HRM in Banks Final

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CHAPTER 1

INTRODUCTION TO

HUMAN RESOURCE

MANAGEMENT

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Introduction to Human Resource Management

Organizations are made up of people and function through people.

Material resources such as money and materials are utilized through people for different purposes. People constitute the most significant

resource of an organization. Human resource is most active, productive

and sensitive. Employees have capacity to think and act or react

accordingly. This source needs delicate handling so that it will be useful

for the progress and prosperity of an organization.

In the present world, all organizational resources (human and material) are

important for achieving organizational objectives. Naturally, their

effective utilization is necessary. Here, organizations give specialattention to human resources which includes manpower working at

different levels in the organization. The employees need to be efficient,

highly trained and professional co-operative and loyal to the organization.

They are expected to make positive contribution in achieving

organizational objectives. Such useful labour force will not developed


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automatically but needs to be nurtured through special efforts in the form

of training, career development, cordial industrial relations, participative

management and so on.

Human Resource Management (HRM) is concerned with the manpower

employed in an organization. It is that part of management which is

concerned with people at work and their relationships within the

organization. HRM is one important branch of management as it touches

all other aspects of business management. HRM is concerned with human

resource planning, recruitment and selection of manpower, training and

development of manpower, compensation payment to manpower and so

on. In this introductory chapter, we propose to discuss the nature and

scope of human resource management.

MEANING OF HRM CONCEPT OF HRMIWHAT

IS HRM?

Personnel refers to the employees working in an organization at different

levels. Personnel management (also called HRM) is that aspect of total

business management which deals with human relationships within an

organization. Personnel represents human resources which is different

from material resources. It is rightly said that organizations are not mere bricks, mortar, machineries or inventories. They are people. It is the

people who staff and manage organisations. Human resources are the

people and their characteristics at work. They are human factors

inbusiness.

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.

Human resource is the most productive and most versatile. In addition, the

manpower in an organisation needs human treatment. Employees have a

capacity to feel, think and even to react. Management has to deal with theemployees in a careful and tactful manner. Material resources such as

land, machines, raw materials, equipment, etc. are easy to manage. This is

because they have no capacity to feel or think or react. This is not the case

with human resource i.e. manpower. For example, you may use a bad

word for a machine or you may put your leg. on the machine . but you

must not abuse a worker or put your leg on his head. This is because he

has a capacity to feel, think and even react quickly in the same manner or

even in a more challenging manner.

In production activity, men and machines are important. However, man

behind the machine is more important as he is a human being. Man and

machine are not on par and must not be treated in the same manner. This

is because of all the resou:rces manpower is the only resource which does

not depreciate, with the passage of time. According to Peter F. Drucker,

"the prosperity, if not the survival of any business depends on theperformance of its managers of tomorrow. /IThe material resources alonewill not help the organisation to achieve its objectives. For this, effective

coordination and utilisation of material and human resources are required.

This suggests the importance of human resources.

Human resources of an organisation function at top management, middle

management, supervisory management and at operative management

levels. Human resources are most vital assets of. an organisation. They

can be used as a means for developin.g competitive. advantages. In

addition, manpower /people in the organisation act as Source of creativity.

They can produce unlimited ideas which can be used for the progress

a..'1d prosperity of an organisation. This suggests the signific;mce of

human resources which need effective utilisation through carefulmanagement.

The human resource is very important and useful in every organisation. It

should be nurtured and used for the benefit of the organisation. This is a

challenging job before persOlmel manager / management. The


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organisation can make rapid progress only when the employees are

efficient, satisfied and co-operative. On the other hand, the organisation

will have to face various problems and difficulties, if the employees are

not co-operative but hostile. This indicates that human resource is moststrategic and critical determinant of growth of a business unit. Every

organisation needs loyal, efficient and satisfied labour force. For this,

adequate attention should be given to HRM.

HRM is a management function that helps managers to recruit, select,

train and develop employees for an organisation. It is concerned with the

people's dimension in organisations.

DEFINITIONS OF HUMAN RESOURCEMANAGEMENT:

(1) According to Scott and others, "Human resource management is thatbranch of management which is responsible on a staff basis forconcentrating on those aspects of relationship of management to

employees and employees to employees and with the development of the

individual and the group. The objective is to attain maximum individualdevelopment, desirable working relationship between employers and

employees and employers and employees, and e ffective moulding of

human resources as contrasted with physicalresources ",

(2) According to National Institute of Personnel Management of India,"Human resource management is part of management concerned with

people at work and with their relationships within the organization. It

seeks to bring together men and women who make up an enterprise,

enabling each to make his own best contribution to its success both as anindividual and as a member of a working group ".

Edwin Flippo defines HRM as -planning, organizing, directing, controlling of procurement, development,compensation, integration , maintenance and separation of human

resources to the end that individual, organizational and social objectives

are achieved.

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CHAPTER 2

OVERVIEW OF

HRM


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FEATURES OF HRM:

1) Managing people:

HRM relates to managing people at work. It covers all levels of

personnels and their needs, expectations and so on. In this sense, it is a

comprehensive function and is basically concerned with managing people

at work. HRM has universal existence and application as it is applicable

to business and other organisations - government, educational, social, and

religious and so on.

2) People-oriented process:

HRM is concerned with employees, both as individuals as well as a group.

The aim of HRM is to get better results through their involvement,

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motivation and co-operation. It is a people-oriented process of bringing

people and organisations together so that the goals of each are met

properly. Acquisition, development, motivation and maintenance of

manpower /human resources are four basic functions in the HRM process.

3) Develops employees' potentialities:

HRM is concerned with helping the employees to learn and develop their

potentialities to the highest level for their benefits as well as for the

benefits of their organisation. It is a manpower / employees development

oriented subject.

4) Integral part of organisations:

HRM is an integral part of all organisations. It is concerned withrecruitment, selection and development of manpower available.

5) Continuous activity:

HRM is a continuous activity in an organisation as personnel problems

continue to exist as long as employees are working in an organisation.

They need constant attention as they may disturb normal working of an

organisation, if neglected.

6) Securing employee co-operation:

HRM aims at securing willing co-operation of employees for achievingorganisational objectives. This is natural as industrial and other activities

can be conducted only with the support of human resources. HRM aims

at developing and maintaining team spirit at the organizational level. Such

team spirit brings success to the organisation.

7) Future-oriented:

HRM is concerned with helping an organisation to achieve its objectives

in the future by providing competent and motivated employees. It makes

an attempt to integrate individual objectives of employees with theorganisational objectives. HRM provides long term benefits to

individuals. (employees), organisations and the society at large.

8) Challenging function/activity:

HRM is a challenging function/ activity as it deals with the


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people/employees who are always unpredictable. Employees have

emotions and sentiments and cannot be treated like machines. It is

necessary to handle them and activities related to them tactfully. In short,

HRM brings challenges before HR manager from time to time. It alsoprovides opportunities to organisations to grow through the efforts of

efficient and devoted manpower. HRM is a key element in dealing with

the economic, technological and other problems faced by business

organisations. Such problems can be solved with the help of devoted team

of employees.

SCOPE/FUNCTIONS OF HRM

1. Human resources planning:

Human resource planning or HRP refers to a process by which the

company to identify the number of jobs vacant, whether the company has

excess staff or shortage of staff and to deal with this excess or shortage.

2. Job analysis design:

Another important area of HRM is job analysis. Job analysis gives a

detailed explanation about each and every job in the company. Based on

this job analysis the company prepares advertisements.

3. Recruitment and selection:

Based on information collected from job analysis the company prepares

advertisements and publishes them in the news papers. This is

recruitment. A number of applications are received after the advertisement

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is published, interviews are conducted and the right employee is selected

thus recruitment and selection are yet another important area of HRM.

4. Orientation and induction:

Once the employees have been selected an induction or orientation

program is conducted. This is another important area of HRM. The

employees are informed about the background of the company, explain

about the organizational culture and values and work ethics and introduce

to the other employees.

5. Training and development:

Every employee goes under training program which helps him to put up a

better performance on the job. Training program is also conducted for

existing staff that have a lot of experience. This is called refresher

training. Training and development is one area

were the company spends a huge amount.

6. Performance appraisal:

Once the employee has put in around 1 year of service, performance

appraisal is conducted that is the HR department checks the performance

of the employee. Based on these appraisal future promotions, incentives,

increments in salary are decided.

7. Compensation planning and remuneration:

There are various rules regarding compensation and other benefits. It is

the job of the HR department to look into remuneration and compensation

planning.


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8. Motivation, welfare, health and safety:

Motivation becomes important to sustain the number of employees in the

company. It is the job of the HR department to look into the different

methods of motivation. Apart from this certain health and safety

regulations have to be followed for the benefits of the employees. This is

also handled by the HR department.

9. Industrial relations:

Another important area of HRM is maintaining co-ordinal relations with

the union members. This will help the organization to prevent strikes

lockouts and ensure smooth working in the company.

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

Procurement means acquiring the manpower required by an organisation

from time-to-time. For this manpower planning is necessary. In fact,

manpower planning is one major function of HR management. Suchprocurement will be from the employment market. The basic principle in

procurement for the right job". The procurement function includes

manpower planning and forecasting, recruitment, selection, appointment,

placement and induction of employees so as to have a team. of efficient

and capable employees for the benefits of the organisation. Even

promotions and transfers_are covered by this broadpersonnel funding.-

At present, scientific methods are used for recruitment! selection of

capable manpower for the Benefit of the organisation .

11. Development of manpower:

Development of manpower (human resource development) means

planning and execution of the training programmes for all categories of

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employees in order to develop new skills and qualities required for

working at the higher level. Manpower development is possible through

training and career development programmes and not simply by offering

attractive wages to workers. Such manpower development (possiblethrough' systematic training programmes) is required for meeting the

growing and changing needs of manpower along with the expansion and

diversification of business activities. Executive development programmes

are introduced for the benefit of higher level managers. Promotions and

transfers are possible when manpower development programmes are

introduced regularly. Similarly, future manpower requirement will be met

internally through HRD programmes.

This suggests the importance/significance of human resourcedevelopment. It aims at educating and training employees for the

improvement of overall performance of an organisation. HRD

programmes are for education, training and development of existing

manpower in an organisation. This is for facing new problems and

I2hallenges likely to develop in the near future.

12. Performance management and compensation payment to

manpower employed:

Performance management involves performance planning, performance

appraisal and performance counselling used for various purposes. One

more function of personnel management is to pay compensation (in

monetary form) to employees for the services rendered. For this, a fair

system of remuneration payment (wages and salaries' needs to be

introduced. Remuneration to employees should be attractive so that the

labour force will be satisfied and disputes, etc. will be minimized. Fair

wage payment acts as a motivating factor in compensation management

13.Integration of interests of manpower and the organisation:

Manpower is interested in wage payment while organisation is interested

in higher profits, consumer loyalty, market reputation and so on.

Personnel management has to reconcile the interests of the individual


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members of the organisation with those of the organisation.

OBJECTIVES OF HRM

The primary objective of HRM is to ensure the availability of a competentand willing workforce to an organisation. In addition, HRM objectives are

four fold- societal, organisational, functional and personal.

The objectives of human resource management in any industrial

organisation can be summarised as under:

(1) To attain maximum individual development (self development) of the

members of an organisation and also to utilise available human resources

(with the organisation) fully and effectively.

(2) To mould effectively the human resources.

(3) To establish desirable working relationships between employer and

employees and between groups of employees.

(4) To ensure satisfaction to the workers so that they are freely ready to

work.

(5) To improve the service rendered by the enterprise to the society

through better employee morale which leads to more efficient individualand group performance.

(6) To establish and maintain a productive and self respecting

-relationship among all the members of an organisation.

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(7) To ensure the availability of a competent and willing workforce to the

organisation for its progress and prosperity.

(8) To help organisation to achieve its goals by providing well trained,

efficient and properly motivated employees.

(9) To maintain high morale and good human relations within the

organisation for the benefit of employer and employees.

(10) To secure the integration of all the individuals and groups with the

organisation by reconciling individual/group goals with those of an

organisation.

MODERN DAY CHALLENGES BEFORE HRM

MANAGER:

Management itself is a challenging job. New problems and challenges

developed from time to time due to changes in the composition of business environment. This is applicable to production, marketing,

finance and other aspects of business. Every manager has to face such

challenges of change in relation to his area of operation. The same is the

case with HR manager who looks after manpower employed in his

organisation. It is equally true. to say that the' area of HR management is

full of challenges in the new millennium. The future has many challenges

for the managers of tomorrow. In fact, the modem day / current challenges

before HR Manager and HRM are identical. Modem day challenges

before HR managers are more complex due to the process of liberalisation

and globalisation. The overall industrial situation is fast changing. Labourlaws are amended and liberal treatment is offered to industrial units

operating in special economic zones (SEZs). In addition, multinationals

are expanding their activities in India. All such changes or rapidly

changing scenario are introducing new . elements in the field of human


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resource management. As a result, the challenges before to-day's HR

manager are extremely delicate and difficult.

Modem day or current challenges faced by to-day's Human Resource

Manager are as explained below:

(1)Challenges relating to recruitment, selection and development of

manpower: HR manger is concerned with recruitment, selection, training

and development of manpower. Here, he faces many challenges. For

example, job seekers are' many but really capable persons (employable)

are few and are in great .demand in the employment market. How to get

most suitable persons and how to make them stable in the organisation is

one challenge before the personnel manager. Similarly, arrangements for

manpowerdevelopment programmes are difficult due to inadequate supply of

qualified instructors, financial constraints and inadequate co-operation of

employees in the training programmes.

(2) Challenges relating industrial relations: HR manager has to face

many challenges in the area of industrial relations. Cordial industrial

relations are difficult to maintain due to excessive demands of employees

and lack of constructive approach on the part of trade union leadership.

Industrial disputes developed even due to minor causes and disturb theorderly functioning of the industrial unit. How to maintain cordial

industrial relations over a long period is one important challenge before

HR manager.

(3)Challenges relating to provision of welfare facilities: HR manager

has to look after the provision of welfare facilities to employees. He has to

provide safety and security at the work place. This responsibility also

poses problems from time to time. Employees demand additional welfare

facilities. They also raise complaints regarding inefficient administration

of welfare facilities. There are financial constraints while spending money

on welfare activities. This makes the provision of welfare facilities

complicated. This is one

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Challenge before a HR manager. .

(4)Challenges relating to manpower management: HR manger has to

look after certain functional activities such as promotions and transfers,administration of grievance procedure, execution of labour legislations

and so on. This work is also complicated and leads to dissatisfaction

among the employees. Charges of partiality and favouritism are made as

regards promotions and transfers. It is necessary to introduce fair

personnel policies so as to avoid dissatisfaction among the employees.

(5) Challenges relating information collection, storage and. ready

availability when required: HR department has to collect and store lot of

information regarding the manpower employed in the organisation. Suchinformation may be required urgently and also in the consolidated form.

For this,

computer based information system needs to be introduced. How to

introduce such information system is one challenge before a present day

HR manager.

(6)Challenges relating to research on personnel management:

HR manager has to undertake research activities in personnel probleJJ1s,

policies, procedures and practices. Such research is useful for framingpersonnel policies for the future period. How to conduct such research

activities within the resources and manpower available in the personnel

department is one challenge before HR manager.

(7)Challenges relating to expansion, modernisation and automation:

Along with the expansion of business, automation and modernisation of

many activities will be necessary. This may lead to retrenchment and the

problem of surplus manpower in the organisation:- The employees and

trade union may protest against such policies and may adopt an attitude ofnon-co-operati9n. Here, the personnel manager will have to persuade the

employees to identify themselves with the organisation and its goals. He

will have to act as an agent. of change and also sensitive to the hardships

of employees. This is a new challenge before HR manager.


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(8)Challenges relating to collective bargaining and other techniques

of labour participation in management: HR manager has to play an

important role in the process of collective bargaining and workers'

participation in management. Both the activities are important but difficultto introduce due to the negative attitude of employees and their trade

union leadership. How to secure co-operation 'of employees and their

unions in this regard is one challenge before the present day HR manager.

(9)Challenges relating to the execution of personnel policies:

Execution of various personnel policies is the responsibility of personnel

manager. Such policies need to be fair and also acceptable to employees

in general. In the absence of their support, new problems, disputes and

grievances are likely to develop. Here, the challenge before HR manageris

how to prepare fair personnel policies and how to secure cooperation~ of

employees in their execution.

(10) Challenges relating to trade union activities: The job of HR

manager relates to people employed in the organisation. He has to manage

them properly for the benefit of the organisation. However, human

behaviour is always uncertain. Employees may not appreciate personnel

policies which are actually favourable to them. They may come under theinfluence of trade union leaders or political leaders and oppose

management as regards certain policies and programmes. This leads to

new labour problems which are difficult to deal with. In short, HR

manager has to face new challenges in the normal course of his

functioning.

ROLE OF HR MANAGER:

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The HR manager is a generalist who administers and coordinates

programmes cutting across functional areas. He is usually a top-ranking

person at a plant or facility and, as such, is expected to know about allareas of HRM. This is because the HR manager has to oversee the

implementation of HR policies at the facility and advice line managers on

HR issues.

The HR manager must be fair and firm, tactful, sympathetic and

considerate. He needs knowledge of labour laws in order to play his role

in an orderly manri.er. HR manager needs both managerial qualities

(intelligence, emotional stability, analytical qualities, etc.) and job related

qualities (communicative quality human relations quality, technicalquality, etc.) for showing good/promising performance.

We have already noted the challenges before HR manager. This suggests

that his position and role in the organisation is positive and crucial. He is

on par with other managers. However, he is closely connected with all

other departments as he is concerned with the HR policies which remain

uniform at the organisational level.

The status of HR department in the total organisational structure depends

on whether the unit is small or large. In most of the small organisations,

there is no separate department to coordinate the activities relating to

personnel manpower employed.

ROLE OF HRM IN BANKING

The banking industry is a highly regulated powerhouse that

stabilizes the economic environment of nations around the world. Banksstore sensitive, personal information about their clients, and commercial

banks often house more valuable inventory -- cash -- than other retail

operations. Bank employees, from executives to tellers, must have a

higher level of integrity and trustworthiness than employees in most other

industries, making the role of HR in banking that much more important.


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Applicant Screening

Certain jobs do not really require a thorough background check, but

any job in a bank definitely does. Human resource departments in banks

must go the extra mile to uncover the criminal and financial history of job

applicants, for the safety of their clients and their organization as a whole.

Banks are highly unlikely to hire candidates with financial fraud on their

records, for example, due to the sheer weight of temptation a position in a

bank would place on someone with that kind of history.

Bank Security

Human resources departments must design and monitor work

processes to reduce opportunities for internal theft and collusion. HRpolicies separate cash receiving, storage, processing and disbursement,

and record all activities via video surveillance. In the event that an

employee attempts to steal from a bank, the HR department must handle

the legal paperwork and administrative processes required by court

proceedings.

Pay Decisions

As with other industries, HR professionals in banks have a hand in

making decisions for pay raises and promotions. Bank workforces areunique in that they often have two methods of paying employees: salaries

for back-office and other personnel, and commissions for sales

employees. Promotion decisions for salespeople selling loans and other

financial products differ from decisions to promote administrative staff.

Banks' HR departments must manage both equitably and strategically to

develop the workforce.

Executive Recruitment

The banking industry is highly competitive, and banks constantlynavigate a legal minefield that can devastate companies that step out of

line. Finding the right executives is crucial in any industry, but especially

one in which competition is so fierce and legal compliance so important.

Human resources professionals in banks must go the extra mile to recruit

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the best executive talent in the banking field, allowing their organizations

to thrive and grow into the future. Human resources departments in

corporations must gain approval of the board of directors before bringing

someone in to fill an executive spot.

CHAPTER 3

TRAINING AND

DEVELOPMENT


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TRAINING AND DEVELOPMENT

INTRODUCTION:

The concept of human resource development (HRD) has acquired special

significance in the present. rapidly changing global economy. HRD may

be defined as a process of increasing knowledge, skills and capability ofpeople/employees. Such HRD is essential at the national level for rapid

economic/industrial progress. In the present world, manpower is treated as

an asset only when such manpower ~s educated, skilled, well trained and

capable to accept new challenges from time to time. A country can make

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steady progress only when its human resources are well trained and well

developed. The same rule of HRM is applicable to business enterprises.

They need well trained, matured, motivated and loyal manpower for

stability,. growth and competitive position. Business organisations give special

attention to the development of human resources. They provide training

and self-development facilities/ opportunities to workers, supervisory staff

and top level managers. Huge money is spent for this purpose which is a

type of investment for HRD. At the enterprise level, employee training

(for operative staff) and executive development (for supervisory staff) are

two main areas of human resource development. Training and

development constitute an ongoing process in many organisations and this

suggests growing importance of training and development. In this chapter,we propose to discuss different aspects of employee training and

development.

CONCEPT OF TRAINING (WHAT IS TRAINING?):

Training comes next to recruitment, selection and -placement. It normally

relates to the job assigned and is in the form of guidance/instructions for

performing the job safely and efficiently. It is necessary and useful in the

case of all categories of operative employees, supervisory staff and

managers. Training raises their skills and creates confidence and ability to

perform the job efficiently. It also facilitates self-development and career

development of employees. In fad, the main purpose of training is to

develop the human resources within the organisation. The

resources/talents within an employee are in a dormant form which are to

be activated through the process of training. In brief, training is the

watchword of present dynamic business world. Training is necessary due

to technological changes rapidly taking place in the industrial field. New

machines, new methods and new techniques are introduced in theproduction, marketing and other aspects of business. Training is a must

for using new machines and new techniques. It is a process of increasing

knowledge' and skills of doing a particular job. Its purpose is to raise the

competence of an employee.


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Training is normally regarded as a short term process by which non-

managerial! operative personnel acquire the technical knowledge and

skills for efficient conduct of jobs assigned. It leads to efficient and

skilled behaviour of employees. Such training i.s necessary for raisingoverall efficiency of an organization and also for achieving organizational

objectives. Training given to managers is regarded as management

development. Such management development is a continuous as well as

long term process and is useful for creating a team of capable managers

for the benefit of an organization. The term development is used in the

case of training of managers.

Training of employees is also essential along with the introduction new

production techniques. Industrial training is for

a short period but has wide coverage. It relates to knowledge, information,technical skills, social skills, administrative skills and conceptual skills

and finally positive attitude building. Training is for developing overall

personality of an employee. It also creates positive attitude towards fellow

employees, job and the organisation where he is working. Training is the

responsibility of the management as it is basically for rising the efficiency

and productivity of employees. Expenditure on training and development

is an investment ,for manpower development and gives rich dividend to

employees and organisation in the long run. It makes organisation capable

to face new challenges from timeto-time, There are different types of

training. They include: Induction/orientation training, job training,training for promotion, safety training, refresher training

and remedial training.

DEFINITION OF TRAINING:

(1) According to Edwin Flippo, training is "the act of increasing theknowledge and skill of an employee for doing a particular job."

(2) According to Wayne Cacio, "Training consists of plnn~1ed programs

undertaken to i:nprove employee knowledge, skills, attitudes, and socialbehaviour so that the performance of the organisation improves

considerably. "

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MEANING/CONCEPT OF DEVELOPMENT :

Managers/ executives constitute the most valuable assets of anorganisation. The success and growth of an organisation depend on the

calibre and performance of managers. Systematic education and training

need to be given to them so as to raise their capacity to face adverse

situation and new challenges. For this, mail.ao-ement

development/executive development programmes are n:cessary and

useful. In addition to training for operative staff, an organisation has to

take steps for training programmes for supervisory staff and managers.

Such training programmes are called management! Executive

development programmes. Various methods/techniques are used under

management development for improving the skills, behaviour andperformance of managers. Such development programmes are necessary

as every organisation needs a team of highly qualified and trained

managers at the higher management levels in order to frame and execute

its business plans and policies. For this, every organisation, .particularly

large as well as progressive, has to take suitable steps for management

development. In other words, it has to use different training methods for

training its executives. Here, multi-skill training facilities (for developing

technical skills, managerial skills and conceptual skills) will be offered to

trainee officers (engineers, etc.), supervisory staff and managers workingat the higher levels. Continuous efforts for management. development are

essential in the present highly competitive business world. Management

development programme (also called Human Resources Development

(HRD) programme) acts as a key factor for the survival and growth of a

business unit.

Management development consists of all means by which executives

learn to improve their performance. It is designed to improve the

effectiveness of managers in their present jobs and to prepare them for

higher jobs in the future. It prepares managers to accept higher

responsibilities and develops responsible leadership within theorganisation. Management development facilitates replacement of senior

managers (on recruitment) by well trained and competent managers

available within the organization. Development aims at helping the

managers to realise their full potential. Management development is a


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continuous process as there is no time limit for learning to occur.

Secondly, management development is based on the assumption that there

always exists a gap between a manager's existing performance and his

potential for the performance. The untapped potential can be convertedinto actual performance through management development programmes/

process. Management development process involves stresses and strains.

It seldom takes place in complete peaceful atmosphere.

METHODS OF TRAINING

MANAGERS/METHODS OF MANAGEMENT

DEVELOPMENT:

Formanagement development or for training managers, several methods I

techniques are used.. These methods can be divided into two broad

categories, namely, (i) Internal or on the job methods or In-company

programmes and (ii) extremely or off the job methods or out company

(A)Internal Training Methods/On-the-Job Methods:

(1)Coaching and Counselling:Coaching: On the job' coaching is a method by which a superior teaches

job knowledge and skills to a subordinate manager. He briefs the trainee

executive about ~hat IS expected of him and how it can be done. The

su.peno~ also checks the performance of his subordinate and gU1d~s hIm

to improve his deficiencies. The superior acts as a friend and guide of his

subordinate.

Coaching method favours learning by doing. Its effectiveness depends on

the capacity and the interest taken by the superior and also by the

subordinate. The supenor should adopt a positive approach in thecoaching process and help the subordinate in achieving self-development.

Coaching has certain' limitations. i"or example, a trainee

manager cannot develop much beyond the limits of his own superior's

abilities. Similarly, the success of coaching method depends on the

interest and initiative taken by the trainee manager.

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(2) Counselling: Under this method, the subordinate wanting advice

approaches his superior. Counselling is provided in matters relating to the

job. However, on request from the subordinate, counselling may also beoffered on matters not directly related to the job. There is two-way

dialogue between the subordinate and the superior to find solution to his

problem. Counselling provides emotional stability to traineesubordinate.

Counselling is possible in classroom methods of training which includelectures, discussions, case study and role playing. ,

(3)Understudy assignment: An understudy is a trainee manager who is

to assume the full duties and responsibilities of the position currently held

by his superior, when the later leaves his post due to retirement, transferor promotion. Here, a departmental manager (head) selects one of his

suitable subordinates to become his understudy. As an alternative, the

personnel department may make the selection of understudy. The

departmental manager will guide him (i.e. understudy) to learn his job and

deal with the problems that confront the' manager daily.

TI1.e understudy will learn the job of his superior through observation

and participation in the decision-making. He may be. given specific

problems to study and to make recommendations for solving them. The

understudy will be given wider exposure and an opportunity to develop

capacity to deal with difficult problems and complex situations.

Advantages of understudy assignment:

(a) It is a practical method emphasis, learning by doing.

(b) It relieves the superior from some of his duties and responsibilities.

(c) It avoids serious disadvantages to the organisation if the superior

suddenly leaves the job.


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Disadvantages of understudy assignment:

(a) The competition for promotion is over when the understudy is

designated.

(b) This method leads to jealousy and friction within the department.

(c) The understudy may not take adequate interest in his self-development

because of his prior selection.

(4) Job Rotation:

(5) Junior Boards: Here, a junior board of junior executives is constituted.

Major problems are analysed in the junior board which makes

recommendation to the Board of Directors. The young executives learn

decision-making skills and the Board Receives the collective wisdom of

the junior board. .

Advantages of Junior Boards:

(a) Junior Board facilitates group decision-making.

(b) It contributes to the productivity and human relations in the

organisation.

(c) It identifies executive talent.

(d) It is an economical method.

Limitations of Junior Boards:

(a) In the junior board, it is not possible to give specific attention to the

developmental needs of executives.

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(b) It follows theoretical approach to problem solving.

(c) It is not suitable to lower level executives.

(6)Delegation: Delegation is one more internal method of management

development. The performance of subordinates may not improve unless

additional responsibility and authority are delegated to them. Making the

subordinates to achieve a particular target through delegation is one way

by which subordinates will learn to grow and develop independently.

They will develop leadership qualities and decision-making skills, which

are necessary for a good manager.

(7)Appointment as 'Assistant to': A junior executive may be appointed

asIAssistant to' senior executive for the purpose of training and practicalexperience. Here, the junior executive is given exposure to the job of

senior executive and he learns new techniques while providing assistance

to his boss. This broadens his viewpoint and makes him ready for future

promotions. The superior executive also gets the benefit as he can

delegate some of his responsibilities to the assistant and also acts as guide

of his assistant.

(8) Membership of Committees: Inter-departmental committees are

normally created for bringing coordination in the activities of different

departments. Managers from different departments are taken on such

committees. Junior managers are also given membership of such

committees so as to give them a broader exposure to the viewpoints of

other departmental heads.

Ad hoc committee of executives is also constituted and is assigned a

specific problem for study. Such committee assignments offer opportunity

of training to jWlior executives, as they have to study the problem indepth and make recommendations.

(9) Project Assignment: In the project assignment method, a trainee

manager is given a project that is closely related to the work of his


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department. The project relates to specific problem faced by the

department. Here, the executive has to study the project on his own and

make recommendations for the consideration of the departmental head.

Such assignment provides valuable experience to the trainee and develops problem-solving attitude, which is one essential requirement of an

executive.

(10) Promotions and Transfers: Promotions and transfers are two more

internal methods of management development. Promotion gives an

opportunity to a manager to acquire new skills required for the job at the

higher level. It motivates him for self-improvement. Transfer also

facilitates the broadening of viewpoint required for higher positions. It

gives an opportunity to work at different positions and develop.

(B) External Methods of Management

Development/Off- The Job Methods:

(1) Universities and Colleges: The universities and colleges, now,

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provide facilities of management education. Here, education is given

through lectures, discussions, home assignments, tests and examinations.

Mumbai University has its Bajaj Institute of Management for various

management development courses. Colleges affiliated to the Universitiesalso conduct DBM, MBA and other management development

programmes for the executives from business sector. Candidates working

at managerial levels in companies are normally selected for such training

programmes.

(2) Management Institutions: Along with the universities and colleges,

there are management training institutions such as NITIE, Bombay

Management Association, Productivity Councils and so on. These

institutes run special training courses for graduates interested inmanagement education and also orientation programmes for existing

managers from public and private sector enterprises. Companies can

depute their managers for short orientation courses and update the

knowledge and information of their managers in specific areas. Even

seminars, workshops and conferences are arranged for the training of

managers by various associations such as chambers of commerce and

export promotion councils.

(3)Sensitivity Training: This method is also called T-Group training or

laboratory training. It concentrates on face-to-face interaction. The

trainees are put in open environment wherein participants discuss

themselves. The discussion is guided by an expert who get opportunity to

express their ideas and beliefs. It is an effective method to. develop

awareness of self and impact on others.

(4) In-basket Exercise: In this method, the trainees are proVided with

basket or tray of papers and files related to their functional area. They are

expected to carefully study these and make recommendations on the

problem situation. The recommendations from different trainees arecompared solutions are worked out. Such solutions are put, preferably in

the form of a report.

It is a simple and economical method. It reduces interdepartmental

conflicts. The solutions are worked out by the participants may not reflect


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real life Situations.

(5) Role-Playing: Role-playing has been defined as "method of human

interaction, which involves realistic behaviour the imaginary situations.It is particularly useful for bearing human relations and leadership

trainning. Its objective is to raise the ability of trainee manager while

dealing with others.

In the role playing, a conflict situation is artificially created and two or

more trainees are assigned different roles to play. For example, a male

employee may assume the role of a female supervisor and the female

supervisor may assume the role of a male employee. Then, both may begiven a typical work situation and asked to respond as they expect others

to do. Such role playing results in better understanding among individuals.

It helps to promote interpersonal relations and attitude change...

(6) Case Study: Case study method was first developed by Christopher

Lang dell and Harvard Law School. A case is a written account giving

certain details of the situation is relation to a specific matter. Such case

study may be related to any aspect of management such as production,

marketing, personnel, finance and so on. The case presented is alwaysincomplete. This means the solution to the problem is not provided. The

participants are supposed to identify the best available solution.

A small group of managers is asked to study the case in the light of

theoretical study already completed and is followed by open discussion in

the presence of capable instructor, who can guide intelligent discussion

and analysis. There is nothing like one correct answer to the case study

matter.

Case study method has certain advantages. These are:

(a) in-depth thinking about the matter by managers,(b) more perception in situation and greater respect for the opinions of

others.

(7) Conferences and Seminars: Deputing officers for conferences and

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seminars is a method available for management development. Various

matters are discussed systematically in such conferences and seminars.

This provides new ~formation and knowledge to the managers. The

participants 111 . such conferences and seminars are limited. As a resultmore persons get an opportunity to participate in such

Conferences for self-development. Conferences may be directed or guided

or may be for consultation and finally for problem-solving.

Seminars are similar to conferences and are usually for one day or few

hours. Participants are supplied notes or synopsis of lectures to be

delivered. This gives additional information to participants and enables

them to use the same in their daily routine.

(8) Simulation:. In this method, an executive/trainee is given practicaltraining by creating situation/environment, which closely represents the

real situation at the working place. For example, activities of an

organisation may be simulated and . the trainee may be asked to make a

decision. in support of those activities. The results of those decisions are

reported back to the trainee with an explanation. The report illustrates

what would have happened if that decision was taken. The trainee learns

from this feedback and improves his subsequent simulation.

(9) Management/Business Games: A variety of computer. and non-computer management/business games have been devised for training of

managers. This training method is used in management development. It is

a type of classroom method of training. The game is designed to represent

real life situation. Employees for managerial positions are put in an

exercise of actual decision-making. A problem is provided to them along

with all the necessary information and constraints. The employee is asked

to make a decision. The quality of this decision is judged by how well the

applicant has processed ,the information provided to him. The processing

of information is supposed to be guided by knowledge of the goals and

policies of the organisation. Even if mistake is made in the game, thetrainee can learn a lot out of his mistake. This avoids possible mistakes

while taking decisions for his company. This method develops capacity to

take rational decisions by managers.


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(10)TV and Video Instructions: TV and Video instructions are used for

training and management development programmes. At present,

programmes on management problems are arranged on TV network

regularly. Vid'eotapes are also available on management training. Booksand periodicals are published regularly on management. Audiovisual aids

(film strips, Video, tape recorders, TV, overhead projectors, etc.) are now

used for training of managers.

(11)Transactional analysis - It is a tool for improving human relations

and interactions, and of promoting rationale and mature behaviour. It

identifies 3 main behaviour:Parent (taught behaviour), Adult (thought

behaviour), Child (felt behaviour)

(12) Behaviour modeling - It is a technique of demonstrating and

practicing a behavioral process. After the behaviour is modeled, trainees

rehearse the behaviour, and the trainer provides the feedback about

accuracy and effectiveness. Behaviour modeling is good for developing

the interpersonal skills.

(13) Structured experiences -These exercises allow trainees to learn

interpersonal or communication skills. The structured experience typically

focuses on generating certain interactions among the participants.

PROCESS/PROCEDURE PROGRAMME :

Training programme needs to be prepared properly and as per the specific

needs of the organisation. Secondly, training process/ programme needs to

be implemented in an orderly manner, failing which the net result of

training will not be positive/ effective. Training process is lengthy andtime consuming. It starts with the identification of training needs and ends

when training is provided as per the needs and positive results are actually

verified through evaluation technique.

The steps involved in the training process/programme are as noted in the

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chart given on the next page:

(1) Identifying Training Needs:

Discovering/identifying the training needs of an organisation is the first

step in the systematic training process/programme. All training activities

should be related to the specific needs of the organisation and also of the

individual employees. The training should start only after careful

assessment of the training needs, failing which training process will be

misdirected and positive benefits will not be available. The effectiveness

of a training process can be judged only with the help of training needs

identified in advance. For the identification of training needs, the gap

between the existing level of knowledge, skills, performance and aptitudes

of employees and the required levels of knowledge, skills performanceand aptitudes should be clearly specified, The problem areas that can be

resolved through training process should also be clearly identified. Here,

"the trouble spots" are to be noted where training may be needed. It

should be noted that training is not a cure-all technique.

IDENTIFYING TRAINING NEEDS /FOLLOW-UP AND

EVALUATION

Training needs can be identified clearly through the following types of

analysis:

(a) Organisational Analysis,(b) Operations Analysis

(c) Manpower Analysis.

(a) Organisational analysis relates to the determination of the


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organisation's goals, its resources and the allocation of the resources as

they relate to the organisational goals. The analysis (detailed study) of the

organisational goals establishes the framework within which training

needs can be defined more clearly. The purpose of organisational analysisis to determine where training emphasis should be placed within the

organisation. The scope of organisational analysis is wide and includes:

(i)Analysis of objectives,

(ii)Resource utilisation analysis,

(iii)Organisation climate analysis, and

(iv)Environmental scanning.

(b)Operations analysis focuses attention on the task or job regardless of

the employee doing the job. This type of analysis manpower analysis will be necessary. Thereafter, training objectives need to be decided. The

objectives decided may be innovative, problem solving or regular. This

will be followed by selecting the methods suitable for training purpose.

The methods selected will be used for giving actual training to employers.

Finally, evaluation of training programme will be undertaken. Here, the

contribution of training irl achieving training objectives will be analysed

for the introduction of remedial measures, if required. In this sequence,

training programmes can be designed for hospital staff or employees of

airway, bank or insurance company.Evaluation of training and development programme is a must as it

provides many benefits to the organisation and also to trainees. Evaluation

enables an organisation to monitor the training programme and modify it

or update it in the light of the information available from the evaluation

process. Evaluation of training provides useful information on the basis of

which the utility of training and its integration with other functions of

HRM can be judged. It is rightly argued that "Training, like any other HR

function, should be evaluated to determine its effectiveness". This

statement suggests tIle need and importance of evaluation of training

programme. Every organisation has to develop its own approach andsystem/procedure for evaluating the effectiveness of its training

programme. Evaluation of every HR function is necessary fo: raising its

effectiveness. This rule is equally applicable to training and manpower

development programme. Simply introducing training is not adequate. It

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must be made effective and purposeful. For this evaluation is essential.

Such evaluation will give reliable conclusions as regards the effectiveness

of training given. IT companies as well as engineering companies like ~ &

T provide quality training to their employees. This is possible because ofcontinuous evaluation of. training over years. Such evaluation (relating to

effectiveness of training) needs to be systematic and also by experts/well

trained officers. Training is a means and not the end in itself. Training

effectiveness is the degree to which trainees are able to learn and apply

the knowledge and skills acquired in the training programme. Training

needs to be effective. In the absence of such effectiveness, Training andDevelopment

it will be mere formality. This suggests the need and importance of

evaluation of employee training.

ADVANTAGES OF TRAINING AND DEVELOPMENT :

(A)Advantages/Benefits to Employer/Management/Company:

(1)Improves efficiency: Training raises the efficiency and productivity

of workers and managers. This leads to more production and profit to

employer. It also improves the performance of workers due to their

motivation.

(2) Improves quality of production: Training improves the quality of

production. It also reduces the volume of spoiled work and wastages of all

kinds. This reduces cost of production along with improvement in the

quality.

(3)Reduces industrial accidents:' Training reduces accidents as trained

employees work systematically and avoid mistakes in the work assigned.

This protects life of workers and the property of the employer.


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(4)Reduces expenditure on supervision: Training reduces expenditure

on supervision as' trained employees take more interest in the work and

need limited supervision.

(5)Provides stable labour force: Training brings stability to labour force

by reducing labour turnover among workers and managerial personnel. It

is rightly observed that "Nothing binds the entire workforce to the

company as effectively as opportunities to be trained, especially on skills

beyond their daily operations".

(6) Creates cordial industrial relations: Training moulds attitudes of

employees and develops cordial labour management relations. In fact,scientific recruitment and selection as well as employee training play a

useful role m developing and maintaining cordial industrial relations.

Training makes employees responsible and disciplined. It develops

adaptability and co-operative outlook among workers. This avoids

frequent disputes, strikes and work stoppages. This also ensures cordial

industrial relations and industrial peace.

(7) Reduces labour absenteeism: Training reduces absenteeism among

workers as trained employees find their job interesting and prefer toremain present on all working days. Training creates attraction for the job

and work environment. An employee prefers to remain in the same

organisation over years because of promotion and other benefits. Training

reduces labour turnover to some extent and facilitates employee retention.

(8) Facilitates the introduction of new management techniques:

Training facilitates the introduction of new management I techniques and

also new production techniques including automation and computer

technology.

(9) Creates a pool of capable employees: Training creates a pool of

trained, competent and capable personnel from which replacements can be

drawn to fill up the loss of key personnel due to retirement, resignation,

etc. Training and development I act as ~ source of competitive advantage.

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(10) Provides guidance to newly appointed executives: Training

provides guidance to newly appointed executives and assists them to

adjust properly with the job and the organisation. Training develops afeeling of belonging towards the organisation and the work assigned.

(B)Advantages/Benefits of Training to Employees:

(1)Creates confidence among employees: Training creates a feeling of

confidence in the-minds of employees. It gives personal safety and

security to them at the work place. Due to training, managers can motivatetheir subordinates and get the things done as per the requirements of the

organisation.

(2)Develops skills among employees: Training develops skills , which

act as a valuable personal assets oJ employees. They remain permanently

with the employees for use.

(3) Quick promotion: Training provides opportunity for quick . promotion

and self-development to managers.

(4)Offers monetary benefits: Training provides attractive remuneration

and other. monetary benefits to employees. Trained workers draw more

salary than untrained workers.

(5) Creates adaptability among employees: Training develops

adaptability among employees. It also up-dates their information,

knowledge and skills and keeps them .fresh. It actually refreshes the

mental outlook of employees:

(6) Facilitates self-management: Training develops positive attitude

towards work assigned and thereby creates interest and attraction for the

job and the work place. Employees look after their duties on their own

and not due to external force i.e. supervision.


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(7)Develops co-operative outlook: Training creates an attitude of mutual

co-operation . and understanding among the managers. Such attitude of

co-operation is useful not only at the work place but also in the social life.

(8) Updates knowledge: Training up-dates the information and skills of

employees and makes them capable to face all types of situations.

(9)Creates positive attitude: Training develops positive attitude towards

work and creates attraction for the workplace.

(10) Creates a pool of trained personnel: Continuous and updated

training helps in creating a pool of trained personnel from whichreplacements can be made to fill the loss of key personnel at any time.

(C)Advantages/Benefits of Training in Human Relations:

(1) Improves internal communication: Training ensures improved

communication between groups and individuals.

(2) Provides better orientation: Training provides orientation for new

employees at those taking new jobs through transfer or promotion.

(3) Provides information to employees: Training provides information

on opportunity in employment, governmental laws, administrative

policies and so on. It facilitates career planning of employees and also

facilitates self-development.

(4)Creates healthy work atmosphere: Training provides a good climate

for learning and growth. It makes organisation a better place to work and

enjoy.

(5)Improves employee morale: Training improves interpersonal . skills.

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It builds up a group of employees with high morale.

The advantages noted above suggest the importance of training and

development programmes to organisations. T &D programmes remove

performance deficiencies in employees. They even motivate employees towork efficiency.

(6) Increased Produtivity -, An increase in skill usually results in an

increment in both quality and quantity of output.

(7) Reduced Supervision - The trained employee is one who can perform

with limited supervision.

(8) Reduced Accidents - Proper training in both job skins and safetyattitudes should contribute towards in reduction in accidents.

(9) Increased Organizaltional Stability - Training results in high

stability in employees to adjust in short run variations.

OBJECTIVES OF TRAINING

Improve work performance,

Efficiency and productivity;

Create a pool of well trained and capable employees at all levels;

Provide confidence to do the work properly;

Provide opportunities for self development and thereby motivate forpromotion and other monetary benefits;

Give safety and security to employees;


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Avoid industrial accidents and wastage of all kinds;

Give confidence to face challenges paused by new development;

Improve quality of production, expand market;

Develop co-ordial labour management relations;

Develop positive attitude/skill/knowledge and behaviour pattern which

ultimately help to achieve the organizational objectives.

*TRAINING & TEACHING

The objective of training is to 'train'. This statement imposes certain

prerequisites on training. If a certain individual has to be trained, then of

course, he has to be trained in what is relevant or required of him and not

in what I 'think' his requirement is. This brings us to the first objective of

a training session. "What objective does the group want to set for itself'?

"What does the individual / group wants to do to achieve this objective?"This brings us to the method of achieving the objective.

Teaching, on the other hand, is different. Here, as opposed to the

training, the teacher decides for himself as to what the objective of the

learners should be. In the process, he imposes his objectives on them,

thereby losing track of real life applcation.

NEED FOR TRAINING

Training is the act of improving one's knowledge and skill to

improve his / her job performance. Training is job-oriented. It brings the

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gap between what the employee has and what the job demands. For that

matter, imparting training to employees working in all organized sectors

of human activity is no longer a matter of debate. As a matter of fact, of

late, the need for training has been recognized as an essential activity notonly in the business organisations, but also in academic institutions,

professional bodies and the government departments. Several conditions

have contributed to make the organisations realize and recognize the need

for imparting training to their employees. They are as follows:

Sub-optimal performance of organisations in government, public and

private sectors.

The ever widening gap between planning, implementation and

completion of projects.

Technological change necessitating acquisition of new knowledge,

ability and skills.

Increasing qualitative demand for managers and workmen.

Increasing uncertainties and complexities in the total environment

necessitating flexible and adaptive responses from organisations.

Need for both individuals and organisations to grow at rapid pace.

To meet challenges posed by the global competition.

To harness the human potential and give expression to their creative

urges.

To enable employees to move from one job to another.

To bridge the gap between what employees has in terms of


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knowledge and skills and what his / her job actually demands.

AREAS INFLUENCED BY TRAINING

1. Organizational Development:

Organizational development is clearly one of the sterling achievements

at the present time in training, and indeed, inclusive of far more active and

potent intervention than the word training and education implies.

Team building: Team building is an organizational development

facilitative tactical mode that is intended to make a group effective and

achieve utility of purpose.

Management by Objectives (MBO): MBO is a way of managing

people that emphasis the integration of personal objectives and

organizational objectives and is built upon self control.

Internal Consulting : Internal consulting is a facilitating tacticalorganizational development mode is important for carrying out team

building, for installing MBO and for redefining the role of managers,

training specialists,.

Knowledge: Training is aimed at imparting knowledge to employees

provides for facts, information and principles related to his / her job. In

general training imparted in knowledge area considers 3 aspects,

namely, job context, job content and quality of work.

2. Personal Development:

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It improves personal performance, promote positive attitudes,

facilitate individual growth and development, acquisition of new skills,

learning and practice of ethical values, increase awareness of safety

measures, updating technical skills and general knowledge, shapingcreative potentials, development and managing self.

3. Management & Supervisory Development:

Programmes that provide orientation or basic training for new

supervisors or managers and teach them the mechanics or basic

knowledge and skills.

Training programmes for managers that provide the further training

and additional skills for people and administration skills for job.


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4. Vocational and technical education:

Such program are designed to enable quality productions for entry level

positions in specific occupational categories and to meet the special skilltraining needs of designated groups of adults.

5. Communication Training:

Effective communication training is skill training when its best done. It

gives its participants increased skills in the communication medium they

are working. Communication training in an organization should be

training to produce people who can generate useful message-with athoughtful content expressed in a use full style.

The various training programmed in communication skills is listed:

Writing skills, Oral communication skills, Listening skills, Reading skills,

Reading skills, Interviewing Skills, Multiple skill programmers

6. Social skill:

The training in this area is broader in scope embracing many aspects. This

category of training aims at the development of individuals and team work

7. Experience:

It is cannot be taught or imparted in the training room. it is gained by

putting knowledge ,skills, techniques ,and attitude into use over a period

of time in different work situations. education makes one perfect

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o STEPS IN TRAINING PROGRAMMES

A systematic & integrated approach to training should consist of various

interrelated components as shown below:

ORGANISATIONAL ANALYSIS

Identification of organizational objectives/ needs/ growth potential &

resources.

TASK/ ROLE ANALYSIS

Identification of knowledge, skills and attitudes required

MANPOWER ANALYSIS

Identification/ definition of target population and performance analysis

STATEMENT OF TRAINING NEED

Identification of gap between existing and required level of knowledge,

skills & attitudes.

Isolate problem areas amenable to resolution through training.

SETTING TRAINING OBJECTIVE

In terms of behavioural changes.In terms of output/ results

DEVELOP MEASURES OF JOB PROFICIENCY


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DEVELOP TRAINING POLICY, PLAN, PROCEDURES, RECORDS

PLAN AND DESIGN TRAINING PROGRAMMES

FOLLOW UP & EVALUATION

VALIDATEENSURE FEEDBACK OF RESULTS

REVICE IF NECESSARY

METHODS OF TRAINING

OBJECTIVE MODEL

(Training methods)

Large group methods

Lectures

Some television

Video films

Small group methods

group discussion syndicates

T-groups

Active learning

Individual methods

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Programmed learning

Distance learning in - basket exercise thesis

Computer basedLearning interactive video

Large + Small groups Small groups + Individuals

- Role plays, practical - Project assignment- Brain storming - Problem solving

- Simulation, games - Tutorials ,- Workshops


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CHAPTER 4

CASE STUDY

TRAINING AND

DEVELOPMENT IN

ICICI BANK

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CASE STUDY

TRAINING PROGRAMMES OF ICICI

INTRODUCTION

Training is an important and a very moral part of ICICL Training is

given to all the cadre of employees. Irrespective of their status and

designation. Outbound training is provided by the bank when there is a

need.

*ACTIVITIES UNDERTAKEN

Needs Analysis

Here they assess the trainee's real needs in preparatory meetings, level

testing for language courses, trainee interviews, or written questionnaires.

Setting Targets

Here they use the best methods available to establish where

improvement is most needed. This stage results in the setting of CourseObjectives and the Course Program, which is agreed upon.

Course Design

The best trainer/s is now selected to handle the running of the project.

The Course Program is now designed to meet the objectives and needs

and the COURSE STARTS.....

Training Reports

Trainers fill out weekly or monthly reports for each project, which arereviewed by First Class' management. The company looks for content,

time management and skill development.

Project Evaluation


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The Program Coordinators are frequently in touch with the trainee to

ask for their comments. Feedback exercises are carried out twice on our

longer courses.

End of Course Feedback

They are very interested in the opinion of both client management and

the course participants. This covers all aspects of the course, including

Organization, methodology, trainer suitability and whether course

objectives have been met.

The employees are trained through 2 ways i.e. the bank provide

training programmes to employees in 2 methods,

E - Learning prouramme

The employees are provided with the E Learning programme where

the matter of learning is present on the computer. Here all the Functional-

aspects are covered. The employee just has to open that site of E -

Learning and team the topics by reading it out as they are designed as per

the learning convenience of the employees.

The topics covered under this programme are

1. The Regulatory Environment of Banking

2. General Banking Operations

3. Retail Deposits Programs4. Corporate Products Program

5. Law in Everyday Banking

6. Treasury Products Program

7. Retail Assets Products Program

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8. Basis of Life Insurance

9. Audit and Compliance

10. Quality and Six Sigma for Beginners

11. Retail Internet Banking

12. Performance Feedback

13. Retail Demat Program

14. Banker's Selling Skill Program

C-Learning programme :

The employees are provided with the C - Learning programme which

is conducted in the class room. C - learning means Class room where allthe behavioural aspects are covered which requires the attention of the

trainer and this training program is impossible to learn of its own by the

employee various skills are stressed in this learning program which the

employee needs in every stage of Functional aspects.

The topics covered under this programme are

1. Presentation & Communication Skills2. Models for Management

3. Managing for Performance

4. Team Effectiveness

5. Negotiation Skills

6. Train the Trainer

7. Managerial Effectiveness

8. Personal Effectiveness

9. Interpersonal Effectiveness & Influencing Skills

10.Professional Communication Skills11.0n Becoming a Manager

12.Foundations of People Management.


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*TRAINING TO EMPLOYEES

Traning is provided to all the cadre of employees as per their needs of the

job.

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

2. B or 2nd class employees - Managers

3. C or 3 d class employees - Officers & Clerks. Peons, cleaning boys

etc. are employed on contract basis and therefore no training is

provided to them.

*METHODS OF TRAINING PROVIDED

The training provided to all cadres of employees is depending upon their

needs and importance of various tasks and jobs required to them. The

leaders of each group or section or department find out the need for

training to a particular employee discussing HR head. The functional &

Behavioral training is provided to all the employees.

TRANING PROGRAMMES CONDUCTED IN A YEAR

Normally there are 60 training programs of Behavioural skills are

conducted and 20 - 30 skills are conducted. i.e. 720 Behavioural skill

program & 300 Functional skill ms are provided annually.

*WHO GIVES TRAINING ?

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

Upper class --- These employees are generally given training by the

internal trainers as company does not rely on the outsider trainers for top

level employees.

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Middle class --- They are usually trained by outside and inside trainers,

they are also given training through top level managers.

Lower class --- This category consists cers & clerks. These employees aregiven training through the supervisors and heads of the departments.

*WHERE THE TRAINING PROGRAMS ARE CONDUCTED ?

The ICICI has special training rooms for conducting training sessions at

the office of ICICI. It has also a special training centres constructed at

Khandala in Maharashtra, Delhi, and Bangalore and at Chennai for all

official and managerial level training

*WHO ASSES TRAINING NEED AND VENUE ?

The training need is assessed by the collective discussion between the

team or p head and the HR manager. The venue is decided by the HR

department. Generally employees who are under training are sent to

Khandala so that they can concentrate on E- Training activity only.

*DURATION OF TRAINING PROGRAM CONDUCTED

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

class

Upper class --- the duration of training is of 1 week

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

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

*CHANGING OF TRAINING PLANS

The training plans are changed annually. There is flexibility in changing


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training plans but they are changed on annual basis.

*EMPLOYEES SUGGESTIONS FOR DESIGNING THE

TRAINING PLANS

The employees' suggestions are considered while designing the training

plans. Suggestions are welcomed 4 days before the training program

starts. The Employees can give suggestions about changing the training

program timing, extra topics added stress to be given on particular topic

etc.

*PREPARING TRAINING LETTER & SCHEDULE

The employees are informed about the training program through e-mail.

The ad, timings, venue, and topics of training are displayed on the

intranet. The groups are also informed about the training through their

heads.

EVALUATION F TRAINING PROGRAMME

The employees are evaluated through the observation way. The

employees are given feedback forms during and after the training session.

Executive Recruitment

The banking industry is highly competitive, and banks constantly navigate

a legal minefield that can devastate companies that step out of line.

Finding the right executives is crucial in any industry, but especially one

in which competition is so fierce and legal compliance so important.

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Human resources professionals in banks must go the extra mile to recruit

the best executive talent in the banking field, allowing their organizations

to thrive and grow into the future. Human resources departments in

corporations must gain approval of the board of directors before bringingsomeone in to fill an executive spot

Chapter 5


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HUMAN RESOURCE

STRATEGY INBANKING SECTOR

HUMAN RSOURCE STRATEGY IN BANKING

SECTOR

Introduction

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The global improvement already affected different business industry. The

evolution of technology is one factor to contribute the advancement of

every sector of the business. When it comes to human labor, theinvolvement of the Human Resource Management is still visible because

the productivity of every employee depends on them. The human resource

department is an essential foundation in building a successful business

enterprise.

In the view of a business, specifically in the banking industry, employees

and technology usually work together. The bank feeds the information and

process in acquiring technology and the employees are highly trained to

drive the system. To make the harmony and standardization possible inthe banking industry, the human resource fills the missing part of the

story.

The Role of Human Resource in Banking Industry

The existence of a human resources department is vital to overall

productivity and efficiency of the strong workforce in any thriving

company. In most professional organizations, the role of the human

resources department is not sidelined or eclipsed by other departments. Infact, good human resources can be one of the most valued and respected

departments in an organization; their job is people, and people are the

companys most important asset.

One of the major roles of a Human Resource Department in a successful

business involves a lot of observation and analysis from behind the

scenes. The intelligence of the human resource staffs involves a

compilation of complex data and metrics that follows the performance of

individual employees. Their specific job is to make the workforce

competent is a vital task. The sensitive nature of human relations and the

work of human resource will adequately needed in making the

managements tough decisions. And the essential part is keeping a secret

behind the close door meetings of who is going to let go, who is going to

promote and who is going to hire1.


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Human Resource Strategy in Banking Industry

The Human Resource is the only department that can measure the ability

of an employee before deploying him into the actual work. The strategy of

human resource manager is very reliable because he, includes the other

human resource staffs, are well-trained enough to this kind of job. The

human resource manager creates their own strategy depending in the

nature of the business that needs them. When the banking sector goes to

the human resource management to hire new employees, the first thing

that a human resource manager will do is to look for the right

specification of the worker that the company needed. After determining

the specification and requirements, the strategy in hiring new and freshemployees are the next in the line. In the works of (1997), they set a

strategy that concerns in the Human Resource Strategy in Thailand. As

application on their work, the study will present the following strategy

that can help for the further study or if possible, actual implementation in

one banking institution1.

Recruitment and Selection

This is one important factor that enhances their professionalism. Otherfactors include the fact that there is more competition in the industry and

the new generation of managers who are better educated and well-trained

in their professions. In the earlier stages, when banks were first set up to

provide financial services, banks used to recruit their employees who may

graduate with any field of studies at all. However, over time, the business

schools and vocational schools have been able to train more people in

business administration. Therefore, banks can recruit and select group of

personnel with required skills. This has

Documents

HRM in Banks Final