RESEARCH PROPOSAL ON

A critical study of Talent Management Practices in Private Sector Banks (with special reference to ICICI and HDFC Banks)

Pratibha Goswami

Talent Management in the Banking industry

With the onset of liberalization, banks in India are under pressure to change the ways in which they do business. They now face an increasingly competitive environment not only from banks but also from non-bank financial institutions. The changed environment and the internal compulsions arising from greater competition and the need to improve their market share / profitability gave rise to the quest for greater efficiency and the need to reposition themselves given the realities of the environment and their internal strengths and weaknesses

Talent Management in the Banking industry

In a service-oriented industry such as banking, people are among the most important assets. To stay competitive, a bank must efficiently manage its employees during every phase of employment, from recruitment through training and development. Where an institution is, in its time trajectory, fundamentally dependent not just on the sum total of its individual human capital, but on how effectively it draws out the best from its talent bank at any point of time, through effective placements, performance appraisal, rewards and recognition mechanism. A talent powered bank takes methodological, relentless steps to translate business strategy into talent strategy, define its core competencies, and then buy, develop or outsource the skills needed to embody those competencies

Talent Management in the Banking industry

By delivering standardization and simplicity in work processes and talent management functions, banks can drive towards high performance by realizing direct cost savings traced to results such as decreased turnover, lower learning development and delivery costs, and reduced technology support expenses. In this global environment, talent moves freely and rapidly. To cope up with that challenge, the most successful companies provide with ample opportunity to gain exposure to the new business challenges that keep them engaged and interested in their work. With the industry becoming more dynamic and competitive, altitudes towards effective talent development and management must follow.

Review of Literature
Research work has been carried out in the past on the management of talent at public sector banks. But the research was the outcome of the contractual issues of the outsourcing company and the related banks One such research work i.e. Becoming a Talent Powered Bank : Achieving High Performance through more effective Talent Management Strategies and Capabilities in 2008 by Accenture that based the characteristics of high performance in the financial services industry to produce sustainable improvements in business performance. Another research Indian Banking: Towards Best Global Practices (Insights from industry benchmarking surveys) in 2007 which includes McKinsey & Company in association with Bank of Baroda to highlights what practices must be incurred to bring banking in India to world class levels.

Review of Literature
The various research papers that include talent management at public sector banks are:
HRM issues in Public sector banks Dr. A.K.Sengupta. (September 2008) Indian Bank: Scripting a turn around story Dr.K.C.Chakraborty (April-May 2007).

Above mentioned research papers generally emphasized the need of talent management in public sector banks in general. Not much work has been carried out specially in regard to the private sector banks wherever the discussion is mentioned it is only on the comparison issues between the Public and Private sector banking working style, nothing specifically has been mentioned regarding to the status of talent management in Private sector banks.

Objectives of the present study

The objectives of my study will cater the following interrelated dimensions that create a distinctive workforce capability to drive high performance:(1) To critically examine the talent management practices in private sector banks with special reference to ICICI Bank and HDFC Bank. (2) To study the importance and implications of the talent management practices on the work culture of the banks. (3) To make a comparative study of the strength and weaknesses of talent management practices in ICICI Bank and HDFC Bank and their impact on the performance of the above banks.

scope of the present study

The typical bank faces enormous challenges in improving the effectiveness of its learning function, in measuring the return on its investments in learning and in running learning more like a business. In regard to problem mentioned talent management will help workforce to work more effectively and efficiently to achieve high performance based productivity and also will be helpful in discovering, attracting and sourcing the best and the brightest in the banking industry.

Limitations of the present study

1. 2. 3. 4.

The research will focus on the two leading private banks i.e. ICICI Bank and HDFC Bank. Hence it may not represent the actual scenario of the talent management practices of the entire Private Sector Banks The micro research study shall be carried out in the Madurai region therefore the be represent the practices for the entire sector findings may not

Respondents of the questionnaire might sometime not give correct answers and facts can be hideous under certain rules and regulations of the organization. The research outcome will be based on a sample size and might be approximate.

5.

The research field work will be carried from the period starting from Sept 2011 and hence the outcome might not be equally applicable to future scenarios, wherein the business needs and industry might change.

Major Research Hypothesis

1.

There is a lack of proper Talent management Mechanism in private sector banks in India

2.

The Private sector banks in India are not following the best practices of talent management and as such the performance is adversely affected.

3.

Due to lack of proper talent management mechanism, the private sector banks are finding it difficult to attract and retain good talent with them for a longer duration.

Experimental Methodology of the Research work

1. Statement of the Research problem: This research focuses on What is the role of talent management in maintaining the best and brightest talents in Private sector Banks to strengthen their productivity. The objective is however to bring out the importance of talent management required in Private Sector Banks just to up bring their productivity to withstand to the business environment. 2. Research Design: The research design will be comprised of the following procedural approach that is represented with the schematic representation is in the following slide:-

Design and development of survey instruments Survey design, interview schedule and Questionnaire development Primary Data

Distribution of Questionnaire to the top, middle and bottom level of employees of ICICI and HDFC Bank
Data Compilation

Seconda ry Data

Data analysis

Results and findings

Recommendations and Suggestions

Sampling design:-

Primary data for research study will come from the following resources:

MIDDLE LEVEL MANAGEMENT:REGULATORS:TOP LEVEL MANAGEMENT:Top level managers at concerned Head Quarters of ICICI and HDFC Banks Regional and Zonal Manager of ICICI bank and HDFC bank

RBI
IRDA Finance Ministry of GOI

200 employees, 100 each from ICICI and HDFC Bank to be selected from Madurai District region

Data Collection Strategy

Primary Data Collection: Regulatories:-The concerned authorities of the various regulators viz. RBI, IRDA and Finance Ministry of GOI shall be contacted and relevant required information/ data shall be collected through personal interview and also through schedule/ questionnaire (wherever possible). Employees:-Approximately 200 employees (100 each from ICICI Bank and HDFC Bank) shall be contacted in person as well as through email/ telephone/ and the relevant required information. Regional and Zonal Managers:-The concerned Bank authorities at regional and zonal level for ICICI and HDFC Banks shall be contacted and relevant required information/ data shall be collected through personal interview and also through schedule/ questionnaire (wherever possible). Top Level Management:-The concerned Top Bank authorities at Head Office for ICICI and HDFC Banks shall be contacted and relevant required information/ data shall be collected through personal interview and also through schedule/ questionnaire (wherever possible).

Data Collection Strategy

Secondary Data Collection:The secondary data shall be collected including the following; Various guidelines/ circulars/ regulations/ code of conduct etc. related RBI, IRDA and Finance Ministry of GOI from time to time. Annual reports of the various regulators i.e. RBI, IRDA and Finance Ministry of GOI. The reports of the committees/ panels/ working groups etc appointed by the various regulators i.e. RBI, IRDA and Finance Ministry of GOI from time to time Annual reports of the selected ICICI Bank and HDFC Bank. Various research papers/ articles/ news items published in Journals/ Magazines/ Newspapers.

Leading reference books/ text books on the subject/theme.

Websites of RBI, IRDA, ICICI Bank, HDFC Bank and Finance Ministry of GOI.

Planning of analysis of data

Data collected using primary methods, from the above mentioned resources, will be analysed using various statistical methods like histograms, pie-charts.
Data collected using questionnaire will first be collected into tabular forms.

The data collected shall be analysed using suitable statistical tools.

Histograms, pictorial representation and pie charts etc. will be created.

A trend analysis will also be done for different banks. Similarities and differences will be outcome of the trend analysis. Key issues and problems common to all banks can be concluded using the trend analysis.

Similarly, a trend analysis will also be done for different individuals who are working in different banks at different levels. Primary concern, common to different individuals could be identified, also other inferences be drawn.

Bibliography and References

Bibliography: Berger, Lance, A. Berger, Dorothy, R. 2003. The talent management handbook. Tata Mc Graw Hill. Davis, Tony. 2007. Talent assessment: a new strategy for talent management. Gower Publishing Limited. Lawler, Edward. E. Ulrich, Dave. 2008. Talent: making people your competetitive advantage. John Wiley and sons Goldsmith, Marshall and Carter, Louis. 2010. Best Practices in Talent Management: How the worlds leading corporations manage, develop and retain top talent. Best Practice Institute.

Bibliography and References

References: Barbara Butterfield. Talent Management: Emphasis on action. Cupa.hr Journal Spring/ summer 2008 Vol. 59/ No.1. McKinsey & Company. Banking in India: Towards global best practices. Insights from industry benchmarking survey November 2007.

Websites: wikipedia.org citehr.com www.accenture.com.

www.icicibank.com
www.hdfcbank.com

A critical study of Talent Management Practices in Private Sector Banks (with special reference to ICICI and HDFC Banks)

Pratibha Goswami

Introduction
What is Talent Management: Talent Management is a term that emerged in the 1990s to incorporate developments in Human Resources Management which placed more of an emphasis on the management of human resources or talent. Talent management is the systematic attraction, identification, development, engagement/ retention and deployment of those individuals who are of particular value to an organization, either in view of their high potential for the future or because they are fulfilling business/ operation-critical roles. Talent management refers to the skills of attracting highly skilled workers, of integrating new workers, and developing and retaining current workers to meet current and future business objectives

Importance of Talent Management

Talent management implies recognizing a person's inherent skills, traits, personality and offering him a matching job. Every person has a unique talent that suits a particular job profile and any other position will cause discomfort. In the current climate of change, it's critical to hold onto the key people. These are the people who will lead the organization to future success, and you can't afford to lose them. The cost of replacing a valued employee is enormous. Organizations need to promote diversity and design strategies to retain people, reward high performance and provide opportunities for development

Importance of Talent Management

Talent management (TM) has become an imperative in the face of today's business challenges. Companies are increasingly realizing that successful TM is the key to high performance. By assessing available talent, placing the right people. Challenge of doing more with less in todays business environment has placed increasing demands on the workforce to be multi-skilled, flexible and independent. Without question, effective talent management provides one of the most critical points of strategic leverage today. Research confirms that organizations that excel in developing their people also tend to be high-performance businesses that dominate their markets.

Talent Management in the Banking industry

With the onset of liberalization, banks in India are under pressure to change the ways in which they do business. They now face an increasingly competitive environment not only from banks but also from non-bank financial institutions. The changed environment and the internal compulsions arising from greater competition and the need to improve their market share / profitability gave rise to the quest for greater efficiency and the need to reposition themselves given the realities of the environment and their internal strengths and weaknesses

Talent Management in the Banking industry

In a service-oriented industry such as banking, people are among the most important assets. To stay competitive, a bank must efficiently manage its employees during every phase of employment, from recruitment through training and development. Where an institution is, in its time trajectory, fundamentally dependent not just on the sum total of its individual human capital, but on how effectively it draws out the best from its talent bank at any point of time, through effective placements, performance appraisal, rewards and recognition mechanism. A talent powered bank takes methodological, relentless steps to translate business strategy into talent strategy, define its core competencies, and then buy, develop or outsource the skills needed to embody those competencies

Talent Management in the Banking industry

By delivering standardization and simplicity in work processes and talent management functions, banks can drive towards high performance by realizing direct cost savings traced to results such as decreased turnover, lower learning development and delivery costs, and reduced technology support expenses. In this global environment, talent moves freely and rapidly. To cope up with that challenge, the most successful companies provide with ample opportunity to gain exposure to the new business challenges that keep them engaged and interested in their work. With the industry becoming more dynamic and competitive, altitudes towards effective talent development and management must follow.

Coverage
The proposed research work shall be focused on the critical study of Talent Management Practices in Private Sector Banks (with special reference to ICICI and HDFC Banks).

Review of Literature
Research work has been carried out in the past on the management of talent at public sector banks. But the research was the outcome of the contractual issues of the outsourcing company and the related banks One such research work i.e. Becoming a Talent Powered Bank : Achieving High Performance through more effective Talent Management Strategies and Capabilities in 2008 by Accenture that based the characteristics of high performance in the financial services industry to produce sustainable improvements in business performance. Another research Indian Banking: Towards Best Global Practices (Insights from industry benchmarking surveys) in 2007 which includes McKinsey & Company in association with Bank of Baroda to highlights what practices must be incurred to bring banking in India to world class levels.

Review of Literature
The various research papers that include talent management at public sector banks are:
HRM issues in Public sector banks Dr. A.K.Sengupta. (September 2008) Indian Bank: Scripting a turn around story Dr.K.C.Chakraborty (April-May 2007).

Above mentioned research papers generally emphasized the need of talent management in public sector banks in general. Not much work has been carried out specially in regard to the private sector banks wherever the discussion is mentioned it is only on the comparison issues between the Public and Private sector banking working style, nothing specifically has been mentioned regarding to the status of talent management in Private sector banks.

Objectives of the present study

The objectives of my study will cater the following interrelated dimensions that create a distinctive workforce capability to drive high performance:(1) To critically examine the talent management practices in private sector banks with special reference to ICICI Bank and HDFC Bank. (2) To study the importance and implications of the talent management practices on the work culture of the banks. (3) To make a comparative study of the strength and weaknesses of talent management practices in ICICI Bank and HDFC Bank and their impact on the performance of the above banks.

scope of the present study

The typical bank faces enormous challenges in improving the effectiveness of its learning function, in measuring the return on its investments in learning and in running learning more like a business. In regard to problem mentioned talent management will help workforce to work more effectively and efficiently to achieve high performance based productivity and also will be helpful in discovering, attracting and sourcing the best and the brightest in the banking industry.

Limitations of the present study

1. 2. 3. 4.

The research will focus on the two leading private banks i.e. ICICI Bank and HDFC Bank. Hence it may not represent the actual scenario of the talent management practices of the entire Private Sector Banks The micro research study shall be carried out in the Madurai region therefore the be represent the practices for the entire sector findings may not

Respondents of the questionnaire might sometime not give correct answers and facts can be hideous under certain rules and regulations of the organization. The research outcome will be based on a sample size and might be approximate.

5.

The research field work will be carried from the period starting from Sept 2011 and hence the outcome might not be equally applicable to future scenarios, wherein the business needs and industry might change.

Major Research Hypothesis

1.

There is a lack of proper Talent management Mechanism in private sector banks in India

2.

The Private sector banks in India are not following the best practices of talent management and as such the performance is adversely affected.

3.

Due to lack of proper talent management mechanism, the private sector banks are finding it difficult to attract and retain good talent with them for a longer duration.

Experimental Methodology of the Research work

1. Statement of the Research problem: This research focuses on What is the role of talent management in maintaining the best and brightest talents in Private sector Banks to strengthen their productivity. The objective is however to bring out the importance of talent management required in Private Sector Banks just to up bring their productivity to withstand to the business environment. 2. Research Design: The research design will be comprised of the following procedural approach that is represented with the schematic representation is in the following slide:-

Design and development of survey instruments Survey design, interview schedule and Questionnaire development Primary Data

Distribution of Questionnaire to the top, middle and bottom level of employees of ICICI and HDFC Bank
Data Compilation

Seconda ry Data

Data analysis

Results and findings

Recommendations and Suggestions

Sampling design:-

Primary data for research study will come from the following resources:

MIDDLE LEVEL MANAGEMENT:REGULATORS:TOP LEVEL MANAGEMENT:Top level managers at concerned Head Quarters of ICICI and HDFC Banks Regional and Zonal Manager of ICICI bank and HDFC bank

RBI
IRDA Finance Ministry of GOI

200 employees, 100 each from ICICI and HDFC Bank to be selected from Madurai District region

Data Collection Strategy

Primary Data Collection: Regulatories:-The concerned authorities of the various regulators viz. RBI, IRDA and Finance Ministry of GOI shall be contacted and relevant required information/ data shall be collected through personal interview and also through schedule/ questionnaire (wherever possible). Employees:-Approximately 200 employees (100 each from ICICI Bank and HDFC Bank) shall be contacted in person as well as through email/ telephone/ and the relevant required information. Regional and Zonal Managers:-The concerned Bank authorities at regional and zonal level for ICICI and HDFC Banks shall be contacted and relevant required information/ data shall be collected through personal interview and also through schedule/ questionnaire (wherever possible). Top Level Management:-The concerned Top Bank authorities at Head Office for ICICI and HDFC Banks shall be contacted and relevant required information/ data shall be collected through personal interview and also through schedule/ questionnaire (wherever possible).

Data Collection Strategy

Secondary Data Collection:The secondary data shall be collected including the following; Various guidelines/ circulars/ regulations/ code of conduct etc. related RBI, IRDA and Finance Ministry of GOI from time to time. Annual reports of the various regulators i.e. RBI, IRDA and Finance Ministry of GOI. The reports of the committees/ panels/ working groups etc appointed by the various regulators i.e. RBI, IRDA and Finance Ministry of GOI from time to time Annual reports of the selected ICICI Bank and HDFC Bank. Various research papers/ articles/ news items published in Journals/ Magazines/ Newspapers.

Leading reference books/ text books on the subject/theme.

Websites of RBI, IRDA, ICICI Bank, HDFC Bank and Finance Ministry of GOI.

Planning of analysis of data

Data collected using primary methods, from the above mentioned resources, will be analysed using various statistical methods like histograms, pie-charts.
Data collected using questionnaire will first be collected into tabular forms.

The data collected shall be analysed using suitable statistical tools.

Histograms, pictorial representation and pie charts etc. will be created.

A trend analysis will also be done for different banks. Similarities and differences will be outcome of the trend analysis. Key issues and problems common to all banks can be concluded using the trend analysis.

Similarly, a trend analysis will also be done for different individuals who are working in different banks at different levels. Primary concern, common to different individuals could be identified, also other inferences be drawn.

Bibliography and References

Bibliography: Berger, Lance, A. Berger, Dorothy, R. 2003. The talent management handbook. Tata Mc Graw Hill. Davis, Tony. 2007. Talent assessment: a new strategy for talent management. Gower Publishing Limited. Lawler, Edward. E. Ulrich, Dave. 2008. Talent: making people your competetitive advantage. John Wiley and sons Goldsmith, Marshall and Carter, Louis. 2010. Best Practices in Talent Management: How the worlds leading corporations manage, develop and retain top talent. Best Practice Institute.

Bibliography and References

References: Barbara Butterfield. Talent Management: Emphasis on action. Cupa.hr Journal Spring/ summer 2008 Vol. 59/ No.1. McKinsey & Company. Banking in India: Towards global best practices. Insights from industry benchmarking survey November 2007.

Websites: wikipedia.org citehr.com www.accenture.com.

www.icicibank.com
www.hdfcbank.com