Upload
jassal-rinku
View
223
Download
0
Embed Size (px)
Citation preview
7/30/2019 Implementation OF HRM strategies
1/157
140
CHAPTER IV
IMPLEMENTATION OF HUMAN RESOURCE STRATEGY-
ACTION PLANS AND PRACTICES
The following Chapter dwells into the collective opinions and experiences of the Sample
Respondents which were expressed in their unique individual styles. The responses from
the Sample were assembled, tabulated, and classified to draw meaningful inferences and
are presented in a textual format coupled with Human Resource action plan and practices.
Responsiveness towards Change
Business environment has become complex and aggressive. At any given moment of time,
there are multiple forces on an organization such as competitors, customer demands,
regulatory requirements, supply upsets, and technology breakthroughs. Organizations
overcome these hurdles by anticipating change, formulating a change management strategy
and finally by successfully implementing an action plan. Failing in any one of these would
lead to loss of market share, profits in the long-term. Organizations could no longer
succeed by producing the same goods or services year after year. Instead, they must adapt
rapidly to the changing consumer demands and needs to cope with an unpredictable
existing competition. The strategic ability of an organization to respond towards these
unanticipated situations was referred to as adaptability in this Study.
7/30/2019 Implementation OF HRM strategies
2/157
141
In response to a question changes made in your organization are a reaction to
circumstances from 186 Respondents 48 percent Respondents agreed and 41 percent
Respondents strongly agreed that their organizations adapted to changes. Whereas 9
percent Respondents disagreed for adaptability toward change by their organization and 2
percent, Respondents remained neutral on this aspect (Chart IV. 1).
Without an exception, the Indian Banking Sector had undergone changes due to economic
reforms. Changes had taken place with respect to: the ownership pattern of Banks; changes
in delivery channels; and range of services provided to the customers. Banks like State
Bank of India, Punjab National Bank, Axis Bank, ICICI Bank, and HDFC Bank, have
broken the long-standing jams and started interacting in more friendly and professional
manner with their customers. Banks had started accepting online applications, which
made things easier for the aspirants.
One of a visible change symbol observed was an adoption of Bancassurance model by
Banking Organizations. Canara Bank has tied up arrangements in both life and non-life
insurance segments. In life insurance segment, Canara Bank has associated with AVIVA
Life Insurance Company India Private Limited to undertaken the marketing of life
insurance products. In non-life insurance segment, Canara Bank developed a strategic
alliance with United India Insurance Company Limited for marketing of non-life insurance
products.
7/30/2019 Implementation OF HRM strategies
3/157
142
CHART IV. 1
ORGANIZATIONS RESPONSIVENESS TO CHANGES
To Study the change, three forms of change were discussed. First, Banks needs to change
product portfolio. Product here referred to transient intermediary mechanisms through
which the markets derive value from the organization and the organization derives value
from the market. Second, process changes in Banks. Process here referred to the overall
layout of the place concerned i.e., how the Banks branches is to designed to ensure
maximum convenience to customers. Identifying the key processes which organization
may excel to add value to their services made these processes simplified. To satisfy
customers, organizations brought entirely new internal processes, which customers could
easily understand and follow it. Third form of change was organizations responding to
customer needs. In order to focus upon long-term relationship building with customers
deep knowledge of customer needs was emphasized. Due to the rapid changes taking
place, organizations needs to develop a more focused and coherent approach to manage
customers preferences. On these three forms of change, Respondents were questioned.
0%
9%
2%
48%
41%
0%
10%
20%
30%
40%
50%
60%
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Adaptability
7/30/2019 Implementation OF HRM strategies
4/157
143
In response to a question your organization has made continuous changes in its products
and services from 186 Respondents, 52 percent Respondents strongly agreed and 45
percent Respondents agreed that their organizations made changes in the products and
services offered by them. Whereas 3 percent Respondents disagreed on any kind of
product portfolio modified by their organization (Chart IV. 2).
In response to a question your organization has made continuous changes in its processes
from 186 Respondents, 58 percent Respondents agreed and 45 percent Respondents
strongly agreed that their organizations had brought changes in the processes of their
Banks (Chart IV. 2).
In response to a question your organization recognizes change in customer preferences
from 186 Respondents, 67 percent Respondents strongly agreed and 32 percent
Respondents agreed that their organizations were identifying changes taking place in
customers requirements. Whereas 2 percent Respondents disagreed on any concern
shown by their organization towards customers requirements (Chart IV. 2).
Overall Banks had undergone three major changes. As in case of traditional Banking there
existed products which were limited to drafts, telegraphic transfers, bankers cheque and
internal transfer of funds. Foreign, Private and few Public Sector Banks has also
introduced customized Banking products like investment advisory services, photo-credit
cards, cash management services, investment products and tax advisory services.
7/30/2019 Implementation OF HRM strategies
5/157
144
Today Banks have become into one-stop financial shop. For instance, ICICI Bank has
added features to their services by allowing there users to access account information over
a secure line, request chequebook and stop payment and transfers of funds on-line. ING
Vysya Banks product portfolio offered products that catered to every financial
requirement, for all life stages. ING Vysya Bank has developed the LifeMakerTM a simple
tool that helped customers to choose a plan according to their requirements of saving,
investment, or retirement and life stage of customers. State Bank of India brought an
entirely new spectrum of loan products like housing loans, car loans, personal loans,
consumer durable loans, education loans, loans against share and financing against gold.
Banks are also providing financial assistances to agriculturists, through a network of rural
and semi-urban branches and offered schemes covering a wide range of agricultural
activities like crop loan, finance to horticulture, farm mechanization schemes, land
development schemes and irrigation project loans.
Payment processes exercised by Banks are very different from the conventional methods.
Due to the introduction of technology based processes different methods have evolved by
which customers could make payments. Different methods of payment today are - cash,
cheque, demand drafts, credit cards, debit cards, and electronic payments. Electronic
payments could be made in the form of Electronic Funds Transfer (EFT), Electronic
Clearing Service (ECS) for small value repetitive payments and through Real Time Gross
Settlement (RTGS) System for large value payments. Customers could make payment as
per their convenience, with the help of any processes.
7/30/2019 Implementation OF HRM strategies
6/157
145
Banks like State Bank of India, ICICI Bank,HDFC Bank, and many others Banks has
become systematic and simpler to solve customers problems. Customer just needs to walk
in the Banks branch and press the key related to his problem and machine automatically
allocates the concern person from the branch to the customer, according to the type of
problem of the customer. This has helped customers to save time and to overcome his
hesitation and lack of knowledge about Banking processes. Bank of India has developed a
customer centric infrastructure layout that enabled Bank to provide increased customer
service levels with ability to attract new customers and manage customers with the help of
Core Banking Solutions across branches.
To respond towards changing customers preferences Banks managed informations
related to their: customers profiles, location and cash position; customers preferences;
and complaints. Banks had also focused on region-specific campaigns rather than national
media campaigns due to diversity in country like India. Another region-specific effort
made by Banks was to use local languages on Automated Teller Machines. As customers
found it much easier to operate in their local languages. Banks also noted down customers
recommendations and inquired from customers about their impression about the services.
All Commercial Banks including Public Sector Banks has understood the importance of
customer retention.
7/30/2019 Implementation OF HRM strategies
7/157
146
CHART IV. 2
MAJOR CHANGES IN BANKS
Nature of Change Strategic in Banking Organizations
Change accepted as an opportunity and a right perspective of the change might slice
competitive edge over the competitors for the organization. The question here arises
whether Change in Banks was strategic or not? If organization predicts changes, coming
ahead in the business from the study of influences of various environmental factors; that
means that organization is strategic. Different natures of change required different
strategies to be adopted by organizations. If organization initiates for future environmental
developments, one could state that the nature of change is strategic in the organization and
this aspect referred to aspredictability in this Study.
0% 0 0%3%
0 2%0% 0% 0%
52%
58%
32%
45%48%
67%
Change in Product
Portfolio
Process Changes in
Banks
Organization's
Responding to Customer
Needs
Strongly Disagree Disagree Neutral Agree Strongly Agree
7/30/2019 Implementation OF HRM strategies
8/157
147
In response to a question your organization is able to anticipate changes, either internal or
in external environment 74 percent Respondents agreed and 26 percent Respondents
strongly agreed that their organizations were predictable with concern to changes which
organization might come across in future (Chart IV. 3).
Respondent responses were further corroborated by the following observations: Banks are
investing in the state of the art technology that ensured reliable service delivery; structural
changes has taken place in Banks, prominently in Public Sector Banks; top-level strategic
planning cells analyzed aspects related to technology up-gradation for instance, in Banks
like Canara Bank, Union Bank of India and ICICI Bank.
Customer feedback and data collection was carried specifically in State Bank of India
where customers could register their complaints through a touch screen device placed at
the Banks branch that collected customers feedback. Further, this feedback machine
transferred the stored information for processing and to be utilized by management to
know how operations were carried. Another strategic approach adopted by Branch
Managers was that they conducted conferences to acquaint employees about existing and
expected environmental threats and opportunities. Almost all Public, Private and Foreign
Banks has adopted systematic approaches towards environmental diagnosis including
volatile changes in world financial markets and caution steps taken towards these changes.
7/30/2019 Implementation OF HRM strategies
9/157
148
CHART IV. 3
PREDICTABILITY OF CHANGEIN BANKS
Towards being strategic, organizations must follow the law of change to survive in this
competitive era. Due to changing internal and external environment, rapid changes
occurred in the organizations. Organizations needed to have four main aspects with respect
to adjustment towards change. First,significance of change means organizations needed to
view change as a vital constituent of their survival strategy. Second, Change as a process,
means change could not be looked as with specific beginning or ending, suggesting
changes should flow like stream through time 1. Third, change management means
involvement of management to manage change. As support from management plays key
role to carry the processes of changes. Management helps to change employee attitudes
from avoidance to acceptance. Fourth, change as continuous means implementation to be
uninterrupted. To get insight on these four aspects Respondents were questioned on these.
0% 0% 0%
74%
26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
StronglyDisagree Disagree Neutral Agree StronglyAgree
Preditability
7/30/2019 Implementation OF HRM strategies
10/157
149
In response to a question your organization recognizes change as a crucial act from 186
Respondents , 72 percent Respondents agreed and 28 percent Respondents strongly
agreed that their organization considered change as a vital component (Chart IV. 4).
In response to a question change is thought of as a process in your organization from 186
Respondents, 74 percent Respondents agreed and 26 percent Respondents strongly
agreed that their organizations perceived change as process. (Chart IV. 4).
In response to a question change management involves top-management support from
186 Respondents, 60 percent Respondents agreed and 40 percent Respondents strongly
agreed, that management of their organization played an important role in bringing
changes (Chart IV. 4).
In response to a question change is implemented on a continuous basis in your
organization from 186 Respondents, 76 percent Respondents agreed and 16 percent
Respondents strongly agreed that their organizations implemented changes on
continuous basis whereas, 8 percent Respondents disagreed on change implementation in
their organizations (Chart IV. 4).
These finding were further corroborated by the following aspects: management talked with
employee representatives, union leaders about issues like- introduction of technology into
the work practices, additional allowances or variable remunerations to staff, changes in
branch timings or working hours ; change curriculum has been included as a component in
staff training programmes; bank circulars, newsletter explaining imperativeness of changes
were circulated, showing the significance of change to Banking Industry.
7/30/2019 Implementation OF HRM strategies
11/157
150
Considering change being an essential factor, Banks had taken up skill up-gradation
throughproper training and re-training to keep their workforce efficient enough to takeup
the challenges due to the environmental changes unfolding every day. Training
programmes on change management were organised by Banks like Bank of India, Kotak
Mahindra Bank, Vijaya Bank, UCO Bank, and ICICI Bank with institutes like Indian
Institute of Finance and Banking (IIFB), National Institute of Banking Management
(NIBM). Due to change, sometimes even employees might need to even unlearn their past
knowledge and re-orient themselves to the present knowledge.
Banks considered change as a process. For this reason, Banks hired outside specialist or
consultants for changes occurring in their organizations. Banks faced changes due to
acquisition or mergers taking place in order to achieve increased market presence. Apart
from these Banks, undergo continuous changes due to the technological changes.
Banks developed state of the art accounting softwares like Online Tax Accounting
Systems (OLTAS), specifically implemented by Bank of Baroda. This software helps to
collect taxes on the behalf of Central Board of Direct Taxes, Government of India. Banks
using software needs to upgrade their Information Security Management System to ensure
confidentiality. These security systems included firewalls, anti-virus, centralized domain
controlling, application security, database security, and other measures, which prevent fund
transfer frauds. This raised the need of technological changes as technology becomes
obsolete if not updated.
7/30/2019 Implementation OF HRM strategies
12/157
151
Other types of changes implemented by Banks included for instance, financial systems like
Basel I in which Banks were focused on credit and market risks. Basel II implementation
endeavoured Banks to constantly upgrade their risk management systems to address the
changing environment. Banks, implemented 24* 7 Banking nationwide and worldwide to
cope changes in the requirements of their customers. For example, ING Vyasa opens on
Sundays, ICICI opens from 8 a.m. to 8 p.m. on weekdays and provided 24 hour customer
service. Oriental Bank of Commerce service branch in Delhi required their officers to work
in Morning Shift, between 6 a.m. to 1p.m. and in the Evening Shift, from 2 p.m. to 9 p.m.
for this employees were given inconvenience allowance Rs. 2, 500/- per month to motivate
them to work in odd hours.
ICICI Bank has successfully brought and implemented various changes to overcome the
effects of recession during 2008- 2009. ICICI Bank clearly communicated the
organizations position and strategies to its customers, investors, regulators, and
employees. This open communication also acted as a significant confidence building
measure among stakeholders in the background of a volatile environment and ensured
stability. In Indian Bank (IB) Human Resource Practices, beginning from hiring to
retirement was brought under SAP software. The Hong Kong Shanghai Banking
Corporation (HSBC) and ICICI Bank has introduced uniform for their employees in the
branches operating in India. Both these Banks implemented change successfully.
7/30/2019 Implementation OF HRM strategies
13/157
152
CHART IV. 4
IMPLEMENTATION OF CHANGE IN BANKS
Performance Influenced by Strategic Intent
Performance standards help organizations to know, the strengths and weaknesses of their
organizations. Thus, defining outcome metrics clearly identified the gaps existing in the
organizations performance. Performance of organizations largely depended on policies,
processes, and their effective implementation. Banking Organizations achieving their
tangible and intangible objectives referred to asperformance in this Study.
0% 0% 0% 0%0% 0% 0%
8%
0% 0% 0% 0%
72% 74%
60%
76%
28%
26%
40%
16%
Significance of
Change
Change as a Process Change
Management
Change as
Continuous
Strongly Disagree Disagree Neutral Agree Strongly Agree
7/30/2019 Implementation OF HRM strategies
14/157
153
In response to question your organization is able to achieve both tangible and intangible
goals from 186 Respondents, 71 percent Respondents agreed and 15 percent
Respondents strongly agreed that their organizations were able achieve performance
objectives. Whereas 14 percent Respondents disagreedthat, their organizations failed to
achieve the performance standards (Chart IV. 5).
Banking Sector has recorded marked improvement, as Non Performing Loans (NPL) has
declined and Banks profitability levels has trended upwards 2. Banks had built up their
assets size and diversified their product ranges from rural to urban products, along with
diversification internationally. For instance, Bank of Indias net profit reached Rs. 3007
crore over and above the profit level of Rs. 2009 crore in 2008. The operating profit of the
Bank went up by 47.45 percent from Rs. 3701 crore in 2007-08 to Rs. 5457 crore in 2008-
09. The Returns on Assets reached the benchmark level of 1.0 percent 3. Besides financial
measurements, Banks realized that its revenue comes from their customers who are willing
to pay for the values provided to them by the organizations. Further, the performance
improvements were also indicated by the increased market share, customer retention,
customer acquisition, and customer satisfaction in Banking Industry.
CHART IV.5
PERFORMANCE OF BANKS
0%
14%
0%
71%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Performance
7/30/2019 Implementation OF HRM strategies
15/157
154
As we discussed performance of an organization, at its backdrop lies Strategic Intent. Thus,
defining Strategic Intent of an organization for Business or for Human Resource Strategy
provided sense of purpose and direction to organizations. Strategic Intent could be
expressed with the help of following components: the vision serves the purpose of stating
what the organization wishes to achieve in the end .Vision statement also guided
employees about the services that they have to provide to their customers; the mission
statement that defines the basic reason for the existence of the organization. The mission
statement mentions about its purpose, the nature of business and customers it seeks to
serve and satisfy; the values and principles that defines the personal values and helps
employees to match their values with the organizational values and principles. Thus,
defining the values and principles helped to avoid the situations of conflict and confusion.
Organizations reflected the values in words like teamwork, communication, innovation or
quality;thegoalsprovide guidance, direction, facilitate in planning, motivation and helps
organizations to evaluate and control performance. Goals formulated by organizations
needed to be realistic which were achievable by employees; and the objectives defined, as
strategic objectives which are guide to organization towards growth plans and financial
objectives are related to the financial achievements of the organization. Thus, identifying
organizations existing vision, mission, values and principles, goals and objectives gave a
logical starting point for strategic management because these clearly presented situation
and condition of organizations. To get insight on Strategic Intent aspects, Respondents
were questioned accordingly.
7/30/2019 Implementation OF HRM strategies
16/157
155
In response to a question on employees are well aware of their respective service level
agreements from 186 Respondents, 80 percent Respondents agreed and 12 percent
Respondents strongly agreed that they were aware about the purposes of their services.
Whereas, 6 percent Respondents disagreed on any specific purposes being stated by their
organizations to be achieved by employees and 2 percent Respondents remained neutral
on this aspect (Chart IV. 6).
In response to a question your organization has a purpose of existence in the society from
186 Respondents, 67 percent Respondents agreed and 20 percent Respondents strongly
agreed that their organizations had a particular purpose to serve to the society. Whereas,
13 percent Respondents disagreed on any purpose that their organizations aimed at
(Chart IV. 6).
In response to a question core values and principles are clearly defined in your
organization from 186 Respondents, 72 percent Respondents agreed and 18 percent
Respondents strongly agreed that they are aware about the values and principles that they
have to adhere to, while working in the organization. Whereas, 10 percent Respondents
disagreed on values and principles defined to them (Chart IV. 6).
In response to a question organizational goals are realistic from 186 Respondents, 54
percent Respondents agreed and 13 percent Respondents strongly agreed that the goals
defined to them were realistic. Whereas, 33 percent Respondents disagreed about goals
defined were realistic (Chart IV. 6).
7/30/2019 Implementation OF HRM strategies
17/157
156
In response to a question Mergers/Acquisitions, Integration/Diversification are considered
important strategies for growth in your organization from 186 Respondents, 56 percent
Respondents agreed and 14 percent Respondents strongly agreed that their
organizations aimed to achieve higher growth objectives through merger, acquisition,
integration and diversification. Whereas, 27 percent Respondents disagreed and 2 percent
Respondents strongly disagreed that the growth plans formulated did not specified about
the strategic aims of the organization and 1 percent Respondents remained neutral on this
aspect (Chart IV. 6).
In response to a question financial objectives of your organization such as revenue,
earnings or return on investment etc. are achievable and realistic from 186 Respondents,
64 percent Respondents agreed and 13 percent Respondents strongly agreed that their
organizations had achieved the financial objectives, already defined. Whereas, 23 percent
Respondents disagreed suggesting that their organizations were not able to achieve
financial objectives (Chart IV. 6).
Banks have begun to explain strategic vision to their employees. For instance, Indian Bank
defines its vision as first choice of the common manand to achieve this vision employees
need to know how to achieve this vision of their organization. To reach to the common
man Indian Bank has opened an exclusive Core Banking Solution branch along with online
bio-metric voice guided Automated Teller Machine facilities in Dharavi, Mumbai, to target
a large number of migrant workers who were under the unbanked sector from many
decades and covered 770 villages under financial inclusion project (2006-07)4.
7/30/2019 Implementation OF HRM strategies
18/157
157
Banks also stressed on defining the purpose statement, which also acted as a guideline for
structuring strategies. For instance, Yes Bank in their mission statement emphasized
towards their commitment to add long-term value to the Society. Apart from vision and
mission, every Banks branch managerdefine role to their employees that consisted of set
of goals to be achieved by them in a particular period. Further, these goals were defined in
terms of financial objectives like Return on Investment (ROI) and Return on Equity
(ROE). Finally, clearly defined goals and objectives reduced the difficulty in the
coordination of the activities and events. In context of Human Resource Department, the
vision of Human Resource Department in some Banks is to have excellent people for their
organization. The mission of Human Resource Departments could be to achieve strategic
aims and business plans through the resourcing, development, and motivation of
workforce. Banks had the following values and principles: right people in the right job;
continuous improvement; compliance with the law; treating people with respect, fair and
equitable practices and work-life-balance.
CHART IV. 6
RESPONDENTS RESPONSE ON STRATEGIC INTENT
0% 0% 0% 0%2% 0%
6%13%
10%
33%27%
23%
2% 0% 0% 0%
15%
0%
80%
67%72%
54% 56%
64%
12%
20% 18%13% 14% 13%
Vision Mission Values and
Principles
Goals Strategic
Objectives
Financial
Objectives
Strongly Disagree Disagree Neutral Agree Strongly Agree
7/30/2019 Implementation OF HRM strategies
19/157
158
Human Resource Strategy and Organization Change
To meet the challenges due to change, organizations needed to focus on appropriate
capacity building measures to handle advanced risk management system and to equip
themselves with appropriate skills.Human Resource Strategy, calls for reviewing and
reengineering the Human Resource functions, both at the level of corporate Human
Resource Division and at the level of branch managers to proactively manage people at
work. Human Resource Strategy defined as a co-ordinated set of actions aimed at
integration of organizational resources 5. Thus, it is essential that Human Resource
Strategies and Change intertwined with each other. Human Resource personnels may
suggest best Human Resource Strategy, which could combine resources and behaviour to
their best with the organizational changes.
In response to a question resources are utilized in a synergetic manner from 186
Respondents, 70 percent Respondents agreed that in their organization various resources
were managed to produce higher results .Whereas, 18 percent Respondents disagreed that
their exist hardly any combined fruitful effect of the resources present in their organization
(Chart IV. 7).
7/30/2019 Implementation OF HRM strategies
20/157
159
CHART IV. 7
HUMAN RESOURCE STRATEGY IN BANKS
Existence of change has emphasized the existence of Human Resource Strategies in the
organization. The change factors that Banking Organizations has to face are: workforce
demographic changes which are complex to understand. These exist in the organizations
due to the diversity of the workforce; changes in employee expectations due to changing
social values ; technological changes are taking place at a faster rate and Banks are
required to make review of the arrival of new tasks, techniques, and the skills associated
with these ; organizational restructuring due to downsizing, mergers and closure
intermediaries. Organizational restructuring bring in major realignments among culture,
vision, values, strategy, structure, and management system; changes in customers means
the changes taking place in the needs of customers; and changes in the economic
conditions of an organization due to uncertainties existing in the external environment. To
get insight on organization change Respondents were thus, questioned.
0%
18%
0%
70%
11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
StronglyDisagree Disagree Neutral Agree StronglyAgree
Human Resource Strategy
7/30/2019 Implementation OF HRM strategies
21/157
160
In response to a question diversity exists within your organization workforce from 186
Respondents, 52 percent Respondents strongly agreed and 41 percent Respondents
agreed that workforce diversity existed in their organization. Whereas, 5 percent
Respondents disagreedand 2 percent Respondents strongly disagreed on existence of
diversity among the workforce in their organization (Chart IV. 8).
In response to a question employee expectations change continuously from the
organization from 186 Respondents, 63 percent Respondents agreed and 22 percent
Respondents strongly agreed that changes in the employees expectations had occurred.
Whereas, 13 percent Respondents disagreed on any kind of variations that had occurred
with respect to employee expectations in their organizations and 2 percent Respondents
remained neutral on this aspect (Chart IV. 8).
In response to a question technological changes are appreciated and absorbed with
swiftness from 186 Respondents, 49 percent Respondents agreed and 41 percent
Respondents strongly agreed that the technological changes were adopted by their
organizations speedily. Whereas 8 percent Respondents disagreed on technological
changes being appreciated by their organizations and 2 percent, Respondents remained
neutral on this aspect (Chart IV. 8).
In response to a question there have been change in your organization structure owing to a
restructuring from 186 Respondents, 71 percent Respondents agreed and 20 percent
Respondents strongly agreed that organizations structure had changed resulting into
restructuring of their organizations (Chart IV. 8). Whereas, 7 percent Respondents
7/30/2019 Implementation OF HRM strategies
22/157
161
disagreed on any structural changes taken in their organizations and 2 percent
Respondents remained neutral on this aspect (Chart IV. 8).
In response to a question customers preferences have changed in the past few years from
186 Respondents, 48 percent Respondents agreed and 34 percent Respondents strongly
agreed that change in customer preferences had been observed. Whereas 11 percent
Respondents disagreed and 3 percent Respondents strongly disagreed that their
organization had hardly paid attention towards the changes in the customer preferences and
4 percent Respondents remained neutral on this aspect (Chart IV. 8).
In response to a question your organizational plans and policies are influenced by Indias
economy from 186 Respondents, 60 percent Respondents agreed and 26 percent
Respondents strongly agreed that their organizational plans and polices were influenced
by changes in the economic conditions. Whereas, 13 percent Respondents disagreed that
their organizations were not influenced due to the changes in the economic conditions and
1 percent Respondents remained neutral on this aspect (Chart IV. 8).
In the context of organizational changes, it was observed that Banks workforce constituted
of different age groups, people from different castes, religions, and gender. The Private
Sector Banks were transparent on employment terms and boosted job opportunities for
employment of women. Banking Sector encouraged a high recruitment rate for women, as
these jobs were perceived to provide a better stability, lesser travel, regular working hours,
and a secure working environment, dissimilar from many other fields of jobs. Women like
Naina Lal Kidwai of the HSBC Bank, Shikha Sharma of the Axis Bank, and Chanda
Kochhar of ICICI Bank were encouraged to take up top management positions.
7/30/2019 Implementation OF HRM strategies
23/157
162
Employees expectations had changed from the traditional allurements such as job security,
attractive remuneration, and housing to the employees wanting more information about
their organizations, to know reasons behind managers decision and they want to be valued
and personally recognized for their contributions.
Banks constantly face changes in technology and accordingly some of them have
reconfigured the skill mix of their employees. The Public, Private, and Foreign Banks had
adopted technology and benefited with respect to quality of risk management systems,
better service delivery, improved handling of accounts and remittances and reduced
operation cost in spite of vast expansion strategy adopted by them. For instance, Dena
Bank has launched several technology enabled services like Dena bill-pay, Dena M-
banking, Dena internet banking, Multi-city cheque facility and value added services
through Automated Teller Machine.
Union Bank of India has brought value added services like- online ticketing of air and rail,
online tax payment, online trading of shares, online bill payments, online Demat
information apart from the regular Banking services. With the introduction of technology,
jobs had become more broad based and this made it mandatory on the part of Human
Resource Management to train workers and to replace them in time. Human Resource
Management plays an important role in selection and induction of competent people, and
motivating them to perform at higher levels of efficiency, by providing them mechanisms
that ensured that they maintain their affiliation with the organization.
7/30/2019 Implementation OF HRM strategies
24/157
163
Banks had realigned their existing human resource and readjusted staffing patterns. Due to
the advent of computerization clerical and subordinate staffs were in excess in each Bank.
Jobs were designed and restructured for Banks to get flattened organization structure,
which also encouraged work innovation in the organizations. Surplus staff was relocated or
reassigned with the job duties to overcome surplus manpower. Mobility of the staff was
recommended and on this aspect, management had negotiated with employees and
persuaded them, as mobility of staff improves organizational efficiency and productivity.
Not only Public Sector Banks like State Bank of India, Punjab National Bank, Canara
Bank and Central Bank of India but also Foreign Banks like Standard Chartered Bank and
BNP Paribas periodically introduced volunteer retirement schemes to get rid of extra flab 6.
Economic changes also influenced organizations and were mainly analyzed by top
management. Human Resource Managers played a key role to scan and study the direct
and indirect influences of these economic uncertainties on the Human Resource Strategies.
In relation to this, Human Resource Managers adopted role of protector and screener in the
Banking Industry. Economic uncertainties brought the change of interest rates, mergers
and acquisition plans, reorganizations or relocation of Bank branches, and changes in
bonus incentives of employees. For instance, ICICI Bank viewed economic changes and
accordingly adopted a conscious strategy for building of stable and low cost funding base
by consolidating their balance sheets and setting clear targets. This resulted into
moderation of business volumes which helped Bank to position better and regain their
growth cycle 7.
7/30/2019 Implementation OF HRM strategies
25/157
164
CHART IV. 8
ORGANIZATION CHANGE VARIABLES INFLUENCING BANKS
0% 0% 0% 0%3%
0%5%
13%
8% 7%
11%13%
0%2% 2% 2% 4% 1%
41%
63%
49%
71%
48%
60%
54%
22%
41%
20%
34%
26%
WorkforceDemography
EmplyoeesExpectations
Technology OrganizationalRestructure
Changes inCustomers
EconomicConditions
Strongly Disagree Disagree Neutral Agree Strongly Agree
7/30/2019 Implementation OF HRM strategies
26/157
7/30/2019 Implementation OF HRM strategies
27/157
166
Any organization could be called as people centric organization if it adapts people centric
strategies. To build employees relationship, organizations need to practice following
strategies: teamwork, information sharing, creativity, participation, empowerment, quality
of work-life, workplace feedback, employee management relationship/collective
bargaining, grievance handling, and career progression planning. To strengthen
relationships with employees, organizations need to provide benefits to their employees
like - flexible benefits, flexi work arrangements, health and safety and working conditions.
Various employees related strategies are discussed.Teamworkhere referred to as a set of
values that encouraged behaviour such as listening and responding co-operatively to
viewpoints expressed by others and providing support for organizational achievements .
Along with teamwork, employees needed to be well informed thus raising the significance
of the information sharing. Sharing information helped to remove confusion and resistance
among employees. Information flow needs to be clear and consistent to generate trust and
cooperation among employees of the organization and to sustain competition organizations
need to allow their employees to work with creativity.
Stronger employee relationship stimulates employees to devise decisions that affected
organizations well being. Initiative nature of employees allowed employees to take work
related decisions covering issues like work methods, task assignments and performance
outcomes. Thus, organizations needed to practice participative style to be a people
centric organization. In order to motivate employees to make decisions and participate,
employees needed to be empoweredby their organizations. Apart from empowerment,
quality of work- life needed to be improved to increase employees satisfaction by
strengthening workplace learning and managing change transitions.
7/30/2019 Implementation OF HRM strategies
28/157
167
Further workplace feedback encourages understanding, acceptance, and ultimately
behavioural modification among employees. It creates a timely opportunity to identify
potential trouble and rectify if any mistake existed. Researchers had also emphasized that
there should be a report after performance analysis of an employee and at the end detailed
results and recommendations based on the analysis of resources and participants feedback8.
Thus, work place feedback helps to develop better understanding.
Work place feedback will be fruitful if employee-management relationship/collective
bargainingwere encouraged by the organizations in which representatives of management
and workers negotiate on terms and conditions of employment. Though cooperation may
exist in an organization, still conflicts may arise in the organization due to day-to-day
working, which could be handled with the help of grievance handling procedures.
Grievance handling procedures allowed employees to ventilate their feelings. Thus,
organizations needed to have a proper grievance resolution and handling procedure.
Lastly, for an organization to be a people centric organization it requires to have career
progression, as it aligns employees needs with career opportunities available within the
organization.
In response to a question consistent joint efforts from superiors, peers and subordinates is
present during day to day functioning from 186 Respondents, 76 percent Respondents
agreed and 20 percent Respondents strongly agreed that in their organizations seniors,
peers and subordinates provided support to each other at work place. Whereas 4 percent
Respondents disagreed that, hardly any joint efforts were made by employees in their
organizations (Chart IV. 10).
7/30/2019 Implementation OF HRM strategies
29/157
168
In response to a question information from top management is clear and consistent from
186 Respondents, 76 percent Respondents agreed and 20 percent Respondents strongly
agreed that their organizations emphasized on the consistent and clear information flow.
Whereas, 4 percent Respondents disagreed on any kind of emphasizes been made by their
organizations on the sharing of information (Chart IV. 10).
In response to a question your organization encourages employees to provide creative
suggestions from 186 Respondents, 63 percent Respondents agreed and 19 percent
Respondents strongly agreed that their creative suggestions were encouraged by their
organizations. Whereas, 13 percent Respondents disagreed and 1 percent Respondents
strongly disagreed that hardly creative suggestion were heard or promoted by their
organizations, and 4 percent Respondents remained neutral on this aspect (Chart IV. 10).
In response to a question your organization encourage participative style from 186
Respondents, 77 percent Respondents agreed and 9 percent Respondents strongly
agreed that their organizations practiced participation. Whereas 13 percent Respondents
disagreed that employees were hardly motivated to participate in the decision- making
(Chart IV. 10).
In response to a question your job gives you enough prospects to resolve problems from
186 Respondents, 78 percent Respondents agreed and 9 percent, Respondents strongly
agreed that they were allowed to take decisions within ones area of operations. Whereas,
11 percent Respondents disagreed suggesting that the job of employees hardly provided
any prospects to resolve problems at the workplace and 2 percent Respondents remained
neutral (Chart IV. 10).
7/30/2019 Implementation OF HRM strategies
30/157
169
In response to a question improvement in quality of life of employees and customers is
emphasized from 186 Respondents, 63 percent Respondents agreed and 23 percent
Respondents strongly agreed that quality of life was emphasized by their organizations.
Whereas, 14 percent Respondents disagreed that hardly any emphasize was made to
improve the quality of work-life for employees (Chart IV. 10).
In response to a question feedback is provided to employees in a regular and planned
manner from 186 Respondents, 64 percent Respondents agreed and 25 percent
Respondents strongly agreed that they were provided proper feedback in their
organizations. Whereas, 9 percent Respondents disagreed that hardly any emphasize was
given on work-related feedback and 2 percent Respondents remained neutral on this
aspect (Chart IV. 10).
In response to a question conflicts occur sometime between employees and management
from 186 Respondents, 55 percent Respondents agreed and 22 percent Respondents
strongly agreed that in their organizations there existed cooperation among employees
and management. Whereas 15 percent Respondents disagreed and 1 percent Respondents
strongly disagreed that hardly any cooperation existed between employees and
management this aspect hinted towards existence of conflicts between employees and
management 7 percent Respondents remained neutral on this aspect (Chart IV. 10).
7/30/2019 Implementation OF HRM strategies
31/157
7/30/2019 Implementation OF HRM strategies
32/157
7/30/2019 Implementation OF HRM strategies
33/157
172
ICICI Bank has specifically empowered their newly joined employees and provided
complete authority to them to handle their job roles. After two weeks of an orientation
programme employee were given assignments and were motivated to make decisions in the
very first week itself. Apart from employee participation, ICICI Bank practised
performance feedback sessions to improve performance of their employees. During
feedback, process employees were made aware of problem areas and were made to
understand the consequences of the problem behaviour.
Kotak Mahindra Bank has developed a simpler way for feedback named as Kotak
Integrated Sales and Service System (KISSS) worked as an online application, which
defined the action plan for their employees. This online application consisted of details
related to relationship calling, daily sales report, and appointment schedules. This software
also sends weekly details about the performance scores and indicated employees lagging
point so that employees could quickly work upon on the same before the end of the month.
Kotak Integrated Sales and Service System clearly predicted the performance of their
employees portfolio.
To overcome employees discontent the joint consultative committees were set up at
different levels. In Banks, a grievance procedure has become an integrated part of the
policy to promote better relationship between management and employees. For instance,
Bank of Baroda has introduced a help-line directly connected to Chief Executive Officers
office for those employees who faced any sort of crucial problems. ICICI Bank has started
staff space on the intranet where employees could participate in collaborative activities
such as- contributing documents, engaging in discussions and posting or answering queries
leading towards better cooperation.
7/30/2019 Implementation OF HRM strategies
34/157
7/30/2019 Implementation OF HRM strategies
35/157
174
CHART IV. 10
EMPLOYEE DEVELOPMENT RELATIONSHIP STRATEGIES
0%
0%
1%
0%
0%
0%
0%
1%
0%
0%
23%
16%
15%
9%
14%
13%
11%
13%
18%
4%
1%
1%
7%
2%
0%
1%
2%
4%
0%
0%
66%
67%
55%
64%
63%
77%
78%
63%
63%
76%
10%
16%
22%
25%
23%
9%
9%
19%
19%
20%
Career Progression
Grievances Handling
Employee-management
Cooperation
Workplace Feedback
Quality of Work-life
Empowerment
Participation
Creativity
Information Sharing
Teamwork
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
7/30/2019 Implementation OF HRM strategies
36/157
7/30/2019 Implementation OF HRM strategies
37/157
176
In response to a question employee family friendly polices like childcare, flexible work
time are realized from 186 Respondents, 49 percent Respondents agreed and 8 percent
Respondents strongly agreed that they were provided with benefits like medical,
insurance and retirement. Whereas, 31 percent Respondents disagreed and 9 percent
Respondents strongly disagreed that hardly any emphasis was given towards flexible
benefits for employees, and 3 percent Respondents remained neutral (Chart IV. 11).
In response to a question Programmes/campaigns on health awareness or related issues are
regularly conducted from 186 Respondents, 56 percent Respondents agreed and 27
percent Respondents strongly agreed that regular health related programmes had taken
place in their organizations. Whereas, 17 percent Respondents disagreed that hardly any
health awareness programmes were carried by their organizations (Chart IV. 11).
In response to a question working conditions provided to employees are good from 186
Respondents, 46 percent Respondents agreed and 51 percent Respondents strongly
agreed that the working conditions provided by their organizations were good . Whereas,
3 percent Respondents disagreed that hardly any emphasis was being made by their
organization on working conditions and 1 percent Respondents remained neutral on this
aspect (Chart IV. 11).
Private and Foreign Banks has introduced practices like parent leave, flexible working
hour and supportive childcare polices. These practices provided sympathetic understanding
and material aid to their employees to deal with stressful situations. Access to flexible
scheduling helped employees to manage their work and family and increased job
satisfaction and lowered their work-family conflicts.
7/30/2019 Implementation OF HRM strategies
38/157
177
For instance, HSBC Bank offered flexible working hours to their staff instead of
conventional days per year basis. HSBC Bank also provided on-line job share register,
which enabled employees to form a professional job sharing partnership. The Bank has
offered flexible working arrangements to around 10 percent of their employees that was
6,500 workforce 9.
Retirement benefit like pension is provided to employees of Public Sector Banks as one of
the major benefit to employees.Public Sector Bank employees are eligible to receive a
benefit pension equivalent to 50 percent of their last salary drawn. In this, few variations
might exist from one Public Sector Bank to another. For instance, SBI Bank employees
received 40 per cent of their last salary drawn in the form of pension, provident fund and
gratuity 10.
Public Sector Banks also provided medical benefits to their employees like medical
expenses incurred on diseases. For medical benefits Banks tied with hospitals at major
centers in India like Delhi, Mumbai and other metro cities where employee and his family
members could walk-in. In these hospitals, reserved beds were kept for employees and
their dependents.
Banks also emphasized on the health issues like physical health, mental health, stress
management, Acquired Immune Deficiency Syndrome (AIDS), alcoholism and drug abuse,
and violence at work place. Fitness programmes and employees assistance to prevent
health problems and health hazards that might occur were suggested to employees.
7/30/2019 Implementation OF HRM strategies
39/157
178
Most of the Public Sector Banks conduct medical check-up for their employees of 45 years
of age and above once in 2 years in the approved diagnostic centre. Bank employees work
on computer for more number of hours thus, the risks associated are highlighted to
employees by their organizations.
Apart from these, recently after the instance of 26 November 2009, Mumbai terror attack,
few Banks quickly offered a team of psychologists to their employees as a proactive
measure to provide relief and reduce stress among employees. Banks also stressed upon the
security of their employees, thus, they periodically reviewed implementation of security
arrangements at branches. Security arrangements included, installation of time lock at the
cash safe and constant observations were made by installation of Close Circuit TV (CCTV)
to monitor and record the movements inside the branch premises round-the-clock.
CHART IV. 11
BENEFITS TO BANK EMPLOYEES
21%18%
0% 0%
23% 24%
17%
3%0%
3%0% 1%
51%47%
56%
46%
5%8%
27%
50%
Flexi-benefits Flexi-work
arrangements
Health Promotion Working
Conditions
Strongly Disagree Disagree Neutral Agree Strongly Agree
7/30/2019 Implementation OF HRM strategies
40/157
179
Effectiveness of Human Resource Practices required Human Resource Strategies
Human Resource Practices depend on having the right Human Resource Strategy.
Organizations need to consider relevant Human Resource Strategy to achieve
effectiveness. Effectiveness of Human Resource Practices in this Study means how well
the Human Resource Practices were implemented .
In response to a question there existed effective Human Resource Practices in your
organization from 186 Respondents, 73 percent Respondents agreed and 12 percent
Respondent strongly agreed that in their organizations, Human Resource Practices were
implemented and well practised. Whereas 15 percent Respondents disagreed that, hardly
their organizations practised well formulated Human Resource Practices (Chart IV. 12).
CHART IV. 12
EFFECTIVENESS OF HUMAN RESOURCE PRACTICES IN BANKS
0%
15%
0%
73%
12%
0%
10%
20%
30%40%
50%
60%
70%
80%
StronglyDisagree
Disagree Neutral Agree StronglyAgree
Effectiveness of Human Resource Practices
7/30/2019 Implementation OF HRM strategies
41/157
180
Human Resource Strategy in organizations acted as an active endeavour that managed
people and their skills with the immediate and long-term aims of the business in their
mind. The following Human Resource Strategies were studied in the backdrop of Banking
Industry: manpower planning predominantly incorporated the number crunching. The
manpower requirements change, due to the new emerging areas of operation and
geographical dispersion nature of this industry; cost controlling of manpower helps to
maximize productivity and minimise output cost per unit with the help of human resource
budget; talent acquisition referred to as the policies and programmes that ensured that
organization gets and keeps talent it needed ; deployment helps to overcome surplus or
excess staff in Departments resulting into effective deployment of resources so that they
could handle positions handed over to them ;job profile and designatingemployees in well
planned mannermake employees accountable for their decisions, for the job assigned to
them;skill up-gradation helps employees to provide an environment in which employees
were encouraged to learn and develop as organizations required their employees to
perform in complex situations on multiple tasks; appraisal of employees helps to measure
employees efficiency for the job assigned to an employee. Measuring performances of
employees also helped to gain productivity for organizations; Compensation signifies that
the rewards given to employees were as per their performance to encourage employees to
contribute towards the fulfilment of the company goals. Understanding the workforce and
recognizing what their employees find rewarding acts as, an effective reward; promotion
policies help to motivate employees by means of reward systems contributing to increase
productivity. Motivation through, rewards also contributed towards higher market value of
the company and positively related to employees satisfaction and commitment; managing
workforce diversity maximizes the utilization of employees potential and recognized the
differences among workforce.
7/30/2019 Implementation OF HRM strategies
42/157
181
Thus, organizations need to successfully manage different groups; and finally outsourcing
services such as hiring, training and many other services helps to overcome complexities
and competition of business environment. To get insight on Human Resource Strategies
prevailing in Banking Organizations Respondents were questioned.
In response to a question manpower planning is efficient in terms of right person at the
right place and at right time from 186 Respondents, 65 percent Respondents agreed and
2 percent Respondents strongly agreed that organizations used their manpower to the best
by placing right person at right place and at right time. Whereas 31 percent Respondents
disagreed that, there existed hardly any proper utilization of the manpower (Chart IV.
13).
In response to a question there are strategies to control personnel cost to as low as
possible from 186 Respondents, 72 percent Respondents agreed and 16 percent
Respondents strongly agreed that their organizations designed strategies towards
controlling the manpower cost. Whereas, 13 percent Respondents disagreed, indicating
that their organizations did not paid attention towards cost reduction (Chart IV. 13).
In response to a question your organization is able to attract the best talent from 186
Respondents, 62 percent Respondents agreed and 21 percent Respondents strongly
agreed that their organizations were able to attract best talent available in the market.
Whereas, 17 percent Respondents disagreed that their organizations lacked in attracting
the cream talent from the market (Chart IV. 13).
7/30/2019 Implementation OF HRM strategies
43/157
182
In response to a question employees are provided guidance and given training from 186
Respondents, 73 percent Respondents agreed and 10 percent Respondents strongly
agreed that in their organizations they were guided and provided with knowledge to work
in new areas .Whereas 17 percent Respondents disagreed that hardly any emphasis was
given to guide employees for new responsibilities (Chart IV. 13).
In response to a question employees take responsibilities of the decisions made by them
from 186 Respondents, 53 percent Respondents agreed and 44 percent Respondents
strongly agreed that they were assigned job profiles and designations appropriately.
Whereas, 2 percent Respondents disagreed that they were not clear about their job
profiles and their designations and 1 percent Respondents remained neutral on this aspect
(Chart IV. 13).
In response to a question there is a continuous effort to improve skills and competency of
employees from 186 Respondents, 48 percent Respondents agreed and 42 percent
Respondents strongly agreed that their organizations emphasized on improving
employees competencies and skills. Whereas 9 percent Respondents disagreed that, their
organization hardly emphasized on talent improvement and 1 percent Respondents
remained neutral on this aspect (Chart IV. 14).
In response to a question employees efficiency is closely measured from 186
Respondents, 70 percent Respondents agreed and 19 percent Respondents strongly
agreed that in their organizations their performances was monitored continuously.
Whereas 11 percent Respondents disagreed that, their organizations hardly paid any
attention to measure employees efficiency (Chart IV. 13).
7/30/2019 Implementation OF HRM strategies
44/157
183
In response to a question better performance is facilitated by rewarding employees from
186 Respondents, 58 percent Respondents agreed and 34 percent Respondents strongly
agreed that in their organizations rewards were linked to performance of an employee.
Whereas, 6 percent Respondents disagreed and 2 percent Respondents strongly
disagreed that hardly any emphasis was made on reward based performance by their
organizations (Chart IV. 13).
In response to a question recognition, rewards are as per merit and on long-term basis
from 186 Respondents, 67 percent Respondents agreed and 16 percent Respondents
strongly agreed that their organizations gave recognition and reward as per merit.
Whereas 17 percent Respondents disagreed that, hardly their organizations considered
merit as a basis to reward their employees (Chart IV. 13).
In response to a question all groups of the workforce are equally managed (age, gender,
race, religion etc)from 186 Respondents, 69 percent Respondents agreed and 16 percent
Respondents strongly agreed that in their organizations all different groups were
managed well . Whereas, 15 percent Respondents disagreed that hardly their
organizations paid attention towards managing diversity with respect to age, gender, race
and religion (Chart IV. 13).
In response to a question processes like hiring, training have been outsourced from 186
Respondents, 53 percent Respondents agreed and 44 percent Respondents strongly
agreed that theirorganizations had outsourced services. Whereas 3 percent Respondents
disagreed that hardly any services were outsourced (Chart IV. 13).
7/30/2019 Implementation OF HRM strategies
45/157
184
Respondent responses were further corroborated with the observations. Banks viewed
manpower planning as integration of strategic and operational plans to ensure future
staffing needs. Public Sector Banks manpower planning focused mainly on the number of
staff members and employees who would be required in the middle management. These
manpower planning were mostly quantitative in nature and determined number of staff
members that Banks would required to recruit for the next few years.
Banking Organizations are continuously reviewing their existing manpower requirements
to manage changes in the market conditions and to keep inventory of skilled personnel to
be utilized for the emerging job requirements. On the basis of revised requirements, Bank
of Baroda and Punjab National Bank recognized the requirement of two Executive
Directors to handle operations of Banks, as these two Banks were very large Banks. For
the purpose of manpower planning Banks had taken help of technology. For instance, State
Bank of India being one of the largest Bank in India has developed Human Resources
Management System also known as SBI HRMS Portal, which helped in doing resource
planning effectively and also reduced the cost factors related to manpower.
A decade back Banks faced a lot of Human Resource wastage due to the disparities
between the demand and supply of manpower. Today Banks are making efforts to
overcome these challenges by preparing details such as: surplus personnel existing in one
unit; same skilled personnel again employed in another unit without any redeployment of
surplus employee; and over employment resulting into assigning of work to workers below
their abilities and capacities leading towards wastage. Mostly Private and Foreign Banks
has well prepared Human Resource budget. As a result, their business per employees was
higher as compared to Public Sector Banks.
7/30/2019 Implementation OF HRM strategies
46/157
185
Public Sector Banks recruited mostly staff, for which they advertised in the local and
national newspapers and conducted written test, group interviews for selecting candidates.
Banks are also fulfilling the requirements internally by reassignment, re-allocation of the
responsibilities and even internal promotions for their internal candidates. Public Sector
Banks like State Bank of India, Punjab National Bank, Bank of Baroda, Allahabad Bank,
UCO Bank and Canara Bank recruit employees at following levels: Clerks, Junior
Management Grade ScaleI, Middle Management Grade ScaleII, Middle Management
Grade ScaleIII, Senior Management Grade ScaleIV and Top Executive Grade Scale-
V. For these Banks, Banking Services Recruitment Board (BSRB) invite applications for
various posts like - clerks, typist and agriculture clerks and many other for the respective
regions.
Banks like ING Vysya Bank, Deutsche Bank, Barclays Bank and Kotak Mahindra Bank
identified and cultivated strategic talent pools from various resources like universities,
management schools, and community forums. Business Head, Human Resource Head, or
Chief Executive Officer approves recruitment activities in these Banks. Expenditures were
budgeted and pre-approved by Business Unit Heads and Human Resource Heads. One of
the Respondents from HDFC Bank mentioned that to end bulk recruitment they followed
recruitment programmes in following ways: banking on internal network by using talent
pool; and banking on external network by using job portal, direct sourcing, Bank website,
placement agencies, job fairs, print media, and campus hiring. Innovative Human Resource
recruitment processes aided by the latest technology backed all these programmes.
7/30/2019 Implementation OF HRM strategies
47/157
186
Banks constituted a huge number of job profiles, which has different responsibilities
associated with them. Different job profiles existed were: customer service, front desk,
cash handling, probationary officer, loan officer, personal loan officer, home loan officer,
home loan agent, loan manager, loan processing officer, accountant, product marketing and
sales executive, recovery officer, retail asset manager, property appraiser, customer service
executive and many others. For instance, job profile of Loan Officer in Canara Bank
includes checking the eligibility of the individuals seeking loans from the Bank. Evaluation
of loan application and probability of loan repayment by customer verified. After this loan
officer recommend or approve loan. HDFC Bank, Relationship Representatives promote
different products and services offered by their Bank. Relationship Representatives were
responsible for opening and closing accounts and keeping a record of all the financial
transactions. Bank of America, Senior Operational Risk Specialist develops risk
management tools, database and prepared appropriate risk metrics and reports. They were
also required to lead process changes at individual unit level.
Skill up-gradation is an important area for Banks. SBI Bank has Strategic Training Unit
(STU) focused on skill up gradation of employees in view of expansion, changing business
environment, and competition. Employees had to attend a two-week training programme
once in 18 to 24 months. This training unit also provided training programmes to other
Public Sector Banks and some Foreign Banks on their request on cost-to-cost basis 11.
7/30/2019 Implementation OF HRM strategies
48/157
7/30/2019 Implementation OF HRM strategies
49/157
188
Chinatrust Commercial Bank provided training to their staff for supervisory roles in
different fields. The supervisory skill training programme included people management,
performance management, presentation and communication skills, and change
management. Finally, skill-building strategies are aimed to achieve following objectives:
developing service orientation; focusing on the customers needs ; collaborating with the
client ; awareness about customers satisfaction ; skills to seek information about the real
underlying needs of the customers ; and development of skills to rapidly changing
environment .
Indian Banks Association suggested re-naming Annual Confidential Reports as Annual
Performance Assessment Reports and its contents to be shared with the officer
concerned12. There also existed a provision in this report that if any employee does not
agree with the appraisal grading then they are free to raise their comments against the final
grading, but within a stipulated period of receiving the report. Mostly Banks carried
appraisal processes once in a year. But, there also existed few Banks like ICICI Bank in
which performance appraisal was carried out twice a year and on the other hand, HDFC
Bank does it regularly with the help of Management Information System with which
performance was calculated and monitored across the regions and branches. Centurion
Bank of Punjab has online appraisal system used for conducting performance appraisals
during the year.
7/30/2019 Implementation OF HRM strategies
50/157
189
The appraisal report constituted of appropriate list of objectives, which could clearly
demonstrate the performance of an employee. For instance, State Bank of India appraisal
form consisted of two parts. Part A consisted of details regarding employees duties and
responsibilities, objectives to be achieved by employees in a stipulated period of time,
employees capabilities in different areas required for the current role requirements (Scale:
1 to 3 poor, 4 to 6 satisfactory, 7 to 9 good, 10 excellent), and employee job aspirations;
and Part B consisted of details listed by appraiser on appraises objectives achieved,
appraises career direction options and wishes, and readiness for promotion. It also
constituted of key responsibility areas considered such as: loan disbursement, bad loan
recovery, fee-based income, and the number of new account added were used for
evaluation of employee performance 13.
Private Sector and Foreign Sector Banks has given competition to Public Sector Banks as
they offered much more attractive pay components. Public Sector Banks followed an
industry-wide norm fixed by Indian Banks Association in consultation with Government
of India, Ministry of Finance, New Delhi 14. Salaries offered by Private and Foreign Banks
included a significant variable component linked to performance and this resulted into
salary differential as high as 200 to 400 per cent. Government fixes the salaries for Public
Sector Bank chiefs. Private Banks needed a clearance from Reserve Bank of India for
remuneration to their top executives, but there existed no cap on it.
7/30/2019 Implementation OF HRM strategies
51/157
7/30/2019 Implementation OF HRM strategies
52/157
191
Banks had adopted policy measures to achieve greater participation from women
employees. Women had taken employment in Banks on a priority basis as these
organizations had gender sensitive work culture and relatively unrestricted environment
with flexible timings. For instance, following Banks showed impressive malefemale
ratios employed in their organizations: HSBC Bank male-female gender ratio was
64.5:35.5 in India out of which 50 percent of the top managers were women. HSBC Bank
has also set up a task force of 100 employee s consisting largely of women business heads,
to pursue gender diversity 18; ICICI Bank has 70:30 male-female ratios; Axis Bank claimed
that in metro branches, there ratio was even higher at 40 percent; Standard Chartered Bank
male-female ratio of employees in India was 69:31. Private and Foreign Banks were ahead
of Public Sector Banks with a healthy ratio of 30 percent 19. On the other hand Public
Sector Banks provided job reservations to scheduled castes, scheduled tribes, other
backward classes, disabled persons, and ex-defence and para-military personnel.
Banking Industry had experienced the need of infusion of some developmental services
from outside to augment the internal knowledge capacities. Banks had adopted outsourcing
strategies due to the following reasons- it helps in cost reduction through process
improvement and control; it helps Banks to concentrate on its core business areas instead
of back office operations; it helps to make services flexible to meet the changing
customers requirements. For instance, IndusInd Bank has entered into an infrastructure-
on-demand agreement with IBM India, which included building an Information
Technology infrastructure, implementing server consolidation, and setting up disaster
recovery systems. This partnership also supported Banks goal to become totally customer-
centric by providing more secure, responsive, and efficient services. It also allowed Bank
to scale up the operations and pursue aggressive growth plans as well.
7/30/2019 Implementation OF HRM strategies
53/157
192
CHART IV. 14
HUMAN RESOURCE STRATEGIES IN BANKS
0%
0%
0%
2%
0%
0%
0%
0%
0%
0%
0%
3%
15%
17%
6%
11%
9%
2%
17%
17%
13%
31%
0%
0%
0%
0%
0%
1%
1%
0%
0%
0%
0%
53%
69%
67%
58%
70%
48%
53%
73%
62%
72%
65%
44%
16%
16%
34%
19%
42%
44%
10%
21%
16%
4%
Outsourcing
Managing Workforce Diversity
Promotion Policies
Compensation Realignment
Appraisal of Emplyoees
Skill up-gradation
Job Profile and Designation
Deployment
Talent Acquisition
Cost Controlling of Manpower
Manpower Planning
Strongly Agree Agree Neutral Disagree Strongly Disagree
7/30/2019 Implementation OF HRM strategies
54/157
193
Customer retentionwas emphasized repeatedly to employees, because without customers
an organization would not have any revenues, profits, and consequently no market value.
Customer orientation among employees needs to be included as it helps to build customer-
oriented attitude of employees. Thus, organizations must emphasize to consider their
customers as valuable. Employees learning how to build customer relationship help
employees to select the right kind of customer. As it could not, be desirable or even
possible to create relationship with all customers. To learn to build relationship with
customers employees need to accurately identify changing customer needs and develop
new complex products to satisfy their needs and to provide higher levels of customer
services. Thus, product innovation has emerged as a significant feature to meet needs of
customers.
A greater use of Human Resource Practices was associated with the higher level of
productivity and excellent services. Quality services in Banks referred to as right service at
the first time. Apart from quality services, Banking Organizations need to provide
convenient services to their customers. Thus, organizations services procedures needed to
be as per customers handiness. Ultimately, all these strategies helped to achieve customer
satisfaction. To get insight on customer relationship strategies Respondents were
questioned on these.
In response to a question each customer is considered valuable from 186 Respondents, 65
percent Respondents agreed and 26 percent Respondents strongly agreed that they
considered each customer as valuable and paid attention towards relationship building.
Whereas 9 percent Respondents disagreed that, their organizations were not vigilant on
customer relationship building (Chart IV. 14).
7/30/2019 Implementation OF HRM strategies
55/157
7/30/2019 Implementation OF HRM strategies
56/157
195
In 2009, Bank launched another programme; Citizen SBIaimed at attitudinal change and
transformation of their employees, through a series of Human Resources activities. Union
Bank of India conducted Customer Day in all their branches on 15th of every month
where employees interacted with customers. Customer empowerment through customer
education was the key tool adopted by Banks. Towards this end, Bank had come out with a
Citizens Charterin September 1997. Citizens Charter encompassed most of the Bank
operations. This has been prepared to promote fair Banking practices and to give
information with respect to various activities, related to customer services.
Union Bank of India, HDFC Bank, ICICI Bank, Axis Bank and many other Banks have
provided call centre services to their customers. In these call centres, customers could
record complaints and deficiencies in the services provided to them by Bank. Banks had
also enabled online grievance redressal mechanism whereby grievances could be lodged
online for speedy redressal of any complaint. In addition to these Banking Codes and
Standard Board of India (BCSBI) had set minimum standards to be practised by Banks
while dealing with individual customers. These standards provided protection to customers
and explained to Banks how to deal with customers for their day-to-day operations. Banks
provided clear information about their products and services and details about the terms
and conditions like interest rates or any service charges. In order to make exchange of
information easier Banks provided information to their customers in Hindi, English or
other appropriate local language.
7/30/2019 Implementation OF HRM strategies
57/157
196
The customer-oriented strategies helped Banks to retain customers and improve quality of
services. Banks benefited as increased investment in technology to handle complaints of
customers was prompt. Customer-oriented strategies also benefited customers by moving
customers to lower cost automated channels, such as Automated Teller Machines and
online Banking to make services convenient for customers.
CHART IV. 14
CUSTOMER RETENTION STRATEGIES BY BANKS
0% 0% 0%
5%9%
1%
8%11%
0% 0% 0% 1%
65%
44%
58%
73%
26%
55%
35%
9%
CustomerRelationship
Product Innovation Service Quality Convenient Services
Strongly Disagree Disagree Neutral Agree Strongly Agree
7/30/2019 Implementation OF HRM strategies
58/157
197
Cross-cultural Differences Influencing Human Resource Strategy Formulation and
Implementation
Management of cultural diversity needs to be included in theHuman Resource Strategy
enabling the effective management of workforce differences created due to demographical
changes. Human Resource Strategies must be aligned with the cultural differences because
organizations cannot treat their workforce as a homogeneous workforce. Thus, Human
Resource Strategies formulated should have inclination towards the cross-cultural
differences existing in their organization.
In response to a question while formulating Human Resource Strategies, are cultural
differences between headquarters and branches considered from 186 Respondents, 56
Respondents agreed and 15 percent Respondents strongly agreed that cultural
differences were included in the Human Resource Strategies. Whereas 20 percent
Respondents disagreed and 2 percent Respondents strongly disagreed that hardly any
cultural differences were included in the Human Resource Strategies, and 6 percent
Respondents remained neutral on this aspect (Chart IV. 15). Even during various seminars
and summits Human Resource practitioners and key Banking, personnels has mentioned
that organizations need to take seriously into account the cultural differences.
7/30/2019 Implementation OF HRM strategies
59/157
7/30/2019 Implementation OF HRM strategies
60/157
199
performance. Third, control process refers to how people to be treated 21. It is essential that
organizations approach of controlling their employees must be acceptable to their
employees, according to their cultural backgrounds. Fourth,formality refers to how the
exchange of information took place. Fifth, there should be both upward and downward
communication with the use of appropriate communication channels in the organization.
Sixth, differences existing among workforce with respect to identity. This refers to whether
employees identified themselves with their organizations22
. Signifying that in
organization individual must view themselves with organizations. To get insight on cross-
cultural aspects Respondents were questioned on these.
In response to a question differences in opinions are accepted liberally among employees
from 186 Respondents, 77 percent Respondents agreed and 9 percent Respondents
strongly agreed that their opinions were accepted liberally in their organizations.
Whereas, 13 percent Respondents disagreed that hardly any attention was paid towards
employees opinions and 1 percent remained neutral on this aspect (Chart IV. 16).
In response to a question completing an assigned task timely is considered as a significant
measure in your organization from 186 Respondents, 48 percent Respondents agreed
and 41 percent Respondents strongly agreed that they completed their tasks within the
stipulated time period assigned to them. Whereas 11 percent Respondents disagreed that,
hardly any importance was given towards completion of task on time by their
organizations (Chart IV. 16).
7/30/2019 Implementation OF HRM strategies
61/157
200
In response to a question your organization have a well defined structure for decision-
making from 186 Respondents, 81 percent Respondents agreed and 8 percent strongly
agreed that the way they were controlled in their organization was acceptable to them.
Whereas, 9 percent Respondents disagreed that they did not liked the way employees
were commanded and 2 percent Respondents remained neutral on this aspect (Chart IV.
16).
In response to a question managers and co-workers provide mutual support from 186
Respondents, 53 percent Respondents agreed that information flow in their organization
was irrespective of hierarchy levels. Whereas, 45 percent Respondents disagreed and 2
percent Respondents strongly disagreed that communication flow was strictly within the
hierarchy levels (Chart IV. 16).
In response to a question your organization allow open communication to employees
from 186 Respondents, 63 percent Respondents agreed and 18 percent Respondents
strongly agreed that they could communicate openly. Whereas, 15 percent Respondents
disagreed and 2 percent strongly disagreed that they were hardly allowed to express
freely and 1 percent Respondents remained neutral (Chart IV. 16).
In response to a question there exist shared purpose among employees from 186
Respondents, 77 percent Respondents agreed and 10 percent Respondents strongly
agreed that they identified themselves with their organizations. Whereas, 11 percent
Respondents disagreed that they did not viewed themselves associated with the
organization and 2 percent Respondents remained neutral on this aspect (Chart IV. 16).
7/30/2019 Implementation OF HRM strategies
62/157
201
Respondent responses were further corroborated by the following observations:
Organization and individuals time orientation needed to be matched for better
performance. Time emphasis might differ from Public Sector to Private Sector to Foreign
Sector Banks. Even in few advertisements Banks had shown emphasis on time for their
organizations. It was recognized that top leadership of organizations clearly determined the
time orientation for the organization as a whole, so that the decision-making and assigned
tasks completion move in consistent manner within organization. Another difference,
which gave rise to conflict, was the ways in which employees were controlled. Mostly in
Private and Foreign Sector Banks and in few Public Sector Banks, Bank Managers were
visible to their employees, for example by walking and gathering information. However,
managers who commanded too obviously or involved themselves in the work details of
employees might de-motivate employees who take pride and honour in their work.