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A
RESEARCH PROJECT REPORT
ON
“COMPARATIVE ANALYSIS OF RECRUITMENT
PROCESS IN PUBLIC BANKING SECTOR & PRIVATE
BANKING SECTOR”
TO BE SUBMITTED TO UTTAR PRADESH TECHNICAL,
UNIVERSITY, LUKCNOW. IN THE PARTIAL FULFILLMENT
OF THE REQUIREMENT FOR THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATIONBatch 2013-15
UNDER THE GUIDANCE OF: SUBMITTED BY:
Mr. PRAVEEN MALIK Eesh A!r"#
$H.O.D.% M!. De'. GBIT( R)## N). *++,,,--/
MBA IV Se0
GYAN BHARTI INSTITUTE OFTECHNOLOGY,
1
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MEERUT
2
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DECLARATION
I am Eesh A!r"# hereby declare that the project titled “COMPARATIVE
ANALYSIS OF RECRUITMENT PROCESS IN PUBLIC BANKING SECTOR &
PRIVATE BANKING SECTOR” is my own work and efforts which is completed
under the supervision of Mr. Pr1ee2 M#34 5H.O.D.% M2!e0e2 De'r0e2%
GBIT Meer67.
The Research report has been submitted to UPTU% L6842)" for the purpose of the
compliance of any requirement of any examination or any degree earlier
Eesh A!r"#
R)## N). *++,,,--/
MBA IV Se0
!
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ACKNO9LEDGEMENT
It is my pleasant duty to offer my service acknowledgement to those honorable
personalities of the department who have been a constant source of help and
encouragement in carrying out this research
"irst of all I wish to express my indebtness to Mr. Pr1ee2 M#34 5H.O.D.%
M2!e0e2 De'r0e2% GBIT Meer67 for his valuable suggestions and guidance
throughout the Research
I would like to mention few names# which helped me a lot with their valuable suggestion
and information to complete the research
$t last I feel extremely grateful to all those persons who helped me directly or indirectly
in doing the survey# generating demand and preparing the report
EESHA AGAR9AL
%
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PREFACE
The purpose of my research report was to learn the practical application of Recruitment
&rocess and its importance in &ublic 'ector along with the (R policies of &ublic 'ector which prides itself to be the market leader
)hile carrying out the study I have gained a good amount of knowledge and insights of
how (R department works but I have touched the tip of iceberg There was more to learn
but due to constraint of time it was not possible The (R* manager has to work with the
missionary spirit +nlike many roles in an organi,ation where tangible short- term
benefits can be obtained# it is difficult for (R* functionary to demonstrate any tangible
short- term accomplishment .et (R* managers are tempted to show to the top
management# line manager and themselves that they are making things happen through
training program# recruitment/ selection
In &ublic 'ector a meticulously natural team stands at the very heart of the group %#000
&ersonnel evince perfect camaraderie $ steadfast dedication to qualify an attainment of
maximum team potential is the touchstones of the ank
The ank is engaged in constant learning process through intensive selection and training
program Indeed# the aspiration is to shape a winning team of self motivated# empowered#
professionals with knowledge and confidence to take independent decision &ublic 'ector
recogni,es each employees individuality# ability and efforts and also applauds for their
contribution to the success of the group
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CONTENTS
TOPIC
1 4xecutive summary 5-6
2 Introduction 7-3!
! 8bjective of the study 3%-3%
% Research methodology 33-37
3 *ata analysis 39-61
5 "indings 62-6%
6 :onclusions 63-67
7 ;imitations 69-70
9 Recommandations and 'uggestions 71-76
10 ibliography 77-79
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EECUTIVE SUMMARY
The recruitment procedure of the ank determines the level of achieving organi,ational
goals in the long run $s per definition it is stated that which is all about selecting right
person for the right job at the right time at the best possible position $lthough it sounds
quite simple but it is also not an easier job to evaluate a person with his ability and skills
that may satisfy the core competency for the job so that his degree of willingness to
pursue a job becomes positive "rom job seekers prospective it is the core competencies#
which matter much for a job 'o it is the effective recruitment procedure# which
determines not only the right candidature for a job but also a long-term accomplishment
of organi,ational goals
I have choosen &ublic 'ector for studying their methods of recruitment function In the
course of study I came to know that# it has the probability of achieving more than 30= of
the people to be placed for the right job# which reflects some of the unique ways for
recruiting the candidates to fill up various vacancies
The aim of the ank is to achieve overall organi,ational goal not only by way of fulfilling the targeted top-line but also employee satisfaction towards various position of
job to the maximum level This I will see as I proceed subsequently in my Research
asically recruiting is the discovering of potential candidates for actual or anticipated
organi,ational vacancies It also can be said in another way that bringing together those
with jobs to fill and those seeking jobs
It is important to study Recruitment because through it I can identify our human resource
needs I can know what kind of people must be select to fill up the specified vacancies
The ideal recruitment effort will attract a large number of qualified applicants who will
take the job if it is offered It should also provide information so that unqualified
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applicants can self select themselves out of job candidacy# that is# a good recruiting
program should attract the qualified and not attract the unqualified
Recruiting people is done by various ways# for the study first I have to know the
recruiting sources There are internal and external sources as well as employee
referrals>recommendation
In this Research I am studying recruitment process of &ublic 'ector To find out actual
recruitment process of ank is my main objective of study
Through this kind of surveys I will be able to achieve real recruitment program of the
ank where for all kinds of operational level technical qualification is needed I also have
the picture of 'election cost of the ank It is very interesting to study recruitment
process as it will give me clearer picture of the process
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INTRODUCTION
The recruitment procedure of the ank determines the level of achieving organi,ational
goals in the long run $s per definition it is stated that which is all about selecting right
person for the right job at the right time at the best possible position $lthough it sounds
quite simple but it is also not an easier job to evaluate a person with his ability and skills
that may satisfy the core competency for the job so that his degree of willingness to
pursue a job becomes positive "rom job seekers prospective it is the core competencies
which matter much for a job 'o it is the effective recruitment procedure which
determines not only the right candidature for a job but also a long-term accomplishment
of organi,ational goals
In my research as I go further I come to know the different techniques adopted by
the software ank towards this effect I have chosen 4(;# for studying their methods of
recruitment function In the course of my study I came to know that# it has the
probability of achieving more than 30= of the people to be placed for the right job#
which reflects some of the unique ways for recruiting the candidates to fill up various
vacancies
The &ublic 'ector of the ank is to achieve overall organisational goal not only by way
of fulfilling the targeted top-line but also employee satisfaction towards various position
of job to the maximum level This I will see as I proceed subsequently in my Research
RELEVANCE OF RECRUITMENT PROCEDURES IN HR
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Recruitment procedure is a vital factor of an organi,ation If it is not done properly the
production procedure will be hampered (ence productivity will fall down 'o the
organi,ation will be in trouble and it will affect the employer- employee relationship 'o
recruitment procedure should be done in proper and correct manner The new candidates
should replace the vacant post so that the production of the ank does not hamper y
this the productivity will increase and the organi,ation will profit 'o the employer will
be happy and will not hesitate to distribute bonus and increments to the workers The
workers will also be more motivated to work (ence there will be harmonious
relationship in the organi,ation It will also stabili,e the organi,ation in the long run
9HY I CHOSE RECRUITMENT FOR MY STUDY ;
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asically recruiting is the discovering of potential candidates for actual or anticipated
organi,ational vacancies It also can be in another way that bringing together those with
jobs to fill and those seeking jobs
It is important to study Recruitment because through it I can identify our human resource
needs I can know what kind of people must be select to fill up the specified vacancies
The ideal recruitment effort will attract a large number of qualified applicants who will
take the job if it is offered It should also provide information so that unqualified
applicants can self select themselves out of job candidacy# that is# a good recruiting
program should attract the qualified and not attract the unqualified
Recruiting people is done by various ways# for the study first I have to know the
recruiting sources There are internal and external sources as well as employee
referrals>recommendation
In this Research I am studying recruitment process of &+;I: '4:T8R# (aridwar To
find out actual recruitment process of ank is my &ublic 'ector objective of study
Through this kind of surveys I will be able to achieve real recruitment program of the
ank where for all kinds of operational level technical qualification is needed I also have
the picture of 'election cost of the ank It is very interesting to study recruitment
process as it will give me more clearer picture of the process
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THEORETICAL OVERVIE9
Re8r630e2 is the discovering of potential applicants for actual or anticipated
organisational vacancies managers in determining recruiting sources such as image of the organisation# internal policies# attractiveness of the job# union requirements#
government requirements and recruiting budgets
P)'6#r s)6r8es )= re8r6332! e0'#)>ees include 32er2# ser8h% ?1er3se0e2s%
e0'#)>ee re=err#s% e0'#)>0e2 !e283es% s8h))#s% 8)##e!es 2? 6231ers33es@
'r)=ess3)2# )r!23s3)2s 2? 8s6# )r 62s)#383e? ''#382s. In practice#
recruitment methods appear to vary according to job level and skill
Proper selection can minimise the costs of replacement and training# reduce legal
challenges# and result in more productive workforce The primary purpose of selection
activities is to predict which job applicant will be successful if hired *uring the selection
process# candidates are also informed about the job and the organisation
The discrete selection process would include the following? 3233# s8ree232! 32er13e"%
8)0'#e3)2 )= he ''#383)2 =)r0% e0'#)>0e2 ess% 8)0'rehe2s31e 32er13e"%
84!r)62? 321es3!3)2s% 'h>s38# e0323)2 2? =32# e0'#)>0e2 ?e83s3)2. In
the discrete selection process# an unsuccessful performance at any stage results in the
rejection of the applicant
An alternative to the discrete selection process is the comprehensive approach, where
all applicants go through every step in the selection process and the final decision is
based on a comprehensive evaluation of the results of each stage To be an effective
predictor# a selection device should be reliable# valid and predict a relevant criterion
Selection devices provide managers with information that will help them predict whether
an applicant will prove to be a successful job performer The ''#383)2 #24 is
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effective for acquiring hard biographical data# while the weighted application can provide
information for predicting job success
Tr?33)2# ess that assess intelligence# abilities and personality training can predict job
proficiency but suffer from being non-job related 8n the other hand# 32er13e"s
consistently achieve low marks for reliability and validity B84!r)62? 321es3!3)2s
are valuable when they verify hard data from the application# although they offer little
practical value as selection devices Ph>s38# e0323)2s are valid when training
physical characteristics are required to be able to perform a job effectively
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INTRODUCTION
BANKING SECTOR
"inancial sector reforms were initiated as part of overall economic reforms in the country
and wide ranging reforms covering industry# trade# taxation# external sector# banking and
financial markets have been carried out since mid 1991 $ decade of economic and
financial sector reforms has strengthened the fundamentals of the Indian economy and
transformed the operating environment for banks and financial institutions in the country
The most significant achievement of the financial sector reforms has been the marked
improvement in the financial health of commercial banks in terms of capital adequacy#
profitability and asset quality as also greater attention to risk management "urther#
deregulation has opened up new opportunities for banks to increase revenues by
diversifying into investment banking# insurance# credit cards# depository services#
mortgage financing# securiti,ation# etc $t the same time# liberali,ation has brought greater
competition among banks# both domestic and foreign# as well as competition from mutual
funds# @":s# post office# etc
BANKING IN INDIA- originated in the first decade of 17th century with The
Aeneral ank of India coming into existence in 1675 This was followed by ank of
(industan oth these banks are now defunct The oldest bank in existence in India is the
'tate ank of India being established as The B24 )= Be2!# in :alcutta in Bune 1705
$ couple of decades later# foreign banks like :redit ;yonnais started their :alcutta
1%
http://en.wikipedia.org/wiki/18th_centuryhttp://en.wikipedia.org/wiki/1786http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/1786http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/18th_century
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operations in the 1730s $t that point of time# :alcutta was the most active trading port#
mainly due to the trade of the ritish 4mpire# and due to which banking activity took roots
there and prospered The first fully Indian owned bank was the $llahabad ank # which was
established in 1753
y the 1900s# the market expanded with the establishment of banks such as &unjab
@ational ank # in 1793 in ;ahore and ank of India# in 1905# in Cumbai - both of which
were founded under private ownership The Reserve ank of India formally took on the
responsibility of regulating the Indian banking sector from 19!3 $fter IndiaDs
independence in 19%6# the Reserve ank was nationali,ed and given broader powers
In terms of quality of assets and capital adequacy# Indian banks are considered to have
clean# strong and transparent balance sheets relative to other banks in comparable
economies in its region The Reserve ank of India is an autonomous body# with minimal
pressure from the government
:urrently# India has 77 scheduled commercial banks E':sF - 27 public sector banks Ethat
is with the Aovernment of India holding a stakeF# 29 private banks Ethese do not have
government stakeG they may be publicly listed and traded on stock exchangesF and !1
foreign banks They have a combined network of over 3!#000 branches and 16#000 $TCs
$ccording to a report by I:R$ ;imited# a rating agency# the public sector banks hold over
63 percent of total assets of the banking industry# with the private and foreign banks
holding 172= and 53= respectively
13
http://en.wikipedia.org/wiki/1850http://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/1865http://en.wikipedia.org/wiki/1900http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/1906http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/1935http://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/1850http://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/1865http://en.wikipedia.org/wiki/1900http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/1906http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/1935http://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machine
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STRUCTURE OF BANKING SYSTEM
*ifferent countries of the world have different types of banking
systems (owever# commercial banking had grown under all these banking systemsTo
understand the structure of banking system# let us take up various types of
banking systems one by one These types are?
E1F+@IT $@HI@A ? +nit anking or ig ina ted in the +ni ted 'ta te of
$mer ica I t grew in the +ni ted 'ta tes of $mer ica $s a counter par t of
independent or industr ial units
$n independent unit bank is a corporation that operates one office and that is not related
to other banks through either ownership or control
'haper# 'olomon and )hite Thus under unit banking# a single bank is a complete
organi,ation in itself having its own management The scale of operation is
small and the area isrestricted to a locality only +nit banking is locali,ed
banking and is muchmore responsive to the needs of the loca li ty It has be tter
understanding of the local problems and conditions# which helps it to cater to the needs
of thearea in a better way The staff of the unit bank is generally local and is in
a better position to determine the standing or desirability of the
cus tomers The fai lure of the un i t bank w i l l not end anger th e bank ing
sys tem and economy I t i s f r ee f rom the d i f f i cu l t i es and d i seconomies
of la rge sca le operations It will not drain out the financial resources of villages and
smalltowns to big industrial centers and will ensure a balanced growth
E2F R$@:( $@HI@A?
4 c o n o m i c a n d C a n a g e r i a l p r o b l e m s f a c e d b y t h e u n i t b a n k s l e tt o t h e emergence of banking system @ow# This the most popular and
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important banking system In branch banking# a bank has a large network of
branches c a t t e r e d a l l o v e r t h e c o u n t r y r a n c h b a n k i n g d e v e l o p e d
i n 4n g l an d 'ubs equen t ly mos t o f t he count r i es o f t he wor l d adop t ed
the sys tem In terms of branches# the 'tate ank of India has emerged as one of the
largest banks in the world$s under the system the resources of a number of branches get
pooled under the same management# any individua l branch is in a be tter
posi tion to face excess ive wi thdrawa ls by the cus tomers I t f ac i l i ta t e s
diversification of activities because the area covered by the branches is generally
widespread +nd er the syste m b ranc hes can ope rate with out kee ping
large id le cash reserves It becomes possible for the bank to hire the services of
competent a n d p r o f e s s i o n a l l y q u a l i f i e d m a n a g e r s # c a p a b l e o f
u n d e r s t a n d i n g t h e handling technical problems and complex situations The cost of
remitting or transferring funds from one place to another works out to be less
The s taff s tays at a branc h only for a l i mi ted p er iod# so the c hances of
8bj ec t ive decision making in the branch banking are high ranch anking tends to
bring homogeneity in the prevailing Interest Ratesas i t i nc reases the mobi l i ty of
reso urc es from one pla ce to a noth er I t is easier for the :entral ank to
exercise :ontrol I t wil l communicate only w i th a fe w Re g i s t er e d >( e a d
8f f i ce s o f t h e a nk s an d no t w i t h ea ch individual branch In th is
system there more safety and liquidity of funds The choice of securities and
investments is larger ranch banking makes com ple te ba nk ing ser vic es
avai l able to the smal les t communi t i es The
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branches in small localities can be initially operated at loss in expectation of future
gainsThe comparative study of unit banking and branch banking is a case of small scale
banking versus large scale banking It is evident that the scale is clearly tit led towards
branch bank ing )ith the growth of large scale business it is no wonder that the
trend is almost every country towards the branch banking ie big banks with a
network of branches all over the country 4ven in the +'$ The birthplace of
unit banking The ank of $merica has now more than 300 branches in the state of
:alifornia itself
E!F :($I@ $@HI@A ?
'haper# 'olomon and )hite have defined :hain anking as
$n arrangements by which two or more banks Jeach of which retains
Its identity# capital and personnel Jare brought under common control by any device
other
than a (olding :ompanyK
+nder the system there is pooling of resources :hain banking
8vercomes cer tain l imi tat io ns of uni t banking ut the s ys tem suf fers
from certain limitations of its own There may be a lack of co-ordination# proper
controletc The system is inflexible
E%F AR8+& $@HI@A ?
I t i s s i m i l a r t o : h a i n a n k i n g # t h e d i f f e r e n c e b e i n g t h a t u n d e r
A r o u p a n k i n g t w o o r m o r e b a n k s a r e b r o u g h t u n d e r t h ec o n t r o l
o f t h e s a m e management through a (olding :ompany oth the systems aim at
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gainingthe advantages of large scale operations The banks are able to pool
their resources in case of emergency or when large amount of cash is required tom e e t
t h e l o a n r e q u i r e m e n t s o f t h e c u s t o m e r T h e
a d v a n t a g e s a n d disadvantages of both the systems are similar
oth the systems developed in t h e
+ n i t e d ' t a t e o f $ m e r i c a a s a r e s u l t o f a t t e m p t s t o
o v e r c o m e t h e difficulties or limitations of unit banking
PRIVATIATION OF INDIAN BANKING
"or the public sector banks# the era of bumper profit is over "or much of the last decade
the process of collaborated financial liberali,ation had cleared up the anks balance
sheet enabling them to with stand increased competition# global financing# turmoil and
even unprotected industrial slow down ut the cycle of liberali ,ation has run its
full
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course @ow i t i s the time for the big structural leap# rationali,ation# mergers# and
privati,ation +nless the banks undertake these fundamental changes# their profit will
stay
under pressure Th er e a r e t wp a r e as o f co mp e t i t i o ns w hi ch ba nk i n g
industry is facing internationally and nationally In the pre-liberali,ation
era# Indian banks c o u l d g r o w i n a c l o s e d e c o n o m y b u t t h e b a n k i n g
s e c t o r o p e n e d u p f o r private competition It is possible that private banks could
become dominant p l a y e r s e v e n w i t h i n I n d i a I t h a s b e e n r e c o r d e d a
r a p i d r i s e o f t h e n e w private sector banks and it has tracked the transformation
of the public sector banks as they grapple with the changes of financial deregulation+se
of $TC cards# Internet anking# &hone anking# Cobile anking arethe new
innovative channels of banking which are being widely used as they resul t in saving
both t ime and money which are two essen t ia l th ings tha t every one is
short
of and is running to catch hold of them Coreover private s e c t o r b a n k s a r e
a l i g n i n g i t s i n f r a s t r u c t u r e s # m a r k e t i n g q u a l i t y
and t echnology to bui ld deep commi tment in bui ld ing consumer and
retai l banking The main focus of these banks is on innovative range of services
or products
HISTORY OF BANKING IN INDIA)ithout a sound and effective banking system in India it cannot have a healthy economy
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors
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"or the past three decades IndiaDs banking system has several outstanding achievements
to its credit The most striking is its extensive reach It is no longer confined to only
metropolitans or cosmopolitans in India In fact# Indian banking system has reached even
to the remote corners of the country This is one of the main reason of IndiaDs growth
process @ot long ago# an account holder had to wait for hours at the bank counters for
getting a draft or for withdrawing his own money Today# he has a choice Aone are days
when the most efficient bank transferred money from one branch to other in two days
@ow it is simple as instant messaging or dial a pi,,a Coney have become the order of
the day
The journey of Indian anking 'ystem can be segregated into three distinct phases They
are as mentioned below?
1 4arly phase from 1675 to 1959 of Indian anks
2 @ationalisation of Indian anks and up to 1991 prior to Indian banking sector
Reforms
! @ew phase of Indian anking 'ystem with the advent of Indian "inancial /
anking 'ector Reforms after 1991
Phse;I
The Aeneral ank of India was set up in the year 1675 @ext came ank of (industan
and engal ank The 4ast India ank established ank of engal E1709F# ank of
ombay E17%0F and ank of Cadras E17%!F as independent units and called it &residency
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anks These three banks were amalgamated in 1920 and Imperial ank of India was
established which started as private shareholders banks# mostly 4uropeans shareholders
In 1753 $llahabad ank was established and first time exclusively by Indians# &unjab
@ational ank ;td was set up in 179% with headquarters at ;ahore etween 1905 and
191!# ank of India# :entral ank of India# ank of aroda# :anara ank# Indian ank#
and ank of Cysore were set up Reserve ank of India came in 19!3
*uring the first phase the growth was very slow and banks also experienced periodic
failures between 191! and 19%7 To streamline the functioning and activities of
commercial banks# the Aovernment of India came up with The anking :ompanies $ct#
19%9 which was later changed to anking Regulation $ct 19%9 as per amending $ct of
1953 Reserve ank of India was vested with extensive powers for the supervision of
banking in India as the :entral anking $uthority
Phse;II
Aovernment took major steps in this Indian anking 'ector Reform after independence
In 1933# it nationalised Imperial ank of India with extensive banking facilities on a large
scale specially in rural and semi-urban areas It formed 'tate ank of India to act as the
principal agent of RI and to handle banking transactions of the +nion and 'tate
Aovernments all over the country
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'even banks forming subsidiary of 'tate ank of India was nationalised in 1950 on 19th
Buly# 1959# major process of nationalisation was carried out 1% major commercial banks
in the country was nationalised
'econd phase of nationalisation Indian anking 'ector Reform was carried out in 1970
with seven more banks The following are the steps taken by the Aovernment of India to
Regulate anking Institutions in the :ountry?
1 19%9 ? 4nactment of anking Regulation $ct
2 1933 ? @ationalisation of 'tate ank of India
! 1939 ? @ationalisation of 'I subsidiaries
% 1951 ? Insurance cover extended to deposits
3 1959 ? @ationalisation of 1% major banks
5 1961 ? :reation of credit guarantee corporation
6 1963 ? :reation of regional rural banks
7 1970 ? @ationalisation of seven banks with deposits over 200 crore
anking in the sunshine of Aovernment ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions
Phse;III
This phase has introduced many more products and facilities in the banking sector in its
2!
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reforms measure In 1991# under the chairmanship of C @arasimham# a committee was
set up by his name which worked for the liberalisation of banking practices
The country is flooded with foreign banks and their $TC stations 4fforts are being put to
give a satisfactory service to customers &hone banking and net banking is introduced
The entire system became more convenient and swift Time is given more importance
than money
The financial system of India has shown a great deal of resilience It is sheltered from any
crisis triggered by any external macroeconomics shock as other 4ast $sian :ountries
suffered This is all due to a flexible exchange rate regime# the foreign reserves are high#
the capital account is not yet fully convertible# and banks and their customers have
limited foreign exchange exposure
BANKS IN INDIA
In India the banks are being segregated in different groups 4ach group has their own
benefits and limitations in operating in India "ew of them only work in rural sector while
2%
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others in both rural as well as urban Cany even are only catering in cities 'ome are of
Indian origin and some are foreign players
B24s ; P6#38 Pr31e Se8)r
1 P6#38 Se8)r B24s
2 Pr31e Se8)r B24s
! I2er2e B2432!
% F)re3!2 B24s 32 I2?3
3 I2?32 B24s Ar)?
P6#38 Se8)r B24s Indian ank
ank of India
+nion ank
'yndicate ank
'ate ank of 'aurashtra
'tate ank of Travancore
ank of Caharashtra
Lijaya ank
+:8 ank
Indian 8verseas ank
&unjab @ational ank
*ena ank
'tate ank of (yderabad
'tate ank of ikaner /
Baipur
'tate ank of India
'tate ank of Cysore
'tate ank of Indore
:orporation ank
$llahabad ank
$ndhra ank
:anara ank
ank of aroda
8riental ank
&unjab / 'ind ank
I*I ank
I:I:I ank
+TI ank
+nited ank
Pr31e Se8)r B24s
23
http://www.welcome-nri.com/info/project/IndianBankstext.htm#publichttp://www.welcome-nri.com/info/project/IndianBankstext.htm#privatehttp://www.welcome-nri.com/info/project/IndianBankstext.htm#internethttp://www.welcome-nri.com/info/project/IndianBankstext.htm#foreignhttp://www.welcome-nri.com/info/project/IndianBankstext.htm#indbankshttp://www.indian-bank.com/http://www.bankofindia.com/http://www.unionbankofindia.com/http://www.syndicatebank.com/http://www.sbsbank.com/http://www.sbtr.com/http://maharashtrabank.com/http://maharashtrabank.com/http://www.vijayabank.com/http://www.ucobank.com/http://www.iob.com/http://www.pnbindia.com/http://www.denabank.com/http://www.sbhyd.com/http://www.sbbjbank.com/http://www.sbbjbank.com/http://www.sbi.co.in/http://www.mysorebank.com/http://www.indorebank.org/http://www.corpbank.com/http://www.allahabadbank.com/http://www.andhrabank-india.com/http://www.canbankindia.com/http://www.bankofbaroda.com/http://www.obcindia.com/http://www.psbindia.com/http://www.idbibank.com/http://www.icicibank.com/http://www.utibank.com/http://www.unitedbankofindia.com/http://www.welcome-nri.com/info/project/IndianBankstext.htm#publichttp://www.welcome-nri.com/info/project/IndianBankstext.htm#privatehttp://www.welcome-nri.com/info/project/IndianBankstext.htm#internethttp://www.welcome-nri.com/info/project/IndianBankstext.htm#foreignhttp://www.welcome-nri.com/info/project/IndianBankstext.htm#indbankshttp://www.indian-bank.com/http://www.bankofindia.com/http://www.unionbankofindia.com/http://www.syndicatebank.com/http://www.sbsbank.com/http://www.sbtr.com/http://maharashtrabank.com/http://www.vijayabank.com/http://www.ucobank.com/http://www.ucobank.com/http://www.iob.com/http://www.pnbindia.com/http://www.denabank.com/http://www.sbhyd.com/http://www.sbbjbank.com/http://www.sbbjbank.com/http://www.sbi.co.in/http://www.mysorebank.com/http://www.indorebank.org/http://www.corpbank.com/http://www.allahabadbank.com/http://www.andhrabank-india.com/http://www.canbankindia.com/http://www.bankofbaroda.com/http://www.obcindia.com/http://www.psbindia.com/http://www.idbibank.com/http://www.icicibank.com/http://www.utibank.com/http://www.unitedbankofindia.com/
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'outh Indian ank
IndusInd ank
(*": ank
Bammu / Hashmir ank
@edungadi ank
*evelopment :redit ank
Ratnakar ank
Candavi ank
:enturian ank
:ity +nion ank
"ederal ank
:atholic 'yrian ank
'araswat ank
*han;akshmi ank
Hotak ank
:osmos ank
;akshmi Lilas ank
ank of Rajasthan
ank of &unjab
I@A-Lysya ank
Halyan ank
Harur Lysya ank
+nited )estern ank
I2er2e B2432! I:I:I ank
"ederal ank
'tate ank of India
I*I ank
ank of aroda
ank of aroda
(*": ank
'tate ank of Travancore
(':
&unjab @ational ank
IndusInd ank
+TI ank
ank of &unjab
:anara ank
:orporation ank
I@A-Lysya
F)re3!2 B24s 32 I2?3 'tandard :hartered ank
$merican 4xpress ank
anque @ationale *e &aris
:iti ank
$@ $mro ank
$sian *evelopment ank
$bu *habi :ank
$@A ank
(':
I2?32 24s Ar)?
'tate ank of India
ahamas# ahrain# hutan# angladesh# elgium# :anada# "rance# Aermany# (ong Hong #
Bapan
25
http://www.southindianbank.com/http://www.indusind.com/http://www.hdfcbank.com/http://www.jammuandkashmirbank.com/http://www.nedungadi-bank.com/http://www.dcbl.com/http://www.ratnakarbank.com/http://www.mandvibank.co.in/http://www.centurionbank.com/Header/index.htmlhttp://business.vsnl.com/cityunion/http://www.federal-bank.com/http://www.casybank.com/http://www.saraswatbank.com/http://www.dhanbank.com/http://www.kotak.com/http://www.cosmosbank.com/http://www.webindia.com/lvbhttp://www.bankofrajasthan.com/http://www.bankofpunjab.com/http://www.vysbank.com/http://www.kalyanbank.com/http://www.kvb.co.in/http://www.uwbankindia.com/http://www.icicibank.com/http://www.federal-bank.com/http://www.federal-bank.com/http://www.onlinesbi.com/http://www.idbibank.com/http://www.bankofbaroda.com/https://www.omnibob.com/default.asphttp://www.hdfcbank.com/http://www.hdfcbank.com/http://www.statebankoftravancore.com/http://www.in.hsbc.com/http://www.pnbindia.com/http://www.indusind.com/http://www.utibank.com/http://www.bankofpunjab.com/http://www.canbankindia.com/http://www.corpbank.com/http://www.vysbank.com/http://www.standardchartered.com/in/http://www.americanexpress.co.in/http://www.bnpindia.com/http://www.citibank.co.in/http://www.abnamroindia.com/http://www.adbinrm.org/http://www.adcbindia.com/http://www.anz.com/gsf/Locations/SouthAsia.asphttp://www.anz.com/gsf/Locations/SouthAsia.asphttp://www.in.hsbc.com/http://sbi.co.in/branchlocator/foreignoffices.asphttp://sbi.co.in/branchlocator/foreignoffices.asp#add1http://sbi.co.in/branchlocator/foreignoffices.asp#add2http://sbi.co.in/branchlocator/foreignoffices.asp#add5http://sbi.co.in/branchlocator/foreignoffices.asp#add3http://sbi.co.in/branchlocator/foreignoffices.asp#add4http://sbi.co.in/branchlocator/foreignoffices.asp#add6http://sbi.co.in/branchlocator/foreignoffices.asp#add7http://sbi.co.in/branchlocator/foreignoffices.asp#add8http://sbi.co.in/branchlocator/foreignoffices.asp#add8http://sbi.co.in/branchlocator/foreignoffices.asp#add9http://sbi.co.in/branchlocator/foreignoffices.asp#add10http://sbi.co.in/branchlocator/foreignoffices.asp#add10http://www.southindianbank.com/http://www.indusind.com/http://www.hdfcbank.com/http://www.jammuandkashmirbank.com/http://www.nedungadi-bank.com/http://www.dcbl.com/http://www.ratnakarbank.com/http://www.mandvibank.co.in/http://www.centurionbank.com/Header/index.htmlhttp://business.vsnl.com/cityunion/http://www.federal-bank.com/http://www.casybank.com/http://www.saraswatbank.com/http://www.dhanbank.com/http://www.kotak.com/http://www.cosmosbank.com/http://www.webindia.com/lvbhttp://www.bankofrajasthan.com/http://www.bankofpunjab.com/http://www.vysbank.com/http://www.kalyanbank.com/http://www.kvb.co.in/http://www.uwbankindia.com/http://www.icicibank.com/http://www.federal-bank.com/http://www.onlinesbi.com/http://www.idbibank.com/http://www.bankofbaroda.com/https://www.omnibob.com/default.asphttp://www.hdfcbank.com/http://www.statebankoftravancore.com/http://www.in.hsbc.com/http://www.pnbindia.com/http://www.indusind.com/http://www.utibank.com/http://www.bankofpunjab.com/http://www.canbankindia.com/http://www.corpbank.com/http://www.vysbank.com/http://www.standardchartered.com/in/http://www.americanexpress.co.in/http://www.bnpindia.com/http://www.citibank.co.in/http://www.abnamroindia.com/http://www.adbinrm.org/http://www.adcbindia.com/http://www.anz.com/gsf/Locations/SouthAsia.asphttp://www.anz.com/gsf/Locations/SouthAsia.asphttp://www.in.hsbc.com/http://sbi.co.in/branchlocator/foreignoffices.asphttp://sbi.co.in/branchlocator/foreignoffices.asp#add1http://sbi.co.in/branchlocator/foreignoffices.asp#add2http://sbi.co.in/branchlocator/foreignoffices.asp#add5http://sbi.co.in/branchlocator/foreignoffices.asp#add3http://sbi.co.in/branchlocator/foreignoffices.asp#add4http://sbi.co.in/branchlocator/foreignoffices.asp#add6http://sbi.co.in/branchlocator/foreignoffices.asp#add7http://sbi.co.in/branchlocator/foreignoffices.asp#add8http://sbi.co.in/branchlocator/foreignoffices.asp#add9http://sbi.co.in/branchlocator/foreignoffices.asp#add10http://sbi.co.in/branchlocator/foreignoffices.asp#add10
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Caldives# Cauritius # @epal # @igeria# 'ingapore # 'ri ;anka # 'outh $frica # +H # +'
ank of aroda
ahamas # elgium # "iji # Cauritius # 'outh $frica # 'eychelles# 8man # +$4 # +H # +'$ #
(ong Hong
'yndicate ank
+H #
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$ landmark M :8CM ventures in India between I:I:I $@H and 'I". for online
distribution of retail banking products and services
In a major development in the Internet world# I:I:I ank# the banking subsidiary of
I:I:I ;td E@.'4? I: and I:*F and 'atyam Infoway ;td E@$'*$
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innovative banking products of I:I:I ank 'I". has a buyer to seller ordering>selling
website# 'eekand'ourcecom# which is on-line except for the payments that are still
physical I:I:I ank has developed an Internet based Dbusiness to businessD payment
module for purchasers and sellers to effect payments online $ synergistic offering of
these two products would be made so that such customers>users can complete the entire
transaction and payments online
The two companies would expect to co-operate wherever feasible to extend the reach and
channels for distribution of financial products from I:I:I ank and Internet products
from 'I". I:I:I ank# as a part of its M:lick and rickM strategic focus would set up
$TCs at the 'atyam $ccess &oints and :yber :afes# thereby increasing its reach across
the country It would also offer 'atyam Internet terminals at its branches# enabling
visitors to surf the Internet# thereby attracting new customers to its branches
The two companies shall examine further business opportunities# which would effectively
synergise the financial services strength of I:I:I ank and its $ffiliates and the
technological expertise of 'atyam Infoway and its $ffiliates I:I:I ank and 'atyam
Infoway through this partnership will play a strategic role in providing revolutionary e-
commerce solutions in India
The memorandum of understanding was signed today between Cr (@ 'inor# Canaging
*irector / :48 of I:I:I ank and Cr R Ramraj# Canaging *irector of 'atyam Info
way
29
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I:I:I is a diversified financial services ank offering a wide range of products and
services to corporate and retail customers in India I:I:I ank# a subsidiary ank has
been the pioneer of Internet banking in India I:I:I ank has been gearing itself for the
opportunities that would be created from the e-:ommerce revolution
'atyam Info way ;td is the leading integrated Internet and 4-commerce ank operating
in India 'atyam8nline# the most comprehensive portal site of Indian origin is one of the
key offerings from 'I". in the business to consumer segment Recently it entered into an
agreement to acquire India)orld :ommunications &rivate ;imited# which would result in
the integration of India)orldDs popular websites like samacharcom# khelcom and
khojcom with 'I".Ds portals The combined portal would be the largest India related
Internet portal
*. Ke> B6s32ess Oe831es
8rgani,ations are facing tremendous competition word-wide There is pressure on the
organisations to improve their profitability and efficiency for their survival and growth
The customers expectations about the product and services are increasing and they do
not hesitate to change their brand loyalty or the loyalty towards the organisations with
whom they have been dealing for a long time The deregularisation# liberali,ation and
!0
http://www.rbi.org.in/home.aspx
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globalisation process have given freedom to the organisations in terms of selecting and
producing the products and services# selecting the market segment and targeting a
customer group at the same time they have to meet more rigid and regulatory
requirements to satisfy the regulators that the deregulation or liberali,ation does not work
against the interest of the customers and the society The organisations also have to
safeguard their resources to protect the interest of shareholders
The changing environment particularly that of competition# customer expectations and
emerging technology have influenced the banks word-wide Thus# the key business
objectives of a bank are to manage increasing competition by improving their product
and services# improving efficiency and productivity by restructuring their systems and
work procedures and improving employees productivity# ensuring compliance with the
regulatory requirements and safeguarding the assets $ll these issues can be addressed by
implementation of the right type of technology for the right purpose The technology-
based solutions have put the banks in a competitive advantage# improved the efficiency of
the operations and provided excellent customer service The technology has helped the
organisations to take strategic decisions based on the on-line data rather than based on the
past experience and intuitive decisions The computer assisted audit techniques have
helped the banks to ensure safeguarding of resources and to ensure that the banks are
operating efficiently and effectively The extensive use of technology has also brought
down the transaction cost and the rental cost of the premises Thus# the computerisation
of banks operations had tremendous impact on their future prospects The central bank of
any country though operate in a monopoly situation but has to demonstrate as a role
model its efficiency and effectiveness to guide and supervise the whole banking system
!1
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HUMAN RESOURCE MANAGEMENT IN BANKING
SECTOR
Or!23s3)2 sr686re:
The whole organisation behaves as a &rivar# with one legal guardian $ll directors and
shareholders are from among workers and all of the have taken an oath through affidavit
In the court of law that neither their family members shall have cl&ublic 'ectorm or share
in the assets or profits of the ank $ll workers of ank are the proud owners of the
organisation The workers believe in the concept that manpower is superior to money
powerK
Re8r630e2
Recruitment is the process of seeking out and attempting to attract individuals in external
labour markets# who are capable of and interested in filling av&ublic
'ectorlable vacancies Recruitment is an intermediate activity whose primary
function is to server as a linked between (uman Resource &lanning on the one
hand on the other 'ources of recruitment are through internal and external
channels &+;I: '4:T8R recruits its employees both externally as well as
internally Recruitment for the &ublic 'ector is done through interviews of
selected applicants and people who pass the interviews of selected applicants
and people who pass the interview are required to undergo a medical test
before he>she is finally placed in the &ublic 'ectors
4mployees are also recruited through internal mobility This is done on the basis of merit
and seniority $fter passing the examination the candidates are called for an
interview along with the employees who have become eligible for promotion
on the basis of seniority
!2
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Training $nd *evelopment
Training is the systematic modification of behavior through learning# which occurs as a
result of education# instruction# development and planned experience Training
needs exist when there is a gap between the present performance of employees
of group of employees and the desired performance
*evelopment on the other hand implies educational process &ublic 'ectormed at growth
and maturity of managerial personnel in terms of insight attitudes# adaptability
leadership and human relations on the basis of conceptual and theoretical
knowledge 'ahara &ublic 'ectors has various training programme# which are
spread over every field These trainings are &ublic 'ectormed at imparting particle knowledge of the specific area and to make employees more capable to
work not only efficiently but with accuracy This also facilitates the customer
to have their work done fast as per their requirements# because in most of the
cases customer do not have the technical knowledge of the &ublic 'ectors
business &+;I: '4:T8R also conducts training on human behaviour in
order to update its employees on how to deal with its customers In &+;I:
'4:T8R training is immediately called for whenever an employee is elevated
to next promotional post
!!
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Future growth proposals:
• PUBLIC SECTOR Literacy programme Hub centre
•
Basic flying training
• Induction of simulators
• Instrument training simulators
• Boeing simulators
Job Analyss ! Job "es#rpton
Bob analysis is the process by which data in regard to each job is systemically observed
and noted It provides information about the nature of job and characteristics or
qualifications that are desirable in the job holder Bob description generally describe the
work performed# the responsibilities involved# skill and training required# conditions
under which job is done# relationship with other jobs are personal requirement of the job
Bob description study gives a better understanding of tasks performed and the type of
qualifications required to perform them It is also used to give a measures for setting job
standards# which gives an indication of productivity of each employee performing job In
PUBLIC SECTOR subordinates and junior staff level employees eligibility criteria is
metric The junior staff should be able to read and write 4nglish as well as (indi The
jobs are properly defined to all structure of the hierarchy
!%
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Per=)r028e ''r3s#
It has many facets It is an exercise of observation and judgement# it is a feedback
process# and it is organi,ation intervention &erformance appr&ublic 'ectorsal is a
measurement process as well as emotional process )hile it is f&ublic 'ectorrly easy to
pre-describe how the process should work# descriptions of how it actually works in
practice are rather discouraging
"unctions and objectives of performance appr&ublic 'ectorsal?
1 It seeks to provide an adequate feedback to each individual on his>her performance
2 Its purpose is to serve as a basis for improving or changing behavior towards more
effective working habits
! It &ublic 'ectorms at providing data to managers with whom they may judge future job assignments and compensation
&erformance $ppr&ublic 'ectorsal is used for?
1 Identifying employees for salary increase# promotion# transfer lay-off or termination
of services
2 *etermining training needs for further improvement in performance
! Cotivating employees by indicating their performance levels
% 4stablishing a basis of research and reference for personnel decisions in future
In PUBLIC SECTOR employees are required to fill up a self appr&ublic 'ectorsal form
4mployees are appr&ublic 'ectorsed every year in the PUBLIC SECTOR &erformance
appr&ublic 'ectorsal is carried out in PUBLIC SECTOR for determining training needs
for further improvements in performance# identifying employees for salary increases#
motivating employees by indicating their performance level
Tr2s=er & 'r)0)3)2s:
It refers to a hori,ontal or lateral movement of an employee from one job to another in
the same organi,ation without any significant change in status or pay In PUBLIC
SECTOR two m&ublic 'ectorn situations generate transfer situations
1 $n individual employee may request a transfer in seeking his own preference and his
own benefits
!3
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2 &ublic 'ectors may also initiate transfer as a requirement for more effective
operations or as a solution to human relations problems
)hereas promotion refers to advancement of an employee to a higher position carryingresponsibilities# higher status and better salary In PUBLIC SECTOR promotion is given
under following conditions?
1 It is a device to ret&ublic 'ectorn a reward# to an employee for his years of service
2 It is to impress upon others that opportunities are open to them also in &ublic 'ectors#
if they perform well
! It is to increase individual effectiveness
% It is to build loyalty# morale and a sense of belongings in the employees
3 It is recognition of a job well done by an employee
5 It is to promote a sense of job satisfaction in the employees
!5
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P> A2? A##)"28es
The pay and allowances of an employee are payable from the date from which he takes
charge of the post or service to which he is appointed If the charge is service to which he
is appointed If the charge is before 1200 noon# the pay and allowances shall beadmissible from the same day# if at 1200 noon or thereafter# they shall be payable from
the following day
I28re0e2s?
$% A&'an#e o( salary whle pro#ee&ng on lea'e:
$n employee proceeding on &rivilege leave# Caternity ;eave and>or 'ick ;eave shall be
eligible to be p&ublic 'ectord in advance ag&ublic 'ectornst the salary due for the full
period of the leave subject to the usual deductions eg on account of provident fund
subscription# Income - tax etc In case in which the leave granted to an employee extends
beyond he next pay-day# the amount of advance should also include the pay and
allowance due to him# upto the date of his proceeding on leave
)% Te*porary "uty +tour , wthn In&a%:
The employees undertaking duty tour will be eligible for payment of *&ublic 'ectorly
$llowance> (otel $ccommodation as per conditions l&ublic 'ectord down from time to
time
-% For E*ployees re.ure& to tra'el by RPubl# Se#torl/Roa&/Sea
*&ublic 'ectorly $llowance shall be admissible for the period of stay at outstation @o
*$ will be given for the period of journey "or the day of arrival at the outstation and
the day of departure from the outstation only half d&ublic 'ectorly allowance shall be
admissible
0% For e*ployees re.ure& to tra'el by Publ# Se#torr
4mployees will be entitled for the payment of d&ublic 'ectorly allowance at the
applicable rates for each day of absence from (
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The duty tour undertaken by an employee at a foreign station# will be subject to the
following conditions?
EiF The employees going abroad for temporary duty tour>training>conference# etc are
released foreign exchange by the ank on he basis of the prescribed per diemrates The employees are required to meet all their expenses in the foreign
country# like boarding and lodging# transportation expenses# incidental expenses
and cash allowance from the amount of foreign exchange so advanced to them If
the stay abroad is for the same number of days for which foreign exchange had
been released to an employee# then the total expenses shall# not be more than the
amount of foreign exchange released to him
EiiF In the unlikely event of an employee having to extend his stay abroad for official
purposes# beyond the sanctioned period# he should contact his *epartmental (ead
well in advance# so that release of additional foreign exchange could be arranged
for him
EiiiF In the case of hotel expenditure being less than the amount of foreign exchange
released to an employee# the unspent amount has to be refunded by the employee#
the unspent amount has to refunded by the employee# to the ank in foreign
currency
EivF In case# in which the entitled class of accommodation is not av&ublic 'ectorlable#
the competent authority may permit the employee to travel by a higher class
7 Tr2s')r3)2 )= 'ers)2# e==e8s:
The employees will also be reimbursed the actual cost of transportation by the goods
tr&ublic 'ectorn and where the two stations are not connected by tr&ublic 'ectorn# by the
cheapest mode of surface transport of his personal effects not exceeding the limits shown
below?-
!7
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Bs38 P> 5Pre;Re13se?7 T)# B!!!e ##)"28e "he2 r1e##32!
93h =03#>
54!s7
93)6
=03#> 54!s7
Rs 10#000 and above 620 !50
Rs 3#000 and above 3%0 260
elow 3#000 !50 170
Pr)13?e? h:
EaF The competent authority may permit transportation of such effects in the anks own
services in which case the limits will be deemed to be inclusive of free baggage
allowance permissible under its tariffs and the transportation will be made as and
when and to the extent that space and load are av&ublic 'ectorlable in the &ublic
'ector
EbF @o costs other than those of actual transportation such packing# unpacking# storage#
insurance# handling agent charges and the like will be borne by the ank
Me?38# F83#33es F)r Te0')rr> E0'#)>ees:
The Cedical facilities applicable to permanent employees of the ank are also applicable
to temporary employees
9)r432! H)6rs
$ll employees except the member of flying crew will# according to the nature of duties
assigned to and performed by them# be classified# from time to time into the following
categories
aF Those observing !7 hours work per week including a d&ublic 'ectorly break of half
an hour on all working days except 'aturdays
bF Those observing %% hours work per week including a d&ublic 'ectorly break of half
an hour on all working days Eexcept 'aturdaysF
cF The actual hours of d&ublic 'ectorly work shall be such as are notified from time to
time by the regional (ead at region branch
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O1er30e
8vertime is payable only to subordinate / clerical staff members Otwice the rate of
asic 'alary P *$ for number of hours
P> D>
'taff will be p&ublic 'ectord their monthly salary usually two working days prior to the
end of the months
M)?e )= '>0e2s
$n employees is required to open a serving ank $>c in a designated branch# Econsult
manager>reporting headF salary will be deposited into the account 8n payday# employees
will be handed a pay slip cont&ublic 'ectorning a det&ublic 'ectorled breakup of the
remuneration for the month the required deductions and the net pay
A2 e0'#)>ees 8)00e28e0e2 s#r>:
:ommencement salary will very according to the category of employment# which will be
advised to the employee in the appointment letter $ny increases or other adjustments
arising from a salary review# change of job etc will be notified to the employee
Re3re0e2 e2e=3s
4very employee who has completed one years continuous service shall# subject to the
regulations to be made hereafter in this behalf# contribute the contributory provident fund
each month a minimum of 10 percent a maximum of 20 percent of his provident fund
pay The anks contribution to the fund shall# however# be limited to 10 percent of his
provident fund pay
The anks contribution to the fund is payable to the employee after five years of
membership of the fund 'ubject to this an the other regulations to be made thereafter in
this behalf# all the accumulated balance to the credit of an employee on the day he ceases
to be an employee of the ank# is payable to him or his nominee or nominees or
executors
Gr63>
The ank also pays gratuity to all its employees calculated at the rate of 13 days wages
for every completed year of service or part thereof in excess of six months subject to a
minimum service period of 3 years a maximum of 20 months wages The gratuity
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liability of the ank is funded through the group gratuity scheme Ecash accumulation
schemeF of the life insurance :orporation of India This scheme includes a special
feature# namely# whereas gratuity payable on death under the payment gratuity act is
limited by the length of service rendered upto the time of death# the scheme provides for
the payment of an amount based on the length of service which the employee could have
put in upto the normal retirement date but for his untimely death
Pr)13?e2 =62? s6)r> 8)2r363)2:
The provident fund deduction forms are part of the employees salary and represents
statutory deduction of 10= from the basic salary and **$ The ank contributes and
equivalent amount towards an exempted provident fund scheme managed by Trustees
drawn among the staff of Shr &ublic 'ectors This is a retirement benefit
E0'#)>ees s== 32s6r28e 5ESIS7
The ank is legally obliged to deduct from an employees salary contribution to 4'I'
provided that the monthly salary does not exceed Rs 5300 ERupees six thousand and five
hundred onlyF the ank also pays a higher amount as its contribution
I2s6r28e 're0360 62?er s#r> s132! s8he0es
$n employee may have the premier on selected life insurance policies deducted from the
salary each pay day and credited directly to the employees policy account with the life
insurance corporation
L)2s
4quated monthly installments E4CIF towards of any loans# av&ublic 'ectorled by an
employee from either the ank or the financial institutions will be deducted from salary#
on the employees authorising the ank for such deduction This authority letter has to
be routed through the financial institutions granting the loans
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M)313)2
In appreciation and recognition of exemplary performance# contribution# length of service
to the PUBLIC SECTOR # the management rewards the employee appropriately The
award is in the form of a gift or certificate as decided by the management
The management also rewards its employees employee of the monthK and employee of
the yearK for their outstanding performance The employees selected become the member
of staff welfare committee also ;ong service awards are given to those employees who
have completed their 3 years or 10 years of service and are entitled for gifts along with
certificates
$ part from this# the ank motivates its employees by providing them good
infrastructure Conthly culture activities are organised to keep the employees motivation
high 4mployees are given responsibility / authority in their selected area# in order to
enhance their capabilities $nd promotions are given based on their performance in the
ank $ll these rewards given by the ank attracts / motivates the employees to work
better and prove themselves
Gr3e128es
If any employee has a problem he can directly speak to the :48# who is accessible to
anyone at anytime In case a grievance arises# round the table meeting is called and
problems is dealt in best possible manner
C)0062383)2
In PUBLIC SECTOR communication is very formal The ank prefers communication
in a two way process The ank prefers to be more informal in dealing with employees
on d&ublic 'ectorly basis 'ince# this style of working makes the employees feel much
happier and motivated
&ublic 'ector India ;td selects the future employees keeping everything in mind right
from the qualification of the employees to the future prospects-both of the organisation
and the employees
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The first step involves the filling up of Canpower Indent "orm This form is filled up by
the department# which is having the vacancy The form consists of various questions
which are to be answered like if the current vacancy is a replacement vacancy# its reason
is to be specified -the factors which resulted it like death# retirement etc
The department is required to give the qualifications that the future candidate should
possess
In the next step# this form is given to the (uman Resource E(RF departmentG this
department sees if the position can be filled through internal sources The internal sources
can be transfers# promotion etc In the case of internal sources# the recommendations of
the employees are not taken into consideration If the (R department does not find
suitable candidate within the organisation then this department has to give reasons for it
The form then goes to the :orporate (R for its approval
)hen the suitable candidate is not available within the organisation# the organisation then
moves to the outside world for filling up the vacancies
If the number of employees required is large then the ank has in its consideration three
ways-
The *ata bank of the organisation
$dvertisements
:ontacting large consultants
The ank maintains a databank of the candidates# which is used when the number of
vacancies to be filled up is large The sources of databank can be the qualified candidates
who had applied in the organisation earlier but due to some reasons could not join the
organisation
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$dvertisements are the second big source to attract the candidates These are having
much larger scope and reach to a number of people The qualifications required by the
organisation and the criteria could be described in detail
;arge number of consultants also constitutes a big source Cany people register
themselves with these consultants and they act as a bridge between the organisation and
the candidates The consultants provide the ank required details about all criteria These
consultants are fixed for the organisation# which are chosen on the basis of their
performance In case of overseas recruitment it is checked whether their Indian
counterparts can perform the job efficiently or not If need arises then they are also taken
through consultants
ut if the number of vacancies is very small then the organisation takes the help of the
local consultants
The candidates are then required to fill up the $pplication "orm This form requires the
candidate to fill the details regarding the previous employment# if any and his personal
data The form is having details regarding like the marital status# organisation structure#
the position held by the candidate# his salary structure# the top three deliveries to the
organisation that proved to be beneficial to the organisation# career goals# his strengths
and weaknesses etc
$fter the application form has been duly filled and submitted# the selection process starts
wherein the candidate has to pass through various stages and interview The interview
panel consists of the persons from :orporate E(RF# and other persons including the
executives from the department for which the vacancy is to be filled
The selected candidates are then short-listed The short listed candidates are then given
priority numbersG this is due to the reason that sometimes the candidate who is having
first priority is unable to join the organisation due to some reasons then in that case the
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candidate next in the priority list is given preference The candidate has to under go
medical examination and his credentials are verified
$fter qualifying these stages# the candidate is then absorbed in the organisation and
explained his>her duties This phase marks the end of the selection procedure
&ublic 'ector India ;tdalso performs :ampus interviews as and when the need arises
The esteemed organisation also provides apprentice training-wherein the organisation
trains the people in the working of the organisation and gives then stipend If these
trainees are found useful to the organisation then they are absorbed in the organisation
else they are given certificate so that they can show this as an experience and get a job
elsewhere
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(RC in the anking Industry
)hen we talk of human resource management# we have in our mind a variety of things
These include?
• Training
• 'kill development and up-gradation of knowledge and skills of the employees
• Cotivating the employees#
• 4ffective utili,ation of the employees skills and capabilities
• $ttracting the personnel and their retention
• )ages# salaries and rewards and
• Conitoring and controlling the employees performance
These aspects of human resource management and development are essential for every
sector but in the case of tourism# they have a special significance This is because
tourism is a service industry and here the customer is not only buying a service or a
product but he is also experiencing and consuming the quality of service which is
reflected in the performance of the person involved in the production and delivery of the
service 'ince what is marketed here is a relationship between the customer and the
producer of services# the importance of human resources becomes vital for the success of
the business Aenerally# in such service operations the emphasis has been on courtesy
and efficiency and it is assumed that the service in tourism is all smiles and effective
communication (owever# with the changing nature of tourism and growing special
sation only smiles# communications skills and courtesy will not serve the purpose "or
example# a guide may be very good in communication but unless he or she is equipped
with knowledge and information related to the monument or the city# he or she will not beable to perform quality service 'imilarly# a driver may be very good at driving but unless
he knows the roads and addresses of the city# only his driving capabilities will be of no
help in providing quality service $nd we must remember here that tourists# whether
foreign or domestic# are increasingly becoming more demanding as regards quality of
service
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Aenerally# human resource management# planning and development in tourism have to be
taken at both macro as well as micro levels $t the macro level# one takes into account the
educational and training infrastructure available in a country and the efforts initiated by
the I:$8 This also includes the efforts initiated by the private sector $t the micro level#
one takes into account how best individual organi,ations plan and manage their human
resources L ' Cahesh# formerly Lice &resident E(uman ResourcesF with the Taj Aroup
of (otels# is of the opinion that two central features common to all sectors of the tourism
industry must be considered in this regard?
1F The concept of Coments of Truth EC8TF# and
2F C8Ts relationship to the attainment of service excellence in an organi,ation
Ban :arl,on has defined C8T as an intention between a customer and an organi,ation#
which leads to a judgement by the customer about the quality of service received by her
or himK In tourism industry# 93= of the C8Ts take place between customers and the
front line staff and most of the time they are not visible to the management "or example#
how a hotel receptionist is handling the customers or how an escort is conducting the tour
is not visible to the management .et# the tourists experience of the holiday is dependent
on how the staff manning such services has treated him or her Cahesh has pointed out
that in case of negative experiences# only less than five percent cases get reported to the
management by the customers and hence according to him the crucial questions is are
human beings capable of doing their job correctly# willingly and with a smile# when they
know that their management is most unlikely to be able to see or hear them# let alone bear
of their failure to do soKQ This puts additional on the human resources management
factor in the tourism industry :ertain organi,ations# companies and even destinations are
known for their hospitality and are even termed as service leaders in their areas of
operations Researches conducted by various scholars in this area show that they have
achieved this# status# through effective human resource management in their
organi,ations $ccording to Aail :ook Bohnson these companies have applied the
principal of empowerment to all employees This empowerment is manifested in the way
that companies?
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• $re highly focused and consistent in everything they do and say in relation to
employees#
• (ave manager who communicate with employees
• "acilitate# rather that regulate# their employees response to customers
• 'olicit employee feedback about how they can do things better
• 'tress the importance of team work at each level of the organi,ation and
• &lan carefully the organi,ations recruitment and training needs
These companies give less emphasis on hierarchy and formal relationship ratherG they
adopt flat organi,ational structure in terms of span of control Bohnson further states that
these service leaders can be recognised for?
• Their unfailing commitment to service principles#
• Their investments in people to ensure staffing competence#
• $ management philosophy which stresses communication a proactive orientation and
employee feedback and
•
$ dedication to teamwork
In fact# human resource management and customers care>expectations management are
inter related area in the area of tourism 'arah Cansfield has identified four key
principles in the development of customer care within companies These according to her
are
1F :ustomer care Nstarts at the top was meaning that commitment to the principle of
customer care must emanate from senior management levels within an
organi,ation 'uccessful management is not only about the right management
style but also an attitude# ethos or culture of the organi,ation which overrides the
management techniques used# such that in the absence of other instructions these
values will dictate how an employee will behave
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2F N:ustomer care involves everyone within the organi,ation It is not just about
front-line staff The contrary view Nonly services to reinforce the electricians or
administrators# opinion that the standard of service they give in support of the
front-line staff is not important (ow can cleaners do the right job unless they
fully appreciate their customer needs and the importance of their roleQ (igh
standards of customer care cannot be achieved by ignoring seasonal# part time or
voluntary staff that represents the face of the business to many customers
!F N:are for your staff and they will care for your customers Too often organi,ations
look first to the customer# whereas the emphasis should be placed on the staff
Improving the experience of the staff encourages a better service and a better
experience for customers Core customers are obtained thereby improving the
climate in which management and staff work Investment and greater
professionalism follow success and the cycle of achievement is reinforced
%F NIts a continuous# meaning that Ncustomer care is not a quick fix Research but it
long term plan
$ccording to L ' Cahesh The nature# determinates and problem areas of service quality
within tourism points clearly to the central role of personnel# at all levels# in attaining
levels# of excellence in this respect *evelopment the service culture# within a ank# and
within tourism industry# cans he seen as crucial to the success of tourismK (ence# the
activities of an (R* manager in tourism can be categorised as?
• (uman resource planing and
• (uman resource development
$spect like forecasting# recruiting and induction in the human resource area are taken
care of through human resource planning The identification of specific developmental
needs for the manpower aimed at developing and exploiting the competencies of the
human resources are taken care of through human resource development
(+C$@ R4'8+R:4 &;$@@I@A
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In this 'ection# we will deal with certain aspects which are relevant for managers or
entrepreneurs at an organi,ations level in the area of human resource planning (uman
resource planing can be termed as a process for preparing a plan for the future personnel
needs of an organi,ation It takes into account the internal activities of the organi,ation
and the external environmental factors In a service industry like tourism# such planning
also aims at improving the quality of manpower resources (uman resource planning
involves?
• $nalysis of existing manpower resources#
• &lanning for future needs taking into account how many people with what skills and
at what levels the organi,ation will need# and
• &lanning for the development of the employees by adopting in-house training and
continuing education methods to upgrade the knowledge and skills of the employees
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RECRUITMENT PROCEDURES IN HR
Recruitment procedure is a vital factor of an organi,ation If it is not done properly the
production procedure will be hampered (ence productivity will fall down 'o the
organi,ation will be in trouble and it will affect the employer- employee relationship 'orecruitment procedure should be done in proper and correct manner The new candidates
should replace the vacant post so that the production of the ank does not hamper y
this the productivity will increase and the organi,ation will gain profit 'o the employer
will be happy and will not hesitate to distribute bonus and increments to the workers The
workers will also be more motivated to work (ence there will be harmonious
relationship in the organi,ation It will also stabili,e the organi,ation in the long run
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HUMAN RESOURCE MANAGEMENT IN PUBLIC
SECTOR
Organsaton stru#ture:
The whole organisation behaves as a &arivar# with one legal guardian $ll directors and
shareholders are from among workers and the entire have taken an oath
through affidavit In the court of law that neither their family members shall
have claim or share in the assets or profits of the ank $ll workers of ank
are the proud owners of the organisation The workers believe in the concept
that manpower is superior to money powerK
Re#rut*ent
Recruitment is the process of seeking out and attempting to attract individuals in external
labour markets# who are capable of and interested in filling available
vacancies Recruitment is an intermediate activity whose primary function is to
server as a linked between (uman Resource &lanning on the one hand on the
other 'ources of recruitment are through internal and external channels &ublic
'ector recruits its employees both externally as well as internally Recruitment
for the airline is done through interviews of selected applicants and people who
pass the interviews of selected applicants and people who pass the interview
are required to undergo a medical test before he>she is finally placed in the
&ublic 'ector
4mployees are also recruited through internal mobility This is done on the basis of merit
and seniority $fter passing the examination the candidates are called for an
interview along with the employees who have become eligible for promotionon the basis of seniority
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OBJECTIE OF STUDY
The basic objective of this report is to “COMPARATIVE ANALYSIS OF
RECRUITMENT PROCESS IN PUBLIC BANKING SECTOR &
PRIVATE BANKING SECTOR”. "ollowing fundamental objectives have
been identified as the sub-objectives of the study?-
1 To study the identity of the recruitment / selection process in the
organi,ation as a whole
2 To find out the employees as per anks vacancies
! To find out the various sources of advertisement of vacancies like-
media Eelectronic or paper or bothF# schools# posters etc
% To study the work environment and select the pattern of interview#
which can help out to select the suitable employee for the
organi,ation
3 To study the interpersonal relationship
3!
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3%
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RESEARCH METHODOLOGY
The '6r')se )= he 0eh)?)#)!> 3s ) ?es8r3e he reser8h 'r)8e?6re. Th3s 328#6?es
)1er## reser8h ?es3!2% he s0'#32! 'r)8e?6re% he ? 8)##e83)2 0eh)?% 2? he
=r3e? 0eh)?s 2? 2#>s3s 'r)8e?6re.
8ut of total universe !0 respondents from each &ublic 'ector have been taken for
convenience The sample procedure chosen for this are statistical sampling method (ere
randomly employees are selected and interviewed $n in depth interview is conducted
with the (uman Resource (ead Information# which I collected# was based on the
questionn