Introduction

Human resource management (HRM or simply HR) is the

management of human resources. It is a function in organizations designed to
maximize employee performance in service of an employer's strategic
objectives.HR primarily concerned with the management of people within
organizations designed to maximize employee performance in service of an
employer's strategic objectives.

HR is primarily concerned with the management of people

within organizations, focusing on policies and on systems. HR departments and
units in organizations typically undertake a number of activities, including
employee benefits design, employee recruitment, "training and development",
performance appraisal, and rewarding (e.g., managing pay and benefit systems).

HR also concerns itself with organizational change and

industrial relations, that is, the balancing of organizational practices with
requirements arising from collective bargaining and from governmental laws. HR
is a product of the human relations movement of the early 20th century, when
researchers began documenting ways of creating business value through the
strategic management of the workforce.

The function was initially dominated by transactional work,

such as payroll and benefits administration, but due to globalization, company
consolidation, technological advances, and further research, HR as of 2015
focuses on strategic initiatives like mergers and acquisitions, talent management,
succession planning, industrial and labour relations, and diversity and inclusion.
Recruiting specialists are in charge of finding and hiring top talent.

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 Human Resources is a business field focused on maximizing
employee productivity. Human Resources professionals manage the human
capital of an organization and focus on implementing policies and processes.
They can be specialists focusing in on recruiting, training, employee relations or
benefits. Training and development professionals ensure that employees are
trained and have continuous development.

This is done through training programs, performance evaluations

and reward programs. Employee relations deals with concerns of employees when
policies are broken, such as harassment or discrimination Someone in benefits
develops compensation structures, family leave programs, discounts and other
benefits that employees can get.

On the other side of the field are Human Resources Generalists

or Business Partners These human resources professionals could work in all areas
or be labour relations representatives working with unionized employees. An
entire functional group is typically dedicated to the discipline, with staff
specializing in various HR tasks and functional leadership engaging in strategic
decision-making across the business.

Fast global & technological developments have made todays

business environment highly uncertain & even chaotic. Organizations are seeking
newer ways to promote their adaptability to the complexities of the changed
scenario so as to survive & prosper. Globally organizations are striving to realize
competitive success through strategic management of human resources. Thus,
people management has never been more important than it is today.

Therefore, new themes have emerged in the process, replacing

some of the old ones. The new thinking in this regard is referred to as Human
Resource Management (HRM), which carries a more proactive & strategic
connotation.

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 Human resources take active role in the modern economic
scenario of any country. The abundant physical resources alone cannot benefit the
growth of the country without human resource component, which transforms
physical resources into productive resources. In fact, the differences in the level of
economic development of the countries are largely a reflection of the differences
in quality of their human resources.

The key element in this proposition is that the values,

attitudes, general orientation and quality of people of a country that determines its
economic development.

People are our most valuable asset is a clich which is no

member of any management team would disagree with. The concept of HRM
assumes immense importance as HRM plays vital role in meeting the challenging
requirements of highly skilled & component human resources due to
globalization.

HR also concerns itself with organizational change and

industrial relations, that is, the balancing of organizational practices with
requirements arising from collective bargaining and from governmental laws. HR
is a product of the human relations movement of the early 20th century, when
researchers began documenting ways of creating business value through the
strategic management of the workforce

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MEANING

Human resources management involves all management

decisions & practices that directly affect or influence people or human resources,
who work for the organization. In recent years, increased attention has been
devoted to how organizations manage human resources.

This increased attention comes from the realization that an

organizations employees enable an organization to achieve its goals, & the
management of these human resources is critical to the success of the
organization.

HRM is management function that helps managers to

recruit, select, train & develop members for an organization. Obviously HRM is
concerned with the peoples dimensions in organizations. HRM refers to set of
programs, functions & activities designed & carried out.

Human resource management means employing people,

developing their resources, utilizing, maintaining & compensating their services
in consonance with the job & organizational requirements .Human Resources is a
business field focused on maximizing employee productivity Training and
development professionals ensure that employees are trained and have continuous
development. Human Resources professionals manage the human capital of an
organization and focus on implementing policies and processes. They can be
specialists focusing in on recruiting, training, employee relations or benefit

Management

Management is concerned with the human beings whose

behaviour is highly unpredictable. Ever since people began forming groups

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to achieve as individuals. Managing has been essential to provide the coordination
of individuals efforts. Management does not perform specific jobs. It motivates
other people to perform specific jobs. It indicates a total process of executive
control in business.

It implies undertaking of responsibility for effective

planning, policy making, fixation of targets and operative functions of providing
men, money and materials to run day-to-day administration. It is the process of
designing & conducting appropriate executive development programmes so as to
develop the managerial & human relations skills of the employees.

A manager to get the best of his people, must undertake the

basic responsibility of selecting people who will work under him and to help
develop, motivate and guide them. However, he can take the help of the
specialised services of the personnel department in discharging this responsibility.

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Definitions

Scott, Clothier and Spiegel have defined: -

Human Resource Management as that branch of management which is

responsible on a staff basis for concentrating on those aspects of operations which
are primarily concerned with the relationship of management to employees and
employees to employees and with the development of the individual and the
group

French Wendell, defines: -

Human resource management as the recruitment, selection,

development, utilisation, compensation and motivation of human resources by the
organisation .

According to Edwin B. Filippo: -

Human resource management is the planning, organising,

directing and controlling of the procurement, development, resources to the end
that individual and societal objectives are accomplished.

Human resource management is planning, organizing, directing &

controlling of the procurement, development, compensation, integration,
maintenance & separation of human resources to the end that individual,
organizational and social objectives are accomplished.

This definition reveals that human resource (HR) management

is that aspect of management, which deals with the planning, organising, directing
and controlling the personnel functions of the enterprise.

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NATURE OF HUMAN RESOURCE MANAGEMENT

The emergence of human resource management can be

attributed to the writings of the human relationists who attached great significance
to the human factor.

Lawrence Appley remarked, - Management is personnel

administration. This view is partially true as management is concerned with the
efficient and effective use of both human as well as non-human resources. Thus
human resource management is only a part of the management process. At the
same time, it must be recognised that human resource management is inherent in
the process of management. This function is performed by all the managers.

A manager to get the best of his people, must undertake the

basic responsibility of selecting people who will work under him and to help
develop, motivate and guide them. However, he can take the help of the
specialised services of the personnel department in discharging this responsibility.
The nature of the human resource management has been highlighted in its
following features:

1. Inherent Part of Management: Human resource management is inherent in

the process of management. This function is performed by all the
managers throughout the organisation rather that by the personnel
department only. If a manager is to get the best of his people, he must
undertake the basic responsibility of selecting people who will work under
him.

2. Pervasive Function: Human Resource Management is a pervasive function

of management. It is performed by all managers at various levels in the
organisation. It is not a responsibility that a manager can leave completely to

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someone else. However, he may secure advice and help in managing people from
experts who have special competence in personnel management and industrial
relations.

3. Basic to all Functional Areas: Human Resource Management permeates all the
functional area of management such as production management, financial
management, and marketing management. That is every manager from top to
bottom, working in any department has to perform the personnel functions.

4. People Cantered: Human Resource Management is people cantered and is

relevant in all types of organisations. It is concerned with all categories of
personnel from top to the bottom of the organisation. The broad classification of
personnel in an industrial enterprise may be as follows:

(i) Blue-collar workers (i.e. those working on machines and engaged in loading,
unloading etc.) and white-collar workers (i.e. clerical employees),

(ii) Managerial and non-managerial personnel,

(iii) Professionals (such as Chartered Accountant, Company Secretary, Lawyer,

etc.) and nonprofessional personnel.

5. Personnel Activities or Functions: Human Resource Management involves

several functions concerned with the management of people at work. It includes
manpower planning, employment, placement, training, appraisal and
compensation of employees. For the performance of these activities efficiently, a
separate department known as Personnel Department is created in most of the
organisations.

6. Continuous Process: Human Resource Management is not a one shot

function. It must be performed continuously if the organisational objectives are
to be achieved smoothly.

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7. Based on Human Relations: Human Resource Management is concerned with
the motivation of human resources in the organisation. The human beings cant be
dealt with like physical factors of production. Every person has different needs,
perceptions and expectations.

The managers should give due attention to these factors. They require human
relations skills to deal with the people at work. Human relations skills are also
required in training performance appraisal, transfer and promotion of
subordinates.

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Legacy of HRM

The legacy of HRM needs to be analysed from two

different perspectives to get a better insight into its nature.

These are (a) the Western context (b) the Indian context.

(a) Western Context:

The origin of HRM, as is known today, date back to ancient

times. One finds a reference of HR policy as early as 400 B.C., when the
Chaldeans had a sound incentive wage plan. All that has changed over the
years is the status of the employees, their roles and relationship-inter personal
and intergroup.

The status of labour prior to industrial revolution was

extremely low and the relationships were characterised by slavery, seldom and
guild system. The slaves performed manual tasks to agricultural, military and
clerical responsibilities. The efficiency levels were low due to over-
dependence on negative incentives and negligence of positive incentives.

The slavery structure was replaced by seldom, were neither

slaves nor hired labourers. The structure was related to rural and agrarian pursuits.
Workers were offered positive incentives which resulted in enhanced productivity
and reduced need for supervision. Seldom disappeared during Middle Ages with
growth in manufacturing and commercial enterprises. It was replaced by the Guild
System.

The guild system involved the owners, the journeyman and

the apprentice. It was here that real HRM started. One noticed, proper selection
procedures being adopted, workers being imparted training and collective

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bargaining being adopted to settle issues pertaining to wages and working
conditions.

With the advent of Industrial Revolution, the guild

system disappeared. The doctrine of laisser-faire was advocated and the cottage
system got transformed to factory system leading to enhanced specialisation. But
this period was dominated by many unhealthy practices like unhealthy work
environment, long working hours, increased fatigue rate, monotony, strains,
likelihood of accidents and poor work relationship.

Progressive entrepreneurs like Owen believed that

healthy work environment could be effectively used to improve productivity. But
his opinion faced severe opposition. A major change was noticed in personnel
practices after the World War I. The modern HRM started in 1920. Groups were
formed to conduct research on personnel problems.

A number of studies were undertaken to analyse the

fallacies in the personnel field. For the first time, psychology was applied to
management. The Hawthorne studies advocated the need to improve industrial
relations for increasing production. The application of psychology brought a
dramatic change in the work relationship and productivity started increasing. But
this prosperity ended during the great depression.

Thereafter, organisations started offering fringe benefits

to workers to induce them to work. Findings of behavioural science were used to
enhance productivity. Increasing number of organisations adopting manpower
planning, management development, techniques of personnel management, etc.
Personnel departments started stressing on management-individual employee
relationships. This was followed by setting up of labours relations department to
negotiate and administer collective bargaining.

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 Federal interest gave rise to manpower management
department. The members of these departments were technically competent in
testing, interviewing, recruiting, counselling, job evaluation negotiation and
collective bargaining. They also acquired expertise in wage and salary

Administration, employee benefit schemes and services,

training and development and other allied services. The top management started
encouraging line managers in middle management to consult personnel
departments in these respects. This department, later on acquired recognition as
staff to the working-line. This led to multiplicity of personnel jobs instead of a
single, stereotyped task. The personnel or human resource manager became a part
of top management.

In todays world, stress is on scientific selection, training and

development. There is an increasing emphasis on interrelationship between the
leader, follower and the environment. Attempts are also on to provide scope to an
individuals personal dignity, status and sense of achievement. The concern is
increasing profits through people.

HRM in India is centuries old. The first reference of HRM

was provided by Kautilya as early as 4th century B.C. in his book Arthashastra.
The work environment had logical procedures and principles in respect of labour
organisation such as Shreni Wages were paid in terms of quantity and quality of
work. Workers were punished for unnecessary delay or spoiling of work.
Kautilyas contribution was based on Shamrastra Concepts like job description,
qualifications for jobs, selection procedures, executive development, incentive
system and performance appraisal were very effectively analysed and explained.

The guild system prevailed in the Indian economy too. It

was based on Varnashram or caste system and resulted in division of labour
accordingly. In the course of time, professions became hereditary. From 14th

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century B.C. to the latter half of 10th century B.C., the relationship of employer-
employee was marked with justice and equity.

The HRM experienced full in mediaeval India due to

foreign aggressions over the next 700 years. During the Mughal rule, Karkhanas
were established, but the artisans and craftsmen were poor and lived on starvation
level and the productivity was low. During the British rule, the work environment
was appalling and full of inhuman cruelties. This continued till 1881 when the
Factory Act was enacted. This Act provided for

(i) weekly holidays

(ii) fixation of working hours

(iii) fixation of minimum age for children at 7 years subject to a maximum

working period of 7 hours a day.

In 1890, the first labour organisation was formed and was known as Bombay Mill
Hands Association. This association started working for improving the work
environment and for getting the workers their rightful dues. The success of this
association Few amongst these were Printers Union Calcutta (1905), Postal
Union, Bombay (1907) and Madras Labour Union (1918).

The union movement was very weak till the early thirties.
But the situation showed marked improvement 5 years before and after the
Second World War. After independence, the activities of the personnel department
have multiplied. Human resource department is expected to take care of welfare
activities, employment, safety, training, wage and salary administration,
promotions, transfers, lay-off, improvement in living and working conditions,
health services, safety measures, prevention and settlement of disputes, etc

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OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

According to Scott, Clothier and Spriegal

The objectives of Human Resource Management, in an

organisation, is to obtain maximum individual development, desirable working
relationships between employers and employees and employees and employees,
and to affect the moulding of human resources as contrasted with physical
resources.

The basic objective of human resource management is to contribute

to the realisation of the organisational goals. However, the specific objectives of
human resource management are as follows:

(i) To ensure effective utilisation of human resources, all other

organisational resources will be efficiently utilised by the human
resources.

(ii) To establish and maintain an adequate organisational structure of

relationship among all the members of an organisation by dividing of
organisation tasks into functions, positions and jobs, and by defining
clearly the responsibility, accountability, authority for each job and its
relation with other jobs in the organisation.

(iii) To generate maximum development of human resources within the

organisation by offering opportunities for advancement to employees
through training and education.

(iv) To ensure respect for human beings by providing various services and
welfare facilities to the personnel.

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 (v) To ensure reconciliation of individual/group goals with those of the
organisation in such a manner that the personnel feel a sense of
commitment and loyalty towards it.

(vi) To identify and satisfy the needs of individuals by offering various

monetary and non-monetary rewards.

In order to achieve the above objectives, human resource management

undertakes the following activities:

(i) Human Resource Planning, i.e., determining the number and kinds of
personnel required to fill various positions in the organisation.

(ii) Recruitment, selection and placement of personnel, i.e., employment

function.

(iii) Training and development of employees for their efficient performance

and growth.

(iv) Appraisal of performance of employees and taking corrective steps such

as transfer from one job to another.

(v) Motivation of workforce by providing financial incentives and avenues

of promotion.

(vi) Remuneration of employees. The employees must be given sufficient

wages and fringe benefits to achieve higher standard of living and to
motivate them to show higher productivity.

(vii) Social security and welfare of employees.

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CORE ELEMENTS OF HRM

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

Management: HRM involves application of management functions &

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

Integration & Consistency: Decisions regarding people must be integrated

& consistent

Influence: Decisions must influence the effectiveness of organization

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

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

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

SCOPE

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

Scope of HRM can be described based on the following activities of

HRM. Based on these activities we can summarize the scope of HRM into 7
different categories as mentioned below after the activities. Lets have a look at
both of them

HRM Activities: -

1. HR Planning

2. Job Analysis

3. Job Design

4. Recruitment & Selection

5. Orientation & Placement

6. Training & Development

7. Performance Appraisals

8. Job Evaluation

9. Employee & Executive Remuneration

10. Motivation

11. Communication

12. Welfare

13. Safety & Health

14. Industrial Relation

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7 Categories of Scope of HRM:

1. Introduction to HRM

2. Employee Hiring

3. Employee & Executive remuneration

4. Employee Motivation

5. Employee Maintenance

6. Industrial Relations

7. Prospects of HRM

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Importance

Human resource management (HRM) has long been overlooked

in the corporate sector in the country where a small section, comprising mostly
the multinational companies were practising the same. Human with the growing
realization of proper HRM in the corporate sector, it has grown into an important
activity. Now the head of HRM is an important member of the senior teams of any
thriving business.

Resource Management is important for banks because banking

is a service industry. Management of people and management of risk are two key
challenges facing banks. How you manage the people and how you manage the
risks determines your success in the banking business. Efficient risk management
may not be possible without efficient and skilled manpower.

Banking has been and will always be a "People Business".

Though pricing is important, there may be other valid reasons why people select
and stay with a particular bank. Banks must try to distinguish themselves by
creating their own niches or images, especially in transparent situations with a
high level of competitiveness. In coming times, the very survival of the banks
would depend on customer satisfaction.

Those who do not meet the customer expectations will find survival
difficult. Banks must articulate and emphasize the core values to attract and retain
certain customer segments. Values such as "sound, reliable", "innovative,
international", "close", "socially responsible", "Indian", etc. need to be
emphasized through concrete actions on the ground and it would be thebanks
human resource that would deliver this.

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 It is a common complaint among bank executives that skilled
manpower is in short supply:

Loyalty and commitment

Attract and retain talent

Train people for challenging roles

Develop skills and competencies

Promote team spirit

Increase productivity and profits

Improve job satisfaction

Enhance standard of living

Generate employment opportunities

HR resources are becoming scarce both in quality and quantity.

And, it is quite elementary that any resource that is in short supply needs to be
Properly managed for the benefit of society. Human Resource Management
process. What do I mean when I say this? You need to manage the people and for
this you need to discriminate between the people, I mean positive discrimination.

The entire spectrum of HR practice requires revolutionary changes

if the banks have to survive. Managing the people is the key challenge. And, in
my opinion, discrimination is the key word when dealing with people.

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

There are 2 broad functions of HRM. They are:

1.Managerial Functions

2.Operational Functions

1.Managerial Functions:

Managerial functions of Personnel management include planning,

organizing, directing, co-ordinating & controlling.

Planning:

It is the charting out of programmes & changes in advance in the

achievement of organizational goals. Hence, it involves planning of human
resources requirements, recruitment, selection, training etc. It also involves

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forecasting of personnel needs, changing values, attitudes & behavior of their
employees & their impact on the organization.

Organizing:

In the words of J. C. Massie, an organization is a structure &

process by which co-operative groups of human beings allocated its tasks among
its members, identifies relationships & integrates its activities towards a common
objective. Given the complex relationships that exist between specialized
departments & the general departments, many top managers seek the advice of
personnel manager. In this manner, the organization establishes relationships
among the employees so that they can together contribute to the achievement of
organizational goals.

Directing:

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

Co-ordinating:

It is the task of various employees efforts to ensure successful goal

achievement. The Personnel manager co-ordinates various managers at different
levels as far as the personnel functions are concerned.

Controlling:

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

Operative Functions:

The operative functions of HRM relate to employment, development,

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

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

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Employment:

Employment function is securing & employing the people having required

level of human resources essential for achieving the organizational objectives. It
involves job analysis, human resources planning, recruitment, selection,
placement, induction & handling internal mobility.

1. Job Analysis:

It is the study & collection of data relating to the operations &

responsibilities of a specific job. It includes:

Collection of data & information & facts relating to the various

aspects of jobs including men, machines & materials

Drawing up of job description, job specification, job requirements

& employee specification with which nature, level & quantum
human resources can be finalized.

Providing the guidelines, plans & the basis for job design & for all
operative functions of HRM.

2. 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:

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 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

3. 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.

Seeking out & identifying new sources of applicants.

b) Motivating the right type of candidates to apply for jobs in the

organization.

c) Ensuring a healthy balance between internal & external sources.

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4. 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.

5. 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:

1. Counselling the concerned managers regarding the placements.

2. Overseeing the follow-up studies, employee performance appraisal to

monitor employee adjustment to the job, in the coming days.

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 3. Correcting wrong/misjudged placements, if any.

4. Induction & Orientation:

These are procedures by which a new employee is rehabilitated in the

news 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 peoplehis colleagues, supervisors

& subordinates.

c) Mould the employees by orientation methods to the new working

conditions.

Human Resource Development:

This process involves improving, moulding, & developing the skills,

knowledge, creativity, attitude, aptitude, values, commitment, etc. based on the
present & future job & company requirements.

Performance Appraisal:

It is the continuous & systematic evaluation of individual

employees with respect to their performance & their potential

for future development.

It includes:

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 1. Enunciating policies, procedures & techniques.

2. Assisting functional managers.

3. Reviewing & summarizing reports.

4. Evaluating the effectiveness of various programmes.

Training:

It is the process of transmitting the employees the technical &

operating skills & knowledge.

It includes:

1. Identification of training needs of the individuals & for the

organisation.

2. Developing appropriate training programmes.

3. Assissting & advising the management in the conduct oftraining

programmes.

4. Transmitting requisite job skills & job knowledge to the

employees.

5. Asses the effectiveness of the training programmes.

Management Development:

It is the process of designing & conducting appropriate executive

development programmes so as to develop the managerial & human relations

skills of the employees.

It includes:

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 1. Identification of the areas in which management development is
needed.

2. Conducting development programmes.

3. Motivating executives/managers.

4. Designing special development programmes/ assessment

procedures for promotions.

5. Utilising the services of specialistsboth internal & external for

development & or Institutional (external) development
programmes.

6. Evaluating the effectiveness of executive development

programmes.

Career Planning & Development:

It is the planning of ones career & implementation of career palns

by means of education, training, job search & acquiring of work
experience.

It includes:

1. Internal mobilityvertical & horizontal transfers, promotions &

demotion.

2. Transferprocess of placing employees in the same level jobs

where they can be utilised more effectively as per the needs of the
organisation. This also meansdeveloping transfer policies,
offering assistance & guidance to employees under transfer orders
& evaluating transfer policy periodically.

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 3. Promotionit deals with the upward assignment of employees to
occupy higher positions (with better status & pay) in consonance
with resources of employees & job requirement. The department
must ensure that:

a) Equitable, fair & consistent promotions are formulated &

administered.

b) Managers & employees are given assistance & guidance on the

subject of promotion.

c) Execution of promotional policies are as per policies & procedures.

4. Demotionis the downward assignment of an employee in an

organisation. The department must ensure that:

a. Equitable, fair & consistent demotion policies are drawn up.

b. Assisting & advising employees regarding demotions.

c. Ensure fair implementation of demotion policies & procedures.

Organisational Development:

The planned process drawn up to improve organisational effectiveness

through changes in individual & group behaviour, culture & systems of the
organisationdrawing models from applied behavioural science.

Human Relations:

Administering various human resources policies like employment

development & compensation & interactions among the employees on one hand

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& employees & the management on the other, create a sense of working
relationships between workers & management & trade unions.

Basically they are all interactions between human beings.

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

integrates people into worksituations in a way that motivates people to work
together with economic, psychological & social satisfaction thereby
increasingtheir productivity. Hence Human Resources Management functions will
centre around:

Understanding perception, personality, learning, intra & inter personal

relations, inter & intra group relations.

Motivating all employees.

Promoting employee morale.

Developing communication skills.

Developing leadership skills.

Redressing satisfactorily through a well defined grievance procedure.

Handling disciplinary cases by established disciplinary procedures & in all

fairness.

Providing adequate counselling to solve employees personal, work

& family problems, thereby releasing their stress & strain.

FUNCTIONS OF HRM ALONG WITH OBJECTIVES

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HRM Objectives Supporting HRM Functions
Social Objectives Legal Compliance Benefits
Union Management Relations
Organisational Objectives Human Resource Planning
Employee Relations
Recruitment & Selection
Training & Development
Performance Appraisals
Placement & Orientation
Employee Assessment

Functional Objectives Performance Appraisals

Placement & Orientation
Employee Assessment
Personal Objectives Training & Development
Performance Appraisals
Placement & Orientation
Compensation
Employee Assessment

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

Organisational Objectives:
To recognise the role of HRM in bringing about
organisational effectiveness. HRM is only means to achieve & assist the
organisation with its primary objectives.

33
 Functional Objectives:
To maintain departments contribution & level of
services at a level appropriate to the organisations needs.

Personal Objectives:
To assist employees in achieving their personal goals,
at least in so far as these goals enhance the individuals contribution to the
organisation. This is necessary to maintain employee performance &
satisfaction for the purpose of maintaining, retaining & motivating the
employees in the organisation.

Objectives of Personnel Management are determined by organisational

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

The objectives of HRM are as follows:

i. To create & utilise capable & motivated workforce to achieve the basic
organisational goals.
ii. To establish & maintain proper & sound organisational structure & healthy
working relationships among all its employees.
iii. To ensure the integration of individual groups goals with those of the
organisation.
iv. To create facilities for individuals & groups to develop so as to be in tune
with the growth of the organisation.
v. Proper & optimum utilisation of human resources.
vi. To ensure adequate & equitable wages, incentives & other benefits so that
satisfied individuals & groups are motivated to take on challenges.

34
 vii. To maintain high employee morale.
viii. To continuously upgrade the skills & knowledge of the employees, by
training & development programmes.
ix. To ensure opportunity for participation in management to the extent
possible.
x. To provide acceptable & effective leadership.

HUMAN RESOURCE MANAGEMENT IN BANKS

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

HRM in Cooperative Banks

It is sad that the HR policies of cooperative banks are totally dominated by

the Registrar of Cooperatives. This is, perhaps, one reason why the cooperatives
are unable to improve themselves.

HRM in Regional Rural Banks (RRBs)

35
 As regards RRBs, most of them adopt the HR policies of sponsor banks,
which are not appropriate for their special nature.

HRM in Public Sector Banks

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

HRM in Private Banks & Foreign Banks

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

involved in the identification of specific skills that each job warrants & recruiting
suitable staff by every way possible. In these banks, recruitment is a continuous
process with a strong focus on getting the right person for the right job by offering
appropriate compensation, incentives & designations. There is a great energy
spent in keeping the turnover low & offering appropriate training inputs. Possibly
there are as many pay structures as there are employees.

More importantly, HRM has a role in monitoring & mentoring the

employee. There are no routine transfers. Rather people are recruited in different
geographical locations & different levels. Technology has helped in centralizing
the back office & other functions such that service can be provided from a

36
distance. These institutions adopt a proactive performance appraisal system but
still short of 360 Degree appraisals.

Their training process is concerned with both skill building & motivating.
It should, however be said that the demand for professionals on account of growth
of Indian Business is such that the efforts of HRM have not helped it from
completely staving off staff turnover in the ranks.

HRM in Public Sector Unit Banks (PSU Banks)

In the case4 of PSU Banks the recruitment process is annual & large scale.
People are recruited at the lowest grade & promoted I due course.this makes the
career path of each employee the responsibility of the organisation. This also
underlies a belief that anyone can occupy any desk. In such a system
specialisation is the loser. Recruitment at higher levels is a recent phenomenon &
more an exception than rule. Pay packets are uniform for a grade/level with
annual increments & uniform perquisites. Increments are earned automatically.

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

Vacancies get created as & when people move up. It is not uncommon to se new
departments spring up just to allow promotions. In a way such a move is justified
as salary is linked to grades & not performance. The concept of job rotation is
practiced with great conviction. As regard leave it is seen that modern business
organisations, driven by work life balance issues & operational risk ensure that
certain annual leave is mandatory.

In the case of PSU Banks, the compulsory leave system has not yet
taken root. In the circumstances an important task at hand is training the staff
member, who, on accont of age profile is not comfortable working in an IT
environment. HRM should also take immediate steps to improve productivity.
There is a simultaneous need to balance the demand of IT savvy youngsters

37
joining the organisation who ask for high salaries. PSU Banks are not able to offer
market driven salary.

Given that banking business & the business of Government are distinct,
there is, in the case of PSU Banks, an urgent need that salaries are not limited by
what is paid in the ministry but unshackled. Till that happens, HRM should,
innovatively tackle the issue.

Responsibilities of The Human Resource Management Department In Banks:

Role:

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

Responsibilities:

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

To propose & obtain agreement on changes to these policies from time to
time & to ensure that policies which have been agreed are being
implemented throughout the Bank.
To contribute fully to the task of meeting the business challenges whichthe
bank has to face by supporting Branch/Unit Managers in continuously
developingthe potential of employees & in creating conditions in which all
the employees are motivated to meet the objectives of the Bank.

38
 To continuously monitor the Banks strategies to ensure that HR policies
are approriate & that employee numbers & skills are fully supportive of
such strategies.
To deliver a full range of personnel services in support of line management.
These services include manpower planning, recruitment/transfer,
remuneration, training & employee welfare.
To support line management in their day-to-day management of the
workforce by providing advice & consultancy on personnel &
performance management issues.

EMPLOYEE RELATIONS IN BANKS

The banking sector has been characterized by apparently harmonious

industrial relations & has not suffered from the British Diseases of industrial
action & demarcation issues associated with parts of manufacturing industry (e.g.
Batstone, 1984). Banks have promoted unitarism (Fox, 1966) encouraging an
ethos of teamwork, shared interest & loyalty, wanting commitment beyond the
cash nexus.

While banks are generally seen as having a passive approach to employee

relations, paternalism did underpin the system & particularly important was the
system of internal promotion supported by an unwritten agreement between the
major UK Banks on no poaching. The internal labour market created two
categories of employees: career & non-career which equated to a male/female
divide.

Retail banking is a highly labour intensive industry with labour costs

forming 70% of total operating expenditure & involvement in fund transmissions
meant that a majority of clerical staff have not been used as a means of marketing

39
the banks products nor directly for increasing business but to process existing
accounts. They have been regarded as an overhead rather than a resource.

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

CURRENT CHALLENGES FACED BY BANKS IN HRM

Effective work force:

A time-consuming & hectic job is to hunt the right talent.
Higher the professional value of the vacancy, tougher is the search.
Identifying the right stuff followed by negotiation is the element which
makes the job tough for the employer. Banks are keenly interested to fill
up two types of breeds of professionals.
Ones who are outstanding professionals with high job hopping attitude
these are those who come in-work for some tome & then leave for better
prospects.
Others are those who are keenly picked-up, trained & are
somehow retained to be developed as future management within the bank.
Management trainees are a growing popular phenomenon where freshly
qualified business graduates are engaged by banks & a certain percentage
of these well-equipped professionals stay back within the organization to
grow into the footsteps of senior managers.
Banking jobs being apparently lucrative for many, attract
a large number of candidates against advertised vacancies in media
creating a large database management problem. This has been facilitated

40
 by specialized hiring agencies who may take up the job of hiring in case of
large number of vacancies.
Right People:
The most difficult agenda of HRM across the banking
sector is to retain the right people. Sudden growth of retail banking &
other services has put pressure on HR Managers in banks to engage more
professionals within shorter span of time thereby attracting manpower in
other banks on attractive packages has made the job market very
competing.

A bank in a normal course invests time & money to hire &

train the appropriate workforce for its own operations. This readymade
force is often identified & subsequently picked-up on better terms by
others.
Compensation:
How much to pay the right employee & how much to the
outstanding performer. Banks have traditionally followed pay scales with
predetermined increments, salary slabs, bonuses & time based fringe
benefits like car & house advance, gratuity, pensions, etc.
The situation is not the same anymore.
An increment of Rs.500-800 per annum is no more a source
of attraction for a professional anymore. A basic pay with traditional
formulas of linkage with medical & other facilities has no soothing today.
A promise of future growth, learning culture & corporate loyalty is out of
dictionary & does not mean anything to this energetic & competent
performer today.
A waiting period of 3-4 years in each cadre haunts the
incumbents who strongly believe in immediate compensation. A freshly
hired professional requires a brand new car or car loan n resuming office
quite contrary to his previous breed of bankers who would wait for the job
seniority to qualify for a car loan.
Job Satisfaction:

41
 Everybody in the bank wants to work in the preferential
department, preferential location, city of his own choice & boss of his
liking. An administrative deviation from any of these results in lowered
job satisfaction.

Although hiring is normally based on regional requirement

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

42
TRAINING & DEVELOPMENT

Meaning & Definition:

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

43
 The training system in the banking industry has a strong structural
base. However, in the past the training activities have been more ritualistic due to
absence of a strategic link between training & human resources development.
Today it is important that the training function is made an effective organizational
intervention by establishing a clear policy of training & development within the
framework of total human resource development. The training establishments
need to be actively involved in the total training process starting from the
identification of the training needs, evaluation of training effectiveness & the
benefits of training to the end-users viz. the internal & external customers.
The need for training & development is determined by the
employees performance deficiency, computed as follows:
Training & Development Need = Standard Performance Actual
Performance.
We can make a distinction among training, education &
development. Training, as was started earlier, refers to the process of imparting
specific skills. Education, on the other hand, is confined to theoretical learning in
the classrooms.
Training & Education Differentiated:

TRAINING EDUCATION

Application oriented Theoretical oriented

Job experience Classroom learning

Specific tasks General concepts

Narrow perspective Broad perspective

44
 Development:

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

This ancient Chinese proverb seems to describe the underlying rational of

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

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

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

TRAINING DEVELOPMENT

45
 Duration:

Training courses are It involves a broader long

designed mostly for short term education for a long term.
term.

Managerial/Operative
Personnel:

Training is normally
It is directed at
directed at operative
managerial personnel to
employees & related to
acquire conceptual &
technical aspects.
theoretical knowledge.

Specific/General:

Training is more It is more general in

specific job related nature, especially top
information. management level.

Method:

More emphasis on the More emphasis on the

on the job method. off the job method.

Cost Involved:

Imparting training is Development is more

less expensive. expensive.

46
 Who Imparts:

Mostly the supervisors It is undertaken by

impart training. supervisors, outside experts &
self.

Frequency:

Less frequent. Mostly More frequent &

at induction & at every continuous in nature.
change in job.

Theoretical/Practical
Aspects:
Emphasis is placed on
Emphasis is placed on theoretical & conceptual
practical or technical aspects.
aspects of work.

METHODS & TECHNIQUES OF

TRAINING

ON-THE-JOB
OFF-THE-JOB
METHOD
METHOD

VESTIBULE
JOB ROTATION
COACHING TRAINING
ROLE PLAYING
JOB INSRTUCTIONS
LECTURE METHOD
COMMITTEE
CONFERENCE OR
47 DISCUSSION
PROGRAMMED
 DEVELOPMENT IN BANKS

The banks must emphasis on human resource development as

one of the critical areas of its operations. It should redraw its training &
development schedules to suit the requirements of the current emerging scenario.
Requisite training should be imparted to various branch level functionaries as also
administrative staff. Besides in-house training the reputed external agencies
should be utilized for human resource development with a view to updating their
knowledge & to keep them abreast of the current banking scenario for meeting the
challenges ahead.

The concept of segment specialization may be resorted to in respect of the

personnel selected therefore. It is now thought expedient to plan & strengthen the
squad of skilled officers in various segments as IT, marketing management, risk
management, risk based supervisors, law, security, etc. The lead bank must play
an effective role in improving the work environment & pursuing staff welfare
measures in the form of whole range of financial assistance with reference to
various loans of sorts.

Human resource skills are other areas of challenge. Because of

modernization & technological advancement rigorous training & man power
planning are required. In the market scenario characterized by heightened
competition, growing customer needs & technological up gradation, the bank fine
tunes its HT policy to meet its corporate objectives.

New training systems have been developed to impart competencies & a

broad range of skills among the employees to deliver faster & superior service
that can delight the customers. The Industrial Relations in the banks have been
harmonious & cordial.

48
 RECRUITMENT
Meaning and definition:

The human resources are the most important assets of an

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

Once the required number and kind of human resources are

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

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

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

Objectives of recruitment

Some of the objectives of recruitment are:

To attract people with multi-dimensional skills and experiences that suits

the present and future organizational strategies
To induct outsiders with a new perspective to lead the company
To infuse fresh blood at all levels of the organization
To devise methodologies for assessing psychological traits

Process of Recruitment:

49
 Recruitment refers the process of identifying and attracting job seekers so
as to build a pool of qualifies applicants. This process comprises of five
interrelated stages, viz,

Planning
Strategy development
Searching
Evaluation and control

The ideal recruitment process is the one which attracts relatively larger
number of qualified applicants who will survive the screening process and accept
positions with the organization, when offered to approach the ideal people,
individuals responsible for recruitment process must know how many types of
employees are needed, where and how to look for individuals with appropriate
qualifications and interests, what inducements to use for various types of
applicants group, how to distinguish applicants who are unqualified from those
who have a reasonable chance of success, and how to evaluate their work.

SELECTION

Definition

Selection is defined as the process of differentiating applicants in order

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

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

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

The selection procedure cannot be effective until and unless-

50
 Requirements of the job to be filled have been clearly specified.
Employee specifications (physical, mental, social, behavioral etc) have
been clearly specified.
Candidates for screening have been attracted.

Selection process is preferable because:

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

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

Selection Process:

The selection process consists of the following steps:

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

application form depending upon the size and nature of business
carried on, type and level of the job etc. Information is generally
required on the following items in the form: personal background,
educational attainments, work experience references etc.

2. Written test: Written test is conducted for the qualified candidates

after they are screened on the basis of application form to measure
the candidates ability towards the job, his aptitude reasoning,
knowledge in various disciplines, English language etc.

51
3. Preliminary Interview: The next step that tag along the selection
procedure is a preliminary interview wherein the applications are
scrutinized so as to eliminate unqualified applications. Preliminary
Interviews are short. This interview thus provides information
about the candidate related to the job or personal specifications.
4. Selection Test: After passing through the interview the next stage
that applicant has to prove himself on are the selection tests. There
are different types of selection tests for different levels of the
organization and that too is further differentiated within different
types of organizations. Some of the most common and well-known
tests that an applicant has to go through are;
a. Ability test
b. Aptitude test
c. Personality tests: Which is common mostly for the higher
level of management are given to measure a prospective
employees motivation to function in a particular working
environment.
d. Internal test: to measure an individuals activity
preferences.
e. Graphology Test: is an art wherein the individuals
handwriting is seen and accordingly his personality traits
are derived by the way he writes.
f. Polygraph Test: Are designed to ensure accuracy of the
information given in the applications.
g. Medical Tests: Reveal physical fitness of the candidate.
h. Drug test: Help to ensure the presence of illegal or
performance-affecting drugs.
5. References and background checks: Many employer request
names, address, and telephone numbers or references for the
purpose of verifying information and, perhaps, gaining additional
background information on an applicant.
6. Selection Decision: After collecting data from all the preceding
steps, this is the most crucial step in the entire selection process.
The main difference between the preceding stages and this is that

52
 former is used to short list the number of candidates and later one
is to make a final decision from the pool of individuals who pass
the tests, interviews and reference checks. The view of line
manager will be generally considered in the final selection because
it is he/she who is responsible for the performance of the new
employee. The HR manager plays a crucial role in the final
decision.

7. Physical Examination: After the selection decision and before the

job offer is made, the candidate is required to undergo a physical
fitness test. The result of the medical fitness test is recorded in a
statement and is preserved in the personal records. The main
objectives of this test are as follows:
To detect if the individual carries any infectious diseases.
To determine whether an applicant is physically fit to
perform the work.
It helps to determine if there are any physical capabilities
which differentiate successful and less successful
employees.
Medical check up protects applicants with health defects
from undertaking work that could be detrimental to them
or might otherwise endanger the employers property.
Last, but not the least such examination will protect the
employer from workers compensation claims that are not
valid because the injuries or illness was present when the
employee was hired.
8. Job offer: The next step is selection process is Job offer for those
applicants who had passed the previous stage. Job offer is made
through a letter of appointment. Such a letter usually contains the
date by which the appointee must report on duty. Appointee must
be given a reasonable time for reporting because it may be quite
possible that the appointee is employed in some other company or

53
 must be residing in some other city and for such other reasons.
Company may also want the appointee to delay in joining the job
because the job may require undergoing some training program.
Decency demands that rejected applicants must be informed about
their non-selection. These applicants data must be used for future
references.
9. Contract of employment: After the job offer is made and the
candidates accept the offer, certain documents need to be executed
by the employer and the candidate. One such document is
Attestation form. This form contains vital details about the
candidate, which are authenticated and attested by him/her, which
could be used for future reference.
Another document is contract of employment. This document
contains the terms and conditions of employment like designation,
perks, term of job and so on. The information written in the
contract may vary according to the level of the job.
The main drawback of the contract is that it is difficult to enforce
them.
10. Concluding the selection process: The selection process will not
end with executing the employment contract. The step is reassuring
the candidates who have not been selected. Such candidates must
be told that they were not selected, not because of any serious
deficiencies in their personalities, but because their profiles did not
match the requirements of the organization.
11. Evaluation of selection process: The broad test if the effectiveness
of the selection process is the quality of the personnel is hired. An
organization must have competent and committed personnel. The
selection process, if properly done, will ensure availability of such
employees. Audit must be conducted by the people who work
independent of the HR department.

New methods of selection:

54
 360 degree selection or participative selection: Normally supervisors
administer the selection test and interview. They judge the fit between the
job and the candidate. But the employee skills, knowledge and
performance affect not only superiors but also subordinates and the
employees of the same level. Hence the organization started involving the
subordinates and the employees of the same level in administrating the
employment tests and interviews. This type of selection program is called
360 degree program.
Employee leasing: The client company leases employees from a third
party, not on temporary basis but on a full time basis and for long help. An
interesting feature is that the client company need not perform personnel
activities such as hiring compensation or record keeping. Employees
working elsewhere are leased. They are not directly employed by the
company where they are working. Employees not recruited by one client
are sent to another.
Selection by invitation: Management observes the performance of the key
executives of competitors. If the performance of the key executives is
excellent or the key executives are the change agents, the management
invites them to join the organization by offering attractive salary and
benefits. Thus, the significant performance of the executives forms basis
for selecting them by invitation.

55
 FUTURE OF HRM

If HRM is not to remain more in the realm of rhetoric with wide

disparities between theory and practice, several things need to take place. First,
HRM needs to be diffused across industries and the economy. For this to occur the
following conditions need to be satisfied:

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

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

56
 STATE BANK OF INDIA

I have interviewed Mrs. Rohini Rai, Branch Manager of SBI The theme of
the interview was on how HRM has reacted to the various drivers of modern
banking & how to enhance performance in the fast changing banking sector. The
results of the interview threw up some interesting facets to the HR issues
confronting the banks today & how the HR departments are coping with it.

1) HRM CHALLENGES
1) The biggest HRM challenge is sustaining & increasing the profits of the
bank.
2) Following that is improvement in the operational effectiveness of the HR
department.
3) The least priority on the challenge list is given to new distribution
channels & on introducing new products & services.
2) THE ROLE OF HRM IN BANKS TODAY
When asked about the role of HRM in banking, M rs. Rohini Rai
was of the opinion that HRM drives business transformation initiatives. It is
therefore not completely incorrect to conclude that HRM participates in the
decision & allocation process after the major issues are decided.
Mrs. Rohini Rai however emphasized saying that In the post
business decisions, HRM participation in the business implementation &
resource allocation is solicited. It is necessary that the banks take up human
resources accounting & involve HRM departments fully in the business process
changes so that the full potential of change in business processes may be
realized.

3) EFFECTIVENESS OF HRD

57
 Posting right person for the right job, retaining talents,
planning for the long term needs of the bank, dovetailing employee
preferences in the deployment process, & capacity to make staff changes
that drive business changes are the corner stones of HR strategy.
4) COPING WITH THE EMPLOYEE TURNOVER

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

I. The need for specialization & new skill sets.

II. Marketing of bank products bring us to the two issues that have gained the
attention of HR departments in the recent years, namely staff deployment
techniques & managing employee turnover.
5) RECRUITMENT IN BANKS
. The personnels felt that the recruitment policies, in future, will
be woven around the above aspects (Table). It is an indication of changing
times that the list includes items such as performance linked incentives,
fast track promotion, foreign posting education, choice of departments,
sabbatical & stock option

6) Employee Development Techniques

It was earlier seen that the major task before the HRD is to instill new
skills with the staff. In this connection it can be pointed out that all the
banks own a large training network. They also have access to other
training establishments & seminars.
7) SOURCES OF RECRUITMENT The various sources of
recruitment may be broadly classified into two
categories, i.e., internal & external sources.

58
 Literature review

1)

Name of the Book: Human Relations

Name of Author(s): Laura Dias

Publisher: The Saylor Foundation

Year of Publish: 2014

Description:

Human Relations by Laura Portolese-Dias addresses all of the

critical topics to obtain career success as they relate to professional relationships.
Knowing how to get along with others, resolve workplace conflict, manage
relationships, communicate well, and make good decisions are all critical skills all
students need to succeed in career and in life.

2)

Name of the Book: Working with Humans

Name of Author(s): Piers Bishop

Publisher: Bookboon

Year of Publish: 2014

Description:

Almost everything a business does depends on people. Every decision,

every customer gained or lost, every employee helped to perform better - or not -
involves a human hand at some point, even in the internet age. This book will
change the way you understand - and work with - your people

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 3) Name of the Book: Maximizing People Potential

Name of Author(s): Lesley Sage, Lynne Walley

Publisher: Bookboon

Year of Publish: 2014

Description: Is working with, and through, people important to getting

results? The book presents the fundamental mindsets and perspectives to enable
you to harness the potential within yourself and others through a coaching
approach; it is not a book to teach you coaching skills.

4)Name of the Book: The Myths and Realities of Teamwork

Name of Author(s): David Wright

Publisher: Bookboon

Year of Publish: 2013

Description: In this book, the author, David Wright, sets out to share 30
years of his team building experience in organizations both large and small. The
book focuses on the key milestones that mark a team's journey to high
performance, without being naive to the challenges and the pitfalls.

5)Name of the Book: Managing Diversity

Name of Author(s): Janet Sayers

Publisher: Bookboon

Year of Publish: 2012

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 Description: This book provides an introduction to the theory and practice
of managing diversity (and Equal Employment Opportunities or EEO). The book
covers topics such as: the role of historical struggles in the development of
managing diversity practice today, demographic and social change; theoretical
debates; discussion of each of the main groups that managing diversity programs
often focus on like gender, ethnicity and religion, people with disabilities, and
mature workers; and practical tools for implementing valuing diversity initiatives.

6)Name of the Book: Human Resource Management

Name of Author(s): Manmohan Joshi

Publisher: Bookboon

Year of Publish: 2013

Description: In order to manage the wide variety of people working in an

organization in the complex business world of today, it has become necessary to
apply scientific and practical systems of managing people. This book is an attempt
to provide an insight into the various elements which constitute Human Resource
Management

CONCLUSION

The banking sector has grown from a few institutions primarily involved
in deposit acceptance and trade finance into a complex multi player where large

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number of commercial banks, financial institutions and specialized banks are
operating with various products and activities. The banking has become a
complex activity within the financial market linked directly and indirectly with an
over-all national growth and its impact as an integral part of regional segment of a
global banking environment.

Thus, event the high automation would require proper man behind the
machine to make things happen. This idea has been realized by top managements
in progressive banks.

Like many other organized sectors, banking requires multi layer

manpower for its various requirements of professionals and support staff. The
range may require reasonably educated security guards on the one end and a
highly educated and trained professional as head of corporate finance at the other.

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

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

To conclude the growth of banking sector in the future depends upon

appropriate HRM policies which will assist the employees in achieving their
personal goals and in turn will enhance the individuals contribution to the
organization. Objectives of the employees should be met if employees are to be
maintained, retained and motivated.

Bibliography

1. Human Relations, Laura Dias, The Saylor Foundation, 2014.

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 2. Working with Humans , Piers Bishop ,Bookboon,2014

3. Maximizing People Potential ,Lesley Sage, Lynne Walley,

Bookboon 2014

4. The Myths and Realities of Teamwork, David Wright,

Bookboon, 2013

5. Managing Diversity, Janet Sayers, Bookboon, 2012

6. Human Resource Management , Manmohan Joshi, Bookboon,

2013

7. How to Employ Your First Employee , Russell HR

Consulting, Bookboon, 2013

8. Recruitment and Selection Hiring the people you want, Eric

Garner, Bookboon, 2013

9. Dealing With Difficult People , Ken Pierce, Bookboon, 2013

10. Delegation and Empowerment: Giving people the chance to

excel, Eric Garner, BookBoon, 2012

11. Disability Discrimination in the Workplace: An Employer's

Guide, Kate Russell, BookBoon, 2012

12. Generational Challenges in the Workplace, Susan Quinn,

BookBoon, 2012

Appendix

http://www.journals.elsevier.com/human-resource-management-
review/recent-articles

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1) Performance management and employee engagement
Many contemporary organizations are placing a greater
emphasis on their performance management systems as a means of
generating higher levels of job performance.
We suggest that producing performance increments may be best achieved
by orienting the performance management system to promote employee
engagement. To this end, we describe a new approach to the performance
management process that includes employee engagement and the key
drivers of employee engagement at each stage.
We present a model of engagement management that incorporates the
main ideas of the paper and suggests a new perspective for thinking about
how to foster and manage employee engagement to achieve high levels of
job performance.
-Jamie A. Gruman | Alan M. Saks June 2016

2) Developing holistic leaders: Four domains for leadership development and

practice
Leadership development and practice have traditionally been
quite narrow, with a decided focus on the analytical realm of leadership.
However, the contemporary climate of corporate scandal and resultant loss
of societal confidence, coupled with the evolving demands, needs, and
expectations of employees, point to the potential need for a more holistic
approach to leadership.
Thus, this article proposes how management education and leadership
development programs can develop holistic leaders that are adept at
operating in the analytical, conceptual, emotional, and spiritual domains of
leadership practice. An integrated model for holistic leadership
development and practice that addresses all four of these domains is
proposed, and grounded in both established and emerging leadership
development theory
-Scott A. Quatro | David A. Waldman | Benjamin M. Galvin Aug 2016

3) Corporate social responsibility and human resource management:

A systematic review and conceptual analysis
Despite a significant increase in research and practise
linking corporate social responsibility (CSR) and human resource
management (HRM), a comprehensive examination of the relationship
between these two constructs has yet to be undertaken.

64
 Scholars associating CSR and HRM rarely explicate their understanding
of the connection between CSR and HRM (CSRHRM) or the
assumptions they make when exploring this relationship. Thus, we argue
that a comprehensive review of the literature of the CSRHRM nexus is
relevant and necessary. Such a review would allow scholars to reach more
explicit and comprehensive understandings of CSRHRM, and enhance
research both theoretically and empirically
Christian Voegtlin | Michelle Greenwood September 2016

3) Talent management: A critical review

If the volume of literature in the popular and practitioner press
is any guide, practitioners in the field of human resources are now
primarily in the business of talent management. But what is talent
management and what basis does it have in scientific principles of human
resources and management?
In this paper we address this question by reviewing problems with the
definition of talent management and the lack of data supporting many
practitioner claims. We then outline research that supports a systems-
oriented definition of talent management that focuses on the strategic
management of talent. We then outline future avenues of research to
further develop the field of talent management and tie it more closely to
the large volume of work in strategic human resources mnagement.
Robert E. Lewis | Robert J. Heckman June 2016

4) Strategic talent management: A review and research agenda

Despite a significant degree of academic and practitioner interest the topic
of talent management remains underdeveloped. A key limitation is the fact
that talent management lacks a consistent definition and clear conceptual
boundaries. The specific contribution of the current paper is in developing
a clear and concise definition of strategic talent management. We also
develop a theoretical model of strategic talent management. In so doing
we draw insights from a number of discreet literature bases.
David G. Collings | Kamel Mellahi july 2016
5) Strategy, human resource management and performance: Sharpening line
of sight
This paper builds on previous theory and research on strategy and human
resource management to identify important linkages between the firm's

65
strategy, its human resources, and performance outcomes. First, we review the
relevant literature focusing in particular on the role of human resources in
creating competitive advantage. We then present a multi-level model
illustrating how human resource management practices can effectively align
organizational, group and individual factors with the organization's strategy.
We redefine line of sight as the alignment of organizational capabilities and
culture, group competencies and norms, and individual KSAs, motivation and
opportunity with one another and with the organization's strategy. Further, we
propose that such alignment contributes to the creation of human capital and
social capital, both of which are necessary to achieve and sustain superior
performance. We conclude the paper with some implications for future
research and practice.
Paul F. Buller | Glenn M. McEvoy sept 2016

6)Strategic human resource management: The evolution of the field

This review takes an evolutionary and chronological
perspective on the development of strategic human resource management
(SHRM) literature. We divide this body of work into seven themes that reflect
the directions and trends researchers have taken over approximately thirty
years of research. During this time the field took shape, developed rich
conceptual foundations, and matured into a domain that has substantial
influence on research activities in HR and related management disciplines.
We trace how the field has evolved to its current state, articulate many of the
major findings and contributions, and discuss how we believe it will evolve in
the future. This approach contributes to the field of SHRM by synthesizing
work in this domain and by highlighting areas of research focus that have
received perhaps enough attention, as well as areas of research focus that,
while promising, have remained largely unexamined
-.Mark L. Lengnick-Hall | Cynthia A. Lengnick-Hall | Leticia S. Andrade |
Brian Drake Aug 2016

66