Project Report On Human Resource Management in Banking Sector STATE BANK OF INDIA (Dissertation) Submitted in partial fulfilment of the requirements for the degree of Master of Business Administration (MBA) Submitted By — Deepanjali Sahoo Registration. No: -1906283047 Guided By- Mrs. Sulochana Dash Asst. Professor Rajdhani College of Engineering & Management Rajdhani College of Engineering & Management BHUBANESWAR July, 2021CERTIFICATE This is to certify that the Dissertation Project Report nagement in Banking Sector (SBI)” has titled “Human Recourse M been prepared by ‘Deepanjali Sahoo, a student of 4" Semester MBA, under my guidance during as Part fulfilment of MBA Degree. This project work has been a work of Innovation under my guidance and has not been submitted anywhere in any form. Mrs. Sulochana Dash Asst. Professor Rajdhani College of Engineering & Management BhubaneswarACKNOWLED« Iam sincerely thankful to Mrs. Sulochana Dash (Project Faculty Guide), under whose guidance I have successfully completed this project and time spent with her had been a great learning experience. I think her constant encouragement, warm responses and for filling every gap with valuable ideas has made this project successful. She made it possible for me to put all my theoretical knowledge to work out on the topic: “HUMAN RESOURSE MANAGEMENT IN BANKING SECTOR(SBI)”. A mammoth project of this nature calls for intellectual nourishment, professional help and encouragement from many people. We are highly thankful to all of them for their help and encouragement. We wish to acknowledge our great debt to all of them whose ideas and contribution influenced me to complete the project work.DECLARATION I do hereby declare that this project report titled ‘HUMAN RESOURSE MANGEMENT IN BANKING SECTOR (SBI)’ is my genuine work. I have done this project for the partial fulfilment of the requirement for the award of the degree of Master of Business Administration (M.B.A) at Rajdhani College of Engineering & Management, BHUBANESWAR. The project report submitted by me is original and has not been submitted to other institute/examining body or board/ university for the award of any certificate/ diploma/ degree. If at any stage, it is found that I have copied the project report in part or full, from a project report earlier submitted to college or any other examining body, strict action may be against me, which includes cancellation of degree. Bhubaneswar Deepanjali Sahoo July.2021 Regd. No: - 1906283047 TABLE OF CONTENTSChapter No Particulars Human Resource management Meaning Of Human Resource Management Human Resource Management in Banking What is a Bank Job analysis, Job design, and Job evolution Tob analysis Human Resource Planning Recruitment Selection PlacementInduction & Orientation Human Resource Development 5.1 Management Development 5.2 Career Planning & Development 53 Organizational Development 6.0 ‘Compensations Management 6.1 ‘Compensation 7.0 Human Relations 8.0) Human Resource Management in Bank 8.1 HRM in Cooperative Banks 82 HRM in Regional Rural Banks (RRBs) 83 HRM in Public Sector Banks 84 HRM in Private Banks & Foreign Banks 85 HRM in Public Sector Unit Banks (PSU Banks) 9.0 Responsibilities of the Human Resource Management Department in Banks 9.1 Role 92 Responsibilities 10.0 Employee Relation in BanksCurrent Challenges Faced by banks in HRM 12.0 Development in Banks T2.1 Training and Development 12.2 Recruitment 12.3 Selections 13.0 HRM Issues in Public Sector Banks 14.0 Organizational Profile of SBI T5 Data Analysis and Interpretation 15.0 Analysis of Secondary Data 15.1 Analysis of Primary Data 160 Key Findings 16.1 Suggestions and Recommendations 16.2 Limitation of the Study 17.0 Conclusion BibliographyHuman Resource Management or Personnel management is the activity of managing personnel usually employees, In any organization, managing personnel is the process of making sure the employees (not the customers) are as productive as they can be. This can include hiring, firing, or transferring people to/from jobs they can do most productively. This subject is a major at many universities, or a minor in the business school. It is also known as personnel administration, which is functionally an equivalent term, 1 Meaning of Human Resource Management: ‘A business unit needs employees to look after different activities. This is called manpower or human resource. Such human resource needs to be developed fully so that it will make positive contribution for the progress and prosperity of a business unit. For this systematic development and management of human resources is necessary. Human Resource Management (HRM) deals with: @ — Training & Self-development (© Promotions Performance appraisal of manpower recruited in an organization. HRM is an organized learning experience aimed at matching the organizational need for career growth. and development. It isa process involving series of leaning activities designed to acquire desired level of competence among employees. HRM is continuous process andit needs money. Such investment ereates a team of efficient, skilled and trained manpower which brings success and stability to a business unit. HRM programmes offer long term benefits to an organization,CHAPTER. HUMAN RESOURCE MANAGEMENT IN BANKING 2.1 What is a Bank? ‘The word bank is derived from the Italian banca, which is derived from German language and means bench, The terms bankrupt and “broke” are similarly derived from banca rotta, which refers 10 an out of business bank, having its bench physically broken. Money lenders in Northern Ttaly originally did business in open areas, or big open rooms, with each lender working from his own, bench or table. ‘The essential function of a bank is to provide services related to the storing of deposits and the extending of credit, The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services. Currently the term bank is generally understood as an institution that holds a banking license. Banking licenses are granted by financial supervision authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so-called non-bank. Banks are a subset of the financial services industry. Human resource management (HRM) has long been overlooked in the corporate sector in the country where a small section, comprising mostly the multi-national companies was practicing the same. With the growing realization of proper HRM in the corporate sector, it has grown into an important activity. Now the head of HRM is an important member of the senior teams of any thriving business. Although the idea is new for many local businesses where entrepreneurs are at the beginning of the learning curve yet in reality the theme is getting support from the organized entrepreneurs.CHAPTER-3 3.0.Job analysis, Job design and Job evolution A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. It can be explained with the help of the following, diagram job analysis Job description Job specification Job title/ name of the job Qualification Working hours Qualities Duties and responsibilities Experience Working conditions Family background Salary and incentives Training Machines to be handled on the job Interpersonal s ‘As mentioned in the above table job analy: a) Job description Where the details regarding the job are given. b) Job specification ‘Where we explain the qualities required by people applying for the job. Need/importance/purpose/benefits of job analysis Def. - A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job.CHAPTER-4 4.0 Human Resource Planning This is the process which assures the organization that it will have adequate number of qualified Persons, at requisite times, performing in a way to satisfy the needs of the organization & also provide satisfaction to the individual employee, so employed. The process involves: a) Estimating the present & future requirements of human resources based on objectives & long range plans of the organization, Calculation of net human resource requirements based on the present availability ‘of human resources, Taking suitable steps to identify, mould, change & develop the strength of existing employees so as to meet the future requirements, @) Preparation of action plans to acquire the balance human resources from outside the organization & to develop the existing employees. 4.1, Recruitment: It is the process of searching for future employees (requirement) & ensuring they apply for jobs inthe organization It involves a ») ° 0 Identification of existing sources of candidates & developing them, Seeking out & identifying new sources of applicants. ‘Motivating the right type of candidates to apply for jobs in the organization Ensuring a healthy balance between internal & external sources. 4.2, Selection:It isthe process of ascertaining the qualifications, experience, skill, Knowledge, ete, of an applicant to ascertain his/her Suitability for the job applied. This includes: 4) Developing application blanks. b) Creating & developing valid & reliable testing techniques, © Formulating interviewing techniques, &) Checking of references. © Setting up for medical examination policy & procedure. 1) Line Managers to be involved in the decision making, 2) Sending letters of appointment b) Employing the selected candidates, when he reports for duty 4.3, Placement; It is a process of allotting to the selected candidate the most suitable job, as per the job requirements & employee specifications. ‘This function includes: Counseling the concemed managers regarding the placements, Overseeing the follow-up studies, employee performance appraisal to monitor employee adjustment to the job, in the coming days. Correcting wrong/misjudged placements, if any, 44, Induction & Orientation; ‘These are procedures by whicha new employee is rehabilitated in the new surroundings & introduced to the practices, procedures, policies, people, etc. of the organization. It includes: Familiarizing the employee with company philosophy, objectives, policies, career planning & development, company product, market share, history, culture, ete Introduce new employee to the people—his colleagues, supervisors & subordinates, Mould the employees by orientation methods to the new working conditions, 5CHAPTER-5 Human Resource Development This process involves improving, moulding, & developing the skills, knowledge, creativity, attitude, aptitude, values, commitment, etc. based on the present & future job & company requirements. 1. Performance Appraisal: Itis the continuous & systematic evaluation of individual employees with respect to their performance & their potential for future development. It includes: a » ° @ ies, procedures & techniques. Assisting functional managers Reviewing & summarizing reports. Evaluating the effectiveness of various programmes, 2. Training: Itis the process of transmitting the employees the technical & operating skills and knowledge. I includes a » ° ® ° Identification of training needs of the individuals & for the organization. Developing appropriate training programmers. Assisting & advising the management in the conduct of training programmes. Transmitting requisite job skills & job knowledge to the employees. Asces the effectiveness of the training programmes.5.1 Management Development: tis the process of designing & conducting appropriate exccutive development programmes so ‘as to develop the managerial & human _ relations skills of the employees. Tt includes: a) Identification of the areas in which management development is needed. + Conducting development programmers. # Motivating executives/managers. d) Designing special development programmers! assessment procedures for promotions. Usilizing the services of specialists-both internal & external for development &/or Institutional (external) development programmes. Evaluating the effectiveness of executive development programmes. It is the planning of one's career & implementation of career plans by means of educ: training, job search & acquiring of work experience. It includes: A, Internal mobility. Vertical, horizontal transfers, promotions and demotion. B. Transfer- Process of placing employees in the same level jobs where they can be utilized more effectively as per the needs ofthe organization. This also means developing transfer policies, offering assistance & guidance to employees under transfer orders & evaluating transfer policy periodically. C. Promotion-It deals with the upward assignment of employees to occupy higher positions (with better status & pay) in consonance with resources of employees & job requirement ‘The department must ensure that + Equitable, fair & consistent promotions are formulated & administered. ‘Managers & employees are given assistance & guidance on the subject of promotion, Executions of promotional policies are as per policies & procedures. D. Demotion- Itis the downward assignment of an employee in an organization, The department must ensure that * Equitable, fair & consistent demotion policies are drawn up, * Assisting & advising employees regarding demotions. © Ensure fair implementation of demotion Policies & Procedures. 5.3. Organizational Development The planned process drawn up to improve organizational effectiveness through changes in individual & group behavior, culture & systems of the organization—drawing models from applied behavioral science.CHAPTER: 6.0Compensation Management Compensation includes all the extrinsic rewards that an employee receives during and after the course of his sob. For his contributions to the organization, The principles of compensation Payment are that it has to be adequate, equitable and fair to the employees. Compensation encompasses base salary, incentives, bonus and benefits and is based on job evaluation, Job evaluation- itis a systematic determination ofthe value of each job in relation to other jobs in the organization, in the industry and in the market. In other words, job evaluation involves classifying @ job based on its importance and its contribution to the organization and its requirements. It involves > Identifying/designing suitable job evaluation techniques; > Evaluating various jobs; > Ascertaining the relative worth of jobs in various categories. ‘Wage and salary administration - The process of formulat ‘wage and salary program is known as wage and salary administration Ie includes: » Conducting wage and salary survey in the market and in the industry; > Determining wage and salary rates on the basis of various factors like law, equity, fairness and performance;> Implementing wage and salary administration programs: Incentives- Incentives are the rewards an employee earns in addition to regular wages or salary based on the performance of the individual, the tam or the organization Bonus — Bonus is primarily a share in the surplus or bounty and is directly related to the organization's performance. In India, the payment of bonus is a very popular ‘means of rewarding employees and is governed by The Payment of Bonus Act 1965. Fringe benefits — Fringe benefits are those monetary and non-monetary benefits given to employees during their employment, and sometimes, in the post-employment period also, These benefits are connected to employment with the organization and are not related to the employee's performance. ‘These benefits provide a sense of security to the employee and keep them committed to the organization. Some of the marginal benefits include: Disablement benefits Housing facilities Canteen facilities Conveyance facilities Educational facilities for employees and their children Credit facilities Recreational facilities Medical and welfare facilities Post-retirement benefits Company stores Legal aid Bank provide compensations to its employees in shape of Cost of any medical Treatment Cancelled Holidays fees, Repair of vehicle, any injury while doing job tasks and some other. Employees can claim their compensation if any above case occurs. Benefits which are provided .S are Paid time off, Retirement, Disability Insurance, Education and training programs. 10CHAPTER-7 7.0 Human Relations Administering various human resources policies like employment development & compensation & interactions among the employees on one hand & employees & the management on the other, create a sense of working relationships between workers & management & trade unions. Basically they are all interactions between human beings. Human relations, is therefore, is an important area in management which integrates people into work situations in a way that motivates people to work together with economic, psychological & social satisfaction thereby increasing their productivity. Hence Human Resources Management functions will center on: 1, Understanding perception, personality, learning, intra & inter personal relations, inter & intra group relations. ‘Motivating all employees. Promoting employee morale. Developing communication skills. Developing leadership skills. Redressing satisfactorily through a well-defined grievance procedure. Handling disciplinary cases by established disciplinary procedures & in all fairness Providing adequate counseling to solve employees “personal, work & family problems, thereby releasing their stress & strain,CHAPTER-8 8.0 HL RESOURCE MANAGEMENT. Ss ‘The classification of the Indian banks into broad groups such as public sector, old private sector, new private sector, foreign, regional rural banks & cooperatives are largely on the basis of ownership pattern. It is also well known that the business mix, delivery channels & IT strategies Of these organizations vary substantially. What is little known but of greater importance is that each of these banks follows very distinct HR practices which have contributed, substantially, to the business processes. 8.1, HRM in Cooperative Banks Tt is sad that the HR policies of cooperative banks are totally dominated by the Registrar of Cooperatives. This is, perhaps, one reason why the cooperatives are unable to improve themselves. 8.2, HRM in Regional Rural Banks (RRBs) ‘As regards RRBs, most of them adopt the HR policies of sponsor banks, which are not appropriate for their special nature. 8.3, HRM in Public Sector Banks In the recent times, the contours of HR function in public sector banks are slowly but definitely changing. One could say that these banks are discovering the HR function & it is hoped that these banks will fast catch up with others. It may be recalled that, in a controlled environment & to meet with the rapid branch expansion- since 70s- Public Sector Banks (PSBs) have adopted HRM practices similar to that of Government departments. Herein HRM did not have a direct role in business development but was more concemed with centralized recruitment to staff & providing them across the country.‘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, In these banks, recruitment is a continuous process with a strong focus on getting the right person for the right job by offering appropriate compensation, incentives & designations. ‘There is a great energy spent in keeping the turnover low & offering appropriate training inputs. Possibly there are as many pay structures as there are employees. More importantly, HRM has a role in monitoring & mentoring the employee. There are no routine transfers. Rather people are recruited in different geographical locations & different levels. Technology has helped in centralizing the back office & other funetions such that service can be provided from a distance. ‘These institutions adopt a proactive performance appraisal system but still short of 360 Degree appraisals. Their training process is concerned with both skill building & motivating. It should. however be said that the demand for professionals on account of growth of Indian Business is such that the efforts of HRM have not helped it from completely staving off stafT turnover in the ranks. 8.5, HRM in Public Sector Unit Banks (PSU Banks) In the cased of PSU Banks the recruitment process is annual & rge scale. People are recruited at the lowest grade & promoted I due course. This makes the career path of each employee the responsibility of the organization. This also underlies a belief that anyone can occupy any desk. In such a system specialization is the loser. Recruitment at higher levels is a recent phenomenon & more an exception than rule. Pay packets are uniform for a grade/level with annual increments & uniform perquisites. Increments are eared automatically. Transfers are not driven by business requirements but a matter of routine. Vacancies get created as & when people move up.HAPTER-9 ps ies of the Human Resource Management 2b 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. 9.2, Responsibilities: To be the principal sponsor & ~guardian of HR policies in the Bank 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 contribute fully to the task of face by supporting Branch/Unit Managers in continuously developing the po employees & in creating conditions in which all the employees are motivated to meet the objectives of the Bank. To continuously monitor the Bank's strategies to ensure that HR policies are appropriate & that employee numbers & skills are fully supportive of such strategies. To deliver a full range of personnel services in support of line management. These services include manpower planning, recruitment/transfer, remuneration, and training & employee welfare. To support line management in their day-to-day management of the workforce by providing advice & consultancy on personnel & performance management issues.CHAPTER-10 10.0 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.g. Batstone, 1984). Banks have promoted unitarism (Fox, 1966) encouraging an ethos of teamwork, shared interest & loyalty, wanting commitment beyond the cash nexus. While banks are generally seen as having a passive approach to employee relations, 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. The internal labour market created two categories of employees: career & non-career which equated to a ‘male/female divide, Retail banking is a highly labour intensive industry with labour costs forming, 7O%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 produets nor directly for increasing business but to process existing accounts. They have been regarded as an overhead rather than aresource.| Until the 1980s, competition between the Banks has been limited, banks operating as an oligopoly& Government's concem with maintaining economic stability with limits to lending, & control over interest rates facilitated this. The oligopoly fed through to the management of staff as national wage minimized competition for labour. However deregulation led to the collapse of the national system & a questioning of the old employment practices.A time-consuming & hectic job is to hunt the right talent, Higher the professional value of the vacancy, tougher is the search, Identifying the right stuff followed by negotiation is the el which makes the job tough for the employer. Banks are keenly interested to fill up two types of breeds of professionals. Ones who are outstanding professionals with high job hopping attitude— these are those who come in-work for some tome & then leave for better prospects. Others are those who are keenly picked-up, trained & are somehow retained to be developed as future ment within the bank. ‘Management trainees are a growing popular phenomenon where freshly qualified business graduates are engaged by banks & a certain percentage of these well-equipped professionals stay back within the organization to grow into the footsteps of senior managers. Banking jobs being apparently lucrative for many attract a large number of candidates advertised vacancies in media creating a large database management problem. This has been facilitated by specialized hiring agencies who may take up the job of hiring in case of large number of vacancies. Right People: ‘The most difficult agenda of HRM across the banking sector is to retain the right people. 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. A bank in a normal course invests time & money to hire & train the appropriate workforce for its own operations. This readymade force is often identified & subsequently picked-up on better terms by others.Compensation: How much to pay the right employee & how much to the outstanding performer. Banks have traditionally followed pay scales with predetermined increments, salary slabs, bonuses & time based fringe benefits like car & house advance, gratuity, pensions, etc. The situation is not the same anymore. An increment of Rs.500-800 per annum is no more a source of attraction for a professional anymore. A basic pay with traditional formulas of linkage with medical & other facilities has no soothing today. ‘A promise of future growth, learning culture & corporate loyalty is out of dictionary & does not ‘mean anything to this energetic & competent performer today. A waiting period of 3-4 years in each cadre haunts the incumbents who strongly believe in immediate compensation. A freshly hired professional requires a brand new car or car loan n resuming office quite contrary to his previous breed of bankers who would wait for the job seniority to qualify for a car loan. Job Satisfaction: Everybody in the bank wants to work in the preferential department, preferential location, his own choice & boss of his liking. An administrative deviation from any of these results in lowered job satisfaction. Although hiring is normally based on regional requirement matching the area of activity with that of employee's nativity yet other elements like appointment in the department of choice & preference makes the job of HR manager quite challenging. ‘What the HR manager cannot afford is the dissatisfied employee who not only disrupts the smooth working him, but also spreads the negativity to others by his de-motivated attitude. Morale Boosting: ‘What has long been overlooked is the morale boosting of the employees by the organizations. Human beings even if satisfied of material wellbeing need to be appraised & encouraged constantly. ‘Smart banks have realized this need & have taken steps to keep their work force motivated through proper encouragement like man of the mouth awards, repeat get-togethers, conferences, sports events, dinners, company sponsored travel, reunions, ete. This is the way employees create a feeling of belongingness.HAPTER-12 12.0 DEVELOPMENT IN BANKS. The banks must emphasis on human resource development as one of the critical areas of its operations. 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. 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, The concept of segment specialization may be resorted to in respect of the personnel selected therefore, It is now thought expedient to plan & strengthen the squad of skilled officers in various segments as IT, marketing management, risk management, risk based supervisors, law, security, ete: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, Human resource skills are other areas of challenge. Because of modernization & technological nt rigorous training & man power planning are required. In the market scenario characterized by heightened competition, customer needs & technological up gradation, the bank fine tunes its HT policy to meet its corporate objectives. 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. The Industrial Relations in the banks have been harmonious & cordial121 TRAINING & DEVELOPMENT Meaning & Definition: Training: Organization & individual should develop & progress simultaneously for their survival & attainment of mutual goals. So every modern management has to develop the organization through ‘human resource development, Employee training is the important sub system of human resource management, Employee training is a specialized function & is one of the fundamental operative functions for human resources management. After an employee is selected, placed & introduced he or she must be provided with training facilities. Training is the act of increasing the knowledge & skill of an employee for ding a particular job. Dale S. Beach defines the training as -the organized procedure by which people lear knowledge & skill for a definite purpose | The training system in the banking industry has a strong structural base However, in the past the training activities have been more ritualistic due to absence of astrategic link between training & human resources development, Today, 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, The training establishments need to be actively involved in the total training process starting from the identification of the training needs, evaluation of taining effectiveness & the benefits of training to the end users viz. the internal & external customers, The need for training & development is determined by the employee's performance deficiency, computed as follows: We can make a distinction among training, education & development. Training, as was started earlier, refers to the process of imparting specific skills. Education, on the other hand, is confined to theoretical learning in the classrooms. Training & Education Differentiated: 19TRAININ EDUCATION Application oriented Theoretical oriented Job experience Classroom learning Specific tasks General concepts Narrow perspective Broad perspective Development: -Give a mana fish, & you give him meal. Teach man to fish, & you give him a livelihood. ‘This ancient Chinese proverb seems to describe the underlying rational of all raining & development programs, No banking organization can long ignore the training & development needs of its employees without seriously inhabiting the performance. Even the most careful selection does not eliminate the needs for training, since people are not molded to specifications & rarely meet the demands of their jobs adequately This HRM function deals with the overall development of the employees. This includes their professional & well as their personal development. It is a part of HRM function to identify opportunities for enhancing the skills of the resources. Promotion is regarded as one of the ways, of recognizing development undertaken by an employee. Development is also largely dependant on training. Generally people think that training & development are one & the same, but there are many differences between them.v Assessment of Training v Establishment of Training Goals12.2, RECRUITMENTs ‘Meaning and defini ‘The human resources are the most important assets of an organization, The success or failure of an organization is largely dependent on the caliber of the people working therein. Without positive and creative contributions from people, organizations cannot progress and prosper. In order to achieve the goals or the activities of an organization, therefore, they need to recruit people with requisite skills, qualifications and experience. While doing so, they have to keep the present as well as future requirements of the organization in mind, Once the required number and kind of human resources are determined, 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. Recruitment is defined as, — 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 Objectives of recruitment me 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. Process of Recruitment: Recruitment refers the process of identifying and attracting job seekers so as to build a pool of qualifies applicants. This process comprises of five interrelated stages, viz,> 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, when offered to approach the ideal people, individuals responsible for recruitment process must know how many types of employees are needed, where and how to look for individuals with appropriate qualifications and interests, what inducements to use for various types of applicants group, how to distinguish applicants who are unqualified from those who have a reasonable chance of success, and how to evaluate their work, 123, 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. 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. The selection procedure cannot be effective until and unless- Requirements of the job to be filled have been clearly specified. Employee specifications (physical, mental, social, behavioral ete) have been clearly specified. Candidates for screening have been attracted. Selection process is preferable because: > It is easier for applicant as they can send their applications to a singlecentralized departmenvagency > It facilitates contacts with applicants because issues pertaining to employment canbe cleared through one central locationIthelps operating managers to concentrate on their operating responsibilities. This i helpful during peak operating period. It can provide for better selection because hiring is done by specialist trained in staffing techniques. The applicant is better assured of consideration for a greater variety of jobs. Hiring cost may be cut because duplication of efforts is minimized Selection Process: The selection process consists of the following steps: 1, Application form: Many companies formulate their own style of application form depending upon the size and nature of business carried on, type and level of the job ete, Information is generally required on the following items in the form: personal background, educational attainments, work experience references etc 2. 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, his aptitude ‘oning, knowledge in various disciplines, English language etc. 3, 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, Preliminary Interviews are short. This interview thus provides information about the candidate related to the job or personal speci 4, 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, Some of the most common and well-known tests that an applicant has to go through are; 8) Aptitude testPersonality tests: This is common mostly for the higher levels of management are given to measure a prospective employee's motivation to function in a particular working environment Internal test: To measure an individual's activity preferences. Graphology Test: is an art wherein the individual's handwriting is seen and accordingly his personality traits are derived by the way he writes. Polygraph Test: Are designed to ensure accuracy of the information given in the applications f) Medical Tests: Reveal physical fitness of the candidate. 8) Drug test: Help to ensure the presence of illegal or Performance- affecting drugs. 1. References and background checks: Many employer request names, address, and telephone numbers or references for the purpose of verifying information and, perhaps, gaining additional background information on an applicant. 2. Selection Decision: After collecting data from all the preceding steps, this is the most crucial step in the entire selection process. 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, interviews and reference checks. 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. The HR manager plays a crucial role in the final decision | Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test, The result of the medical fitness test is recorded in a statement and is preserved in the personal records. The main objectives of this test are as follows: To detect if the individual carries any infectious diseases. To determine whether an applicant is physically fit to perform the work Ithelps to determine if there are any physical capabilities which differentiate successful and less successful employees.> Medical checkup protects applicants with health defects from undertaking work thatcould be detrimental to them or might otherwise endanger the employer's property. > Last, 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. 1. Job offer: The next step is selection process is Job offer for those applicants who had passed the previous stage. Job offer is made through a letter of appointment, Such a letter usually contains the date by which the appointee must report on duty. 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. Company may also want the appointee to delay in joining the job because the job may require undergoing some training program. Decency demands that rejected applicants must be informed about their non-selection. These applicants’ data must be used for future references. 2. Contract of employment: After the job offer is made and the candidates accept the offer. certain documents need to be executed by the employer and the candidate. One such document is ‘Attestation form. This form contains vital details about the candidate, which are authenticated and attested by him/her, which could be used for future reference. Another document is contract of employment. This document contains the terms and conditions of employment like designation, perks, term of job and so on. The information written in the contract may vary according to the level of the job. The main drawback of the contract is that itis difficult to enforce them. 3. Concluding the selection process: The selection process will not end with executing the employment contract. The step is reassuring the candidates who have not been selected. Such candidates must be told that they were not selected, not because of any serious deficiencies in their personalities, but because their profiles did not match the requirements of the or; 4. Evaluation of selection process: The broad test if the effectiveness of the selection process is the quality of the personnel is hired. An organization must have competent and committedpersonnel, The selection process, if properly done, will ensure availability of such employees. Audit must be conducted by the people who work independent of the HR department New methods of selection: 1.360 degree selection or participative select Normally supervisors administer the selection test and interview. They judge the job and the candidate. But the employee skills, knowledge and performance affect not only superiors but also subordinates and the employees of the same level. Hence the organization started involving the subordinates and the employees of the same level in administrating theemployment tests and interviews. This type of selection program is called 360 degree program 2. Employee leasing: ‘The client company leases employees from a third party, not on temporary basis but on a fulltime basis and for long help. An interesting feature is that the client company need not perform personnel activities such as hiring compensation or record keeping. Employees working elsewhere are leased. They are not directly employed by the company where they are working. Employees not recruited by one client are sent to another. 3, Selection by invitation: Management observes the performance of the key executives of competitors. If the performance of the key executives is excellent or the key executives are the change agents, the management invites them to join the organization by offering attractive salary and benefits. Thus, the significant performance of the executives forms basis for selecting them by invitation,Background: Among the 12 services classified under the services definition of GATS, banking is one of the prominent one. Banking industry in India is one of the most diversified and heterogeneous in terms of ownership; co-existence of private and public sector is one of the best examples of peaceful co- existence of two entirely different cultural systems in the services sector. Coupled with that, the country has a large number of foreign banks with altogether a different work culture and climate. The simultaneous existence of so many types of work ethos, systems and processes are truly symbolic of the great Indian unity amongst diversity. Notwithstanding the fact that lots of efforts have gone into bringing technological & process congruence, itis really unfortunate that very little has been done on the human resource front in this regard, Unfortunately, public sector banking has been the biggest victim, being governed by outdated & prohibitive sets of government guidelines. The Management often complains lack of adequate power and flexibility: the Trade Unions often look at any directional change with a sense of suspicion; majority of the workforce remains in dream-world of the pre-liberalized scenario of ‘work security. The result is that public sector banks are least concerned about human resource management and reforms thereto and consequently remain under-productive. ‘Though renaming of Personnel departments to HR departments took place quite a few years ago in some of the public sector banks, the work processes & culture in many of them till today remain outdated and are not in a position to meet changing expectations of the human talent within. The scope of this is limited to address some of the fundamental issues in areas of human resource management front in the public sector banking in India,HAPTER-14 areda Re aa State Bank of Inc State Bank of India is the largest and one of the oldest commercial bank in India, in existence for ‘more than 200 years. The bank provides a full range of corporate, commercial and retail banking services in India, Indian central bank namely Reserve Bank of India (RBI) is the major shareholder of the bank with 59.7% stake. The bank Total is capitalized to the 359.237 billion with the public holding (other than promoters) at 40.3%. SBI has the largest branch and ATM Network spread across every corner of India, The bank has a branch network of over 15004 branches (including subsidiaries). including 157 foreign offices in 41 countries around the world making it The Largest Banking and Financial Services Company in India, comespondent relationship with 520 Intemational banks in 123 countries, In recent past, SBI has acquired banks in Mauritius, Kenya and Indonesia, The bank had total staff strength of 292,215 as on 3ist January, 2013. Of this, 29.51% are officers, 45.19% clerical staff and the remaining 25.30% were sub-staff. The bank is listed on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the London Stock Exchange. SBI group accounts for around 25% of the total business of the banking industry while it accounts for 35% of the total foreign exchange in India, With this type of strong base, SBI has displayed a continued performance in the last few years in scaling up its efficiency levels. Net Interest Income of the bank has witnessed a CAGR of 13.3% during the last five years. During the sameperiod, net interest margin (NIM) of the bank has gone up from as low as 2.9% in FYO2 to 3.40% in FY06 and currently is at 3.32%. ‘State Bank of India Imperial Bank of India Mumbai, Maharashtra, India 1900 July 1995 Workers 19000 in 2006 292215 in 2012 Branch 12000 in 2006 15004 in 2012 Asset 274 billion 359,237 billion Establishments 2 June 1806 1969 nationalized Government of India State Bank of India Overview State Bank of India is a largest commercial Bank in India entity on the corporate scene having diversified business interests that include Financial Institution, The State Bank of India, the largest public sector bank of India, offered voluntary scheme (VRS) to trim its workforce as recommended that the banking industry was overstaffed, SBI implemented a VRS or the -Golden Handshake system. The vast workforce that was once re of SBI's strongest assets became a liability following the computerization of the bank. The introduction of this scheme leads to strong protests and SBI faced with a prospect of losing its talented employees and be left with less efficient employees (2012).Quality is our essence and we, at State Bank of India, have always stressed on the Qualitative aspect. Consequently in this run for quality, quantity has always pursued us. We look forward to reaching the zenith and reaffirm our commitment to the process of sound nation-building CORE COMMITMENTS - OUR STRENGTH Emotion Discipline Duty No discrimination Quality Give respect Self-respect ‘Truth Collective Materialism Religion Absolute Honesty 00000000000 A commitment of State Bank of India to the genuine needs and rights of anybody & everybody Be it to a depositor, Share Holder, consumer. ..all business associates and Sahara India Family Members. India needs effective consumer protection and protection of workers’ genuine rights. There are various agencies, promising protection & action, But no external body can provide justice unless the company becomes ‘QUALITY CONSCIOUS’ WITH STRICTLY NO DISCRIMINATION POLICY AND JUSTICE CONSCIOUSNESS as its very dominating nature. Motto We not only believe but practice NO DISCRIMINATION, JUSTICE & HIGH QUALITY - means enthusiastic, productive performance of duty "KARTAVYA' towards the consumer’, workers’ genuine satisfaction, To provide justice - be it a matter of the tiniest imperfection or injustice in our COMMITMENT - products or services. Direct or indirect, short term or long term,Kindly rush your grievances/suggestions or any queries related to State Bank of India Services to the nearest $.B.I Branch establishment and/or to: —Response Will Never Be Delayed and Justice Will Never Be Denied] BUSINESS ENTITIE:HAPTER-15 DATA ANALYSIS AND INTERPRETATION 150 ANALYSIS OF SECONDARY DATA ‘Training and Development Function in Banking Sector TNL Training calander Training budget Training feedback nanuals leoncept paper IT support ProjecSummer raining Induction ‘manual/ppt Training feedback evaluation Admin task Database ‘management MIS-T&D Module desi Module development © Internal TNT © External TNI ProducuProcess Training ProjecvSummer wwaining HRIS support Best HR, practices Internal © External Concept Development Write-ups& Briefing Training Evalua PDe-manval Project’summe ‘TEAMMEMBERS Library mgmt © Books, © Journal + Newspape Dak(niout) database Record Maintenance Admin follow Up Bulletin/Boar d ‘management15.1 ANALYSIS OF PRIMARY DATA What do you understand by training? [leaning [Enhancement of knowledge, skill Kattitude Sharing information I of the above ANALYSIS mLearning Enhancement of knowledge, skilattitude ‘= Sharinginformation mAllof the above ‘The above result shows that most of the State Banks of India Employees are well aware of the definition, inputs and purpose of the training program. They are self-motivated to attend such training program as it will result in their skill enhancement & improving their interpersonal skill,CHAPTER-16 16.0 KEY FINDINGS Mostly all the State Banks Of India Employees are well aware of the role and importance of the training They are self-motivated to attend such training program as it will result in their skill enhancement & improving their interpersonal skill. Corporate HR, State Banks of India, time to time training is provided to all the Employees and it is continuous proces: Two types of training are provided to the Employees by State Banks of India induction training and soft skill development training. Questionnaire is the most popular mean of evaluating the training program in State Banks of India. Most of the Employees feel that interview is the most appropriate method of evaluating the training program. Post training evaluation focus on result rather than on the effort expended in conducting the training and it worth the time, money and effort. Most of the participants are benefitted by giving feedback after attended the training. It motivated them to do better, helped them to increase their job performance and is an aid to future planning. In State Bank Of India , post training evaluation is used to identify the effectiveness and valuation of training program, to identify the ROI(return on investment), to identify the need of retraining and to provide the points to improve the training16.1 SUGGESTIONS AND RECOMMENDATIONS ‘The management must commit itself to allocate major resources and adequate time to training. Ensure that training contribute to competitive strategies of the firm. Different strategies need different HR skill for implementation. Let training help employees at all levels acquire the needed skill Ensure that a comprehensive and systematic approach to training exists, and training and retraining are done at all levels on a continuous and on-going basis. Ensure that there is proper linkage among organizational, operational and individual training needs. Skill based training (produet/process training) should also be provided. Besides questionnaire other methods of post training evaluation should also be used like interviews, self-diaries, observation and supplement test. The evaluation procedure must be implemented concerning trainer, trainee and subject Post training feedback has to be continuous and should also be taken from line manager/superior & from peers to find out the effectiveness and valuation of trainingION OF THE STUDY, The study is limited to the State Bank of India NCERT BRANCH. So the study is subject to the limitation of area. The time period of the study was only two weeks which may provide a deceptive picture in comparison of the study based on longrun. Sampling size was of only 20, because only these people had attended sofi skill development training State Bank of India only provides soft skill development training, not skill based (product/process) training. So how can one evaluate the skill based training is still unresolved. The study is based only on secondary & primary data so lack of keen observations and interactions were also the limiting factors in the proper conclusion of the study.17.0 CONCLUSION Today, banks focus on designing programs and process and services to attract, develop and retain top talent. Utilizing the latest technologies HR team has launched sophisticated online systems that provide the employees with details on benefits, compensation, special programs and internal job opportunities. As a global employee population continues to grow, these cutting edge activities are increasingly important to the deliver world-class HR solution The core function of HRD in the banking industry is to facilitate performance improvement, measured not only in terms of financial indicators of operational efficiency, but also in terms of the quality of financial services provided. Factors like skills, attitudes and knowledge of the human capital play a crucial role in determining the competitiveness of the financial sector. The quality of human resources indicates the ability of banks to deliver value to customers. Capital and technology are replicable but not the human capital which needs to be valued as a highly valuable resource for achieving that competitive edge. The primary emphasis needs to be on integrating human resource management strategies with the business strategy. HRM strategies include managing change, creating commitment, achieving flexibility and improving teamwork. The other processes representing the overt aspects of HRM are recruitment, placement and performance managementBIBLIOGRAPHY BOOKS HRM IN BANKING [TY BCBI] PERSONNAL MANAGEMENT/HRM - BHATIA S.K. HRM: Contemporary Prospective - BREADWELL, IAN, HOLDEN, LEN HRM &INDUSTIAL RELATIONS - SUBBA RAO CASE AND EXERCIES IN HRM -— GEORGE, STEVENS PERSONNEL MANAGEMENT - MAMORIA, C.B. www.google.co.in suww.personnelonline.com