Project Report

Impact of Educational Background on

Behaviour Pattern of Employee working
in Banking Industry
 IIPM

PROJECT REPORT

ON

Impact of Employee educational background on

Behaviour pattern in Banking Industry

Submitted to: Submitted by:

IIPM MOAZZAM QUDDUSI

Rajpur Road Dehradun PGP/SS/2009-11 BATCH

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ACKNOWLEDGEMENT

I am highly grateful to IIPM, Dehradun which has provided me a splendid

opportunity to be a part of this Project Report. I am also thankful to My Dean
Sir, Dehradun which has given me a platform to enhance my knowledge.

Any accomplishment requires the efforts of many people and this work was no
different. I would like to extend my sincere gratitude to under whose guidance
I have done this project. I also express my thanks to my mentor G.S. Rawat Sir,
for the valuable guidance and help in completion of this project.

It has been a marvellous learning experience; also it has prepared me for the
corporate world.

Lastly but not the least I thank the Almighty God, my parents and friends for
being my moral support.

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 CONTENT

S.NO TOPIC PAGE NO.

1 EXECUTIVE SUMMARY 5

2 INTRODUCTION 6,7

3 OBJECTIVE OF THE STUDY 8

4 LITRATURE 9, to 25
 HR PRACTICES IN BANKING
 WHY EDUCATION IS REQUIRED FOR THE JOB?
 WHAT IS HUMAN BEHAVIUOR?
 MASLOW THEORY
 HOW EMPLOYEE EDUCATIONAL BACKGROUND DOES
AFEECT HIS BEHAVIOUR?
 EMPLOYEE BACKGROUND SCREENING
 EMPLOYEE EDUCATIONAL REQUIREMENT FOR TODAY’S
BANKING

5 CONCLUSION 26

6 BIBLIOGRAPHY 26

Executive Summary

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Human resource is most valuable asset in the organization profitability of the
organization depends on its utilization. Proper utilization leads to profit
maximization. So, right man should be procured at right place and in right
time, otherwise their proper utilization may not be done.

Employee selection process should be based on proper job description and

specification. Educational background does affect employee behaviour and
his/her performance which interrelate with organizational yield and
productivity too.

Indian banking industry is an emerging sector and the HRM practices are
required for its effectiveness. Today, in the world of technology banking sector
also has been empowered through IT revolution.

The implementation of IT, made banking easy and fast. Today, banking
industry growing at a robust rate which not only serving Indian people but also
strengthening our economy too.

But with the implementation of IT, there is a big challenge to make employees
acceptable and productive. Because earlier, employees used to work in a
traditional way of banking and the changes needs their acceptance. They have
to be educated as per the requirement of today’s job.

It came to see that employee educational background does affect his/her

behaviour which directly interrelated with job performance.

Industry introduction

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The banking industry is the backbone of any monetized economy. The stage of
development of this industry is a good reflection of the development of the
economy.
The banking industry in India is governed by Banking Regulation Act of India,
1949. Since 1949, this sector has undergone phenomenal reforms due to the
efforts and the vision of the policymakers. The first phase of reform began with
nationalization of the 14 banks in 1969. At this stage, priority sectors were
identified and banking support was given to them. The second phase was the
nationalization of 6 more banks in 1980. However, what can be considered as a
breakthrough in banking services was the entry to private sector banks which
was initiated in 1993. Eight new banks entered the market at this stage with
state – of – art technology and a brought with them a new wave of
professionalism. It was at this time that India was introduced to the concept of
Debit and Credit cards, e-transfer of funds, ATM and mobile banking. It was at
this time that competition was truly introduced in this sector.

At present, the industry is in the makeover mode. The Public Sector Banks
(PSBs) are in the midst of rejuvenation process with exercises like downsizing
the units, reducing the volume of Non Performing Assets (NPAs). They are
gearing themselves for the fierce competition that is posed by the private
banks.

Private Banks, on the other hand, are in the consolidation mode. Big banks are
getting bigger. Small banks are being taken over by the bigger ones. Mid –
sized banks are expanding.

The sector is in the growth stage with many new products and services offered
and a wide market base tapped. Quality of assets has improved and the
confidence in the system is building up due to the increased transparency
norms. Government interference is also gradually reducing.

During the year 2000, the State Bank Of India (SBI) and its 7 associates
accounted for a 25 percent share in deposits and 28.1 percent share in credit.
The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5
percent of credit during the same period. The share of foreign banks
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(numbering 42), regional rural banks and other scheduled commercial banks
accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in
deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in
credit during the year 2000.about the detail of the current scenario we will go
through the trends in modern economy of the country.

Objective of the Study

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The main objective of the study is to find out the impact of employee
educational background on behaviour pattern working in banking sector in
India. Indian banking sector is emerging and growing at a robust rate and
strengthening our economy as a whole.

Human Resource Management is a key part of an effective and productive

Organization/Industry. In the same way banking sector of India requires its
practices to increase its effectiveness as a whole.

Here we are lighting up how HRM practices does effect the organization
effectiveness. There are some queries which have to be clear through this
project. They are as follows:

 Why education is required for the job?

 What is human behaviour & its dimension
 How education & behaviour is interrelated?
 What is the impact of Employee educational background on his/her
behaviour?
 What are the job requirements of today’s banking?

Literature

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Human Resource

HRM contributes to organizational performance in different ways: through

sound functional basics; through effective realignment when the external

environment changes; and by building an organizational context to that the

organization can cope with the dualistic forces ( 2002).

Human Resource in Banking

The core function of HR in banking industry is to facilitate the performance

improvement among its people. Factors such as skills, attitudes and knowledge

of personnel, play a critical role in determining the competitiveness within the

organization or the industry (2002). The quality of human resources indicates

the ability of banks to deliver the value to clients or customers.

Indian banking industry has been an important driving force behind the

nation’s economic development. The emerging environment poses both

opportunities and threats, particularly to the public sector banks, as well as the

human resource in changing economic and business environment. The primary

emphasis needs to be on integrating human resource strategies with the

business strategy. Above the aspects of recruitment, placement, performance

management, rewards and employee relations - a radical transformation of the

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existing personnel structure in public sector banks like the seniority over

performance is not the best environment for attracting the best talent from

the young competitive environment. However, recruitment practices as well as

on-the-job-training and redeployment are considered as one of those many

improvements of HR in Indian Banks (2002).

HRM Background and Practices

To make the Indian Banking System stronger, efficient and low-cost, the

creation of fundamentals must include in the bank’s operations, strategies and

processes: strengthening the prudential norms and market discipline; adoption

of international benchmarks; management of organizational change and

consolidation within the financial system; upgrading the technological

infrastructure of the financial system; and human resource development as the

catalyst of the transformation (2002).  

The Human Resource field in the Banking Industry is considered as one of the

process of discovery and transformation. The field of Human Resource can be

described as emergent and dynamic within the cultural business aspect in a

Banking Industry. The success of today’s banking business will sparsely

depends on the human resources of the organization, in which plays a crucial

role in providing the services needed.

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The evolution of banking system in India affected the human resource

practices, recruitment and selection practices, and training system. It is very

important that the details of human resource are discussed along with the

employees, to build their own career planning, perceptions and development.

The primary strength of the industry is the human resource that is why the

efforts to develop the skills and management are the main subject placed

before the human resource. A major challenge for many banks will be to

develop the special competencies and skills for credit appraisal and risk

management. Putting the information technology is a key contributed in

human resource development. Therefore, the HR model of the future will

require professionals to be both driving and anticipating change,

understanding the complexities of the new business environment and forces

shaping it (2002).

HR Practices and Methods

A key focus of the human resource management is highlighted in the role of

staffing, performance management, training and development, and

compensation that plays indifferent types of business strategies. With the

acquisition and preparation of human resources, including planning,

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recruitment, selection, and training can affect the whole organizational

performance (2006).

 The HR planning, the start of the strategy, illustrates the process of

developing human resource plan. The strengths and weaknesses of

staffing options such as outsourcing, use of contingent workers, and

downsizing are involved in planning.

 The recruitment process is done strategically to determine the talented

employee fit for the position.

 The selection process emphasizes the ways in minimizing errors in

employee selection and placement to improve the company’s

competitive position. The selection method standards such as validity

and reliability are utilized.

 An effective training systems of the manager’s role in determining

employees’ readiness for training, creating a positive learning

environment, and ensuring the training is used on the job.

Beyond the human resource strategies are the rewarding and compensating

that can strengthen or weaken the employee effectiveness. In order to give

recognition and increase motivational levels amongst the employees, some

Banks linked the individual performance in an incentive scheme – or for some

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rewards that may come into any form (2006). In summary, all of the HRM

strategies and function should be aligned to help the company meet its

objectives – as well as focusing on their customers (2006).

The best practice approach assert that certain HR practices are found to

consistently lead to higher organizational performance, independent of an

organization’s stated strategy. The high performance HR practices foster

innovation through the development of innovation values, encouraging of

information sharing, goal setting and appropriate training and development.

The major innovations in Hr practices occurred when senior line managers take

the lead and their adoption depends on the attitude of top management and

their relationship with the HR department (2007).

Why education is required for the job?

Making better decisions at the local level is education and experience.

Continuing education can help an organization meet or enhance its quality,
increase overall communications, and improve productivity. When people feel
they have exhausted their learning opportunities within the organization, they
often leave in search of new experiences. Employees that are learning are
more likely to stay longer. Self-motivated lifelong learners are better able to
stay abreast of changing technologies. Employees that are encouraged to be
lifelong learners will strive to attain the highest degree of expertise and
professionalism.

A relatively small investment in education is returned to the organization in the

form of a more motivated workforce. Research supports the proposition that a
10% increase in spending for employee education will increase productivity by
11% or more. An employee who has exposure to the innovations occurring
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within their area of expertise will certainly yield a savings to the company
bottom line. When measuring the rate of return an employee brings to the
organization, education always adds value. Company sponsored education can
foster stronger bonds with employees. Most employees will not forget that the
company paid for their education.

What is human behaviour?

Human behavior is the population of behaviors exhibited by humans and

influenced by culture, attitudes, emotions, values, ethics, authority, rapport,
hypnosis, persuasion, coercion and/or genetics.

The behavior of people (and other organisms or even mechanisms) falls within
a range with some behavior being common, some unusual, some acceptable,
and some outside acceptable limits. In sociology, behavior is considered as
having no meaning, being not directed at other people and thus is the most
basic human action. Behavior should not be mistaken with social behavior,
which is more advanced action, as social behavior is behavior specifically
directed at other people. The acceptability of behavior is evaluated relative to
social norms and regulated by various means of social control.

Maslow theory

Abraham Maslow developed a theory of personality that has influenced a

number of different fields, including education. This wide influence is due in
part to the high level of practicality of Maslow's theory. This theory accurately
describes many realities of personal experiences. Many people find they can
understand what Maslow says. They can recognize some features of their
experience or behavior which is true and identifiable but which they have
never put into words.

Maslow is a humanistic psychologist. Humanists do not believe that human

beings are pushed and pulled by mechanical forces, either of stimuli and
reinforcements (behaviourism) or of unconscious instinctual impulses
(psychoanalysis). Humanists focus upon potentials. They believe that humans
strive for an upper level of capabilities. Humans seek the frontiers of creativity,
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the highest reaches of consciousness and wisdom. This has been labelled "fully
functioning person", "healthy personality", or as Maslow calls this level, "self-
actualizing person."

Maslow has set up a hierarchic theory of needs. All of his basic needs are
instinctual, equivalent of instincts in animals. Humans start with a very weak
disposition that is then fashioned fully as the person grows. If the environment
is right, people will grow straight and beautiful, actualizing the potentials they
have inherited. If the environment is not "right" (and mostly it is not) they will
not grow tall and straight and beautiful.

Employee attitude can point out future behaviour trend

The Hindu

26 March 2009

Attitude of a person is reflected in his behaviour. Research has repeatedly

proved that knowledge about a person’s attitude helps anticipate his future
behaviour. This knowledge has great significance at the workplace. Managers,
therefore adopt various means to extract information about the attitude of
their employees.
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Managers consider attitude as a decisive factor in various situations. Before
offering a potential candidate a job, they consider his attitude towards work
and the organisation. Before assigning a leadership role to an employee they
find out what he thinks about growth and success. Similarly while forming
teams; they examine the potential team members’ attitude towards each
other and to teamwork. Changes are inevitable in organisations. And each
employee responds to the change guided by his attitude. For example, when
there is a merger, employees who are highly competent generally have an
attitude to accept challenges. This kind of employee accepts the change with
optimism and even helps others to cope with the change. Some employees will
remain calm till they encounter a problem. Such employees do not create
unnecessary problems by responding hastily. On the other hand, there are
some employees who perceive everything negatively. Such employees must be
tackled with a well-planned strategy. Else they will lose their morale,
experience insecurity and even influence others to believe their distorted
perceptions. Work teams consist of employees who hail from different
backgrounds, cultures, beliefs and attitudes. This applies specifically to
companies with a culturally diverse workforce. To maintain a balance of skills,
such diversity can be unavoidable. In such cases, managers must inculcate the
right attitude in subordinates. Managers must try their best to gather as much
information as possible on the attitude of their employees on various aspects.
This gives them a fair knowledge about how they will react to a situation.
Thereby they can devise a suitable action plan to tackle any future challenges.
Collecting information on employee attitude is not a one-time task. Attitudes
of people keep changing according to their experiences. This explains the
reason for the sudden change in behaviour of some employees. For example a
dedicated employee loses a promotion to his colleague. He feels defeated and
jealous. This is reflected in his underperformance. Even worse he can start
conspiring against the colleague and the manager. Thus, managers must keep
an eye on such issues to avoid negative repercussions.

While observing the responses of an employee to various subjects and

situations is one way to get insight into his attitude, attitude surveys are
another. Attitude surveys are conducted in two ways. One is to ask the
employee himself and his colleagues to tell about his attitude. Another is to
pose questions on the subject towards which the attitude of the person is
being assessed. The set of questions must be carefully and sometimes a little
craftily framed to get the right information. Using more than one means of
assessing the attitude and recording the conclusions frequently gives good
results.

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Though the attitude of a person towards a subject is well known, many times it
is not feasible to access his behaviour accurately. The reasons behind this are
several. For instance an employee who detests a colleague suddenly starts
befriending him to get a deal signed. This is because his attitude towards the
deal is stronger than his attitude towards the person. Or an employee who was
pro-employee union earlier attends an anti-employee union meeting when he
is promoted to a high level. Here he is forced to do it by virtue of the duties in
his new role. Therefore behaviour is not guided completely by attitude. There
is another interesting aspect about attitudes. When a person keeps behaving in
a specific manner for sometime against his basic attitude, his attitude can
actually change to match his behaviour.

Attitude and behaviour, both, play important roles in the growth of individuals
and affect each other. Hence maintaining the right attitude and behaviour in
employees is necessary for the organisation to succeed.

How employee educational background does affect his behaviour?

Today, in India, population is growing day by day and the sources of

employment getting low. Each and every field have a tough competition for the
job seekers. Companies also want to maximize their profits because they are
also facing a tough competition in the market. So they want a suitable and
productive employee who can give the yield to the company in this
competitive environment.
Employees are entitled to have strong educational background to face the
today’s job requirement. Educational background not only affects the
employee future in the organization but also does affect the employee
behavior in different ways. If the employee is strong enough with his
educational field as required, will have a positive impact in his behaviour. But
on the other hand if the employee is leg behind as per the job requirement,
will have the negative changes in his behaviour. There are some below given
points which can elaborate the impact on behavior of the employee.

 If the employee having a strong educational skills and not gets the
suitable job according to his profile, will have a negative impact like lack
of motivation irritation, psychological changes, attitude changes,
mentally disturbance, and insecurity e.t.c.

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  If employee is not fit for the job requirement and having a less strong
educational background, will also have the negative impact.

 But if the employee is fit for the job as per the requirement, will have a
positive impact in his behaviour like confidence & motivation building,
high level of competency, job satisfaction, attitude, security e.t.c.

Employee Background Screening

‘Employee Background Screening Services’ is a way to find out as much as

about the skills and behaviors an applicant will bring to an organization," Pre-
Employment Background Screening is the process of thoroughly verifying the
educational and professional qualifications and employment history of a job
applicant and conducting a search of appropriate public records in order to
ascertain any information, which is relevant to his or her application. The
results of the process are fully documented in a standardized, easy to read
report.

Between 10% and 15% of the candidates for a BPO/ITES job make false claims
in their applications, according to industry sources. Overstatement of
credentials and previous background by applicants has led to BPO firms
seeking help from external professional service screening agencies to conduct
identity verification, pre-employment status, past criminal records, and other
background checks.
So spurt in employment opportunities generated by the booming IT-enabled
services and business process outsourcing (ITES/BPO) sector has spun off an
ancillary industry - companies screening the background of prospective
employees. Checks on backgrounds and building effective methodologies to
blacklist people with bad track records is one of the ways to deal with a
problematic scenario and demonstrates the urgent need for individual checks
and verification before hiring. EBS - Operates around the notion that
employers have a need and a right to know about the individuals they are
bringing into their organization the consequences of not knowing are
potentially devastating, especially for smaller businesses.

There are basically two types of Employment Background Screening they are as
Follows:-
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  Pre- Employment Background Screening
 Post- Employment Background Screening

Pre- Employment Background Screening Services is basically deals with the

screening the employees which is mainly considered the basic hygienic
measures before they are recruited for the particular post in the organizations

Post- Employment Background Screening Services is basically deals with the

screening the employees which is also considered as the basic hygienic
measures it basically deals with the screening the prospective existing
employee those who are working in the organization.

Both pre and post employment screening services are important and
considered the basic hygienic measures from the organization point of View,
though Post employment screening therefore takes on a wider ambit than pre
employment screening. It will deliver to the employer vital information on
lifestyles and social issues, apart from the more conventional driver's license,
educational qualification, credit and criminal record checks

Screening is globally a $6 billion business, and pre-employment screening is

considered mandatory by more than 93 percent of Fortune 1,000 companies.
92% of the companies have a formal Pre-Employment Background Screening
program in place in the USA. In the Indian IT/BPO/KPO industry; it has been
gaining significance to ensure that client confidentiality clauses are maintained
and also to prevent unwanted people from accessing critical information.

Increasingly, organizations are seeking specialized services to ascertain that the

candidate is what he claims to be and also find out other relevant details that
have not been disclosed by him.
The aforementioned need of booming IT industry is seeking services for
employee verification. The types of verification are from organization to
organization and is determined by the need (and often the budget set)—from
ascertaining whether the permanent address given on the CV is actually true to
finding out other details e.g. the nature of work being done by the candidate;
performance standard, verifying qualifications, whether he was sacked from
the previous company or left on his own; any criminal records; investigating
entire family background; whether an alcoholic/womanizer;
Below are descriptions of various screening tools, including type of
information, why the information is important? They are following:-

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  Education verification
 Criminal verification
 Address verification
 Reference Check
 Employment verification
 Health Check

Employee Educational requirement for today’s banking

Recent Trends in Banking Industry of India

The economy can be divided in the entire spectrum of economic activity into
the real and monetary sectors. The real sector is where production takes place
while the monetary sector supports this production and in a way is the means
to the end. We know and we accept the financial system is critical to the
working of the rest of the economy. In fact, the Asian crisis of the nineties, or
for that matter what happened in Latin America and Russia subsequently and
also Dubai Crisis have shown how a fragile financial sector can wreak havoc on
the rest of the economy. Therefore the banking sector is crucial and we want
to express our views to explore how this sector can work in harmony with the
real sector to achieve the desired objectives. 

The b Banking sector has been immensely benefited from the implementation
of superior technology during the recent past, almost in every nation in the
world. Productivity enhancement, innovative products, speedy transactions
seamless transfer of funds, real time information system, and efficient risk
management are some of the advantage derived through the technology.
Information technology has also improved the efficiency and robustness of
business processes across banking sector. 

India's banking sector has made rapid strides in reforming and aligning itself to
the new competitive business environment. Indian banking industry is the
midst of an IT revolution. Technological infrastructure has become an
indispensable part of the reforms process in the banking system, with the
gradual development of sophisticated instruments and innovations in market
practices. 

IT in Banking 
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Indian banking industry, today is in the midst of an IT revolution. A
combination of regulatory and competitive reasons has led to increasing
importance of total banking automation in the Indian Banking Industry.
Information Technology has basically been used under two different avenues
in Banking. One is Communication and Connectivity and other is Business
Process Reengineering. Information technology enables sophisticated product
development, better market infrastructure, implementation of reliable
techniques for control of risks and helps the financial intermediaries to reach
geographically distant and diversified markets. 

The bank which used the right technology to supply timely information will see
productivity increase and thereby gain a competitive edge. To compete in an
economy which is opening up, it is imperative for the Indian Banks to observe
the latest technology and modify it to suit their environment. Not only banks
need greatly enhanced use of technology to the customer friendly, efficient
and competitive existing services and business, they also need technology for
providing newer products and newer forms of services in an increasingly
dynamic and globalize environment. Information technology offers a chance
for banks to build new systems that address a wide range of customer needs
including many that may not be imaginable today. 

Following are the innovative services offered by the industry in the recent
past: 

Electronic Payment Services – E Cheques 

Nowadays we are hearing about e-governance, e-mail, e-commerce, e-tail etc.

In the same manner, a new technology is being developed in US for
introduction of e-cheque, which will eventually replace the conventional paper
cheque. India, as harbinger to the introduction of e-cheque, the Negotiable
Instruments Act has already been amended to include; Truncated cheque and
E-cheque instruments. 

Real Time Gross Settlement (RTGS) 

Real Time Gross Settlement system, introduced in India since March 2004, is a
system through which electronics instructions can be given by banks to
transfer funds from their account to the account of another bank. The RTGS
system is maintained and operated by the RBI and provides a means of
efficient and faster funds transfer among banks facilitating their financial
operations. As the name suggests, funds transfer between banks takes place

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on a ‘Real Time' basis. Therefore, money can reach the beneficiary
instantaneously and the beneficiary's bank has the responsibility to credit the
beneficiary's account within two hours. 

Electronic Funds Transfer (EFT) 

Electronic Funds Transfer (EFT) is a system whereby anyone who wants to

make payment to another person/company etc. can approach his bank and
make cash payment or give instructions/authorization to transfer funds
directly from his own account to the bank account of the receiver/beneficiary.
Complete details such as the receiver's name, bank account number, account
type (savings or current account), bank name, city, branch name etc. should be
furnished to the bank at the time of requesting for such transfers so that the
amount reaches the beneficiaries' account correctly and faster. RBI is the
service provider of EFT. 

Electronic Clearing Service (ECS) 

Electronic Clearing Service is a retail payment system that can be used to make
bulk payments/receipts of a similar nature especially where each individual
payment is of a repetitive nature and of relatively smaller amount. This facility
is meant for companies and government departments to make/receive large
volumes of payments rather than for funds transfers by individuals. 
 

Automatic Teller Machine (ATM) 

Automatic Teller Machine is the most popular devise in India, which enables
the customers to withdraw their money 24 hours a day 7 days a week. It is a
device that allows customer who has an ATM card to perform routine banking
transactions without interacting with a human teller. In addition to cash
withdrawal, ATMs can be used for payment of utility bills, funds transfer
between accounts, deposit of cheques and cash into accounts, balance enquiry
etc. 

Point of Sale Terminal 

Point of Sale Terminal is a computer terminal that is linked online to the

computerized customer information files in a bank and magnetically encoded
plastic transaction card that identifies the customer to the computer. During a
transaction, the customer's account is debited and the retailer's account is
credited by the computer for the amount of purchase. 
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Tele Banking 

Tele Banking facilitates the customer to do entire non-cash related banking on

telephone. Under this devise Automatic Voice Recorder is used for simpler
queries and transactions. For complicated queries and transactions, manned
phone terminals are used. 

Electronic Data Interchange (EDI) 

Electronic Data Interchange is the electronic exchange of business documents

like purchase order, invoices, shipping notices, receiving advices etc. in a
standard, computer processed, universally accepted format between trading
partners. EDI can also be used to transmit financial information and payments
in electronic form. 

Implications 

The banks were quickly responded to the changes in the industry; especially
the new generation banks. The continuance of the trend has re-defined and re-
engineered the banking operations as whole with more customization through
leveraging technology. As technology makes banking convenient, customers
can access banking services and do banking transactions any time and from
any ware. The importance of physical branches is going down.  

Challenges Faced by Banks, vis-à-vis, IT Implementation 

It is becoming increasingly imperative for banks to assess and ascertain the

benefits of technology implementation. The fruits of technology will certainly
taste a lot sweeter when the returns can be measured in absolute terms but it
needs precautions and the safety nets. 

It has not been a smooth sailing for banks keen to jump onto the IT
bandwagon. There have been impediments in the path like the obduracy once
shown by trade unions who felt that IT could turn out to be a threat to secure
employment. Further, the expansion of banks into remote nooks and corners
of the country, where logistics continues to be a handicap, proved to be
another stumbling stock. Another challenge the banks have had to face
concerns the inability of banks to retain the trained and talented personnel,
especially those with a good knowledge of IT. 

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The increasing use of technology in banks has also brought up ‘security'
concerns. To avoid any pitfalls or mishaps on this account, banks ought to have
in place a well-documented security policy including network security and
internal security. The passing of the Information Technology Act has come as a
boon to the banking sector, and banks should now ensure to abide strictly by
its covenants. An effort should also be made to cover e-business in the
country's consumer laws. 

Some are investing in it to drive the business growth, while others are having
no option but to invest, to stay in business. The choice of right channel,
justification of IT investment on ROI, e-governance, customer relationship
management, security concerns, technological obsolescence, mergers and
acquisitions, penetration of IT in rural areas, and outsourcing of IT operations
are the major challenges and issues in the use of IT in banking operations. The
main challenge, however, remains to motivate the customers to increasingly
make use of IT while transacting with banks. For small banks, heavy investment
requirement is the compressing need in addition to their capital requirements.
The coming years will see even more investment in banking technology, but
reaping ROI will call for more strategic thinking. 

Impact of computerization on the workforce

Some of the general issues that have concerned unions and employees,
especially women, in the wake of the introduction of new technology in the
banking and finance sectors have been:

• Prospects of job losses and declining employment levels.

• Increase in workloads.

• Pressure for flexibility.

• Changes in job contents.

• Increase in insecurity in the workplace, and loss of union power.

• Increase in the proportion of 'non-bargain able' staff (i.e. those without an

automatic right to unionize) as compared to the 'bargain able' staff.

• Changes in grading and pay.

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Background on Behaviour pattern Page 24
• Changes in information and control.

• Changes in the autonomy of employees.

• Changes in health and safety conditions.

Conclusion 

The banking today is re-defined and re-engineered with the use of Information
Technology and it is sure that the future of banking will offer more
sophisticated services to the customers with the continuous product and
process innovations. Thus, there is a paradigm shift from the seller's market to
buyer's market in the industry and finally it affected at the bankers level to
change their approach from "conventional banking to convenience banking"
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Background on Behaviour pattern Page 25
and "mass banking to class banking". The shift has also increased the degree of
accessibility of a common man to bank for his variety of needs and
requirements.

In this era of internet banking employees are required to have a strong

educational background as per the job requirement. Education is a core part of
today’s banking industry which plays a vital role in the progress & development
of it at an extent.
Employee has an impact of his educational background on his behaviour.
Employee behaviour, a psychological aspect does affect his performance at
workplace.
So with the respect of above mentioned discussion we can conclude that there
is certain changes takes place in an individual behaviour on the basis of his
educational background.

Bibliography

www.scribd.com
www.wikipedia.com
Organizational Behaviour By:
www.hrcite.com

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