T.Y.

BBI-SEMESTER V HUMAN RESOURCE MANAGEMENT

EXECUTIVE SUMMARY

Fast global & technological developments have made today’s business

environment highly uncertain & even chaotic. Organizations are seeking newer
ways to promote their adaptability to the complexities of the changed scenario so
as to survive & prosper. Globally organizations are striving to realize competitive
success through strategic management of human resources. Thus, people
management has never been more important than it is today. Therefore new themes
have emerged in the process, replacing some of the old ones. The new thinking in
this regard is referred to as Human Resource Management (HRM), which carries a
more proactive & strategic connotation.

The development of employee commitment through employee involvement &

empowerment is one of the key objectives of any HRM discourse. The complex
business objectives in today’s business environment are difficult to realize without
developing highly committed & motivated employees who would strive to
contribute to organizational goals. That is why, human resource issues are no more
the preserves of personnel specialists; rather line & general managers are being
increasingly involved in handling key HR issues & in evolving, shaping &
managing human resource strategies & policies. These developments have given a
far greater recognition to the HR function in organizational decision- making
processes.

Human resource is one of the natural resources of any country’s economy. It is the
wealth of the country. In the context of banking, human resource is of greater

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importance. The deployment of human resource through proper & efficient

selection, training & development, is called Human Resource Management.

The success of any bank largely depends on efficient human resource management,
apart from operations, marketing & sales, the HR department manages all the
efficient people working in operations & marketing divisions in an organization.

HYPOTHESIS

‘GROWTH OF BANKING SECTOR DEPENDS ON APPROPRIATE HRM

POLICIES’.

To analyze this hypothesis I have included a case study on STATE BANK OF

INDIA in which I have put forth the range of practices executed by the HR
department. I have even interviewed Mr. Rajiv Deka, Branch Manager of SBI &
Ms. Rohini Rai, Branch Manager of HDFC Bank, thereby representing the two
major sectors of BANKS, i.e., PUBLIC SECTOR & PRIVATE SECTOR.

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INTRODUCTION

The concept of human resource management is increasingly becoming a most vital

function of a modern manager. Human resource management is the management of
employees’ knowledge, abilities, talents, aptitudes, creative abilities, etc.

Human resources take active role in the modern economic scenario of any country.
The abundant physical resources alone cannot benefit the growth of the country
without human resource component, which transforms physical resources into
productive resources. In fact, the differences in the level of economic development
of the countries are largely a reflection of the differences in quality of their human
resources. The key element in this proposition is that the values, attitudes, general
orientation and quality of people of a country that determines its economic
development.

“People are our most valuable asset” is a cliché which is no member of any
management team would disagree with.

The concept of HRM assumes immense importance as HRM plays vital role in
meeting the challenging requirements of highly skilled & component human
resources due to globalization.

DEFINITION

Human resource management is planning, organizing, directing & controlling of

the procurement, development, compensation, integration, maintenance &

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separation of human resources to the end that individual, organizational and social
objectives are accomplished.

MEANING

Human resources management involves all management decisions & practices that
directly affect or influence people or human resources, who work for the
organization. In recent years, increased attention has been devoted to how
organizations manage human resources. This increased attention comes from the
realization that an organization’s employees enable an organization to achieve its
goals, & the management of these human resources is critical to the success of the
organization.

HRM is management function that helps managers to recruit, select, train &
develop members for an organization. Obviously HRM is concerned with the
people’s dimensions in organizations. HRM refers to set of programs, functions &
activities designed & carried out.

Human resource management means employing people, developing their

resources, utilizing, maintaining & compensating their services in consonance with
the job & organizational requirements.

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CORE ELEMENTS OF HRM

✔ People: Organizations mean people. It is the people who staff & manage
organizations.

✔ Management: HRM involves application of management functions &

principles for acquisitioning, developing, maintaining & remunerating
employees in organizations.

✔ Integration & Consistency: Decisions regarding people must be integrated &

consistent.

✔ Influence: Decisions must influence the effectiveness of organization

resulting into betterment of services to customers in the form of high quality
products supplied at reasonable costs.

✔ Applicability: HRM principles are applicable to business as well as non-

business organizations too, such as education, health recreation & the like.

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SCOPE

From entry to the exit of an employee in the organization;

Scope of HRM can be described based on the following activities of HRM. Based
on these activities we can summarize the scope of HRM into 7 different categories
as mentioned below after the activities. Let’s have a look at both of them

HRM Activities:-

1. HR Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee & Executive Remuneration

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10.Motivation
11.Communication
12.Welfare
13.Safety & Health
14.Industrial Relations

7 Categories of Scope of HRM:

1. Introduction to HRM
2. Employee Hiring
3. Employee & Executive remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM

SCOPE OF HRM

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

There are 2 broad functions of HRM. They are:

I. Managerial Functions
II. Operational Functions

Managerial Functions:

Managerial functions of Personnel management include planning, organizing,

directing, co-ordinating & controlling.

➢ Planning:
It is the charting out of programmes & changes in advance in the
achievement of organizational goals. Hence, it involves planning of human
resources requirements, recruitment, selection, training etc. It also involves
forecasting of personnel needs, changing values, attitudes & behavior of
their employees & their impact on the organization.

➢ Organizing:
In the words of J. C. Massie, an organization is a “structure & process by
which co-operative groups of human beings allocated its tasks among its
members, identifies relationships & integrates its activities towards a
common objective.” Given the complex relationships that exist between
specialized departments & the general departments, many top managers seek
the advice of personnel manager. In this manner, the organization establishes

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relationships among the employees so that they can together contribute to

the achievement of organizational goals.

➢ Directing:
After planning & organizing comes the execution of plan. The willing &
effective cooperation of employees towards the achievement of
organization’s goals has to be brought about by proper direction. Identifying
& utilizing maximum potentials of people is possible through motivation &
command. Direction, therefore, is an important managerial function in
ensuring optimum employee contribution.

➢ Co-ordinating:
It is the task of matrixing various employees’ efforts to ensure successful
goal achievement. The Personnel manager co-ordinates various managers at
different levels as far as the personnel functions are concerned.

➢ Controlling:
After planning, organizing, directing & co-ordinating, the various activities,
the performance is to be verified in order to know, at various points of time,
whether the activities are performed as per plans & directions. It involves
checking, verifying & comparing actual with the plans, identification of
deviations if any & correcting the deviations. Auditing training programmes,
analyzing labour turnover, overseeing morale surveys, conducting exit
interviews are some of the controlling functions of personnel management.

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Operative Functions:

The operative functions of HRM relate to employment, development,

compensation & relations. All these are interacted by managerial functions. Also,
they are to be performed in conjunction with management functions.

ORGANISATIONAL DESIGN----JOB DESIGN----JOB ANALYSIS

➢ Employment:
Employment function is securing & employing the people having required
level of human resources essential for achieving the organizational
objectives. It involves job analysis, human resources planning, recruitment,
selection, placement, induction & handling internal mobility.
➢ Job Analysis:
It is the study & collection of data relating to the operations &
responsibilities of a specific job. It includes:
a. Collection of data & information & facts relating to the various
aspects of jobs including men, machines & materials.

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b. Drawing up of job description, job specification, job requirements

& employee specification with which nature, level & quantum
human resources can be finalized.
c. Providing the guidelines, plans & the basis for job design & for all
operative functions of HRM.
➢ Human Resource Planning:
This is the process which assures the organization that it will have adequate
number of qualified persons, at requisite times, performing in a way to
satisfy the needs of the organization & also provide satisfaction to the
individual employee, so employed.
The process involves:
a. Estimating the present & future requirements of human resources
based on objectives & long range plans of the organization.
b. Calculation of net human resource requirements based on the
present availability of human resources.
c. Taking suitable steps to identify, mould, change & develop the
strength of existing employees so as to meet the future
requirements.
d. Preparation of action plans to acquire the balance human resources
from outside the organization & to develop the existing employees.
➢ Recruitment:
It is the process of searching for future employees (requirement) & ensuring
they apply for jobs in the organization.
It involves:
a. Identification of existing sources of candidates & developing them.
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b. Seeking out & identifying new sources of applicants.

c. Motivating the right type of candidates to apply for jobs in the
organization.
d. Ensuring a healthy balance between internal & external sources.
➢ Selection:
It is the process of ascertaining the qualifications, experience, skill,
knowledge, etc. of an applicant to ascertain his/her suitability for the job
applied.
This includes:
a. Developing application blanks.
b. Creating & developing valid & reliable testing techniques.
c. Formulating interviewing techniques.
d. Checking of references.
e. Setting up for medical examination policy & procedure.
f. Line Managers to be involved in the decision making.
g. Sending letters of appointment.
h. Employing the selected candidates, when he reports for duty.
➢ Placement:
It is a process of allotting to the selected candidate the most suitable job, as
per the job requirements & employee specifications.
This function includes:
a. Counselling the concerned managers regarding the placements.
b. Overseeing the follow-up studies, employee performance appraisal
to monitor employee adjustment to the job, in the coming days.
c. Correcting wrong/misjudged placements, if any.
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➢ Induction & Orientation:

These are procedures by which a new employee is rehabilitated in the new
surroundings & introduced to the practices, procedures, policies, people, etc.
of the organization.
It includes:
a. Familiarizing the employee with company philosophy, objectives,
policies, career planning & development, company product,
market share, history, culture, etc.
b. Introduce new employee to the people—his colleagues,
supervisors & subordinates.
c. Mould the employees by orientation methods to the new working
conditions.

➢ Human Resource Development:

This process involves improving, moulding, & developing the skills,
knowledge, creativity, attitude, aptitude, values, commitment, etc. based on
the present & future job & company requirements.

➢ Performance Appraisal:
It is the continuous & systematic evaluation of individual employees with
respect to their performance & their potential for future development.
It includes:
a. Enunciating policies, procedures & techniques.
b. Assisting functional managers.
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c. Reviewing & summarizing reports.

d. Evaluating the effectiveness of various programmes.

➢ Training:
It is the process of transmitting the employees the technical & operating
skills & knowledge.
It includes:
a. Identification of training needs of the individuals & for the
organisation.
b. Developing appropriate training programmes.
c. Assissting & advising the management in the conduct oftraining
programmes.
d. Transmitting requisite job skills & job knowledge to the
employees.
e. Asses the effectiveness of the training programmes.

➢ Management Development:
It is the process of designing & conducting appropriate executive
development programmes so as to develop the managerial & human
relations skills of the employees.

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It includes:
a. Identification of the areas in which management development is
needed.
b. Conducting development programmes.
c. Motivating executives/managers.
d. Designing special development programmes/ assessment
procedures for promotions.
e. Utilising the services of specialists—both internal & external for
development &/or Institutional (external) development
programmes.
f. Evaluating the effectiveness of executive development
programmes.
➢ Career Planning & Development:
It is the planning of one’s career & implementation of career palns by means
of education, training, job search & acquiring of work experience.
It includes:
a. Internal mobility—vertical & horizontal transfers, promotions &
demotion.
b. Transfer—process of placing employees in the same level jobs
where they can be utilised more effectively as per the needs of the
organisation. This also means—developing transfer policies,
offering assistance & guidance to employees under transfer orders
& evaluating transfer policy periodically.
c. Promotion—it deals with the upward assignment of employees to
occupy higher positions (with better status & pay) in consonance
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with resoueces of employees & job requirement. The department

must ensure that:
i.Equitable, fair & consistent promotions are formulated &
administered.
ii.Managers & employees are given assistance & guidance on
the subject of promotion.
iii.Execution of promotional policies are as per policies &
procedures.
a. Demotion—is the downward assignment of an employee in an
organisation. The department must ensure that:
i.Equitable, fair & consistent demotion policies are drawn up.
ii.Assisting & advising employees regarding demotions.
iii.Ensure fair implementation of demotion policies &
procedures.
➢ Organisational Development:
The planned process drawn up to improve organisational effectiveness
through changes in individual & group behaviour, culture & systems of the
organisation—drawing models from applied behavioural science.
➢ Human Relations:
Administering various human resources policies like employment
development & compensation & interactions among the employees on one
hand & employees & the management on the other, create a sense of
working relationships between workers & management & trade unions.
Basically they are all interactions between human beings.

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Human relations, is therefore, is an important area in management which

integrates people into worksituations in a way that motivates people to work
together with economic, psychological & social satisfaction thereby
increasingtheir productivity. Hence Human Resources Management
functions will centre around:
a. Understanding perception, personality, learning, intra & inter personal
relations, inter & intra group relations.
b. Motivating all employees.
c. Promoting employee morale.
d. Developing communication skills.
e. Developing leadership skills.
f. Redressing satisfactorily through a well defined grievance procedure.
g. Handling disciplinary cases by established disciplinary procedures & in
all fairness.
h. Providing adequate counselling to solve employees’ personal, work &
family problems, thereby releasing their stress & strain.

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FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions

Social Objectives Legal Compliance Benefits

Union Management Relations

Organisational Objectives Human Resource Planning

Employee Relations

Recruitment & Selection

Training & Development

Performance Appraisals

Placement & Orientation

Employee Assessment

Functional Objectives Performance Appraisals

Placement & Orientation

Employee Assessment

Personal Objectives Training & Development

Performance Appraisals

Placement & Orientation

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Compensation

Employee Assessment

OBJECTIVES
➢ Societal Objectives: to be ethically & socially responsible to the needs &
challenges of the society while minimising the negative impact ofsuch
demands upon the organisation.

➢ Organisational Objectives: To recognise the role of HRM in bringing

about organisational effectiveness. HRM is only means to achieve & assist
the organisation with its primary objectives.

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➢ Functional Objectives: To maintain department’s contribution & level of

services at a level appropriate to the organisation’s needs.

➢ Personal Objectives: To assist employees in achieving their personal goals,

at least in so far as these goals enhance the individual’s contribution to the
organisation. This is necessary to maintain employee performance &
satisfaction for the purpose of maintaining, retaining & motivating the
employees in the organisation.

Objectives of Personnel Management are determined by organisational objectives

& individual & social goals. The main objectives of Human Resource Management
are drawn from the organisational objectives. The other objectives of HRM are to
take care of the needs, aspirations, dignity of the individual employees & at the
same time keeping in mind the socio-economic problems of the community & the
country.

The objectives of HRM are as follows:

i. To create & utilise capable & motivated workforce to achieve the basic
organisational goals.
ii. To establish & maintain proper & sound organisational structure & healthy
working relationships among all its employees.

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iii. To ensure the integration of individual group’s goals with those of the
organisation.
iv. To create facilities for individuals & groups to develop so as to be in tune
with the growth of the organisation.
v. Proper & optimum utilisation of human resources.
vi. To ensure adequate & equitable wages, incentives & other benefits so that
satisfied individuals & groups are motivated to take on challenges.
vii.To maintain high employee morale.
viii.To continuously upgrade the skills & knowledge of the employees, by
training & development programmes.
ix. To ensure opportunity for participation in management to the extent
possible.
x. To provide acceptable & effective leadership.

HUMAN RESOURCE MANAGEMENT IN BANKS

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The classification of the Indian banks into broad groups such as public sector, old
private sector, new private sector, foreign, regional rural banks & cooperatives are
largely on the basis of ownership pattern. It is also well known that the business
mix, delivery channels & IT strategies of these organisations vary substantially.
What is little known but of greater importance is thateach of these banks follow
very distinct HR practices which have contributed, substantially, to the business
processes.

HRM in Cooperative Banks

It is sad that the HR policies of cooperative banks are totally dominated by the
Registrar of Cooperatives. This is, perhaps, one reason why the cooperatives are
unable to improve themselves.

HRM in Regional Rural Banks (RRBs)

As regards RRBs, most of them adopt the HR policies of sponsor banks, which are
not appropriate for their special nature.

HRM in Public Sector Banks

In the recent times, the contours of HR function in public sector banks are slowly
but definitely changing. One could say that these banks are discovering the HR
function & it is hoped that these banks will fast catch up with others. It may be
recalled that, in a controlled environment & to meet with the rapid branch
expansion- since 70s- Public Sector Banks(PSBs) have adopted HRM practices
similar to that of Government departments. Herein HRM did not have a direct role

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in business development but was more concerned with centralized recruitment to

staff & providing them across the country.

HRM in Private Banks & Foreign Banks

The HR function as practiced by private & foreign banks is effectively involved in

the identification of specific skills that each job warrants & recruiting suitable staff
by every way possible. In these banks, recruitment is a continuous process with a
strong focus on getting the right person for the right job by offering appropriate
compensation, incentives & designations. There is a great energy spent in keeping
the turnover low & offering appropriate training inputs. Possibly there are as many
pay structures as there are employees. More importantly, HRM has a role in
monitoring & mentoring the employee. There are no routine transfers. Rather
people are recruited in different geographical locations & different levels.
Technology has helped in centralizing the back office & other functions such that
service can be provided from a distance. These institutions adopt a proactive
performance appraisal system but still short of 360 Degree appraisals. Their
training process is concerned with both skill building & motivating. It should,
however be said that the demand for professionals on account of growth of Indian
Business is such that the efforts of HRM have not helped it from completely
staving off staff turnover in the ranks.

HRM in Public Sector Unit Banks (PSU Banks)

In the case4 of PSU Banks the recruitment process is annual & large scale. People
are recruited at the lowest grade & promoted I due course.this makes the career
path of each employee the responsibility of the organisation. This also underlies a

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belief that anyone can occupy any desk. In such a system specialisation is the loser.
Recruitment at higher levels is a recent phenomenon & more an exception than
rule. Pay packets are uniform for a grade/level with annual increments & uniform
perquisites. Increments are earned automatically.

Transfers are not driven by business requirements but a matter of routine.

Vacancies get created as & when people move up. It is not uncommon to se new
departments spring up just to allow promotions. In a way such a move is justified
as salary is linked to grades & not performance. The concept of job rotation is
practiced with great conviction. As regard leave it is seen that modern business
organisations, driven by work life balance issues & ‘operational risk’ ensure that
certain annual leave is mandatory. In the case of PSU Banks, the “compulsory
leave system” has not yet taken root. In the circumstances an important task at
hand is training the staff member, who, on accont of age profile is not comfortable
working in an IT environment. HRM should also take immediate steps to improve
productivity. There is a simultaneous need to balance the demand of IT savvy
youngsters joining the organisation who ask for high salaries. PSU Banks are not
able to offer market driven salary. Given that banking business & the business of
Government are distinct, there is, in the case of PSU Banks, an urgent need that
salaries are not limited by what is paid in the ministry but unshackled. Till that
happens, HRM should, innovatively tackle the issue.

Responsibilities Of The Human Resource Management Department In

Banks:

Role:

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The role of the Human Resource Department is to create the climate & conditions
in which management throughout the Bank will be enabled to optimise the
individual & collective contribution of all employees to the short & long-term
success of the Bank.

Responsibilities:

✔ To be the principal sponsor & “guardian” of HR policies in the Bank.

✔ To propose & obtain agreement on changes to these policies from time to
time & to ensure that policies which have been agreed are being
implemented throughout the Bank.
✔ To contribute fully to the task of meeting the business challenges whichthe
bank has to face by supporting Branch/Unit Managers in continuously
developingthe potential of employees & in creating conditions in which all
the employees are motivated to meet the objectives of the Bank.
✔ To continuously monitor the Bank’s strategies to ensure that HR policies are
approriate & that employee numbers & skills are fully supportive of such
strategies.
✔ To deliver a full range of personnel services in support of line management.
These services include manpower planning, recruitment/transfer,
remuneration, training & employee welfare.
✔ To support line management in their day-to-day management of the
workforce by providing advice & consultancy on personnel & performance
management issues.

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EMPLOYEE RELATIONS IN BANKS

The banking sector has been characterized by apparently harmonious industrial

relations & has not suffered from the “British Diseases” of industrial action &
demarcation issues associated with parts of manufacturing industry (e.g. Batstone,
1984). Banks have promoted unitarism (Fox, 1966) encouraging an ethos of
teamwork, shared interest & loyalty, wanting commitment beyond the cash nexus.
While banks are generally seen as having a passive approach to employee
relations, paternalism did underpin the system & particularly important was the
system of internal promotion supported by an unwritten agreement between the
major UK Banks on no poaching. The internal labour market created two
categories of employees: career & non-career which equated to a male/female
divide.

Retail banking is a highly labour intensive industry with labour costs forming 70%
of total operating expenditure & “involvement in fund transmissions meant that a
majority of clerical staff have not been used as a means of marketing the bank’s
products nor directly for increasing business but to process existing accounts. They

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have been regarded as an overhead rather than a resource.” Until the 1980s,
competition between the Banks has been limited, banks operating as an oligopoly&
Government’s concern with maintaining economic stability with limits to lending,
& control over interest rates facilitated this. The oligopoly fed through to the
management of staff as national wage bargaining minimized competition for
labour. However deregulation led to the collapse of the national system & a
questioning of the old employment practices.

CURRENT CHALLENGES FACED BY BANKS IN HRM

➢ Effective work force:

A time-consuming & hectic job is to hunt the right talent. Higher the
professional value of the vacancy, tougher is the search. Identifying the right
stuff followed by negotiation is the element which makes the job tough for
the employer. Banks are keenly interested to fill up two types of breeds of
professionals.
Ones who are outstanding professionals with high job hopping attitude—
these are those who come in-work for some tome & then leave for better
prospects. Others are those who are keenly picked-up, trained & are
somehow retained to be developed as future management within the bank.
Management trainees are a growing popular phenomenon where freshly
qualified business graduates are engaged by banks & a certain percentage of

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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 database
management problem. This has been facilitated by specialized hiring
agencies who may take up the job of hiring in case of large number of
vacancies.
➢ Right People:
The most difficult agenda of HRM across the banking sector is to retain the
right people. Sudden growth of retail banking & other services has put
pressure on HR Managers in banks to engage more professionals within
shorter span of time thereby attracting manpower in other banks on
attractive packages has made the job market very competing.
A bank in a normal course invests time & money to hire & train the
appropriate workforce for its own operations. This readymade force is often
identified & subsequently picked-up on better terms by others.
➢ Compensation:
How much to pay the right employee & how much to the outstanding
performer. Banks have traditionally followed pay scales with predetermined
increments, salary slabs, bonuses & time based fringe benefits like car &
house advance, gratuity, pensions, etc.
The situation is not the same anymore. An increment of Rs.500-800 per
annum is no more a source of attraction for a professional anymore. A basic
pay with traditional formulas of linkage with medical & other facilities has
no soothing today.
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A promise of future growth, learning culture & corporate loyalty is out of

dictionary & does not mean anything to this energetic & competent
performer today.
A waiting period of 3-4 years in each cadre haunts the incumbents who
strongly believe in immediate compensation. A freshly hired professional
requires a brand new car or car loan n resuming office quite contrary to his
previous breed of bankers who would wait for the job seniority to qualify for
a car loan.
➢ Job Satisfaction:
Everybody in the bank wants to work in the preferential department,
preferential location, city of his own choice & boss of his liking. An
administrative deviation from any of these results in lowered job
satisfaction.

Although hiring is normally based on regional requirement matching the

area of activity with that of employee’s nativity yet other elements like
appointment in the department of choice & preference makes the job of HR
manager quite challenging.
What the HR manager cannot afford is the dissatisfied employee who not
only disrupts the smooth working himself, but also spreads the negativity to
others by his de-motivated attitude.
➢ Morale Boosting:
What has long been overlooked is the morale boosting of the employees by
the organizations. Human beings even if satisfied of material wellbeing need
to be appraised & encouraged constantly.
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Smart banks have realized this need & have taken steps to keep their work
force motivated through proper encouragement like man of the mouth
awards, repeat get-togethers, conferences, sports events, dinners, company
sponsored travel, reunions, etc. This is the way employees create a feeling of
belongingness.

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TRAINING & DEVELOPMENT

Meaning & Definition:

Training:
Organization & individual should develop & progress simultaneously for their
survival & attainment of mutual goals. So every modern management has to
develop the organization through human resource development. Employee training
is the important sub-system of human resource management. Employee training is
a specialized function & is one of the fundamental operative functions for human
resources management.
After an employee is selected, placed & introduced he or she must be provided
with training facilities. Training is the act of increasing the knowledge & skill of
an employee for ding a particular job. Dale S. Beach defines the training as “the

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organized procedure by which people learn knowledge & skill for a definite
purpose.”
The training system in the banking industry has a strong structural base. However,
in the past the training activities have been more ritualistic due to absence of a
strategic link between training & human resources development. Today, it is
important that the training function is made an effective organizational intervention
by establishing a clear policy of training & development within the framework of
total human resource development. The training establishments need to be actively
involved in the total training process starting from the identification of the training
needs, evaluation of training effectiveness & the benefits of training to the end-
users viz. the internal & external customers.
The need for training & development is determined by the employee’s
performance deficiency, computed as follows:
Training & Development Need = Standard Performance – Actual
Performance.
We can make a distinction among training, education & development. Training, as
was started earlier, refers to the process of imparting specific skills. Education, on
the other hand, is confined to theoretical learning in the classrooms.
Training & Education Differentiated:

TRAINING EDUCATION
Application oriented Theoretical oriented

Job experience Classroom learning

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Specific tasks General concepts

Narrow perspective Broad perspective

Development:

“Give a man a fish, & you give him meal. Teach man to fish, & you give him a
livelihood.”

This ancient Chinese proverb seems to describe the underlying rational of all
raining & development programs. No banking organization can long ignore the
training & development needs of its employees without seriously inhabiting the
performance. Even the most careful selection does not eliminate the needs for
training, since people are not molded to specifications & rarely meet the demands
of their jobs adequately.

This HRM function deals with the overall development of the employees. This
includes their professional & well as their personal development. It is a part of
HRM function to identify opportunities for enhancing the skills of the resources.
Promotion is regarded as one of the ways of recognizing development undertaken
by an employee. Development is also largely dependant on training.

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Generally people think that training & development are one & the same, but there
are many differences between them. They are as follows:

TRAINING DEVELOPMENT
Duration:
Training courses are It involves a broader long
designed mostly for short term education for a long
term. term.
Managerial/Operative
Personnel:
Training is normally
It is directed at managerial
directed at operative
personnel to acquire
employees & related to
conceptual & theoretical
technical aspects.
knowledge.
Specific/General:
Training is more specific job It is more general in nature,
related information. especially top management

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level.
Method:
More emphasis on the “on More emphasis on the “off
the job method.” the job method.”
Cost Involved:
Imparting training is less Development is more
expensive. expensive.
Who Imparts:
Mostly the supervisors It is undertaken by
impart training. supervisors, outside experts
& self.
Frequency:
Less frequent. Mostly at More frequent & continuous
induction & at every change in nature.
in job.
Theoretical/Practical
Aspects:
Emphasis is placed on
Emphasis is placed on theoretical & conceptual
practical or technical aspects.
aspects of work.

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THE TRAINING PROCESS

Organizational Objectives &

Strategies

Assessment of Training
Needs

Establishment of Training
Goals

Devising Training
Programme

Implementation of Training
Programme

Evaluation of Results
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METHODS & TECHNIQUES OF

ON-THE-JOB OFF-THE-JOB

✔ JOB ROTATION ✔ VESTIBULE

✔ COACHING TRAINING
✔ JOB ✔ ROLE PLAYING
INSRTUCTIONS ✔ LECTURE
METHOD
✔ CONFERENCE

On-the-Job Training Method (OJT):

Majority of industrial training is on the job training type. OJT method is mainly
adopted while orienting new employees, introducing innovations in products and
services and in special skills training. OJT is conducted at the work site and in the
context of the job. Often, it is informal, as when an experienced worker shows a
trainee how to perform the job tasks.

It includes job rotation, job coaching, job instruction or training through step-by-
step and committee assignments.

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Off-the-Job Training Method:

Under this method of training, trainee is separated from the job situation and his
attention is focused upon learning the material related to his future job
performance. Since the trainee is not distracted by the job requirements, he can
place his entire concentration on learning the job rather than spending his time in
performing it. There is an opportunity for freedom of expression for trainees.

DEVELOPMENT IN BANKS

The banks must emphasis on human resource development as one of the critical
areas of its operations. It should redraw its training & development schedules to
suit the requirements of the current emerging scenario. Requisite training should be
imparted to various branch level functionaries as also administrative staff. Besides
in-house training the reputed external agencies should be utilized for human
resource development with a view to updating their knowledge & to keep them
abreast of the current banking scenario for meeting the challenges ahead. The
concept of segment specialization may be resorted to in respect of the personnel
selected therefore. It is now thought expedient to plan & strengthen the squad of
skilled officers in various segments as IT, marketing management, risk
management, risk based supervisors, law, security, etc.

The lead bank must play an effective role in improving the work environment &
pursuing staff welfare measures in the form of whole range of financial assistance
with reference to various loans of sorts.

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Human resource skills are other areas of challenge. Because of modernization &
technological advancement rigorous training & man power planning are required.
In the market scenario characterized by heightened competition, growing customer
needs & technological up gradation, the bank fine tunes its HT policy to meet its
corporate objectives. New training systems have been developed to impart
competencies & a broad range of skills among the employees to deliver faster &
superior service that can delight the customers. The Industrial Relations in the
banks have been harmonious & cordial.

RECRUITMENT
Meaning and definition:
The human resources are the most important assets of an organization. The success
or failure of an organization is largely dependent on the caliber of the people
working therein. Without positive and creative contributions from people,
organizations cannot progress and prosper. In order to achieve the goals or the
activities of an organization, therefore, they need to recruit people with requisite
skills, qualifications and experience. While doing so, they have to keep the present
as well as future requirements of the organization in mind.

Once the required number and kind of human resources are determined, the
management has to find places where the required human resources are/will be
available and also find means of attracting them towards the organization before
selecting suitable candidates for jobs.

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Recruitment is defined as, “ A process to discover the sources of man power to

meet the requirements of the staffing schedule and to employ effective measures
for attracting that man power in adequate numbers to facilitate effective selection
of an efficient work force. “

Objectives of recruitment

Some of the objectives of recruitment are:

• To attract people with multi-dimensional skills and experiences that suits the
present and future organizational strategies
• To induct outsiders with a new perspective to lead the company
• To infuse fresh blood at all levels of the organization
• To devise methodologies for assessing psychological traits

Factors affecting recruitment:

RECRUITMENT PROCESS
Personnel Job Employee
Planning Analysis Requisitio
n

Recruitme Screening To Selection

Job Searching
nt
Vacancies Activation Applicatio Potentia
Planning
“Selling” n Pool l Hirers
Number
Message
Type
Media
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Strategy
Developme Evaluation
Applicati
nt Where & Control
on
How When Populatio
T.Y.BBI-SEMESTER V HUMAN RESOURCE MANAGEMENT

Process of Recruitment:

Recruitment refers the process of identifying and attracting job seekers so as to

build a pool of qualifies applicants. This process comprises of five interrelated
stages, viz,

• Planning
• Strategy development
• Searching
• Evaluation and control

The ideal recruitment process is the one which attracts relatively larger number of
qualified applicants who will survive the screening process and accept positions
with the organization, when offered to approach the ideal people, individuals
responsible for recruitment process must know how many types of employees are
needed, where and how to look for individuals with appropriate qualifications and
interests, what inducements to use for various types of applicants group, how to

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distinguish applicants who are unqualified from those who have a reasonable
chance of success, and how to evaluate their work.

SELECTION

Definition

Selection is defined as the process of differentiating applicants in order to identify

and hire those with a greater likelihood of success in a job.

The objective of selection decision is basically picking an applicant from a pool of

applicants who has the appropriate qualifications and competency to do the job.

The selection procedure cannot be effective until and unless-

• Requirements of the job to be filled have been clearly specified.

• Employee specifications (physical, mental, social, behavioral etc) have been
clearly specified.
• Candidates for screening have been attracted.

Selection process is preferable because:

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• It is easier for applicant as they can send their applications to a single

centralized department/agency.
• It facilitates contacts with applicants because issues pertaining to
employment can be cleared through one central location.
• It helps operating managers to concentrate on their operating
responsibilities. This is helpful during peak operating period.
• It can provide for better selection because hiring is done by specialist trained
in staffing techniques.
• The applicant is better assured of consideration for a greater variety of jobs.
• Hiring cost may be cut because duplication of efforts is minimized.

Selection Process:

The selection process consists of the following steps:

1. Application form: Many companies formulate their own style of

application form depending upon the size and nature of business
carried on, type and level of the job etc. Information is generally
required on the following items in the form: personal background,
educational attainments, work experience references etc.
2. Written test: Written test is conducted for the qualified candidates
after they are screened on the basis of application form to measure the
candidates ability towards the job, his aptitude reasoning, knowledge
in various disciplines, English language etc.

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3. Preliminary Interview: The next step that tag along the selection
procedure is a preliminary interview wherein the applications are
scrutinized so as to eliminate unqualified applications. Preliminary
Interviews are short. This interview thus provides information about
the candidate related to the job or personal specifications.
4. Selection Test: After passing through the interview the next stage that
applicant has to prove himself on are the selection tests. There are
different types of selection tests for different levels of the organization
and that too is further differentiated within different types of
organizations. Some of the most common and well-known tests that
an applicant has to go through are;
a. Ability test
b. Aptitude test
c. Personality tests: Which is common mostly for the higher level
of management are given to measure a prospective employee’s
motivation to function in a particular working environment.
d. Internal test: to measure an individual’s activity preferences.
e. Graphology Test: is an art wherein the individual’s handwriting
is seen and accordingly his personality traits are derived by the
way he writes.
f. Polygraph Test: Are designed to ensure accuracy of the
information given in the applications.
g. Medical Tests: Reveal physical fitness of the candidate.
h. Drug test: Help to ensure the presence of illegal or
performance-affecting drugs.
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1. References and background checks: Many employer request names,

address, and telephone numbers or references for the purpose of
verifying information and, perhaps, gaining additional background
information on an applicant.
2. Selection Decision: After collecting data from all the preceding steps,
this is the most crucial step in the entire selection process. The main
difference between the preceding stages and this is that former is used
to short list the number of candidates and later one is to make a final
decision from the pool of individuals who pass the tests, interviews
and reference checks. The view of line manager will be generally
considered in the final selection because it is he/she who is
responsible for the performance of the new employee. The HR
manager plays a crucial role in the final decision.

3. Physical Examination: After the selection decision and before the job
offer is made, the candidate is required to undergo a physical fitness
test. The result of the medical fitness test is recorded in a statement
and is preserved in the personal records. The main objectives of this
test are as follows:
 To detect if the individual carries any infectious diseases.
 To determine whether an applicant is physically fit to perform
the work.
 It helps to determine if there are any physical capabilities
which differentiate successful and less successful employees.

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 Medical check up protects applicants with health defects from

undertaking work that could be detrimental to them or might
otherwise endanger the employer’s property.
 Last, but not the least such examination will protect the
employer from workers compensation claims that are not valid
because the injuries or illness was present when the employee
was hired.
1. Job offer: The next step is selection process is Job offer for those
applicants who had passed the previous stage. Job offer is made
through a letter of appointment. Such a letter usually contains the date
by which the appointee must report on duty. Appointee must be given
a reasonable time for reporting because it may be quite possible that
the appointee is employed in some other company or must be residing
in some other city and for such other reasons. Company may also
want the appointee to delay in joining the job because the job may
require undergoing some training program.
Decency demands that rejected applicants must be informed about
their non-selection. These applicants’ data must be used for future
references.
2. Contract of employment: After the job offer is made and the
candidates accept the offer, certain documents need to be executed by
the employer and the candidate. One such document is Attestation
form. This form contains vital details about the candidate, which are
authenticated and attested by him/her, which could be used for future
reference.
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Another document is contract of employment. This document contains

the terms and conditions of employment like designation, perks, term
of job and so on. The information written in the contract may vary
according to the level of the job.
The main drawback of the contract is that it is difficult to enforce
them.
3. Concluding the selection process: The selection process will not end
with executing the employment contract. The step is reassuring the
candidates who have not been selected. Such candidates must be told
that they were not selected, not because of any serious deficiencies in
their personalities, but because their profiles did not match the
requirements of the organization.
4. Evaluation of selection process: The broad test if the effectiveness of
the selection process is the quality of the personnel is hired. An
organization must have competent and committed personnel. The
selection process, if properly done, will ensure availability of such
employees. Audit must be conducted by the people who work
independent of the HR department.

New methods of selection:

➢ 360 degree selection or participative selection: Normally supervisors

administer the selection test and interview. They judge the fit between the
job and the candidate. But the employee skills, knowledge and performance
affect not only superiors but also subordinates and the employees of the
same level. Hence the organization started involving the subordinates and

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the employees of the same level in administrating the employment tests and
interviews. This type of selection program is called 360 degree program.
➢ Employee leasing: The client company leases employees from a third party,
not on temporary basis but on a full time basis and for long help. An
interesting feature is that the client company need not perform personnel
activities such as hiring compensation or record keeping. Employees
working elsewhere are leased. They are not directly employed by the
company where they are working. Employees not recruited by one client are
sent to another.
➢ Selection by invitation: Management observes the performance of the key
executives of competitors. If the performance of the key executives is
excellent or the key executives are the change agents, the management
invites them to join the organization by offering attractive salary and
benefits. Thus, the significant performance of the executives forms basis for
selecting them by invitation.

FUTURE OF HRM

If HRM is not to remain more in the realm of rhetoric with wide disparities
between theory and practice, several things need to take place. First, HRM needs to

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be diffused across industries and the economy. For this to occur the following
conditions need to be satisfied:

➢ HRM should be an essential part of management education and training.

From this, two important consequences are likely to follow. HRM is likely
to be integrated into corporate strategies and line managers’ functions and
decisions. This would reduce the need for HRM specialists, except at the
policy level where they will have a greater voice. Business strategies are
then likely to be built less around low cost and low wages, but around the
real sources of competitive advantage such as flexibility, quality and
customer service.
➢ Employment policies which support employment security, without which
HRM policies, including training, would have little motivational effect. This
does not mean guaranteed employment, but a policy which treats
termination as a last, rather than a first, resort. Learning from international
experiences and diffusing the information can have a transforming effect, as
was the case when American manufacturing was transformed through in-
depth studies of Japanese manufacturing in the automobile industry.
➢ Substantial investment in people and the willingness of employers to view
the benefits from a long-term perspective - a difficult task in a system which
is driven by short-term investor pressure.

CASE STUDY

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STATE BANK OF INDIA

In February 2001, India's largest public sector bank (PSB), the State Bank of India
(SBI) faced severe opposition from its employees over a VOLUNTARY
RETIREMENT SCHEME (VRS). The VRS, which was approved by SBI board
in December 2000, was in response to FEDERATION OF INDIAN
CHAMBERS OF COMMERCE AND INDUSTRY'S (FICCI) report on the
banking industry. The report stated that the Indian banking industry was
overstaffed by 35%. In order to trim the workforce and reduce staff cost, the
Government announced that it would be reducing its manpower.

Following this, the Indian Banks Association (IBA) formulated a VRS package for
the PSBs, which was approved by the Finance Ministry.
Though SBI promoted the VRS as a ‘Golden Handshake,' its employee unions
perceived it to be a retrenchment scheme. They said that the VRS was completely
unnecessary, and that the real problem, which plagued the bank were NPAs. The
unions argued that the VRS might force the closure of rural branches due to acute
manpower shortage. This was expected to affect SBI's aim to improve economic
conditions by providing necessary financial assistance to rural areas. The union
also alleged that the VRS decision was taken without proper manpower planning.

In February 2001, the SBI issued a directive altering the eligibility criteria for VRS
for the officers by staffing that only those officers who had crossed the age of 55
would be granted VRS.

The Protests

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The SBI was shocked to see the unprecedented outcry against the VRS from its
employees. The unions claimed that the move would lead to acute shortage of
manpower in the bank and that the bank's decision was taken in haste with no
proper manpower planning undertaken. They added that the VRS would not be
feasible as there was an acute shortage of officers (estimated at about 10000) in the
rural and semi-urban areas where the branches were not yet computerized.
Moreover, the unions alleged that the management was compelling employees to
opt for the VRS. They said that the threat of bringing down the retirement age from
60 years to 58 years was putting a lot of pressure on senior bank officials to opt for
the scheme.

The Post VRS Days

According to reports, SBI's total staff strength was expected to come down to
around 2,00,000 by March 2001 from the pre-VRS level of 2,33,000 (Refer Table
II). With an average of 5000 employees retiring each year, analysts regarded VRS
as an unwise move. By June 2001, SBI had relieved over 21,000 employees
through the VRS. It was reported that another 8,000 employees were to be relieved
after they attained the retirement age by the end of 2001.
Analysts felt that this would lead to a tremendous increase in the workload on the
existing workforce.

Analysts felt that SBI would have to take serious steps to reorient its HRD policy
to restore employee confidence and retain its talented personnel. SBI had many
strong organizational strengths and an excellent training system, but due to weak
HR policies, it had lost its experts to its competitors.

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

1. HRM CHALLENGES

When interviewed the two personnel, both of them were of the opinion that the list
of HRM challenges in banks are as shown in the graph.

➢ The biggest HRM challenge is sustaining & increasing the profits of the
bank.
➢ Following that is improvement in the operational effectiveness of the HR
department.
➢ The least priority on the challenge list is given to new distribution channels
& on introducing new products & services.

1. THE ROLE OF HRM IN BANKS TODAY

When asked about the role of HRM in banking, Mr. Rajiv Deka was of the
opinion that HRM drives business transformation initiatives. It is therefore not

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completely incorrect to conclude that HRM participates in the decision &

allocation process after the major issues are decided.
Ms. Rohini Rai however emphasized saying that “In the post business decisions,
HRM participation in the business implementation & resource allocation is
solicited. It is necessary that the banks take up human resources accounting &
involve HRM departments fully in the business process changes so that the full
potential of change in business processes may be realized.”
Interestingly the response about the changes within the HR Departments with
reference to a change in the business strategy revealed similar dichotomy.

2. EFFECTIVENESS OF HRD

Posting right person for the right job, retaining talents, planning for the long term
needs of the bank, dovetailing employee preferences in the deployment process, &
capacity to make staff changes that drive business changes are the corner stones of
HR strategy. How effective are the banks in performing these tasks?

The two personnel were of the opinion that:

✔ They are effective when it is a question of ability to post staff with

appropriate skills & capabilities for the job/s.

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✔ Also these departments have enough room/flexibility with regard to their

ability to make changes in staffing pattern/position based on changes in
business conditions.
✔ As regards PSU banks, the response to the effectiveness should, be read in
conjunction with the issues on transfer & promotion policy. The posting of
staff with appropriate skills & capabilities could be well suffixed with
“subject to availability of suitable skills & talents in the given location”.

HRM effectiveness could also be suited with reference to be its role in staffing of
each department/unit. In an effective organization, the department will have a say
in the matter & work hand in glove with the line departments. This seems to be in
vogue in private sector & foreign banks. Invariably, in these organizations, the line
departments & HRD jointly select candidates, while HRD is involved in the head
hunting, finalizing pay & related aspects. In the case of PSBs, in the past the
selection process was through advertisements for a large number of posts.

On selection, the candidates were given an induction training & job-specific

training. Undoubtedly this has been a successful model as it has thrown up a large
number of very efficient leaders in the sector. In the recent years, however, there
are apparent changes in the way the staff are selected in PSBs. There are campus
recruitments & sporadic instances of specialists being inducted at higher levels.

Some of the banks have also started offering market related pay. Yet, as of now, it
appears that in the case of PSBs the line departments have no right in the selection
of candidates. The responses clearly show that there is a need for greater
coordination between the HR & line the participant HR functionaries have

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indicated that job rotation is an important aspect of employee development. They

have also indicated that most jobs are becoming specialist in nature. Indeed the
concept of job rotation is contrary to the development of specialist skills.

1. COPING WITH THE EMPLOYEE TURNOVER

If a bank does not have the staff with the required skills at the required place it
would resort to recruiting. This coupled with

I. The need for specialization & new skill sets for CBS &
II. Marketing of bank products bring us to the two issues that have gained
the attention of HR departments in the recent years, namely staff
deployment techniques & managing employee turnover.

Across the banking sector everyone is facing a high level of employee turnover in
the recent years. If till recently it was the BPO sector, which was the biggest
recruiter, it is now the turn of retail business. It is seen that bank employees are
able to take up jobs in these relatively new areas. In the view of this, it is seen that
the turn over level during the current year is higher than the previous years.

It can be said that the current period is the most challenging times for HRD, as
staff-mostly talented & experienced officers-move from public sector to private
sector & within the private sector to the greener pastures. Certain specialist areas
such as treasury management, risk management & customer relationship face acute
shortage of experienced & talented staff. As PSBs cannot offer-barring a fraction
of their business-market related salaries the turn over has been high. Another
reason for loss of staff is the requirement of domain staff in the IT companies.
Transfers have also been cited as one of the reasons for turnover in the public
sector. The available avenues to manage this issue are outsourcing, re-skilling,
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hiring temporary staff; reuse of retired staff, etc. it is seen from the news reports
that, in making financial inclusion happen, banks have resorted to the use of the
expertise of retired staff. Some of the retired staff has also come forward to handle
training assignments. The following figure shows the importance of HR in each
strategy adopted by banks in the matter of staff deployment:

Performance Appraisal:

A related issue is the performance appraisal system that currently focused more on
promotions & not on linking performance to deployment of specialization.
Performance appraisal is also more on traits than on any qualitative or quantitative
appraisal of work. In the absence of clearly defined individual & organizational
goals the appraisal has become a routine. Participants indicated the need for a
change & more business oriented appraisal & felt that appraisal systems such as
360 Degree appraisals will be useful in future. The overwhelming feeling is that
PA system should change & react to new needs.

1. RECRUITMENT IN BANKS

Evidently the banks are waking up to many new issues. One such issue is the
changing recruitment market. What according to the HR executives attracted
candidates to the banks?

What attracts candidates to your banks?

Sr. No. Particulars

1. Work & Life Balance
2. Career Growth Opportunities
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3. Banks Track Record

4. Compensation Being Better Than Market
5. Good Company Values
6. Challenging Work Environment
7. Positive Corporate Reputation
8. Others
The personnels felt that the recruitment policies, in future, will be woven around
the above aspects (Table). It is an indication of changing times that the list includes
items such as performance linked incentives, fast track promotion, foreign posting
education, choice of departments, sabbatical & stock option. If turnover is high &
recruitment poses challenges on account of high salary & work life balance
expectations the HR function needs to adopt many different methods to
educate/train the staff.

Employee Development Techniques

It was earlier seen that the major task before the HRD is to instill new skills with
the staff. In this connection it can be pointed out that all the banks own a large
training network. They also have access to other training establishments &
seminars. Banks also send employees to B schools for short duration courses &
MDPs. The major emphasis of banks is to use their training systems &
establishments to the fullest extent. Banks were also keen on encouraging their
staff to take up new courses & correspondence courses. The schemes of
reimbursements of expenses were rather liberal.

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As staff turnover & new positions are filled, knowledge management becomes
important. The rules, procedures & customers, data that have been gathered need
to be made available to the new staff such that continuity & service excellence is
maintained. There is a need to curtail expenses in reinventing wheels. The HR
executives felt that the HR department can also function as knowledge
management centre. Banks have already begun knowledge management efforts.

2. SOURCES OF RECRUITMENT

The various sources of recruitment may be broadly classified into two categories,
i.e., internal & external sources. Some organizations draw their human resources
internally, i.e., from within the organization while others draw externally, i.e., from
outside the organization.

PROMOTION CONSULTANTS
IN EX
TRANSFER ADVERTISEMENTS
T TE
Sources of
RETIREMENT E Managerial R INSTITUTES
R Recruitme N
RECALLS RECOMMENDATIO
N nt AL N
A
INTERNAL ADS DEPUTATION
L

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CONCLUSION
The banking sector has grown from a few institutions primarily involved in deposit
acceptance and trade finance into a complex multi player where large number of
commercial banks, 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.

Thus, event 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. The range may require
reasonably educated security guards on the one end and a highly educated and
trained professional as head of corporate finance at the other.

HRM is of great importance in banks. The training and development of employees

is very much important. Recruitment and selection must also be done very
efficiently. The major challenge for this industry is, “attracting the right talent and
retaining them.”

To conclude the growth of banking sector in the future depends upon appropriate
HRM policies which will assist the employees in achieving their personal goals
and in turn will enhance the individual’s contribution to the organization.
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Objectives of the employees should be met if employees are to be maintained,

retained and motivated.

ACKNOWLEGEMENT

I sincerely thank the University for introducing a degree course in B. Com for
Banking & Insurance. This has given us an opportunity to gain knowledge on the
insights of the Banking & Insurance industry. A special thanks to our esteemed
coordinator Prof. A.R.Suri for guiding and motivating me during this project. I
would also like to thank the librarian of Jai Hind College who helped me in finding
out various books on the topics.

This project was highly educational and a great learning experience.

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BIBLIOGRAPHY

➢ BOOKS
Human Resource Management and Industrial Relations – P. Subba Rao
Human Resource Management – K. Ashwathapa
Human Resource Management – P. V. Rao
The future of Human Resource Management - K. Ashwathapa
Human Resource and Personnel Management – William Wrether

➢ WEBSITES
www.hrmguide.net
www.humancapitalonline.com
www.google.com
www.hrmtoday.com
www.wikipedia.com

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