HUMAN RESOURCES DEVELOPMENT ICICI

The achievement of an organization is the result of the combined efforts of each

and 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 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.
A new organizational structure effective April 1, 1999 was implemented
successfully with the ‘change agent’ role played by the HR Department. 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 individual’s 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 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). The first grant of stock options under the Scheme
was made during the year.
The total number of staff of the Bank increased from 891 as on March 31, 1999 to
1,344 as on March 31, 2000. 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.
HUMAN RESOURCES DEVELOPMENT SBI

State Bank of India is the nation's largest and oldest bank. Tracing its roots back
some 200 years to the British East India Company (and initially established as the
Bank of Calcutta in 1806), the bank operates more than 15,000 branches within
India, where it also owns majority stakes in six associate banks. State Bank of
India (SBI) has more than 80 offices in nearly 35 other countries, including
multiple locations in the US, Canada, and Nigeria. The bank has other units
devoted to capital markets, fund management, factoring and commercial services,
credit cards, and brokerage services. The Reserve Bank of India owns about 60%
of State Bank of India

Human Resources Development Department

HRDD Vision

The Vision of the Human Resources Development Department (HRDD) is

essentially to facilitate the Bank to carry out central banking activities, i.e.

(i) To create an enabling environment to enhance the efficiency of the organization

(ii) To draw out from our staff the very best by a system of proper placements,
incentives, &
(iii) To create an atmosphere of trust, a certain security of expectations and a
feeling that the organization cares about the well being and personal aspirations of
the staff. This would help align personal aspirations with professional goals and
help enhance efficiency

HRDD Mission

The Mission of HRDD is to create a facilitating environment to enhance the

efficiency of the Bank; to empower the staff so as to draw out the latent potential;
and to catalyze conditions for a more wholesome quality of life on the work as well
as personal front.

Functions of HRDD

a) To evolve HR policies on
  Recruitment: For the decade as a whole, for the SBI group, 25.4% of the
staff were officers, 51.0% were clerks, and 23.6% were subordinate staff.
The composition of staff was the same for the nationalized banks with
27.9% of staff being officers, 50.7% being clerks, and 21.4% being
subordinate staff.
 Performance and Potential Appraisal : The promotion to a higher
management level is best thought of through the lens of a tournament model
(Lazear and Rosen, 1981) where the prize in terms of compensation for a
position in the hierarchy is fixed in advance and is independent of absolute
performance. In effect, an employee is promoted to the next higher
level/grade not because he is good, but because he is better than everybody
else at the current level/grade.

 Placement :
 Promotion and Career Progression :
 Out of Turn Promotion/ Increment to Sports Person
 Industrial Relations
 Deputation / Secondment

 Retirement and Voluntary Vacation

 Motivation
 Training Establishments
 Mobility (Transfer/Rotation)
 Remuneration and Reward Mechanism
 Staff Welfare
 Communication
 Organisational Development
 Training and Skills Upgradation (Policy and Implementation, both)
 Medical

b) Other than policy aspects

 Interface with other institutions, government, central banks, etc. on HRD

issues
 To maintain up to date database on human resources in the Bank and
undertake analytical studies and ongoing research on different manpower
related issues
  To make ongoing review of the appraisal system in order to make it an
effective tool for HRD policy management
 To install and implement an effective counseling system
 To design career and succession plans
 To review and revitalize the training functions
 Summer Placement
 Formulate and administer the Staff Suggestion Scheme
 Publication of House Journal, Without Reserve

Comparative Analysis
ICICI is private global bank its HR practices are totally different SBI no.1 public
sector bank of India. Package given by ICICI is more enough than salaries
provided by SBI. Incentives and benefit policies of ICICI and SBI is totally
different. Selection process of ICICI is very lengthy and cost consuming. Selection
process of SBI is two levels – 1). PO level and, 2). Administrative Officers. The
training and development policies of ICICI is much better than SBI. There is not
much emphasis on training and development at SBI.

RECOMMENDATIONS
Recommendations for ICICI: -

1. Simplify its recruitment and selection process.

2. Reduce salaries of employee and increase the incentives and benefits part in
their compensation.

Recommendations for SBI: -

1. Competition in banking sector increases due to private banks. Private sector

banks giving higher salaries to attract the talent. Thus it is necessary for SBI
to increase its salaries.
2. Give more emphasis on training and development of employees.
3. Increase motivation by giving extra benefits.
REFFERENCES
http://www.scribd.com/doc/27812177/Hr-Recruitment-Practices-of-State-Bank-Of

http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization
%20Behavior/HROB007.htm

http://www.citehr.com/research.php?q=HR-practices-at-state-bank-of-india

http://www.hindu.com/edu/2007/02/05/stories/2007020500410400.htm

http://www.citehr.com/87855-icici-human-resource-practices.html

http://www.citehr.com/research.php?q=hr-practices-of-icici-bank

http://www.icicibank.com/aboutus/pdf/a_r2k2(45-68).pdf

http://www.m2iconsulting.com/Documents/HR%20Issues.pdf

http://www.managementparadise.com/forums/human-resources-management/9415-icici-hr-project-
help.html