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7/31/2019 HRM Term Paper- Banking Sector
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Title of the Term Paper: Banking Sector
Group No: 2
Submitted to: Submitted by:
Dr. MOUSUMI SENGUPTA ASHISH PATODIA(11127)
BRUNDA M(11132)
GIRISH S D(11137)
JANAKISHAN REDDY Y(11142)
LIJIN RAJ (11147)
NAVIN PRAKASH (11152)
PAUL JOSEPH FERNANDEZ (11157)
RAHUL M K (11162)
SAMRAT RAHA(11167)
SOUMYA SIDDHARTHA ROUT(11172)
VAMSI KRISHNA N V(11177)
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Contents
Background Information.....................................................................................................3
Major Players......................................................................................................................6
Data collection
Bank of Baroda...............................................................................................................7State Bank of Mysore.....................................................................................................14
HDFC Bank....................................................................................................................16
Similarities and Differences...............................................................................................20
Findings and Conclusion....................................................................................................21
References..........................................................................................................................22
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Background information about the sector
The banking system in India is significantly different from that of many other nations because
of the countrys unique geographic, social, and economic characteristics. The Banking
industry in India started with the setting up of The General Bank of India in 1786, and Bank
of Hindustan in 1790(Both of which have since become defunct). A couple of decades later,
foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s.
The oldest bank in existence in India is the State Bank of India (SBI), which originated as the
Bank of Calcutta in June 1806 which later came to be known as the Bank of Bengal. This was
later joined by the Bank of Bombay and the Bank of Madras, all three of which were
established under charters from the British East India Company and where known as the
presidency banks. For many years, these banks acted as quasi-central banks until they were
merged in 1921 to form the Imperial Bank of India and it acted like a Central bank and as a
banker for other banks
The RBI (Reserve Bank of India) was established in 1935 as the Central Bank of the Country.
In 1949, the Banking Regulation act was passed and the RBI was nationalized and acquired
extensive regulatory powers over the commercial banks.
During the 1950s and 60s, there was wave of nationalization, which started with the
nationalization of the Imperial bank in 1955 and the acquiring of eight state owned banks to
form the State bank group. Later the Government Nationalized six more commercial private
sector banks such as Andhra bank,Vijaya bank etc. The main objective of nationalizing was
to extend banking facilities on a large scale more particularly in the rural and semi-urban
areas and to diverse other public purposes.
The 1990s ushered in a new phase called Liberalization era which was guided by the
recommendations of the Narasimhan committee and spearheaded by economists such as Dr
Manmohan Singh. This started with the licensing of a few private banks. These came to be
known as New Generation tech-savvy banks, and included Global Trust Bank, Axis Bank,
ICICI Bank, HDFC Bank etc.
The next stage for the Indian banking has been set up with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%,at present it has gone up to 74%
with some restrictions This move, along with the rapid growth in the economy of India,
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revitalized the banking sector in India, which has seen rapid growth with strong contribution
from all the three sectors of banks, namely, government banks, private banks and foreign
banks.
The country today is flooded with foreign banks and their ATM stations. Efforts are being put
to give a satisfactory service to customers. Such latest technologies as phone banking and net
banking have been introduced. The entire system became more convenient and swift.
Financial Structure
The Indian financial system comprises the following institutions:
1. Commercial banks
a. Public sector
b. Private sector
c. Foreign banks
d. Cooperative institutions
(i) Urban cooperative banks
(ii) State cooperative banks
(iii) Central cooperative banks
2. Financial institutions
a. All-India financial Institutions (AIFIs)
b. State Financial Corporations (SFCs)
c. State Industrial Development Corporations (SIDCs)
3. Nonbanking Financial Companies (NBFCs)
4. Capital Market Intermediaries
The public sector commercial banks are divided into three categories.
State Bank Group: The group consists of 8 Banks. This consists of the State Bank of India
(SBI) and Associate Banks of SBI. The Reserve Bank of India (RBI) owns the majority share
of SBI and some Associate Banks of SBI. SBI has 13 head offices governed each by a board
of directors under the supervision of a central board. The board of directors and their
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committees hold monthly meetings while the executive committee of each central board
meets every week.
Nationalized Banks: The group consists of 19 banks. In 1969, the Government arranged the
nationalization of 14 scheduled commercial banks in order to expand the branch network,
followed by six more in 1980. Nationalized banks are wholly owned by the Government,
although some of them have made public issues. In contrast to the state bank group,
nationalized banks are centrally governed, i.e., by their respective head offices. Thus, there is
only one board for each nationalized bank and meetings are less frequent (generally, once a
month). The state bank group and nationalized banks are together referred to as the public
sector banks (PSBs).
Regional Rural Banks (RRBs): In 1975, the state bank group and nationalized banks were
required to sponsor and set up RRBs in partnership with individual states to provide low-cost
financing and credit facilities to the rural masses.
Reserve Bank of India and Banking and Financial Institutions
RBI is the banker to bankswhether commercial, cooperative, or rural. The relationship is
established once the name of a bank is included in the Second Schedule to the Reserve Bank
of India Act, 1934.Such bank, called a scheduled bank, is entitled to facilities of refinance
from RBI, subject to fulfilment of the conditions laid down in Section 42(6) of the Act. RBI
is authorized to exclude the name of any bank from the Second Schedule if the bank, having
been given suitable opportunity to increase the value of paid-up capital and improve
deficiencies, goes into liquidation or ceases to carry on banking activities.
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Major players in Indian and global market in the same sector
List of Major Banks in India (Based on the Number of Branches)
Bank Name
State Bank of India
Punjab National Bank
Central Bank Of India
Bank Of India
Canara Bank
Bank of Baroda
Union Bank of India
Syndicate Bank
ICICI Bank
Allahabad Bank
UCO Bank
Indian Overseas Bank
HDFC Bank
Indian Bank
Oriental Bank of Commerce
List of Major Global Banks
Bank Name
Citigroup
Deutsche Bank
Allianz AG
BNP Paribas
HSBC
J.P. Morgan & Chase Co.
Bank of America
Royal Bank of Scotland
ABN Amro
Royal Bank of Canada
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Data Collection
Bank of Baroda
Bank of Baroda General Transfer policy
The Bank of Baroda effects transfers of its employees on the basis of Regulation 47 of the
Bank of Baroda (Officers) Service Regulations, 1979
In Bank of Baroda officers are transferred:
1) On Promotion
2) Under Job Rotation
3) For providing Rural/Semi-urban branch experience.
1. On Promotion
Officers are transferred on promotion from surplus to deficit zones. Such transfers
necessitated for bringing about a balance of staff in all zones are done pursuant to completion
of promotion exercise depending upon the requirements of each zone. In the transfer exercise
of officers from surplus to deficit zones, officers are identified on the basis of merit list of the
promotion exercise by following the descending order of merit. In such transfers, exemptions
are given to the following:
i) Officers who were transferred out of the zone/state in the past and who have completed
three years of service on such transfers.
ii) Officers in the age group of 55 years and above. Transfers of such officers who are not to
be transferred from surplus to deficit zones are decided depending upon the needs of the zone
and the suitability of officers.
2. Under Job Rotation
Officers have to be rotated from one office/branch to another office/branch on completion of
3 years period at an office/branch. These guidelines have been implemented by the Bank and
Job rotation of Officers is done accordingly.
3. Rural/Semi Urban Posting
For promotions to scales II & III an Officer is required to put in 2/3 years service in a
Rural/Semi - Urban branch. Exemption from Rural/Semi-urban posting is being given to
specialist officers; officers posted in EDP Cells/ abroad and physically handicapped officersetc. in terms of the directives received from the Govt.
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The above transfer policy is applicable to officers in Junior Management Grade/Scale I,
Middle Management Grade/Scale II and Middle Management Grade/ Scale III. As regards
officers in Senior Management Grade/Scale IV and above, postings are decided by the Bank
by taking into account administrative needs and suitability.
Career Progression in the Bank
Promotions are mainly decided on the twin factors of performance and potential. Motion
exercises are regularly carried out by the Bank every year in all grades / scales and hence,
sufficient progression opportunities are available to deserving officers.
BANK OF BARODA EMPLOYEES DISCIPLINE AND APPEAL
Appellate Authority means the designated authority to dispose of appeals in case of
conflicts and disagreements.
PENALTIES
The following are the penalties, which may be imposed on an officer employee, for acts of
misconduct or for any other good and/or sufficient reasons.
DEPUTY GENERAL MANGER
GENERAL MANAGER
ASSISTANT GENERAL MANAGER
CHIEF MANAGER
SENIIOR MANGER
MANAGER
OFFICER
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MINOR PENALTIES
(a) Censure,
(b) Withholding of increments of pay with or without cumulative effect;
(c) Withholding of promotion;
(d) Recovery from pay or such other amount as may be due to him of the whole or part of
any pecuniary loss caused to the Bank by negligence or breach of orders;
(e) Reduction to a lower stage in the time scale of pay for a period not exceeding 3 years,
without cumulative effect and not adversely affecting the officers pension.
MAJOR PENALTIES
(g) Reduction to a lower grade or post;
(h) Compulsory retirement;
(i) Removal from service, which shall not be a disqualification for future employment;
(j) Dismissal, which shall ordinarily be a disqualification for future employment.
SUSPENSION
(1) An officer employee may be placed under suspension by the competent authority-
(a) Where a disciplinary proceeding against him is contemplated or is pending; or
(b) Where a case against him in respect of any criminal offence is under investigation,
inquiry or trial.
(2) An officer employee shall be deemed to have been placed under suspension by an order
of the competent authority-
(a) With effect from the date of his detention, if he is detained in custody, whether on a
criminal charge or otherwise, for a period exceeding forty-eight hours;
(b) With effect from the date of conviction, if in the event of a conviction for an offence, he
is sentenced to a term of imprisonment exceeding forty-eight hours and is not forthwith
dismissed or removed or compulsorily retired consequent to such conviction.
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Posts/Grades of Officers
immediately prior to 1st
July 1979
Grade in which Placed
1 General Managers Top Executive Grade Scale VII
2Deputy General Managers and
Chief Legal AdviserTop Executive Grade Scale VI
3 Assistant General Managers Senior Management Grade Scale V
4Regional Managers, Chief
Managers and Dy. Chief officersSenior Management Grade Scale IV
5
All Assistant Chief Officers and
All Officers in 'A' & 'B' Salary
Grades (other than those fitted
in Senior Management Grade
Scale IV & V)
Middle Management Grade Scale III
6
All Officers in 'C' & 'D' Salary
Grades (other than those
fitted in Middle Management
Grade/Scale III and above)
Middle Management Grade Scale II
7All Officers in 'E' & 'F' Salary
Grades Junior Management Grade Scale I
SCALES OF PAY
Scale I = Rs.100001282014320 - 18240
Scale II = Rs.13820 - 1432019920
Scale III = Rs.182402104022280
Scale IV = Rs.2048021040 - 24140
Scale V = Rs.24140- 26620
Scale VI = Rs.26620 - - 29340
Scale VII = Rs.293403070031600 - 32600
.
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PERSONAL ALLOWANCES
The allowances permitted by the bank are the following
i. House Rent Allowance, wherever payable.
ii. Post Allowances to Branch Managers/ Accountants/Assistant Chief Officers/ Deputy Chief
Officers.
iii. City Compensatory Allowance
iv. Agent's Allowance
v. Split Duty Allowance.
vi. Hill & Fuel Allowance.
vii. Custodian Allowance.
viii. Project Area Compensatory Allowance.
ix. Temporary Special Allowance.
Dearness Allowance:
Allowance shall be payable for every rise or fall of 4 points over 2288 points in the quarterly
average of the All India Average Working Class Consumer Price Index (General) Base 1960
at the following rates :
(i) 0.18% of pay up to Rs.9, 650/- plus
(ii) 0.15% of pay above 9,650/- and up to Rs.15, 350/- plus
(iii) 0.09% ofpay above 15,350/- and up to Rs.16, 350/- plus
(iv) 0.04% of pay above Rs.16, 350
House Rent Allowance:
1 Major A Class Cities and
Project Area Centres in
Group A
8.5% of Pay
2 Other places in Area I and
Project Area Centres in
Group B
7.5% of Pay
3 Other places 6.5% of Pay
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City Compensatory Allowance
CCA is awarded to the person working in specified places as mentioned in the table below
Area Rate Max Amount
1Places in Area 1 and in the State
of Goa 4% of Basic Pay
Rs.540/- p.m.
2 Places with population of five
lakhs and over and State Capitals
and Chandigarh, Pondicherry
and Port Blair
3% of Basic pay Rs.375/- p.m.
1. If an officer is transferred from one place to another in the midst of an academic yearand if he has one or more children studying in school or college, in the former place, a
Mid- Academic Year Transfer Allowance of Rs. 150/- p.m. from the date he reports to
the latter place up to the end of the academic year in respect of all the children,
provided that such allowance shall cease if all the children cease studying at the
former place.
2. If an officer is deputed to serve outside the Bank, he may opt to receive theemoluments attached to the post to which he is deputed. Alternatively, he may be in
addition to his pay, draw a Deputation Allowance of 7.75 % of pay subject to a
maximum Rs. 1000/- and such other allowances as he would have drawn had he been
posted in the Bank's service at that place.
3. If he is required to officiate in a post in a higher scale for continuous period of not lessthan 7 days at a time or an aggregate of 7 days during a calendar month, he shall
receive an OfficiatingAllowance equal to 6% of his pay, pro-rata for the period for
which he officiates.
4. If he is posted at a branch where books are closed on 31st March and 30thSeptember a Closing Allowance of Rs. 250/- for each of the two closings.
5. If his working hours during a day are split with minimum interval of 2 hours, a Splitduty Allowance of Rs.125/- p.m.
6. If an officer is required to work as custodian of a vault or locker on a holiday, a DiemAllowance at the rate to which he is entitled.
7. If an officer is required to work in high altitudes and hill areas a special Hill and FuelAllowances is provided.
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LEAVE
Kinds of Leave:
Subject to the grant of leave being determined by the exigencies of service, an officer shall be
eligible for the following kinds of leave:
1. Casual leave
An officer shall be eligible for Casual Leave on full emoluments for12 working days in a year
provided that not more than four days casual leave may be availed of at any time.
Casual leave not availed of in any year may be suffixed or prefixed to sick leave in the
following year
2. Privilege leave
An officer shall be eligible for privilege leave computed at one day for every 11 days of
service on duty provided that at the commencement of service, no privilege leave may
be availed of, before completion of 11 months of service on duty. An officer on privilege
leave shall be entitled to full emoluments for the period of leave.
3. Sick leave
An officer shall be eligible for 30 days of sick leave for each completed year of service
subject to a maximum of 18 32 of 50 months during the entire service. Such leave can be
accumulated up to 540 days during the entire service and may be availed of only on
production of medical certificate by a medical practitioner acceptable to the bank or at
the bank's discretion nominated by it at its cost. In respect of the period of sick leave, an
officer shall be eligible to receive one half of the full emoluments.
4. Maternity leave
On and from 1st day of April, 2000, leave up to a period of -6- months at a time may be
granted by way of Maternity Leave including in respect of post-natal period or at the
time of miscarriage or abortion or medical termination of pregnancy.
5. Extra-ordinary leave on loss of pay
An officer shall be eligible for extra-ordinary leave on loss of pay for not more than 360 days
during the entire period of service. Such leave may not be availed of except for sufficientreasons on more than 90 days at a time. Provided that in very special circumstances, the
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Board may grant extra- ordinary leave on loss of pay to an officer up to a total period of 720
days.
6. Special casual leave and special leave
An officer may be granted special casual leave and any special leave as may be decided by
the Board in accordance with the guidelines of the Government.
State Bank of Mysore
Training
There are two staff training centres of SBM. They are located in Bangalore and Mysore.
Every year one compulsory training program has to be attended by all the employees of the
Bank. The training is conducted in batches of 30 employees each. There will be periodic
training on changes is banking software.
Compensation
Salary settlements are at the national level. There are various scales which an employee can
get promoted to. All employees will start at Scale 1. One can climb up the ladder by merit or
through experience. A scale 2 employee will be a Branch Manager in charge of branch with
15 crores turnover. Similarly for scale 3 it is 50 crores and 100 crores turnover branch for a
scale 4 Branch Manager. The position of Assistant General Manager will have a scale of 5.
Promotion Policy
Promotion is either on the basis of seniority or merit. The bank provides free pre-promotional
training for SC/ST employees. There are lot of promotional opportunities at present.
Transfer Policy
All officer cadre employees are subjected to transfer every 3 years and award staff once in 5
years. The Bank has preferential transfer policy if both husband and wife work for SBM.
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Benefits
1. Incentives are given for better performing regions with performance parameters beingNPA, Deposits, and Advances.
2. Leave Travel Concession once in 4 years.3. Allowance for telephone and newspaper.4. Allowance for 105 litres of petrol per month.5. Loans carry simple interest of 7%.6. Group insurance under staff welfare policy.7. Scholarship for 2 kids (for scores above 60%)8. Maternity leave for 6 months and for 3 times.9. Cash gift on employee birthday.10.Medical reimbursement
i) Self -100%ii) Dependents75%iii) ChildrenSome percentage of the medical bill.
Issues:
Bringing political intervention in matters connected to transfers had increased in the recenttimes. Hence the management has issued a circular prohibiting such practices and if the same
practice continues then employees will face disciplinary action.
Learnings
SBM has one Deputy General Manager in the head office to look into the HRM issues
connected with the bank. The bank leaves no matter unresolved when it comes to employee
grievances. The attrition rate is very low, hence their mightbe a taken for granted attitude
among employees when it comes to performance. The bank has a policy to have the right
man in the right job. It has very few branches outside Karnataka state which the bank can
work on.
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HDFC BANK
RECRUITMENT & SELECTION PROCESS
Recruiting and selecting the right people is paramount to the success of the HDFC BANKLTD. and its ability to retain a workforce of the highest quality. This recruitment and
selection policy sets out the procedure to ensure that the best people are recruited on merit
and that are the recruitment process is free from bias and discrimination.
PRINCIPLES:
Following are the guiding principles for recruitment and on-boarding process.
Attracting and recruiting the right people.
Merit will be the single most important factor in selection process.
Ensure diversity, both gender and ethnicity by targeted candidate sourcing with the help of
recruitment vendors and the referral program.
Hiring people who are team players and have the right attitude most relevant to the culture
of the organization. Attitude is as important as aptitude.
They believe in providing their employee with fulfilling career paths. Towards this, they
will post vacancies internally as a preferred option while evaluating external candidates.
They treat all the candidates with the utmost respect. They will be open and fair in
communication with them; this way they also enhance the brand image of the organization.
They will continuously assess, identify and cultivate strategic talent pools including those at
the universities, management schools, and community forums to address their long term
needs.
HIRING APPROVAL
All recruitment activities shall be undertaken based on the hiring plan as approved by the
Business Head, HR Head & the CEO. For each approved position, a hiring requisition will be
required prior to initiation of any recruitment activity. If the hiring was not included in the
planned budget, it will also require approval from the CEO based on a recommendation from
the Head HR and the CFO.
Recruitment expense will be allocated to the concerned business unit, and expenditure
should be budgeted and pre-approved by the business unit head and the HR Head.
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CANDIDATE SOURCING:
The hiring manager along with the Human Resource Department would decide the channel /
source to use based on the nature of the recruitment. The following sources of recruitment
may be considered:
Internal Sources:
- Whenever any vacancy arises, the possibility of fulfilling the requirement internally via
reassignment and relocation, re-allocation of the responsibilities or internal promotion will be
explored by the hiring function along with the HR Department.
- Internal job postings to explore internal candidates.
Employee Referrals HDFC will encourage employees to refer suitable candidates for open
positions.
Other external sources include:
- Recruitment agencies- External job postings
- College / campus requirement
- Requirement advertisements
APPLICATION PROCESSING
HDFC will process all applications promptly and inform the applicant or source regarding the
status of the application. HDFC will respond to all solicited applications within 5 working
days of receiving the application.
PRE-EMPLOYEMENT CHECKS
This will include both a professional reference check as well as the background check.
Professional reference check will be completed by the hiring manager. HDFC will request
contact information for 2 references from the candidate, and check the quality of previous
work experience and key personal characteristics/conduct/ previous record etc.
For key positions in areas, HDFC will also perform a background check to assess theintegrity / conduct of the candidate.
The following information regarding the candidate will be verified:
Proof of educational qualifications
Any professional certificate that is essential to the job
Address details
Passport details
Date of birth
Proof of previous employment (service certificate)
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Any negative feedback and comment in the reference check will be investigated by HR and if
found genuine shall be a cause for disqualification of the candidate or dismissal from
employment.
OFFER PROCESS
Once the hiring decision is finalized, HR will prepare an offer / fitment as per the
compensation structure and grade and keeping in mind the internal equity.
The offer would be communicated to the selected candidates by the hiring manager along
with HR. The candidate will sign the contract letter to formally accept employment from the
organization.
PRE-EMPLOYMENT PROCESS
As an organization, HDFC will make all necessary arrangements to ensure a smooth joining
process for the employees. HR will provide the candidate a check list prior to joining to ease
joining formalities.
EMPLOYEE ON-BOARDING PROCESS
The overall purpose of the new hire integration process is to ensure that the new employee is
able settle in smoothly and is able to contributing at the earliest.
PRE EMPLOYMENT INDUCTION
HDFCs employee induction process shall begin as per the employee accepts the job offer.
The process includes:
Welcome pack: As soon as the candidate accepts the offer, a welcome pack will be sent to the
employee
A congratulatory note regarding the decision to join the organization
Contact details of a HR representative and the hiring manager
A brief company overview document
Pre-joining checklist: Include details of the documents required from the employee. In case
the employee is relocating from a different location, details of the relocation process and the
visa requirement will be outlined in this checklist
Expectations on the first day of the joining
Office resources: HR shall intimate the immediate supervisor the joining date and immediatesupervisor shall work with the IT and administration team to set up the following 5 days prior
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to employee joining, the following elements and are in working order: Email ID, phone,
computing resources, work space/office, access cards, joining kit including bank account
opening form, initial reading material
POST JOINING ORIENTATION AND INDUCTION
Joining kit: The employee upon joining would be welcomed by the HR representative and
would be given a joining kit that will include: Access card, information on employees email
and phone number, Bank account opening form, corporate insurance application form(if
applicable),HR & Admin policy manual, other relevant reading material ( to be prepared by
hiring manager)
Classroom Induction: The employee integration process will also include classroom training
and induction where the employee will receive presentations and trainings on various topics
that would further ingrain the into the organization
On the job training: Besides formal training sessions, the employee will undergo on-the-job
function specific trainings that are facilitated by the respective functions to help the new
employee acquaint himself/herself with work in progress.
PROBATION POLICY
Probation is a trial that is mutual opportunity for the employee and HDFC to confirm
suitability for continued employment. The probation period is to establish a stronger
understanding of mutual capabilities, expectations and understanding which may include
functional training. The employee must demonstrate suitability for continued employment.
An assessment will be based on factors related to work performance, work habits,
productivity, attitude and compatibility, attendance and punctuality, and any other matter that
is linked to job performance and expectations.
All new hires will be placed on probation for a period of 6 months from the date of joining
HR will initiate the confirmation process by sending an appraisal form to the immediate
supervisor before the completion of probationary period. The appraisal form will need to be
approved by the supervisors leadership
All letters of confirmation or extension of probation will be signed by the HR head and will
be stored in employee file for records.
REFERRAL BONUS AMOUNT
The Referral Bonus Program is operated under the authority of the Budget and Control
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Boards Employee Bonus Guidelines. Under these guidelines, an employee may receive
multiple bonuses, the total of which may not exceed $2,000 in any fiscal year.
Referral bonus payments may be paid in a lump sum or in periodic payments until the new
employee has completed his or her probationary period. Payments cannot be made until the
referred candidate has been employed for a minimum of one month. For example, a $1,000
referral bonus can be structured as follows:
- $250 referral bonus awarded after three months from the hire date,
- $250 referral bonus awarded after six months from the hire date,
- $500 referral bonus awarded at the end of the probationary period.
Similarities and differences in terms of HR strategies and policies among the three
banks
SBI HDFC Bank of Baroda
Training
1. One compulsory training
program has to be attended by
all the employees of bank.
2. There will be periodic
training on changes in bankingsoftware.
1. Training programs are
conducted every year and it is
made sure that employees are
updated on latest banking
practices.
1. Provides basic framework for
a comprehensive and multi-
faceted training program that
seeks to improve the all-round
competencies of employees.2. For senior management,
education program that focuses
on developing business leaders
for future.
3. Our managers skills are
regularly updated through
various knowledge management
initiatives.
Compensation
1. Salary settlements are at
national level.
2. In scale1 they get promoted
by merit or through experience.
3.In scale 2 the branch manager
in charge of bank with 15 crores
turnover
1. It is designed to cover ideas
related to unauthorized debiting
of accounts, payment of interest
to customers for delayed
collection of cheques, payments
of cheques after
acknowledgement of stop
1. Performance-linked incentive
packages for our employees.
2.Welfare benefits such as
financial assistance in times in
need, loans to assist payment of
health-related expenses
reimbursement of medical
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payment instructions,
remittances within India.
2. Policy is based on principles
of transparency and fairness of
customer.
expense, academics
scholarships etc.
Promotion policy
1. On the basis of seniority or
merit.
2. Free promotional training for
SC/ST employees
1. On the basis of seniority or
merit.
1. On the basis of seniority or
merit.
Transfer policy
1. For every 3 years.
2. Award staff once in 5 years.
3.Preferance transfer policy
1.Transfer on promotion
2. Transfer when requirement
arises in new branches.
1. Transfer on promotion.
2. Under job rotation.
3.For providing rural/semi-
urban experience as required
under regulation 17 of the Bank
of Baroda service regulations
FINDINGS
1. Many people in the organization today are in the wrong jobs and as a result, they are not
utilizing their full potential.
2. Hiring people based on personal connections when the person is not qualified for the job.
3. Most recruitment that involves managers is done during discussions at lunch hour, at social
clubs or during the coffee break time.
4. Inadequate recruitment procedures resulted in a number of staff not being sufficiently
qualified either for the positions they hold or their grades levels, especially in management
positions.
5. Psychometric test is not conducted during the selection process.
6. Confusion in the designation and level to the employees even after permanent status for
employment is given.
7. Proper training is not given to the recruitment team and manager.
9. Reaching few prospects due to internal recruitment, internet advertising most of the time.
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CONCLUSION
Recruitment is essential for effective Human Resource Management. It is the heart of the
whole HR systems in the organization mainly in the service industry. The effectiveness of
many other HR activities, such as selection and training depends largely on the quality of newemployees attracted through the recruitment process.
In Banking Sector policies should always be reviewed as these are affected by the changing
environment. Management should get specific training on the process of recruitment to
increase their awareness on the dangers of wrong placements. Effective recruitment is
important in achieving high organizational performance and minimizing labour turnover. As
of now Banks have a team of effective human resource which is efficiently managing the
organization at its best. Though the recruitment process adopted by the organization needs to
be improved, challenges are ahead for the HR Department to recruit people according to the
changing business environments.
REFERENCES
The Indian Banking Sector On the Road to Progress- G. H. Deolalkar (Former Managing
Director of State Bank of India).
Mr Raghuram, Assistant General Manager, State Bank of Mysore Staff Training College,
Mysore.
Mr. Jhanardhan, Assistant Branch Manager, HDFC Bank, Saraswathipuram, Mysore
Mr. Ganesh Kumar, Assistant General Manager, Southren Zone, Kerala.