K.P.B.

HINDUJA COLLEGE OF COMMERCE

CHARNI ROAD, MUMBAI – 400 004

HUMAN RESOURCES MANAGEMENT IN

BANKING

Submitted for PROJECT WORK FOR THIRD YEAR -

SEMESTER
VI
BACHELOR OF BANKING AND INSURANCE OF THE
UNIVERSITY OF MUMBAI BY NILESH PREMJI JADHAV
ROLL NO - 13

UNDER THE GUIDANCE OF:

PROF. SHEHNAAZ NAZKANI

2020 - 2021

K.P.B. HINDUJA COLLEGE OF

COMMERCE
315, New Charni Road, Mumbai 400 004 Tel.: 022- 40989000 Fax: 2385 93 97. Email:
1
[email protected]

NAAC Re-
 COLLEGEWITH POTENTIALFOR EXCELLENCE
Prin. Dr. Minu Madlani (M.Com., Ph.D.)

CERTIFICATE
This is to certify thatMR, NILESH PREMJI JADHAV of
DECLARATION
B.Com in Banking and Insurance Semester VI(2020-2021)
has
To,successfully completed the Project on
HUMAN
RESOURCES MANAGEMENT IN BANKING under the
The Principal,
guidance ofProf . SHEHNAAZNAZKANI
K.P.B. Hinduja College of Commerce, 315, New Charni
Road,
Mumbai- 400004.
Prof. ShehnaazNazkani Prof. PoojaTalreja
I hereby declare that this project report entitled “HUMAN
Project Guide -ordinator
Co
RESOURCES MANAGEMENT IN BANKING ”

which is being submitted in partial fulfilment of the

Internal Examiner of the Project Work as partExternal

requirement of ThirdExaminer
Year

Semester VI of the “Bachelor of Banking and Insurance

program” by the University of Mumbai is the result of the

Ms.
workMinu Madlani
carried College
out by me under the guidance and supervision

Seal
of Principal

Prof. SHEHNAAZ NAZKANI.

I further declare that I have not previously submitted this

project report to any other institution/university for any other

degree/ diploma or for any other person.

Date:

Place: Mumbai

Roll no.: 13 Student’s

Signature

2
 ACKNOWLEDGEMENT

There is always a sense of gratitude one expresses to others for the

helpful and needy service they render during all phases of life. I am
doing this research with the help of different personalities. I wish to
express my gratitude towards all of them
It gives me immense pleasure to express my deep regards and sincere
sense of gratitude to my respected faculty for the guidance throughout
the research I did. I would especially like to thank Prof. SHEHNAAZ
NAZKANI who has always been available to help me out in any
difficulties I faced during my research and also during my academic
endeavours. She has been one of the biggest sources of inspiration to
me to undertake and complete this project successfully and without her
it would not have been possible for me to undertake this project work.
So a big Thank you Prof. SHEHNAAZ NAZKANI for your able and
worthy guidance.
I would like to thank our principal, Dr. Minu Madlani and my course co-ordinator
Prof. Pooja talreja for their constant guidance and support.
I would also like to thank all my professors for steering my confidence
and capability for giving me insight into research by giving me
exposure to the arena of competitive and real world.
Lastly, I would like to thank my parents and friends for the constant
support during the research.

Place: Mumbai NILESH

PREMJI JADHAV
Date:

3
 INDEX

SR NO TOPIC PG NO

CHAPTER 1

INTRODUCTION
1.1 WHAT IS BANK 10

1.2 DEFINATION OF 14
HRM

1.3 MEANING 15

1.4 HRM IN BANKING 16

1.5 CHARACTERISTIC 20
OF HRM

1.6 HRM BACKGROUND 22

AND PRACTICES

CHAPTER 2
RESEARCH AND
METHODOLOGY

2.1 OBJECTIVES OF STUDY 24

2.2 SCOPE OF HRM 24

2.3 LIMITATIONS OF HRM 27

2.4 SIGNIFICANCES 29

4
 CHAPTER 3

LITERATURE AND
REVIEW
3.1 REVIEW AND 30
LITERATURE
3.2 MODERN 33
LITERATURE REVIEW

3.3 UNDERSTANTING HRM 34

3.4 REFERENCES 35

CHAPTER 4

DATA ANALYSIS,
INTERPRETATION
& PRESENTATION

4.1 IMPORTANCE OF HRM 36

4.2 NEEDS AND 38

IMPORTANCE OF
HRM IN BANKS
4.3 HRM SYSTEM 41

4.4 PROCESSES IN HRM 44

4.5 HRM- KEY 48

RESPONSIBILITIES
4.6 RESPONSILIBITIES 52
OF HRM
DEPARTMANT
4.7 EMPLOYEE 53
RELATION IN BANKS

4.8 HRM IN PRIVATE 54

& PUBLIC SECTOR
BANK

5
4.9 CASE STUDY 1 58

4.10 CASE STUDY 2 63

4.11 AXIX BANK 66

CHAPTER 5

CONCULSION &
SUGGESTIONS
5.1 FINDINGS 74

5.2 CONCULSION 75

5.3 REFERENCES 76

BIBLIOGRAPHY 78

6
 EXECUTIVE SUMMARY

Human resources are the most precious possessions of any

organization. It is, therefore, necessary to take utmost care for their
survival and growth. Liberalization and Globalization has increased the
importance of human resource management by manifold. The quality
of human resource is a critical factor in the success of any organization,
and more so in service organizations like banking & insurance. In a
super competitive world, the thing that is most unique to every
financial institution is the capability of its people. It is the
organization's employees - its human resources - that give a bank or an
insurance firm its competitive edge. Behind the production of every
product or service there is human mind, effort and man hours (working
hours). No product or service can be produced without help of human
being. Human being is the fundamental resource for making or
constructing anything. Today many experts claim that machines and
technology are replacing human resource and minimizing their role or
effort. But even machines and technology have been built by the
human aid and besides companies have been continuously in search for
talented, skilled and qualified professionals to further develop latest
machines and technology, which again have to be controlled or used by
humans to bring out products.

7
This Photo by Unknown Author is licensed under CC BY-NC-ND

8
 CHAPTER 1
INTRODUCTION HUMAN
RESOURCE MANAGEMENT IN BANKING

1.1 What is a Bank?

The word bank is derived from the Italian Banca , which is derived
from German language and means bench. The terms bankrupt and
"broke" are similarly derived from banca rotta, which refers to an out
of business bank, having its bench physically broken. Money lenders in
Northern Italy originally did business in open areas, or big open rooms,
with each lender working from his own bench or table. The essential
function of a bank is to provide services related to the storing of
deposits and the extending of credit. The evolution of banking dates
back to the earliest writing, and continues in the present where a bank
is a financial institution that provides banking and other financial
services. Currently the term bank is generally understood as an
institution that holds a banking license. Banking licenses are granted by
financial supervision authorities and provide rights to conduct the most
fundamental banking services such as accepting deposits and making
loans. There are also financial institutions that provide certain banking
services without meeting the legal definition of a bank, a so called non-
bank. Banks are a subset of the financial services industry. Human
resource management (HRM) has long been overlooked in the
corporate sector in the country where a small section, comprising
mostly the multi-national companies was practicing the same. With the
growing realization of proper HRM in the corporate sector, it has
grown into an important activity. Now the head of HRM is an
important member of the senior teams of any thriving business.
Although the idea is new for many local businesses where
entrepreneurs are at the beginning of the learning curve yet in reality
the theme is getting support from the organized entrepreneur. The
banking sector has grown from a few institutions primarily involved in

9
deposit acceptance and trade finance into a complex multi-player
markets where large number of commercial banks, financial
institutions and specialized banks are operating with various products
and activities.

Indian banking is the lifeline of the nation and its people. Banking has
helped in developing the vital sectors of the economy and usher in a
new dawn of progress on the Indian horizon. The sector has translated
the hopes and aspirations of millions of people into reality. Today,
Indian banks can confidently compete with modern banks of the world.
Before 20th century, usury, or lending money at a high rate of interest,
was widely prevalent in rural India. Entry of Joint stock banks and
development of Cooperative movement have taken over a good deal of
business from the hands of the Indian money lender, who although still
exist, have lost his menacing teeth. In the Indian Banking System,
Private Sector banks exist side by side with Public Sector banks and
play a supplementary role in providing need based finance, especially
for agricultural and agriculture – based operations including farming,
cattle, milk, hatchery, personal finance etc. along with some small
industries and self employment driven activities. Indian industry is
working upto the challenges thrown in by market economy. To survive
in the highly competitive scenario, managers are being pressurized to
improve quality, increase productivity, cut down cost and eliminate
inefficiency. The collective efforts of the employer and the employees
assume relevance in this context. And this is where HR practices can
play a crucial role. The success of the Banks depends not only on the
satisfaction of their customers but also the satisfaction level of the
employees working in the banks. The level of satisfaction of the bank
employees can be ensured and enhanced by effective HR-practices
adopted by the Banks

The key to the success of any organization lies in how efficiently the
organization manages its human resources. The principle applies
equally and perhaps more aptly to service institutions like banks. The

10
issue is all the more relevant to the private sector banks who are
striving hard to keep pace with the technological changes and meet the
challenges of globalization. In order to meet the global standards and to
remain competitive, banks will have to recruit specialist in various
fields such as Treasury Management, Credit, Risk Management, IT
related services, HRM, etc. in keeping with the segmentation and
product innovation. As a complementary measure, fast track merit and
performance based promotion from within would have to be
institutionalized to inject dynamism and youthfulness in the workforce.
To institutionalize talent management, the first priority for the banking
industry would be to spot, recognize and nature the talent from within.
Secondly, the industry has to attract the best talent from the market to
maintain the required competitive edge vis-à-vis global players

Until fairly recently, an organization's human resources department

was often consigned to lower rungs of the corporate hierarchy, despite
the fact that its mandate is to replenish and nourish what is often cited
— legitimately—as an organization's greatest resource, its work force.
But in recent years recognition of the importance of human resources
management to a company's overall health has grown dramatically.
This recognition of the importance of HRM extends to small
businesses, for while they do not generally have the same volume of
human resources requirements as do larger organizations, they too face
personnel management issues that can have a decisive impact on
business health. Hiring the right people—and training them well—can
often mean the difference between scratching out the barest of
livelihoods and steady business growth'. Personnel problems do not
discriminate between small and big business. You find them in all
businesses, regardless of size.

For any organization to function effectively, it must have resource of

men (Human Resource), money, materials and machinery. The
resources by themselves cannot fulfill the objectives of an
organization, they need to be collected, co-ordinate and utilized

11
through human resources. And, the effective management of human
resources is also vital. Hence, Human Resource Management (HRM)
has emerged as a major function in organizations. Human Resource
Management is the organizational function that deals with issues
related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits,
employee motivation, communication, administration, and training.

The administrative discipline of hiring and developing employees so that

they become more valuable to the organization.

Human Resources is a business field focused on maximizing employee

productivity. Human Resources professionals manage the human
capital of an organization and focus on implementing policies and
processes. They can be specialists focusing in on recruiting, training,
employee relations or benefits. Recruiting specialists are in charge of
finding and hiring top talent. Training and development professionals
ensure that employees are trained and have continuous development.
This is done through training programs, performance evaluations and
reward programs. Employee relations deal with concerns of employees
when policies are broken, such as harassment or discrimination.
Someone in benefits develops compensation structures, family leave
programs, discounts and other benefits that employees can get. On the
other side of the field are Human Resources Generalists or Business
Partners. These human resources professionals could work in all areas
or be labor relations representatives working with unionized
employees.

In startup companies, trained professionals may perform HR duties. In

larger companies, an entire functional group is typically dedicated to
the discipline, with staff specializing in various HR tasks and
functional leadership engaging in strategic decision-making across the
business. To train practitioners for the profession, institutions of higher
education, professional associations, and companies themselves have
established programs of study dedicated explicitly to the duties of the

12
function. Academic and practitioner organizations likewise seek to
engage and further the field of HR, as evidenced by several field-
specific publications.

1.2 DEFINITION

Edwin Flippo defines- HRM as “planning, organizing, directing,

controlling of procurement, development, compensation, integration,
maintenance and separation of human resources to the end that
individual, organizational and social objectives are achieved.”

The National Institute of Personal Management (NIPM) of India has

defined human resources – personal management as “that part of
management which is concerned with people at work and with their
relationship within an enterprise. Its aim is to bring together and
develop into an effective organization of the men and women who
make up enterprise and having regard for the well – being of the
individuals and of working groups, to enable them to make their best
contribution to its success”.

According to Decenzo and Robbins, “HRM is concerned with the

people dimension” in management. Since every organization is made
up of people, acquiring their services, developing their skills,
motivating them to higher levels of performance and ensuring that they
continue to maintain their commitment to the organization is essential
to achieve organizational objectives. This is true, regardless of the type
of organization – government, business, education, health or social
action”.

13
1.3 MEANING

Human: refer to the skilled workforce in the organization.

Resource: refer to limited availability or scarce.

Management: refer to maximize or proper utilization and make best use of

limited and a scarce resource.

Altogether, human resource management is the process of proper and

maximize utilization of available limited skilled workforce. The core
purpose of the human resource management is to make efficient use of
existing human resource in the organization. The Best example at
present situation is, construction industry has been facing serious
shortage of skilled workforce. It is expected to triple in the next
decade from the present 30 per cent, will negatively impact the overall
productivity of the sector, warn industry experts.

Human Resource Management is the process of recruitment, selection

of employee, providing proper orientation and induction, providing
proper training and the developing skills, assessment of employee
(performance of appraisal), providing proper compensation and
benefits, motivating, maintaining proper relations with labour and with
trade unions, maintaining employees safety, welfare and health by
complying with labour laws of concern state or country.

14
15
 1.4 HUMAN RESOURCE MANAGEMENT IN BANKS
The classification of the Indian banks into broad groups such as public
sector, old private sector, new private sector, foreign, regional rural
banks & cooperatives are largely on the basis of ownership pattern. It is
also well known that the business mix, delivery nchannels & IT
strategies of these organizations vary substantially. What is little
known but of greater importance is that each of these banks follows
very distinct HR practices which have contributed, substantially, to the
• business processes.
HRM in Cooperative Banks :
It is sad that the HR policies of cooperative banks are totally dominated
by the Registrar of Cooperatives. This is, perhaps, one reason why the
cooperatives are unable to improve themselves.
•
HRM in Regional Rural Banks (RRBs):
As regards RRBs, most of them adopt the HR policies of sponsor banks,
which are not appropriate for their special nature.
•
HRM in Public Sector Banks:
In the recent times, the contours of HR function in public sector banks
are slowly but definitely changing. One could say that these banks are
discovering the HR function & it is hoped that these banks will fast
catch up with others. It may be recalled that, in a controlled
environment & to meet with the rapid branch expansion- since 70s-
Public Sector Banks (PSBs) have adopted HRM practices similar to
that of Government departments. Herein HRM did not have a direct
role in business development but was more concerned with centralized
recruitment to staff & providing them across the country.
18
• HRM in Private Banks & Foreign Banks:
The HR function as practiced by private & foreign banks is effectively
involved in the identification of specific skills that each job warrants &
recruiting suitable staff by every way possible. In these banks,
recruitment is a continuous process with a strong focus on getting the
right person for the right job by offering appropriate compensation,
incentives & designations. There is a great energy spent in keeping the
turnover low & offering appropriate training inputs. Possibly there are
as many pay structures as there are employees. More importantly,
HRM has a role in monitoring & mentoring the employee. There are no
routine transfers. Rather people are recruited in different geographical
locations & different levels. Technology has helped in centralizing the
back office & other functions such that service can be provided from a
distance. These institutions adopt a proactive performance appraisal
system but still short of 360 Degree appraisals. Their training process
is concerned with both skill building & motivating. It should, however
be said that the demand for professionals on account of growth of
Indian Business is such that the efforts of HRM have not helped it from
completely staving off staff turnover in the ranks.
HRM in Public Sector Unit Banks (PSU Banks):
•
In the case4 of PSU Banks the recruitment process is annual & large
scale. People are recruited at the lowest grade & promoted I due
course. This makes the career path of each employee the responsibility
of the organization. This also underlies a belief that anyone can occupy
any desk. In such a system specialization is the loser. Recruitment at
higher levels is a recent phenomenon & more an exception than rule.
Pay packets are uniform for a grade/level with annual increments &
uniform perquisites. Increments are earned automatically. Transfers are
not driven by business requirements but a matter of routine. Vacancies
get created as & when people move up. It is not uncommon to see new
department‘s spring up just to allow promotions. In a way such a move
is justified as salary is linked to grades & not performance. The
concept of job rotation is practiced with great conviction. As regard
leave it is seen that modern business organizations, driven by work life
issues & ‗operational risk ensure that certain annual leave is mandatory.
In the case of PSU Banks, the ―compulsory leave system‖ has not yet
taken root. In the circumstances an important task at hand is training
the staff member, who, on account of age profile is not comfortable
working in an IT environment. HRM should also take immediate steps
to improve productivity. There is a simultaneous need to balance the
demand of IT savvy youngsters joining the organization who ask for
high salaries. PSU Banks are not able to offer market driven salary.
Given that banking business & the business of Government are
distinct, there is, in the case of PSU Banks, an urgent need that salaries
are not limited by what is paid in the ministry but unshackled. Till that
happens, HRM should, innovatively tackle the issue

https://in.pinterest.com/pin/206321226661902648/

20
 HR-PRACTICES IN INDIAN BANKS
In the booming Indian economy all the industries are doing well in the
market and Indian banks are also performing well comparatively. In
the booming economy and the continuing expansion most of the banks
facing challenges to perform well and it clearly brought out by the fact
that, contrary to public perception, it is not just the new private sector
banks that are doing well. There are few public sector banks are also
doing well and got the place in top 10 best performing Indian banks.
And it's worth mentioning that these public sector banks have
performed so admirably in spite of the fact that they operate with many
handicaps, such as strong unions and the inability to offer market
salaries and incentives and burdened with huge workforce. The secret
of success of any company simply depends on how they treat
employees and keep them satisfied. For that they have design their
human resource process like recruitment, selection, training and
development, performance appraisal and other based on employee
perspective in order to benefit them. In India the banking industry
becoming more competitive than ever, private and public sector
banking are competing each other to perform well. The executives of
the bank are now in the position to modify their traditional human
resources practice in to innovative human resources practices in order
to meet the challenges from other competitive banks. Effective human
resource practices relate to Bank's performance by contributing to
employee and customer satisfaction, innovation, productivity and
development of a favorable climate in the Banks.

1.5 Characteristics of Human Resource Management:

1. Upgrading Manpower:

21
 HRM is basically concerned with the upgrading of manpower working
in an organization. This leads to improvement in the individual
performance of an employee and also corresponding improvement in
the organizational performance.
2. Stress on Training:

HRM includes various schemes arranged for providing education,

guidance, training and opportunities to learn and develop employees of
all categories and working in different departments. There is an
integrated use of sub-systems (training, career developments,
organizational development) in the XZ HRM programme
3. Attention to learning and career development:

Learning, self-development, career developments are possible through

HRM programmes. These are the core areas of HRM. Career
development is possible through joining training courses, reading
books and periodicals. Learning and career development raise the
capacity of employees to work at highest levels. They are given higher
positions with monetary benefits.
4. Organizational Development:

HRM includes organizational development, which includes effective

communication within the organization, coordination of different
activities elimination of conflicts of different types and creation of
orderly atmosphere in the whole organization.
5. Team Spirit:

HRM is basically for developing team spirit in the whole organization.

For this, departments and levels of management are properly
integrated. Team spirit facilitates orderly growth of the organization in
the right direction.
6. Huge spending by Management:

All companies invest huge money on HRM activities but such

expenditure is absolutely essential for survival in the present
competitive business world. HRM programmes create matured, skilled
and efficient manpower, which is a valuable asset of a business unit.

7. Termination of Employment:

Termination is an unpleasant part of any manager‘s job. Employees

occasionally must be terminated for breaking rules of failing to
perform adequately.

22
8. Continuous Activity:

HRM is rightly treated as a continuous activity due to new

developments taking place regularly in the business world. For this, on
the job and off the job training programmes are introduced from
timeto-time.
9. Wide Scope:

The scope of HRM programmes is very vast. It is multi-disciplinary in

character. Training and guidance are given on different aspects of
business management to enable managers to deal with complex
managerial problems and challenges.

1.6 HRM Background and Practices

The banking has become a complex activity within the financial market
linked directly and indirectly with an over-all national growth and its
impact as an integral part of regional segment of a global banking
environment. Almost every bank and financial institution is involved in

23
various functions in a day's job and thus requires a highly effective
team and appropriate manpower to run the show. Corporate goals are
translated into viable realities and profits only with human element that
play their due role in achieving the desired results.
Thus even the high automation would require proper man behind the
machine to make things happen. This idea has been realized by top
management in progressive banks. Like many other organized sectors,
banking requires multi-layer manpower for its various requirements of
professionals and support staff. The range may require reasonably
educated security guards on the one end and a highly educated and
trained professional as head of corporate finance at the other. With
liberalization of activities within the banking sector, for example, more
emphasis on consumer and house finance and personal loans, etc.
banking has turned itself into a more market-based business where
banks have expanded their reach more to customers' door steps in a big
way making banking more practical. This has further highlighted the
need for proper deployment of man-power to run banks efficiently. For
many years, HRM banks like other institutions have been handling this
sensitive activity through respective personnel departments. This
means human resources were managed like other physical assets e.g.
pieces of furniture, calculators, equipment and appliances.
Personnel departments were primarily engaged in approval of leaves,
handling of staff loans, issuance of show cause, conducting
disciplinary enquiries and termination from service. Recruitment was a
routine function and was done in a mechanical way to hire people with
specific educational background irrespective of their real value to the
institution.
Success stories of large banking companies have been evident of the
fact that HRM is quite different from management of physical assets.
Human brain has its own peculiar chemistry.
Its strong sensory and decision-making capacity has to be greatly
emphasized by the employers. The work force constituting all levels of
employees is constantly thinking in many dimensions.
On the one hand it is the assigned duty and task they are to perform and
for which they are paid by their employer, on the other they think of
their long run goals and objectives.
By no means, their brains can be controlled to think beyond the current
situation of employment. Managing this educated, skillful and
trustworthy work force is not an easy job. A few of the current
challenges faced by the banking industry in terms of human resource
management may be the following:

24
To make the Indian Banking System stronger, efficient and low-cost,
the creation of fundamentals must include in the bank‘s operations,
strategies and processes: strengthening the prudential norms and
market discipline; adoption of international benchmarks; management
of organizational change and consolidation within the financial system;
upgrading the technological infrastructure of the financial system; and
human resource development as the catalyst of the transformation
(2002).
The Human Resource field in the Banking Industry is considered as
one of the process of discovery and transformation. The field of
Human Resource can be described as emergent and dynamic within the
cultural business aspect in a Banking Industry. The success of today‘s
banking business will sparsely depends on the human resources of the
organization, in which plays a crucial role in providing the services
needed.
The evolution of banking system in India affected the human resource
practices, recruitment and selection practices, and training system. It is
very important that the details of human resource are discussed along
with the employees, to build their own career planning, perceptions and
development.
The primary strength of the industry is the human resource that is why
the efforts to develop the skills and management are the main subject
placed before the human resource. A major challenge for many banks
will be to develop the special competencies and skills for credit
appraisal and risk management. Putting the information technology is a
key contributed in human resource development. Therefore, the HR
model of the future will require professionals to be both driving and
anticipating change, understanding the complexities of the new
business environment and forces shaping it.
www.managementparadise.com

CHAPTER 2 2 RESEARCH METHODOLOGY

25
 2.1 OBJECTIVES OF STUDY

1. To study about the motivation factors influence the employee in banks.

2. To study about the effectiveness of training system as well as
performance appraisal system as followed in banks.
3. To analyze general banking practices of the bank.

2.2 SCOPE OF HUMAN RESOURCE MANAGEMENT:

1. Training:
Training is an essential element of HRM. This develops skills and
capacity to work at higher levels and positions. Training is possible by
different methods. It is useful for self-development and career
development.

2. Performance Appraisal:
Performance appraisal is an important area of HRM. The purpose of
performance appraisal is to study critically the performance of an
employee and to guide him to improve his performance. An employee
is told about his strengths and weaknesses and assistance is given to
remove weaknesses and make the plus points more strong. This
technique is useful for building a team of capable employees and is
also used for their self-development.

3. Potential Appraisal
It relates to the study of capabilities of employees. It is useful for
proper placement and career development of employees. Potential
appraisal of employees is useful for developing their special qualities,
which can be used fruitfully along with the expansion and
diversification of activities of the company. Potential appraisal is
possible by the superior with the help of different methods.

26
4. Career planning and development:
Under HRM employees should be given guidance for their
selfdevelopment and career development. The opportunities likely to
develop in the organization should be brought to their notice. They
should be motivated for self-development, which is useful to the
organization in the long run. Superiors are supposed to provide
information and guidance to their juniors in this regard. Career
development is an integral part of HRM.

5. Employees welfare:
Employee’s welfare is within the scope of HRM. Welfare facilities are
useful for creating efficient and satisfied labour force. Such facilities
raise the morale of employees. Employee’s welfare include the
provision of Medical and recreation facilities, subsidized canteen, free
transport and Medical insurance. Such facilities support training and
other measures introduced for HRM

6. Rewards and incentives:

HRM includes provision of rewards and incentives to employees to
encourage them to learn, to grow and to develop new qualities, skills
and experiences which will be useful in the near future. Reward is an
appreciation of good work. It may be in the form of promotion, higher
salary or higher status. Rewards and incentives motivate employees
and raise their morale.

7. Organizational development:
HRM aims at providing conflict-free operations throughout the
organization. It also keeps plans ready to deal with problems like
absenteeism, turnover, low productivity or industrial disputes.

27
8. Quality of work life:
Quality of work life depends on sound relations between employers
and employees. A forward looking policy on employee benefits like job
security, attractive pay, participative management and monetary and
non-monetary rewards will go a long way in improving the quality of
work life helps employees to strike an identity with the organization.

9. Human resource information system:

Such system acts as an information bank and facilities human resource
planning and development in a proper manner. It facilitates quick
decision making in regard to HRM. Every organization has to introduce
such system for ready reference to HRM matters. Updating of such
information is also

2.3 LIMITATIONS OF HUMAN RESOURCES

MANAGAMENT

There are advantages and disadvantages of personnel management.

Here we have the major limitations of HRM. We have discussed them
in below major points:

28
Late Origin is one of the major limitations of HRM
In the first place, it needs an affirmative scholastic base. Diverse
people characterize the term in an unexpected way. A company that
does web or mobile app development would need it differently than a
company of another sector. In contrast, a few masterminds consider it
as another name for workforce management. On the other hand, a few
undertakings name their customary faculty management department as
human resource management department.

To put it differently, such shallow actions may not shoulder natural

product. What does an organization really require? It is a principal
change in mentalities, approaches and the very management rationality.
Without such a change, especially at the top management level,
renaming of workforce department or redesignating the faculty officer
may not fill the need. With the progression of time, an organization
will produce an adequate approach.

The absence of Support of Top Management:

HRM ought to have the support of top-level management. The
adjustment in demeanor at the top can bring great outcomes.
Attributable to latent mentality at the top. Faculty management takes
care of it. Unless there is an adjustment in approach and mentality of
top management nothing exceptional will happen.

Despicable Actualisation
One needs to implement HRM via surveys. These surveys are a
preparation of development prerequisites of representatives. One has to
also consider the yearnings and requirements of individuals while one
makes the human resource approaches. The arranging of some
preparation programs is considered as the usage of HRM. With this
current, management’s efficiency and productivity approach stay
undisturbed in numerous associations.

Deficient Development Programs

HRM needs usage of projects, for example, profession arranging, at
work preparing, development programs, MBO, advising and so on.
There is a need to make an air of learning in the association. In all
actuality, HRM programs are kept to classroom lectures and expected
outcomes are not leaving this approach.

29
Insufficient Information
A few ventures don’t have essential data about their workers. One
cannot implement this framework without sufficient data and
information base. Therefore, there is a need to gather, store and recover
data. Moreover, this should be done before the execution of a human
resource management plan.

www.narolainfotech.com

https://slideplayer.com/slide/12854238/

2.4 SIGNIFICANCES
The significance of the Human Resource Management System is
getting higher as the business organizations are transforming in
terms of their organizational culture, employee dimension, work
patterns and so on. Today, the business organizations have
moved from the stage of manually managing their employees
keeping themselves within the limitations of using papers and
files to manage.

Today with the stiff competition and rising number of employees

within the organization, the paper files, and mere excel sheets
cannot do the work. There urges the need for a self-reliant,
efficient and robust application tool for managing the

30
employees. There comes the need for complete automation of all
processes with respect to employees, so as to keep everything
streamlined, organized and pragmatic. In order to survive in the
fast-paced world, there urges the need for a human resource
management tool to ensure maximum production and
engagement from the side of employees.

Primarily an HRM tool ensures systematic arranging of data and

information with respect to employees in an organization. This
systematic arranging automatically leads to significant planning,
adequate and prompt decision making and also streamlining of
business operations. This simply enhances the end result of
business operations.

The decision making is made simpler and quicker as HRM tools

help the business organization to quickly retrieve the employee
data. No matter your data is spread across different
departments or varied layers of business, with the aid of an
integrated human resource management tool, one can quickly
spot and glance at the employee data, formulate necessary
decisions and put action underrun.

One of the significant advantages of a human resource

management tool is that it is highly flexible and can perfectly
pitch to the business need. The tool can be altered in terms of
functions and features, making it perfectly tailored to your
business need. Needless to say, both small and large business
enterprise can equally benefit from the HRM tool, as it helps the
organization to keep everything organized, streamlined and well
structured. It simply takes the business to its next level.

https://www.openhrms.com/blog/significance-of-human-resourcemanagement-
system

CHAPTER 3

3 LITERETURE AND REVIEW

3.1 REVIEW OF LITERATURE

1.“Management of Human Assets” by M.G.Rao, a compendium, threw

light on the complexities of Managing human beings in the present day
organizations. The various aspects of HRM in relation to small scale
units operating in industrial estates have been presented initially,

31
followed by theoretical presentation on HRD, different aspects of
training, organizational development, employee participation, etc. The
effects of training and employee developmental activities have also
been put to close examination. It also been put to find how the
employee related activities flourish in various other sectors like urban
government, co-operatives, informal sector and small sector.

2.“HRM 2000” by P.Subbarao, a compendium, presented the various

developments in the HRM in a comprehensive form. It is also
attempted to look into the current trends in Human Resource Function
with a view to outline the future development that are likely to take
place in the years ahead. It also discussed in a lucid manner the topics
such as job analysis, job evaluation, employee benefits, recruitment and
selection, line staff conflicts, social responsibility policy along with
other current topics such as organizational culture and climate,
organizational politics, organizational effectiveness, follower ship,
participative management, dual career problems, quality of work life,
qualify circles and organizational development.

3.“Emerging Issues in Human Resources Management by Pramod

Verma, a volume, attempted to present state-of-the-art explanations and
experiences on the emerging issues in managing human resources in
various organizations.

4.“Excellence through Human Resource Development” by M.R.R Nair

and T.V.Rao, an edited compendium, focused on chief executives
views and experiences on HRD. It also dealt with the HRD Philosophy,
importance, macro level issues, expectations of line managers and
workers from HRD, role of HRD managers, dimensions of developing
HRD facilitators and programmes.

5.“Management of Human Resources in Public Enterprises” edited by

S.Ravishankar and R.K.Mishra provided an understanding of the
system of HRM rather than merely the activities assigned to those who
provided various personnel services for effective public enterprise

32
management. It also gave a balanced and comprehensive grasp of the
concept, problem, approaches and strategies of HRM.

6.Jayanthi Lal Jain, in his study entitled “An Empirical Model on

Micro- Level Manpower Planning in Banks”, presented an empirical
model for micro- level manpower planning in banks and provided a
framework required for evolving certain norms which have already
been in vogue in the Indian Bank and have proved to be extremely
useful in planning as well as allocating staff to various branches of the
bank. It also suggested values of parameters/norms to be used in micro-
level manpower planning and provided a frame work for assessing the
viability of norms and gave guidelines for proper implementation of
those norms.

7.“A Micro-Level Manpower Planning Model for Banks” by Jayanthi

Lal Jain and K.Balachandran,was a modified version of the model
suggested by the first author (previous reference) after incorporating
the changing requirements of public sector banks for optimal
distribution of manpower, of course without any change in the basic
model.

8.“Leadership styles among Bank Managers” by O.P.Misra and

S.K.Srivastava, a research study, studied the leadership style which is
one of the objectives of HRD and its effectiveness among bank
managers belonging to nationalized and private sector banks and
relationships between styles and effectiveness among 45 sample
managers selected from nationalized and private sector banks.

9.“Job Descriptions in a Public Sector Banks” by V.T.Godse and

R.Bandyopadhyay, a research study, concerned with the conduct of job
description exercise in one of the leading nationalized banks. It
identified the problems faced by banks on account of expansion and
diversification of business activities, suggested ways and means to
handle the problems and portrayed clearly the procedure followed for
job description exercise at various levels of management besides,

33
highlighting the use of interval highlighting the use of interval
appraisal in identifying structural deficiencies.

10.Uma Sekaran in his study entitled “The perceived quality of

working life in banks in major cities in India”, examined the QWL in
the Indian Banking Industry as perceived by organizational members at
different organizational levels and in different job positions, several
variables such as competence, performance, involvement and
satisfaction with various facets of the work life were taken into
consideration for the purpose, since these are all indices of the QWL.

34
3.2 Modern Literature Review

The modern view of HRM first gained prominence is 1981 with its
introduction on the prestigious MBA course at Havard Business School
(Price, 2004). Sarkul (2003) defines manpower as power available from
or supplied by the physical as well as intellectual efforts of man.
Effective HR practices are found to lead to positive organizational
outcomes (Becker and Gerhart, 1996) such as turnover (Huselid, 1995)
and productivity (Katz et al., 1987). HR practices are generally
categorized into the following: hiring and selection practices,
incentives and rewards, safety training, communication and feedback,
worker participation, management commitment, and performance
evaluation. The implementation of human resource management
policies in an organization requires HR practitioners or professionals to
take an active part in different organizational activities (Islam 2011).
HRM policies and practices involve the development of how
individuals should be managed and specific HR initiatives (Schuler,
2002). HRM policies and practice refers to the activities of planning,
staffing, appraising, and compensating, training and development and
labor relations. HR planning confirms the organization has right people
at right number for the right position on right time. Staffing is a major
HRM practice that organization uses to help to co-ordinate and control
their global operations (Schuler et al, 2002). Recruitment, selection and
placement are the activities concerned with fining suitable people to fill
job vacancies within organization (Molander, 1996). Performance
appraisal is a managerial tool to control individual performance in
organizations in order to achieve maximum performance (Morley,
2004). Compensation should be more immaterial in nature. This might
involve the person’s career prospects, for example the opportunity to
grow within the company or participate in international exchanges of
information which allow him to get involved in strategic policy
planning (Harzing and Van Ruysseveld, 1995). HRM is being practiced
either formally or informally to a greater or lesser extent in business
enterprises regardless of their size (Moyeen and Hug, 2001). There is,
in fact, no comprehensive study found on overall HRM practices in
Commercial banks of Bangladesh.

3.3 UNDERSTANDING HRM

35
 The Meaning the purpose of this study is to dig deeper into the idea of
HRM, how it positions over personnel management and its importance
in the current scenario. In this “Think and communicate” era, the role
of HRM has changed with the advent of tools like Linkedin, Facebook
and Twitter leave aside the influence of globalisation ,technology,
change in demography and human values. For many years ,
academicians and practitioners have been involved in a debate which
aims at demonstrating the way by which human capital resources are
managed is crucial to organization performance . Recent studies
indicates that HRM practices influence HRM outcomes like turnover,
stress and burnout etc which in turn influences organization
performance indicators like reputation , sales per employee , sales
growth, return on investments etc. Human Resources Management is a
set of practices that businesses use to ensure that they have an effective
workforce in place to meet operational needs. Successful organizations
are those which value, develop and nurture their human capital to
achieve their organizational goals and objectives. Human Resource
Management Practices is a term used by many organizations which
describes the combination of traditionally administrative personnel
functions with performance, employee relations and resource planning.
The objective of Human Resources is to maximize the return on
investment from the organization's human capital and minimize
financial risk. It is the responsibility of human resource managers to
conduct these activities in an effective, legal, fair, and consistent
manner. Although there is a number of HRM definitions, the common
factor tying these definitions together is that they emphasise the
importance of linking HRM policies and practices to organizational
performance.

3.4 REFERENCES
1. Johnason, P. (2009). HRM in changing organizational contexts. In
D. G.Collings & G. Wood (Eds.), Human resource management:
A critical approach (pp. 19-37). London: Routledge.
2. ^ Collings, D. G., & Wood, G. (2009). Human resource
management: A critical approach. In D. G. Colligs & G. Wood

36
 (Eds.), Human resource management: A critical approach (pp. 1-
16). London: Routledge.
3. ^ Paauwe, J., & Boon, C. (2009). Strategic HRM: A critical review.
In D. G. Collings, G. Wood (Eds.) & M.A. Reid, Human resource
management: A critical approach (pp. 38-54). London: Routledge.
4. ^ Klerck, G. (2009). "Industrial relations and human resource
management". In D. G. Collings & G. Wood (Eds.), Human
resource management: A critical approach (pp. 238-259).
London: Routledge.
5. ^ 1928-, Armstrong, Michael (2009). Armstrong's handbook of
human resource management practice. Armstrong, Michael,
1928- (Eleventh ed.). London: Kogan
Page. ISBN 9780749457389. OCLC 435643771.
6. ^ Obedgiu, Vincent (2017-01-01). "Human resource
management, historical perspectives, evolution and professional
development". Journal of Management Development. 36 (8):
986–990. doi:10.1108/JMD-12-2016-0267. ISSN 0262-1711.
7. ^ Griffin, Ricky. Principles of Management
8. ^ Merkle, Judith A. (1980-01-01). Management and Ideology.
University of California Press. p. 1. ISBN 978-0-520-03737-3.
9. ^ Mark O'Sullivan, 2014, What Works at Work, The Starbank
Press, Bath, page 3.
10. ^ Mayo, Elton (1945). "Hawthorne and the Western Electric
Company" (PDF). Harvard Business School. Retrieved 28
December 2011.

CHAPTER 4
4. DATA ANALYSIS, INTERPRETATION, AND
PRESENTATION

37
4.1 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

An organization cannot build a good team of working professionals

without good Human Resources. The key functions of the Human
Resources Management (HRM) team include recruiting people,
training them, performance appraisals, motivating employees as well as
workplace communication, workplace safety, and much more. The
beneficial effects of these functions are discussed here:

Recruitment and Training: This is one of the major responsibilities of

the human resource team. The HR managers come up with plans and
strategies for hiring the right kind of people. They design the criteria
which is best suited for a specific job description. Their other tasks
related to recruitment include formulating the obligations of an
employee and the scope of tasks assigned to him or her. Based on these
two factors, the contract of an employee with the company is prepared.
When needed, they also provide training to the employees according to
the requirements of the organization. Thus, the staff members get the
opportunity to sharpen their existing skills or develop specialized skills
which in turn, will help them to take up some new roles.

Performance Appraisals: HRM encourages the people working in an

organization, to work according to their potential and gives them
suggestions that can help them to bring about improvement in it. The
team communicates with the staff individually from time to time and
provides all the necessary information regarding their performances
and also defines their respective roles. This is beneficial as it enables
them to form an outline of their anticipated goals in much clearer terms
and thereby, helps them execute the goals with best possible efforts.
Performance appraisals, when taken on a regular basis, motivate the
employees.

Maintaining Work Atmosphere: This is a vital aspect of HRM

because the performance of an individual in an organization is largely
driven by the work atmosphere or work culture that prevails at the

38
workplace. A good working condition is one of the benefits that the
employees can expect from an efficient human resource team. A safe,
clean and healthy environment can bring out the best in an employee. A
friendly atmosphere gives the staff members job satisfaction as well.

Managing Disputes: In an organization, there are several issues on

which disputes may arise between the employees and the employers.
You can say conflicts are almost inevitable. In such a scenario, it is the
human resource department which acts as a consultant and mediator to
sort out those issues in an effective manner. They first hear the
grievances of the employees. Then they come up with suitable
solutions to sort them out. In other words, they take timely action and
prevent things from going out of hands.

Developing Public Relations: The responsibility of establishing good

public relations lies with the HRM to a great extent. They organize
business meetings, seminars and various official gatherings on behalf
of the company in order to build up relationships with other business
sectors. Sometimes, the HR department plays an active role in
preparing the business and marketing plans for the organization too.

Any organization, without a proper setup for HRM is bound to suffer

from serious problems while managing its regular activities. For this
reason, today, companies must put a lot of effort and energy into
setting up a strong and effective HRM.

4.2 NEED AND IMPORTANCE OF HRM IN BANKS

World over, the technology driven channels such as, ATM, net banking
and mobile banking have reduced walk-in-customers at the bank
branches. However, in India, it is observed that the customers still find
it difficult to use these technology based channels and they are more
comfortable in traditional banking over the counter personally to ensure
error -free and risk –free banking service. While struggling to provide
better and efficient service at the counters, the staff is also confronted
with various regulatory norms to mitigate risks in operations. This

39
 clearly establishes that employees of cooperative banks play a vital role
in managing not only the ‘transaction’ of a customer but also future
longterm relationship with them.

1. To create stable labour force:

HRM programmes are needed in order to create stable, efficient, skilled
and matured manpower required by an enterprise for the present and
future period.

2. To update the quality of manpower:

HRM activities are needed for updating the quality of manpower as per
the growing and changing needs of an enterprise. This avoids
managerial obsolescence. Even the vacancies at higher levels can be
filled in internally due to HRM programmes as they provide training
and opportunities of self development to employees working at lower
levels.

3. To develop strength for survival:

HRM programmes are necessary for survival in the present competitive
marketing environment. An enterprise can face market competition
only by improving quality, reducing costs and avoiding wastages. All
this is possible through HRM

4. To face challenges of technological changes:

Technological changes are taking place rapidly in every area of
business. HRM programmes are needed in order to absorb
technological changes taking place with speed. In fact, introduction of
new technology, computers, automation, etc. will not be possible unless
training is provided to the manpower

40
5. To satisfy the demand of self-development of employees: HRM is needed to meet
the needs of employees in regard to selfdevelopment and career development
aspirations. Employees demand ,training facilities, refresher courses, promotions and
transfers, career guidance, etc. for their self-development. HRM programmes are
needed to fulfill self-development and career development of employees.

6. To meet future manpower needs:

HRM is needed to meet the future manpower needs of the organization.
Executives, managers, supervisors leave the job or retire due to age
factor. Competent juniors must take their positions. HRM is needed in
order to keep ready a team of competent managers as a second line of
defense.

7. To facilitate expansion and diversification:

HRM activities are needed to meet the manpower requirements
resulting from expansion and diversification programmes undertaken at
the enterprise level. Attention should be given to HRM much before
the introduction of expansion programme.

8. To utilize production capacity fully:

HRM is needed in order to use the available production capacity to
the optimum level. It provides skilled manpower for this purpose

41
 To create stable
labour force:

To satisfy the
demand of self- To develop strength
development of for survival:
employees:

NEEDS AND IMPORTANCE

OF HUMAN RESOURCES
MANAGEMENT

To
To update the quality
facilitate expansion
of manpower:
and diversification:

To face challenges of
technological
changes:

PICTURE MADE BY WORD SMART ART

42
 4.3 HUMAN RESOURCE MANAGEMENT SYSTEMS:
Human Resource Management Systems (HRMS, EHRMS), Human
Information Systems (HRIS), HR Technology or also called HR
modules, shape an intersection in between human resource
management and information technology. It merges HRM as a
discipline and in particular its basic HR activities and processes with
the information technology field, whereas the planning and
programming of data processing systems evolved into standardized
routines and packages of enterprise resource planning(ERP) software.
On the whole, these ERP systems have their origin on software that
integrates information from different applications into one universal
database. The linkage of its financial and human resource modules
through one database is the most important distinction to the
individually and proprietary developed predecessors, which makes this
software application both rigid and flexible.

The HR function's reality

•
All in all, the HR function is still to a large degree administrative and
common to all organizations. To varying degrees, most organizations
have formalized selection, evaluation, and payroll processes. Efficient
and effective management of the "Human Capital" Pool (HCP) has
become an increasingly imperative and complex activity to all HR
professionals. The HR function consists of tracking innumerable data
points on each employee, from personal histories, data, skills ,
capabilities, experiences to payroll records. To reduce the manual
workload of these administrative activities, organizations began to
electronically automate many of these processes by introducing
innovative HRMS/HCM technology. Due to complexity in
programming, capabilities and limited technical resources, HR
executives rely on internal or external
44
 IT professionals to develop and maintain their Human Resource
Management Systems (HRMS). Before the "client-
server "architecture evolved in the late 1980s, every single HR
automation process came largely in form of mainframe computers that
could handle large amounts of data transactions. In consequence of the
high capital investment necessary to purchase or program proprietary
software, these internally developed HRMS were limited to medium to
large organizations being able to afford internal IT capabilities. The
advent of client-server HRMS authorized HR executives for the first
time to take responsibility and ownership of their systems.

These client-server HRMS are characteristically developed around four

principal areas of HR functionalities:

1. Payroll model.
2. Time and labour management.
3. Benefits administration.
4. HR management.

1. The payroll model:

Automates the pay process by gathering data one employee time and
attendance, calculating various deductions and taxes, and generating
periodic pay cheques and employee tax reports. Data is generally fed
from the human resources and time keeping modules to calculate
automatic deposit and manual cheque writing capabilities.
Sophisticated HCM systems can set up accounts payable transactions
from employee deduction or produce garnishment cheques. The payroll
module sends accounting information to the general ledger for posting
subsequent to a pay cycle.

1. The time and labour management model:

Applies new technology and methods (time collection devices) to cost
effectively gather and evaluate employee time/work information. The
most advanced modules provide broad flexibility in data collection
methods, as well as labour distribution capabilities and data analysis

45
 features. This module is a key ingredient to establish organizational
cost accounting capabilities.

2. The benefit administration model:

Permits HR professionals to easily administer and track employee
participation in benefits programs ranging from healthcare provider,
insurance policy, and pension plan to profit sharing or stock option
plans

3. The HR management model:

Is a component covering all other HR aspects from application to
retirement. The system records basic demographic and address data,
selection, training and development capabilities and skills
management, compensation planning records and other related
activities. Leading edge systems provide the ability to "read"
applications and enter relevant data to applicable database fields, notify
employers and provide position management and position control.
Typically, HRMS/HCM technology replaces the four core HR
activities by streamlining them electronically; while using the internet
or corporate intranet as communication and workflow vehicle, the
HRMS/HCM technology can convert these into web-based HRMS
components of the ERP system and permit to reduce transaction costs,
leading to greater HR and organizational efficiency. Through employee
or manager self-service (ESS or MSS), HR activities shift away from
paper based processes to using self-service functionalities that benefit
employees, managers and HR professionals alike. Costly and time
consuming HR administrative tasks, such as travel reimbursement,
personnel data change, benefits enrolment, enrolment in training
classes (employee side) and to instruct a personnel action, authorize
access to information for employees (manager's side) are being
individually handled and permit to reduce HR transaction time, leading
to HR and organizational effectiveness. Consequently, HR
professionals can spend fewer resources in managing administrative
HR activities and can apply freed time and resources to concentrate on
strategic HR issues, which lead to business innovation
46
4.4 PROCESSES IN HUMAN RESOURCE
MANAGEMENT

Each organization works towards the realization of one vision. The

same is achieved by formulation of certain strategies and execution of
the same, which is done by the HR department. At the base of this
strategy formulation lie various processes and the effectiveness of the
former lies in the meticulous design of these processes. But what
exactly are and entails these processes? Let’s read further and explore.

The following are the various HR processes:

• Human resource planning (Recruitment, Selecting, Hiring,
Training, Induction, Orientation, Evaluation, Promotion and
Layoff).
• Employee remuneration and Benefits Administration
• Performance Management.
• Employee Relations.

The efficient designing of these processes apart from other things

depends upon the degree of correspondence of each of these. This
means that each process is subservient to other. You start from Human
resource
Planning and there is a continual value addition at each step

47
 selection

➢ Human Resource Planning:Generally, we consider Human Resource

➢ Performance Management: It is meant to help the organization train,
Planning as the process of people forecasting. Right but incomplete! It
motivate and reward workers. It is also meant to ensure that the
also involves the processes of Evaluation,romotion
P and layoff.
organizational goals are met with efficiency. The process not only
➢ Recruitment:It aims at attracting applicants that match a certain Job
includes the employees but can also be for a department, product,
criteria.
service or customer process; all towards enhancing or adding value to
➢ Selection: The next level of filtration. Aims at short listing candidates
them.
who are the nearest match in terms qualifications, expertise and potential
for a certainthere
Nowadays job. is an automated performance management system
➢ Hiring: Deciding
(PMS) that upon
carries all the
the final candidate
information towho
helpgets the job.evaluate the
managers
➢ Training andof
performance Development : Those
the employees processes
and that work
assess them on an employee
accordingly on their
onboard for his
training and skills and abilities
development needs. upgradation.
➢ Employee Remuneration and Benefits Administration: The process
➢ involves
Employee Relations:
deciding Employee
upon salaries retention
and wages, is a Fringe
Incentives, nuisance with
Benefits
organizations
and Perquisitesespecially
etc. Moneyini industries
s the primethat are hugely
motivator in anycompetitive
job and in
nature. Though
therefore there areofmyriad
the importance factorsPerforming
this process. that motivate an individual
employees seek to
stick tobetter
raises, or leave anand
salaries organization,
bonuses. but certainly few are under our
control.

Employee relations include Labor Law and Relations, Working

Environment, Employee health and safety, Employee- Employee
conflict management, Employee- Employee Conflict Management,
Quality of Work Life, Workers Compensation, Employee Wellness
and assistance programs, Counseling for occupational stress. All these
are critical to employee retention apart from the money which is only a
hygiene factor.

All processes are integral to the survival and success of HR strategies

and no single process can work in isolation; there has to be a high level
of conformity and cohesiveness between the same.

The key areas of HRM Process are:

1)Human resource planning

2) Attraction – also called as recruitment
3) Selection
4) Directing
5) Training and development

48
6) Performance appraisal
7) Promote, demote or transfer regarding to performances

4.5 HUMAN RESOURCE MANAGEMENT-KEY

RESPONSIBILITES

49
Human resource management is concerned with the development of
both individuals and the organization in which they operate. HRM,
then, is engaged not only in securing and developing the talents of
individual workers, but also in implementing programs that enhance
communication and cooperation between those individual workers in
order to nurture organizational development.

The primary responsibilities associated with human resource

management include: job analysis and staffing, organization and
utilization of work force, measurement and appraisal of work force
performance, implementation of reward systems for employees,
professional development of workers, and maintenance of work force.

https://www.slideshare.net/dmeyeravc/chapter-8-human-
resources-12871399

50
• Job analysis consists of determining—often with the help of other
company areas—the nature and responsibilities of various employment
positions. This can encompass determination of the skills and
experiences necessary to adequately perform in a position,
identification of job and industry trends, and anticipation of future
employment levels and skill requirements. Job analysis is the
cornerstone of HRM practice because it provides valid information
about jobs that is used to hire and promote people, establish wages,
determine training needs, and make other important HRM decisions.
Staffing, meanwhile, is the actual process of managing the flow of
personnel into, within (through transfers and promotions), and out of
an organization. Once the recruiting part of the staffing process has
been completed, selection is accomplished through job postings,
interviews, reference checks, testing, and other tools.

• Organization, utilization, and maintenance of a company's work force

is another key function of HRM. This involves designing an
organizational framework that makes maximum use of an enterprise's
human resources and establishing systems of communication that help
the organization operate in a unified manner. Other responsibilities in
this area include safety and health and worker-management relations.
Human resource maintenance activities related to safety and health
usually entail compliance with federal laws that protect employees
from hazards in the workplace. These regulations are handed down
from several federal agencies, including the Occupational Safety and
Health Administration (OSHA) and the Environmental Protection
Agency (EPA), and various state agencies, which implement laws in
the realms of worker's compensation, employee protection, and other
areas. Maintenance tasks related to worker-management relations
primarily entail: working with labor unions; handling grievances
related to misconduct, such as theft or
53
 sexual harassment; and devising communication systems to foster cooperation and
a shared sense of mission among employees.

• Performance appraisal is the practice of assessing employee job

performance and providing feedback to those employees about both
positive and negative aspects of their performance. Performance
measurements are very important both for the organization and the
individual, for they are the primary data used in determining salary
increases, promotions, and, in the case of workers who perform
unsatisfactorily, dismissal.

• Reward systems are typically managed by HR areas as well. This

aspect of human resource management is very important, for it is the
mechanism by which organizations provide their workers with rewards
for past achievements and incentives for high performance in the
future. It is also the mechanism by which organizations address
problems within their work force, through institution of disciplinary
measures. Aligning the work force with company goals, "requires
offering workers an employment relationship that motivates them to
take ownership of the business plan."

• Employee development and training is another vital responsibility of

HR personnel. HR is responsible for researching an organization's
training needs, and for initiating and evaluating employee development
programs designed to address those needs. These training programs can
range from orientation programs, which are designed to acclimate new
hires to the company, to ambitious education programs intended to
familiarize workers with a new software system.

"After getting the right talent into the organization," "the second
•
traditional challenge to human resources is to align the workforce with
the business—to constantly build the capacity of the workforce to
execute the business plan." This is done through performance
training, and other activities. In the realm of performance appraisal,
HRM professionals must devise uniform appraisal standards, develop
review techniques, train managers to administer the appraisals, and
then evaluate and follow up on the effectiveness of performance
reviews. They must also tie the appraisal process into compensation
and incentive strategies, and work to ensure that federal regulations are
observed.

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55
 4.6 Responsibilities of the Human Resource Management
Department in Banks

The role of the Human Resource Department is to create the climate &
conditions in which management throughout the Bank will be enabled
to optimise the individual & collective contribution of all employees to
the short & long-term success of the Bank.
•
Responsibilities:  To be the principal sponsor & ―guardian‖ of HR
policies in the Bank.  To propose & obtain agreement on changes to
these policies from time to time & to ensure that policies which have
been agreed are being implemented throughout the Bank.  To
contribute fully to the task of meeting the business challenges which
the bank has to face by supporting Branch/Unit Managers in
continuously developing the potential of employees & in creating
conditions in which all the employees are motivated to meet the
objectives of the Bank.  To continuously monitor the Bank‘s
strategies to ensure that HR policies are appropriate & that employee
numbers & skills are fully supportive of such strategies.  To deliver a
full range of personnel services in support of line management. These
services include manpower planning, recruitment/transfer,
remuneration, and training & employee welfare.  To support line
management in their day-to-day management of the workforce by
providing advice & consultancy on personnel & performance
management issues.

52
4.7 EMPLOYEE RELATIONS IN BANKS

The banking sector has been characterized by apparently harmonious

industrial relations & has not suffered from the ―British Diseases‖ of
industrial action & demarcation issues associated with parts of
manufacturing industry (e.g. Batstone, 1984). Banks have promoted
unitarism (Fox, 1966) encouraging an ethos of teamwork, shared
interest & loyalty, wanting commitment beyond the cash nexus. While
banks are generally seen as having a passive approach to employee
relations, paternalism did underpin the system & particularly important
was the system of internal promotion supported by an unwritten
agreement between the major UK Banks on no poaching. The internal
labour market created two categories of employees: career & noncareer
which equated to a male/female divide. Retail banking is a highly
labour intensive industry with labour costs forming 70%of total
operating expenditure & ―involvement in fund transmissions meant
that a majority of clerical staff have not been used as a means of
marketing the bank‘s products nor directly for increasing business but
to process existing accounts. They have been regarded as an overhead
rather than a resource.‖ Until the 1980s, competition between the
Banks has been limited, banks operating as an oligopoly&
Government‘s concern with maintaining economic stability with limits
to lending, & control over interest rates facilitated this. The oligopoly
fed through to the management of staff - 38 - as national wage
bargaining minimized competition for labour. However deregulation
led to the collapse of the national system & a questioning of the old
employment practices.

57
 4.8 HUMAN RESOURCE MANAGEMENT IN PUBLIC AND
PRIVATE
SECTOR BANKS
Introduction:
At present, Indian banking sector is facing wide variety of
opportunities and the bright future scenario. The changing economic
scenario, represented by rapid process of globalization has brought out
all the nations of the world together, without geographical boundaries
for trade and commerce but with great amount of employment
opportunities for individuals. Due to rapid advancement in information
technology and telecommunication in the recent years, the banking
industry has been undergoing rapid changes, reflecting a number of
ongoing reform processes. However, there are certain problems in the
Indian Banking system, which require great attention.

Some of the major problems are:

•

Continuous accumulation of morass, which hampers the profitability of

the banks

•
Accumulation of Non-Performing Assets (NPAs), which threatens
capital adequacy and continuous stability of banks.

•
Some of the public sector banks are facing heavy over staffing, which
reduces productivity of the banks.

•
Above all these require a drastic change in the recruitment, training,
placement and promotion policies of the banks. Thus, the main concern
is how to remove legacies of the past and meet the demands and
challenges of the new era
HUMAN RESOURCE MANAGEMENT PRACTICES

Human resources management practices play a very vital role in

achieving the organization's goals and maintain the competitive
advantage.
HRM practices refer to organizational activities directed at managing
the pool of human resource and ensuring that the resources are
employed towards the fulfillment of organizational goals (Schuler &
Jackson 1987). Human resource management practices is the
management of people within the internal environment of
organizations, comprises the activities, policies, and practices involved
in planning, obtaining, developing, utilizing, evaluating, maintaining,
and retaining the appropriate numbers and skill mix of employees to
achieve the organization's objectives (Appelbaum 2001). Presently
organizations are competing through implementing the unique HRM
practices and due to the globalization organizations adopt the most
upto-date HRM practices in order to accomplish the organizational
goals. Best HRM practices are advantageous for both employee and
employer; it plays an important role in constructive growth of the
organization.

Keeping in view of HRM practices, it is understood that the HRM did

not has direct role in business development but was more concerned
with centralized recruitment to staff. In this context, the review of the
study covers the following most important indicators of HR practices,
which were followed by any public sector bank.

Job analysis:
Job analysis involves collecting information about the characteristics of
a job using one of several methods: observation, interviewing,
questionnaires, or more specialized job analysis methods such as
position or functional analysis. Organizations sometimes use a
combination of job analysis methods (Hawthorne, 2004: Mathis &
Jackson, 1997). All the Banking authorities reported that they follow a
combination of several methods for job analysis of the employee.

Recruitment and selection:

Public Sector Banks follows systematic procedure in recruitment and
selection activities. For Recruitment and Selection these banks follows

59
some standard most of the cases. The practiced arrangement for
selection and recruitment is the corporate decide what positions will
have to fill and how to fill the immediate as well as future
requirements. This total procedure is designed to cover all positions
from bottom to top level. Indian Public Sector Banks use both methods
of recruitment i.e., internal and external markets. Usually, for clerical
and officer posts, external market is used through advertising etc. On
the other hand, the managerial/executive positions are filled up through
promotions and transfers i.e., for higher positions the internal market is
usually relied upon. In some of the PSBs in India.

Training and Development:

HRD as one of the major functional area in HRM. Continuing
education and training programmes are essential considerations to
enrich their careers and excel their development Banking activities and
knowledge is ever changing. In order to cope up with these changes
and to develop employees' careers all banks established their own
training institute. Those institutes organized different types of training
and development programmes based on the employees need. Those
needs are identified by need assessment activities.
Training is more in IPSBs because the training system in the banking
industry has a strong structural base, and has capabilities to handle
training in large numbers. The system has also developed several
innovative activities in the training area such as on-location training,
manager to messenger programmes. Further the IPSBs have a good
support to training efforts from apex level training institutions such as
National Institute of Bank Management (NIBM), Bankers Training
College (BTC), and College of Agricultural Banking (CAB). The
IPSBs have more than three hundred individual bank level training
colleges and training centers.
Training is given emphasis by all banks, although not much systematic
training need analysis is carried out. The training colleges conduct
training programmes for relatively junior level bank staff. For most of
the senior level training, banks depend on external agencies, especially
foreign training organizations. Training establishments of some of the
bigger banks complain of under utilization.
Performance Appraisal:
Performance appraisal is the systematic, periodic and an impartial
rating of the employee's excellence in matters pertaining to his present
job and of his potentialities for a better job. Public Sector Banks in
India give more attention towards performance appraisal in the
organizations. Performance appraisal based on quality of output,
potential of the employee within the organization etc. need to be

60
incorporated across all grade, cadres and levels. This will not only
ensure maximizing productivity, but also go a long way in motivating
star performers aligning with the long-term mission and vision of
banks.
Compensation:
In general, the compensation in Public Sector banks is mostly based on
seniority or work experience. The Indian public sector banks should
reward their professionally qualified employees by scale up-gradation
and special increments besides motivating and encouraging them to
acquire new knowledge. Common pay structures based on number of
years of service with the bank put in etc need to be phased out in a
planned manner.

4.9 CASE STUDIES

61
CASE STUDY 1

HDFC BANK

https://customers.microsoft.com/en-us/story/726570-hdfcbank-
banking-capital-markets-sql-server-machinelearning-services

HDFC Bank uses A Comprehensive HR approach to respond to

changing resource needs.
Rapid growth in a burgeoning new market should be cause for
celebration—unless the organization that's growing can't keep up with
the demands of an expanding workforce or simplify the management of
multiple databases. But Mumbai, India-based HDFC Bank wasn't about
to let that happen.

62
Initially the premier bank in the corporate sector, HDFC Bank began its
expansion into the retail market in 1995. Now, as it adds thousands of
new customers each day and manages dramatic increases in its retail
loan portfolio—22 percent in 2003 alone—the bank is facing the
challenges that come with rapid success.

"Today's competitive environment means that human resources [HR]

must refocus away from activities that sap value from the organization
and instead focus on achieving outcomes that improve company
performance," says C.N. Ram, head of information technology at
HDFC Bank. HDFC was already an established leader in eliminating
the inefficiency traditionally associated with resource planning and
management, and bank management knew just what to do.

"Due to significant growth in the number of our employees over the

past few years, we could no longer handle our human capital
management on Microsoft Excel spreadsheets and homegrown
reports," says Ram. In addition, management understood that high
growth rates might have jeopardized product quality, while tension
about relative compensation levels between the sales personnel in the
branch and operations could have threatened HDFC Bank's culture.

People Are Our Business, Too

The bank decided to implement Oracle Human Resources applications
so that HR planning and tracking could be handled more efficiently.
"We had already compiled large amounts of data about employees who
had been with us for awhile, but we lacked a workable way to store
other kinds of information, such as data about family members and
career paths at HDFC Bank," Ram explains. "We can now capture
everything, which gives senior management better data for
performance evaluations and helps them do better career planning."
The solution also allows the bank to compensate on the basis of
performance and provide targeted career development, which raises

63
credibility with employees and helps the bank attract and retain top
candidates.

HDFC Bank has also implemented Oracle's applications for HR

analysis and reporting across the enterprise, providing management
with the ability to drill down into performance and cost on an
exceedingly granular level. This gives the bank the flexibility to tailor
employee record-keeping while remaining in compliance with
employment laws. Additionally, the automation of actions such as
warnings, e-mail notifications, and vacation hour balances gives the
bank a complete profile for each employee. "The comprehensive
reporting capabilities save a lot of staff time and allow us to handle
profiles, skill sets, and training and integrate them with the payroll
system," continues Ram.

Low Costs Key to Profitability

A big part of the bank's tremendous performance and profitability is

tied to the low cost of operations driven by automation and reduced
employee costs. The total automation of HR processes has reduced
errors and introduced a best-practices approach that encourages
employees to perform well and allows them to reap the rewards of their
good performance. "Organization-building and our high commitment
to HR management are paying off," says Ram. "These kinds of changes
can be extremely destabilizing if not managed appropriately, but
HDFC Bank has embraced the right formula, and the right applications,
for successful employee management and tracking."

HDFC Bank has also implemented Oracle Balanced Scorecard for its
HR function, to evaluate the effectiveness of its HR management.
Through this approach, the bank is able to measure and improve the
effectiveness of support functions and quantify non-financial measures
to better track those functions. It has also transformed the HR

64
department from a purely administrative organization to one that has
significant input in recruitment, development, and strategic planning.
And it's able to track the effect of management systems on shareholder
influence, flows, rewards, and work systems.
Table I Showing the Mean Value and Standard Deviation of HRM
practices and Job Satisfaction.

The training practices provide satisfaction to all the respondents

between “small extents” to “very great extent”. On an average the
respondents are satisfied to a large extent from the training practices
provided by the organization. The performance appraisal system
provides satisfaction to all the respondents between “moderate extents”
to “very great extent”. On an average the respondents are satisfied to a
large extent from the performance appraisal system provided by the
organization. Respondents are satisfied to a small extent with the
training practices and Employee participation practices offered by the
Bank. The most important factor compensation showed that
respondents are satisfied “to a large extents” with the salary packages
and other remunerations benefits. The average value (3.55) showed that
the employees are satisfied to large extent with the HRM practices
offered by the Bank. The mean value of Job satisfaction showed that
the employees are satisfied to a large extent.

Table I Showing the Mean Value and Standard Deviation of HRM practices and
Job Satisfaction

65
66
4.10 CASE STUDY 2

ICICI

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bank-launches-unique-otp-based-self-servicedelivery-facility-details-
1502850810.html

The achievement of an organization is the result of the combined

efforts of eachand every employee. All individuals want to do a good
job, and if they are provided with the proper environment, they will do
so. People rarely succeed at anything unless they enjoy doing it. The
Bank has always viewed Human Resource (HR) Development as a
critical activity, as it plays a very important role in culture building and
gives an impetus to the effort put in achieving business goals more
efficiently. A seminar was conducted in January 1999 which enabled
the Bank to establish Clearly the link between businesses strategy and
human resource strategy. Accordingly, different kinds of mindsets were

67
worked out to ascertain the requirements in the staff in the three main
lines of business ± corporate banking, retail banking and treasury
operations. In the foreign banks and private sector banks, however,
there has been growing recruitment amongst the officers' cadre with a
decline in the recruitment of clerical and subordinate staff. Private
Banks started the decade with 24.5% of staff as officers, 54.8% as
clerical, and 20.7% as subordinate staff. By the end of the decade
36.2% of the staff were officers, 45.9%were clerical, and 17.9% were
subordinate staff. Three different job profiles viz., customer service and
cross selling of products, back office operations and marketing and
sales emerged after the new organizational Structure was put in place.
Three different job profiles viz., customer service and cross selling of
products, back office operations and marketing and sales emerged after
the new organizational structure was put in place. The recruitment
process has been fine tuned through specially devised processes that
identify an individuals degree of customer orientation ± the principal
trait needed in the banking business. New recruits have been provided
training in skill up gradation and team building and development of an
appropriate mindset for better conduct of banking business. Training
programs of shorter duration were designed for the existing staff, with
specific focus on product information, customer service, cross selling
of products and operational excellence. The promotion process has
been designed on the principles of openness and transparency. Career
progression is based on performance of employees being above an
acceptable level with emphasize on those with high business drive and
potential. These exercises are carried out by the Career Development
Centre, which offers a comprehensive competency building program.
This process has been followed for the last 5 years and has been
perceived as being fair and credible by the employees

A high level of performance is rewarded by a system of performance

bonus. The ratio of variable bonus to fixed salary is fairly high to
attract and retain the best talent in the Bank. In the private and foreign
banks there are larger pay differentials, fewer rewards for tenure, and

68
individual incentives are high. Further, to ensure that the Bank does not
lose high performers and to increase the motivation levels and instill a
feeling of ownership, the Bank has introduced an Employee Stock
Option Scheme (the Scheme). On an average, an employee received 37
hours of training during the year. The Bank conducted 34 internal and
67 external training programs involving 658 and 198 employees
respectively. Further, 22 employees were a part of overseas training
programs

69
 4.11 A Case Study of Axis Bank: Relationship between
Empowerment and Job Satisfaction

https://twitter.com/AxisBank/status/484304345815465984
/photo/1

70
Abstract: -
This study aim to investigate the concept of empowerment and
examine the relationship between empowerment and job satisfaction
among employees of Axis Bank in New Delhi..In banking industry
employee empowerment and job satisfaction are correlated , it is
assumed that satisfied employee can empower the responsibilities of an
organization. Employee empowerment is only possible when the
employees are fully satisfied with their job so first of all we check the
job satisfaction of employees which is the prime factor of employee
empowerment. Hear we used Minnesota Satisfaction Questionnaire
(MCQ) , the purpose of this questionnaire is know how one feel about
their current job, what are the things that satisfies employee and also
the factors for dissatisfaction. On the basis of the answers of the
employee ,it is easier to list up the things which satisfied employees
and helps to create empowered environment. A suitable sample of
employees selected from six branches of the Axis bank in New Delhi.
It consists of one hundred employees. A five point Likert Scale
questionnaire containing seventeen questions extracted from the short
form of Minnesota Satisfaction Questionnaire (MSQ) was administered
for data collection. Majorly the questions are based on personal
characteristics, but the questionnaire also includes some important
dimensions of organizational structure. The results of the study states
that: There is a positive relationship between employee empowerment
and job satisfaction. The study recommended that management should
give high attention for employees empowerment in all organizations in
general. Some suggestions for further research and improving were
also made. Key words: - Employee Empowerment, Job Satisfaction,
Interpersonal Relationship, and Organizational Environment.

INTRODUCTION
Axis Bank is the third largest private sector bank in India. The Bank
offers the entire spectrum of financial services to customer segments
covering Large and Mid-Corporates, MSME, Agriculture and Retail
Businesses. The Bank has a large footprint of 2589 domestic branches
(including extension counters) and 12,355 ATMs spread across the
country as on 31st March 2015. The overseas operations of the Bank
are spread over nine international offices with branches at Singapore,
Hong Kong, Dubai (at the DIFC), Colombo and Shanghai;
representative offices at Dhaka, Dubai, Abu Dhabi and an overseas
subsidiary at London, UK. The international offices focus on corporate
lending, trade finance, syndication, investment banking and liability
businesses. Axis Bank is one of the first new generation private sector
banks to have begun operations in 1994. With a balance sheet size of
Rs. 4,61,932 crores as on 31st March 2015, Axis Bank has achieved

71
consistent growth and stable asset quality with a 5 year CAGR (201011
to 2014-15) of 21% in Total Assets, 18% in Total Deposits, 22% in
Total Advances and 24% in Net Profit. With the introduction of Axis
bank , lets discuss more about employee empowerment and job
satisfaction Taylorism of Frederick Taylor (1911) popularly known as
‘scientific management’ also become the source of studies on employee
empowerment. For the last two decades, the employees’ empowerment
has been a focus of research and practice. It is considered to be a
critical issue in organizational performance. Employee Empowerment
is generally, understood an attitude towards one’s responsibility. It
simply indicates one’s power to take decision in their job. The most
accepted meaning in literature, according to Cranny et. al. (1992) is the
degree to which one enjoys doing his /her job. The modern era is
marked by a cut-throat competition in the market place. The market
situations, technology, labour, work environment, and work culture are
changing very rapidly. Hence, one’s survival in market may depend on
skilled, knowledgeable, committed, hard working and satisfied
employees. To retain existing and attracting potential candidates
having high dedication towards work is the key to success for any
organization including the banking sector. The need for such studies
also stems from the fact that organizations try to devise effective
mechanisms to make work environment congenial for employees. Such
studies help organizations to devise ways to motivate employees to
inculcate belongingness and improve health of organization. Banks like
many other organizations are also faced with resistance to change,
rewards, promotion policies, working conditions etc. Sporadic
agitations by banking employees are indicative of the fact that
understanding empowerment of employees is very vital. The scope of
this extends to all aspects of working environment and across various
categories of employees within and outside banking organizations

OBJECTIVE OF THE STUDY

This study was carried out with the following objectives;

• To assess the level of employee empowerment of the Axis bank.

• To examine the relationship between empowerment and job
satisfaction among employees of Axis Bank.
• To identify organizational factors contributing towards the job
satisfaction and empowerment of employees of Axis bank.
The present study was carried out with an aims to help decision makers
to improve job satisfaction among expatriate employees of Axis Bank
through employees empowerment Many studyon employees

72
empowerment provide a conceptual framework about the impact of
employees empowerment on job satisfaction. Therefore, there is an
urgent need for more systematic and empirical efforts to investigate the
role of empowerment among employees. The Axis Bank, a private
commercial bank having branches in New Delhi. It covers employees
working in the Axis bank. The employees belong to different
categories such as officers, clerical staff and support-staff. The study
explores level of employee empowerment among team working in the
the Axis Bank and examine it in organizational context, such as,
rewards, promotion policies, working conditions, career development,
inter-relationships etc., which affect job satisfaction , motivation.
Hence, another important question emerges, to what extent employees
are satisfied with the organization structure? Above all, it can be said,
that empowerment is very important for the individual and as well as
an organizational concern. In today’s competitive work environment
with diversity in human resource, technological interventions, changing
nature of job, differential expectations, new management practices,
demands for specialized skills etc., the success and growth of any
organization, to a great extent, depends on its employees. In this phase
when employee’s expectations are not met by the organization and vice
versa then various disputes take place. These disputes may cause loss
of workforce, wages and production. This is also true to the banking
sector.

OBSERVATIONS
The statistical data in terms of gender, education, marital status, work
experience and respondents’ designation, monthly income of hundred
employees of the Axis banks of New Delhi are presented in Table No.
1..All-important demographic characteristics like age, sex, level of
income, level of education and profession were taken into
consideration while seeking the response from the employees. The
effort was made to give a balanced representation to above
demographic characteristics to make the sample representative. A
considerable number of respondents belonged were male (64 ) whereas
(56) percent of them were female. It is clear from the data that only14
of the employees are graduates, 70 of the employees are post-graduate
and the remaining 16 were 10+2 in Axis Bank. Therefore, the study
implies that the majority of the employees working in Axis are highly
educated. It has been observed from the data that majority of the
respondents 54 in Axis Bank were in the age group of 20-30 years, and
8 were in the age group of 46 and above, whereas those who were in
the age group of 20-30 years were 54. It has been observed from the
data that 20 of the respondents are working on managerial post,
whereas 80 are officers the rest 20 are in support staff. 26 of
respondents belong to salary group of up to Rs. 20000 while 32 of

73
respondents belonged to second group where salary is upto Rs.40,000
and the remaining 42 belong to highest paid salary group

Table 1:- Particulars of 100 Respondents

PARTICULA GROU RAT
RS P E
Gender Male 64

Female 56

Education 16
Upto
secondar
y
Graduati 14
on

Post 70
Graduati
on
Martial Status Married 71

Unmarrie 29
d

Age 20-30 54

31-45 48

46 and 8
above

Income Upto 20,000 26

20,000- 32
40,000

74
 Above 40,000 42

Positions Manager 20
s

Officers 60

Support Staff 20

https://www.rsisinternational.org/IJRSI/Issue27/122-
126.pdf

CONCLUSIONS

The analysis from our collected data , signifies that the employees in
the Axis Bank of New Delhi cultivate differential level of satisfaction
across organizational variables, such as, Training and development,
nature of job, inter personal relationship , job security ,

75
communication, autonomy, chance to do things for other people,
reward and recognition , attitude of superiors, role clarity, feeling of
accomplishment, chance to implement own ideas, freedom of
judgment, chance of advancement, chance to delegate work etc. On the
basis of statistical analysis, difference in percentage between
satisfaction and dissatisfaction suggests that factors of nature of work,
job security, attitude of supervisors and role clarity are more significant
in determining job satisfaction and empowerment of employees of the
Axis bank in New Delhi. It can be pointed out that improvement in
organizational variables, most particularly, in performance appraisal
system, promotional strategies, position status and related rewards etc.,
may enhance job satisfaction and morale of employees in the Axis
Bank. The analysis also conclude that the variables which are taken to
measure the job satisfaction and employee empowerment are reflecting
the direct relationship . Satisfied Employees are ready to shoulder the
responsibilities or it can be said that satisfied employees are also
empowered employee

REFERENCES [1]
Aarti Sharma, (2013). Job satisfaction among bank employees. International Journal
of Scientific and Technology Research, Vol.2, Issue 8.
[2]. Abbas .S.M Shariq (2011). Banking professionals and attitudinal dimensions
of job satisfaction: A descriptive study. International Journal of Research in
Commerce, I.T, and Management. Vol. 1, Issue 6.

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 [3]. Archana Singh (2011) An enhancing productivity and performance of the
employees by exploring employee satisfaction: an efficacious tool for it sector
in India. International Journal of Management in Education, Vol.1, Issue5,
pp.20-30.
[4]. Asondariya, Dipeshkumar D., (2008) A study of achievement motivation,
adjustment and job satisfaction of Vidyasahayak teachers of Saurashtra Kutch.
Thesis Ph.D, Saurashtra University.
[5]. Cheng, S. H. (2006)."Empowering behavior and work outcomes: Selfefficacy
as a mediating variable". Journal of Applied Psychology, 74: 580-90.
[6]. Cranny, C. J., Smith, P. C., and Stone, E. F. (1992). Job Satisfaction:
How People Feel About Their Jobs and How It Affects Their Performance. New
York :Lexigton Books.
[7]. Deshwal Pankaj (2011) Job satisfaction: A study of those who mould the future
of India. Global Conference on Innovations in Management at London, United
Kingdom, pp. 164-172.
[8]. Jagannathan, R. and Sundar K. (2011) Job satisfaction among the
employees of life insurance corporation of India Vellore division, Tamil Nadu,
India. International Journal of Current Research, Vol.3, Issue 9, pp. 157-164.
[9]. Shallu Sehgal (2012) Job satisfaction of bank employees in Shimla,
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[10]. Soumendu Biswas (2011) Psychological Climate as an Antecedent of
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among ban.

CHAPTER 5
5 .FINDING, CONCLUSIONS AND SUGGESTION

5.1 FINDING

77
 The journey of this research has been challenging but equally fulfilling for
the researcher. This inquiry has helped the researcher to gain knowledge not
only related to the HR challenges, but also to build perspectives related to
different aspects of management of not for profit organizations and the role
played by other actors such as government, funding agencies, corporate and
community members. Mentioned below is a brief summary of the preceding
chapters of this report followed by findings and suggestions. Chapter 1
explains the rationale for the study and explains the theoretical concepts
related to Human Resource Management, ‘Development’ and relationship
between HRM and Development. It also includes discussion about similarities
in Values and Principles in Social work practice and HR along with the
significance of Development Sector Organizations. There is a list of broad
research questions which have been instrumental in framing the inquiry.
Second Chapter includes review of related literature. Literature review is
presented in following thematic categories: HR challenges and needs of DSOs
in general in India and abroad; Specific areas of HR such as Talent
acquisition, Marketing and communication for recruitment, Performance
management, Employee motivation & rewards, Subjective wellbeing; Gender
related HR aspects of development sector organizations and HR aspects of
specific categories of employees: Professional social workers and field
workers. Chapter 3 explains Research methodology used for the study.
Researcher has used mixed method approach for deriving benefits of both
quantitative and qualitative methodologies. Researcher selected 14
Development Sector Organizations working in variety of focus areas such as
Health care, Education, Agriculture & Livelihood, Disable Welfare, Training
& Skill development and so on. Responses from 42 candidates have been
analyzed and presented in Chapter 4 which is about Data analysis and
Interpretation. The second part of the same chapter includes detailed case
studies of 11 DSOs describing their HR challenges, strengths, weaknesses and
good practices. Researcher has made efforts to fulfil all research objectives as
mentioned in the methodology while collecting secondary and primary data
and interpreting it. Mentioned below are major findings based on the study
followed by suggestions.

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5.2 Conclusions
HRM and line managers will always remain pivotal in the success of
the suggestion system. Managers should use any possible management
tool that contributes to their survival and success in the current
competitive economies globally.

The most under-valued management tool available is the suggestion

system which consists of a formal procedure that encourages
employees to think innovatively and creatively about their work and
work environment, and to produce ideas. To achieve greater employee
involvement that eventually leads to greater tangible benefits such as
cost savings, better sales and intangible benefits such as higher levels
of morale are some of the goals.

Managers must have incentives in place in their organisations for

employees to feel that submission of their useable ideas will be
rewarded. Explanation and awareness of the suggestion system could
be done during the pre-employment stage or the induction stage.
Administrative delays result in the employees getting the impression
that the organisation does not view their ideas as worthwhile but it can
be minimised with the use of software to manage the process
effectively and efficiently.

Feedback should also be given to all stakeholders as is explained in

Figure 1. A flow chart (Figure 1) was developed to assist HRM and
managers in the suggestion system process. Some interesting responses
were discussed and some implications for entrepreneurs were pointed
out.

The motivational effect that recognition and rewarding have, must

never be under estimated. Therefore, it is concluded that a suggestion
system is the perfect tool for HRM and managers on their road to
success.

HRM is the key aspect that joins the modern world to the strategic
management of the organization. Strategic management may address
the implementation of a people centred management , intellectual
capital ,human capital and knowledge management but it is through
human resource management that these aspects are implemented in the
organization through training ,development ,recruitment and selection.
It ensures that the tools of the modern world (internet and e-commerce
are addressed and incorporated into the existing training and
development courses.
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5.3 References
[1]. Becker, B. E., & Huselid, M. A. (2006). Strategic human resource
management: Where do we go from here? Journal of Management, 32(6),
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[2]. Becker, B. E., Huselid, M. A., & Ulrich, D. (2001). The HR scorecard:
Linking people, strategy, and performance. Boston: Harvard Business School
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[3]. Beckers, A. M., & Bsat, M. Z. (2002). A DSS classification model for
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[4]. Bussler, L., & Davis, E. (2001/2002). Information systems: The quiet
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[5]. Greer, C. (1995). Strategy and human resources: A general managerial
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[7]. Huselid, M. A., Becker, B. E., & Beatty, R. W. (2005). The workforce
scorecard: Managing human capital to execute strategy. Boston: Harvard
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strategic human resource management effectiveness as determinants of firm
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