HRM | Human Resource Management | Recruitment




Fast global & technological developments have made today’s business environment highly uncertain & even chaotic. Organizations are seeking newer ways to promote their adaptability to the complexities of the changed scenario so as to survive & 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. The new thinking in this regard is referred to as Human Resource Management (HRM), which carries a more proactive & strategic connotation. The development of employee commitment through employee involvement & 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 & motivated employees who would strive to contribute to organizational goals. That is why, human resource issues are no more the preserves of personnel specialists; rather line & general managers are being increasingly involved in handling key HR issues & in evolving, shaping & managing human resource strategies & policies. These developments have given a far greater recognition to the HR function in organizational decision- making processes. Human resource is one of the natural resources of any country’s economy. It is the wealth of the country. In the context of banking, human resource is of greater importance. The deployment of human resource through proper & efficient selection, training & development, is called Human Resource Management.
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The success of any bank largely depends on efficient human resource management, apart from operations, marketing & sales, the HR department manages all the efficient people working in operations & marketing divisions in an organization. HYPOTHESIS „GROWTH OF BANKING SECTOR DEPENDS ON APPROPRIATE HRM POLICIES‟. To analyze this hypothesis I have included a case study on STATE BANK OF INDIA in which I have put forth the range of practices executed by the HR department. I have even interviewed Mr. Rajiv Deka, Branch Manager of SBI & Ms. Rohini Rai, Branch Manager of HDFC Bank, thereby representing the two major sectors of BANKS, i.e., PUBLIC SECTOR & PRIVATE SECTOR.

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The concept of human resource management is increasingly becoming a most vital function of a modern manager. Human resource management is the management of employees’ knowledge, abilities, talents, aptitudes, creative abilities, etc. Human resources take active role in the modern economic scenario of any country. The abundant physical resources alone cannot benefit the growth of the country without human resource component, which transforms physical resources into productive resources. In fact, the differences in the level of economic development of the countries are largely a reflection of the differences in quality of their human resources. The key element in this proposition is that the values, attitudes, general orientation and quality of people of a country that determines its economic development. ―People are our most valuable asset‖ is a cliché which is no member of any management team would disagree with. The concept of HRM assumes immense importance as HRM plays vital role in meeting the challenging requirements of highly skilled & component human resources due to globalization.

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

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who work for the organization. In recent years. train & develop members for an organization. maintaining & compensating their services in consonance with the job & organizational requirements. & the management of these human resources is critical to the success of the organization. select. increased attention has been devoted to how organizations manage human resources. functions & activities designed & carried out.BMS HUMAN RESOURCE MANAGEMENT MEANING Human resources management involves all management decisions & practices that directly affect or influence people or human resources. Page . utilizing.T. Obviously HRM is concerned with the people’s dimensions in organizations. Human resource management means employing people. HRM refers to set of programs.of 69 .4 .Y. HRM is management function that helps managers to recruit. This increased attention comes from the realization that an organization’s employees enable an organization to achieve its goals. developing their resources.

 Management: HRM involves application of management functions & principles for acquisitioning.  Influence: Decisions must influence the effectiveness of organization resulting into betterment of services to customers in the form of high quality products supplied at reasonable costs. maintaining & remunerating employees in organizations.  Applicability: HRM principles are applicable to business as well as non-business organizations too. It is the people who staff & manage organizations. Page .of 69 . such as education. health recreation & the like.BMS HUMAN RESOURCE MANAGEMENT CORE ELEMENTS OF HRM  People: Organizations mean people. developing.5 .Y.T.  Integration & Consistency: Decisions regarding people must be integrated & consistent.

Job Analysis 3. Performance Appraisals 8. Scope of HRM can be described based on the following activities of HRM.of 69 . Based on these activities we can summarize the scope of HRM into 7 different categories as mentioned below after the activities.6 . Employee & Executive Remuneration 10. HR Planning 2.Motivation 11. Orientation & Placement 6.BMS HUMAN RESOURCE MANAGEMENT SCOPE From entry to the exit of an employee in the organization.T.Safety & Health 14.Communication 12.Welfare 13. Job Evaluation 9. Training & Development 7.Industrial Relations Page . Let’s have a look at both of them HRM Activities:1. Job Design 4.Y. Recruitment & Selection 5.

Y. Employee & Executive remuneration 4. Employee Hiring 3.7 . Employee Motivation 5. Prospects of HRM SCOPE OF HRM NATURE OF HRM PROSPECTS OF HRM EMPLOYEE HIRING INDUSTRIAL RELATIONS HUMAN RESOURCE MANAGEMENT EMPLOYEE & EXECUTIVE REMUNERATION EMPLOYEE MAINTENANCE EMPLOYEE MOTIVATION Page .of 69 . Introduction to HRM 2.BMS HUMAN RESOURCE MANAGEMENT 7 Categories of Scope of HRM: 1.T. Industrial Relations 7. Employee Maintenance 6.

C. II.of 69 .  Organizing: In the words of J.Y. training etc. They are: I. an organization is a ―structure & process by which co-operative groups of human beings allocated its tasks among its members.8 . the organization establishes relationships among the employees so that they can together contribute to the achievement of organizational goals. Page . organizing. changing values. attitudes & behavior of their employees & their impact on the organization. Hence. recruitment. many top managers seek the advice of personnel manager.‖ Given the complex relationships that exist between specialized departments & the general departments. It also involves forecasting of personnel needs.BMS HUMAN RESOURCE MANAGEMENT FUNCTIONS OF HUMAN RESOURCE MANAGEMENT There are 2 broad functions of HRM. identifies relationships & integrates its activities towards a common objective. Managerial Functions Operational Functions Managerial Functions: Managerial functions of Personnel management include planning. it involves planning of human resources requirements. In this manner.  Planning: It is the charting out of programmes & changes in advance in the achievement of organizational goals. co-ordinating & controlling. directing. Massie. selection.T.

verifying & comparing actual with the plans. The Personnel manager co-ordinates various managers at different levels as far as the personnel functions are concerned.  Controlling: After planning. Direction. therefore.  Co-ordinating: It is the task of matrixing various employees’ efforts to ensure successful goal achievement.Y. analyzing labour turnover.of 69 . Page . the performance is to be verified in order to know. organizing.9 . is an important managerial function in ensuring optimum employee contribution. Auditing training programmes. whether the activities are performed as per plans & directions.BMS HUMAN RESOURCE MANAGEMENT  Directing: After planning & organizing comes the execution of plan. identification of deviations if any & correcting the deviations. It involves checking. The willing & effective cooperation of employees towards the achievement of organization’s goals has to be brought about by proper direction. overseeing morale surveys. directing & co-ordinating. Identifying & utilizing maximum potentials of people is possible through motivation & command.T. the various activities. at various points of time. conducting exit interviews are some of the controlling functions of personnel management.

T.of 69 . All these are interacted by managerial functions. compensation & relations.BMS HUMAN RESOURCE MANAGEMENT Operative Functions: The operative functions of HRM relate to employment. EMPLOYMENT • Human Resource Planning • Recruitment • Selection • Induction • Placement • Performance Appraisal • Training • Management Development • Career Planning & Development • Organisation Change • Organisation Development HUMAN RESOURCE DEVELOPMENT COMPENSATION MANAGEMENT • Job Evaluation • Wage & Salary Administration • Fringe Benefits HUMAN RELATIONS • Motivation • Morale • Job Satisfaction • Communication • Grievance & Disciplinary Procedures • Quality of Work Life & Quality Circles Page . they are to be performed in conjunction with management functions.Y. development.10 . Also.

It involves job analysis.T. recruitment.11 .Y. c. b. level & quantum human resources can be finalized. selection. plans & the basis for job design & for all operative functions of HRM. Providing the guidelines. Page . human resources planning. job requirements & employee specification with which nature. induction & handling internal mobility.BMS HUMAN RESOURCE MANAGEMENT ORGANISATIONAL DESIGN----JOB DESIGN----JOB ANALYSIS  Employment: Employment function is securing & employing the people having required level of human resources essential for achieving the organizational objectives. Collection of data & information & facts relating to the various aspects of jobs including men.  Job Analysis: It is the study & collection of data relating to the operations & responsibilities of a specific job. Drawing up of job description.of 69 . job specification. machines & materials. placement. It includes: a.

Ensuring a healthy balance between internal & external sources.Y. Page .BMS HUMAN RESOURCE MANAGEMENT  Human Resource Planning: This is the process which assures the organization that it will have adequate number of qualified persons. performing in a way to satisfy the needs of the organization & also provide satisfaction to the individual employee. at requisite times. b. change & develop the strength of existing employees so as to meet the future requirements. Identification of existing sources of candidates & developing them.of 69 . so employed. c. Seeking out & identifying new sources of applicants. Taking suitable steps to identify. Calculation of net human resource requirements based on the present availability of human resources. d. It involves: a. d. Preparation of action plans to acquire the balance human resources from outside the organization & to develop the existing employees. b.T. mould. The process involves: a. Estimating the present & future requirements of human resources based on objectives & long range plans of the organization.12 . c. Motivating the right type of candidates to apply for jobs in the organization.  Recruitment: It is the process of searching for future employees (requirement) & ensuring they apply for jobs in the organization.

etc. if any. employee performance appraisal to monitor employee adjustment to the job.of 69 the concerned managers regarding the . Employing the selected candidates. This includes: a. Correcting wrong/misjudged placements. Formulating interviewing techniques.13 . in the coming days. b. h. Setting up for medical examination policy & procedure. e.  Placement: It is a process of allotting to the selected candidate the most suitable job.T.BMS HUMAN RESOURCE MANAGEMENT  Selection: It is the process of ascertaining the qualifications. f. skill. c. c. knowledge. Checking of references. when he reports for duty. as per the job requirements & employee specifications. Line Managers to be involved in the decision making. g. b.Y. Sending letters of appointment. d. Counselling placements. Creating & developing valid & reliable testing techniques. of an applicant to ascertain his/her suitability for the job applied. experience. Developing application blanks. Page . This function includes: a. Overseeing the follow-up studies.

history.  Human Resource Development: This process involves improving. career planning & development. Introduce new employee to the people—his colleagues. Familiarizing the employee with company philosophy.of 69 . Evaluating the effectiveness of various programmes. Page . policies. It includes: a.14 . creativity. procedures & techniques. of the organization. Enunciating policies. Assisting functional managers. etc. Mould the employees by orientation methods to the new working conditions. d. moulding. c. b. b. It includes: a. aptitude. etc. etc. company product. policies.BMS HUMAN RESOURCE MANAGEMENT  Induction & Orientation: These are procedures by which a new employee is rehabilitated in the new surroundings & introduced to the practices. objectives. procedures. market share. culture. knowledge. c. values. supervisors & subordinates.  Performance Appraisal: It is the continuous & systematic evaluation of individual employees with respect to their performance & their potential for future development. people.Y. commitment. Reviewing & summarizing reports. & developing the skills.T. based on the present & future job & company requirements. attitude.

Page . culture & systems of the organisation—drawing models from applied behavioural science.15 .of 69 . Assissting & advising the management in the conduct oftraining programmes. c. Developing appropriate training programmes.Y.  Organisational Development: The planned process drawn up to improve organisational effectiveness through changes in individual & group behaviour. Asses the effectiveness of the training programmes. b. It includes: a. Transmitting requisite job skills & job knowledge to the employees. Identification of training needs of the individuals & for the organisation. d. e.T.BMS HUMAN RESOURCE MANAGEMENT  Training: It is the process of transmitting the employees the technical & operating skills & knowledge.

Motivating executives/managers.Y. Utilising the services of specialists—both internal & external for development &/or Institutional (external) development programmes.of 69 . It includes: a. d. f.BMS HUMAN RESOURCE MANAGEMENT  Management Development: It is the process of designing & conducting appropriate executive development programmes so as to develop the managerial & human relations skills of the employees. Conducting development programmes. e. Designing special development programmes/ assessment procedures for promotions. b. Evaluating the effectiveness of executive development programmes.16 . c. Identification of the areas in which management development is needed.T. Page .

BMS HUMAN RESOURCE MANAGEMENT  Career Planning & Development: It is the planning of one’s career & implementation of career palns by means of education. fair & consistent demotion policies are drawn up. The department must ensure that: i. Ensure fair implementation of demotion policies & procedures. Equitable. c. promotions & demotion. ii. offering assistance & guidance to employees under transfer orders & evaluating transfer policy periodically. b.T.17 . ii. job search & acquiring of work experience. It includes: a.of 69 . Execution of promotional policies are as per policies & procedures. Managers & employees are given assistance & guidance on the subject of promotion. iii. Assisting & advising employees regarding demotions. Transfer—process of placing employees in the same level jobs where they can be utilised more effectively as per the needs of the organisation. Promotion—it deals with the upward assignment of employees to occupy higher positions (with better status & pay) in consonance with resoueces of employees & job requirement. Page . training.Y. Equitable. This also means—developing transfer policies. fair & consistent promotions are formulated & administered. d. iii. Internal mobility—vertical & horizontal transfers. Demotion—is the downward assignment of an employee in an organisation. The department must ensure that: i.

Hence Human Resources Management functions will centre around: a. c. h. Redressing satisfactorily through a well defined grievance procedure.of 69 . Developing communication skills. Motivating all employees. learning. Understanding perception. b.T. Developing leadership skills. thereby releasing their stress & strain.Y. d. is an important area in management which integrates people into worksituations in a way that motivates people to work together with economic. personality. Providing adequate counselling to solve employees’ personal.BMS HUMAN RESOURCE MANAGEMENT  Human Relations: Administering various human resources policies like employment development & compensation & interactions among the employees on one hand & employees & the management on the other. e. intra & inter personal relations. Handling disciplinary cases by established disciplinary procedures & in all fairness. g. work & family problems. create a sense of working relationships between workers & management & trade unions. inter & intra group relations. Promoting employee morale. Basically they are all interactions between human beings. psychological & social satisfaction thereby increasingtheir productivity. Human relations. is therefore. Page .18 . f.

Y.BMS HUMAN RESOURCE MANAGEMENT FUNCTIONS OF HRM ALONG WITH OBJECTIVES HRM Objectives Social Objectives Organisational Objectives Supporting HRM Functions Legal Compliance Benefits Union Management Relations Human Resource Planning Employee Relations Recruitment & Selection Training & Development Performance Appraisals Placement & Orientation Employee Assessment Functional Objectives Performance Appraisals Placement & Orientation Employee Assessment Personal Objectives Training & Development Performance Appraisals Placement & Orientation Compensation Employee Assessment Page .T.19 .of 69 .

The main objectives of Human Resource Management are drawn from the organisational objectives.  Personal Objectives: To assist employees in achieving their personal goals.Y. This is necessary to maintain employee performance & satisfaction for the purpose of maintaining. The other objectives of HRM are to take care of the needs. Objectives of Personnel Management are determined by organisational objectives & individual & social goals. dignity of the individual employees & at the same time keeping in mind the socioeconomic problems of the community & the country. aspirations.T. HRM is only means to achieve & assist the organisation with its primary objectives. Page .  Functional Objectives: To maintain department’s contribution & level of services at a level appropriate to the organisation’s needs.BMS HUMAN RESOURCE MANAGEMENT OBJECTIVES  Societal Objectives: to be ethically & socially responsible to the needs & challenges of the society while minimising the negative impact ofsuch demands upon the organisation.  Organisational Objectives: To recognise the role of HRM in bringing about organisational effectiveness. retaining & motivating the employees in the organisation.20 .of 69 . at least in so far as these goals enhance the individual’s contribution to the organisation.

Page . To ensure opportunity for participation in management to the extent possible. viii.of 69 .Y. vi. To maintain high employee morale. x. To continuously upgrade the skills & knowledge of the employees. by training & development programmes.T. incentives & other benefits so that satisfied individuals & groups are motivated to take on challenges. To create facilities for individuals & groups to develop so as to be in tune with the growth of the organisation. ix.21 . Proper & optimum utilisation of human resources. ii. To create & utilise capable & motivated workforce to achieve the basic organisational goals. iv. To ensure the integration of individual group’s goals with those of the organisation.BMS HUMAN RESOURCE MANAGEMENT The objectives of HRM are as follows: i. To ensure adequate & equitable wages. To provide acceptable & effective leadership. To establish & maintain proper & sound organisational structure & healthy working relationships among all its employees. iii. vii. v.

to the business processes. which are not appropriate for their special nature. Page . old private sector. perhaps. substantially. delivery channels & IT strategies of these organisations vary substantially. the contours of HR function in public sector banks are slowly but definitely changing. It may be recalled that. It is also well known that the business mix.22 .of 69 . What is little known but of greater importance is thateach of these banks follow very distinct HR practices which have contributed.Public Sector Banks(PSBs) have adopted HRM practices similar to that of Government departments. HRM in Public Sector Banks In the recent times. most of them adopt the HR policies of sponsor banks.T.since 70s. One could say that these banks are discovering the HR function & it is hoped that these banks will fast catch up with others. HRM in Regional Rural Banks (RRBs) As regards RRBs.BMS HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE MANAGEMENT IN BANKS The classification of the Indian banks into broad groups such as public sector. one reason why the cooperatives are unable to improve themselves. foreign.Y. new private sector. in a controlled environment & to meet with the rapid branch expansion. HRM in Cooperative Banks It is sad that the HR policies of cooperative banks are totally dominated by the Registrar of Cooperatives. This is. regional rural banks & cooperatives are largely on the basis of ownership pattern.

incentives & designations. This also underlies a belief that anyone can occupy any desk.this makes the career path of each employee the responsibility of the organisation. Increments are earned automatically. In these banks. HRM has a role in monitoring & mentoring the employee. Possibly there are as many pay structures as there are employees. More importantly. In such a system specialisation is the loser. People are recruited at the lowest grade & promoted I due course. Recruitment at higher levels is a recent phenomenon & more an exception than rule.of 69 . HRM in Public Sector Unit Banks (PSU Banks) In the case4 of PSU Banks the recruitment process is annual & large scale. There is a great energy spent in keeping the turnover low & offering appropriate training inputs.23 .BMS HUMAN RESOURCE MANAGEMENT HRM in Private Banks & Foreign Banks The HR function as practiced by private & foreign banks is effectively involved in the identification of specific skills that each job warrants & recruiting suitable staff by every way possible.Y. recruitment is a continuous process with a strong focus on getting the right person for the right job by offering appropriate compensation. Pay packets are uniform for a grade/level with annual increments & uniform perquisites. Rather people are recruited in different geographical locations & different levels.T. There are no routine transfers. Page . Technology has helped in centralizing the back office & other functions such that service can be provided from a distance.

T.24 . Responsibilities:  To be the principal sponsor & ―guardian‖ of HR policies in the Bank.of 69 .  To support line management in their day-to-day management of the workforce by providing advice & consultancy on personnel & performance management issues. training & employee welfare.  To propose & obtain agreement on changes to these policies from time to time & to ensure that policies which have been agreed are being implemented throughout the Bank.  To continuously monitor the Bank’s strategies to ensure that HR policies are approriate & that employee numbers & skills are fully supportive of such strategies.  To deliver a full range of personnel services in support of line management. recruitment/transfer.BMS HUMAN RESOURCE MANAGEMENT Responsibilities Of The Human Resource Management Department In Banks: Role: The role of the Human Resource Department is to create the climate & conditions in which management throughout the Bank will be enabled to optimise the individual & collective contribution of all employees to the short & long-term success of the Bank. Page .  To contribute fully to the task of meeting the business challenges whichthe bank has to face by supporting Branch/Unit Managers in continuously developingthe potential of employees. These services include manpower planning.Y. remuneration.

shared interest & loyalty.25 .Y. Page . They have been regarded as an overhead rather than a resource. Batstone. paternalism did underpin the system & particularly important was the system of internal promotion supported by an unwritten agreement between the major UK Banks on no poaching.of 69 . Banks have promoted unitarism (Fox. 1984). & control over interest rates facilitated this. The internal labour market created two categories of employees: career & non-career which equated to a male/female divide.BMS HUMAN RESOURCE MANAGEMENT EMPLOYEE RELATIONS IN BANKS The banking sector has been characterized by apparently harmonious industrial relations & has not suffered from the ―British Diseases‖ of industrial action & demarcation issues associated with parts of manufacturing industry (e. competition between the Banks has been limited.‖ Until the 1980s.g. However deregulation led to the collapse of the national system & a questioning of the old employment practices. banks operating as an oligopoly& Government’s concern with maintaining economic stability with limits to lending. While banks are generally seen as having a passive approach to employee relations. Retail banking is a highly labour intensive industry with labour costs forming 70% of total operating expenditure & ―involvement in fund transmissions meant that a majority of clerical staff have not been used as a means of marketing the bank’s products nor directly for increasing business but to process existing accounts.T. The oligopoly fed through to the management of staff as national wage bargaining minimized competition for labour. wanting commitment beyond the cash nexus. 1966) encouraging an ethos of teamwork.

Identifying the right stuff followed by negotiation is the element which makes the job tough for the employer.BMS HUMAN RESOURCE MANAGEMENT CURRENT CHALLENGES FACED BY BANKS IN HRM  Effective work force: A time-consuming & hectic job is to hunt the right talent.Y.  Right People: The most difficult agenda of HRM across the banking sector is to retain the right people. bonuses & time based fringe benefits like car & house advance. Sudden growth of retail banking & other services has put pressure on HR Managers in banks to engage more professionals within shorter span of time thereby attracting manpower in other banks on attractive packages has made the job market very competing. etc. Human beings even if satisfied of material wellbeing need to be appraised & encouraged constantly. Higher the professional value of the vacancy.of 69 . Page .  Morale Boosting: What has long been overlooked is the morale boosting of the employees by the organizations. gratuity.  Job Satisfaction: Everybody in the bank wants to work in the preferential department.26 . salary slabs. city of his own choice & boss of his liking. An administrative deviation from any of these results in lowered job satisfaction. tougher is the search. preferential location.  Compensation: How much to pay the right employee & how much to the outstanding performer. pensions. Banks have traditionally followed pay scales with predetermined increments.T.

Employee training is a specialized function & is one of the fundamental operative functions for human resources management.Y.BMS HUMAN RESOURCE MANAGEMENT TRAINING & DEVELOPMENT Meaning & Definition: Training: Organization & individual should develop & progress simultaneously for their survival & attainment of mutual goals. placed & introduced he or she must be provided with training facilities. Beach defines the training as ―the organized procedure by which people learn knowledge & skill for a definite purpose. it is important that the training function is made an effective organizational intervention by establishing a clear policy of training & development within the framework of total human resource development. Training is the act of increasing the knowledge & skill of an employee for ding a particular job. After an employee is selected. Page . Employee training is the important sub-system of human resource management.‖ The training system in the banking industry has a strong structural base.T. in the past the training activities have been more ritualistic due to absence of a strategic link between training & human resources development. So every modern management has to develop the organization through human resource development. Dale S. However. evaluation of training effectiveness & the benefits of training to the endusers viz. Today. the internal & external customers. The training establishments need to be actively involved in the total training process starting from the identification of the training needs.27 .of 69 .

refers to the process of imparting specific skills. is confined to theoretical learning in the classrooms.T. computed as follows: Training & Development Need = Standard Performance – Actual Performance.BMS HUMAN RESOURCE MANAGEMENT The need for training & development is determined by the employee’s performance deficiency. Education. education & development. Training. as was started earlier.28 . We can make a distinction among training.of 69 .Y. Training & Education Differentiated: TRAINING Application oriented Job experience Specific tasks Narrow perspective EDUCATION Theoretical oriented Classroom learning General concepts Broad perspective Page . on the other hand.

BMS HUMAN RESOURCE MANAGEMENT Development: “Give a man a fish. & you give him a livelihood.29 . Promotion is regarded as one of the ways of recognizing development undertaken by an employee. This includes their professional & well as their personal development. Even the most careful selection does not eliminate the needs for training. This HRM function deals with the overall development of the employees.of 69 .” This ancient Chinese proverb seems to describe the underlying rational of all raining & development programs. Teach man to fish. & you give him meal. It is a part of HRM function to identify opportunities for enhancing the skills of the resources. Development is also largely dependant on training.Y.T. No banking organization can long ignore the training & development needs of its employees without seriously inhabiting the performance. Page . since people are not molded to specifications & rarely meet the demands of their jobs adequately.

” job method. related information. outside experts & self. Managerial/Operative Personnel: Training is normally directed at operative employees & related to technical aspects. but there are many differences between them. Method: More emphasis on the “on the More emphasis on the “off the job method. They are as follows: TRAINING Duration: Training courses are designed mostly for short term. theoretical & conceptual aspects. Frequency: Less frequent.Y. Theoretical/Practical Aspects: Emphasis is placed on practical Emphasis is placed on or technical aspects of work. training. Page . job. Who Imparts: Mostly the supervisors impart It is undertaken by supervisors. expensive.” Cost Involved: Imparting training is less Development is more expensive.BMS HUMAN RESOURCE MANAGEMENT Generally people think that training & development are one & the same. DEVELOPMENT It involves a broader long term education for a long term. especially top management level. Mostly at More frequent & continuous in induction & at every change in nature.30 .T. It is directed at managerial personnel to acquire conceptual & theoretical knowledge.of 69 . Specific/General: Training is more specific job It is more general in nature.

T.of 69 .Y.BMS HUMAN RESOURCE MANAGEMENT THE TRAINING PROCESS Organizational Objectives & Strategies Assessment of Training Needs Establishment of Training Goals Devising Training Programme Implementation of Training Programme Evaluation of Results Page .31 .

he can place his entire concentration on learning the job rather than spending his time in performing it. It includes job rotation. Often. OJT method is mainly adopted while orienting new employees. Since the trainee is not distracted by the job requirements.BMS HUMAN RESOURCE MANAGEMENT METHODS & TECHNIQUES OF TRAINING ON-THE-JOB METHOD OFF-THE-JOB METHOD     JOB ROTATION COACHING JOB INSRTUCTIONS COMMITTEE     VESTIBULE TRAINING ROLE PLAYING LECTURE METHOD CONFERENCE OR DISCUSSION  PROGRAMMED On-the-Job Training Method (OJT): Majority of industrial training is on the job training type. Off-the-Job Training Method: Under this method of training. There is an opportunity for freedom of expression for trainees. Page . it is informal. introducing innovations in products and services and in special skills training. job instruction or training through step-by-step and committee assignments.Y. job coaching. trainee is separated from the job situation and his attention is focused upon learning the material related to his future job performance.32 .T. OJT is conducted at the work site and in the context of the job. as when an experienced worker shows a trainee how to perform the job tasks.of 69 .

law. the bank fine tunes its HT policy to meet its corporate objectives. It is now thought expedient to plan & strengthen the squad of skilled officers in various segments as IT. growing customer needs & technological up gradation. The Industrial Relations in the banks have been harmonious & cordial. It should redraw its training & development schedules to suit the requirements of the current emerging scenario. Requisite training should be imparted to various branch level functionaries as also administrative staff. Page . The concept of segment specialization may be resorted to in respect of the personnel selected therefore. In the market scenario characterized by heightened competition. Because of modernization & technological advancement rigorous training & man power planning are required. marketing management. Besides in-house training the reputed external agencies should be utilized for human resource development with a view to updating their knowledge & to keep them abreast of the current banking scenario for meeting the challenges ahead. Human resource skills are other areas of challenge. etc. security. New training systems have been developed to impart competencies & a broad range of skills among the employees to deliver faster & superior service that can delight the customers.of 69 .T. risk based supervisors.Y. The lead bank must play an effective role in improving the work environment & pursuing staff welfare measures in the form of whole range of financial assistance with reference to various loans of sorts.33 . risk management.BMS HUMAN RESOURCE MANAGEMENT DEVELOPMENT IN BANKS The banks must emphasis on human resource development as one of the critical areas of its operations.

therefore. While doing so. they need to recruit people with requisite skills.of 69 . organizations cannot progress and prosper.Y. Therefore. In order to achieve the goals or the activities of an organization. In recruitment the organization gives the details of job available & interested candidates are encourages to submit applications. recruitment is the positive process. Once the required number and kind of human resources are determined. Procurement involves recruitment. the management has to find places where the required human resources are/will be available and also find means of attracting them towards the organization before selecting suitable candidates for jobs. The success or failure of an organization is largely dependent on the caliber of the people working therein. selection & placement of employees. Page . Without positive and creative contributions from people. Recruitment is finding out potential applicants for actual & anticipated organizational vacancies.T. of employee needed the next operative function is the procurement of employees. they have to keep the present as well as future requirements of the organization in mind.34 . qualifications and experience. The human resources are the most important assets of an organization.BMS HUMAN RESOURCE MANAGEMENT RECRUITMENT Meaning and definition: After determining the types & no.

35 .BMS HUMAN RESOURCE MANAGEMENT Definition :According to the Edwin flippo: Recruitment is the process of searching for a prospective employees & stimulating them to apply for jobs in the organization.‖ Objectives of recruitment Some of the objectives of recruitment are:  To attract people with multi-dimensional skills and experiences that suits the present and future organizational strategies  To induct outsiders with a new perspective to lead the company  To infuse fresh blood at all levels of the organization  To devise methodologies for assessing psychological traits Page . ― A process to discover the sources of man power to meet the requirements of the staffing schedule and to employ effective measures for attracting that man power in adequate numbers to facilitate effective selection of an efficient work force. Recruitment is defined as.Y.of 69 .T.

BMS HUMAN RESOURCE MANAGEMENT Factors affecting recruitment: RECRUITMENT PROCESS Personnel Planning Job Analysis Employee Requisition Job Vacancies Recruitment Planning Number Type Searching Activation “Selling” Message Media To Selection Screening Application Potential Pool Hirers Strategy Development Where How When Application Population Evaluation & Control Page .T.of 69 .36 .Y.

Page . when offered to approach the ideal people.  Planning  Strategy development  Searching  Evaluation and control The ideal recruitment process is the one which attracts relatively larger number of qualified applicants who will survive the screening process and accept positions with the organization. individuals responsible for recruitment process must know how many types of employees are needed. how to distinguish applicants who are unqualified from those who have a reasonable chance of success.BMS HUMAN RESOURCE MANAGEMENT Process of Recruitment: Recruitment refers the process of identifying and attracting job seekers so as to build a pool of qualifies applicants.of 69 .T. This process comprises of five interrelated stages. viz.37 .Y. where and how to look for individuals with appropriate qualifications and interests. and how to evaluate their work. what inducements to use for various types of applicants group.

This is helpful during peak operating period. The selection procedure cannot be effective until and unless Requirements of the job to be filled have been clearly specified. The objective of selection decision is basically picking an applicant from a pool of applicants who has the appropriate qualifications and competency to do the job Selection is the process of selecting the best & rejecting the rest.  It helps operating managers to concentrate on their operating responsibilities.BMS HUMAN RESOURCE MANAGEMENT SELECTION Definition Selection is defined as the process of differentiating applicants in order to identify and hire those with a greater likelihood of success in a job.T.  It facilitates contacts with applicants because issues pertaining to employment can be cleared through one central location.  The applicant is better assured of consideration for a greater variety of jobs.Y.  It can provide for better selection because hiring is done by specialist trained in staffing techniques.  Hiring cost may be cut because duplication of efforts is minimized. etc) have been clearly specified.  Employee specifications (physical.38 .of 69 .  Candidates for screening have been attracted. Page . Selection process is preferable because:  It is easier for applicant as they can send their applications to a single centralized department/agency.

educational attainments. English language etc. Preliminary Interview: The next step that tag along the selection procedure is a preliminary interview wherein the applications are scrutinized so as to eliminate unqualified applications. 2. Information is generally required on the following items in the form: personal background. Written test: Written test is conducted for the qualified candidates after they are screened on the basis of application form to measure the candidates ability towards the job. Application form: Many companies formulate their own style of application form depending upon the size and nature of business carried on. Selection Test: After passing through the interview the next stage that applicant has to prove himself on are the selection tests. There are different types of selection tests for different levels of the organization and that too is further differentiated within different types of organizations. This interview thus provides information about the candidate related to the job or personal specifications. Preliminary Interviews are short. work experience references etc. Some of the most common and well-known tests that an applicant has to go through are. Ability test b.of 69 . his aptitude reasoning. knowledge in various disciplines.T. 3. 4.Y. type and level of the job etc.BMS HUMAN RESOURCE MANAGEMENT Selection Process: The selection process consists of the following steps: 1. Aptitude test Page .39 . a.

Selection Decision: After collecting data from all the preceding steps. d. interviews and reference checks. this is the most crucial step in the entire selection process.of 69 . The main difference between the preceding stages and this is that former is used to short list the number of candidates and later one is to make a final decision from the pool of individuals who pass the tests. perhaps.T. address.Y. Graphology Test: is an art wherein the individual’s handwriting is seen and accordingly his personality traits are derived by the way he writes. 5. References and background checks: Many employer request names. Drug test: Help to ensure the presence of illegal or performance-affecting drugs. The HR manager plays a crucial role in the final decision. g. The view of line manager will be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee. Polygraph Test: Are designed to ensure accuracy of the information given in the applications. f. Internal test: to measure an individual’s activity preferences. Personality tests: Which is common mostly for the higher level of management are given to measure a prospective employee’s motivation to function in a particular working environment. e. gaining additional background information on an applicant.BMS HUMAN RESOURCE MANAGEMENT c. 6. Medical Tests: Reveal physical fitness of the candidate. Page .40 . and telephone numbers or references for the purpose of verifying information and. h.

the candidate is required to undergo a physical fitness test. Page .  It helps to determine if there are any physical capabilities which differentiate successful and less successful employees.Y. 8. but not the least such examination will protect the employer from workers compensation claims that are not valid because the injuries or illness was present when the employee was hired. Appointee must be given a reasonable time for reporting because it may be quite possible that the appointee is employed in some other company or must be residing in some other city and for such other reasons. Physical Examination: After the selection decision and before the job offer is made.  Medical check up protects applicants with health defects from undertaking work that could be detrimental to them or might otherwise endanger the employer’s property. The result of the medical fitness test is recorded in a statement and is preserved in the personal records.  To determine whether an applicant is physically fit to perform the work. Such a letter usually contains the date by which the appointee must report on duty.of 69 . Job offer is made through a letter of appointment. Company may also want the appointee to delay in joining the job because the job may require undergoing some training program. The main objectives of this test are as follows:  To detect if the individual carries any infectious diseases.  Last. Job offer: The next step is selection process is Job offer for those applicants who had passed the previous stage.T.BMS HUMAN RESOURCE MANAGEMENT 7.41 .

BMS HUMAN RESOURCE MANAGEMENT Decency demands that rejected applicants must be informed about their non-selection. Such candidates must be told that they were not selected. One such document is Attestation form. The selection process. 10. 9.Concluding the selection process: The selection process will not end with executing the employment contract. certain documents need to be executed by the employer and the candidate.Y. Audit must be conducted by the people who work independent of the HR department. Page . The main drawback of the contract is that it is difficult to enforce them. term of job and so on.Evaluation of selection process: The broad test if the effectiveness of the selection process is the quality of the personnel is hired. These applicants’ data must be used for future references. perks.42 . not because of any serious deficiencies in their personalities. 11. which could be used for future reference.T. Contract of employment: After the job offer is made and the candidates accept the offer. which are authenticated and attested by him/her. An organization must have competent and committed personnel. The information written in the contract may vary according to the level of the job. Another document is contract of employment. will ensure availability of such employees. The step is reassuring the candidates who have not been selected. if properly done. but because their profiles did not match the requirements of the organization. This form contains vital details about the candidate.of 69 . This document contains the terms and conditions of employment like designation.

the management invites them to join the organization by offering attractive salary and benefits. But the employee skills. They are not directly employed by the company where they are working. Page . Employees not recruited by one client are sent to another. knowledge and performance affect not only superiors but also subordinates and the employees of the same level.of 69 . This type of selection program is called 360 degree program.BMS HUMAN RESOURCE MANAGEMENT New methods of selection:  360 degree selection or participative selection: Normally supervisors administer the selection test and interview. An interesting feature is that the client company need not perform personnel activities such as hiring compensation or record keeping.43 .  Employee leasing: The client company leases employees from a third party. They judge the fit between the job and the candidate. the significant performance of the executives forms basis for selecting them by invitation. If the performance of the key executives is excellent or the key executives are the change agents. Hence the organization started involving the subordinates and the employees of the same level in administrating the employment tests and interviews.  Selection by invitation: Management observes the performance of the key executives of competitors. Thus. not on temporary basis but on a full time basis and for long help.T. Employees working elsewhere are leased.Y.

From this. Page .a difficult task in a system which is driven by short-term investor pressure. Learning from international experiences and diffusing the information can have a transforming effect. but a policy which treats termination as a last. First.BMS HUMAN RESOURCE MANAGEMENT FUTURE OF HRM If HRM is not to remain more in the realm of rhetoric with wide disparities between theory and practice. This would reduce the need for HRM specialists. except at the policy level where they will have a greater voice. several things need to take place. For this to occur the following conditions need to be satisfied:  HRM should be an essential part of management education and training.  Substantial investment in people and the willingness of employers to view the benefits from a long-term perspective . would have little motivational effect. resort. HRM is likely to be integrated into corporate strategies and line managers’ functions and decisions. HRM needs to be diffused across industries and the economy. Business strategies are then likely to be built less around low cost and low wages.44 . as was the case when American manufacturing was transformed through in-depth studies of Japanese manufacturing in the automobile industry. without which HRM policies.Y. but around the real sources of competitive advantage such as flexibility. quality and customer service. two important consequences are likely to follow. rather than a first. including training.  Employment policies which support employment security.T. This does not mean guaranteed employment.of 69 .

4. What can candidates use the E-Recruiting tool for? a. My e-mail address is already registered.2. Application Process: Entering data. 1. General Questions. Can I enter my data in more than one language? 3. I am an applicant. uploading documents. What is the Fast track option? Page . Why do I have to give details like resume. what can I do? 3. cover letter.1.2. Applying for advertised job postings c.2. What is E-Recruiting? 1. qualifications. How can I edit the entries in my profile? 3. Searching for job postings b.1.3.Y. Is my data safe? 2.T. how can I log on to the system? 2. I forgot my password and my user name.1. Application Process: Access the system 2.of 69 .BMS HUMAN RESOURCE MANAGEMENT Frequently Asked Questions: E-Recruiting 1.3. and so on twice -once in the category and once upload them under attachments? 3. Registering in the Applicant pool d. How do I access E-Recruiting? 2. editing entries 3.5.45 .3. Supported Browser 1. Do I really have to make entries in every section of My Profile? 3.

............ Who can access my application and uploaded documents? ...............46 ......... How can I search for suitable jobs in E-Recruiting? .... How can I change my cover letter after I have submitted my application? 4......... 5 5..... How long do I have to wait for initial feedback on my application? . 2/7 5..........of 69 .............................. How long is my data stored in ERecruiting?. What kind of job postings can I find in ERecruiting?..............BMS HUMAN RESOURCE MANAGEMENT 3.......... I was asked to attach additional documents to my application............. If I am applying for more than one job...8........................7.....................2......2........ Why don’t I get results when I enter the German search term "Chemiker"?..4.................. I have uploaded all my application documents..6.. 5 4.......1....... can I Select which documents I attach to each separate application? 3.......... 5 5......... 6 5..............................................3................. 6 Page . 6 5............................... Application Process: What happens next? 4...........1......... What does the Candidate status tell me? 4.T.......... 5 Frequently Asked Questions E-Recruiting.. Can the HR department see all my documents straight away or do I have to reapply? 3.Y.4......... Job opportunities...... searching for job postings. How can I apply for jobs at LONZA international subsidiaries? ............3............... 5 4......................................

............................................................ I applied for a job........6............................. Are the job postings I am interested in up-todate?........................................................................... After I applied for a job.47 ..... How do I apply for a job in E-Recruiting? .... How can I withdraw my application?......... 6 6....3...........BMS HUMAN RESOURCE MANAGEMENT 5................ 7 6........................... How can I apply for various jobs at the same time?.......................... . Can I apply via e-mail or paper applications? ............ 7 Frequently Asked Questions E-Recruiting... I noticed that the reference code had changed........................................................................ 6 6...5................. What happens when I apply for a job?.. 7 6................ .......6..............Y.................5.... Will my application be automatically checked for a match with all other job postings? ...................T.. Do I have to reapply or will my application remain assigned to the right job posting?............................................1........... 3/7 1....................................... 7 6................................................of 69 ...................................................................... General Questions Page . 6 6.................2..... 7 6.................................... Application .....................................4.................. 6 5........................

Searching for job postings Candidates can search for job postings published by LONZA Recruiters (HR Managers).3. What is E-Recruiting? E-Recruiting is a global Lonza online recruiting tool which facilitates the relationships between Lonza and its candidates.2. he or she will request the applicant to apply specifically for the job concerned. d.Y.48 .BMS HUMAN RESOURCE MANAGEMENT 1. What can candidates use the E-Recruiting tool for? a.T. Supported Browser For optimum functionality please use the browser Internet Explorer from Microsoft. 1. c. b.1.of 69 . Applying for advertised job postings Candidates can apply online for advertised posts. At the beginning only Jobs from Switzerland will be online followed by all subsidiaries by summer 2008. Please find the current status on the internet. Is my data safe? Page . If a recruiter identifies a match between an applicant’s profile and a job profile. Registering in the Applicant pool Candidates can register in the Applicant pool and upload all their application documents so that they can be informed about suitable jobs when they arise. 1.

If you have forgotten your password. Search for one or more job postings and click on Apply.Lonza. 3. My e-mail address is already registered.1.BMS HUMAN RESOURCE MANAGEMENT The E-Recruiting tool complies with all the stipulations of the Swiss Data Protection Act and of LONZA’s own data protection / Careers @ Lonza / Jobs Schweiz and choose "login".49 . To receive your new password. 4/7 2. I forgot my password and my user name. Proceed to the link "password forgotten" and enter your e-mail address. how can I log on to the system? Access the web page www. 2. 2. you can have a new password sent to the e-mail address stored in your profile. enter your e-mail address and submit the password / Careers @ Lonza / Jobs Schweiz. uploading documents. I am an applicant. Application Process: Entering data.2. what can I do? Click the link: "Password forgotten". How do I access E-Recruiting? You can access E-Recruiting via www.of 69 . editing Page .lonza.3.T.Y. Application Process: Access the system 2. Frequently Asked Questions E-Recruiting. After pressing the button "submit" you will immediately receive a systemgenerated e-mail with new access data (user name and password).

Y. Do I really have to make entries in every section of My Profile? It makes sense to provide as much information about yourself and your skills and experience as possible.BMS HUMAN RESOURCE MANAGEMENT entries 3.of 69 . enter your data in your favourite language. 3. if you use the Fast track option. you only need to Page .T. 3. Can I enter my data in more than one language? Your application should be in the same language as the job posting you are responding to (usually English. 3.3.2. cover letter. However.4. There is also a Delete button for removing entries. If you decide to register in our Applicant pool.1. and so on twice -once in the category and once upload them under attachments? Entering details in the different categories gives a standard overview for easy comparison of candidates. German or French).50 . Why do I have to give details like resume. qualifications. How can I edit the entries in my profile? You can change your entries at any time using the Edit button. Uploading documents makes it possible to assess candidates more individually.

including a cover letter and resume. 3. all the documents you have attached to it are Page .of 69 .5. What is the Fast track option? If you choose to use the Fast track option. 3.51 . Can the HR department see all my documents straight away or do I have to reapply? The HR department can see the newly attached documents. You therefore do not have to reapply.7. Your application still needs to contain all the regular application documents. If I am applying for more than one job.6.BMS HUMAN RESOURCE MANAGEMENT enter information in certain mandatory fields (marked by asterisks). such as a cover letter and your resume.Y. can I select which documents I attach to each separate application? As soon as you release your profile. you still need to submit a complete set of application documents. 5/7 3. I was asked to attach additional documents to my application. you only need to enter application data in certain mandatory fields (marked with red asterisks). though. However.T. Frequently Asked Questions E-Recruiting. I have uploaded all my application documents.

However. not even HR staff.52 . you need to withdraw your application. and then reapply for the job. Application Process: What happens next? 4.3.BMS HUMAN RESOURCE MANAGEMENT visible in every application you submit.T. can see your data until you have given your consent and released your profile. such as whether it is being processed. whether it has been rejected. What does the Candidate status tell me? It provides information about the current status of your application. rewrite the cover letter.1. You can lock your profile at any time to prevent further access to your data. Please read the corresponding data privacy statement carefully and then click the button to agree to and accept it. 4. or whether you are to receive an invitation to interview.2. 4. Who can access my application and uploaded documents? Nobody except you. 3. 4.of 69 . How can I change my cover letter after I have submitted my application? In this case.Y.8. How long is my data stored in E-Recruiting? Page . you have the option in the application wizard of writing a new cover letter for each application in the Cover letter category.

Frequently Asked Questions E-Recruiting. at the moment you will only find job postings from LONZA subsidiaries that are already operating the E-Recruiting tool (see above).T. and then please use the Quick search option. If you have registered in our Applicant pool.Y.BMS HUMAN RESOURCE MANAGEMENT That is your decision.1. However. The second option is by entering the reference code for the job you found in a magazine/news paper. 5. How long do I have to wait for initial feedback on my application? If you have applied for a specific job. Job opportunities. you will receive feedback as soon as there is a job available that matches your profile. 4. By selecting Search for Jobs. you can browse for job opportunities using various Page .2. if you have already found the job you were looking for. 6/7 5. you should receive initial feedback within 2-3 weeks. Noone else can change or delete it. What kind of job postings can I find in E-Recruiting? E-Recruiting contains all job postings advertised for internal and external applicants.of 69 . searching for job postings 5. You are the only person authorized to handle your data.53 . How can I search for suitable jobs in E-Recruiting? You can use the Apply Directly function.4.

lonza. and contract type. How can I apply for jobs at LONZA international subsidiaries? Currently only Lonza Switzerland jobs (Basel. go to: www.BMS HUMAN RESOURCE MANAGEMENT search criteria. 5. Visp) and Lonza UK jobs are on our ERecruitment tool. Withdrawn applications are no longer visible to anyone. 5. Under Applications. On this page you will find the list of jobs. To search and apply for jobs at our other subsidiaries. you can call up an overview of the applications you have released and also withdraw individual applications.4. You can either enter the English Term of your desired Job (in this case "Chemist") or you change the search settings to German. such as function area.T. Why don’t I get results when I enter the German search term "Chemiker"? Your application interface is set to English by default. You may select the country and job of interest. You can also save your search results in this section.3. Selecting Favorites allows you to display the results of previous searches and apply directly for one of the jobs listed. country. Page / Working at Lonza / Careers @ Lonza.54 .of 69 .

Either you can apply for a job you have saved under Favorites.5. 5. or use the Apply Directly function when you found the job you had a reference code for. After I applied for a job. You will find the most current information on the front page “careers@lonza”. Mark the first job posting you favour and click Apply. Do I have to reapply or will my application remain assigned to the right job posting? Even if the reference code has changed. I noticed that the reference code had changed.2.lonza.55 .T.of 69 .1.6. 6. How do I apply for a job in E-Recruiting? You have two possibilities. Are the job postings I am interested in up-to-date? All job postings on www. The application Page .com are updated daily. Application 6. How can I apply for various jobs at the same time? If you want to apply for more than one job (E-Recruiting permits you to apply for up to three different jobs). you can display a selection of job postings in the Search for Jobs section. your application will remain assigned to the correct job posting.Y. 5. 6.BMS HUMAN RESOURCE MANAGEMENT We will continuously add further countries to the e-recruitment tool.

he or she forwards your application to the responsible manager. If it matches the job profile.T. you return to the search results and can apply for the next job of your choice. How can I withdraw my application? When you select Applications. a recruiter (HR Manager) checks your completed application. upload your documents. 6. Mark one of the applications displayed and click Withdraw/Delete. 6.56 . Important When you click Withdraw/Delete. The manager then decides whether he/she would like to see you for an interview or not. and so on.BMS HUMAN RESOURCE MANAGEMENT wizard opens and you can enter your data. Note that you may also have to delete completed questionnaires and application cover letters.3.of 69 .4. What happens when I apply for a job? First. you get an overview of all the applications you have submitted. If you apply again.Y. you receive the following message: “You do not want to proceed with this application. When you click Submit on the last page. you will Page . your complete application data is transferred to our database. By clicking Back.

6.5.57 .of 69 .Y.T.BMS HUMAN RESOURCE MANAGEMENT have to enter this data again. but they can no longer see your completed application and documents. 6.” The hiring manager and recruiter can see that the application status has changed. 6. no longer accepted Page . I applied for a job. We will though look in the applicant pool for candidates and if you match the profile we will contact you. Will my application be automatically checked for a match with all other job postings? You need to apply separately for every job you’re interested in. that means assign your application in your profile to further job postings. Can I apply via e-mail or paper applications? E-mail and paper applications are by default.



I have interviewed Mr. Rajiv Deka, Branch Manager of SBI & Ms. Rohini Rai, Branch Manager of HDFC Bank, thereby representing the 2 major sectors of banking, i.e., Public Sector & Private Sector. The theme of the interview was on how HRM has reacted to the various drivers of modern banking & how to enhance performance in the fast changing banking sector. The results of the interview threw up some interesting facets to the HR issues confronting the banks today & how the HR departments are coping with it. Hereby showing the main highlights of the interview. 1. HRM CHALLENGES

6% 4% 4% 15%





Getting into new Markets/Areas Improving product & service quality Sustaining & increasing profits New distribution channels

Improving operational effectiveness Deepening gustomer base Complying with regulatory challenges New products & services

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When interviewed the two personnel, both of them were of the opinion that the list of HRM challenges in banks are as shown in the graph.  The biggest HRM challenge is sustaining & increasing the profits of the bank.  Following that is improvement in the operational effectiveness of the HR department.  The least priority on the challenge list is given to new distribution channels & on introducing new products & services.

2. THE ROLE OF HRM IN BANKS TODAY When asked about the role of HRM in banking, Mr. Rajiv Deka was of the opinion that HRM drives business transformation initiatives. It is therefore not completely incorrect to conclude that HRM participates in the decision & allocation process after the major issues are decided. Ms. Rohini Rai however emphasized saying that ―In the post business decisions, HRM participation in the business implementation & resource allocation is solicited. It is necessary that the banks take up human resources accounting & involve HRM departments fully in the business process changes so that the full potential of change in business processes may be realized.‖ Interestingly the response about the changes within the HR Departments with reference to a change in the business strategy revealed similar dichotomy.

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3. EFFECTIVENESS OF HRD Posting right person for the right job, retaining talents, planning for the long term needs of the bank, dovetailing employee preferences in the deployment process, & capacity to make staff changes that drive business changes are the corner stones of HR strategy. How effective are the banks in performing these tasks? The two personnel were of the opinion that:  They are effective when it is a question of ability to post staff with appropriate skills & capabilities for the job/s.  Also these departments have enough room/flexibility with regard to their ability to make changes in staffing pattern/position based on changes in business conditions.  As regards PSU banks, the response to the effectiveness should, be read in conjunction with the issues on transfer & promotion policy. The posting of staff with appropriate skills & capabilities could be well suffixed with ―subject to availability of suitable skills & talents in the given location‖. HRM effectiveness could also be suited with reference to be its role in staffing of each department/unit. In an effective organization, the department will have a say in the matter & work hand in glove with the line departments. This seems to be in vogue in private sector & foreign banks. Invariably, in these organizations, the line departments & HRD jointly select
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61 . in the past the selection process was through advertisements for a large number of posts. There are campus recruitments & sporadic instances of specialists being inducted at higher levels.T. the candidates were given an induction training & job-specific training. This coupled with I. Some of the banks have also started offering market related pay. COPING WITH THE EMPLOYEE TURNOVER If a bank does not have the staff with the required skills at the required place it would resort to recruiting. In the recent years. On selection. The responses clearly show that there is a need for greater coordination between the HR & line the participant HR functionaries have indicated that job rotation is an important aspect of employee development. Undoubtedly this has been a successful model as it has thrown up a large number of very efficient leaders in the sector. 4.of 69 . In the case of PSBs.Y. Yet. while HRD is involved in the head hunting. The need for specialization & new skill sets for CBS & Page . it appears that in the case of PSBs the line departments have no right in the selection of candidates. as of now.BMS HUMAN RESOURCE MANAGEMENT candidates. there are apparent changes in the way the staff are selected in PSBs. finalizing pay & related aspects. however. Indeed the concept of job rotation is contrary to the development of specialist skills. They have also indicated that most jobs are becoming specialist in nature.

Transfers have also been cited as one of the reasons for turnover in the public sector. hiring temporary staff. reuse of retired staff. re-skilling. it is now the turn of retail business. risk management & customer relationship face acute shortage of experienced & talented staff. If till recently it was the BPO sector. it is seen from the news reports that. banks have resorted to the use of the expertise of retired staff. The available avenues to manage this issue are outsourcing. etc.62 . The following figure shows the importance of HR in each strategy adopted by banks in the matter of staff deployment: Page . which was the biggest recruiter. it is seen that the turn over level during the current year is higher than the previous years. Certain specialist areas such as treasury management.of 69 . As PSBs cannot offer-barring a fraction of their business-market related salaries the turn over has been high. It is seen that bank employees are able to take up jobs in these relatively new areas. as staff-mostly talented & experienced officers-move from public sector to private sector & within the private sector to the greener pastures.Y. Marketing of bank products bring us to the two issues that have gained the attention of HR departments in the recent years. namely staff deployment techniques & managing employee turnover.T.BMS HUMAN RESOURCE MANAGEMENT II. Another reason for loss of staff is the requirement of domain staff in the IT companies. Across the banking sector everyone is facing a high level of employee turnover in the recent years. in making financial inclusion happen. In the view of this. Some of the retired staff has also come forward to handle training assignments. It can be said that the current period is the most challenging times for HRD.

Y. RECRUITMENT IN BANKS Page .T. Participants indicated the need for a change & more business oriented appraisal & felt that appraisal systems such as 360 Degree appraisals will be useful in future. In the absence of clearly defined individual & organizational goals the appraisal has become a routine.63 .BMS HUMAN RESOURCE MANAGEMENT 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% MORE LESS NO CHANGE DON’T USE Performance Appraisal: A related issue is the performance appraisal system that currently focused more on promotions & not on linking performance to deployment of specialization. Performance appraisal is also more on traits than on any qualitative or quantitative appraisal of work. 5.of 69 . The overwhelming feeling is that PA system should change & react to new needs.

BMS HUMAN RESOURCE MANAGEMENT Evidently the banks are waking up to many new issues.64 .T. One such issue is the changing recruitment market. No. 1. It is an indication of changing times that the list includes items such as performance linked incentives. choice of departments.of 69 . fast track promotion. Employee Development Techniques It was earlier seen that the major task before the HRD is to instill new skills with the staff. If turnover is high & recruitment poses challenges on account of high salary & work life balance expectations the HR function needs to adopt many different methods to educate/train the staff. in future. foreign posting education. 4. What according to the HR executives attracted candidates to the banks? What attracts candidates to your banks? Sr. will be woven around the above aspects (Table). 5.Y. 6. sabbatical & stock option. 2. 3. 7. In this connection it can be pointed out that all the banks own Page . Particulars Work & Life Balance Career Growth Opportunities Banks Track Record Compensation Being Better Than Market Good Company Values Challenging Work Environment Positive Corporate Reputation Others The personnels felt that the recruitment policies. 8.

The schemes of reimbursements of expenses were rather liberal. procedures & customers. The rules. Banks were also keen on encouraging their staff to take up new courses & correspondence courses. There is a need to curtail expenses in reinventing wheels.Y. 40 35 30 25 20 15 10 5 0 EFFECTIVE NOT EFFECTIVE NOT TESTED As staff turnover & new positions are filled.BMS HUMAN RESOURCE MANAGEMENT a large training network. 6. The HR executives felt that the HR department can also function as knowledge management centre. knowledge management becomes important. They also have access to other training establishments & seminars. SOURCES OF RECRUITMENT Page . Banks have already begun knowledge management efforts.T. The major emphasis of banks is to use their training systems & establishments to the fullest extent. Banks also send employees to B schools for short duration courses & MDPs.65 . data that have been gathered need to be made available to the new staff such that continuity & service excellence is maintained.of 69 .

i. financial institutions and specialized banks are operating with various products and activities.e.Y. Page . from within the organization while others draw externally..66 . Some organizations draw their human resources internally.of 69 ..BMS HUMAN RESOURCE MANAGEMENT The various sources of recruitment may be broadly classified into two categories. i. internal & external sources. The banking has become a complex activity within the financial market linked directly and indirectly with an over-all national growth and its impact as an integral part of regional segment of a global banking environment.e. PROMOTION TRANSFER RETIREMENT CONSULTANTS RECALLS INTERNAL ADS I N T E R N A L Sources of Managerial Recruitment E X T E R N A L ADVERTISEMENTS INSTITUTES RECOMMENDATION DEPUTATION CONCLUSION The banking sector has grown from a few institutions primarily involved in deposit acceptance and trade finance into a complex multi player where large number of commercial banks.T. from outside the organization. i..e.

The major challenge for this industry is. retained and motivated.R. Objectives of the employees should be met if employees are to be maintained. banking requires multi layer manpower for its various requirements of professionals and support staff. Com for Banking & Insurance. Recruitment and selection must also be done very efficiently.BMS HUMAN RESOURCE MANAGEMENT Thus. event the high automation would require proper man behind the machine to make things happen. A.Suri for guiding and motivating me during this project.67 . A special thanks to our esteemed coordinator Prof.‖ To conclude the growth of banking sector in the future depends upon appropriate HRM policies which will assist the employees in achieving their personal goals and in turn will enhance the individual’s contribution to the organization. HRM is of great importance in banks. This has given us an opportunity to gain knowledge on the insights of the Banking & Insurance industry. The training and development of employees is very much important. The range may require reasonably educated security guards on the one end and a highly educated and trained professional as head of corporate finance at the other. Page . I would also like to thank the librarian of Jai Hind College who helped me in finding out various books on the topics. Like many other organized sectors. ―attracting the right talent and retaining them.Y.T.of 69 . This idea has been realized by top managements in progressive banks. ACKNOWLEGEMENT I sincerely thank the University for introducing a degree course in B.

BIBLIOGRAPHY  BOOKS Human Resource Management and Industrial Relations – P. Rao Page .BMS HUMAN RESOURCE MANAGEMENT This project was highly educational and a great learning experience.68 .T. Subba Rao Human Resource Management – K.Y. V. Ashwathapa Human Resource Management – P.of 69 .

Ashwathapa Human Resource and Personnel Management – William Wrether  WEBSITES Page .google.hrmguide.of 69 www.69 www.BMS HUMAN RESOURCE MANAGEMENT The future of Human Resource Management www.

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