Banking on HR Capital

8/2/2019 Banking on HR Capital

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Banking On HR Capital:

Value Addition via Balance Scorecard

By

Ms. R. Marie Anne

Doctoral StudentLIBA, Chennai.


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Banking Today


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Human Capital

Human capital is the stock of competencies,

knowledge and personality attributes embodied

in the ability to perform labour so as to produce

economic value.

Competencies.

The HRs role in mapping competencies.


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The Balance Scorecard


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The Balance Scorecard in Banking

Vision, Mission & Values:

- Communication, the core challenge.

- Cultural artifacts- Posters, signboards, badges, neck ties, circulars etc.

- Cups & t-shirts with inscription of targets.

- Simple understandable terms

- Facilitating collective ambition


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Financial Perspective

Dividing markets metro, urban, semi urban, rural based

on required breakeven for optimum business.

Growth measures income, deposit, advances, control &

efficiency.

Achievements beyond targets are rewarded.

Control & efficiency sales initiatives, rectification of

audit comments, customer service, compliance,employee involvement & employee relation,

Maintenance of premises/Signboard and Cash & Bank

Balance.


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Identifying KPAs and setting goals help individual

employees know the banks expectations better.

Quarterly review and rating, feedback, skill/inventory

training, mentoring and performance counseling helps

achieve the set goals effectively.

Behavioural competencies such as customer focus,

financial acumen, result orientation, self motivation;

initiative and drive, emotional quotient, creativity and

problem solving, decision making, communication,

interpersonal competence and teamwork and

collaboration has to be measured.


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internal campaigns for different products with incentives.

For e.g.

POS campaign, SIP campaign with individual and branch

incentives, Best ATM campaign, Gold loan campaigns,

Trip to foreign, etc


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Customer Perspective

two perspectives - the operational and the analytical.

customer databases are managed by softwares such as

PIVOTAL, SAP, SIEBEL, AMDOCS, SALES FORCE. Royal Bank

of Canada, Union Bank, Federal Bank, ICICI, KVB, HDFC,

Yes Bank are some banks that have a strong Customer

relationship management system.

personalized banking - 20-80 concept.


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Employee Learning and Growth Perspective

sound knowledge management ethics policy of the bank

Intranets

Announcements, notices, employee information, branch

information, market view, daily news inside and outsideorganization, System support, Rates of interest, birthday of

employees etc are common information shared through the

intranet.

Weekly internal publications, CD containing manual of policies,

schemes and other publications since the inception of the bank,etc facilitate employees to know well about their organization

the recent changes they need to adapt to e.g. cheque validity to

be 3 months from April 1st 2012.


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Rewarding employees at the right moment facilitates

more learning and growth.

Getting older employees to adapt to technology is

another challenge.

Interaction with the top management on a frequent basiswill also help employees express their views and feel

respected.

Socializing with employees family

ASK Attitude, Skills, Knowledge

ABC Awareness, Belongingness, Commitment


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Internal Business Process Perspective

customer centric approach rather than product centric

approach

Organizational development initiatives like organizationalrestructuring, influencing the organizational culture, the core

values and ethos of the organization etc that facilitate

improvement in performance in a scientific manner through

action research approach.


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An organization culture that fosters innovation is theneed of the hour.

Identifying new ways of effectively meeting customer

needs is essential to take the business to greater heights.

Even the smallest idea should to recognized.

A collaborative approach will surely facilitate proactive

ways of responding to change.

satisfied employees have the most satisfied customer


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Q& A

Documents

Banking on HR Capital