Human Resources Management in Banks[1].1

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1.1 Introduction:-

Wendell French describes human resources management as the

philosophy, policies, and practices related to the management of people within

the organizations.

Human resources management is about managing people. It is a process of

binding people and organizations together so that the objectives of each are

achieved.

Human resources management is based on four fundamental principals:

(1) Human resources are the most important assets an organization has

and their effective management is the key to its success.

(2) Organizational success is most likely to be achieved if the personnel

policies and procedures are closely linked to corporate objectives and

strategic plans.

(3) Organizational culture, values & climate significantly influence

managerial behavior & exert a major influence on the achievement of

excellence. Hence continuous effort starting from the top is required for

the management & acceptance of the culture.

(4) Human resources management is concerned with integration getting all

members of the organization involved and working together with a sense of

common purpose.

HRM is a management function that helps manager s recruit, select, train and

develops members of an organization.


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HRM People s dimension

A series of integrated decisions that form the employment relationship; their

quality contributes to the ability of the organizations and the employee to

achieve their objectives.

Is concerned with people dimension in management. Since every organization

is made up of people, acquiring their services, developing their skills,motivating them to higher levels of performance and ensuring that they

continue to maintain their commitment to the organization are essential to

achieving organizational objectives.

Management is the planning, organizing, directing and controlling of the

procurement, development, compensation, integration, maintenance and

separation of human resources to the end that individual, organizational and

social objectives are accomplished.


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1.2 Objectives and goals of Human resources management:-

The overall purpose of Human resources management is to ensure that the

organization is able to achieve success through people. Specifically, the

objectives of Human resources management are:

(1)Integration of goals:-HRM seeks to integrate all the individuals and groups within the

organizations by reconciling individual/group goals with those of the

organization.

(2)Cost containment:-

In today s competitive business environment, keeping expenses

dawn or cost containment is a critical HRM goal.

(3)Goals through able employees:-

HRM seeks to help the organization attain its goals by providing it

with competent and dedicated employees.

(4)Optimization of Human resources:-

By employing the knowledge and skills of employees efficiently

and effectively, HRM seeks to optimally utilize the Human resources of theorganization.

(5)Growth and development of employees:-


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HRM seeks to ensure the growth and development of the

employees by providing opportunities for training & advancement.

(6)Satisfy needs:-

By providing adequate compensation, HRM seeks to ensure

that the basic needs of the employees are satisfied and they are able to

live a dignified life.

(7)Motivation:-

An important goal of HRM is to motivate the Human resourcesthrough adequate monetary and non monetary incentives so as to simulate

better performance, which in turn will enable the organization to

accomplish its objectives. It also helps to retain talented employees and

reduce employee turn over.

(8)Legal requirements:-

Every Human resources management decision, such as

hiring, promoting firing, pay raises etc. Has a legal ramification. Hence,

meeting legal requirements is also important HRM goal.


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Human resources management functions:-

(1) Human resources planning:- HRP is the process of forecasting an

organization s future demand for, and the supply of, the right type of people in

the right number. It is only after this that the HRM department can initiate a

recruitment and selection process.

It is a sub-system in the total organizational planning.

It facilitates the realization of the company s objectives by providing the right

type and the right number of personnel.

HRP is variously called manpower planning, personnel planning or

employment planning.

A few definitions of HRP are:

HRP includes the estimation of how many qualified people are necessary

to carry out the assigned activities, how many people will be available, and

what, if anything must be done to ensure that personnel supply equals

personnel demand at the appropriate point in the future.

Human resources planning are the process by which an organization

ensures that it has the right number and kind of people, at the right place, at

the right time, capable of effectively and efficiently completing those tasks that

will help the organization achieve its overall objectives.

(2) staffing: Staffing or acquisition of Human resources is another activity of

Human resources management. Staffing activity determines the composition

of an organization s Human resources.

Staffing activities include attracting qualified people to the organization,selecting from among candidates, reassigning employees through transfer,

promotion, or demotion and ultimately managing the employee separation

through resignation, discharge or retirement.


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(3) Training and development: this activity of HRM focuses on improving the

performance of individuals and groups within the organization. These activities

aim to help employees learn new skills or refine existing skills.

Human resources managers must decide which skills need

development and which methods are most effective for helping employees

acquire skills and knowledge.

(4) Performance appraisal and review: Performance appraisal and review is

an ongoing evaluation of individual & group contributions to the organizations

and the communications of those evaluations to the persons involved.This HRM function is carried out for a number of purposes; to provide

feedback about performance to determine the need for training, to make

decisions bout promotions, pay increases and so on.

(5) Compensation and reward: organizations compensate employees through

wages salaries bonuses, and benefits such as health insurance, vacation time,

and pension programs. The presence or absence of rewards and recognition

is important to employee morale and performance.

Compensation decisions include determining ensuring fair and

equitable pay differences among employees, designing a pay packages

relative to that of its competitors, forms of compensation & so on.

(6) Employee participation: this is relatively new function of HRM. Employee

participation focuses on giving employees a voice sharing information with

them and consulting them on matters of mutual interest.Employee participation is an important step in establishment of industrial

democracy.


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(7) Organization improvement: organizations must constantly improve

themselves due to emergence of new ideas regarding productivity, rapidly

changing technology & competition from other organizations.

1.4 HRM challenges for Indian banks:

The RBI has already prepared the roadmap for major banking reforms and it is

only a matter of time before it is implemented. This roadmap has two distinct

phases of change:

(1) In the first phase, foreign banks will be allowed to establish a presence in

India through the wholly owned subsidiary route. The markets will be opened

up for the acquisitions of weak banks that RBI considers are appropriate for

acquisitions.

(2) The second and more encompassing phase that the RBI plans to begin

from April 2009 is to allow foreign banks to acquire controlling stakes in

privately owned Indian banks. This phase will lay the foundation for open

markets.

These major changes will open up a plethora of new opportunities for

some Indian banks but it could also sound the death knell for some banks. The

success and survival of the banks will depends more and more on people

management and only those banks that can manage their human resourceeffectively will have life in the long run.


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scal es has revealed that promotion takes place at a late stage in one s career.

The study also found that the existing promotion policy is one of the major

causes of high levels of dissatisfaction (62%) among the employees.

This mismatch between the aspirations of the employees &

organizational needs requires immediate attention. There is a urgent need to

revamp the current promotion policy and replace it with a much more dynamic

one that allows for a fast track growth.

Frequent Transfers:-

The frequent transfers are a major cause of discontentment particularly

among officers. This is a serious issue because discontent has a direct impact

on employee performance and thus on the bank s productivity. The average

transfer cycle is 2.5 years and 3.5 years I the case of directly recruited officers

and promotee officers respectively.

Banks need to formulate proactive & transparent transfers & placement

policies that will allow for a smooth mobility of staff, optimum utilization of HR

and achieve cost effectiveness. However, care should be taken to minimize

hardships to employees.

Training:-

The way in which a banker performed banking activities no longer

exists in many part of the world. The world is witnessing the emergence of theTechno Banker . This is keep ing in tune with modern banking gadgets and

payment gateways that the Techno savvy Banks currently offers. If PSB

employees are to fall in line with peer practice of the industry, then there is an


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In the face of stiff competition from service industries, private sector and

foreign bans (which offer attractive remuneration & better working conditions)

the public sector banks have a formidable challenge of attracting and retaining

young people with multi dimensional skills and experience. This is more so

in the case of staff members with some IT backgrounds and related

knowledge.

HR departments of banks need to proactively to look into this area &

develop suitable ways for tackling this problem. Perhaps the times ripe now to

introduce initiatives such as employee s stock options (ESO), quickpromotions etc..

Cultural Clashes:-

If Indian banks want to arrive on the global map and compete on global

level then they need to develop size. Rather than have a large number of

small banks, we need to have a small number of large banks. Thus the need

of the hour is consolidation of PSB s. This can be done through mergers of

various PSB s.

A challenge that HR managers are very likely to encounter during the

consolidation phase is culture clashes. Each PSB has its own unique culture

and ways of working and hence confidence building measures prior and after

the merger will be critical to ensure that these new marriages survive and

prosper.


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1.5 Structure of human resource department:

All the managers have to perform the activities assigned to them by the

president/director.

The most important principle about the organization of the HR dept. is

that it should be fit in the needs of its business. There is no best structure to

adopt but the choice of the structure should be made on the basis of an

analysis of what the organization wants by way of HRM guidance and

services.

President / director

Manager Manager Manager Manager Manager

Recruitment&Selection

Training &Development

Compensation & benefits

EmployeeWelfare

Employeerelations


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Union constraints encountered in HRP and develop policies needed to

handle the constraints.

Automation of production and operations and what can be done of

those displaced.

Cutting down surplus, redundant manpower and retraining and

redeploying the manpower appropriately.

Ensuring a career planning for every employee of the organization and

making succession programs. It means that human resource planning

must include objectives for accomplishing organizational goals and

individual aspirations of the employees.

If the estimated results fall short of the objectives, reasons for failure mustbe determined through performance evaluation and the defects rectified.

Also, the plan or the objective must be revised whenever needed. Once the

plan is finalized, efforts must be made to implement it and make periodical

evaluation of the results.


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2.3 What are the limitations and challenges of HRP?

Planners face a few challenges while formulating an HRP. The major ones are

the following:

1) People question the importance of making HR practices future oriented

and the role assigned to HR practitioners in formulation of

organizational strategies. Their argument is there are people when

needed. Offer attractive packages of benefits to them to quit when you

find them in surplus. When the task is so simple, why elaborate time

consuming planning for human resources? Surprisingly this perceptionabout HRP is also held by the top management.

2) HR practitioner perceived as experts in handling personal matters, but

are not experts in managing business. The personnel plan conceived

and formulated by HR practitioners when enmeshed with the

organizational plan, might make the overall strategic plan itself

defective.

3) HR information often is incompatible with the information used in

strategy formulation. Strategic planning efforts have long been oriented

towards financial forecasting often to the exclusion of other types of

information. Financial forecasting takes precedence over HRP.

4) Conflicts may exist between long term and short term HR needs. For

example, there arises a conflict between the pressure to get the work

done on time and long term needs, such as preparing people for

assuming greater responsibilities. Many managers are of the belief that

HR needs can be met immediately because skills are available in themarket as long as wages and salaries are competitive. These

managers fail to realize that by resorting to hiring or promoting

depending on short term needs alone, long term issues are neglected.


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5) There is a conflict between quantitative and qualitative approaches to

HRP. Some people view HRP as a numbers game designed to track

the flow of people across departments. These people take a strictly

quantitative approach to planning. Others take a qualitative approach

and focus on individual employee concerns such as promo ability and

career development. Best results would accrue if there is a balance

between quantitative and qualitative approaches.

6) Non involvement of operating managers renders HRP ineffective. HRP

is not strictly an HR department function. Successful planning needs a

coordinated effort on the part of operating mangers and HR personnel.


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2.4 The Human Resources Planning Process:-

Analysis of Organizational Plans andObjectives

Forecasting Human Resources

Requirements

Assessment of Supply of HumanResources

Estimating Manpower Gaps

Action Planning

Monitoring and Control


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3.2 Sources of Recruitment:-

The various sources of recruitment may be broadly classified in to two

categories: Internal and external sources. Some organizations draw their

human resources internally i.e. from within the organization while others draw

externally.

Internal sources of Recruitment:-

The internal sources of recruitment focus on finding qualified applications

within the organization. The internal sources of the recruitment may be of thefollowing type:

1) Promotions:-

Vacancy in the organization may be filled by promotion qualified

and experienced employees. Promotion refers to shifting an employee to a

higher position carrying higher status, responsibilities and pays. Promotions

may be based on the performance or seniority depending on the

organization s promotional policies.

2) Transfers:-

Another common way of filling up vacancies is through internal

transfers. An existing employee who is experienced and capable is transferred

from one department on the organization to another department. In transfers

the shifting of the employee occurs without any major changes in his status

and responsibilities.

3) Job Postings (Internal advertisements):- A popular method of finding applicants is through job posting or

internal advertisements. Job posting involves announcing job opening to all

current employees through the company newsletters. Some organizations


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have developed the computerized job posting systems so that employees can

obtain information on their computer screens.

Job postings carry information about the posting and the nature

of the position and qualifications needed, and any employee who is interested

in the job may apply for the same.

4) Recall of retired employees:-

When an organization is not able to find a suitable candidate for

a vacancy, former employees of the organization who have retired or had quit

the organization.

5) Employee referrals:-

Another way to find out applicants within the organization is

through employee referrals. Informal communication among the managers

may lead the discovery of a good candidate for the job. Employee referrals

may be for candidates within the organization as well as outside the

organization.

6) Skills inventories:-

Many firms have developed computerized skills inventories of

their employee. Information on every employee s skills, education, work

history, and other factors is stored in the organization s data base.


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External sources of recruitment:-

Organizations turn to external sources when the internal sources

fall short. New organizations rely on external sources to meet their needs.

Even well established organizations turn to external sources when they don t

have proper candidates or in order to new blood in organization.

The external sources are:-

1) Campus recruitment:-

Educational and training institutes like the IIMs, IITs and other

professional colleges are a good source of recruitment qualified and trainedpersonnel. Many educational institutes have placements departments who

forward the names of graduate students to interested organizations.

2) Advertisement:-

Ads in journals newspapers and magazines with wide circulation

are a very popular source of recruitment. However care should be taken in

preparing the advertisement so that only qualified applicants respond.

The advantage of this method is that a single advertisement can

reach millions of potential recruits. The cost per person is very law.

As more and more people surf the internet, the internet as a

medium is becoming increasingly popular.

3) Employment agencies:-

Private consulting firms carry out recruiting functions on behalf oforganizations. Firms of such kinds are also referred to as head hunting firms.

These firms carry out all the functions of recruitment and selection and provide


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organization with the candidates as per their requirements. The employees

agencies charge a fee for their services.

4) Employee recommendation:-

A very good external source is a recommendation from current

employee. An employee will rarely recommend someone unless he is certain

that the individual will perform adequately. Because the recommendation

reflects the recommender and his reputation is at stake.

5) Professional bodies:-

Professional bodies like ICA, ICS maintain the record of qualifiedpersons in their specialized fields. Organizations can approach such bodies to

meet their needs.

6) Deputation:-

In this the services of an experienced employee of another

organization are borrowed for a fixed period of time. This source is usually for

senior positions. After the service the person on deputation returns to the

lender organization.

7) Poaching:-

It involves attracting talented persons and competent persons

from rival organizations by offering the better terms and conditions of

employment with regard to salary, designations, working conditions additional

perks and benefits.


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Chapter 4

Selection

4.1 Definitions:-

Selection is the process of choosing the most suitable person/s out of

all the applicants. It is the process of choosing individuals possessing the

required qualifications and skills to perform the job successfully.

Del Yoder defines selection as the process in which candidates foremployment are divided in to two classes those who are to be offered

employment and those who are not .

Thomas Ston e Selection is the process of differentiating between

applicants in order to identify and hire those with a greater likelihood of

success on the job.

Selection involves screening of candidates. Screening is a process of

reducing the number of applicants to a few by way of rejecting the candidates

who are not found eligible as per the qualification.


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4.2 The selection procedure:-

Organizations make large investments to get the right kind of people;

hence, a sound selection procedure is necessary.

Preliminary interview

Application blank

Selection test

Employment interview

Medical examinations

Reference checks

Final selection


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The objective of the selection procedure is to determine whether an

applicant meets the qualifications for a specific job and to choose the applicant

who is most likely to perform well in that job.

The various steps in the procedure are:

(1) Preliminary interview:-

The objective of this interview is to discard those candidates who

are totally unqualified for the job. Only suitable candidates are retained for

further screening.

This interview saves time and efforts of both the organizationand the candidate. The preliminary interview is the first contact of an individual

with the organization. Hence it is vital that the staffs who are involved in this

step are extremely receptive and polite with the rejected candidates.

(2) Applicable blanks:-

The candidates are supplied a blank specially prepared

application from for filling it with information relating to education, age,

experience, training, hobbies, etc...

This form has several benefits:

(1) It helps to eliminate those candidates who are lacking in education and

experience.

(2) It helps in formulation questions for the interview.

(3) Information obtained from application can be used for future reference.(3) Selection test:-


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A variety of psychological tests are used to obtain information

about various a spects of an individual s behavior, performance and attitudes.

Use of such tests is becoming popular.

These tests help in:

(1) Identification of differences among individuals.

(2) Identification of the maximum and minimum potential of the candidates.

(3) Identification of skills abilities talents in the candidate.

(4) Employment interview:-It gives the employer and employee an opportunity to meet each

other.

The employment interview serves three purposes:

(1) It is an opportunity to obtain additional information about the candidate

and determine his suitability for the job.

(2) It provides information to the candidate about the organization, the

specific job for which he has applied and personnel policies.

(3) It helps to establish a friendly relationship with the candidate and

motivate suitable candidate to join the firm.

(5) Medical examination:-

then applicants are sent for medical examination. It is important

for following reasons:

(1) It helps whether the employee is mentally & physically fit for the job.(2) It prevents employment of employees suffering from contagious

diseases.


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(3) It saves expenditure that the organization may have to incur for

medical treatment of the candidate.

(6) reference checks:

Applicants are frequently asked to provide the names and

address of two or more persons who know them well. These persons are

commonly referred to as referees. These persons mat be previous

employers, heads of educational institutes. The organization contacts the

referees to know more about the candidate s character, skills, etc. the

feedback of referees influence the selection of the candidate.

(7) Final selection:

The candidates who have cleared all the above stages are

recommended by HR dept. to the concerned department for their final

approval.


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Chapter: 5

Induction

When a new employee joins the organization, the few first days are one of a

great uncertainty. Even the calmest and most competent employee feels little

nervous, anxious and insecure. This is because he is unfamiliar with the new

surroundings. Hence, most organizations offer some kind of induction program to

help new employees.

5.1 Definition:-

Michael Armstrong defines induction as the process of receiving andwelcoming employees when they first join the company and giving them the basic

information they need to settle dawn quickly and happily & star the work.

According to Armstrong induction has five main aims:

(1) To put the employee at ease.

(2) To create employee interest in the job and organization.(3) To provide basic information about working conditions.

(4) To indicate the standards of performance and behavior expected from the

employee.

(5) To tell the employee about training arrangements and how he or she can

progress in the company.


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Importance of induction:-

Induction is extremely important as a new worker often finds himself completely at

sea in the new workplace.

5.2 Induction has following aims:

(1) Smooth entry:-

To make the entry of the new employee in to the organization a smoothone as initially everything is strange and unfamiliar to him.

(2) Favorable attitude:

To establish a favorable attitude to the company in the mind of the new

employee so that he will stay in the organization.

(3) Quick adjustment:

To obtain effective output from the new employee in the shortest

possible time.

(4) Reduce employee turnover:

Research has found that employees are far more likely to resign during

their first few months after the joining the organization. Induction reduces the

likelihood of employees leaving the organization quickly.


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(5) Increase commitment:

A proper induction makes the employee feel that the organization is

worth working for. This increase employee commitment as he identifies himself with

the organization wants to stay with it and is prepared to work hard on behalf of the

organization.

(6) Understand organizational norms:

Induction programs convey to the new employee what the organization

expects from him in terms of behavioral norms and the values that he should uphold.

Induction provides an opportunity to inform people of the way things are done here.

(7) Develop relations:

Induction helps to foster a close and cordial relationship between the

newcomers and the old employees and their supervisors.

5.3 Contents and conduction of induction programs:

Some organizations conduct informal orientation programs where the immediate

supervisor makes the introductions and provides the necessary information.

Large organizations develop formal orientation programs. Such an orientation

program consists of a tour of the plant, office a talk on the history and background of

the organization etc..

The contents are usually from the following different areas:

(1) Information about the organization:-


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5.4 Induction at Canara Bank:

Canara bank has recognized the importance of induction. Evidence of this can

be seen in the HRD book of the bank. The handbook has a chapter that

advises managers on the objectives of induction and the systems to be

followed. Given here below is a summarized extract from the hand book.

Entry Interview for effective Induction of new Entrant:

Objectives:

To ensure introduction of the new entrant to the entrant to the

institution, its culture, tradition, ethos and work ethics.

To have a formal interaction between the head of the branch and the

new entrant in order to have introduction to the job and colleagues.

To provide psychologically assurance that he will be looked after and

cared in the new place.

Help the employee to shed apprehension, if any, and feel free in the

environment.

To initiate the socialization process of the employee in the organization

on a positive note. So that the process of emotional interaction is fast

and smooth.


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Chapter 6

Training & Development

An organization cannot function effectively when its employees are not trained well.

Lack of training is often the cause of:-

(1) Poor productivity

(2) Errors and wastages

(3) Unsafe working practices and

(4) Dissatisfaction at work.

6.1 Definition.

Training is basically the management of learning. The objective of training anddevelopment is to raise the level of performance in one or more aspects. This is

achieved either by providing new knowledge and information relevant to a job or by

teaching new skills or by imbibing an individual with new attitudes, values, motives

and other personality characteristics.

Acc ording to Edwin Flippo, training is the act of increasing the knowledge and

skill of an employee for doing a particular job.

Goldstein describes the training process as the systematic acquisition of

attitudes, concepts, knowledge, roles, or skills that result in improved performance at

work.

Training prepares employees to perform their present job even better and

more efficiently. It also prepares the employee for higher positions with increased

responsibilities.


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6.2 Importance of training.

Organizational training programs are very costly. When an employee is

being trained, not only is the organization spending money on him but it is also

losing in terms of manpower as the employee is away from work.. However

despite this loss, good organizations spend a considering amount of time,

effort and money to train their employees. They feel that training of employees

is an investment which will reap benefits and profits for the organization in the

future.

The major benefits are:-

(1) Higher Productivity and Profits:-.Training improves the knowledge and skills of employees and

Hence leads to greater efficiency in the work place. The more efficient an employee,

the higher will be the production which in turn will contribute to greater profits for the

organization

(2) Optimal use of Resources:-

Well trained employees are able to make optimal use of their

Resources (manpower, materials machinery and capital).this helps in reducing cost

and time wastages.

(3) Job satisfaction:

Employees who have received training and know their job well are a

confident lot. This increases their morale and leads to higher job satisfaction.

(4) Safety:

Training reduces errors and accidents on the job by making theemployees more competent and able at their work. Training helps to improve

safety standards at work.


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(5) Reduces Stress:-

An employee who knows his job well is less likely to

experience stress. Besides training in stress and time management enable the

employee to cope with frustration and tension.

(6) Career Development:-

Training prepares the employees for higher positions by developing

the necessary skills and attitudes. It improves the employee s prospects for

advancement and promotion within the organization. Training prepares the

employee for opportunities that will come during his career.

6.3 The Training Process:-

Training programs are a costly and a time consuming process. Hence training

programs need to be planned very carefully and then executed.

Most organizational training programs proceed along the following lines:-

(1) Identifying training needs

(2) Determining training objectives

(3) Designing the training program

(4) Implementation of the training program.

Identifying Training Needs:

Training needs are usually assessed in the following ways:-

(1) Organizational Analysis: -

Organizational analysis focuses on identifying where trainingShould be given in the organization. It suggests where in the organization

training is needed.


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Training needs at the organizational level is determined using

the following information:

a) Organizational goals and objectives

b) Manpower requirements

c) Skills availability

d) Introduction of new technology / products/ services.

Organizational analysis ensures that the training programs are tied to the

organizations strategy and mission.

Organizational analysis also involves the examination of factors that facilitate or hinderthe transfer of skills from training to the job.

(2) Task Analysis:-

Task analysis is also referred to as operations or job analysis.

It is related to the operations or work activities that an employee has to

perform on the job and the skills, knowledge and abilities required to perform

it.

Task analysis focuses on the job, rather then on the individual doing the

job. It involves identification of tasks that need to be performed, how they

should be performed, and what is needed in terms of knowledge, skill and

attitude in order to perform the given job efficiently.

(3) Person Analysis:-

Person analysis provides information regarding who in theorganization needs to be trained and what kind of training should be given.

The focus is on how well each employee is performing key tasks.


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Person analysis is commonly done on the basis of

performance appraisal reports. Performance appraisal is commonly done on

the basis of performance appraisal reports. Performance appraisal helps in

identifying the strengths and weaknesses of the employees.

Person analysis also caters to the future needs of the

organizations. Organizations can send employees for training programs to

develop and acquire knowledge, and develop skills and abilities that may not

be needed for the current job but are required at the next level in the

organization.

Determining Training Objectives:The training objectives usually include matters such as:

(1) The specific skills and knowledge to be imparted along with the attitudes to

be cultivated.

(2) The employees who are to be trained.

(3) The number of people to be trained and from which unit.

(4) The time period within which the training is to be given.

(5) The desired outcome on completion of training.

(6) The training budget.

Designing the Training Program:

The training design covers matters such as:-

(1) The contents of the training course.

(2) The training methods and techniques to be used.(3) Whether training is to be given on the on the job or off the job.

(4) The place where training will be given.

(5) The learning principles on which the training program will be based.


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(6) The selection of the trainers. The trainers could be personnel from the

organization or they could be people specially invited from outside the

organization.

Implementation of the Training Program:

In this step the training program is actually carried out. The training design

developed in step three is implemented and the trainees undergo training under

the watchful eyes of the trainers.

Program implementation involves:-

(1) Organizing training and other facilities.

(2) Scheduling the training programme.

(3) Conducting the program

(4) Monitoring the progress of the trainees.

Evaluation of Training Program:

(1) To determine whether the training program met its objectives.

(2) To identify strengths and weaknesses in the training process.

(3) To calculate the cost / benefit ratio of the training program.

(4) To determine who benefited most from the training program and why.

(5) To establish a data base for future decisions about the training program.


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6.4 Training method for management development:-

On the job training:

(1) Coaching:

In coaching a superior guides and instructs a junior manager. He

trains the junior in the knowledge and skills required to do the job. This method

emphasis on learning by doing.

In this method, the superior serves as a coach who helps the traineegrow and improve his performance on a day to day basis. The coach sets

challenging goals for the trainee & informs him what is to bi done and

evaluates the trainee s progre ss toward the goal.

The advantages of this method are:

(1) The problem of transfer of learning from theory to practice is minimized as

the trainee learns by doing.

(2) Training of this form tends to be individualized.

(3) Every executive can coach his subordinate even if a management

development programs does not exist.

(4) Coaching is very useful for the orientation of new managers and for

developing operative skills.

The drawbacks of this method are:

(1) The superior may be a good manager but not a good teacher and guide.


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(2) The trainee learns the customary practices and managerial styles followed

in the organization.

(3) The coach may not have sufficient time to guide the trainee as he has to

carry out daily activities too. This may result in the neglect of the trainee.

(2) Job rotation:

It is a popular management training method. It involves

movement or transfer of managers from one position to another on a plannedbasis. They are moved from one managerial position to another according to a

rotation schedule. Job rotation is also called as position rotation and cross

training.

The aim job rotation is to broaden the knowledge, skills, and

outlook of managers. It exposes the managers to different jobs and

departments to acquaint them with all the facets of the organization.

Advantages:

(1) Reduces monotony:

it allows managers to diversify their skills and reduce the

monotony and boredom that results from performing the same job over years.

(2) Greater coordination:

Job rotation facilitates interdepartmental cooperation andcoordination. It makes managers aware of the intricacies and interrelationships

of the different activities in the organization.


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(3) Flexibility:

Job rotation widens the skills of the managers thus it gives the

management greater flexibility in scheduling work, adapting to changes and

filling vacancies.

Drawbacks:

(1) Disruption of work:

Job rotation causes disturbance in establishment operations. It

may disrupt the smooth functioning if the organization.

(2) Higher costs:Job rotation increases costs as moving a manager to a new

position just as he is settling down at his current job reduces the productive

contribution that he makes to the organization.

(3) Imbalance:

Extensive job rotation may result in a vast number of trainees

with limited knowledge and experience being situated in a position or

department. Such imbalances may disrupt the functioning of the department.

(4) Understudy assignments:

In this method , the trainees work directly under individual s

whom they are likely to replace. The objective of understudy assignments is to

train as employee to succeed in a specific position. The employee may work

as a manager to a superior who trains him to shoulder his responsibilities indue course.

(5) Committee assignments:


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Organizations frequently set up committees and panels to

investigate and study various problems controlling of the companies. Trainees

are often placed in such committees so that thy get a feel and develop better

understanding of the various issues facing the organization.

(6) Project assignments:

In this method a number of trainee executives are put together to

work on a project that is closely related to their work on a project that is closely

related to their work or department, the group called project team or task force

studies the problem and find appropriate solutions.

In this method the trainees learn the procedure and techniquesinvolved in the particular work and the interrelationships between their

department and other departments.

(7) Multiple Management:

This was developed by Charles P. McCormic in the USA. In this

method a junior board of young executives is constituted. This board is given

the authority to discuss ant problem that the senior board would discuss. They

discuss a wide variety of subjects and make recommendations to the board

directors.

Off the job training methods:

(1) Lecture method:

it is a prepared presentation of knowledge, view points I order tomake the learners accept what the lecture says. The key word is prepared .

Presentation of the lectures will spell the difference between acceptance or

rejection, interest or boredom.


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The biggest advantage of the lecture method is that it is possible

to give knowledge to a large number of trainees at the same time. Hence it is

economical in nature. This method is very good to introduce the trainees to

new subject or when subject matter is general in nature.

The drawback of this method is that it does not allow active

participation of the trainees. However this limitation can be overcome by

having a question and answer session at the end of the lecture.

This method is not very effective in skill acquisition. It is noteffective in teaching people how to interact with others, how to get along with

other people. One has to learn these things by doing them.

(2) Conference:

This method is commonly used when the number of trainees is

small. The conference method encourages active participation and leads to

greater two way communication. The conference method permits the

participants to pool their ideas together, discuss the problem from all points of

view, and ask questions.

The effectiveness of this method is strongly influenced by the

skills and personality of the trainer.

The conference method applies the learning principles of

motivation and feedback in training situations.

(3) The case study method:In case studies, the trainees come face to face with business

situations similar to the ones they are likely to handle future. Case studies


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consist of problem situations to which the group has to find the best possible

solution. Case studies are extremely popular in executive training programs.

In a typical case study a complex problem or case of the kind

daily faced by managers and executives is presented to the trainees prior to a

general meeting. The trainees are expected to find additional information.

When they meet together as a group, each member interprets the problem

and offers a solution. Then a systematic discussion takes place. Different

views are exchange; the trainees come to different approaches to solve the

problem. The group leader does not suggest an answer. The group as a whole

must reach an agreement and resolve the problem.

(4) Role Playing:

The primary objective of role playing method is to teach the

participants empathy. Empathy means trying to understand other people,

trying to appreciate their difficulties and looking at problems from the person s

point of view.

In role playing, management trainees pretend to act out a

particular role, displaying whatever behaviors they believe are appropriate in a

given situation. For example they may be asked to imagine themselves to be a

boss who must discuss the poor performance appraisal with a subordinate.

They act out these situations in front of a group of trainees and instructors,

who offer comments on their performance. Sometime the trainee is asked to

play the role of supervisor and then the roles are reserved and the same

trainee is asked to play the role of an employee. Sessions can be videotaped

for later analysis.

Role playing is particularly useful in certain areas in which

understanding the other person is very important. The specific areas are:


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(1) Interviewing

(2) Counseling

(3) Selling

(4) Supervising

(5) Evaluating.

Behavior role playing is an advanced form of role playing. In this method the

trainee watches a model enact a role emphasizing certain key points and

principles. The trainee then acts out the role himself and provided feedback

bye the trainer.

6.5 Training for Managerial Effectiveness in Banks:-

Introduction

In today s banking environment, nothing is more important than

customer satisfaction. There is a metamorphosis in the appearance and

functioning of the banks, which are slowly transforming from the traditional

acceptance of deposit for lending purposes to a financial super-market. The

growing needs of the customers make the task of managing change and

innovating new products and services a prime function for a bank to maintain

its position in an increasingly competitive environment. With the advent of

economic reforms, the public Sector Banks, which have been sheltered under

stable Government policy over the past 25 years, are now facing competition.

Thinking in terms of the future and producing the right mix of services to attractall customers has become one of the prime objectives of a bank. The

executive of a bank today have to imbibe changes into the system, implement

them well without delay and at the same time be able to project a stable


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outlook. It is in this context that training and development of managers in a

bank becomes vital.

In India, today we have Public Sector Banks, in whom the Government or the

Reserve Bank of India holds controlling interest, Private Sector Banks and

Foreign Banks. The role of foreign banks which have hitherto been limited to

metropolitan centre and focused on high value personal loans and trade

finance have undergone a sea-change at present. The growing World Wide

Web has offered them an opportunity to function from remote locations. The

Private Sector Banks that have concentrated their operations in a particular

geographical zone have also grabbed this opportunity to increase the numberof customers. The public sector banks which have for more than 2 decades

been the providers of banking services at remote locations across the length

and breadth of the country and who had the solace of Governmental support

for their acts are today faced with increased pressure from all avenues for

improving services and organizational efficiency. Though it is true that public

sector banks are overstaffed and return on capital deployed is poor, it should

be viewed from a perspective, which incorporates the effect of Government

policy and directives of the past years. The task of managing change and

proving effective is more challenging for the executives and managers of

public sector banks today than that of other banks. This article focuses on

training for effectiveness of this class of managers.

The scenario

With rapid globalization of products and services, economic thinking is

primarily market driven with transparent regulatory authorities, than dictated by

the Government. The market opportunities are by definition limitless provided


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one invests in the right type of people and product development. The risk of

failure today, however appears to be much higher than that would have been

the case a few decades ago. Though a perspective plan and a long-range

plan are not new terminology in a bank and most of the managers and

executives are involved in the process, nothing much had been done to

improve organizational development to meet future goals. As a rule most of

the managers react to events as and when they arise than to foresee and plan

courses of action. There is a training system in place in most of the banks and

the training centers are mostly involved in imparting procedural inputs rather

than developing an individual as a whole to emerge well in changing

environments and unforeseen circumstances. In a Bank, where most of theinstructions are documented and a defined set of rules are provided for almost

all types of transactions, the ability of the individual to think beyond, and at the

same time not compromise on the security features assumes enormous

importance in an ever-changing atmosphere.

Before embarking into any suggestion for executive development in Banks the

following points have to be taken into account:-

(i) The traditional idea of management in Indian banks, which believes that

rigid Organizational structure, express delegation of authority and an

unpardonable attitude towards errors have to a great extent hampered the

growth of organizational effectiveness. Seniority and age are pre-dominant

factors in determining the place of a person in the heirchy

(ii) Rapid advancement in technology and increased use of computers andIT in banking operations have to be technology savvy to understand and

implement IT products to meet the ever-growing needs of

customers.


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Encouraging new and innovative ideas are a way to bring out the

participation of the employees. Employees should be given adequate freedom

to experiment. A good job done should be recognized and rewarded. Reasons

for poor performance of a team should be analyzed and corrective steps

should be taken.

Upgrading managerial competence: -

managers are very often leaders who are looked upon by banks to

achieve its goals. Therefore upgrading managerial competence is of primeimportance. As managers develop into quality motivators empowering their

subordinates to perform they also automatically increase their competence to

be managers in the future. In this context it is important to note that the

development of a handful of personnel endowed with skill into superior class

will not help the organization in the long run. Upgrading of the middle group

which constitutes more than 50% of the working people, should be aimed at to

ensure stability and growth.

Understanding employee needs:-

one does not perform to full capacity utill and unless all his needs are

met. Management thinker have recognized the relationships of need fulfillment

to motivation and performance of employees. Recognizing employee neds and

fulfilling them should be the function of the manager.


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6.7 Training at SBI:-

SBI is an India s largest PSB. It is the second larger employer of people

after the Indian railways. The bank currently employees over 2.15 lakhs

personnel in various coders. SBI has a separate HRD division which looks in

to the training interests of the bank.

The SBI training philosophy is proactive, planned and continues. It is an

integral part of organizational development. It seeks to impart knowledge,

improve skills and reorient attitudes for individual growth and organizational

effectiveness.

The HRD mission of SBI is to enable every individual to realize and

activate his potential, as to contribute to the achievement of the bank s goals

and derive satisfaction there from.

The training wing in SBI consists of nearly 65 training centers

established at various places in the country. There are 3 colleges one each

specialized in agricultural development, information and technology and

general banking.

At the apex level an academy has been established at Gurgaon near

Delhi. This academy provides training to the top management of SBI also to

officials from other banks. Every training center is equipped with modern

infrastructure facilities and has a suitability trained faculty.

The management of training system is overseen by the Chief General

Manager at the Central Office of the bank in Mumbai.


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At each training center, various programs are conducted through out

the year for employees in various cadres. The programs are designed in such

a manner so as to help develop the employees ability to work more efficiently

and without mistakes. This ultimately benefits the employees as well as

institution.

The training programs may classified in to three main divisions:-

(1) Core program

(2) Role Related Program.(3) Factional Program.

These programs are developed for all categories employees. Each program is

designed keeping in mind the following details:

(1) Duration

(2) Target group

(3) Eligibility

(4) Objectives.

6.8 The following is an example of a program designed for officers:

Duration 24 days 4 weeks (88 sessions)

Target group Probationary/trainee officers

Eligibility Recently appointed/promoted probationary trainee officers.

Objectives (1) To increase their awareness of the changing economic

environment and the role of the banking sector in it.


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(2) To enable them to understand SBI s organizational

structure, functions, vision, mission, values and HRD

philosophy.

(3) To introduce them to banks system and procedures.

(4) To familiarize the trainees with computers.

Program Design:-

Subject No. of

session.

(1) Inauguration & formalities

(2) Human Resources Management(3) banking System & State Bank

(4) Banking Laws

(5) Deposits & miscellaneous business

(6) Bank s system of accounts

(7) computer appreciation

(8) Customer Orientation

(9) Offices Languages Act

(10) Interface with Functionaries Branch /HO s

(11) Dummy Banking

(12) Educational Tour

(13) Exit point test

(14) Valediction

1

24

8

12

18

22

8

1

2

4

4

1

1

Total sessions 88


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Chapter 7

Transfer & Promotions

Reshuffle of human resources is essential for the smooth and efficient

management of the organization. It also serves the broader interests of the

organization. Hence such reshuffles popularly known as job transfers have

become very common in modern business organizations.

7.1 Definitions:-

Yoder and associates have defined job transfer as a lateral shift

causing movement of individuals from one position to another usually without

involving any marked change in duties responsibilities, skills, needed or

compens ation.

A transfer thus involves a change in the job (accompanied by a change

in the place of the job) of the employee without a change in responsibility orremuneration.

Transfers may be initiated either by the company or the employee. A

company may initiate transfer to place employees in positions where they are

likely to be more effective. Similarly, employees may initiate transfers to

locations where they are likely to get greater satisfaction.


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7.2 Transfer policy:-

Every organization should have a just and impartial policy concerning the

transfers of employees. It is important that every employee knows the

policy.

A good transfer policy should satisfy the following conditions:

(1) It should state the types of transfers (departmental or

interdepartmental) and the circumstances under which transfers willbe made.

(2) The person/s that have the authority to order transfers. Usually

transfers in each department are handled by the person in charge of

that department. The HR dept. usually, has a big say in transfers.

(3) The effect of transfer on pay and seniority should be clearly

mentioned.

(4) The facilities available to transferred employee should be clearly

mentioned.

(5) The transfer policy should state the conditions under which personal

requests of the employees for transfer will be entertained

(6) All transfers decisions should be communicated to the employee in

writing.


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7.3 Types of transfers:-

Employee transfer should be classified in to three types based on its purpose:

(1) Transfers that are affected for the training and development of the

employees.

(2) Transfers made for adjustment of varying volumes within the

organization.

(3) Transfers designed to correct the problem of poor employee

placement.

The common types of transfers are:

(1) Production transfers:

When there is excess manpower in one department or branch in

the organization. They are transferred to other departments or branches in

order to avoid lay off and stabilize employment.

(2) Replacement transfers:

These kinds of transfers are applied for the protection of senior

or long serving employees. Such transfers are made when the operations of

the organizations are declining and hence a long standing employee replaces

a junior or new employee.

(3) Shift transfers:-

These are routine in industries where work is in progress for 24

hrs. or in three shifts. Such transfers are usually affected on a rotation basis


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but they are also being affected for personals reasons of an employee such as

marriage, child - care etc

(4) Remedial transfers:

These are effected to correct the wrong placement of the

employee or to shift an in efficient employee who is not carrying out his job

satisfactorily. The wrongly placed employee is placed in a more suitable job.

Such transfers protect the interest of the employees.

(5) Penal transfers:

The management may transfer an employee from one position toanother as punishment for undesirable acts performed by him.


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7.4 Transfers in banks:-

In the public sectors (PSBs0, the transfers of officers in the junior

management and senior management grades are governed by government

regulations. The exact nature of these regulations may vary from one PSB to

another but it has to within the broad framework of government guidelines.

The main objectives of transfers in PSB s are:

To enrich the work experience of officers. Transfers will expose officers to

different work environment as well as different facets of the banksbusiness.

The officers service regulations (OSR) makes it mandatory for an officers

to serve for two years in a rural branch and three years in a semi urban

branch to eligible for promotions.

Transfers help the bank to meet administrative requirement of filling

vacancies and effecting postings on promotion.

The following is a brief summary of some of the rules and regulations that

govern the transfers of officers in one of India s leading public sector banks:

1. Every officer is liable for transfer to any office or branch of the bank or to

any place in India.

2. In case of administrative exigencies the bank has the right to affect anytransfers whether or not in conformity with transfer guidelines.

3. Transfers may take at the regional, zonal or inter-regional level.


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4. The exact nature of what constitute a region or zone may vary from one

PSB to another PSB and is decided by the bank on based on its

business policies and strategies.

5. Inter region transfers are usually decided by the central office.

6. transfers within administrative regions are usually decided by the

regional heads

7. The normal tenure /term of an officer are 3 to 5 years. However for

specialized officers this would be 5 years.

8. No officer is to be transferred before the completion of normal term of at

least 3 years.

9. An extension beyond 5 years is considered only in exceptional cases.Even in such cases the maximum extension is of 1 year.

10. For transferring an officer before completion of the minimum terms,

reasons should be recorded and informed to the central office.

11. Request transfers on the grounds of extreme hardship would be

considered on the merits of each case. The final decision is dependent

on the transfer history, reason for request and performance of the officer

at the place of posting.

12. Representation, if any should be submitted within one week of receipts

of the order. The representations are examined by a committee at the

central office and a decision is made. The decision of the committee is a

final and further correspondence on the matter is entertained.

While executing transfers, the concerned authorities have to ensure that:

1. The transfers have been affected as per guidelines/directives receivedfrom the central office.

2. There is uniformity in application of norms.

3. Mismatch of grade scale is avoided.


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4. Sensitive posts like that of branch managers, lead bank officers are not

kept vacant.

5. Completion of rural and semi urban service norms.

6. Officers who have completed 55 years of age or more are posted at

places of minimum inconvenience. However the final decision would

depend on:

organizational needs

Suitability of the officers for the post in question.

The transfers history and past performance of the officers.

7. Lady Officers are given opportunity to intimate 3 choices places within

the transfer region/ transfer zone applicable and their postings would be

finalized taking into consideration the preferences intimated.

8. Physically handicapped officers are transferred to places of minimum

inconvenience. The final decision is made in consultation with a medical

practitioner and chief liaison officer for physically handicapped

employees.


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7.6 Promotion procedure:-

Chairman and managing director

Executive director

Scale (vii): general manager

Scale (vi): Deputy General Manager

Scale (v): assistant general manager

Scale (iv): divisional manager

Scale (iii): senior manager

Scale (ii): manager

Scale (i): officer

Special assistant

Clerk


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This system ignores the performance and potential of an

employee. There is no recognition of the hard work and efforts put in by the

employee.

(3) Efficiency suffers:

The efficiency of the organization suffers as the employees have

no incentive to improve their performance.

(4) Demotivating: A promotional system that takes in to account only the length of

service and overlooks performance kills the ambition and zeal of young and

hard working employees.

(2) Promotions based on merits:-

This system of promotion takes in to account the knowledge, skills, and

performance of an employee.

Merits:

(1) Enhances Efficiency:-

Organizational efficiency improves when it recognizes talent andperformance.

(2) Motivates:


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7.8 Promotion policies:-

The main characteristics of a good promotion policy are as follows:

(1) Policy Statement:

A sound promotion policy has a policy statement. It is a

statement of the ratio of internal promotions to external recruitments at

each level. The method and procedure of selection, and the qualification

desired.

(2) Basis of promotions:

The basis of promotion must be clearly specified. The weight ageto seniority and merit must be clearly stated. Ideally, an organization

should try to strike a balance between seniority, merit and future potential

of the employee.

(3) Communication policy:

The organization should communicate its promotion policy in

writing to the employees and the unions. If the organization is secretive

about its promotion police, employees will become suspicious of the

management s intentions.

(4) Career planning:

The promotion policy should be in line with employee career

planning. This will avoid sudden spurt of promotion followed by a drought

(long periods when there are no promotions opportunities.)

(5) Detailed Records:

A sound promotion policy ensures that detailed records of

employee service and performance are maintained.


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7.9 Promotional policies in banks:-

The policies of banks with regard to promotions vary depending upon

the scale or level at which the officer is given here below are the

promotional policies for officers at the junior management (JM) and middle

management (MM) grades.

The information given here has extracted from the Bank of India officers

associations diary (BOIAD), 2006.

Particulars JM-I to MM-II MM-II to MM-III

Seniority Merit Fasttrack

Seniority Merit

Minimum service 9 years

of

service

in JM-I

7 years

of

service

in JM-I

3 Years

of

service

in JM-I

with

CAIIB

8 years of

service in

MM-II

5years of

service in

MM-II

Out of which

services in rural

area

2 years 2 years 2 years 3 years

rural/semi-

urban

3 years

rural/semi-

urban

Allocation of

vacancy

60% 20% 20% 50% 50%

Marks allocation

Written test 50 60

Professional

qualifications

10 5


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Rural service 10

Performance

appraisal

30(last 5

years

apr)

40(last 5

years

apr)

55

Interview 40

Some of the other terms and conditions regarding promotion (according to

BOIAd, 2006) are:

1. Rural service marks will be for rural service in excess of 2 years -

5marks per years. Service in excess of 6 months but less than 2 years -2 marks.

2. Specialist officers to undergo rural service as and when he switches

over to mainstream.

3. In the fast track channel, an officer who has not completed the

minimum 2 years of service in rural branch will be considered eligible

for promotion subject to proviso that he shall complete 2 years of

service at rural branch after his promotion to scale II.

4. professional qualification marks are given for CAIIB, charted

accountant, company secretary, cost & works accountant and CFA

(5marks)

5. Officers will not be eligible, if the average marks in APR for preceding 3

years are below 40%.

6. Debarment non acceptance of promotions for the first time next

process, for second time next two processes and for third time-

permanently debarred.7. Provision for appeal for non promotion is deleted.


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Chapter 8

Performance appraisal

8.1 Definition:

According to Indian national institute of personnel management,

performance appraisal is a technique of assessing as impartially as

possible, the attributes, strengths, weakness, capacity and attitudes of

individual employee in relation to his job.

C. D. Fisher defines PA as the process by which an employee s

contribution to the organization during a specified period of time is

assessed.


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8.2 Process of Performance Appraisal:

Establishing Performanceappraisal

Communicating the standards

Measuring Performance

Comparing the actual withstandards

Discussing the appraisal

Taking corrective actions


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Process of Performance Appraisal:

(1) Establishing Performance appraisal:

The process of appraisal begins with the establishment of criteria

for evaluating the performance of employees. The criteria are established with

help of job analysis. The criteria should not be vague but should be clear and

objective in nature. The criteria should be discussed with the supervisors to

ensure that all the relevant factors have been included.

(2) Communicating the standards:

The performance standards established in the first step arecommunicated and explained to the employees so that they come to know

what is expected of them. Based on the reactions of the employees, the

standards may be modified or revised. Feedback of the employees is critical

as it avoids misunderstandings and confusion later on.

(3) Measuring Performance:

In this step the actual performance of the employee at work is

measured, it is essential to choose the right technique of measurement. The

most frequently used resources to measure actual performance are: personal

observation, statistical reports etc

(4) Comparing the actual with standards:

In this step the actual performance of the employees is

compared with the set standards. Such comparisons reveal deviations which

may be positive or negative. Positive deviations occur when the employee sactual performance exceeds the set standards. Negative deviations occur

when the employee s performance is below the set standards. The deviations

reveal the employee s strength and weakness.


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(5) Discussing the appraisal:

The results of the appraisal are communicated to and discussed

with the employee. The deviations observed in the earlier step are analyzed

and discussed with the employee. The deviations observed in the earlier step

are analyzed and discussed. The employee s s trengths and weaknesses are

indicated and discussed so that his performance improves. It is extremely

important that the appraisal discussion is done properly as it has great impact

on the employee s self esteem and affects future performance.

(6) Taking corrective actions:The last step of the performance appraisal process involves

taking corrective measures to improve the performance of the employee;

these corrective measures are taken in consultation with employees. Based on

the discussions the steps required to improve performance are identified and

initiated.


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8.3 Modern methods Performance Appraisal:-

(1) Management by Objectives:-

Management Guru Peter Drucker is credited for the

development of management by objectives, popularly known as MBO.

MBO arose as a result of dissatisfaction with traditional methods

of evaluation. Mangers viewed the task of appraisal as unpleasant one and

were unhappy when they had to conduct an appraisal interview. Also

evaluations (especially negative evaluations) made by superiors were

unacceptable to subordinates as they felt that they had not been correctly

valued.

MBO involves a mutual agreement between the employee and

supervisor on goals to be achieved in a given time. MBO focuses on results

on how well employees accomplish specified goals. The emphasis is on what

employees do rather than on what supervisors think of them. MBO actively

involves employees in their own evaluations.

MBO consists of two phases: goal settings and performance review.

(a) Goal Settings:

In this phase the employees meet their supervisors individually

to determine the goals to be achieved within a specified time and discuss

ways of reaching those specified goals. The goals are set by mutual

agreement between the supervisor and the subordinates. The goals must be

realistic, specific and as objective is possible.

(b) Performance Review:

In this phase employee and the supervisor meet after the

specified period of time and discuss to extent to which goals were met. The


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supervisor attempts to solve any problems that she subordinates faces and

new goals are set. The superior s role is that of a listener and guide but never

that of a critic.

(2) Assessment Centers:

The assessment centers in an organization is the place where

individuals are assessed in as systematic and scientific manner as possible.

An assessment center is a place specially designed and equipped for a

specific purpose appraisal.

The objective of an assessment centers is the valuation of

individuals for future growth and development. The evaluations are made noton the job but are based on observations of behavior and on the results

obtained in psychological tests. In an assessment center a through and

complete evaluation is done of the individual his strengths, weakness and

personality characteristics.

The common procedure in assessment centers is to evaluate a

small group of individuals over a period of 2 to 3 days. The group undergoes

several types of individual and group activities or exercises for 2 to 3 days

under the watchful eyes of a team of experts.

(3) Behaviorally Anchored Rating Scales (BARS):

Smith and Kendall developed the original BARS. It is also

known as behavioral expectation scales.

The development of BARS involves the following steps:

(a) Step1:The supervisors prepare a list of critical incident.

(b) Step2:


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The supervisors then group critical incidents in to small clusters

of performance dimensions such as job knowledge, leadership etc. . . . Thus

there are a number of performance dimensions (usually 5 to 10), each having

a number of critical incidents.

(c) Step3:

In this step a group of experts are called. The experts are

presented with the critical incidents prepared in step one. Their task is to

reassign or classify the critical incidents in to the same performance

dimensions.

The critical incidents that are reassigned by the majority ofexperts in the same dimension as that by the supervisors (in step 2) are

retained. While those critical incidents about which there are confusion about

the dimension to which they belong is discarded.

(d) Step4:

The experts then rate each of the surviving critical incidents on

a scale (of 7 to 9 points) as to how well they represent performance on the

given dimension. Those critical incidents for which there is high rater

agreement are retained. Those incidents for which there is a low rater

agreement are discarded.

(e) Step5:

The final form of BARS consists of critical incidents that

survived step 3 and step 4. These incidents serve as behavioral anchors for

he performance dimension scales. Thus the BARS instruments consist of aseries of scales anchored by the critical incidents.

(4) Human Assets Accounting:


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This method is still in the early stages of development. It

attempts to measure the monetary value of the human resources of the

organization.

In this method, evaluation is done in terms of costs and

contribution of employees. Costs of human resources consist of expenditure

on human resource planning, recruitment, selection, induction, training,

compensation etc. contribution of human resources is the money value of

labor productivity or value added by human resources.

The difference between cost and contribution reflects the

performance of employees.

8.4 PA form of a leading PSB:-

The annual Appraisal Report of the leading PSB consists of six parts:

Part 1- Bio data sheet

Part 2 Business dimensions (for officers in operations).

Part 3 - Performance Appraisal (for officers in Administration).

Part 4 Additional Accomplishments/outstanding achievements.

Part 5 Managerial dimensions

Part 6 Potential Review.


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9.2 HSBC s commitment to employee development : -

HSBC offers professional development, mentoring and training opportunities

to help employees develop their talents throughout their careers. Here, Jeanne

Ebersole outlines just some of the opportunities available.

Career Track:

As employees develop their talents and wish to advance their careers, our

national internal job bank provides early notice of positions available in the

company.Formal skills training: Employees can take advantage of hundreds of

business-specific and professional development training resources (classroom

instruction, self-study programs, peer training and web-based training) to help

develop and enhance their skills.

Management training programs: Through several management training

programs in our business units, we offer rotational job assignments,

mentoring, networking and formal training to high-potential employees to help

them become leaders.

Mentoring: We believe that mixing new and highly experienced employees is a

recipe for success. Our business units have implemented special mentoring

programs that pair high-potential individuals with business-savvy senior

managers to provide advice, collaborate on career development and increase

visibility with the HSBC leadership team.

Performance management process: Managers work with their employees to

set performance goals and expectations and evaluate progress toward theemployee s professional development goals. Coaching, recognition and

feedback give employees the opportunity to improve and excel.


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Training libraries: At our larger locations, employees can learn more on their

own by visiting our corporate libraries stocked with books, tapes, periodicals

and, in some cases, internet-ready personal computers.

Tuition reimbursement: We s

Documents

Human Resources Management in Banks[1].1