CHAPTER I

INTRODUCTION

The Study is defined to explore the organizational Performance towards City Union
Bank Management, Kumbakonam. This section focuses on the need for the study, objective of
the study, statement of the problem, methods adopted to conduct the study and the type of the
research. The data collection methods, sample, sample size and sampling methods are also
discussed. This chapter explains the methods used in carrying out of the study, explains the
need for the study, objectives of the study, statement of the problem and the period of the study,
research design, sampling method, data sources and the statistical tools used to analyse the
data.

HRM is the procedure of hiring the suitable candidate, at the appropriate job and train
them so that they can be a resourceful asset to the organisation. HRM is the way towards
procuring and creating representatives with the goal so that they turn out to be more profitable,
but function of HR is not limited to finding a suitable candidate, it is much deeper, one has to
understand the employability skills which are needed for the particular job profile. It is essential
for HR practitioner to map these skills with the job descriptions, to acquire resourceful human
capital. Hence, identifying and mapping the employability Skills and Competences becomes
and important task. With global economy the world has become a global village. As a
consequence, firms have become more aware of the need for having competent employees and
developing distinguished competencies for every organization.

Every well managed firm should have well defined roles and a list of competencies
required for performing each role effectively. They prefer to build a core competency that will
see them through crisis, if any. The choice is to develop the people because human resource is
seen to be the most valuable resource any organization has. Organizations of the future will
have to rely more on their competent employees than any other resource. It is a major factor
that determines the success of an organization. Competencies are the inner tools for motivating
employees, directing systems and processes and guiding business towards common goals that
allow the organizations to increase their value.

Competencies provide a common language and method that can integrate all the major
HR functions and services like Recruitment, Training, Performance Management,
Remuneration, Performance Appraisal, Career and Succession Planning and Integrated Human

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Resource Management System. Competencies are components of a job which are reflected in
behaviour that is observable in a workplace.

The common elements most frequently mentioned are knowledge, skills, abilities,
aptitudes, personal suitability behaviour and impact on performance at work. Competence’
means a skill and the standard of performance reached while competency refers to the
behaviour by which it is achieved.

COMPETENCY MAPPING

Competency mapping is the process of identifying key competencies for a particular

position in an organization. Once this process is complete, the map becomes an input for several
other HR processes such as job-evaluation; recruitment; training and development;
performance management; and succession planning.

• Knowledge is the expertise an employee needs for the role.

• Skills are what enable employees to do or accomplish the responsibilities of the
role.
• Personal attributes are how an employee will successfully approach or respond
to any given situation. This might include characteristics such as attitude,
business acumen, sense of ambition, empathy, leadership or other traits.

For competency mapping to be productive, the organization has to be clear about its
business goals in the short- as well as long-term and the capability-building imperatives for
achieving these business goals. The process starts from as macro an endeavour as
understanding the vision and mission of the organization and how that translates into specific,
time-bound business goals.

It then goes on to delineating the organization structure clearly, and identifying the
various levels and positions, as well as the reporting relationships obtaining within that. For
each position / level, the mapping exercise should outline the roles and responsibilities of the
position; short-term goals to the extent that they are qualified; skill sets required for the job;
and soft skill sets required for the job plus interaction with other units / personnel.

Though there are well-accepted guidelines and assessment tools such as psychometric
tests, the assessor’s skill will play an important role in deciding when a gap calls for training
and when it calls for redeployment Competency mapping comes in very useful in the situations

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like candidate appraisal for recruitment; employee potential appraisal for promotion; training
needs identification; performance diagnostics; and self-development initiatives.

The importance of competency mapping:

There is no greater asset to a company than its human capital, and companies who know
how to make the best use of their workforce’s skills, knowledge and attributes have the
strongest chances for success in the marketplace. But to capitalize on your employees’
strengths, you have to know what they are — and how they fit into the employee’s particular
role, their department and the organization as a whole. Competency mapping
answers this question.

Improved hiring and recruitment processes:

Talent acquisition is where we see competency mapping’s most obvious application. To

successfully source the right talent for the right role, hiring managers and recruiters need to
know how to craft a strong job description, what interview questions to ask and what skills to
test or look for during the hiring process. Through competency mapping, you can find out what
those are.

Competency mapping also allows you to drive company culture during the hiring
process by underscoring which values and behaviours need greater representation within your
workforce.

Inform learning and development strategy

Competency mapping can also inform your L&D strategy by outlining what
competencies you need for specific roles, and then assessing where skills, knowledge and
behaviours are falling short.

Having a strong grasp on critical core competencies and skills gaps within your
workforce allows you to take a more strategic approach to L&D and pinpoint exactly which
learning initiatives are going to be the most impactful for addressing the unique skills needs of
your workforce.

Additionally, this level of clarity allows people managers to chart a clear path to
advancement for their direct reports, including recommendations for specific education or other
development opportunities to help get them to the next level in their careers. This transparency

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also empowers workers, giving them the tools needed to take the lead on their own career
advancement and develop the competencies required for their desired career path.

The value of competency mapping

When considering roles within an organization, companies often rely on job

descriptions based on skills, tasks and responsibilities. Competency mapping brings full
context to the role and allows organizations to define their talent needs while providing a
transparent process for employees wanting to improve their performance or move up in the
company.

Success requires far more than skills — it requires knowledge, abilities, engagement
and more. Competency mapping provides a framework for capturing this data and putting it to
work for you.

Put your competency mapping findings into action: Download this step-by-step guide
to learn how to develop a skill-building program that drives results for your
business and people.

CITY UNION BANK

The City Union Bank Limited is an Indian bank. The Kumbakonam Bank Limited, as
it was at first called, was incorporated as a limited company on 31 October 1904. The bank
initially preferred the role of a regional bank in the Thanjavur district of Tamil Nadu. As of 3
November 2017, City Union Bank has a network of 562 computerized branches using TCS
BaNCS software and 1,526+ ATMs across the country. The bank also provides a gamut of
technological services like net banking, mobile banking, self-service kiosks, Bulk Note
Acceptors and Point of Sales etc. To cater to the needs of customers for many different walks
of life, the banks also have a wide offering of savings and deposit products to meet the demand
of various customers. It also offers many loan products to service the financial needs of small
individual customers to large industries.

India's first banking robot named Lakshmi was launched by City Union Bank in
November 2016. It is the first on-site humanoid (robot) in India. The robot is capable of
multitasking sensitive financial information like account details. There are about 120 questions
a bank customer could ask.

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 City Union Bank Ltd., incorporated in the year 1904, is a banking company (having a
market cap of Rs 10944.01 Crore).

City Union Bank Ltd. key Products/Revenue Segments include Interest & Discount on
Advances & Bills which contributed Rs 2590.21 Crore to Sales Value (81.61 % of Total Sales),
Income From Investment which contributed Rs 538.50 Crore to Sales Value (16.96 % of Total
Sales), Interest On Balances with RBI and Other Inter-Bank Funds which contributed Rs 27.26
Crore to Sales Value (0.85 % of Total Sales) and Interest which contributed Rs 17.81 Crore to
Sales Value (0.56 % of Total Sales)for the year ending 31-Mar-2017.

The Bank has reported a Gross Non-Performing Assets (Gross NPAs) of Rs 780.39
Crore (3.07 % of total assets) and Net Non-Performing Assets (Net NPAs) of Rs 440.98 Crore
(1.76% of total assets).

For the quarter ended 30-09-2017, the company has reported a Standalone Interest
Income of Rs 701.06 Crore, up 1.43 % from last quarter Interest Income of Rs 691.17 Crore
and up 8.23 % from last year same quarter Interest Income of Rs 647.77 Crore. The bank has
reported net profit after tax of Rs 144.76 Crore in latest quarter.

Additionally, the bank provides Demat services to its customers.

In 2004, the bank celebrated its Centenary, holding festivities on December 27, 2003,
at the Saraswathi Patasala Girl’s Higher Secondary School Grounds, Kumbakonam. The event
was chaired by Shri. V. Narayanan, with distinguished guests including Shri. R.
Venkataraman (Former President of India), Dr. A.R. Lakshmanan (Judge, Supreme Court,
New Delhi), and Shri. N. Rengachari (Retired Chairman, IRDA & Advisor to the Government
of Andhra Pradesh).

One of its journeys, almost one-third, revolved around a key figure—Shri. V.

Narayanan. His remarkable leadership style, unwavering vision for the bank’s consistent
growth across all fronts, tireless efforts in expanding the branch network, fostering
harmonious industrial relations, and the unique achievement of not losing a single man-day to
labor unrest, a notable record in the country, brought both personal acclaim and elevated the
bank’s standing in the entire Indian Banking Industry. His famous mantra, ‘Take care of the
bank; The bank will take care of you,’ worked wonders, enhancing morale and improving

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workforce productivity. Sadly, the bank lost its illustrious Chairman, Shri. V. Narayanan, in
an unexpected car accident near Chennai on November 5, 2004.

As of today, CUB boasts 757 branches and 1655 ATMs spread across pan India. The
bank has consistently earned net profits and paid dividends to shareholders every year since
its inception. As of September 30, 2023, the bank’s total deposits stood at Rs 49878 Cr, with
advances reaching Rs 42702 Cr. Notably, 42 per cent of the bank’s advances are dedicated to
the MSME sector.

Dr. N. Kamakodi’s visionary drive and persistent efforts to increase transactions

through alternate channels have significantly raised the percentage of alternate channel
transactions from 25 per cent to 96 per cent today. This has created an ecosystem that
positions CUB as a fantastic avenue for easy banking.

Under the guidance of Dr. N. Kamakodi, the bank implemented a robust IT

infrastructure, deploying ATMs, Bulk Note acceptors with recycling facilities, Self-Service
passbook kiosks, Self-Service Cheque acceptor kiosks, Multifunction kiosks, and more on a
large scale. New online applications such as Internet Banking, Mobile Banking, and Mobile
wallets were launched, offering various value-added services. The bank has been actively
promoting QR Codes, PoS devices, and Credit cards to customers.

The shift of transactions to alternate channels benefits both the bank and customers.
Customers can now conduct transactions from anywhere and anytime, making geography a
thing of the past. This not only saves their time and energy but also allows the bank to optimize
staff and enhance customer convenience.

CUB has been at the forefront of technology, pioneering numerous IT

implementations. Computerization began in 1990 with the deployment of Branch automation
software, CUB Soft. The first CBS application was implemented in 2004.

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Various banking technologies evolved at CUB over the years:

• Networked ATM operations and Net Banking commenced in 2005.

• Internet Banking was introduced in 2008.

• Mobile banking was deployed in 2010.

• Point of Sales machines were rolled out in 2011.

• Express Desk was introduced in 2012 at branches.

• Multi-functional Kiosks were introduced in 2013.

• Cash Acceptor Machines (BNAs) were implemented in 2014.

• Self-Service Pass Book Kiosks and Cheque Deposit machines were deployed in
2015.

• Credit cards were introduced in 2016.

• Mobile wallets were launched in 2017.

• CUB has been a pioneer in various technological implementations. Some noteworthy

examples include:

• Implementation of ROBOT ‘CUB Lakshmi,’ the first in the Indian Banking Industry
to serve customers.

• Introduction of the first multi-lingual Chatbot as part of the Mobile Banking app.

• Early adoption of Video KYC to seamlessly complete the customer on boarding.

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 • Early adoption of Wearable debit cards in the form of Key Chains and W
wristwatches, providing convenience for payments at PoS terminals using Near Field
Communication.

• Launching UPI123Pay, the UPI application aimed at rural penetration of digital

payments for basic phone users as part of a Financial Inclusion initiative.

• Introduction of Cardless Cash Withdrawal (ICCW) for withdrawing cash from ATMs
without a card, utilizing QR codes.

• Pioneering Voice Biometric Authentication for Mobile Banking, offering an

additional layer of authentication. This initiative is part of the 5G Innovation.

INNOVATIONS AT 20s

Continuous technological innovation is driven by our commitment to meeting customer

desires and providing the best service possible, aiming to minimize branch visits and enable
banking from the comfort of homes or any location. Many do it yourself channels has been
introduced and currently the digital penetration among our customers stands at approximately
96%.

For all banking transactions, customers no longer need to visit branches, except for those
requiring physical presence, such as Locker operations and pledging jewels for Jewel Loans.
Account opening is facilitated online through Mobile banking and the Video KYC verification
process.

CUB has implemented an end-to-end digital loan application and sanctioning process for
Retail and MSME loans. This digital process retrieves documents from borrowers, interacts
with other agencies for GST, demographic, and income tax details, and determines the loan
amount with scoring for applicants, simplifying the credit sanctioning process for authorities.
Customers experience swift sanction and disbursement with the least Turn Around Time
(TAT).

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 Extensive use of Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process
Automation (RPA) underscores CUB’s commitment to advanced technology.

CUB employs predictive analytics using AI/ML for various business cases.

Several significant use cases handled by RPA in CUB, previously managed manually
covering both internal and various customer-centric processes.

RPA is extensively used to enhance process efficiency, meet dynamic customer demands,
and streamline process automation.

OTHER INNOVATIONS OF CUB

CUB proudly introduced IVR based payment product UPI123 for feature phones
through which customers will be making payments through a step by step manual process. As
part of next innovation, they have launched “HELLO UPI” Conversational Payment through
UPI 123 in Regional Languages. Customers can now make conversational payments through
their Smart Phone or Feature Phone in their own language using voice. This will benefit
majority of customers who prefer conversing in their own language and also benefit Senior
Citizens and visually impaired to make payments.

CUB has implemented Interoperable Cardless Cash Withdrawal (ICCW) from ATM
using UPI in all NCR branded ATMs (around 800 ATMs). This feature will enable the account
holders to withdraw cash without using ATM cards. UPI QR code will be used to authenticate
the transaction. CUB is also in the process of enabling this facility in other ATM brands also.
With this the entire CUB ATMs will be capable of dispensing cash using UPI. CUB was the
FIRST Bank to launch this facility in the year 2019.

Another conversational payment feature was launched by CUB using IoT technology
for making conversational payment using Alexa. This pilot launch will facilitate customers to
make payments, account balance enquiry by conversing with Alexa. Customers can use this
facility by simply registering once with Alexa. IoT based technology are making the current
trend and CUB customers will be excited to use this facility.

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 Currently Customers can register for UPI service by using their ATM card. In order to
facilitate customers who do not have ATM card and to make them utilize UPI payment, CUB
has launched registering for UPI through their Aadhaar. This will penetrate more UPI usage
by customers who were deprived due to not having ATM card. Customers need to follow
simple steps to register themselves using their Aadhaar credentials and start making payments
using UPI.

In conclusion, any IT-based service in banking is available at CUB.

Banking sector always goes through transformations and ‘organizational

transformation’ is a continuous process to make any institution stay relevant in the market.
CUB is not an exception to this rule.

Keeping the next ten years in mind, CUB has to re-orient its people, processes and
technology. The changes in technology are opening new opportunities in banking, which were
not available earlier. For example, digital technology is making the banks to work without
constraints and next three years is going to be crucial for all banks including CUB to adapt to
those changes.

Along with technology, re-orientation of Human Resources of the bank to adapt to those
changes will be among my top priorities.

SOME OF THE BIGGEST DECISIONS OF CUB THAT HAVE IMPACTED THE

BANK POSITIVELY

While our bank has not believed in ‘big bang’ decisions, it has always believed in small
incremental changes resulting in continuous transformations. This strategy has helped the bank
to be among very few banks across the world that can claim to have 120 years of continuous
profitability and dividend declarations.

The digital transformation of the bank and HR transformation that happened in the bank
in the last two decades had been extremely satisfying. I am glad I have been a part of the
journey when bank grew from 128 branches to over 750 now.

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CUB’S MAJOR STRATEGIC INITIATIVES

CASA plays a big role in determining the net interest margin and cost of funds of the
bank. If you look 6 or 7 years back, our CASA percentage was hovering below 20% to total
deposits. Because of the coordinated efforts we took in the last decade, CASA had slowly and
steadily grown and now stands at 30%. We wish to strengthen our CASA position and hence
we have launched the salary account product. We are implementing digital lending process in
order to have a quick turnaround time on credit decisions with the help of API/account
aggregators.

We are also making tie-ups with Fintech companies as part of the digital lending
process. This will help us to venture into new verticals like housing and vehicle finance as well
as co-lending models. We had issued the CUB-Dhi credit card which had received good
response from our customers. Our lending is mostly secured with a focus towards MSMEs,
Traders and Agriculture/related sectors. Our new strategies will not change anything major in
terms of our credit mix but will definitely enhance our growth.

1.2 OBJECTIVES OF THE STUDY

1.2.1 PRIMARY OBJECTIVES

✓ A study on Competency mapping – A managerial perception on City Union

Bank, Kumbakonam.

1.2.2 SECONDARY OBJECTIVES

✓ To identify the competency gap that exists between the employee’s current
performance level and the expected level of the employees.
✓ To determine the employee perceptions about the implications of competency
mapping.
✓ To analyse the different activities, in which competency mapping is proved to
effective for the growth and performance of the organizations.
✓ To determine the effective measures for the employees required for the efficient
competency mapping
✓ To identify core competencies required for Leader, Manager and Associate
Manager band in aiding towards delivering business objectives.

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 ✓ Studying the relationship between competency factors affecting retention of
employees and employee retention.

1.3 RESEARCH METHODOLOGY

Research Methodology is a systematic way, which consists of actions or steps necessary
to effectively carry out research and the desired sequencing of these steps. The research is a
process which involves a number of interrelated activities, which overlap and do rigidly follow
a particular sequence.

The variables or the dimensions identified for the study are basic knowledge and skill,
personal competencies, communication skills, leadership skills, technical skills, interpersonal
skills, risk management skills, behavioural competencies and planning and objective setting. A
structured pretested questionnaire was developed to assess the competency levels for each
dimension.

PERIOD OF THE STUDY

The data were collected in the month of (March 1st – March 31st).

1.3.1. RESEARCH DESIGN

Research Design refers to “framework or plan for a study that guides the collection and
analysis of data”. A typical research design of a company basically tries to resolve the following
issues:
➢ Determining Data Collection Design.
➢ Determining Data Methods.
➢ Determining Data Sources.
➢ Determining Primary Data Collection Methods.
➢ Developing Questionnaires.
➢ Determining Sampling Plan.
The design (or) blue prints an essential part of the research. This study is carried out by
adopting Descriptive.
The descriptive research design has been used in this study to ensure the reliability of
the data collected.

Research instrument: Structured questionnaires were used for the purpose of

collecting the data.

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1.3.2 METHODS OF DATA COLLECTION

DATA COLLECTION
Data sources
➢ Primary Data through Questionnaire.
➢ Secondary Data through Internet.
➢ Contact Method.
➢ Personal Interaction.

Primary data: A data has been collected through survey among the Banking
professionals. Pilot testing was done for which the Cronbach's alpha was calculated as 0.943
which falls under the acceptable value. The questionnaire was provided via e-mail. The
questionnaires included sections namely Employee retention, Abilities, Skills Motives,
Behaviour, Personal Characteristics and Commitment. Five-point Likert scales has been used,
anchored by 1= strongly disagree and 5 = strongly agree, which indicated the level of their
agreement or disagreement. The questionnaire also had a section having information about the
demographics and general information of respondents.

Secondary data: Journals, books, and internet.

1.3.3 DATA SAMPLING

Data sampling is the process of choosing statistical samples from a population to

estimate the characteristics of the full population. It is the primary method for data collection.
This makes it easier to analyse and conclude statistical judgments about the population.

SAMPLING METHOD
Direct Contact and Questionnaire.
POPULATION
Population Size is 100.
1.3.4 SAMPLE SIZE

The sample size of the study included approximate 100 employees (preferably
managerial level) from CITY UNION BANK in Kumbakonam. The data collected through
questionnaire which has been analysed on Likert scale of 5 points. The study considers both
primary as well as secondary data. Secondary data are collected from websites containing
various aspects to help understand the topic of study “Competency Mapping”, Journals,
Articles, books related to the same topic was also studied in the secondary data.

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 Sample Size is the number of items to be selected from the population to constitute the
sample for the research. For this research a sample of 50 employees was taken.

Sampling method: Simple Random Sampling.

The Research is undertaken to study the competency mapping in Employees working

in City Union Bank, Palani.

QUESTIONNAIRE DESIGN

The Questionnaire is structured and it consists of open and closed ended questions.
There are a total of 20 questions with 5 dimensions that aims to cover all aspects of talent
management practice of the organization.

CHI – SQUARE TEST

The Chi-Square Test of Independence determines whether there is an association

between categorical variables (i.e. whether the variables are independent or related).It is a non-
parametric test.

➢ Chi – square test in the simplest and most widely used non probability test in statistical
work.
➢ Chi – square represent the magnitude of discreminance between theory and
observation.

FORMULA FOR CHI – SQUARE:

(O – E) 2/E With (n – 1) degree of freedom.

1.3.5 TOOLS FOR ANALYSIS

The data has analysed by the researcher using the standard statistical package namely
IBM SPSS 20 and IBM SPSSAMOS 23. All the data was collected; organized and then
properly tabulated for the study. Secondly, Structural Equation Modelling is applied for the
purpose of evaluating the factors affecting employee retention among BANKING
professionals.

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 FIGURE 1.1: COMPETENCY MODEL

TABLE 01: CHI SQUARE ANALYSIS

Degrees
Calculated Table
Hypotheses of Result
Value Value
Freedom
There is no significant
Not
association between the age and 16.92 9
7.484 Significant
role of competency
There is no significant
association between the Not
20.336 21.03 12
department and role of Significant
competency

There is no significant
association between the Not
15.762 16.92 9
qualification and role of Significant
competency

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There is no significant
association between the
23.319 21.03 12 Significant
experience and role of
competency
There is no significant
association between the Not
15.042 16.92 9
monthly salary and role of Significant
competency
TABLE 01: CHI SQUARE ANALYSIS

1.4 SCOPE OF THE STUDY

The scope of competency mapping study is wide and can be used in the following areas:

✓ Recruitment & Selection

✓ Training & Development
✓ Performance Management
✓ Skill Development
✓ Training Need Identification
Competency mapping identifies an employee’s key competencies, skills, and traits. It is
used to determine the key success factors of different tasks and jobs at the workplace, assess
the present performance of the employees, and provide the appropriate training and
development and compensation. It consists of breaking a given role or job into constituent tasks
or activities and identifying the competencies needed to perform the same successfully. This
means incorporating competencies into job descriptions and performance evaluations,
assigning metrics to measure each competency, or deciding on additional resources or training
needed for specific employees or departments so they can perform better in their roles.

1.5 LIMITATIONS OF THE STUDY

Limitations were experienced while preparing the project is as follows:

✓ The dependent variables: Employee retention
✓ The independent variables: Attitude, skills, behaviour, motives, personal
characteristics, and commitment.

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 ✓ Limited data: The accumulation of primary data was limited because of privacy. It is
finished with yearly reports. It composes secondary data collection
✓ Limited area: It’s also hard to gather the data about the competitors and their financial
data. Since the financial matters are sensitive in nature the same could not acquire
easily.
✓ Due to busy work schedule, detailed discussions were not possible.
✓ Lastly, because of lack of time it is not possible to cover every one of the factors and
details regarding the subject of study.

1.6 CHAPTERISATION

➢ Chapter I Deal with the Introduction of the study, objective, scope, limitation
and research methodology of the study
➢ Chapter II Deals with the Review of literature.
➢ Chapter III Deals with the Company profile and Industry profile.
➢ Chapter IV Deals with the Data analysis and interpretation.
➢ Chapter V Deals with the Finding, suggestion and conclusion.

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