This document summarizes an assignment on HR practices in banks submitted by Prakhar Agarwal and Arpit Katiyar. It begins with an acknowledgement section thanking those who helped with the assignment. The introduction defines human resource development and its importance in organizations. The document then discusses key HR roles in banks, why HR management is important for banks, challenges faced by banks, and how to manage human resources. It outlines several HR practices in banks such as job analysis, recruitment and selection, training and development, and performance appraisal. The document concludes with suggestions for improving small business services and the importance of linking HR functions to corporate goals.
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502 Activity 1.pptx
1. Assignment Of Banking Law
On
HR Practices In Bank
Submitted To
Dr. Ram Sir
Submitted By
Prakhar Agarwal Arpit Katiyar
Bban1mg20016 Bban1mg20004
2. Acknowledgement
We would like to convey our gratitude to everyone who has assisted us in finishing our assignment successfully.
we want to express our gratitude to our teacher, Mr. Ram sir , for providing us with the inspiration and amazing support
we needed to finish the project.
Finally, we want to thank everyone who has helped us along the way, including our friends, parents, and seniors, whose
support has made this effort possible.
3. Introduction
To bring out the best in a man is the essence of human resource development. Simply speaking, Human Resource
Development (HRD) is the process of increasing the capacity of human resources through the development.
Human Resource Development is something that everyone does. Individuals do it as they work to develop
themselves; managers do it as they work to support others’ development and the Human Resource Development
staff does it, as they create the overall development tools for an organization. Thus, it is a process of adding value
to individuals, teams and the organization as a human system.
In a larger context, Human Resource Development refers to empowering people and enabling them to use their
power for development of the organization to which they belong, and society at large. It refers to developing
proactivity and capacity to embrace larger issues. Considering the vital importance of human resources, they are
now being treated as assets which are most precious for the survival of an organization. New values are being
added. There has been a shift from traditional master slave relationship to the modern trusteeship system (in
which employers and employees are considered as partners investing their wealth and labor respectively) and
from traditional salary administration to the new Human Resource System (HRS). With human resources being a
part of an organization, HRS is a subsystem of larger system i.e., an organization and Human Resource
Development is the center of HRS and most vital for the organizational advancement. Human Resource
Development includes both the development of the people and development of an organization
4. ROLE OF HR IN BANKING
1. Applicant Screening
2. Development
3. Bank Security
4. Pay Decisions
5. Executive Recruitment
6. Communication
7. Systems/ Processes
8. Staff Meetings
9. Brain Storming Sessions
10.Study Circle
11.Quality Circle
5. Why Human Resource Management is Important for Banks
Human Resource Management is important for banks because banking is a service industry. Management of
people and management of risk are two key challenges facing banks. How you manage the people and how you
manage the risks determines your success in the banking business. Efficient risk management may not be
possible without efficient and skilled manpower. Banking has been and will always be a ‘People Business’.
Though pricing is important, there may be other valid reasons why people select and stay with a particular bank.
Banks must try to distinguish themselves by creating their own niches or images, especially in transparent
situations with a high level of competitiveness. In coming times, the very survival of the banks would depend on
customer satisfaction. Those who do not meet the customer expectations will find survival difficult. Banks must
articulate and emphasis the core values to attract and retain certain customer segments. Values such as ‘sound’,
‘reliable’, ‘innovative’, ‘international’, ‘close’, ‘socially responsible’, ‘Indian’, etc. need to be emphasized through
concrete actions on the ground and it would be the bank’s human resource
6. CHALLENGES FACED BY THE BANKS
1.The real challenge of this sector is the "Indian companies", how to transform into global
corporations without losing the positive values and culture that they have developed.
2.As most part of the jobs in this industry is monotonous/repetitive and routine, the HRD
Department has to empower, engage and energies employees to create effectiveness &
efficiency through motivation organizational structures, systems & procedures are
of these, and there is a need to focus greater attention on these aspects by the industry.
3.However, the emergence of a core and peripheral workforce in many organization has
presented new challenges for HR managers public & private sector organizations are fast
becoming diverse communities for core workers, flexibly employed casual and part-time
workers, consultants, contractors & business partners.
4.Certain rigidities have also developed in HRD within this banking system itself because
industry is largely in the public sector.
8. HR Practices In Bank
Human resources management practices play a very critical 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. 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. Presently organizations are competing through implementing the unique HRM
practices and due to the globalization organizations adopt the most up-to-date HRM practices in order to
achieve the organizational goals. Best HRM practices are valuable for both employee and employer; it plays an
important role in supportive growth and competency 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 HRM practices, which were followed by any public sector bank .
9. (A) 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. All the Banking authorities reported
that they follow a combination of several methods for job analysis of the employee.
(B) Recruitment and selection:
Public Sector Banks follows systematic procedure in recruitment and selection activities. For Recruitment and Selection these
banks follows 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.
(c) Training and Development:HRD as one of the major functional area in HRM. Continuing education and training
programmers' 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 programmers' based on the
employees need. Those needs are identified by need assessment activities
10. (D) 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 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.
(E) 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 upgradation 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. Indian public sector Banking System
11. Suggestions
1.Establish partnerships with local CPAs so that they're more likely to recommend your bank when working with
clients to create small business plans
2. Staff branch locations with onsite small business banking specialists who can work directly with customers to.
3. Develop a cash management program that helps small businesses maintain a cash flow budget track current
and projected revenue, manage cash disbursements, and more
4. Expand your product portfolio with risk management and human capital management products and services,
such as non-underwritten insurance products
5. Improve the overall customer experience by training frontline staff to better handle small business
transactions
12. CONCLUSION
HR functions to be linked to corporate goals. Shift from Industrial relations manager to Business manager
or Commercial manager.
Team work is another important and essential soft skill that is necessary in this industry.
The HR Professionals have to introduce &improve the adaptability of their structure that will be able to
absorb, draw and retain the best.
As people are primary asset, it is essential not only to invest in them, but also to ensure that the
supporting elements for this asset are such that it can provide the maximum value on a sustainable basis.
HRD is to be regularly reviewed against business outcomes as part of strategic and operational planning.
To overcome the public sector's hierarchical structure, which gives preference to seniority over
performance, is not the best environment to attract the best talent from among the young.
