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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 Volume 3, No. 1, January 2014

i-Explore International Research Journal Consortium www.irjcjournals.org

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A Study on Training and Development in Public Sector Banks

Kavita Rani, Research Scholar, Kurukshetra University, Kurukshetra Diksha Garg, Research Scholar, Kurukshetra University, Kurukshetra ABSTRACT: The process of financial development in India has hinged effectively on the development of banking system. The Indian banking industry is continuously going through a process of transformation since nineties, due to the introduction of Liberalization, Privatization and Globalization (LPG), Information and Communication Technology (ICT). The first objective of present paper is to study existing status of training and development programmes banks for their employees. The second objective is to examine the effectiveness of training and development programmes for employees in fulfillment of their duties. Present research paper is of descriptive type and based on primary data collected through questionnaire filled by the bank employees. The present paper explained some suggestions to enhance training and development strategies, and to cope up with the existing challenges in the wake of severe competition in the training and development. The findings of the study suggest that training and development is inevitable and unavoidable in any sector. Keywords: Training and Development, Banks, Human Resource Management, Employees. TRAINING AND DEVELOPMENT Training: The aim of any training programme is to provide instruction and experience to new employees to help them reach the required level of performance in their jobs quickly and economically. For the existing staff, training will help develop capabilities to improve their performance in their present jobs, to learn new technologies or procedures, and to prepare them to take on increased and higher responsibilities in the future. Development: Employee Development Programs are designed to meet specific objectives, which contribute to both employee and organizational effectiveness. There are several steps in the process of management development. These includes reviewing organizational objectives, evaluating the organizations current management resources, determining individual needs, designing and implementing development programs and evaluating the effectiveness of these programs and measuring the impact of training on participants quality of work life.

Definitions of Training and Development According to the Michel Armstrong, Training is systematic development of the knowledge, skills and attitudes required by an individual to perform adequately a given task or job. According to the Edwin B Flippo, Training is the act of increasing knowledge and skills of an employee for doing a particular job. Dale S Beach defined Training is usually considered as the organized procedure by which people gain knowledge and increase skill for a definite purpose Differences between Training and Development- Employee training is different from management development or executive development. While the former refers to training given to employees in the operational, technical and allied areas, the latter refers to developing an employee in the areas of principles, and techniques of management, administration, organization and allied ones.

Table No. 1 Area Training Development Content Technical skills and

knowledge Managerial Behavioral skills and knowledge

Purpose Specific and Job related

Conceptual and General Knowledge

Duration Short term Long term For Whom

Technical and non-managerial personnel

Managerial personnel

Training and Development in banks In Banks, there is a need for the continuous training and development of the staff in the areas of customer care services on operational aspects and behavioral aspects of the business. How are the needs identified? The training needs are assessed through task analysis and performance analysis, which can be conducted through surveys, or from the information furnished by the heads of the departments, customer complaints, even from the reports on 360 degree feedback systems. In case of a large banks, there are two ways of conducting training programmes through an established department having a full time HRD functionary who oversees all the training and development functions of the Banks or through an external trainers coordinated by the HRD department These days Banks



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have recognized the need for training and re-training their staff, in order to develop a competitive edge over their competitors in delivering high quality services to the customers. Traditionally, banks have recruited young school leavers, and their initial training was either long apprenticeship or on-the-job or formal training in basic routine operations. Aspirants to management position were encouraged to qualify professionally by reading for associate-ship of the Institute of Bankers or an equivalent qualification. It was argued that banking requires exercise of sound training and development programmes for their employees. LITERATURE REVIEW In every study a good literature review does not only provide knowledge about what has been done in the research area but also strengths and weaknesses upon which one can also build an insightful and purposeful study. Jadhav (2013) studied the training and development programmes undertaken by banks for their employees. The main objectives of the present study were to analyze effectiveness of training and development programmes for employees to discharge their duties and to study how training and development programmes helps to achieve customer satisfaction. For this study primary data was collected through questionnaire filled by the bank employees. A sample of 40 employees is selected by the use of random sampling from different banks like HDFC, ICICI, Vijaya bank, Bank of Baroda, and Dena Bank located in suburban area of Mumbai. It is concluded that private and public Indian banks undertake training and development programmes for their employees to increase their efficiency. Banks provide training programmes to enhance their knowledge and skills to satisfy the customers. Growth of banking sector in India is the result of skilled manpower which is the outcome of training and development. Ramakrishna et al. (2012) have studied that Human Resource Development department has to play a more proactive role in shaping the employees to fight out the challenges. The banks not only have to make plans and policies and devise strategies, the actual functionaries have to show competence and effectiveness in executing the said policies and strategies. A sample of 85 employees covering all Canara bank branches in Kurnool District has been considered for the study at random. The study revealed that the employees have attended more training and development programmes, employees strongly agreed about the necessity of training and development programmes, majority of the employees rated trainers preparation as good, employees rated trainers creating

learning atmosphere and employees given overall rating for training and development programmes. Sthapit (2012) pointed out that the strategic human resource development factors affecting the evaluation of induction training effectiveness in Nepali banks. The study was based on the survey which was conducted during Feb-March 2012 on 104 low and middle level managers of Nepali development banks established from June 2001 to June 2010. The study revealed that induction training as most effective in terms of learning and least effective on the behavior change criterion. Purohit (2012) studied the existing policies practiced in co-operative banks to appraise the level of HRD practices, to assess the satisfaction level of employees about HRD practices particularly Training and development & Reward and recognition of employees. In the present study structured questionnaire via in-depth personal interviews is used to collect primary data. From large number of banks in Pune region 16 are selected for the study. Information was collected from 30 employees of different level. The study adopted random sampling with regard to the selection of cooperative banks. The study revealed that training helps employees to gain better understanding in the area of Job and this will enhance their stock of knowledge. Extensive training providing the continuous development, such as on-the-job training, training programmes and workshops can be a driving factor for the activities in the firm. The present paper also suggests the ways & means by which the selected co-operative banks can improve their high performances of work practices. Srimannarayana M. (2011) in his study found that Training and Development is very important component in the modern Human Resource Management and the scope of training and development vary from one organization to another. The present study is based on primary data. Data is collected from 105 HR/Training professionals working in manufacturing, IT/ITES and service sector with a minimum experience of three year in their respective organization in the functional area of training and development. The study revealed that more than 75% of respondents have believed that performance improvements made because of training is an extremely valuable measure and 70.48% have believed that transfer of learning is extremely important. Almost (95.24%) respondents have mentioned that they collect feedback of the participants after completion of the training programme routinely. There is a gap between the measures that that are used actually in assessing training and development and HR/Training professionals do not have control over data that is required for measuring training and development. Mohanty (2011) explained how Liberalization, Privatization and Globalization have changed the scenario of corporate world and holds for us many challenges. In



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this connection, the development of human resources is putting newer challenges in business world. New skills and abilities are needed to face these challenges and it is possible by providing Training. Training is the strong foundation of highly skilled and motivated human resource. So, training is one of the most important tools in Human Resource Development effort to improve overall performance of an organization. Effective and suitable training interventions can bring improvements and impact in the working of organization significantly which help employees to adopt new work practices for the success of business. Through training an organization go green by making employees more effective and productive. Nagar (2009) study the effectiveness of training programmes being conducted by the commercial banks in public as well as in the private sector. The area of study is limited to the staff training centers of State Bank of Bikaner & Jaipur and The Bank of Rajasthan Ltd. The data is collected through a structured questionnaire containing several questions relating to various aspects of training programme. The focus of the study is mainly the opinions of the trainees regarding various aspects of training like course duration, library facilities, trainer, teaching & computer aided programme and other infrastructural facilities and the calculated t values are less than table value of t, hence null hypothesis is accepted or hence there is no significant difference in the opinion of respondent at the two staff training centers. Onattu (2005) explored that the need for qualified and trainable employee is recognized as an important factor to compete in the global market. This study was conducted to generate information that can be used by industry, policy maker and the consultants to develop appropriate training initiatives. The present study was based on primary data which collected with help of questionnaire filled by 50 respondents. Raju (2005) conducted an opinion survey on the various aspects of training like managements attitude, selection process, quality of training, impact of training on productivity & individual and post-training assessment in different categories of banks in Coimbatore. A questionnaire was formulated comprising various aspects of training and opinion on the statements was sought from 154 employees of 24 banks in Coimbatore. OBJECTIVES

1. To study existing status of training and development programmes banks for their employees.

2. To examine the effectiveness of training and development programmes for employees in fulfillment of their duties.

RESEARCH METHODOLOGY Present research paper is of descriptive type and based on primary data collected through questionnaire filled by the bank employees. The secondary data includes reference books, journal, research papers and internet. Random sampling of 40 respondents from employees from different banks like SBI, Oriental Bank of Commerce and Punjab National Bank located in urban area of Kurukshetra. ANALYSIS AND FINDINGS

Table No. 2

Statements %Response of employees

Induction training is given adequate importance.

86% Very Good

Training programmes are well planned.

89% Very Good

Norms and values of the organization are clearly explained to new employees during induction training.

71% Very Good

Training programmes are periodically reviewed and improved.

90% Very Good

Employees acquired technical knowledge and skill through training.

80% Good

Training and development is based on genuine needs.

79% Good

Employees participate in determining the training needs.

65% Good

Training and development (T&D) increase the skill of employees.

89% Very Good

T&D enhance the quality of services being performed by employees.

76% Very Good

T&D satisfy the ego of employees. 79% Very Good T&D enhance the efficiency and effectiveness of the work being performed by employees.

78% Very Good

T&D minimize the faults in operations.

81% Very Good

T&D improve the leadership and managerial skills.

79% Very Good

T&D reduce the stress level of employees.

73% Very Good

Training and development stabilize the organization.

78% Very Good

T&D help employees in promotion and other monetary benefits.

72% Very Good



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CONCLUSIONS There is enough evidence to show that employees who were trained on a regular basis are the ones who provide a higher quality services to the customers. To develop an integrated and proactive training and development strategy there is requirement of coherent corporate culture rather than ad-hoc programs. In a service oriented industry such as banking, people are among the most important assets and a bank must efficiently manage its employees during every phase of employment in this competitive arena. It is concluded that public sector banks undertake training and development programmes for their employees to increase their efficiency. Banks provide training programmes to enhance their knowledge and skills to satisfy the customers. Growth of banking sector in India is the result of skilled manpower which is the outcome of training and development. REFERENCES Books

[1] Kunjukunju Benson (2008), Commercial Banks in India New Century Publication, New Delhi.

[2] Jankiraman B. (2009),Training and Development Biztantra.

[3] Sangwan D. S. (2009),Human Resource Management in Banks National Publishing House.

[4] Jyothi P. and Venkatesh D.N. (2006),Human Resource Management Oxford University Press.

[5] Pande Sharon and Basak Swapalekha (2012), Human Resource Management Pearson.

[6] Raj Aparna (2011),Training and Development Kalyani Publisher.

[7] Haldar Uday Kumar and Sarkar Juthika (2012),Human Resource Management Oxford University Press.

[8] Rao P.L. (2004),Human Resource Management Excel Publishing House.

[9] Shah et.al.(1984))Human Resource Management in Banking Industry South Asian Publisher New Delhi,.

Journals [10] Jadhav Ajit (2013),A Study on Training and

Development in Indian Banks, ABHINAV National Monthly Refereed Journal of Research in Commerce & Management, Vol.1, No.1, pp34-39.

[11] Ramakrishna G., Kamleshwari, Kumar, M. Girdhar, Krishnudu CH. (2012),Effectiveness of Training and Development Programmes- A Case Study of Canara Bank Employees in Kurnool District, International Journal of Multidisciplinary Research, Vol.2 No 4. Pp 150-162.

[12] Purohit Manisha (2012), An Evaluation of HRD Practices Followed in Co-operative Banks in Pune Region, ACADEMICIA: An International Multidisciplinary Research Journal, Volume 2, Issue 8, pp 186-195.

[13] Gopal (2008),Effectiveness of Executive Training Programs, The Indian Journal of Commerce, Vol.6, No.3, pp143-150.

[14] Pathak Neetu (2008), Corporate Training Programme- An Effective Instrument for Organization, The Indian Journal of Commerce, Vol.61, No.3, pp113-119.

[15] Saharan Teena (2010), Training for Employees Major Constraints Automobile Industries are Facing, Optimization, Vol.3 No.1, pp.88-99.

[16] Nagar Vaishali (2009),Measuring Training Effectiveness, The Indian Journal of Commerce, Vol.62, No.4, pp.86-90.

[17] Srimannarayana M. (2011), Measuring Training and Development, The Indian Journal of Industrial Relations, Vol.47, No.1, pp. 117-125.

[18] Sthapit Arhan (2012), Strategic factors in evaluation of Induction Training Effectiveness an exploratory study of Nepali bank managers EXCEL International Journal of Multidisciplinary Management Studies, Vol.2. Issue 8, pp.16-32.

Websites

[19] www.iba.org [20] www.rbi.org [21] www.bis.org

APPENDIX

Questionnaire on Training and Development in Banks Dear Respondents, Kindly go through this questionnaire and you are requested to answer by placing a tick( ) mark in the appropriate response column on the right side of the questions . Tick the option Poor (1) Fair (2) Good (3) Very good (4) Excellent (5) This information is meant for only research purpose and I assure that the response recorded by you will be kept strictly confidential.



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1. Name of the employee:.. 2. Designation: 3.Department:

4. Course attended:.. 5. Duration: 6.From:. 7.To:..

Tick the appropriate box: Poor Fair Good Very good Excellent (1) (2) (3) (4) (5)

1. Induction training is given adequate importance. (1) (2) (3) (4) (5) 2. Training programmes are well planned. (1) (2) (3) (4) (5) 3. Norms and values of the organization are clearly

explained to new employees during induction training. (1) (2) (3) (4) (5) 4. Training programmes are periodically reviewed and improved. (1) (2) (3) (4) (5) 5. Employees acquired technical knowledge and skill through

training. (1) (2) (3) (4) (5) 6. Training and development is based on genuine needs. (1) (2) (3) (4) (5) 7. Employees participate in determining the training needs. (1) (2) (3) (4) (5) 8. Training and development (T&D) increase the skill of

employees. (1) (2) (3) (4) (5) 9. T&D enhance the quality of services being performed by

employees. (1) (2) (3) (4) (5) 10. T&D satisfy the ego of employees. (1) (2) (3) (4) (5) 11. T&D enhance the efficiency and effectiveness of the

work being performed by employees. (1) (2) (3) (4) (5) 12. T&D minimize the faults in operations. (1) (2) (3) (4) (5) 13. T&D improve the leadership and managerial skills. (1) (2) (3) (4) (5) 14. T&D reduce the stress level of employees. (1) (2) (3) (4) (5) 15. Training and development stabilize the organization. (1) (2) (3) (4) (5) 16. T&D help employees in promotion and other monetary benefits. (1) (2) (3) (4) (5)

Thank you for your kind cooperation.

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