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1.1 1.2 1.3 Meaning Definition Components



INTRODUCTION: We can understand the true meaning of HRM by dividing the term into its subparts: HUMAN people, us RESOURCE Assets/costs for organizations MANAGEMENT co-ordination and control to achieve set goals But unlike other resources in the context of management, we humans are more likely to cause problems.. Hence, it is necessary to study and understand HRM 1.1 MEANING: Human Resource: According to Leon C. Megginson, The term Human Resources can be defined as the total knowledge, skills, creative abilities, talents and aptitude of an organizations workforce, as well as the value, attitudes and beliefs of the individuals involved.



Management in simple terms means the act of getting people together to accomplish desired goals. Management comprises planning, organizing, resourcing, leading or directing, and controlling an organization or effort for the purpose of accomplishing a goal.


1. Organizations are not mere bricks, mortar, machineries or inventories. They are people. It is the people who staff and manage organizations. 2. HRM involves the application of management functions and principles. The functions and principles are applied to acquisitioning, developing, organizations. 3. Decisions relating to employees must be integrated. Decision on different aspects of employees us to be consistent with other human resource decisions. 4. Decisions made must influence the effectiveness of an organization. Effectiveness of an organization must result in betterment of services to customers in the form of high-quality products supplied at reasonable costs. 5. HRM functions are not confined to business establishments only. They are applicable to non- business organizations only, too, such as education, Health care, recreation, and the like. Thus HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness.







The following definitions collectively cover all the five core points: 1.2 Definition of Human Resource Management: a strategic approach to managing employment relations which emphasizes that leveraging peoples capabilities is critical to achieving sustained competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices Human Resource Management can be defined as the field of Management which has to do with Planning, Organizing, Directing and Controlling the functions of procuring, developing, maintaining and utilizing a labour force

1.3 Components: Four major components have been identified for effective and efficient human resource management. These are values, emotions, skills, and motivation. Values: Values generally influence attitude and behavior. Managing human resources requires great values of employees so that team spirit and sound culture can be imagined.


Emotions: It is a kind of cognitive factor by which emotional intelligence can be imagined. The control over mind, making dedication and ensuring enthusiasm are the response of emotions. Skills: A kind of attribute of a person which embarks competencies for achieving the goal. Technical skills, Human skills and Conceptual skills are essential for HRM. Motivation: Motivation is important as oxygen is important for life. There are number of factors which motivate employees in the organization like; responsibility, authority, working conditions, organizational culture and organizational policy etc.





2.1:- EVOLUTION: Managing human resource is a complex process. As Harzing and Ruysseveldt said a better way to understand the philosophy of human resource management demands a thorough understanding about the evolution of the concept itself from the ancestral concept personnel management. In 1990 due to liberalized government policies of various countries the human resource started floating from one country to another this led to diversification of workforce and cross culture took place as a result employees from one nation migrating to another nation and bringing their culture with them this led to mixed organization culture so the HR professional has to play major role in coordinating the workforce of different culture in an organization. EVOLUTION OF PERSONNEL MANAGEMET: Evolution of Personnel management started in 19th century at that time there was a boom in industrialization which leads to increase in franchising and influence of trade unions and harshness of industrial condition called for the better of industrial condition. There was no department as such for taking care of above problem only welfare officers came into being to take care of above situation. These welfare officers were only womens who take care of protectionism of women and girls because they feel it as worthy if women employee are sick they visit their home give food accommodation give moral welfare. As the role of women increasing like they were getting employed in modern industries where their work is packing assembly or other routine job so the quality required by these


women employee increased so these welfare officer who were women their responsibility also increased that is to recruitment training development. Personnel management perform different function such as

Collective bargaining role Implementation of legislation role Bureaucratic role Social conscience of the business role

RISING ROLE OF HRM The role of HRM has gain more important in the year 1980. There was a complete shift from post war collectivism and towards individualism and changes in structure of economy. Some people thought that HRM was evolved to solve union problem as there is an demand to take care of employees of an organization as a whole it performs different function. During 1990,s the success of large Japanese corporation in export market like automobiles and electronic goods took surprise to many western companies but studies says that the success of these Japanese firm is due to effective management of workforce the studies also shows that the workforce of Japanese firm are more productive and efficient than western firm. The key to success of Japanese companies like Toyota Matsushita are the practice adopted for efficient management of workforce as these companies started opening its manufacturing plant in western countries the practice of these companies also started practiced by western companies.


The practice include are:

Strict and rigorous selection and recruitment High level of training, especially induction training and on the job training Team working Multitasking Better management-worker communications Use of quality circles and an emphasis on right first time quality Encouragement of employee suggestions and innovation Single status symbols such as common canteens and corporate uniforms The reason of above practice is create an organization atmosphere

where workers can grow and identify their own success and goal which match with organization.



2.2 OBJECTIVES AND GOALS OF HRM GOALS: Provide a range of services which support the achievement of corporate objectives. Enable the organization to obtain and retain the skilled, committed and well-motivated workforce.

Create a climate in which productive and harmonious relationships can be maintained between management and employees, thus developing mutual trust.

OBJECTIVES: Objectives are pre-determined goals to which individual or group activity influenced by organizational objectives and individual and social goals. Organizations are not just satisfied with this goal. Further the goal of most of the organizations is growth and / or profits. Institutions procure and manage various resources including human to attain the specified objectives. Thus, human resources are managed to divert and utilize their resources towards and for the accomplishment of organizational objectives. Therefore, basically the objectives of HRM are drawn from and to contribute to the accomplishment of the organizational objectives. The primary objective of HRM is to ensure the availability of a component and willing workforce to an organisation. The other objectives of


an organization is directed. Objectives of personnel management are


HRM are to meet the needs, aspirations, values and dignity of individual employees and having due concern for the socio-economic problems of the community and the country. HRM objectives are four folds- societal, organizational, functional and personal. Societal objectives: HRM ensures ethically healthy working culture where there is no discrimination with anybody and equal employment opportunity, safety and quality of work life. Organizational objectives: HRM is continuous process. It is not an end in itself but to assist the organization with is primary objectives. Simply stated, the department exists to serve the rest of the organization. Functional Objectives: To utilize the scare human resources to full fill the organizational demand. It facilitates the organization to accomplish the mission and vision. The department level of service must be tailored to fit in the orfanisation it serves.

Personal Objectives:



Personal objective of employees must be met if employees are to be maintained, retained and motivated. Otherwise employees performance and satisfaction may decline and employed may leave the organization.

2.3 HRD STRATEGIES Organizations today have to develop people strategies to deal effectively with globalization and competitiveness. Human Resource Development strategies relate to attracting, engaging, retaining, developing, motivating and utilizing employees and their competencies excellence.







Communication an organization.





employees, their family members and the society at large is crucial to Accountability and ownership strategy: Employee accountability and ownership is vital to organizations intending to stay competitive. Employees accountability and ownership leads to higher productivity and customer acceleration.


Quality strategy: Quality should be promoted in everything an organization does, through various quality management tools such as total quality management Cost reduction strategy: Employees need to see waste everywhere. Every employees contribution in savings is crucial as small contribution from each employee can be pooled by organizations to



save substantial savings at the end of a given period and enhance its competitive strategy.

Entrepreneurship Strategies: Organizations must enable their human resource development processes and system to foster such an environment for its employees. Culture building strategy: A strong culture fosters higher employee commitment towards the goals and objectives of the organization. Systematic training strategy: The planning and organization of formal on-job training and off job training leads to improving vital employee characteristics, build and sustain appropriate work culture and brings in more professionalism in action. Learning strategy: Continuous development and learning




environment promote self development of employees; of self and by self. It aims to achieve a learning organization necessary to equip employees with new skills and competencies on ongoing basis. It requires HRD processes and systems to focus on Coaching and mentoring culture Self directed systems Learner led

2.4 STRUCTURE OF HR DEPARTMENT: The modern organizations use similar HR Organizational Structure to some extent. The HRM Function has to deliver about the same amount of


services to the organization and the evolution of the HR Organizational Structure showed the best model to operate in. Why is efficient HR Organizational Structure so important? The HR Organizational Structure must be fit with the imperatives defined by the need to keep costs, provide operational excellence and to help to further develop the potential of the human capital inside the organization. The HR Management Team must focus on enabling the power of the team cooperation and HRM Management Team must focus on the optimal processes and communication flows. The resulting HR Organizational Structure The HR Organizational Structure is nowadays mainly divided into three main functional areas:

HR Front Office HR Back Office HR Centers of Excellence

HR Front Office function is responsible for being a single point of the contact for the rest of the organization. This concept is very hard to implement as the employees in HR Front Office must be able to find their position in HRM Department and they have to be recognized by the managers as a helpful source of information. The HR Front Office


employees must be able to recognize the real needs of the internal clients and they have to be able to translate them into the requests for the HR Back Office and HR Centers of Excellence. HR Back Office is responsible for efficient and errorless production of the services being offered by HRM to the external and internal clients. HR Back Office also makes sure that the activities of HRM are fully compliant with the legal environment. HR Centers of Excellence are responsible for keeping processes, policies, products and initiatives updated, developed and fully competitive with the external world.







To achieve the organizational objectives, targets of growth and development, the human resource development of an organization has to make a plan to get the best out of its carefully selected employee's. The various personnel development programs are:1) Human Resource Planning 2) Recruitment 3) Training and development. 4) Performance appraisal. 5) Transfers. 6) Promotions. 7) Employee Motivation 8.1 :-HUMAN RESOURCE PLANNI NG


Human Resource Planning is based on the belief that people are an organizations most important strategic resource. It attempts to address the Human Resource needs of an organization both in quantitative and qualitative terms. Human Resource Planning is with how people are employed and developed in order to improve organizational effectiveness. Definition HRP or manpower planning is the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. HRP has been recognized as one of the important aspect of any organization on which the progress, development and strategy of organization rests.




Human Resource planning is not a matter of choice but a necessity for modern organizations. Human Resource planning is essential for the following reasons:

Smooth and efficient working of organizations: An Organization needs personnel with suitable qualifications, skills, Knowledge, work experience and aptitude in order to carry out its various operations smoothly and efficiently. Human Resource planning fulfills the organizational need for quality workforce.

Filling gaps in manpower: People in the organization needs to be replaced because the existing ones have either retired, died, resigned or are no longer capable due to physical or mental aliments. Human resource planning identifies gaps in existing manpower in terms of quality and talent and takes steps to fill these gaps.

Expansion and Diversification: Organizational plans for growth through expansion and diversification will not bear fruits in the absence of the required human resources. In order to meet the needs of expansion and diversification programs, human resource planning is unavoidable.

Challenges of changing technology: Rapid changes in production technology marketing and management methods have created problems of redundancies, retraining and redeployment of personnel. Systematic human resource planning is needed to resolve these problems.

Increased employee mobility: Employees no longer spend their whole life working for a single organization. There has been a marked increase in employee mobility. Effective human resource planning is vital to meet this shortfall and for relating talented employees.


Shortage of skills: As organization become increasingly complex, they require people with a wide-range of specialized skills. Sometimes these skills are in short supply and problems arise when employees with leave the organization. Hence human resource planning is vital to deal with problems arising from shortage of skills.

Budgeting: Human resource planning is essential in anticipating the cost of human resources which facilitates the budgeting process. Through proper manpower planning management can avoid both shortage and surplus of manpower and thereby control labour costs.

Government Policies: Government policies with regard to working conditions, working sections, contract labour, reservation for women and weaker sections brings about changes in the demand and supply of human resources. The policies of the government place restrictions on the organization and it cannot hire and fire at will. Careful human resource planning is required to deal with the many contentions issues that arise due to these policies.

3.1.2 ACTIVITIES: HRP consists of a series of activities,



Forecasting- future manpower requirements, either in terms of mathematical projections of trends in the economic environment and development in industry, or in terms of judgmental estimates based upon the specific future plans of a company. Making an inventory- of present manpower resources and assessing the extent to which these resources are employed optimally; Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and Planning the necessary programmes of requirement, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirement are properly met. 3.1.3 ELEMENTS OF HRP:

The various elements of Human Resource Planning are:(i) Estimating manpower requirements quantitatively and qualitatively (ii) Recruitment and selection of personnel. (iii) Induction and deployment. (iv) Personnel development. (v) Ensuring quality to products and services, keeping customer satisfaction as the primary objective. (vi) Overall assessment of performance and fine-tuning



3.1.4 OBJECTIVES: The specific objectives of human resource planning may vary as per the specific needs of the organization. However, most human resource plans have the following plans have the following objectives:

Optimal Utilization of human resources: The main objective of human resource planning is to maintain and improve the organizations ability to achieve its goal by developing strategies that will result in optimum contribution of human resources.

Meeting personnel requirements: Human resource planning seeks to recruit and select employees in a manner that will maximize return on investment in human resources.

Placement of Personnel: It is not sufficient selecting the right personnel but it s equally important to place them on the right job. Human resource planning strives to place the right man on the right job.

Control costs: An important objective of human resource planning is to reduce or control labour costs by maintaining a proper balance between demand for and supply of human resources.

Training and management: Human resources planning aims at developing a well-trained and flexible workforce. This increases the organizations ability to adapt to an uncertain and changing environment. 3.2 RECRUITMENT:


The acquisition of human resources for the organization takes place through the process of recruitment and selection. One of the most difficult tasks of the human resource manager is that of recruiting and selecting the right kind of people for the organization. Recruitment is the first step towards procuring qualified manpower for the organization. The process of acquiring human resources begins with recruitment, continues with selection and ceases with placement. According, to Flippo, Recruitment is a process of searching for perspective employees and encouraging and stimulating them to apply jobs in an organization. All organizations whether large or small engage in recruitment activity. This differs with: 1. Size of the organization 2. The employment conditions in the region 3. The effects of past recruitment efforts which show the organization Ability to locate and retain good performing people.


4. Working conditions, salary and benefits offered. 5. The rate of growth of the organization 6. Cultural and legal factors.

3.2.1- RECRUITMENT POLICY: The recruitment policy is considered with guidelines for quantity and quality of the recruitment process 1] Be based on organizational objectives. 2] Spell how recruitment needs will be identified 3] Specify preferred sources of recruitment 4] Have the criteria of selection 5] Have guidelines on the financial implication of recruitment

3.2.2- SOURCES OF RECRUITMENT: After the manpower planning process is completed and the organization has understood the quantity and quality of resources required, based on its it will decide which positions to fill through internal sources and which are to be filled through external sources. A] Internal Sources:



These include personnel already on the payroll of an organization. People within the organization are upgraded, transferred, promoted and in rare cases demoted. B] External Sources: These lie outside the organization and include people who are unemployed or those who are looking for better opportunities. These may result in getting more qualified or more capable personnel, it can be a time consuming and costly process compared to internal sources. External sources Include:1] Campus recruitment: Many educational institutions have placement departments who forward the names of graduating students to interested organization and invite them to conduct campus interviews. 2] Advertisements: Advertisements in journals, newspapers and magazines with wide circulation is a very popular source of recruitment. However care should be taken in preparing the advertisement so that only qualified applicants respond. 3] Employment Agencies: Private consulting firms carry out recruiting functions on behalf of organizations. These firms carry out all the functions of recruitment and selection and provide organizations with candidates as per their requirements. 4] Employee recommendations: A very good external source of recruitment is a recommendation from a current employee. An employee will rarely recommend someone unless he is certain that the individual will perform


adequately. This is because recommendations reflect on the recommender and his reputation is at stake. 5] Deputation: In Deputation the services of an experienced employee of another organization are borrowed for a fixed period of time. This source of recruitment is usually for senior position in organization. 6] Poaching: Poaching involves attracting talented and competent persons from rival organization by offering better terms and conditions of employment with regard to salary, designations, working conditions, additional perks and benefits. Poaching is considered to be unethical as employees often carry with them sensitive information that could hurt the interests of their former organization. 8] Unsolicited or casual applications: Often organizations receive unsolicited applications for jobs in the form of telephone calls, letters, emails or walk-ins.




A well trained work force is the greatest asset of an organization. After an employee is selected, the next important task for the organization is to see that the employee adjusts as quickly as possible on the job and performs his job efficiently. In order to do so, it is essential that the employee is properly trained and prepared for the tasks that lie ahead. An organization cannot function effectively when its employees are not trained well. Lack of training is often the causes of: Poor productivity Errors and wastages Unsafe working practices and Dissatisfaction at work Goldstein describes the training process as the act of increasing the knowledge and skill of an employee for doing a particular job. Training prepares employees to perform their present job even better and more efficiently. It also prepares the employee for higher positions with increased responsibilities. 3.3.1- IMPORTANCE OF TRAINING:


Organizational training programs are very costly. When an employee is being trained, not only is the organization spending money on him but it is also losing in terms of manpower as the employee is away from work. However despite this loss, good organization, spend a considerable amount of time, effort and money to train their employees. They feel that training of employees is an investment which will reap benefits and profits for the organization in the future. 3.3.2- THE MAJOR BENEFITS FOR TRAINING ARE: (1) Higher productivity and profits: Training improves the knowledge and skills of employees and hence leads to greater efficiency in the work place. The more efficient an employee, the higher will be the production which in turn will contributes to greater profits to the organization. (2) Optimal use of resources: Well trained employees are able to make optimal use of their resources (man power, materials, machinery and capital). This helps in reducing, cost and time wastage. (3) Job Satisfaction: Employees who have received training and know their job well are a confident lot. These increases their moral leads to higher job satisfaction. (4) Safety: Training reduces errors and accident on the job by making the employees more competent and able at their work. Training helps to improve safety standard at work. (5) Reduce Stress: An employee who knows his job well is less likely to experience stress. Besides training in stress and time management enable the employee to cope with frustration and tension.


(6) Career Development: Training prefers the employees for higher position by developing skill and attitudes. It improve the employee s prospect for advancement and promotion within the organization training prepares the employees for opportunities that will come during his career. 3.3.3- TRAINING NEEDS AND OBJECTIVES: The objective of organizational training is to insured that every employees is offered opportunity and means to attain the knowledge and skill need to accomplish his or her effectively and be able to develop his or her ability to the full In order to know the training needs of the employee, the management has to examine production records, frequency of accident, quality of human relation, the satisfaction of the consumer, the cost of production and such other areas. Job Training of New Employees Upgrading Current Jobs: Management Development: Personal Development: Technological and Scientific Information:




Performance appraisal is beneficial both to the employee as well as to the organization. Performance appraisal is a kind of feedback to the employee. It enables them to understand whether his work is satisfactory or whether he needs any improvement in his performance. Performance appraisal will reveal to an employee his strengths and weaknesses, enhancing his self- confidence in some areas and encouraging him to improve his performance in other areas.

3.4.1- DEFINITION OF PERFORMANCE APPRAISAL According to the Indian national institute of personnel management, performance appraisal is a technique of assessing, as impartially as possible, the attributes, strengths, weaknesses, capacity and attitudes of individual employee in relation to his job. C.D Fisher describe performance appraisal as the process by which an employees contribution to the organization during a specified period of time is assessed. 3.4.2- PROCESS OF PERFORMANCE APPRAISAL


Step one- Broadly speaking the process of evaluation begins with the establishment of performance standards. At the time of designing a job and formulating a job description, performance standards are usually developed for the position. These standards should be discussed with the supervisors to find out which different factors are to be incorporated, weights and points to be given to each factor and these then should be indicated on the Appraisal form, and later on used for appraising the performance of employees. Step two: The next step is to communicate these standards to the employees left to themselves would find to difficult to guess what is expected of them. To make communicate effective, feedback is necessary from the subordinate to the manager. Satisfactory feedback ensures that the information communicated by the manager has been received and understood in the way it was intended. The third step is the measurement of performance. To determine what is expected to acquire information about it. We should be


concerned with how we measure and what we measure. Four sources of information are frequently used to measure actual performance personal observation. Statistical reports, oral reports, and written reports.

The fourth step is the comparison of actual performance with standards. The employee is appraised and judged of his potential for growth and advancement. Attempts are made to note deviation between standards and performance and actual performance. The fifth step: At the next stage, the result of appraisal is discussed periodically with the employees, where goods points, weak points, and difficulties are indicated and discussed so that performance s improved. The information that the subordinate receives about his assessment has a great impact on his self-esteem and on his subsequent performance. The final step is the initiation of corrective action when necessary: immediate corrective action can be of two types. One is immediate and deals predominately with symptoms. The other is basic and deals into causes. Immediate corrective action is often described as putting out fires, whereas basic corrective action gets to the source of deviation and seeks to adjust the difference permanently. Attempts may also be made to recommend for salary increases or promotions, if these decisions becomes plausible in the light of appraisal.



3.4.3- USES OF PERFORMANCE APPRAISAL: Information obtained through performance appraisal can be applied to various management functions. Some of the major uses of performance appraisal are:

training: Performance appraisal provides information about

the employees strengths and weaknesses. Once weaknesses in knowledge, skills and abilities are identified it can be corrected through additional training.

Wage and salary administration: Performance appraisals are frequently used to determine the salary raise to be given to the employees. Increase in pay are often linked to the employees job performance. It is suggested that performance development and salary administration should not be combined in the same appraisal as employee become defensive.This problem can be overcome by having two appraisals- one for employee development and another for salary raise. It is also suggested that the same person should not conduct the process of employee development and salary fixation.

Placement: Information obtained through performance appraisal is useful in making placement decisions. Trainee employees are appraised by exposing them to various tasks in the area of finance, marketing, accounting etc. On the basis of their performance the trainees are placed in the field that they performed the best. Thus performance appraisal is useful in making optimal use of employee abilities and talents.



Promotions: Performance appraisal helps in identifying the betterperforming employees. It helps us to compare the performance of the employees. Thus performance appraisal is useful in making promotional decisions.

Discharge: Performance appraisal provides evidence of inadequate job performance by the employee. This information can be used to terminate or dismiss employees. In order to prevent lawsuits, organizations should be able to demonstrate that decision to terminate the employee was a fair one and used as the last resort.

Job satisfaction: A fair performance appraisal maintains employee initiative and morale leading to greater job satisfaction.

Man Power Planning: Performance appraisal helps in human resource planning by providing information regarding existing talent in the organization and future human resource requirements of the organization.

Feedback: Performance Appraisal provides information of an employees weaknesses or deficiencies in knowledge, skills and abilities that once identified can also be used to determine the usefulness of a training. Performance appraisal can also be used to determine the usefulness of a training program by determining whether an employees job performance improved after the training period.



3.5- TRANSFERS: Reshuffle of human resources is essential for the smooth and efficient management of the organization. It also serves the broader interests of the organization. Hence such reshuffles popularly known as job transfers have become very common in modern business organizations. Job transfers are carried out on a routine basis in organizations. They are designed to prepare managers to take on the additional responsibilities by providing them with experience in different area of the firm. Most job transfers are considered to be lateral promotions that are the manager is placed in a position that carries similar authority and responsibility but in a different part of the firm. Transfer may be temporary or permanent. Temporary transfers arise due to ill health, absenteeism, deputation etc. Permanent transfers are due to death of an employee, resignation, increased work load, organizational restructuring etc. 3.5.1- OBJECTIVE OF TRANSFER: There are multiple reasons for the transfer of employees from one place or position to another. Some of the objectives of transfer are listed here below: (1) Organizational needs: Shortages of employees in one department, Surplus in another department, introduction of new technology or Products, changes in production volume or schedule etc. are some of the reasons that necessitate transfers.


(2) Employee needs: Employees who are unhappy or dissatisfied in their current job due to differences with their boss or fellow workers may request for a transfer. Personal problems such as poor health distance from residence and family circumstances are among other reasons for the employee seeking a transfer. Lack of growth opportunities on the present work may also prompt an employee to ask for a transfer. (3) Optimal utilization of employee: An employee may be transferred because the management feels that his capabilities could be better utilized elsewhere. Employees whose performance is not satisfactory may be shifted to other jobs for which they are better suited. (4) Increase employee versatility: Employees may be shifted from one job to another so that they may gain varied experience of work. In certain organizations, it is a policy to transfer employee after he has been at a job for specified period of time. Thus transfers serve as way of training employees as well as making them more versatile. (5) Relief: Transfers are affected to give relief to employees who have been doing strenuous and risky work over long period of time. (6) Disciplinary Action: Employees engaging in undesirable activities such as taking bribes, politicking and working to the detriment of the organization are often transferred to places where they will be unable to continue to such activities.




Every organization should have a just and impartial policy concerning the transfers of employees. It is important that every employee knows the policy. A transfer policy serves as a guide-post for managers in effecting transfer. It avoids an ad hoc and arbitrary approach to transfers. A transfer policy makes it possible to conduct transfers uniformly in the organization instead of deciding each case separately. In the Public Sector Bank, the transfer of officers in the Junior Management and Senior Management Grades are governed by Government regulations. The exact nature of these regulations may vary from one PSB to another but it has to be within the board framework of government guidelines. 3.6- PROMOTIONS: Promotion refers to advertisement of an employee to a higher post carrying greater responsibilities, higher status and better salary. Promotion puts an employee or executive on a career path which goes upward. On being promoted, the promotes duties and responsibilities increase, and the higher ones goes in an organization the greater is the effect of the employees decisions on the working of the organization. Promotion is the upward movement of an employee in the organizations hierarchy, to job commanding greater authority, higher status and better working conditions. Generally, when an employee is assigned a higher level job with more pay and powers, he is said to be promoted. 3.6.1- OBJECTIVE OF PROMOTION:


The usefulness of promotion lies in the numerous benefits that it has, both for the organization and the employee. The following are the purpose or objectives of promotion: (1)Promotion serves as an incentive to employees to take initiative and to be more enterprising and ambitious. (2)Promotion is recognition of the efficiency of an employee and his performance. It is a reward to the employee for a job well done. (3)Promotion boosts employee morale and creates a sense of belongingness to the organization. (4)Promotion enhances employee commitment and loyalty to the organization and prevents them from leaving the organization. (5)Promotion results in job satisfaction in the employee. (6)Promotion helps to retain skilled and talented employees. (7)Promotion instills a competitive spirit among the employee and encourages them to give their best and maintain high standard of Performance. (8)By promoting from within, organization are able to minimize discontent and unrest. It promotes good human relations.




To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of local negotiations and details (e.g. which particular hours shall be worked) of conditions of service are often more important than the basics. Hence there is scope for financial and other motivations to be used at local levels. Staffing needs will vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. The latter can depend upon other factors (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as 'fair and just' there will be no motivation.



Hence while the technicalities of payment and other systems may be the concern of others, the outcome of them is a matter of great concern to human resource management. Increasingly the influences of behavioral science discoveries are becoming important not merely because of the widely-acknowledged limitations of money as a motivator, but because of the changing mix and nature of tasks (e.g. more service and professional jobs and far fewer unskilled and repetitive production jobs). Hence human resource management must act as a source of information about and a source of inspiration for the application of the findings of behavioral science. It may be a matter of drawing the attention of senior managers to what is being achieved elsewhere and the gradual education of middle managers to new points of view on job design, work organization and worker autonomy.





4.1 HRM IN BANKS 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. The banking sector has grown from a few institutions primarily involved in deposit acceptance and trade finance into a complex multi player markets where large number of commercial banks, financial institutions and specialized banks are operating with various products and activities. The banking has become a complex activity within the financial market linked directly and indirectly with an over-all national growth and its impact as an integral part of regional segment of a global banking environment. Almost every bank and financial institution is involved in various functions in a day's job and thus requires a highly effective team and appropriate manpower to run the show. Thus even the high automation would require proper man behind the machine to make things happen. This idea has been realized by top managements in progressive banks.

Like many other organized sectors, banking requires multi layer manpower for its various requirements of professionals and support staff. With liberalization of activities within the banking sector, for example, more emphasis on consumer and house finance and personal loans, etc. banking has turned itself into a more market-based business where banks have expanded their reach more to customers' door steps in a big way making


banking more practical. This has further highlighted the need for proper deployment of man-power to run banks efficiently. For many years, HRM banks like other institutions have been handling this sensitive activity through respective personnel departments. This means human resources were managed like other physical assets e.g. pieces of furniture, calculators, equipment and appliances. Personnel departments were primarily engaged in approval of leaves, handling of staff loans, issuance of show cause, conducting disciplinary enquiries and termination from service. Recruitment was a routine function and was done in a mechanical way to hire people with specific educational background irrespective of their real value to the institution. Success stories of large banking companies have been evident of the fact that HRM is quite different from management of physical assets. Human brain has its own peculiar chemistry. Its strong sensory and decision-making capacity has to be greatly emphasized by the employers. The work force constituting all levels of employees is constantly thinking in many dimensions. On the one hand it is the assigned duty and task they are to perform and for which they are paid by their employer, on the other they think of their long run goals and objectives.

4.2 HRM AN IMPORTANT TOOL OF BANKING SECTOR: Moreover, human resources management is quite essential for any growth oriented and dynamic organization which wants to succeed in a fast changing and competitive environment. It is the route by which banking can


come to term with the new situation. It provides the means by which fullest potential of employees can be developed and used for the benefit of both themselves and their employees. Good human resource management practice will ensure every employee knows that they matter as an individual and a human being confidence that the work force will perform to the levels needed and beyond for success in today s competitive world. The function of human resource management should be handled continuously through training, education, job rotation, and reassignment of various kinds. There is a need for a healthy climate, characterized by the values of openness, enthusiasm, mutuality, trust and collaboration for developing human resources. The present situation demands that the men who are employed in the banking organization work with a hundred percent commitment, devotion and discipline. It is very significant for human resource professionals to understand various changes taking place in organizations and adapt human resource activities accordingly.

4.3 THEMES OF QUALITY ORIENTAL HRM: There are five themes of quality-oriented human resource practices, which set them apart from conventional human resource practices. a) Focus on banking, rather than the job; b) Support for group performance, rather than individual performance; c) Unrestricted rather than hierarchy;


d) Change, rather than stability and e) Participation rather than command and control. Industrial psychologists and industrial sociologists have played a great part in the development of human resource and personnel management. Inter-disciplinary techniques contributing to perform and assessment, career planning, manpower planning and organizational design have been offered. 4.4:- OBJECTIVES AND FUNCTIONS IN BANKING SECTOR ARE: OBJECTIVE: (a) The effective utilization of human resources in banking. (b) Desirable working relationship among all members of organization and (c) Maximum individual development. FUNCTIONS (a) Planning. (b) Staffing. (c) Employee development. (d) Employee maintenance. Personnel and human resource management function in banking sector requires following: a) Manpower planning. b) Job analysis. c) Staffing. d) Selection. e) Orientation.


f) Training and development. g) Performance appraisal. h) Career planning. i) Compensations and benefits. j) Labour relation and employees record keeping.

KEY PROGRAMME OF HRM: The key programmes of HRM for the banking sector are: a) Recruit management. b) Information management. c) Training management. d) Reward management. e) Performance management. f) Culture management. g) Discipline management. h) Health and safety management.






It is a well-accepted reality that India is poised to be amongst the largest economies over the next two decades.



As our business world is charging at bullet train speed the major trends impacting industries are globalisation, technology, outsourcing and the talent crunch. The biggest challenge amongst these is the shortage of skilled manpower. For many companies, lack of talented workers constitutes a make or break HR issue. Naturally, there is an increasing obsession amongst CEOs with a higher workforce. Nowadays superior HR is not a luxury but a competitive necessity. The HR profession as a result, is gaining both respect and attention the kind that comes from being in the hot seat. As such, there are some trends one must be aware of: Changing role Talent shortage is the highest risk for Indian business. Recognising this, Chief executives have taken on the roles for strategic HR management. HR executives are themselves becoming C - level executives. How HR managers will contribute and how seriously they will be taken depends on the big leap that the majority of HR managers today will take. Increasingly, more is being expected from HR practitioners and they need to broaden their skill-sets so that they can sit at the board table and understand as much about the businesses as the other leaders.

5.1 Accountability If HR professionals want to be enabler of business strategies, they need to make significant contributions to the bottom line through expense


reduction, or revenue generation, talent management and risk mitigation. CEOs are demanding that HR stop giving lip service to strategic performance and find metrics that prove that they are contributing to the growth and performance of the company through effective people management. 5.2 War for talent The most important corporate resource over the next 20 years will be talent, smart, technologically literate, globally astute and operationally agile workforce. Todays HR departments will have to become talent departments. Traditional workforce planning is being replaced by talent strategies and skills gap analysis. The key to attracting and retaining scarce skills is for companies to be, and be seen to be, a first-tier employer that can meet the needs of high potential / performance employees. Marketing practices will need to be applied to recruitment. Employer branding with a strong differentiator are imperative. Rather than positioning as we are a big successful company, positioning as delivering on the promise of continuous learning, work-life balance, fulfiling roles and innovative rewards and recognition is important.

5.3 Outsourcing HR outsourcing is a growing trend. Today HR professionals are hardly hired for their ability to process employee information, sort resumes or process payroll on time. Instead, HR is expected to deliver value in areas like organisational effectiveness, talent management, change management,


leadership development, succession planning, merger integration, strategic compensation, etc. The primary benefit of HR outsourcing is that it will allow the leaders to tackle these more strategic issues. HR needs to embrace outsourcing to reduce costs and get access to higher levels of service. 5.4 Healthy workplace There is a definite link between work environment and the well being of its employees and between employee health and the bottom line. Long working hours, travel, competition, deadlines are the key causes of stress and burnout. Environment and lifestyle are creating a new health crisis amongst urban professionals, increasing the risk of infections, heart and back problems or mental stress. Presenteeism where employees come into work but cannot work at optimal levels is a growing concern. 5.5 Diversity For the Indian private sector, diversity as a business strategy has preceded the employment equity criteria, which has only now begun to be adopted by a few companies on a voluntary basis. Diversity goes beyond nationalities, gender, colour, race or religion. It is also about managing the demographic and psychographic characteristics of an evolving workforce. It will take a whole new level of education of tolerance. HR will need to provide cross-cultural support and training to virtual global teams. 5.6 Impact of technology



Eventually technology is going to eliminate most HR jobs as they exist nowadays. Technology with 24X7 communication capabilities, coupled with outsourcing, guarantees there will be smaller HR departments in companies. Today CRM has given way to ERM - Employee Relationship Management. Employees can self manage activities previously handled by HR departments. Technology will also help people connect within the work environment regardless of time and place as organisations are becoming physically local, yet virtually global. 5.7 Talent management Talent management with a focus on soft skills, leadership development and succession planning is the defining trend in HR. In India, technically qualified people are easier to find. But what companies require is a domain expert with managerial skills to leverage that expertise in the interest of the company. Selections are increasingly based on soft skills such as attitude, ethics, or people skills. Today ones educational qualification is just not enough to get a job. This becomes even more important as we go up the pyramid to middle, senior and top level managers. One of the scarcest capabilities is leadership. As organisations, their customers, employees and their environment become more global and competitive, the competency requirements for successful leadership are increasing exponentially. Leadership comes with empowerment and changing work-cultures across the levels through continuous learning, skill development and change management.


We now live in a world where the job and job requirements are constantly changing. Many of us are in jobs that didnt exist three years back and three years from now many of us will be in jobs that dont exist now. In this context, succession planning needs to be re-engineered, to focus on competencies rather than positions. Thus succession planning will evolve into something broader talent management, regardless of organisation structure. In conclusion, HR professionals need to step up to these challenges or else other functional areas will take over this responsibility. Apart from domain re-skilling, the emerging HR professional has to be skilled crossfunctionally. It has never been better for the right thinking, right-skilled HR professional.




The RBI has already prepared the roadmap for major banking reforms and it is only a matter of time before it is implemented. This roadmap has two distinct phases of change: In the first phase, foreign bank will be allowed to establish a presence in India through the wholly owned subsidiary route. The markets will be opened up for the acquisitions of weak bank that RBI considers are appropriate for acquisitions. The second and more encompassing phase that the RBI plans to begin from April 2009 is to allow foreign Banks to acquire controlling stake in privately on onward Indian banks. This phase will lay the foundation for open markets.


These major changes will open up a excess of new opportunity for some Indian banks but it could also sound the death kneel for some Banks. The success and survival of the Banks will depends more and more on people management and only those banks that can manage their Human resource will have a life in a longer. If there is any one singularly important lesson that has been learnt from the process of reforms the world over than that is a people are the real strength of the organization and it they who given an organization it is competitive advantage. The quality of human resource will be a critical factor in the success of Indian banks is specially the public sector Banks (PSBS) as a consequence there is an urgent need for overhauling of the entire human resource in Banks and hence effective human resource management becomes vital. Banks will need to take a holistic view of HRM for providing qualitative services with minimum cost and time to the public. A few of the current challenges faced by the banking industry in terms of human resource management may be the following:

6.1 Effective work force: A time-consuming and hectic job is to hunt the right talent. Its just sitting by the river and waiting for the right fish to catch. Higher the professional value of the vacancy, tougher is the search. Identifying the right stuff followed by negotiation is the element which makes the job tough for the employer.


Banks are keenly interested to fill up two types of breads of professionals. Ones who are outstanding professionals with high job hopping attitude these are those who come in - work for some time and then leave for better prospects. Others are those who are keenly picked-up, trained and are somehow retained to be developed as future management within the bank.

Management trainees are a growing popular phenomenon where freshly qualified business graduates are engaged by banks and 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 against advertised vacancies in media creating a large data base management problem.

6.2 Employee Retention: The most difficult agenda of HRM across the banking sector is to retain the right people. Sudden growth of retail banking and other services has put pressure on HR mangers 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 and money to hire and train the appropriate work force for its own operations. This ready-made force is often identified and subsequently picked-up on better terms by others.



6.3 Compensation: How much to pay to the right employee and how much to the outstanding performer. Banks have traditionally followed pay scales with predetermined increments, salary slabs, bonuses and time-based fringe benefits like car and house advance, gratuity, pension, etc.

The situation is not the same anymore. An increment of Rs500-800 per annum is no more a source of attraction for a professional anymore. A basic pay with traditional formulas of linkage with medical and other facilities has no soothing effect today. A promise of future growth, learning culture and corporate loyalty is out of dictionary and does not mean anything to this energetic and competent performer today. A waiting period of 3-4 years in each cadre haunts the incumbents who strongly believe in immediate compensation. There are examples to this. Thanks to the car financing modalities car is no more a fantasy item any more.

A freshly hired professional requires a brand new car or car loan on 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, city of his own choice and 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 and preference makes the job of HR manager quite challenging. What the HR manger cannot afford is the dissatisfied employee who not only disrupts the smooth working himself but also spreads the negativity to others by his de-motivated attitude.

6.4 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 and encouraged constantly. Smart banks have realized this need and have taken steps to keep their work force motivated through proper encouragement like man of the month awards, repeat get-togethers, conferences, sports events, dinners, company sponsored travel, reunions, etc. This is the way employees create Managing Knowledge Workers Essentially, here we are looking at different kind of people who does not obey the principles of management for the traditional group. This boils down to higher educational qualifications, taking up responsibilities at a lesser age and experience, high bargaining power due to the knowledge and skills in hand, high demand for the knowledge workers, and techno suaveness. The clear shift is seen in terms of organization career commitment to individualized career management. Managing this set of people is essential for the growth of any industry but especially the IT, BPOs and other knowledge based sectors.



6.5 Managing Technological Challenges: In every arena organizations are getting more and more

technologically oriented. Though it is not in the main run after the initial debates, preparing the work force to accept technological changes is a major challenge. We have seen sectors like banking undergoing revolutionary changes enabled by technology. It is a huge challenge to bring in IT and other technology acceptance all levels in organizations. 6.6 Competence of HR Managers: As it is more and more accepted that lot of success of organizations depend on the human capital, this boils to recruiting the best, managing the best and retaining the best. Clearly HR managers have a role in this process. Often it is discussed about lack of competence of HR managers in understanding the business imperative. There is now a need to develop competent HR professionals who are sound in HR management practices with strong business knowledge. 6.7 Developing Leadership: It is quite interesting to note that there is less importance given to developing leadership at the organizational level. Though leadership is discussed on basis of traits and certain qualities, at an organisational level it is more based on knowledge. The challenge is to develop individuals who have performance potential on basis of past record and knowledge based expertise in to business leaders by imparting them with the necessary "soft skills".


6.8 Managing Change: Business environment in India is volatile. There is boom in terms of opportunities brought forward by globalisation. However this is also leading to many interventions in terms of restructuring, turnaround, mergers, downsizing, etc. Research has clearly shown that the success of these interventions is heavily dependent on managing the people issues in the process. HR has a pivotal role to play here

TOWARDS BETTER MANAGEMENT: Some associate banks made an excellent beginning by initiating a number of innovations in personal function like: Revitalizing training System. Training efforts redirected to personal growth and making it performance and development oriented. THE LAST WORD The immediate task before the banking industry is to identify the core group and hone their knowledge, skill and attitude through a continuous process of training and retraining. The corporate policy should be transparent, the performance appraisal system needs to be objective and


proper reward system should be implemented by way of promotion and overseas placement for those employees who have contributed their entire mite for the overall progress and prosperity of the organization.


About SBI: State Bank of India (SBI) is the largest state-

owned banking and financial services company in India, by almost every parameter - revenues, profits, assets, market capitalization, etc. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial State Bank of India, which in turn became State Bank of India.


The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve State Bank of India. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at NRIs. The State Bank Group, with over 18,000 branches, has the largest banking branch network in India.

SBI has tried to reduce over-staffing by computerizing operations and "golden handshake" schemes that led to a flight of its best and brightest managers. These managers took the retirement allowances and then went on to become senior managers in new private sector banks. The State Bank of India is the 10th most reputed company in the world according to Forbes. ASSOCIATE BANKS

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore



SBI Capital Markets Ltd SBI Mutual Fund (A Trust) SBI Factors and Commercial Services Ltd SBI DFHI Ltd SBI Cards and Payment Services Pvt Ltd SBI Life Insurance Company Limited - Bancassurance (Life


SBI Funds Management Pvt Ltd SBI Canada


SBI has 21000 ATMs. SBI has 26500 branches, inclusive of branches that belong to its SBI alone has 18500 branches. SBI is the only bank consisting 26% participation in public sector

Associate banks.

banks and 39% participation in commercial banks in India. SYMBOL AND SLOGAN -> Symbol is the Key Hole, whose meaning is "Welcome to SBI". -> Slogans are:

With you all the way Pure banking nothing else The Banker to every Indian


RECRUITMENT POLICY: Recruitment at the State Bank of India is done at the central office at Mumbai. The minimum requirement for the placement of the employee at the clerical level is Graduate and basic knowledge of Computer. Candidates from certain background (SC, ST, and OBC) are given some concession with regard to age and marks. The recruitment process at State Bank of India begins with the placing of advertisements in popular National and Regional newspaper across the country. The candidates have to appear for an entrance examination. This exam is being conducted by IIBF. After the written test, candidates have to appear for the interviews, which are conducted by State Bank of India Head Office. Based on their overall performance, candidates are selected. PERFORMANCE APPRAISAL: The Annual Appraisal Report of the State Bank of India consists parts: Part 1- Bio-Data Sheet Part 2- Business Dimension (for Offices in Operation) Part 3- Performance Appraisal (for Officers in Administration) Part 4- Additional Accomplishments / Outstanding Achievements Part 5- Managerial Dimension Part 6- Potential Review Performance appraisal for the clerical cadre is not strict, since the clerical cadre is not responsible for taking any decision. The Performance Appraisal of the Officer is strict and the promotion of the officer also


depends on the performance of the officer. The Performance Appraisal is done once the year. The officer has to score minimum 40 out of 100 in Performance for the promotion. If the appraise founds that particular officer is conducting any fraud his liable of punishment like reduction to a lower grade or post or compulsory retirement or removal from service or by minor penalties if the violation is not that big.

TRAINING IN SBI: The largest public sector bank in the country State Bank of India has under taken a massive revamp of its training system. With over 2,00,000 employees, the bank has a very elaborate training network comprising 46 Learning Centres and 4 Apex Institutes developed over 50 years to cater to the competence building of its employees. The network was hitherto looked after by the respective operational units. The revamp, a vision of SBI Chairman O P Bhatt seeks to create a world class training system at par with the best anywhere in terms of content and delivery. The revamped training structure, called a Strategic Training Unit (STU) will bring the entire training system under a unified training command, headed by a Chief General Manager. The STU has been assigned the task of moving towards converting the State Bank of India into a Learning Organization capable of handling


change and growth for a Bank aspiring to be amongst the top 20 in the world. SBI has added 25000 new employees to its work force in the last two years and is likely to add another 25000 in the current year. It has also taken on massive branch expansion with over 1000 branches opened in the last fiscal alone. The STU is geared not only towards integrating the new recruits into SBI but also enhancing the knowledge and skills and reorienting attitude of its existing work force. Standardization of training content is already underway as is standardization of infrastructure across the system, so as to ensure quality. SBI has also been putting its top leaders through customized Leadership Programmes conducted by reputed management institutes. HR STRATEGIES IN SBI: State Bank of India has decided to outsource its human resource (HR) related requirements with a view to introduce sophisticated HR practices, processes and techniques in managing its workforce. The plan is to use technology in the areas of HR process management system in order to achieve higher operational efficiency, streamlined processed and work flow automation in HR functions. State Bank of India has plans to introduce data mining and e-learning with the assistance of the vendor, which is supposed to develop the software for this. "Our effort is to increase job satisfaction and motivation levels. Integration of HRM with banks strategy: HR PRACTICES Resourcing COMPETITIVE STRATEGIES Hire a




recovery team Employee Relations Compensation No ER(group based) No additional benefits

recruitment and selection Unions or well developed systems Attractive package

sourcing Informal discussions Sharing benefits


For many years, HRM banks like other institutions have been handling this sensitive activity through respective personnel departments. This means human resources were managed like other physical assets e.g. pieces of furniture, calculators, equipment and appliances. In common with others in the industry, the STATE BANK OF INDIA has traditionally recruited and trained for a single career structure, with a strong technical (or professional) bias. However, in the changed circumstances not only the recruitment and training, but the whole culture of the Bank is changed radically.



The development of human resources was worthy of a higher priority in STATE BANK OF INDIA. This was reflected in the development of manpower planning and a greater emphasis on management development and training in a systematic and integrated manner. The STATE BANK OF INDIA looked to become more pro-active in this area rather than merely respond to problems. There was also a trend in the former towards programmes stressing social skills and customer service training and sales and marketing training, all designed to educate staff in the new sales culture. Previously in STATE BANK OF INDIA, the training emphasis had been on technical training and supervisory skills for clerical appointed and junior management staff; the training also reflected a trend in banking to train for greater productivity rather than preparation for future job.




It was necessary for policies in STATE BANK OF INDIA to be consistently reinforced; if the Bank targeted managers on financial objectives and performance appraisal reflected this and with little emphasis on the achievement of human resource objectives, managers would realize that the official policy (HR is important) was in practice given far lower priority. The STATE BANK OF INDIA did attempt to tackle such difficulties with revised appraisal systems incorporating a broader range of objectives. In the past two decades, SBI has been very successful in facing the challenges in changing scenario of the banking industry. But if we compare HRM in the largest public sector bank of India with that in a private sector bank like HDFC or HSBC, we can find that the approach in private sector banks is more employee and customer centric. Even though a number of programmes might be undertaken at the central level to enforce quality HRM, many of its branches still follow the traditional approach.



The employees have complaining about the lack of trained staff and fair incentives. The manager feels that the employees are reluctant to learn a new job and undergo training. In a private bank like HDFC, the scenario is much different. Employees are more willing to learn. They are well trained and they seem to be more satisfied with their job which enables them to provide best quality services to their clients.

From the research and the case study, it was found that the HRM is an important aspect in the bank, if there is no HRM system then there will be no rules and regulation regarding the promotion and transfer. If there is no HRM then the entire organization would come under a big problem. The employees would not perform well and they would not work for the organization as it happens in most of the government job. On the basis of only the performance the employees should be promoted in the banks. The employee should be motivated, by rewarding for its better performance and the transfer should be in such a manner that the employees are not affected by it. The personnel department may be responsible for the design of valuable personnel programmes or systems (e.g. job evaluation, management appraisal, wage and salary structure), their implementation must not only take place within other management systems, but largely involve the managers of those systems. Hence, the success or failure of



personnel programmes, even within its own terms, is often removed from the direct control of the personnel specialists themselves. Hence, human resource management (HRM) has gained increasing importance and is today viewed as a fundamental aspect of management. Human resource management has become task number one for many organizations.

QUESTIONNAIRE FOR THE MANAGER Q1.Can you briefly describe the listed functions of the HRM department at your bank? A:-

Q2. Has your HR function changed its structure over last three years? Yes No

Q3.Has your HR functions increased in scope and responsibilities in last three years? Yes If yes, please specify..... A:No

Q4. Which method is used to measure performance for HR in your bank? Modern Traditional


Q5. What are the techniques used for the selection and recruitment for job? Internal Recruitment Referrals from current employees Advertisement Employment agencies Campus Interview and placement Q6. What type of training methods are used to train personnel in your bank? On the job Off the job Both

Q7. In terms of your workers training background, a) Do you hire already trained professionals for the most part? Yes No Sometimes

b) Do you jointly fund training in those areas which more directly affect performance? Yes No Sometimes

Q8. To what extent do the employees come to you concerning their problem? Mostly what problem are they? A:-

Q9. Are you satisfied with the role expected by the management to be performed by you? If not, why? A:72


QUESTIONNAIRE FOR THE EMPLOYEES: Q1. How would you define your work? A:Q2. What would you describe as the most challenging thing in your job? A:Q3. What is the most enjoyable part of your work? A:Q4. How would you rate your team working skills? Excellent Average Below average

Q5. How do you handle pressure at work? A:Q6. Is there anything that you think the management of the bank can do to help you handle work-related stress better? A:Q7. How would you rate employee motivation in this bank? Above average Average

Below average


Q8. What would you like the management to improve on in order motivate employees in the bank? A:-

Q9. What is your mode of working? At my own pace just as I meet targets Within set times and deadlines In a group Other (specify) ____________

Q10. Give your honest opinion about employee treatment in this bank and what would you like to see change? A:-