CHAPTER 1

INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT

Introduction to Human Resource Management :

Organizations are made up of people and function through people. Material resources such
as money and materials are utilized through people for different purposes. People constitute
the most significant resource of an organization. Human resource is most active, productive
and sensitive. Employees have capacity to think and act or react accordingly. This source
needs delicate handling so that it will be useful for the progress and prosperity of an
organization.
In the present world, all organizational resources (human and material) are important for
achieving organizational objectives. Naturally, their effective utilization is necessary. Here,
organizations give special attention to human resources which includes manpower working at
different levels in the organization. The employees need to be efficient, highly trained and
professional co-operative and loyal to the organization. They are expected to make positive
contribution in achieving organizational objectives. Such useful labour force will not
developed automatically but needs to be nurtured through special efforts in the form of
training, career development, cordial industrial relations, participative management and so
on.
Human Resource Management (HRM) is concerned with the manpower employed in an
organization. It is that part of management which is concerned with people at work and their
relationships within the organization. HRM is one important branch of management as it
touches all other aspects of business management. HRM is concerned with human resource
planning, recruitment and selection of manpower, training and development of manpower,
compensation payment to manpower and so on. In this introductory chapter, we propose to
discuss the nature and scope of human resource management.

MEANING OF HRM CONCEPT OF HRM I WHAT IS HRM?

Personnel refer to the employees working in an organization at different levels. Personnel

management (also called HRM) is that aspect of total business management which deals with
human relationships within an organization. Personnel represent human resources which is
different from material resources. It is rightly said that organizations are not mere bricks,
mortar, machineries or inventories. They are people. It is the people who staff and manage
organizations. Human resources are the people and their characteristics at work. They are
human factors in business.
Human resource is the most productive and most versatile. In addition, the manpower in an
organization needs human treatment. Employees have a capacity to feel, think and even to
react. Management has to deal with the employees in a careful and tactful manner. Material
resources such as land, machines, raw materials, equipment, etc. are easy to manage. This is
because they have no capacity to feel or think or react. This is not the case with human
resource i.e. manpower. For example, you may use a bad word for a machine or you may put
your leg. on the machine but you must not abuse a worker or put your leg on his head. This
is because he has a capacity to feel, think and even react quickly in the same manner or even
in a more challenging manner.
In production activity, men and machines are important. However, man behind the machine
is more important as he is a human being. Man and machine are not on par and must not be
treated in the same manner. This is because of all the resources manpower is the only
resource which does not depreciate, with the passage of time.

According to Peter F. Drucker , "the prosperity, if not the survival of any business depends on
the performance of its managers of tomorrow. The material resources alone will not help the
organization to achieve its objectives. For this, effective coordination and utilization of
material and human resources are required. This suggests the importance of human resources.
Human resources of an organization function at top management, middle management,
supervisory management and at operative management levels. Human resources are most
vital assets of an organization. They can be used as a means for developing competitive
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advantages. In addition, manpower /people in the organization act as Source of creativity.

They can produce unlimited ideas which can be used for the progress of the prosperity of an
organization. This suggests the significance of human resources which need effective
utilization through careful management.
The human resource is very important and useful in every organization. It should be nurtured
and used for the benefit of the organization. This is a challenging job before personnel
manager / management. The organization can make rapid progress only when the employees
are efficient, satisfied and co-operative. On the other hand, the organization will have to face
various problems and difficulties, if the employees are not co-operative but hostile. This
indicates that human resource is most strategic and critical determinant of growth of a
business unit. Every organization needs loyal, efficient and satisfied labor force. For this,
adequate attention should be given to HRM.
HRM is a management function that helps managers to recruit, select, train and develop
employees for an organization. It is concerned with the people's dimension in organizations.

DEFINITIONS OF HUMAN RESOURCE MANAGEMENT:

According to Scott and others, "Human resource management is that branch of management
which is responsible on a staff basis for concentrating on those aspects of relationship of
management to employees and employees to employees and with the development of the
individual and the group. The objective is to attain maximum individual development,
desirable working relationship between employers and employees and employers and
employees, and effective moulding of human resources as contrasted with physical resources
",
According to National Institute of Personnel Management of India, "Human resource
management is part of management concerned with people at work and with their
relationships within the organization. It seeks to bring together men and women who make
up an enterprise, enabling each to make his own best contribution to its success both as an
individual and as a member of a working group ".

Edwin Flippo defines HRM as Planning, organizing, directing, controlling of procurement, development, compensation,
integration, maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.

FEATURES OF HRM:

1. Managing people: HRM relates to managing people at work. It covers all levels of
personnels and their needs, expectations and so on. In this sense, it is a comprehensive
function and is basically concerned with managing people at work. HRM has universal
existence and application as it is applicable to business and other organizations government, educational, social, and religious and so on.

2. People-oriented process: HRM is concerned with employees, both as individuals

as well as a group. The aim of HRM is to get better results through their involvement,
motivation and co-operation. It is a people-oriented process of bringing people and
organizations together so that the goals of each are met properly. Acquisition,
development, motivation and maintenance of manpower /human resources are four
basic functions in the HRM process.

3. Develops employees' potentialities: HRM is concerned with helping the

employees to learn and develop their potentialities to the highest level for their benefits
as well as for the benefits of their organization. It is manpower / employees
development oriented subject.

4. Integral part of organizations: HRM is an integral part of all organizations. It is

concerned with recruitment, selection and development of manpower available.

5. Continuous activity: HRM is a continuous activity in an organization as personnel

problems continue to exist as long as employees are working in an organization. They
need constant attention as they may disturb normal working of an organization, if
neglected.
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6. Securing employee co-operation: HRM aims at securing willing co-operation of

employees for achieving organizational objectives. This is natural as industrial and
other activities can be conducted only with the support of human resources. HRM aims
at developing and maintaining team spirit at the organizational level. Such team spirit
brings success to the organization.

7. Future-oriented: HRM is concerned with helping an organization to achieve its

objectives in the future by providing competent and motivated employees. It makes an
attempt to integrate individual objectives of employees with the organizational
objectives. HRM provides long term benefits to individuals. (Employees), organizations
and the society at large.

8. Challenging function/activity: HRM is a challenging function/ activity as it deals

with the people/employees who are always unpredictable. Employees have emotions
and sentiments and cannot be treated like machines. It is necessary to handle them and
activities related to them tactfully.

SCOPE/FUNCTIONS OF HRM:

1. Human resources planning:

Human resource planning or HRP refers to a process by which the company to identify the
number of jobs vacant, whether the company has excess staff or shortage of staff and to deal
with this excess or shortage.

2. Job analysis design:

Another important area of HRM is job analysis. Job analysis gives a detailed explanation
about each and every job in the company. Based on this job analysis the company prepares
advertisements.

3. Recruitment and selection:

Based on information collected from job analysis the company prepares advertisements and
publishes them in the news papers. This is recruitment. A number of applications are received
after the advertisement is published, interviews are conducted and the right employee is
selected thus recruitment and selection are yet another important area of HRM.

4. Orientation and induction:

Once the employees have been selected an induction or orientation program is conducted.
This is another important area of HRM. The employees are informed about the background
of the company, explain about the organizational culture and values and work ethics and
introduce to the other employees.

5. Training and development:

Every employee goes under training program which helps him to put up a better performance
on the job. Training program is also conducted for existing staff that have a lot of experience.
This is called refresher training. Training and development is one area where the company
spends a huge amount.

6. Performance appraisal:
Once the employee has put in around 1 year of service, performance appraisal is conducted
that is the HR department checks the performance of the employee. Based on these appraisal
future promotions, incentives, increments in salary are decided.

7. Compensation planning and remuneration:

There are various rules regarding compensation and other benefits. It is the job of the HR
department to look into remuneration and compensation planning.

8. Motivation, welfare, health and safety:

Motivation becomes important to sustain the number of employees in the company. It is the
job of the HR department to look into the different methods of motivation. Apart from this
certain health and safety regulations have to be followed for the benefits of the employees.
This is also handled by the HR department.

9. Industrial relations:
Another important area of HRM is maintaining co-ordinal relations with the union members.
This will help the organization to prevent strikes lockouts and ensure smooth working in the
company.

10. Procurement of manpower (Human- Resource Acquisition):

Procurement means acquiring the manpower required by an organisation from time-to-time.
For this manpower planning is necessary. In fact, manpower planning is one major function
of HR management. Such procurement will be from the employment market. The basic
principle in procurement for the right job". The procurement function includes manpower
planning and forecasting, recruitment, selection, appointment, placement and induction of
employees so as to have a team. Of efficient and capable employees for the benefits of the
organisation. Even promotions and transfers_ are covered by this broad personnel funding.-
at present, scientific methods are used for recruitment! Selection of capable manpower for
the Benefit of the organisation.

11. Development of manpower: Development of manpower (human

resource development) means planning and execution of the training programmes for
all categories of employees in order to develop new skills and qualities required for working
at the higher level. Manpower development is possible through training and career
development programmes and not simply by offering attractive wages to workers. Such
manpower development (possible through' systematic training programmes) is required for
meeting the growing and changing needs of manpower along with the expansion and
diversification of business activities. Executive development programmes are introduced for
the benefit of higher level managers. Promotions and transfers are possible when manpower
development programmes are introduced regularly. Similarly, future manpower requirement
will be met internally through HRD programmes.
This suggests the importance/significance of human resource development. It aims at
educating and training employees for the improvement of overall performance of an
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organisation. HRD programmes are for education, training and development of existing
manpower in an organisation. This is for facing new problems and I2hallenges likely to
develop in the near future.

12. Performance management and compensation payment to manpower

employed:
Performance management involves performance planning, performance appraisal and
performance counselling used for various purposes. One more function of personnel
management is to pay compensation (in monetary form) to employees for the services
rendered. For this, a fair system of remuneration payment (wages and salaries' needs to be
introduced. Remuneration to employees should be attractive so that the labour force will be
satisfied and disputes, etc. will be minimized. Fair wage payment acts as a motivating factor
in compensation management

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CHAPTER 2
HR PRACTICES OF ICICI BANK

12

ABOUT THE COMPANY

ICICI Bank is an Indian multinational banking and financial services company headquartered
in Mumbai, Maharashtra, India. As of 2014, it is the second largest bank in India in terms of
assets and market capitalization. It offers a wide range of banking products and financial
services for corporate and retail customers through a variety of delivery channels and
specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture
capital and asset management. The Bank has a network of 4,050 branches and
12,919 ATMs in India, and has a presence in 17 countries including India.[11]
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab
National Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom and
Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Dubai
International Finance Centre and China; and representative offices in United Arab Emirates,
South Africa, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also
established branches in Belgium and Germany.

13

RECRUITMENT PRACTICES OF ICICI BANK

RECRUITMENT & SELECTION PROCESS OF ICICI BANK LTD:ICICI Bank is an Indian multinational banking and financial services company headquartered
in Vadodara (Gujarat) India, incorporated in August 1994, with a turnover of Rs. 700 Crores
in 2015.

1. Recruitment Process:A vacancy presents an opportunity to consider restructuring, or to reassess the

requirements of the job. This assessment is valid whether it is to fill an existing job or a
new one.
Ask questions such as

Why has the function changed?

Why have work patterns, new technology or new products altered the job?

Why are there any changes anticipated which will require different, more flexible skills
from the jobholder?
Answers to these questions should help to clarify the actual requirements of the job and
how it fits into the rest of the organization or department. Exit interviews, or consultation
with the current job-holder and colleagues may well produce good ideas about useful
changes.

14

Recruitment begins by specifying the human resource recruitment, initiating activities and
action to identify the possible sources form where they can be met communicating the
information about the jobs, terms and conditions and prospects they offer, and enthuse the
people who meet the recruitment to respond to the invitation by applying for jobs. Thereafter
the selection process begins. The process is as follows:
I.

Decide on how many people you really need : If everything is being done to
improve performance and still there is a gap between what the current performance is
and the goals set, then the best way is to recruit more people.

II.

Analyzing the job: Analyzing the job is the process of assembling and studying
information relating to all aspects of a particular post. Analysis is done to find
possible details about

Purpose: Identify the aims and objectives of job and what the employee is
expected to achieve within department and company.

Position: The job title, its position in the hierarchy and for whom it is
responsible ought to be recorded. A sample organization chart may be useful for
this purpose.

Main Duties: A list of key tasks may be written out; standards that need to be
reached and maintained must also be maintained. Methods of recording, assessing
and recording the key tasks must be determined.

The work Environment: Study the physical and social environment in which
the work is out because the work environment influences the quantity and quality
of work.

15

Drafting a job description:

III.

After job analysis is done, job description is made. Job description describes the job. The
job description decides upon the exact knowledge, skill and experience needed to do the
job. Job description must be drafted around these heading:
Job title
Responsible to Responsible for
Purpose of job
Duties Responsibility
Signature and date

IV.

Evaluation future needs:

For Evaluation future needs manpower is drafting. A manpower plan evolves studying the
make-up of present work force, assessing forthcoming changes and calculating future
workforce, which is required. Manpower planning helps in devising long-term
recruitment plans.

16

Finding sources of recruitment:

The human resource requirement of ICICI can be met from internal or external source:-

17

Internal Recruitment:
These refer to persons already employed in the organization. Promoting persons from
lower levels may fill up vacancies at higher levels. Shortage of manpower in one branch
factory may be met by transferring surplus staff from another branch factory. Promotion
means shifting of an employee to higher post caring greater salary, status and
responsibility.
On the other hand transfer refer to the shifting an employee with salary, status and
responsibility. Some time ex-employee of the organization may be re-employed.

External Recruitment:
It refers to recruitment of employees from outside the organization. External sources
provide wide choice of the required number of the employees having the desired
qualification. It also provides the people with new ideas and specialized skills required to
cope with new challenge and to ensure growth of the organization.

18

Apart from these ICICI prudential also pull out candidates from various sources like Media
& COMMUNICATION, advertisements etc.

1. Campus Recruitment 28%

2. Online Applicants 26%
3. Recruiter 17%
4. Employee Referral 13%
5. Others 8%
6. In-Person 1%

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METHODS OF RECRUITMENT:
All methods of recruitment can be put into three categories:
a. Direct method
b. Indirect method
c. Third-party method

Direct Method:
These include the campus interview and keeping a live register of job seekers.
Usually under this method, information about jobs and profile of persons available for
jobs is exchanged and preliminary screening is done. The short listed candidates are
then subjected to the remainder of the selection process. Some organization maintains
live registers or record of applicants and refers to them as and when the need arises.

Indirect Method:
They cover advertising in newspapers, on the radio, in Trade and professional
journals, technical journals and brochures. When qualified and experienced persons
are not available through other sources, advertising in newspapers and professional
and technical journals in made. Whereas all types of advertisements can be made in
newspapers and magazines, only particular types of posts should be advertised in the
professional and technical journals. A well thought-out and planned advertisement for
appointments reduces the possibility of unqualified people applying. If the
advertisement is clear and to the point, candidates can assess their abilities and
suitability for the position and only those who possess the requisite qualifications will
apply.

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 Third Party Method:

Various agencies are used for recruitment under these methods. These include
commercial and private employment agencies, state agencies, and placements offices
of schools, colleges and professional associations, recruiting firms, management
consulting firms, indoctrination seminars for college professors, friends and relatives.

SELECTION PROCEDURE OF ICICI

21

The selection procedure is concerned with securing relevant information about an applicant.
This information is secured in a number of steps and stages. The objective of selection
process is to determine whether an applicant needs the qualification for a specific job and to
choose the applicant who is most likely to perform in that job. The hiring procedures not a
single acts but it is essentially a series of methods or steps or stages by which additional
information is secured about the applicant. At each stage, facts may come to light, which lead
to the rejection of the applicant. A procedure may be considered to a series of successive
hurdles or barriers, which an applicant must cross. These are indented as screens and they are
designed to eliminate an unqualified applicant at any point in this process. That technique is
known as the successive hurdle technique. Not all selection process includes all these
hurdles. The complexity of process usually increases with the level and responsibility of the
position to be fulfilled. A well-organized selection procedure should be designed to select
sustainable candidates for various jobs. Each step in the selection process should help in
getting more and more information about the candidate. There is no idle selection procedure
appropriate for all cases.

Steps in the selection process:

Preliminary Screening
Application Blank
Employment Tests
Selection Interview
Medical or Physical Examination
Checking Reference
Final Approval

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Preliminary Screening:
This is essentially to check whether the candidate fulfills the minimum qualification. The
preliminary interview is generally quite brief. Its aim is to eliminate the unsuitable candidate.
The job seekers are received at the reception counter of the company. The receptionists or
other official interviews the candidates to determine whether he is worthwhile or the
candidate to fill up the application blank. Candidates processing the minimum qualification
and having some chances of being selected are given the prescribed application form known
as application blank.

Application Blank:
The candidates are required to give full information about their age, qualification, experience,
family background, aptitude and interests act in the application blank. The application blank
provides a written record about the candidate. The application form should be designed to
obtain all relevant information about the candidates. All applications received from the
candidates are carefully scrutinized. After the scrutiny more suitable candidates among the
applicants are short-listed for written test sand others are rejected.

Employment Tests:
Candidates are asked to appear for written or other tests. Tests have become popular
screening devices. These tests are based on the assumption that human traits and work
behaviors can be predicted by sampling, however tests are not fully reliable and they also
involve time and Money. Test is more useful in identifying and eliminating unsuitable
candidates therefore should be used only as supplements rather than an independent
technique of selection. The main types of tests are:
Intelligence tests
Aptitude Test

Interest test
Personality Test

23

Selection Interview:
It involves a face-to-face conversation between the employer and the candidate; the selector
asks a job related and general questions. The way in which a candidate responds to the
question is evaluated. The objectives of the interview are as following:
To find out the candidates overall suitability for the job.
To cross-check the information obtained through application blank and tests
To give an accurate picture of the job and the company.

Medical or Physical Examination:

Candidates who are found suitable after interview are called for physical examination. A
Panel of doctors to insure that they are healthy and physically fit for the job does a medical
check-up of such candidates. A proper medical examination will also ensure that the
candidates selected do not suffer from any serious desirous which may create problems in
future.

Checking Reference:
Generally, every candidate if required to state in the application form, the name and address
of at least two responsible persons who know him. The reference may not give their Frank
opinion unless promises made that in all information will be kept strictly confidential.
Moreover the information given by them may be biased in the form of candidate.

Final Approval:
The candidates who are found suitable after the medical check-up and background
investigation are formally appointed by issuing appointment letter to them. They are asked to
join duty by the specified date. No selection procedure is foolproof and the best way judge a
person is by observing him working on the job. Candidate who gives satisfactory during the
probationary period are made permanent.

24

TRAINING PROGRAMMES OF ICICI.

INTRODUCTION:-

Training is an important and a very moral part of ICICI. Training is given to all the cadre of
employees. Irrespective of their status and designation. Outbound training is provided by the
bank when there is a need.

ACTIVITIES UNDERTAKEN:-

Needs Analysis
Here they assess the trainee's real needs in preparatory meetings, level testing for language
courses, trainee interviews, or written questionnaires.

Setting Targets
Here they use the best methods available to establish where improvement is most needed.
This stage results in the setting of Course Objectives and the Course Program, which is
agreed upon.

Course Design
The best trainer/s is now selected to handle the running of the project. The Course Program is
now designed to meet the objectives and needs and the COURSE STARTS.....

25

Training Reports
Trainers fill out weekly or monthly reports for each project, which are reviewed by First
Class' management. The company looks for content, time management and skill
development.

Project Evaluation
The Program Coordinators are frequently in touch with the trainee to ask for their comments.
Feedback exercises are carried out twice on our longer courses.

End of Course Feedback

They are very interested in the opinion of both client management and the course
participants. This covers all aspects of the course, including
Organization, methodology, trainer suitability and whether course objectives have been met.

26

The employees are trained through 2 ways i.e. the bank provide training
programmes to employees in 2 methods,

E - Learning programme:The employees are provided with the E Learning programme where the matter of learning is
present on the computer. Here all the Functional- aspects are covered. The employee just has
to open that site of E - Learning and team the topics by reading it out as they are designed as
per the learning convenience of the employees.
The topics covered under this programme are:1. The Regulatory Environment of Banking
2. General Banking Operations
3. Retail Deposits Programs
4. Corporate Products Program
5. Law in Everyday Banking
6. Treasury Products Program
7. Retail Assets Products Program
8. Basis of Life Insurance
9. Audit and Compliance
10. Quality and Six Sigma for Beginners
11. Retail Internet Banking
12. Performance Feedback
13. Retail Demat Program
14. Banker's Selling Skill Program

27

 C-Learning programme :
The employees are provided with the C - Learning programme which is conducted in the
class room. C - learning means Class room where all the behavioural aspects are covered
which requires the attention of the trainer and this training program is impossible to learn of
its own by the employee various skills are stressed in this learning program which the
employee needs in every stage of Functional aspects.
The topics covered under this programme are:1. Presentation & Communication Skills
2. Models for Management
3. Managing for Performance
4. Team Effectiveness
5. Negotiation Skills
6. Train the Trainer
7. Managerial Effectiveness
8. Personal Effectiveness
9. Interpersonal Effectiveness & Influencing Skills
10. Professional Communication Skills
11. On Becoming a Manage

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 TRAINING TO EMPLOYEES:-

Training is provided to all the cadre of employees as per their needs of the job.

1.

A or 1st 'class employees -- MD, CGM's, GM's, -AGM's, etc.

2.

B or 2nd class employees - Managers

3.

C or 3rd class employees - Officers

employed

& Clerks. Peons, cleaning boys etc. are

on contract basis and therefore no training is provided to them.

METHODS OF TRAINING PROVIDED:The training provided to all cadres of employees is depending upon their needs and
importance of various tasks and jobs required to them. The leaders of each group or section
or department find out the need for training to a particular employee discussing HR head. The
functional & Behavioural training is provided to all the employees.

TRANING PROGRAMMES CONDUCTED IN A YEAR:Normally there are 60 training programs of Behavioural skills are conducted and 20 - 30
skills are conducted. i.e. 720 Behavioural skill program & 300 Functional skill ms are
provided annually.

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 WHO GIVES TRAINING?

Training is given by different persons to different levels of employees.

Upper class --- These employees are generally given training by the internal trainers as
company does not rely on the outsider trainers for top level employees.

Middle class --- They are usually trained by outside and inside trainers, they are also given
training through top level managers.

Lower class --- This category consists of clerks. These employees are given training through
the supervisors and heads of the departments.

WHERE THE TRAINING PROGRAMS ARE CONDUCTED?

The ICICI has special training rooms for conducting training sessions at the training office of
ICICI. It has also a special training centres constructed at Khandala in Maharashtra, Delhi,
and Bangalore and at Chennai for all official and managerial level training.

30

 WHO ASSES TRAINING NEED AND VENUE?

The training need is assessed by the collective discussion between the team or p head and the
HR manager. The venue is decided by the HR department. Generally employees who are
under training are sent to Khandala so that they can concentrate on E- Training activity only.

DURATION OF TRAINING PROGRAM CONDUCTED:-

The duration/period of training programme differs as per the different class

Upper class

--- the duration of training is of 1 week

Middle class --- the duration of training is 4 to 5 days

Lower class --- the duration of training is 1 to 3 days

CHANGING OF TRAINING PLANS:-

The training plans are changed annually. There is flexibility in changing training plans but
they are changed on annual basis.

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 EMPLOYEES SUGGESTIONS FOR DESIGNING THE TRAINING

PLANS:-

The employees' suggestions are considered while designing the training plans suggestions are
welcomed 4 days before the training program starts. The Employees can give suggestions
about changing the training program timing, extra topics added stress to be given on
particular topic etc.

PREPARING TRAINING LETTER & SCHEDULE:-

The employees are informed about the training program through e-mail. The es, timings,
venue, and topics of training are displayed on the intranet. The groups are also informed
about the training through their heads.

EVALUATION F TRAINING PROGRAMME:-

The employees are evaluated through the observation way. The employees are given
feedback forms during and after the train

32

PERFORMANCE APPRAISAL.

MEANING
A Performance appraisal (PA), also referred to as a performance review, performance
evaluation, (career) development discussion, or employee appraisal is a method by which
the job performance of an employee is documented and evaluated. Performance appraisals
are a part of career development and consist of regular reviews of employee performance
within organizations.

33

PERFORMANCE APPRAISAL IN ICICI BANK

The bank is using the Management by Objectives (MBO) method. In this method the
subordinate in consultation with the supervisor chalks out short term objectives followed by
specific actions that he has to carry out. The goals are finally set and are action oriented. The
goals set are specific, measurable, achievable, review able and time bound and most
importantly they use to be aligned with the goal of the organization. At the end of a specified
time period, the activities are jointly reviewed by both the subordinate and his supervisor.
Depending on the performance of the subordinate, the goals are modified or redesigned for
the next period of time. The MBO is thus a performance oriented system.
A well thought out MBO system provides multiple benefits. It establishes a link between the
performance of the individual and the bank .It is easy to implement because those who carry
out the plan also participates in setting it up. Each employee becomes aware of the task he
has to perform in the bank. This leads to better utilization of capacity and talent. It promotes
better COMMUNICATION and information sharing. It provides guidelines for selfevaluation as well as evaluation by the superior against set tasks and goals. It facilitates
guidance and counseling.

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EFFECTIVE COMPONENTS OF ICICI PERFORMANCE APPRAISAL

SYSTEM:-

Performance Planning (includes employee goal setting / objective setting)

On-going Performance Communication
Data Gathering, Observation and Documentation
Performance Appraisal Meetings
Performance Diagnosis and Coaching
Performance Appraisal system in ICICI bank emphasizes individual objectives, Bank
objectives and also mutual objectives. From the viewpoint of individual objective the
Performance Appraisal talks about
a) What task the individual is expected to do?
b) How well the individual has done the task?
c) How can his performance be further improved?
d) His reward for doing well.
From the bank view point a Performance Appraisal should generate manpower information,
improve efficiency and effectiveness serve as a mechanism of control and provide a rational
compensation structure. In short the appraisal system establishes and upholds the principle of
accountability in the absence of which bank failure is the only possible outcome. Finally,
talking about mutual goals, the emphasis is on growth and development, harmony,
effectiveness and profitability of the bank.
ICICI has adopted a "Performance Appraisal" model in which best-to-worst ranking methods
are used to identify poor performers. The identified poor performers are then given a time
period during which they have to show an improvement in their performance. In cases where
the employee fails to improve his performance he is asked to leave the organization
gracefully and a severance package is offered to him. If the employee refuses to leave then
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his service is terminated and no compensation is offered. This system is called "rank and
yank strategy". Advocates of this system feel that it continually motivates employees to better
their performance since nobody would like to be included in the poor performance band. But
the flip side of this strategy is that employees become too competitive and team spirit is not
nurtured.
Effective banks are not build merely on INVESTMENT and returns but more on the quality
of the workforce, its commitment to the organizational goals and investments made to attract
train and retain superior human capital. An integrated Performance Management system is
essential to get the best out of its people. Employee performance is linked to the bank's
performance. This helps in achieving the organizational goal and creates a performance
culture in the bank. Invention, creativity, diversity of perspectives is fostered. Employees act
as one bank one brand.

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APPROACHES AND TECHNIQUES IN "PERFORMANCE

APPRAISAL" USED BY ICICI BANK

"Performance Appraisal" is a multistage process involving several activities, which can be

administered using a variety of approaches. Some of these approaches are being used by the
banks for "Performance Appraisal"
Intuitive Approach: In this approach, a supervisor or manager judges the employee based on
their perception of the employee's behavior.
1. Self-Appraisal Approach: Employees evaluate their own performance using a
common format.

2. Group Approach: The employee is evaluated by a group of persons.

3. Trait Approach: This is the conventional approach. The manager or supervisor

evaluates the employee on the basis of observable dimensions of personality, such as
integrity, honesty, dependability, punctuality, etc.

4. Appraisal Based: On Achieved Results: In this type of approach, appraisal is based

on concrete, measurable, work achievements judged against fixed targets or goals set
mutually by the subject and the assessor.

5. Behavioral Method: This method focuses on observed behavior and observable

critical incidents
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CHAPTER -5
CONCLUSION

After studying about HRM in detail, it can be seen that there are many challenges in HRM which
have to be faced, but there are many ways to overcome these challenges. While studying about
Training and Development, the researcher came across many training methods. In ICICI banks they
follow many types of training methods for their employees. The researcher observed that all these
training methods were very beneficial for the employees as the ICICI bank management make use of
the latest technology, so that the employees find these training programs easy and interesting. Some
of the methods are a little complicated, but due to the proper ways of training and teaching, it
becomes an easy and simple process

Recommendations for ICICI: Simplify its recruitment and selection process.

Reduce salaries of employee and increase the incentives and benefits
part in their compensation.

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BIBLIOGRAPHY

Human Resource Management L.M.Prasad

Human Resource Management in Banking and Insurance Vinay.V.Prabhu and Bharat. M.
Pithodia

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WEBLIOPGRAPHY

www.hrguide.com
www.hrnext.com
www.indiatimes.com

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