[20] www.rbi.org
[21] www.bis.org
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 International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 37
Volume 3, No. 1, January 2014

1. Name of the employee:……………………………………………..

2. Designation:…………………………… 3.Department:…………
4. Course attended:……………………………………………..
5. Duration:…………… 6.From:……………. 7.To:……………..

Tick the appropriate box: Poor Fair Good Very good Excellent
(1) (2) (3) (4) (5)
1. Induction training is given adequate importance. (1) (2) (3) (4) (5)
2. Training programmes are well planned. (1) (2) (3) (4) (5)
3. Norms and values of the organization are clearly
explained to new employees during induction training. (1) (2) (3) (4) (5)
4. Training programmes are periodically reviewed and improved. (1) (2) (3) (4) (5)
5. Employees acquired technical knowledge and skill through
training. (1) (2) (3) (4) (5)
6. Training and development is based on genuine needs. (1) (2) (3) (4) (5)
7. Employees participate in determining the training needs. (1) (2) (3) (4) (5)
8. Training and development (T&D) increase the skill of
employees. (1) (2) (3) (4) (5)
9. T&D enhance the quality of services being performed by
employees. (1) (2) (3) (4) (5)
10. T&D satisfy the ego of employees. (1) (2) (3) (4) (5)
11. T&D enhance the efficiency and effectiveness of the
work being performed by employees. (1) (2) (3) (4) (5)
12. T&D minimize the faults in operations. (1) (2) (3) (4) (5)
13. T&D improve the leadership and managerial skills. (1) (2) (3) (4) (5)
14. T&D reduce the stress level of employees. (1) (2) (3) (4) (5)
15. Training and development stabilize the organization. (1) (2) (3) (4) (5)
16. T&D help employees in promotion and other monetary benefits. (1) (2) (3) (4) (5)

Thank you for your kind cooperation.

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