[Link] Titles Page no.

1 Abstract 3

2 Introduction 4

a) What is Bank ? 4-5

b) HRM Background & Practices 5

c) Vision & Mission 45

3 Research Methodology 46
&
Data Collection

4 Literature Review 50

5 Data Analysis & Interpretation 53

6 Conclusion 65

7 Bibiliography 66

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 Project Report On

Human Resource Management in Banking Sector

―STATE BANK OF INDIA‖

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 ABSTRACT

The Indian banking system consists of public sector banks, private sector banks, for-
eignowned banks, regional rural banks and cooperative banks. The performance of any
industry is dependent largely on the efficiency of its employees and Indian banking indus-
try is no exception. Contemporary organizations are competing for a larger market pie by
employing various strategies and human resources are being considered as a strategic part-
ner with far – reaching transformational roles and responsibilities. Therefore the focus has
shifted towards enhancing the capacities and capabilities of the human resources through
different methods, and one being training and development. In this context, an attempt is
made in this research paper to review the existing literature on the HRM practices of vari-
ous Indian banks. Earlier research studies at the national level and various state-level re-
search studies have been examined to understand the HRM practices of the Indian banking
industry. It was found that the HRM practices in the Indian banking industry have evolved
over a period of time and the HRM practices of Indian private sector banks are marginally
better than the Indian public sector banks

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 INTRODUCTION

Human Resource Management or Personnel management is the activity of managing

personnel,usually [Link] any organization, managing personnel is the process of
making sure the employees (not the customers) are as productive as they can be. This can
include hiring, firing, or transferring people to/from jobs they can do most
[Link] subject is a major at many universities, or a minor in the business school.
It is also known as personnel administration, which is functionally an equivalent term.

What is a Bank?

The word bank is derived from the Italian banca, which is derived from German language
and means bench. The terms bankrupt and "broke" are similarly derived from banca rotta,
which refers to an out of business bank, having its bench physically broken. Money lenders
in Northern Italy originally did business in open areas, or big open rooms, with each lender
working from his own bench or [Link] essential function of a bank is to provide services
related to the storing of deposits and the extending of credit. The evolution of banking dates
back to the earliest writing, and continues in the present where a bank is a financial
institution that provides banking and other financial services. Currently the term bank is
generally understood as an institution that holds a banking license. Banking licenses are
granted by financial supervision authorities and provide rights to conduct the most
fundamental banking services such as accepting deposits and making loans. There are also
financial institutions that provide certain banking services without meeting the legal
definition of a bank, a so called non-bank. Banks are a subset of the financial services
industry. Human resource management (HRM) has long been overlooked in the corporate
sector in the country where a small section, comprising mostly the multi-national
companies was practising 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

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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.

HRM Background and Practices

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. Corporate goals are translated into viable realities
and profits only with human element that play their due role in achieving the desired results.

Thus even the high automation would require proper man behind the machine to make
things happen. This idea has been realized by top management 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. 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

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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.

By no means, their brains can be controlled to think beyond the current situation of
employment. Managing this educated, skillful and trustworthy work force is not an easy
job. A few of the current challenges faced by the banking industry in terms of human
resource management may be the following:

To make the Indian Banking System stronger, efficient and low-cost, the creation of
fundamentals must include in the bank‘s operations, strategies and processes:
strengthening the prudential norms and market discipline; adoption of international
benchmarks; management of organizational change and consolidation within the financial
system; upgrading the technological infrastructure of the financial system; and human
resource development as the catalyst of the transformation (2002).

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The Human Resource field in the Banking Industry is considered as one of the process of
discovery and transformation. The field of Human Resource can be described as emergent
and dynamic within the cultural business aspect in a Banking Industry. The success of
today‘s banking business will sparsely depends on the human resources of the organization,
in which plays a crucial role in providing the services needed.

The evolution of banking system in India affected the human resource practices,
recruitment and selection practices, and training system. It is very important that the details
of human resource are discussed along with the employees, to build their own career
planning, perceptions and development.

The primary strength of the industry is the human resource that is why the efforts to develop
the skills and management are the main subject placed before the human resource. A major
challenge for many banks will be to develop the special competencies and skills for credit
appraisal and risk management. Putting the information technology is a key contributed in
human resource development. Therefore, the HR model of the future will require
professionals to be both driving and anticipating change, understanding the complexities
of the new business environment and forces shaping it.

The History of Human Resource Management

The history of Human Resource Management (HRM) begins around the end of the 19th
century, when welfare officers (sometimes called ‘welfare secretaries’) came into being.
They were women and involved with the protection of women and girls. Their creation
was a reaction to the:

 Harshness of industrial conditions

 Pressures arising from the extension of the franchise

 Influence of trade unions and the labour movement

 Campaigning of enlightened employers, often Quakers, for what was called

‘industrial betterment’

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As the role grew there was some tension between the aim of moral protection of women
and children and the need for higher output.

20th century developments

The First World War accelerated change in the development of personnel management.
Women were recruited in large numbers to fill the gaps left by men going to fight. This
meant reaching agreement with trade unions (often after bitter disputes) about ‘dilution’–
accepting unskilled women into craftsmen’s jobs and changing manning levels.

During the 1920s, jobs with the titles of ‘Labour Manager’ or ‘Employment Manager’
were introduced to the engineering industry and other industries where there were large
factories. The role involved handling absence, recruitment, dismissal and queries over
bonuses. Employers’ federations, particularly in engineering and shipbuilding, negotiated
national pay rates with the unions, but there were local and district variations and there
was plenty of scope for disputes.

During the 1930s, the economy was beginning to pick up. Big corporations in these
newer sectors saw value in improving employee benefits as a way of recruiting, retaining
and motivating employees. But older industries such as textiles, mining and shipbuilding
were hit by the worldwide recession. These sectors did not adopt new techniques, seeing
no need to do so because they had no difficulty in recruiting labour.

The Second World War brought about welfare and personnel work on a full-time basis at
all establishments producing war materials. The Ministry of Labour and National Service
insisted on it, just as the Government had insisted on welfare workers in munitions
factories in the previous conflict. The Government saw specialist personnel management
as part of the drive for greater efficiency. As a result, the number of people in the
personnel function grew substantially; there were around 5,300 in 1943.

Reaping the rewards of HR

By 1945, employment management and welfare work had become integrated under the
broad term ‘personnel management’. Experience of the war had shown that output and
productivity could be influenced by employment policies. The role of the personnel
function in wartime had been largely that of implementing the rules demanded by large-

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scale, state-governed production. As a result, the image of an emerging profession was very
much a bureaucratic one.

Following the development of poor industrial relations during the 1960s, a Royal
Commission under Lord Donovan was set up. Reporting in 1968, it was critical of both
employers and unions; personnel managers were criticised for lacking negotiation skills
and failing to plan industrial relations strategies. At least in part, Donovan suggested, these
deficiencies were a consequence of management’s failure to give personnel management
sufficiently high priority.

In the 1960s and 1970s employment started to develop significantly. At the same time
personnel techniques developed using theories from the social sciences about motivation
and organisational behaviour. Selection testing became more widely used and management
training expanded. During the 1970s, specialisms started to develop with reward and
resourcing, for example, being addressed as separate issues.

Around the mid-80s, the term ‘Human Resource Management’ arrived from the USA. The
term ‘Human Resources’ is an interesting one; it seemed to suggest that employees were
an asset or resource-like machines, but at the same time HR also appeared to emphasise
employee commitment and motivation. At Consensus HR, we always emphasise to clients
the importance of making the most of one of your most important business assets and
resources: your people.

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Today’s HR activities

In today’s HR world we ensure that we cover a number of specialist disciplines,

including:

 Diversity (plus other aspects of employment law)

 Reward (including compensation, benefits, pensions)

 Resourcing (such as recruitment, disciplinary and redundancy processes)

 Employee relations (including performance and absence management)

 Organisation development and design

 Learning and development

 Correcting systems, policies & procedures

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These disciplines ensure that your business is working to best practice, within the law and
making maximum use of its team. This offers financial and operational benefits to the
business and team.

HRM ISSUES AND CHALLENGES FOR BANKING SECTOR

HRM is an essential source for growth oriented and dynamic organizations, which

want to succeed in a fast changing competitive environment. The fundamental principle

of HRM is to treat people as a valuable asset rather than a liability and a mere factor of

production. Although Information Technology is taken to a large extent as a substitute for

human resources but it should be taken only an aid to human efforts and not as a

substitute. The present position of HRM in banks demands, appropriate human resource

strategies, policies and practices to achieve organizational goals. Thus, it is pertinent to

place the right person on the right job and at the right time also and then evaluate his/her

performance against the predetermined goals of the organization. The present situation

demands that the men employed in the banking organizations, work with full

commitment, devotion and discipline. It is very significant for human resource

professionals to understand various changes taking place in the organization and adapts

human resource activities accordingly.

While making human resource strategies, the following broader issues should be
considered:

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• Optimizing staff level and skills

• Building the right skills and work culture

• Managing individual performance to achieve the goals ofthe bank

These issues are of paramount importance. In the post-reforms period,

implementation of VRS made the banks globally competitive by introducing latest

technology. Due to this scheme, less skilled employees are retrenched with liberal

schemes. This surplus labor with inappropriate skills negatively affects the performance

of bank and hence, reduces profitability resulting in poor reputation of the banks in the

market. The reduction in the number of employees due to the VRS was known as

downsizing of employees. This was due to transformation, which resulted in the use of

more and more technology and hence retrench the extra i.e. disguised labour, which

otherwise contributed to increase in the labor cost. No doubt, due to VRS, fear of job

insecurity has increased and motivation level among the employees has decreased, but it can be
made different by making proper strategies to introduce VRS in a friendly manner.

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From what has been stated above, the following major issues arise, which need to be answered.

• Is managing transformation in banks through HRM a challenge, an opportunity or both ?

• How is HRM is helpful to manage recent transformation in banks?

• To what extent has technology resulted in downsizing of the number of employees ?

• To what extent and in which direction is downsizing is affecting the labor efficiency and
operational efficiency ?

• How is the labor cost related to downsizing ofemployees and to what extent is downsizing
affecting the labor cost?

• How can HRM be effective in the present era of global competition ?

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Meaning of Human Resource Management:

A business unit needs employees to look after different activities. This is called manpower
or

human resource. Such human resource needs to be developed fully so that it will make
positive

contribution for the progress and prosperity of a business unit. For this systematic
development

and management of human resources is necessary. Human Resource Management (HRM)

deals with:

(a) Training

(b) Self-development

(c) Promotions

(d) Performance appraisal of manpower recruited in an organization

HRM is an organized learning experience aimed at matching the organizational need for
career growth and development. It is a process involving series of learning activities
designed to acquire desired level of competence among employees. HRM is a continuous
process and it needs money. Such investment creates a team of efficient, skilled and trained
manpower which brings success and stability to a business unit. HRM programmes offer
long term benefits to an organization.

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Characteristics of Human Resource Management:

(1). Upgrading Manpower:

HRM is basically concerned with the upgrading of manpower working in an organization.

This leads to improvement in the individual performance of an employee and also
corresponding improvement in the organizational performance.

(2). Stress on Training:

HRM includes various schemes arranged for providing education, guidance, training and
opportunities to learn and develop employees of all categories and working in different
departments. There is an integrated use of sub-systems (training, career developments,
organizational development) in the HRM programme.

(3). Attention to learning and career development:

Learning, self-development, career developments are possible through HRM programmes.

These are the core areas of HRM. Career development is possible through joining training
courses, reading books and periodicals. Learning and career development raise the capacity
of employees to work at highest levels. They are given higher positions with monetary
benefits.

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(4). Organizational Development:

HRM includes organizational development, which includes effective communication

within the organization, coordination of different activities elimination of conflicts of
different types and creation of orderly atmosphere in the whole organization.

(5). Team Spirit:

HRM is basically for developing team spirit in the whole organization. For this,
departments and levels of management are properly integrated. Team spirit facilitates
orderly growth of the organization in the right direction.

(6). Huge spending by Management:

All companies invest huge money on HRM activities but such expenditure is absolutely
essential for survival in the present competitive business world. HRM programmes create
matured, skilled and efficient manpower, which is a valuable asset of a business unit.

(7). Termination of Employment:

Termination is an unpleasant part of any manager‘s job. Employees occasionally must be

terminated for breaking rules of failing to perform adequately.

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(8). Continuous Activity:

HRM is rightly treated as a continuous activity due to new developments taking place
regularly in the business world. For this, on the job and off the job training programmes
are introduced from time-to-time.

(9). Wide Scope:

The scope of HRM programmes is very vast. It is multi-disciplinary in character. Training

and guidance are given on different aspects of business management to enable managers
to deal with complex managerial problems and challenges.

Need and Importance of Human Resource Management:

(1). To create stable labor force:

HRM programmes are needed in order to create stable, efficient, skilled and matured
manpower required by an enterprise for the present and future period.

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(2). To update the quality of manpower:

HRM activities are needed for updating the quality of manpower as per the growing and
changing needs of an enterprise. This avoids managerial obsolescence. Even the vacancies
at higher levels can be filled in internally due to HRM programmes as they provide training
and opportunities of self-development to employees working at lower levels.

(3). To develop strength for survival:

HRM programmes are necessary for survival in the present competitive marketing
environment. An enterprise can face market competition only by improving quality,
reducing costs and avoiding wastages. All this is possible through HRM.

(4). To face challenges of technological changes:

Technological changes are taking place rapidly in every area of business. HRM
programmes are needed in order to absorb technological changes taking place with speed.
In fact, introduction of new technology, computers, automation, etc. will not be possible
unless training is provided to the manpower.

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(5). To satisfy the demand of self-development of employees:

HRM is needed to meet the needs of employees in regard to self-development and career
development aspirations. Employees demand, training facilities, refresher courses,
promotions and transfers, career guidance, etc. for their self-development. HRM
programmes are needed to fulfill self-development and career development of employees.

(6). To meet future manpower needs:

HRM is needed to meet the future manpower needs of the organization. Executives,
managers, supervisors leave the job or retire due to age factor. Competent juniors must take
their positions. HRM is needed in order to keep ready a team of competent managers as a
second line of defence.

(7). To facilitate expansion and diversification:

HRM activities are needed to meet the manpower requirements resulting from expansion
and diversification programmes undertaken at the enterprise level. Attention should be
given to HRM much before the introduction of expansion programme.

(8). To utilize production capacity fully:

HRM is needed in order to use the available production capacity to the optimum level. It
provides skilled manpower for this purpose.

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Benefits of HRM

Improve employee turnover

High employee turnover hurts a company’s bottom line. It cost twice as much as a current
employee’s salary to find and train a new recruit. As an human resource professional, you’ll
know how to hire the right people for the company from the start. Interview candidates
carefully, not just to ensure they have the right skills but also to check that they fit the
company’s culture. It’s important that you outline the right compensation and benefits too.
Human resource professionals also need to pay attention to employee’s personal needs.
You’ll need to discuss clear career paths too as employees would like to know how they
can grow within the company. Human resource professionals usually only see employees
when there are problems but to reduce employee turnover they will regularly visit staff
members and enquire if they are okay and happy.

Conflict resolutions

Workplace conflict is somewhat inevitable as employees have different personalities, life-

styles and work ethic. While doing the human resource management course, you’ll be
taught how to handle conflict in the workplace and how to resolve it. You’ll also be taught
how to handle the situation as professionally as possible. It doesn’t matter whether the
conflict arises between employees or an employee and someone in management, you
should be able to assist both parties equally and not choose sides.

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Employee satisfaction

Human resource specialists are usually charged with the responsibility of determining em-
ployee satisfaction. As a human resource management student, you’ll learn how to set up
surveys, focus groups and interview strategies to help you determine whether employees
are content or not. Human resource professionals determine what the underlying causes are
for employee dissatisfaction and they address those issues and motivate staff members with
creative solutions. They try to find out what exactly these problems are that employees are
facing and look for ways to assist them where needed.

Improve employee performance

Human resources teams develop performance management systems. If a company doesn’t

have an human resource professional, candidates can easily get a job without having the
necessary skills and expertise for the position. And for this reason, human resources is
needed in every workplace. With the line-manager, you’ll have to give employee perfor-
mance reviews on an annual basis. Be open about their accomplishments and things you
think they could have done better.

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Training and development

Human resource departments conduct needs assessments for employees to determine the
type of skills training and employee development programmes that are required for im-
provement and additional qualifications. Every startup or company in a growth phase can
benefit from identifying training needs for its staff. It’s less expensive to hire additional
staff or more qualified candidates. This can also reduce your company’s employees turno-
ver and improve employee retention.

Helps with budget control

It’s critical for human resources to define as many processes as specific projects, be it the
360-feedback review, the annual pay review or the development of a new program. As an
human resource professional, it’s important and helpful to understand the broad budget of
a project. Human resources curb excessive spending through developing methods for trim-
ming workforce management costs. Human resource professionals also ensure competitive
and realistic wage setting based on studying the labour market, employment trends and
salary analysis based on job functions.

You’ll learn to develop a strategic approach to training, recruiting and developing the com-
pany’s most important asset: its people. As businesses expand, these professionals are
needed to keep everything together. At the end of your Human Resource management
training course, you’ll be prepared to handle difficult staff members and design pay struc-
tures as well as analyse the influence of unions and government on the labour force.

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Job analysis, Job design and Job evolution

A job is defined as a collection of duties and responsibilities which are given together to
an individual employee. Job analysis is the process of studying and collecting information
relating to operations and responsibilities of a specific job. It can be explained with the
help of the following diagram

• Job analysis

Job description Job specification

Job title/ name of the job Qualification

Working hours Qualities

Duties and responsibilities Experience

Working conditions Family background Salary and incentives

Training Machines to be handled on the job Interpersonal skills

As mentioned in the above table job analysis is divided into 2 parts

a) Job description

Where the details regarding the job are given.

b) Job specification

Where we explain the qualities required by people applying for the job.

Need/importance/purpose/benefits of job analysis

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Def.: - A job is defined as a collection of duties and responsibilities which are given
together to an individual employee. Job analysis is the process of studying and collecting
information relating to operations and responsibilities of a specific job

The following are the benefits of job analysis.

1. Organizational structure and design:-

Job analysis helps the organization to make suitable changes in the organizational
structure, so that it matches the needs and requirements of the organization. Duties are
either added or deleted from the job.

2. Recruitment and selection:-

Job analysis helps to plan for the future human resource. It helps to recruit and select the
right kind of people. It provides information necessary to select the right person.

3. Performance appraisal and training/development:-

Based on the job requirements identified in the job analysis, the company decides a training
program. Training is given in those areas which will help to improve the performance on
the job. Similarly when appraisal is conducted we check whether the employee is able to
work in a manner in which we require him to do the job.

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4. Job evaluation:-

Job evaluation refers to studying in detail the job performance by all individual. The
difficulty levels, skills required and on that basis the salary is fixed. Information regarding
qualities required, skilled levels, difficulty levels is obtained from job analysis.

5. Promotions and transfer:-

When we give a promotion to an employee we need to promote him on the basis of the
skill and talent required for the future job. Similarly when we transfer an employee to
another branch the job must be very similar to what he has done before. To take these
decisions we collect information from job analysis.

6. Career path planning:-

Many companies have not taken up career planning for their employees. This is done to
prevent the employee from leaving the company. When we plan the future career of the
employee, information will be collected from job analysis. Hence job analysis becomes
important or advantageous

25
7. Labour relations:-

When companies plan to add extra duties or delete certain duties from a job, they require
the help of job analysis, when this activity is systematically done using job analysis the
number of problems with union members reduce and labour relations improve.

8. Health and safety:-

Most companies prepare their own health and safety, plans and programs based on job
analysis. From the job Analysis Company identifies the risk factor on the job and based on
the risk factor safety equipment‘s are provided.

9. Acceptance of job offer:-

When a person is given an offer/appointment letter the duties to be performed by him are
clearly mentioned in It, This Information Is Collected From Job Analysis, Which Is Why
Job Analysis Becomes Important.

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Methods of job analysis

A job is defined as a collection of duties and responsibilities which are given together to
an individual employee. Job analysis is the process of studying and collecting information
relating to operations and responsibilities of a specific job. There are different methods
used by organization to collect information and conduct the job analysis. These methods
are

1. Personal observation:-

In this method the observer actually observes the concerned worker. He makes a list of all
the duties performed by the worker and the qualities required to perform those duties based
on the information collected, job analysis is prepared.

2. Actual performance of the job:-

In this method the observer who is in charge of preparing the job analysis actually does
the work himself. This gives him an idea of the skill required, the difficulty level of the
job, the efforts required etc.

3. Interview method:-

In this method an interview of the employee is conducted. A group of experts conduct the
interview. They ask questions about the job, skilled levels, and difficulty levels. They
question and cross question and collect information and based on this information job
analysis is prepared.

27
 4. Critical incident method:-

In this method the employee is asked to write one or more critical incident that has taken
place on the job. The incident will give an idea about the problem, how it was handled,
qualities required and difficulty levels etc. critical incident method gives an idea about the
job and its importance. (A critical means important and incident means anything which
takes place in the job)

5. Questioner method:-

In this method a questioner is provided to the employee and they are asked to
answer the questions in it. The questions may be multiple choice questions or open
ended questions. The questions decide how exactly the job analysis will be done.
The method is effective because people would think twice before putting anything
in writing.

6. Log records:-

Companies can ask employees to maintain log records and job analysis can be done on the
basis of information collected from the log record. A log record is a book in which
employee‘s record /writes all the activities performed by them on the job. The records are
extensive as well as exhausted in nature and provide a fair idea about the duties and
responsibilities in any job

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 7. HRD records:-

Records of every employee are maintained by HR department. The record contain details
about educational qualification, name of the job, number of years of experience, duties
handled, any mistakes committed in the past and actions taken, number of promotions
received, area of work, core competency area, etc. based on these records job analysis can
be done..

• Job design

Definitions: -

Job design is the process of

a) Deciding the contents of the job.

b) Deciding methods to carry out the job.

c) Deciding the relationship which exists in the organization.

Job analysis helps to develop job design and job design matches the requirements of the
job with the human qualities required to do the job.

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Factors affecting job design: -

There are various factors which affect job design in the company.

Factors affecting job design

1. Organizational factors

2. Environmental factors

3. Behavioral factors

I] Organizational factors:-

Organizational factors to refer to factors inside the organization which affect job design
they are

a) Task characteristics:-

Task characteristics refer to features of the job that is depending on the type of job and the
duties involved in it the organization will decide, how the job design must be done. In case
the company is not in a position to appoint many people; a single job may have many duties
and vice versa.

b) The process or flow of work in the organization:-

There is a certain order in which jobs are performed in the company. In case the company
wishes it could combine similar job and give it to one person this can be done if all the jobs
come one after the other in a sequence.

30
c) Ergonomics:-

Ergonomics refers to matching the job with physical ability and characteristics of the
individual and in providing an office environment which will help the person to complete
the jobs faster and in a comfortable manner.

d) Work practices:-

Every organization has different work practices. Although the job may be the same the
method of doing the job differs from company to company. This is called work practice
and it affects job design

. II] Environmental factors:-

Environmental factors which affect job design are as follows

a) Employee availability and ability:-

Certain countries face the problem of lack of skilled labour. They are not able to get
employees with specific education levels for jobs and have to depend on other countries
due to this job design gets affected.

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 b) Social and cultural expectations :-

The social and cultural conditions of every country is different so when an MNC appoints
an Indian it has to take into account like festivals, auspicious time, inauspicious time, etc.
to suit the Indian conditions. This applies to every country and therefore job design will
change accordingly.

III] Behavioral factors:-

Job design is affected by behavioral factors also. These factors are a) Feedback: - Job
design is normally prepared on the basis of job analysis and job analysis requires
employee feedback based on this employee feedback all other activities take place. Many
employees are however not interested in providing a true feedback because of fear and
insecurity. This in turn affects job deign.

c) Autonomy:-

Every worker desires a certain level of freedom to his job effectively. This is called
autonomy. Thus when we prepare a job design we must see to it that certain amount of
autonomy is provided to the worker so that he carries his job effectively.

d) Variety:-

When the same job is repeated again and again it leads to burden and monotony. This leads
to lack of interest and carelessness on the job. Therefore, while preparing job design certain
amount of variety must be provided to keep the person interested in the job

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Methods of job design

There are various methods in which job design can be carried out. These methods help to
analysis the job, to design the contents of the and to decide how the job must be carried
out .these methods are as follows: -

I. Job rotation

II. Job enlargement

III. Job enrichment

I. Job Rotation: -

Job rotation involves shifting a person from one job to another, so that he is able to
understand and learn what each job involves. The company tracks his performance on
every job and decides whether he can perform the job in an ideal manner. Based on this he
is finally given a particular posting.

Job rotation is done to decide the final posting for the employee e.g. Mr. A is assigned to
the marketing department whole he learns all the jobs to be performed for marketing at his
level in the organization .after this he is shifted to the sales department and to the finance
department and so on. He is finally placed in the department in which he shows the best
performance Job rotation gives an idea about the jobs to be performed at every level. Once
a person is able to understand this he is in a better understanding of the working of
organization

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Advantages of job rotation

i. Avoids monopoly:- Job rotation helps to avoid monopoly of job and enable the
employee to learn new things and therefore enjoy his job

ii. Provides an opportunity to broaden one’s knowledge :-Due to job rotation

the person is able to learn different job in the organization this broadens his
knowledge

iii. Avoiding fraudulent practice:-In an organization like bank jobs rotation is

undertaken to prevent employees from doing any kind of fraud i.e. if a person
is handling a particular job for a very long time he will be able to find loopholes
in the system and use them for his benefit and indulge (participate) in fraudulent
practices job rotation avoids this.

Disadvantages of Job Rotation

i. Frequent interruption:-

Job rotation result in frequent interruption of work .A person who is doing a particular job
and gets it comfortable suddenly finds himself shifted to another job or department .this
interrupts the work in both the departments

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 ii. Reduces uniformity in quality :-

Quality of work done by a trained worker is different from that of a new worker .when a
new worker I shifted or rotated in the department, he takes time to learn the new job, makes
mistakes in the process and affects the quality of the job.

iii. Misunderstanding with the union member:-

Sometimes job rotation may lead to misunderstanding with members of the union. The
union might think that employees are being harassed and more work is being taken from
them. In reality this is not the case.

II. Job enlargement: -

Job enlargement is another method of job design when any organization wishes to adopt
proper job design it can opt for job enlargement. Job enlargement involves combining
various activities at the same level in the organization and adding them to the existing job.
It increases the scope of the job.

It is also called the horizontal expansion of job activities.

Jon enlargement can be explained with the help of the following example - If Mr. A is
working as an executive with a company and is currently performing 3 activities on his job
after job enlargement or through job enlargement we add 4 more activities to the existing
job so now Mr. A performs 7 activities on the job.

It must be noted that the new activities which have been added should belong to the same
hierarchy level in the organization. By job enlargement we provide a greater variety of
activities to the individual so that we are in a position to increase the interest of the job and

35
make maximum use of employee‘s skill. Job enlargement is also essential when policies
like VRS are implemented in the company

Advantages of job enlargement

1. Variety of skills:-

Job enlargement helps the organization to improve and increase the skills of the employee
due to organization as well as the individual benefit.

2. Improves earning capacity:-

Due to job enlargement the person learns many new activities. When such people apply
for jobs to other companies they can bargain for more salary.

3. Wide range of activities:-

Job enlargement provides wide range of activities for employees. Since a single employee
handles multiple activities the company can try and reduce the number of employee‘s. This
reduces the salary bill for the company.

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Disadvantages of job enlargement

1. Increases work burden:-

Job enlargement increases the work of the employee and not every company provides
incentives and extra salary for extra work. Therefore the efforts of the individual may
remain unrecognized.

2. Increasing frustration of the employee:-

In many cases employees end up being frustrated because increased activities do not result
in increased salaries.

3. Problem with union members:-

Many union members may misunderstand job enlargement as exploitation of worker and
may take objection to it.

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 II. Job enrichment: -

Job enrichment is a term given by Fedric Herzberg. According to him a few motivators
are added to a job to make it more rewarding, challenging and interesting. According to
Hertzberg the motivating factors enrich the job and improve performance.

In other words we can say that job enrichment is a method of adding some motivating
factors to an existing job to make it more interesting.

The motivating factors can be

a. Giving more freedom

b. Encouraging participation.

c. Giving employees the freedom to select the method of working.

d. Allowing employees to select the place at which they would like to work.

e. Allowing workers to select the tools that they require on the job.

f. Allowing workers to decide the layout of plant or office.

38
Job enrichment gives lot of freedom to the employee but at the same time increases the
responsibility. Some workers are power and responsibility hungry. Job enrichment
satisfies the needs of the employees.

Advantages of job enrichment

1. Interesting and challenging job:-

When a certain amount of power is given to employees it makes the job more challenging
for them, we can say that job enrichment is a method of employee empowerment.

2. Improves decision making:

Through job enrichment we can improve the decision making ability of the employee by
asking him to decide on factory layout, method and style of working.

3. Identifies future managerial caliber: -

When we provide decision making opportunities to employees, we can identify which

employee is better that other in decision making and mark employees for future promotion.

39
 4. Identifies higher order needs of employees:-

This method identifies higher order needs of the employee. Abraham Maslow‘s theory of
motivation speaks of these higher order needs e.g. ego and esteemed needs, self-
actualization etc. These needs can be achieved through job enrichment.

5. Reduces work load of superiors:-

Job enrichment reduces the work load of senior staff. When decisions are taken by juniors
the seniors work load is reduced.

Disadvantages of job enrichment

1. Job enrichment is based on the assumptions that workers have complete

knowledge to take decisions and they have the right attitude. In reality this might
not be the case due to which there can be problems in working.

2. Job enrichment has negative implications i.e. Along with usual work decision
making work is also given to the employees and not many may be comfortable
with this

3. Superiors may feel that power is being taken away from them and given to the
junior‘s. This might lead to ego problems.

4. This method will only work in certain situations. Some jobs already give a lot of
freedom and responsibility; this method will not work for such jobs.

40
5. Some people are internally dissatisfied with the organization. For such people no
amount of job enrichment can solve the problem

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

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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.

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.

42
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) Counseling 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.

43
4. 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.

44
 VISION & MISSION

Vision
To become a world-class leader in Human Resource Management through:

 Our commitment to reach excellence in providing reliable Human Resource services of

consistent high quality to our employees.

 Our passion towards learning and continuous improvement.

 Our focus towards adopting global Human Resource best practices and technologies

Mission

 Inspire excellence through effective Human Resource practices

 Develop a professional environment founded on the principles of fairness, equity and mutual
respect

 Use technology to have superior and efficient information management and service delivery

45
 RESEARCH METHODOLOGY

&

DATA COLLECTION

Research Methodology

The Banking sector is the key factor of Indian economy. This sector provides credit and money at
the same time it is also responsible for implementation of monetary policy of RBI. Therefore, the
study of human resource practices in banking sector is very important for the smooth functioning
of this sector. So we can say that private banks in Rajasthan region will have been taken as universe
of the study

Data Collection

The proposed study would be based on both the types of data primary as well as secondary. The
data would be collected in the following manner:

46
Collection of Primary Data

The primary data would be collected through a questionnaire administered on employees of Private
banks working in Jhunjhunu Region. Some structured personal interviews will be conducted with
HR managers

Collection of Secondary Data

The secondary data would be mainly collected though the memorandum, articles, brochures, annual
reports and extracts from the books and website of the banks selected for the study. The books,
hand books monthly journals, barouches and other material published would be very helpful.

Limitations of Human Resource Management

1. Recent Origin:

HRM is of recent origin .So it lacks universally approved academic base. Different people
try to define the term differently. Some thinkers consider it as a new name to personnel
management. Some enterprises have named their traditional personnel management de-
partment as human resource management department.
Such superficial actions may not bear much fruit. What is actually required is a fundamen-
tal change in attitudes, approaches and the very management philosophy. Without such a
change, particularly at the top management level, renaming of personnel department or
redisgnating the personnel officer may not serve the purpose. With the passage of time an
acceptable approach will be developed.

47
2. Lack of Support of Top Management:

HRM should have the support of top level management. The change in attitude at the top
can bring good results while implementing HRM. Owing to passive attitude at the top, this
work is handled by personnel management people. Unless there is a change in approach
and attitude of top management nothing remarkable will happen.

3. Improper Actualisation:

HRM should be implemented by assessing the training and development requirements of

employees. The aspirations and needs of people should be taken into account while making
human resource policies. HRM is actuated half-heartedly. The organising of some training
programmes is considered as the implementation of HRM. With this, management’s
productivity and profitability approach remains undisturbed in many organisations.

4. Inadequate Development Programmes:

HRM needs implementation of programmes such as career planning, on the job training,
development programmes, MBO, counselling etc. There is a need to create an atmosphere
of learning in the organisation. In reality HRM programmes are confined to class room
lectures and expected results are not coming out of this approach.

5. Inadequate Information:

Some enterprises do not have requisite information about their employees. In the absence
of adequate information and data base, this system cannot be properly implemented. So

48
there is a need to collect, store and retrieval of information before implementing human
resource management.

In many organisations, even the professionals misunderstand HRM as synonymous with

HRD. Some class room training programmes are generally arranged, which are called HRD
programmes. These programmes are understood as human resources management. Such
casual class room programmes are not the actual HRM programmes.
Even a well planned and executed HRD programme is not HRM. HRD is only a part of
HRM which is an integrated approach to management. Undoubtedly, human resource man-
agement suffers from such limitations. But the impact it has made on the managerial effec-
tiveness has been spectacular wherever it was introduced. Actually speaking a real need
exists in every Indian organisation for an HRM approach.

49
 LITREATURE REVIEW

1. Amba-Rao (1994) investigated the human resource management (HRM) prac-

tices in Indian industries using an exploratory study of 10 firms based in Hydera-
bad, India. The specific HRM functions considered were - staffing, performance
appraisal, compensation, training, motivation and employee relations. Three out
of the sample firms were from the service industry (banking and road transport)
while the remaining seven were from manufacturing sector. Five of the sample
firms were public sector units (PSUs) while the remaining five belonged to the
private sector. The study concluded that HRM objectives and HRM systems of
the sample firms were purposively organized for the various HRM functions con-
sidered in the study.

2. Ahmad (2012) studied the association between employee relations and employee
unionisation in Indian banking industry. The study included banks from both the
public and private sectors. The sample included 318 employees from unionized
banks and 123 employees from nonunionised banks. Data was collected using a
structured questionnaire with 52 elements on employee relations. Data was ana-
lysed using statistical tests like mean, standard deviation, chisquare test, t-test and
z-test on various dimensions. The analysis indicated that non-unionised bank em-
ployees experienced higher satisfaction on all the elements except unionism and
job security. The results concluded that non-unionised employees perceived better
employee relations in comparison to unionized employees.

50
3. Anuradha&Prasanth (2016) examined the employee perceptions of HRM prac-
tices among public sector banks in Puducherry region in India. Data was collected
through a structured questionnaire from 328 employees belonging to 22 different
public sector banks using a multi-stage sampling procedure. Statistical tools like t-
test, ANOVA, co-efficient of variation and multiple regression analysis were used
for data analysis. The results of the study concluded that various HRD practices
have a significant impact on organizational performance of public sector banks.

4. Budhwar and Boyne (2004) highlighted the results from an empirical compari-
son of HRM practices in Indian public and private sector firms. The study in-
cluded responses from a questionnaire survey of 137 large Indian manufacturing
firms (81 public sector firms & 56 private sector firms). The results of the study
conclude that there exist a large number of similarities and differences in the
HRM practices among Indian public and private sector firms. Interestingly, the
results reveal that the gap between the HRM practices of public and private sector
firms is not very significant. Nevertheless, it was concluded that in a few HRM
practices like compensation and training & development, Indian private sector
firms were found to have adopted a more rational approach in comparison to their
public-sector counterparts.

5. Khan and Parveen (2014) presented a comparative analysis of job satisfaction

levels of employees in public and private sectors banks in India with reference to
Uttar Pradesh. The researchers have chosen respondents from one public sector
bank (Canara Bank) and one private sector bank (ICICI Bank). Respondents from
25 branches of Canara Bank and 10 branches of ICICI Bank were included in the re-
search. A final sample of 425 respondents participated in the research (225 respondents

51
from Canara Bank and 200 employees from ICICI Bank). Salary levels, promotion poli-
cies and training opportunities were considered as the factors that have an influence on
employee job satisfaction levels. The research concluded that job satisfaction of employ-
ees was significantly dependent upon the salary levels, promotion policies and training
facilities. Overall, job satisfaction of the public sector employees was significantly higher
than the private bank employees in Uttar Pradesh.

52
 DATA ANALYSIS & INTERPRETATION

Interpretation: 38.1% of the respondent from the age group of 25-35 years,14.3% of the
respondent are from the age group of 35-45 years,28.6 of the respondent are from the
respondent are from the age group of 45-55 years, 19% of the respondent are from the age
group of age group of Above 55 & years

53
Interpretation: 47.6% of the respondent are from the female category and 52.4% of the
respondent are from the male category

54
Interpretation:-

81% of employee know or have HRM department in the branch level

55
Interpretation:-

The data show that there is good I.e 28.6% of good connectivity 28%% of great
connectivity and 14% of poor and ok connectivity

56
Interpretation

71% support that the HRM poilcy of SBI bank is adequate enoug to adress the problem of
employee rest 28.6% are not in the favour of SBI HRM policy

57
Interpretation:-

Out of 100% of survey data 71.4% of employee feel that their current role in banking
sector gives them a job enrichment

58
Interpretation :-

52.4% of employee had been transfer one time and 9.5% of employee had been transfer
more than 2 time

59
Interpretation :-

37.5% response says that the transfer was due to bank policy and other branch was
inqadeuate of staff and 25 response are personal reason

60
Interpretation :-

66.7% accept and agree that HR department plays significant role in your promotion rest
33.3 response to no and disagree

61
What initiative your HR department take to keep branch atmosphere healthy ? 5
responses

 Celebrations of Birthday of employee.

 Healthy coffee sessions with trainee.
 Good Atmosphere to work & bank provides excellent opportunity to employees
 Incentives to employee
 By maintaining good employee relationships

Interpretation:-

5 people response their personal experience with the HR department

62
Interpretation:-

28.6% responses to one to one communication 19% responses to telephonic

conversation and 52.4% response to readdress to branch manager

63
Interpretation:-

38.1% responses that there are satisfied with their salary the rest 61.9% response to no
which refer that there are not satisfied with the salary

64
 CONCLUSION

The review of earlier works of various researchers and scholars have not only enriched
knowledge but also helped the researcher to fit the objectives of the present study. It was
found that Public and private sector banks differ with respect to their background and work
culture. It has been observed that the work culture of public sector banks was based on the
concept of socioeconomic responsibility, in which profitability is secondary. On the other
hand, private sector banks work towards profitability.

Because these differences between the sectors hold an important factor in shaping the work
culture of an organization, it needs to be explored how they would likely influence by their
HRM Practices. For the success and sustained growth of Indian banks, it is imperative to
create a pool of committed employees by determining whether they are job satisfied. Their
satisfaction would affect their performance and commitment, which would eventually in-
fluence the banks’ growth and profitability.

And even the study of various qualitative works highlighted the absences of a systematic
approach for human resource management in the private banking industry in India. The
studies have identified that different private bank managements are applying different HR
strategies to improve the productivity of the banks. Job security, employees’ development,
compensation structure, work environment etc. are the major barriers for Indian private
banking industry.

It is observed that human resource management needs to be fully embedded in the policy
and strategy of the banking organizations if they are going to be effective and competitive.

65
 BIBILIOGRAPHY

Ahmad, J. (2012). Dynamics of employment relations & employee unionization in banking indus-
try. Indian Journal of Industrial Relations,

Amba-rao, S. C. (1994). Human resource management practices in India: An exploratory study.

Indian Journal of Industrial Relations,

Anuradha, S., &Prasanth, M. S. (2016). Employees’ perception towards HRD practices among se-
lect public sector banks in Puducherry. Indian Journal of Applied Research,

Budhwar, P. S., & Boyne, G. (2004). Human resource management in the Indian public and private
sectors: an empirical comparison. Int. J. of Human Resource Management,

Khan, N. A., &Parveen, S. (2014). A comparative study of job satisfaction of employees in public
and privat sector banks in India with reference U.P. [Link]. Imt,

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