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CHAPTER 1

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

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Introduction to Human Resource Management
Organizations are made up of people and function through people. Material resources such as money and materials are utilized through people for different purposes. People constitute the most significant resource of an organization. Human resource is most active, productive and sensitive. Employees have capacity to think and act or react accordingly. This source needs delicate handling so that it will be useful for the progress and prosperity of an organization. In the present world, all organizational resources (human and material) are important for achieving organizational objectives. Naturally, their effective utilization is necessary. Here, organizations give special attention to human resources which includes manpower working at different levels in the organization. The employees need to be efficient, highly trained and professional co-operative and loyal to the organization. They are expected to make positive contribution in achieving organizational objectives. Such useful labour force will not developed

automatically but needs to be nurtured through special efforts in the form of training, career development, cordial industrial relations, participative management and so on. Human Resource Management (HRM) is concerned with the manpower employed in an organization. It is that part of management which is concerned with people at work and their relationships within the organization. HRM is one important branch of management as it touches all other aspects of business management. HRM is concerned with human resource planning, recruitment and selection of manpower, training and development of manpower, compensation payment to manpower and so on. In this introductory chapter, we propose to discuss the nature and scope of human resource management.

MEANING OF HRM CONCEPT OF HRM I WHAT IS HRM?
Personnel refers to the employees working in an organization at different levels. Personnel management (also called HRM) is that aspect of total business management which deals with human relationships within an organization. Personnel represents· human resources which is different from material resources. It is rightly said that organizations are not mere bricks, mortar, machineries or inventories. They are people. It is the people who staff and manage organisations. Human resources are the people and their characteristics at work. They are human factors in·business.
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This is because of all the resou:rces manpower is the only resource which does not depreciate. This is because they have no capacity to feel or think or react. manpower /people in the organisation act as Source of creativity. This is because he has a capacity to feel. In production activity. Man and machine are not on par and must not be treated in the same manner.. if not the survival of any business depends on the performance of its managers of tomorrow. an organisation. the manpower in an organisation needs human treatment. /I The material resources alone will not help the organisation to achieve its objectives.e. advantages. "the prosperity. supervisory management and at operative management levels. but you must not abuse a worker or put your leg on his head. machines. Employees have a capacity to feel.g competitive. In addition. They can be used as a means for developin. think and even to react. This suggests the importance of human resources. For this. middle management.mce of human resources which need effective utilisation through careful management. Material resources such as land. manpower. This is not the case with human resource i. men and machines are important. This suggests the signific. etc.. This is a challenging job before persOlmel manager / management. Human resource is the most productive and most versatile. equipment. They can produce unlimited ideas which can be used for the progress a. you may use a bad word for a machine or you may put your leg. man behind the machine is more important as he is a human being. According to Peter F. However. Human resources are most vital assets of. In addition. with the passage of time. Human resources of an organisation function at top management. Management has to deal with the employees in a careful and tactful manner. For example. think and even react quickly in the same manner or even in a more challenging manner. Drucker. are easy to manage. The . effective coordination and utilisation of material and human resources are required. The human resource is very important and useful in every organisation. raw materials.'1d prosperity of an organisation. on the machine . It should be nurtured and used for the benefit of the organisation.

desirable working relationship between employers and employees and employers and employees. enabling each to make his own best contribution to its success both as an individual and as a member of a working group ". DEFINITIONS OF HUMAN RESOURCE MANAGEMENT: (1) According to Scott and others. (2) According to National Institute of Personnel Management of India.” 5 . "Human resource management is that branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development of the individual and the group. It is concerned with the people's dimension in organisations. maintenance and separation of human resources to the end that individual. "Human resource management is part of management concerned with people at work and with their relationships within the organization. For this. On the other hand. integration . directing. the organisation will have to face various problems and difficulties. HRM is a management function that helps managers to recruit. satisfied and co-operative. The objective is to attain maximum individual development. organizing. and effective moulding of human resources as contrasted with physical resources ". select. compensation. if the employees are not co-operative but hostile. efficient and satisfied labour force. development. This indicates that human resource is most strategic and critical determinant of growth of a business unit. adequate attention should be given to HRM. controlling of procurement.organisation can make rapid progress only when the employees are efficient. Every organisation needs loyal. train and develop employees for an organisation. organizational and social objectives are achieved. Edwin Flippo defines HRM as “planning. It seeks to bring together men and women who make up an enterprise.

CHAPTER 2 OVERVIEW OF HRM .

HRM has universal existence and application as it is applicable to business and other organisations . both as individuals as well as a group. The aim of HRM is to get better results through their involvement.FEATURES OF HRM: 1) Managing people: HRM relates to managing people at work. 2) People-oriented process: HRM is concerned with employees. It covers all levels of personnels and their needs. and religious and so on. 7 . it is a comprehensive function and is basically concerned with managing people at work. In this sense. expectations and so on. social.government. educational.

7) Future-oriented: HRM is concerned with helping an organisation to achieve its objectives in the future by providing competent and motivated employees. It makes an attempt to integrate individual objectives of employees with the organisational objectives. Such team spirit brings success to the organisation. HRM provides long term benefits to individuals. 8) Challenging function/activity: HRM is a challenging function/ activity as it deals with the .motivation and co-operation. 4) Integral part of organisations: HRM is an integral part of all organisations. 6) Securing employee co-operation: HRM aims at securing willing co-operation of employees for achieving organisational objectives. (employees). Acquisition. 5) Continuous activity: HRM is a continuous activity in an organisation as personnel problems continue to exist as long as employees are working in an organisation. It is a manpower / employees development oriented subject. selection and development of manpower available. development. 3) Develops employees' potentialities: HRM is concerned with helping the employees to learn and develop their potentialities to the highest level for their benefits as well as for the benefits of their organisation. organisations and the society at large. HRM aims at developing and maintaining team spirit at the organizational level. if neglected. They need constant attention as they may disturb normal working of an organisation. This is natural as industrial and other activities can be conducted only with the support ·of human resources. It is concerned with recruitment. It is a people-oriented process of bringing people and organisations together so that the goals of each are met properly. motivation and maintenance of manpower /human resources are four basic functions in the HRM process.

This is recruitment. It also provides opportunities to organisations to grow through the efforts of efficient and devoted manpower. technological and other problems faced by business organisations. It is necessary to handle them and activities related to them tactfully. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements. 2. 3. HRM brings challenges before HR manager from time to time. Employees have emotions and sentiments and cannot be treated like machines. In short. whether the company has excess staff or shortage of staff and to deal with this excess or shortage. Recruitment and selection: Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers.people/employees who are always unpredictable. Human resources planning: Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant. Job analysis design: Another important area of HRM is job analysis. SCOPE/FUNCTIONS OF HRM 1. A number of applications are received after the advertisement 9 . Such problems can be solved with the help of devoted team of employees. HRM is a key element in dealing with the economic.

The employees are informed about the background of the company. performance appraisal is conducted that is the HR department checks the performance of the employee. 5. This is called refresher training. Performance appraisal: Once the employee has put in around 1 year of service. .is published. 7. Compensation planning and remuneration: There are various rules regarding compensation and other benefits. Training and development is one area were the company spends a huge amount. Training and development: Every employee goes under training program which helps him to put up a better performance on the job. Based on these appraisal future promotions. interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM. Training program is also conducted for existing staff that have a lot of experience. It is the job of the HR department to look into remuneration and compensation planning. explain about the organizational culture and values and work ethics and introduce to the other employees. 4. Orientation and induction: Once the employees have been selected an induction or orientation program is conducted. incentives. increments in salary are decided. 6. This is another important area of HRM.

In fact. For this manpower planning is necessary. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. Procurement of manpower (Human. selection. health and safety: Motivation becomes important to sustain the number of employees in the company. Even promotions and transfers_ are covered by this broad personnel funding. 10. Development of manpower: Development of manpower (human resource development) means planning and execution of the training programmes for all categories of 11 .8. welfare. This is also handled by the HR department. recruitment. appointment. It is the job of the HR department to look into the different methods of motivation. placement and induction of employees so as to have a team. Motivation. 11. of efficient and capable employees for the benefits of the organisation. scientific methods are used for recruitment! selection of capable manpower for the Benefit of the organisation . manpower planning is one major function of HR management. Such procurement will be from the employment market. The basic principle in procurement for the right job". The procurement function includes manpower planning and forecasting.-· At present. Industrial relations: Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company. 9.Resource Acquisition): Procurement means acquiring the manpower required by an organisation from time-to-time.

training and development of existing manpower in an organisation. future manpower requirement will be met internally through HRD programmes. Similarly. 12. performance appraisal and performance counselling used for various purposes. Manpower development is possible through training and career development programmes and not simply by offering attractive wages to workers. It aims at educating and training employees for the improvement of overall performance of an organisation. market reputation and so on. Remuneration to employees should be attractive so that the labour force will be satisfied and disputes. One more function of personnel management is to pay compensation (in monetary form) to employees for the services rendered. Promotions and transfers are possible when manpower development programmes are introduced regularly. etc. Such manpower development (possible through' systematic training programmes) is required for meeting the growing and changing needs of manpower along with the expansion and diversification of business activities. Integration of interests of manpower and the organisation: Manpower is interested in wage payment while organisation is interested in higher profits. consumer loyalty. a fair system of remuneration payment (wages and salaries' needs to be introduced.employees in order to develop new skills and qualities required for working at the higher level. HRD programmes are for education. This suggests the importance/significance of human resource development. will be minimized. Performance management and compensation payment to manpower employed: Performance management involves performance planning. For this. Personnel management has to reconcile the interests of the individual . This is for facing new problems and I2hallenges likely to develop in the near future. Fair wage payment acts as a motivating factor in compensation management 13. Executive development programmes are introduced for the benefit of higher level managers.

In addition. (6) To establish and maintain a productive and self respecting -relationship among all the members of an organisation. (5) To improve the service rendered by the enterprise to the society through better employee morale which leads to more efficient individual and group performance. (2) To mould effectively the human resources. functional and personal. organisational. The objectives of human resource management in any industrial organisation can be summarised as under: (1) To attain maximum individual development (self development) of the members of an organisation and also to utilise available human resources (with the organisation) fully and effectively. HRM objectives are four fold. (4) To ensure satisfaction to the workers so that they are freely ready to work. (3) To establish desirable working relationships between employer and employees and between groups of employees.societal.members of the organisation with those of the organisation. 13 . OBJECTIVES OF HRM The primary objective of HRM is to ensure the availability of a competent and willing workforce to an organisation.

to say that the' area of HR management is full of challenges in the new millennium. Modem day challenges before HR managers are more complex due to the process of liberalisation and globalisation. The future has many challenges for the managers of tomorrow. efficient and properly motivated employees. Every manager has to face such challenges of change in relation to his area of operation. The overall industrial situation is fast changing. Labour laws are amended and liberal treatment is offered to industrial units operating in special economic zones (SEZs). elements in the field of human . (9) To maintain high morale and good human relations within the organisation for the benefit of employer and employees. finance and other aspects of business.· In addition. This is applicable to production. MODERN DAY CHALLENGES BEFORE HRM MANAGER: Management itself is a challenging job. In fact. the modem day / current challenges before HR Manager and HRM are identical.(7) To ensure the availability of a competent and willing workforce to the organisation for its progress and prosperity. The same is the case with HR manager who looks after manpower employed in his organisation. It is equally true. (8) To help organisation to achieve its goals by providing well trained. All such changes or rapidly changing scenario are introducing new . marketing. multinationals are expanding their activities in India. New problems and challenges developed from time to time due to changes in the composition of business environment. (10) To secure the integration of all the individuals and groups with the organisation by reconciling individual/group goals with those of an organisation.

(2) Challenges relating industrial relations: HR manager has to face many challenges in the area of industrial relations. As a result. This makes the provision of welfare facilities complicated.demand in the employment market. he faces many challenges. Employees demand additional welfare facilities. How to get most suitable persons and how to make them stable in the organisation is one challenge before the personnel manager.resource management. selection and development of manpower: HR manger is concerned with recruitment. Cordial industrial relations are difficult to maintain due to excessive demands of employees and lack of constructive approach on the part of trade union leadership. job seekers are' many but really capable persons (employable) are few and are in great . He has to provide safety and security at the work place. For example. Industrial disputes developed even due to minor causes and disturb the orderly functioning of the industrial unit. This responsibility also poses problems from time to time. selection. There are financial constraints while spending money on welfare activities. arrangements for manpower development programmes are difficult due to inadequate supply of qualified instructors. Here. the challenges before to-day's HR manager are extremely delicate and difficult. financial constraints and inadequate co-operation of employees in the training programmes. Modem day or current challenges faced by to-day's Human Resource Manager are as explained below: (1) Challenges relating to recruitment. This is one 15 . They also raise complaints regarding inefficient administration of welfare facilities. (3) Challenges relating to provision of welfare facilities: HR manager has to look after the provision of welfare facilities to employees. How to maintain cordial industrial relations over a long period is one important challenge before HR manager. training and development of manpower. Similarly.

He will have to act as an agent.Challenge before a HR manager. This is a new challenge before HR manager. . (4) Challenges relating to manpower management: HR manger has to look after certain functional activities such as promotions and transfers. Here. policies. automation and modernisation of many activities will be necessary. execution of labour legislations and so on. . procedures and practices. It is necessary to introduce fair personnel policies so as to avoid dissatisfaction among the employees. (6) Challenges relating to research on personnel management: HR manager has to undertake research activities in personnel probleJJ1s. For this. Such information may be required urgently and also in the consolidated form. administration of grievance procedure. of change and also sensitive to the hardships of employees. (7) Challenges relating to expansion. How to introduce such information system is one challenge before a present day HR manager. Such research is useful for framing personnel policies for the future period. the personnel manager will have to persuade the employees to identify themselves with the organisation and its goals. This work is also complicated and leads to dissatisfaction among the employees. computer based information system needs to be introduced. How to conduct such research activities within the resources and manpower available in the personnel department is one challenge before HR manager. ready availability when required: HR department has to collect and store lot of information regarding the manpower employed in the organisation. storage and. Charges of partiality and favouritism are made as regards promotions and transfers. This may lead to retrenchment and the problem of surplus manpower in the organisation:.The employees and trade union may protest against such policies and may adopt an attitude of non-co-operati9n. modernisation and automation: Along with the expansion of business. (5) Challenges relating information collection.

Such policies need to be fair and also acceptable to employees in general. new problems. ROLE OF HR MANAGER: 17 . However. Both the activities are important but difficult to introduce due to the negative attitude of employees and their trade union leadership. Employees may not appreciate personnel policies which are actually favourable to them. human behaviour is always uncertain.(8) Challenges relating to collective bargaining and other techniques of labour participation in management: HR manager has to play an important role in the process of collective bargaining and workers' participation in management. disputes and grievances are likely to develop. How to secure co-operation 'of employees and their unions in this regard is one challenge before the present day HR manager. This leads to new labour problems which are difficult to deal with. They may come under the influence of trade union leaders or political leaders and oppose management as regards certain policies and programmes. (10) Challenges relating to trade union activities: The job of HR manager relates to people employed in the organisation. He has to manage them properly for the benefit of the organisation. the challenge before HR manager is how to prepare fair personnel policies and how to secure cooperation~ of employees in their execution. Here. In short. In the absence of their support. (9) Challenges relating to the execution of personnel policies: Execution of various personnel policies is the responsibility of personnel manager. HR manager has to face new challenges in the normal course of his functioning.

as such.) and job related qualities (communicative quality human relations quality. there is no separate department to coordinate the activities relating to personnel manpower employed. Bank employees. technical quality. In most of the small organisations.than other retail operations. analytical qualities. making the role of HR in banking that much more important.) for showing good/promising performance.er. emotional stability. He is usually a top-ranking person at a plant or facility and. and commercial banks often house more valuable inventory -. However. Banks store sensitive. sympathetic and considerate.The HR manager is a generalist who administers and coordinates programmes cutting across functional areas. HR manager needs both managerial qualities (intelligence. The HR manager must be fair and firm. This suggests that his position and role in the organisation is positive and crucial. This is because the HR manager has to oversee the implementation of HR policies at the facility and advice line managers on HR issues. from executives to tellers. is expected to know about all areas of HRM. etc. He needs knowledge of labour laws in order to play his role in an orderly manri. ROLE OF HRM IN BANKING The banking industry is a highly regulated powerhouse that stabilizes the economic environment of nations around the world. . tactful. he is closely connected with all other departments as he is concerned with the HR policies which remain uniform at the organisational level. must have a higher level of integrity and trustworthiness than employees in most other industries. etc. The status of HR department in the total organisational structure depends on whether the unit is small or large.cash -. We have already noted the challenges before HR manager. personal information about their clients. He is on par with other managers.

Banks' HR departments must manage both equitably and strategically to develop the workforce. for example. for the safety of their clients and their organization as a whole. Promotion decisions for salespeople selling loans and other financial products differ from decisions to promote administrative staff. processing and disbursement. but especially one in which competition is so fierce and legal compliance so important. but any job in a bank definitely does. HR policies separate cash receiving. and commissions for sales employees. Bank workforces are unique in that they often have two methods of paying employees: salaries for back-office and other personnel. storage. due to the sheer weight of temptation a position in a bank would place on someone with that kind of history. Banks are highly unlikely to hire candidates with financial fraud on their records. the HR department must handle the legal paperwork and administrative processes required by court proceedings. Human resources professionals in banks must go the extra mile to recruit 19 . In the event that an employee attempts to steal from a bank. and banks constantly navigate a legal minefield that can devastate companies that step out of line. •Bank Security Human resources departments must design and monitor work processes to reduce opportunities for internal theft and collusion. and record all activities via video surveillance. •Executive Recruitment The banking industry is highly competitive.•Applicant Screening Certain jobs do not really require a thorough background check. HR professionals in banks have a hand in making decisions for pay raises and promotions. Human resource departments in banks must go the extra mile to uncover the criminal and financial history of job applicants. •Pay Decisions As with other industries. Finding the right executives is crucial in any industry.

CHAPTER 3 TRAINING AND DEVELOPMENT .the best executive talent in the banking field. allowing their organizations to thrive and grow into the future. Human resources departments in corporations must gain approval of the board of directors before bringing someone in to fill an executive spot.

skilled. In the present world. manpower is treated as an asset only when such manpower ~s educated. skills and capability of people/employees. HRD may be defined as a process of increasing knowledge.TRAINING AND DEVELOPMENT INTRODUCTION: The concept of human resource development (HRD) has acquired special significance in the present. well trained and capable to accept new challenges from time to time. Such HRD is essential at the national level for rapid economic/industrial progress. rapidly changing global economy. A country can make 21 .

° training is the watchword of present dynamic business world. They need well trained. motivated and loyal manpower for stability.steady progress only when its human resources are well trained and well developed. They provide training and self-development facilities/ opportunities to workers. It also facilitates self-development and career development of employees. Training is necessary due to technological changes rapidly taking place in the industrial field. growth and competitive position. marketing and other aspects of business. Training raises their skills and creates confidence and ability to perform the job efficiently. In this chapter. The resources/talents within an employee are in a dormant form which are to be activated through the process of training. selection and -placement. It normally relates to the job assigned and is in the form of guidance/instructions for performing the job safely and efficiently. new methods and new techniques are introduced in the production. employee training (for operative staff) and executive development (for supervisory staff) are two main areas of human resource development. matured. supervisory staff and managers. •CONCEPT OF TRAINING (WHAT IS TRAINING?): Training comes next to recruitment. At the enterprise level. we propose to discuss different aspects of employee training and development. supervisory staff and top level managers. In fad. Its purpose is to raise the competence of an employee. . Training is a must for using new machines and new techniques. In brief. The same rule of HRM is applicable to business enterprises. the main purpose of training is to develop the human resources within the organisation. Business organisations give special attention to the development of human resources. It is necessary and useful in the case of all categories of operative employees. . New machines. It is a process of increasing knowledge' and skills of doing a particular job. Huge money is spent for this purpose which is a type of investment for HRD. Training and development constitute an ongoing process in many organisations and this suggests growing importance of training and development.

Training is normally regarded as a short term process by which nonmanagerial! operative personnel acquire the technical knowledge and skills for efficient conduct of jobs assigned. " 23 . job training. "Training consists of plnn~1ed programs undertaken to i:nprove employee knowledge. It makes organisation capable to face new challenges from time··to-time. attitudes. •DEFINITION OF TRAINING: (1) According to Edwin Flippo. The term development is used in the case of training of managers. administrative skills and conceptual skills and finally positive attitude building. Such management development is a continuous as well as long term process and is useful for creating a team of capable managers for the benefit of an organization. There are different types of training.for manpower development and gives rich dividend to employees and organisation in the long run. skills." (2) According to Wayne Cacio. and social behaviour so that the performance of the organisation improves considerably. It also creates positive attitude towards fellow employees. Training is the responsibility of the management as it is basically for rising the efficiency and productivity of employees. It leads to efficient and skilled behaviour of employees. Such training i. training for promotion. safety training. Industrial training is for a short period but has wide coverage. Expenditure on training and development is an investment . social skills. Training is for developing overall personality of an employee.s necessary for raising overall efficiency of an organization and also for achieving organizational objectives. Training given to managers is regarded as management development. technical skills. information. It relates to knowledge. Training of employees is also essential along with the introduction new production techniques. training is "the act of increasing the knowledge and skill of an employee for doing a particular job. job and the organisation where he is working. refresher training and remedial training. They include: Induction/orientation training.

In addition to training for operative staff. multi-skill training facilities (for developing technical skills. mail. behaviour and performance of managers. In other words. Here.). Management development programme (also called Human Resources Development (HRD) programme) acts as a key factor for the survival and growth of a business unit. It prepares managers to accept higher responsibilities and develops responsible leadership within the organisation. It is designed to improve the effectiveness of managers in their present jobs and to prepare them for higher jobs in the future. . Such development programmes are necessary as every organisation needs a team of highly qualified and trained managers at the higher management levels in order to frame and execute its business plans and policies. Management development consists of all means by which executives learn to improve their performance. The success and growth of an organisation depend on the calibre and performance of managers. Systematic education and training need to be given to them so as to raise their capacity to face adverse situation and new challenges. Management development facilitates replacement of senior managers (on recruitment) by well trained and competent managers available within the organization. managerial skills and conceptual skills) will be offered to trainee officers (engineers. Management development is a . it has to use different training methods for training its executives. For this. For this. supervisory staff and managers working at the higher levels. Such training programmes are called management! Executive development programmes. Development aims at helping the managers to realise their full potential. development are essential in the present highly competitive business world. Continuous efforts for management.•MEANING/CONCEPT OF DEVELOPMENT: Managers/ executives constitute the most valuable assets of an organisation. every organisation.ao-ement development/executive development programmes are n:cessary and useful.particularly large as well as progressive. has to take suitable steps for management development. an organisation has to take steps for training programmes for supervisory staff and ° managers. etc. Various methods/techniques are used under management development for improving the skills.

i"or example. Secondly. Similarly. These methods can be divided into two broad categories. The supenor should adopt a positive approach in the coaching process and help the subordinate in achieving self-development. Coaching method favours learning by doing. He briefs the trainee executive about ~hat IS expected of him and how it can be done. Coaching has certain' limitations.peno~ also checks the performance of his subordinate and gU1d~s hIm to improve his deficiencies. management development is based on the assumption that there always exists a gap between a manager's existing performance and his potential· for the performance. 25 . The superior acts as a friend and guide of his subordinate. namely. a trainee manager cannot develop much beyond the limits of his own superior's abilities. •METHODS OF TRAINING MANAGERS/METHODS OF MANAGEMENT DEVELOPMENT: For management development or for training managers. The su.. It seldom takes place in complete peaceful atmosphere. Its effectiveness depends on the capacity and the interest taken by the superior and also by the subordinate. (i) Internal or on the job methods or In-company programmes and (ii) extremely or off the job methods or out company (A) Internal Training Methods/On-the-Job Methods: (1) Coaching and Counselling: Coaching: On the job' coaching is a method by which a superior teaches job knowledge and skills to a subordinate manager. The untapped potential can be converted into actual performance through management development programmes/ process. several methods I techniques are used. the success of coaching method depends on the interest and initiative taken by the trainee manager. Management development process involves stresses and strains.continuous process as there is no time limit for learning to occur.

(2) Counselling: Under this method, the subordinate wanting advice approaches his superior. Counselling is provided in matters relating to the job. However, on request from the subordinate, counselling may also be offered on matters not directly related to the job. There is two-way dialogue between the subordinate and the superior to find solution to his problem. Counselling provides emotional stability to traineesubordinate. Counselling is possible in classroom methods of training which include lectures, discussions, case study and role playing. , (3) Understudy assignment: An understudy is a trainee manager who is to assume the full duties and responsibilities of the position currently held by his superior, when the later leaves his post due to retirement, transfer or promotion. Here, a departmental manager (head) selects one of his suitable subordinates to become his understudy. As an alternative, the personnel department may make the selection of understudy. The departmental manager will guide him (i.e. understudy) to learn his job and deal with the problems that confront the' manager daily. TI1.e understudy will learn the job of his superior through observation and participation in the decision-making. He may be. given specific problems to study· and to make recommendations for solving them. The understudy will be given wider exposure and an opportunity to develop capacity to deal with difficult problems and complex situations.

•Advantages of understudy assignment: (a) It is a practical method emphasis, learning by doing. (b) It relieves the superior from some of his duties and responsibilities. (c) It avoids serious disadvantages to the organisation if the superior suddenly leaves the job.

•Disadvantages of understudy assignment: (a) The competition for promotion is over when the understudy is designated. (b) This method leads to jealousy and friction within the department. (c) The understudy may not take adequate interest in his self-development because of his prior selection. (4) Job Rotation: (5) Junior Boards: Here, a junior board of junior executives is constituted. Major problems are analysed in the junior board which makes recommendation to the Board of Directors. The young executives learn decision-making skills and the Board Receives the collective wisdom of the junior board. .

•Advantages of Junior Boards: (a) Junior Board facilitates group decision-making. (b) It contributes to the productivity and human relations in the organisation. (c) It identifies executive talent. (d) It is an economical method. • Limitations of Junior Boards: (a) In the junior board, it is not possible to give specific attention to the developmental needs of executives.
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(b) It follows theoretical approach to problem solving. (c) It is not suitable to lower level executives. (6) Delegation: Delegation is one more internal method of management development. The performance of subordinates may not improve unless additional responsibility and authority are delegated to them. Making the subordinates to achieve a particular target through delegation is one way by which subordinates will learn to grow and develop independently. They will develop leadership qualities and decision-making skills, which are necessary for a good manager. (7) Appointment as 'Assistant to': A junior executive may be appointed as I Assistant to' senior executive for the purpose of training and practical experience. Here, the junior executive is given exposure to the job of senior executive and he learns new techniques while providing assistance to his boss. This broadens his viewpoint and makes him ready for future promotions. The superior executive also gets the benefit as he can delegate some of his responsibilities to the assistant and also acts as guide of his assistant. (8) Membership of Committees: Inter-departmental committees are normally created for bringing coordination in the activities of different departments. Managers from different departments are taken on such committees. Junior managers are also given membership of such committees so as to give them a broader exposure to the viewpoints of other departmental heads. Ad hoc committee of executives is also constituted and is assigned a specific problem for study. Such committee assignments offer opportunity of training to jWlior executives, as they have to study the problem in depth and make recommendations. (9) Project Assignment: In the project assignment method, a trainee manager is given a project that is closely related to the work of his

It motivates him for self-improvement. Such assignment provides valuable experience to the trainee and develops problem-solving attitude. (10) Promotions and Transfers: Promotions and transfers are two more internal methods of management development. Transfer also facilitates the broadening of viewpoint required for higher positions. It gives an opportunity to work at different positions and develop. 29 . External Methods of Development/Off. Here.department.The Job Methods: (B) Management (1) Universities and Colleges: The universities and colleges. now. Promotion gives an opportunity to a manager to acquire new skills required for the job at the higher level. The project relates to specific problem faced by the department. which is one essential requirement of an executive. the executive has to study the project on his own and make recommendations for the consideration of the departmental head.

The recommendations from different trainees are compared solutions are worked out. discussions.provide facilities of management education. the trainees are proVided with basket or tray of papers and files related to their functional area. Bombay Management Association. These institutes run special training courses for graduates interested in management education and also orientation programmes for existing managers from public and private sector enterprises. Even seminars. develop awareness of self and impact on others. It concentrates on face-to-face interaction. education is given through lectures. preferably in the form of a report. The discussion is guided by an expert who get opportunity to express their ideas and beliefs. The trainees are put in open environment wherein participants discuss themselves. tests and examinations. Candidates working at managerial levels in companies are normally selected for such training programmes. It is a simple and economical method. (2) Management Institutions: Along with the universities and colleges. Such solutions are put. Colleges affiliated to the Universities also conduct DBM. Here. It is an effective method to. They are expected to carefully study these and make recommendations on the problem situation. The solutions are worked out by the participants may not reflect . Companies can depute their managers for short orientation courses and update the knowledge and information of their managers in specific areas. Productivity Councils and so on. (3) Sensitivity Training: This method is also called T-Group training or laboratory training. there are management training institutions such as NITIE. home assignments. workshops and conferences are arranged for the training of managers by various associations such as chambers of commerce and export promotion councils. (4) In-basket Exercise: In this method. It reduces interdepartmental conflicts. MBA and other management development programmes for the executives from business sector. Mumbai University has its Bajaj Institute of Management for various management development courses.

. a male employee may assume the role of a female supervisor and the female supervisor may assume the role of a male employee. There is nothing like one correct answer to the case study matter. The case presented is always incomplete. (b) more perception in situation and greater respect for the opinions of others. Then. A small group of managers is asked to study the case in the light of theoretical study already completed and is followed by open discussion in the presence of capable instructor. finance and so on. In the role playing. Its objective is to raise the ability of trainee manager while dealing with others. Such role playing results in better understanding among individuals. personnel. (5) Role-Playing: Role-playing has been defined as "method of human interaction. (7) Conferences and Seminars: Deputing officers for conferences and 31 . It helps to promote interpersonal relations and attitude change. A case is a written account giving certain details of the situation is relation to a specific matter. (6) Case Study: Case study method was first developed by Christopher Lang dell and Harvard Law School.real life Situations. who can guide intelligent discussion and analysis. a conflict situation is artificially created and two or more trainees are assigned different roles to play. Such case study may be related to any aspect of management such as production. marketing. which involves realistic behaviour the imaginary situations. both may be given a typical work situation and asked to respond as they expect others to do. Case study method has certain advantages. These are: (a) in-depth thinking about the matter by managers. The participants are supposed to identify the best available solution. This means the solution to the problem is not provided. It is particularly useful for bearing human relations and leadership trainning.. For example.

which closely represents the real situation at the working place.the information provided to him. activities of an organisation may be simulated and . Employees for managerial positions are put in an exercise of actual decision-making. It is a type of classroom method of training.seminars is a method available for management development. Participants are supplied notes or synopsis of lectures to be delivered. in support of those activities. The results of those decisions are reported back to the trainee with an explanation. This provides new ~formation and knowledge to the managers. The quality of this decision is judged by how well the applicant has processed . The game is designed to represent real life situation. Conferences may be directed or guided or may be for consultation and finally for problem-solving. the trainee may be asked to make a decision. (9) Management/Business Games: A variety of computer. and noncomputer management/business games have been devised for training of managers. The processing of information is supposed to be guided by knowledge of the goals and policies of the organisation. The employee is asked to make a decision. Even if mistake is made in the game. the trainee can learn a lot out of his mistake. . For example. such conferences and seminars are limited. Various matters are discussed systematically in such conferences and seminars. A problem is provided to them along with all the necessary information and constraints. This avoids possible mistakes while taking decisions for his company. The participants 111 . an executive/trainee is given practical training by creating situation/environment. This method develops capacity to take rational decisions by managers. This training method is used in management development. In this method. As a result more persons get an opportunity to participate in such Conferences for self-development. Seminars are similar to conferences and are usually for one day or few hours. The trainee learns from this feedback and improves his subsequent simulation. This gives additional information to participants and enables them to use the same in their daily routine. The report illustrates what would have happened if that decision was taken. (8) Simulation:.

Audiovisual aids (film strips. (13) Structured experiences -These exercises allow trainees to learn interpersonal or communication skills. After the behaviour is modeled. and the trainer provides the feedback about accuracy and effectiveness. Adult (thought behaviour). and of promoting rationale and mature behaviour. Secondly. Vid'eotapes are also available on management training. Books and periodicals are published regularly on management. training process/ programme needs to be implemented in an orderly manner. At present. failing which the net result of training will not be positive/ effective. tape recorders. Training process is lengthy and time consuming. It identifies 3 main behaviour:Parent (taught behaviour). The steps involved in the training process/programme are as noted in the 33 . trainees rehearse the behaviour. Video. The structured experience typically focuses on generating certain interactions among the participants. Behaviour modeling is good for developing the interpersonal skills.) are now used for training of managers.It is a technique of demonstrating and practicing a behavioral process. programmes on management problems are arranged on TV network regularly. (11) Transactional analysis .It is a tool for improving human relations and interactions. TV. etc. Child (felt behaviour) (12) Behaviour modeling . It starts with the identification of training needs and ends when training is provided as per the needs and positive results are actually verified through evaluation technique.(10) TV and Video Instructions: TV and Video instructions are used for training and management development programmes. overhead projectors. •PROCESS/PROCEDURE PROGRAMME: Training programme needs to be prepared properly and as per the specific needs of the organisation.

For the identification of training needs.chart given on the next page: (1) Identifying Training Needs: Discovering/identifying the training needs of an organisation is the first step in the systematic training process/programme. failing which training process will be misdirected and positive benefits will not be available. (a) Organisational analysis relates to the determination of the . performance and aptitudes of employees and the required levels of knowledge. The problem areas that can be resolved through training process should also be clearly identified. The training should start only after careful assessment of the training needs. •IDENTIFYING TRAINING EVALUATION NEEDS /FOLLOW-UP AND Training needs can be identified clearly through the following types of analysis: (a) Organisational Analysis. All training activities should be related to the specific needs of the organisation and also of the individual employees. The effectiveness of a training process can be judged only with the help of training needs identified in advance. skills performance and aptitudes should be clearly specified. It should be noted that training is not a cure-all technique. Here. the gap between the existing level of knowledge. (b) Operations Analysis (c) Manpower Analysis. skills. "the trouble spots" are to be noted where training may be needed.

Evaluation of every HR function is necessary fo: raising its effectiveness. training programmes can be designed for hospital staff or employees of airway. It 35 . Simply introducing training is not adequate. This rule is equally applicable to training and manpower development programme. its resources and the allocation of the resources as they relate to the organisational goals. The analysis (detailed study) of the organisational goals establishes the framework within which training needs can be defined more clearly. Evaluation of training and development programme is a must as it provides many benefits to the organisation and also to trainees. Here. like any other HR function. In this sequence. This type of analysis manpower analysis will be necessary. Evaluation of training provides useful information on the basis of which the utility of training and its integration with other functions of HRM can be judged. problem solving or regular. The scope of organisational analysis is wide and includes: (i)Analysis of objectives. (b) Operations analysis focuses attention on the task or job regardless of the employee doing the job. (iii)Organisation climate analysis. The purpose of organisational analysis is to determine where training emphasis should be placed within the organisation. evaluation of training programme will be undertaken. Evaluation enables an organisation to monitor the training programme and modify it or update it in the light of the information available from the evaluation process. the contribution of training irl achieving training objectives will be analysed for the introduction of remedial measures. (ii)Resource utilisation analysis. bank or insurance company. This statement suggests tIle need and importance of evaluation of training programme. This will be followed by selecting the methods suitable for training purpose. Finally.organisation's goals. training objectives need to be decided. The objectives decided may be innovative. if required. should be evaluated to determine its effectiveness". and (iv)Environmental scanning. The methods selected will be used for giving actual training to employers. Thereafter. It is rightly argued that "Training. Every organisation has to develop its own approach and system/procedure for evaluating the effectiveness of its training programme.

It also reduces the volume of spoiled work and wastages of all kinds. Training and Development it will be mere formality. For this evaluation is essential. •ADVANTAGES OF TRAINING AND DEVELOPMENT: (A) Advantages/Benefits to Employer/Management/Company: (1) Improves efficiency: Training raises the efficiency and productivity of workers and managers. training over years. This leads to more production and profit to employer. . Training needs to be effective. (3) Reduces industrial accidents:' Training reduces accidents as trained employees work systematically and avoid mistakes in the work assigned. Such evaluation will give reliable conclusions as regards the effectiveness of training given. This reduces cost of production along with improvement in the quality. (2) Improves quality of production: Training improves the quality of production. This suggests the need and importance of evaluation of employee training. This protects life of workers and the property of the employer. It also improves the performance of workers due to their motivation. IT companies as well as engineering companies like ~ & T provide quality training to their employees. Training is a means and not the end in itself. Such evaluation (relating to effectiveness of training) needs to be systematic and also by experts/well trained officers. Training effectiveness is the degree to which trainees are able to learn and apply the knowledge and skills acquired in the training programme.must be made effective and purposeful. In the absence of such effectiveness. This is possible because of continuous evaluation of.

especially on skills beyond their daily operations". (9) Creates a pool of capable employees: Training creates a pool of trained. 37 . Training makes employees responsible and disciplined. scientific recruitment and selection as well as employee training play a useful role m developing and maintaining cordial industrial relations. Training creates attraction for the job and work environment. Training reduces labour turnover to some extent and facilitates employee retention. (8) Facilitates the introduction of new management techniques: Training facilitates the introduction of new management I techniques and also new production techniques including automation and computer technology.(4) Reduces expenditure on supervision: Training reduces expenditure on supervision as' trained employees take more interest in the work and need limited supervision. (7) Reduces labour absenteeism: Training reduces absenteeism among workers as trained employees find their job interesting and prefer to remain present on all working days. (6) Creates cordial industrial relations: Training moulds attitudes of employees and develops cordial labour management relations. It is rightly observed that "Nothing binds the entire workforce to the company as effectively as opportunities to be trained. resignation. competent and capable personnel from which replacements can be drawn to fill up the loss of key personnel due to retirement. strikes and work stoppages. An employee prefers to remain in the same organisation over years because of promotion and other benefits. etc. (5) Provides stable labour force: Training brings stability to labour force by reducing labour turnover among workers and managerial personnel. This also ensures cordial industrial relations and industrial peace. This avoids frequent disputes. It develops adaptability and co-operative outlook among workers. In fact. Training and development I act as ~ source of competitive advantage.

Employees look after their duties on their own and not due to external force i. managers can motivate their subordinates and get the things done as per the requirements of the organisation. They remain permanently with the employees for use. (B) Advantages/Benefits of Training to Employees: (1) Creates confidence among employees: Training creates a feeling of confidence in the-minds of employees. It also up-dates their information. Training develops a feeling of belonging towards the organisation and the work assigned. supervision. . It actually refreshes the mental outlook of employees: (6) Facilitates self-management: Training develops positive attitude towards work assigned and thereby creates interest and attraction for the job and the work place. (5) Creates adaptability among employees: Training develops adaptability among employees. knowledge and skills and keeps them .fresh. It gives personal safety and security to them at the work place. Trained workers draw more salary than untrained workers. monetary benefits to employees.(10) Provides guidance to newly appointed executives: Training provides guidance to newly appointed executives and assists them to adjust properly with the job and the organisation. (2) Develops skills among employees: Training develops skills . (4) Offers monetary benefits: Training provides attractive remuneration and other. (3) Quick promotion: Training provides opportunity for quick . promotion and self-development to managers. Due to training. which act as a valuable personal assets oJ employees.e.

(10) Creates a pool of trained personnel: Continuous and updated training helps in creating a pool of trained personnel from which replacements can be made to fill the loss of key personnel at any time. (C) Advantages/Benefits of Training in Human Relations: (1) Improves internal communication: Training ensures improved communication between groups and individuals. (5) Improves employee morale: Training improves interpersonal . (3) Provides information to employees: Training provides information on opportunity in employment. It makes organisation a better place to work and enjoy. administrative policies and so on. and understanding among the managers.(7) Develops co-operative outlook: Training creates an attitude of mutual co-operation . 39 . governmental laws. It facilitates career planning of employees and also facilitates self-development. skills. (2) Provides better orientation: Training provides orientation for new employees at those taking new jobs through transfer or promotion. (8) Updates knowledge: Training up-dates the information and skills of employees and makes them capable to face all types of situations. Such attitude of co-operation is useful not only at the work place but also in the social life. (9) Creates positive attitude: Training develops positive attitude towards work and creates attraction for the workplace. (4) Creates healthy work atmosphere: Training provides a good climate for learning and growth.

. (6) Increased Produtivity -. They even motivate employees to work efficiency.Training results in high stability in employees to adjust in short run variations.It builds up a group of employees with high morale. OBJECTIVES OF TRAINING •Improve work performance. The advantages noted above suggest the importance of training and development programmes to organisations. (8) Reduced Accidents . An increase in skill usually results in an increment in both quality and quantity of output. •Provide opportunities for self development and thereby motivate for promotion and other monetary benefits. (9) Increased Organizaltional Stability . (7) Reduced Supervision .Proper training in both job skins and safety attitudes should contribute towards in reduction in accidents. •Provide confidence to do the work properly.The trained employee is one who can perform with limited supervision. •Create a pool of well trained and capable employees at all levels. •Efficiency and productivity. T &D programmes remove performance deficiencies in employees. •Give safety and security to employees.

•Develop co-ordial labour management relations. Teaching. •Develop positive attitude/skill/knowledge and behaviour pattern which ultimately help to achieve the organizational objectives. •Improve quality of production. •NEED FOR TRAINING Training is the act of improving one's knowledge and skill to improve his / her job performance. thereby losing track of real life applcation. If a certain individual has to be trained. This statement imposes certain prerequisites on training.•Avoid industrial accidents and wastage of all kinds. then of course. Training is job-oriented. as opposed to the training. *TRAINING & TEACHING The objective of training is to 'train'. on the other hand. the teacher decides for himself as to what the objective of the learners should be. This brings us to the first objective of a training session. he imposes his objectives on them. Here. "What objective does the group want to set for itself'? "What does the individual / group wants to do to achieve this objective?" This brings us to the method of achieving the objective. It brings the 41 . In the process. •Give confidence to face challenges paused by new development. is different. he has to be trained in what is relevant or required of him and not in what I 'think' his requirement is. expand market.

•To meet challenges posed by the global competition. imparting training to employees working in all organized sectors of human activity is no longer a matter of debate. professional bodies and the government departments. •Increasing qualitative demand for managers and workmen. •Need for both individuals and organisations to grow at rapid pace. •To enable employees to move from one job to another. •The ever widening gap between planning. ability and skills. As a matter of fact. but also in academic institutions. •To harness the human potential and give expression to their creative urges. •Technological change necessitating acquisition of new knowledge.gap between what the employee has and what the job demands. •To bridge the gap between what employees has in terms of . public and private sectors. Several conditions have contributed to make the organisations realize and recognize the need for imparting training to their employees. of late. They are as follows: •Sub-optimal performance of organisations in government. •Increasing uncertainties and complexities in the total environment necessitating flexible and adaptive responses from organisations. the need for training has been recognized as an essential activity not only in the business organisations. For that matter. implementation and completion of projects.

Personal Development: 43 . •Team building: Team building is an organizational development facilitative tactical mode that is intended to make a group effective and achieve utility of purpose. inclusive of far more active and potent intervention than the word training and education implies. 2. •Knowledge: Training is aimed at imparting knowledge to employees provides for facts. job context. •AREAS INFLUENCED BY TRAINING 1.knowledge and skills and what his / her job actually demands.. namely. and indeed. training specialists. •Management by Objectives (MBO): MBO is a way of managing people that emphasis the integration of personal objectives and organizational objectives and is built upon self control. •Internal Consulting : Internal consulting is a facilitating tactical organizational development mode is important for carrying out team building. In general training imparted in knowledge area considers 3 aspects. for installing MBO and for redefining the role of managers. Organizational Development: Organizational development is clearly one of the sterling achievements at the present time in training. information and principles related to his / her job. job content and quality of work.

3. shaping creative potentials.It improves personal performance. promote positive attitudes. development and managing self. acquisition of new skills. . increase awareness of safety measures. •Training programmes for managers that provide the further training and additional skills for people and administration skills for job. Management & Supervisory Development: •Programmes that provide orientation or basic training for new supervisors or managers and teach them the mechanics or basic knowledge and skills. learning and practice of ethical values. updating technical skills and general knowledge. facilitate individual growth and development.

and attitude into use over a period of time in different work situations. Vocational and technical education: Such program are designed to enable quality productions for entry level positions in specific occupational categories and to meet the special skill training needs of designated groups of adults. 5. Communication training in an organization should be training to produce people who can generate useful message-with a thoughtful content expressed in a use full style. education makes one perfect 45 . The various training programmed in communication skills is listed: Writing skills. Communication Training: Effective communication training is skill training when its best done. Experience: It is cannot be taught or imparted in the training room. Interviewing Skills. Multiple skill programmers 6. Reading skills.4.skills. techniques . Reading skills. This category of training aims at the development of individuals and team work 7. Oral communication skills. it is gained by putting knowledge . Social skill: The training in this area is broader in scope embracing many aspects. It gives its participants increased skills in the communication medium they are working. Listening skills.

In terms of output/ results DEVELOP MEASURES OF JOB PROFICIENCY . SETTING TRAINING OBJECTIVE In terms of behavioural changes. Isolate problem areas amenable to resolution through training.o STEPS IN TRAINING PROGRAMMES A systematic & integrated approach to training should consist of various interrelated components as shown below: ORGANISATIONAL ANALYSIS Identification of organizational objectives/ needs/ growth potential & resources. skills & attitudes. TASK/ ROLE ANALYSIS Identification of knowledge. skills and attitudes required MANPOWER ANALYSIS Identification/ definition of target population and performance analysis STATEMENT OF TRAINING NEED Identification of gap between existing and required level of knowledge.

PROCEDURES. RECORDS PLAN AND DESIGN TRAINING PROGRAMMES FOLLOW UP & EVALUATION VALIDATE ENSURE FEEDBACK OF RESULTS REVICE IF NECESSARY METHODS OF TRAINING OBJECTIVE MODEL (Training methods) Large group methods · · · Lectures Some television Video films Small group methods · group discussion · syndicates · T-groups · Active learning Individual methods 47 . PLAN.DEVELOP TRAINING POLICY.

games . .· · · Programmed learning Distance learning in .Workshops Small groups + Individuals .basket exercise thesis Computer based Learning interactive video Large + Small groups .Role plays.Problem solving . practical .Brain storming .Simulation.Project assignment .Tutorials .

CHAPTER 4 CASE STUDY TRAINING AND DEVELOPMENT IN ICICI BANK 49 .

trainee interviews. Irrespective of their status and designation. or written questionnaires. level testing for language courses. Outbound training is provided by the bank when there is a need.. · Training Reports Trainers fill out weekly or monthly reports for each project. which are reviewed by First Class' management. · Setting Targets Here they use the best methods available to establish where improvement is most needed. This stage results in the setting of Course Objectives and the Course Program. *ACTIVITIES UNDERTAKEN · Needs Analysis Here they assess the trainee's real needs in preparatory meetings...CASE STUDY TRAINING PROGRAMMES OF ICICI •INTRODUCTION Training is an important and a very moral part of ICICL Training is given to all the cadre of employees. The company looks for content. time management and skill development. The Course Program is now designed to meet the objectives and needs and the COURSE STARTS. · Project Evaluation · . Course Design The best trainer/s is now selected to handle the running of the project.. which is agreed upon.

Corporate Products Program 5. Feedback exercises are carried out twice on our longer courses. Law in Everyday Banking 6. methodology. The employees are trained through 2 ways i. trainer suitability and whether course objectives have been met. Here all the Functionalaspects are covered. Treasury Products Program 7. including Organization. The Regulatory Environment of Banking 2. The topics covered under this programme are 1. The employee just has to open that site of E Learning and team the topics by reading it out as they are designed as per the learning convenience of the employees. Retail Deposits Programs 4. the bank provide training programmes to employees in 2 methods.The Program Coordinators are frequently in touch with the trainee to ask for their comments. This covers all aspects of the course. General Banking Operations 3. · End of Course Feedback They are very interested in the opinion of both client management and the course participants.e. • E .Learning prouramme The employees are provided with the E Learning programme where the matter of learning is present on the computer. Retail Assets Products Program 51 .

Learning programme which is conducted in the class room.Foundations of People Management. Models for Management 3. Quality and Six Sigma for Beginners 11. Train the Trainer 7. . Team Effectiveness 5.Professional Communication Skills 11. Managerial Effectiveness 8. Audit and Compliance 10.0n Becoming a Manager 12. Negotiation Skills 6. Managing for Performance 4. Banker's Selling Skill Program •C-Learning programme : The employees are provided with the C . Retail Demat Program 14. C .learning means Class room where all the behavioural aspects are covered which requires the attention of the trainer and this training program is impossible to learn of its own by the employee various skills are stressed in this learning program which the employee needs in every stage of Functional aspects.8. Retail Internet Banking 12. The topics covered under this programme are 1. Presentation & Communication Skills 2. Performance Feedback 13. Personal Effectiveness 9. Basis of Life Insurance 9. Interpersonal Effectiveness & Influencing Skills 10.

cleaning boys etc. *METHODS OF TRAINING PROVIDED The training provided to all cadres of employees is depending upon their needs and importance of various tasks and jobs required to them. The leaders of each group or section or department find out the need for training to a particular employee discussing HR head. 2.These employees are generally given training by the internal trainers as company does not rely on the outsider trainers for top level employees. GM's.MD. CGM's. Upper class --. A or 1 s'class employees -. B or 2nd class employees . The functional & Behavioral training is provided to all the employees. Peons. etc. 53 .*TRAINING TO EMPLOYEES Traning is provided to all the cadre of employees as per their needs of the job. C or 3 d class employees . -AGM's.Managers 3. 720 Behavioural skill program & 300 Functional skill ms are provided annually.30 skills are conducted. *WHO GIVES TRAINING ? Training is given by different persons to different levels of employees. 1. are employed on contract basis and therefore no training is provided to them.e. •TRANING PROGRAMMES CONDUCTED IN A YEAR Normally there are 60 training programs of Behavioural skills are conducted and 20 .Officers & Clerks. i.

Generally employees who are under training are sent to Khandala so that they can concentrate on E. The venue is decided by the HR department.This category consists cers & clerks. *WHERE THE TRAINING PROGRAMS ARE CONDUCTED ? The ICICI has special training rooms for conducting training sessions at the office of ICICI. These employees are given training through the supervisors and heads of the departments.Middle class --. It has also a special training centres constructed at Khandala in Maharashtra. Lower class --.Training activity only. and Bangalore and at Chennai for all official and managerial level training *WHO ASSES TRAINING NEED AND VENUE ? The training need is assessed by the collective discussion between the team or p head and the HR manager. Delhi. *DURATION OF TRAINING PROGRAM CONDUCTED The duration/period of training programme differs as per the different class Upper class --.the duration of training is 4 to 5 days Lower class --.They are usually trained by outside and inside trainers.the duration of training is 1 to 3 days *CHANGING OF TRAINING PLANS The training plans are changed annually.the duration of training is of 1 week Middle class --. There is flexibility in changing . they are also given training through top level managers.

Finding the right executives is crucial in any industry. and topics of training are displayed on the intranet. *PREPARING TRAINING LETTER & SCHEDULE The employees are informed about the training program through e-mail. but especially one in which competition is so fierce and legal compliance so important. and banks constantly navigate a legal minefield that can devastate companies that step out of line. The groups are also informed about the training through their heads.training plans but they are changed on annual basis. •EVALUATION F TRAINING PROGRAMME The employees are evaluated through the observation way. timings. venue. The ad. The Employees can give suggestions about changing the training program timing. *EMPLOYEES SUGGESTIONS TRAINING PLANS FOR DESIGNING THE The employees' suggestions are considered while designing the training plans. Suggestions are welcomed 4 days before the training program starts. 55 . The employees are given feedback forms during and after the training session. extra topics added stress to be given on particular topic etc. •Executive Recruitment The banking industry is highly competitive.

allowing their organizations to thrive and grow into the future. Human resources departments in corporations must gain approval of the board of directors before bringing someone in to fill an executive spot Chapter 5 .Human resources professionals in banks must go the extra mile to recruit the best executive talent in the banking field.

HUMAN RESOURCE STRATEGY IN BANKING SECTOR HUMAN RSOURCE STRATEGY IN BANKING SECTOR •Introduction 57 .

. the role of the human resources department is not sidelined or eclipsed by other departments. The human resource department is an essential foundation in building a successful business enterprise. and people are the company’s most important asset. In the view of a business. •The Role of Human Resource in Banking Industry The existence of a human resources department is vital to overall productivity and efficiency of the strong workforce in any thriving company. The bank feeds the information and process in acquiring technology and the employees are highly trained to drive the system. who is going to promote and who is going to hire1. To make the harmony and standardization possible in the banking industry. their job is people. In most professional organizations. employees and technology usually work together. good human resources can be one of the most valued and respected departments in an organization. the human resource fills the missing part of the story. The evolution of technology is one factor to contribute the advancement of every sector of the business.The global improvement already affected different business industry. The intelligence of the human resource staffs involves a compilation of complex data and metrics that follows the performance of individual employees. Their specific job is to make the workforce competent is a vital task. And the essential part is keeping a secret behind the close door meetings of who is going to let go. specifically in the banking industry. In fact. The sensitive nature of human relations and the work of human resource will adequately needed in making the management’s tough decisions. One of the major roles of a Human Resource Department in a successful business involves a lot of observation and analysis from behind the scenes. When it comes to human labor. the involvement of the Human Resource Management is still visible because the productivity of every employee depends on them.

•Recruitment and Selection This is one important factor that enhances their professionalism. the business schools and vocational schools have been able to train more people in business administration. the study will present the following strategy that can help for the further study or if possible. When the banking sector goes to the human resource management to hire new employees. the first thing that a human resource manager will do is to look for the right specification of the worker that the company needed.•Human Resource Strategy in Banking Industry The Human Resource is the only department that can measure the ability of an employee before deploying him into the actual work. This has led to the improvement of these banks’ operation. they set a strategy that concerns in the Human Resource Strategy in Thailand. over time. Therefore. The human resource manager creates their own strategy depending in the nature of the business that needs them. •Training and Development 59 . After determining the specification and requirements. In the works of (1997). the strategy in hiring new and fresh employees are the next in the line. As application on their work. when banks were first set up to provide financial services. Other factors include the fact that there is more competition in the industry and the new generation of managers who are better educated and well-trained in their professions. In the earlier stages. However. are well-trained enough to this kind of job. includes the other human resource staffs. banks used to recruit their employees who may graduate with any field of studies at all. banks can recruit and select group of personnel with required skills. actual implementation in one banking institution1. The strategy of human resource manager is very reliable because he.

have the performance appraisals done twice a year. etc. supervisor evaluation. However. Some may emphasize teamwork. However. Large banks generally have very elaborate systems of performance appraisal. it has been found earlier that banks generally provide formal training programs for employees at the supervisory level and up (1989). Most banks use their performance appraisals for the administrative purpose such as for pay raise and promotion consideration. All banks now prefer to hire their employees with bachelor’s degree. To ensure that the human resource will recuperate their investment in training their personnel. this is not very common. some banks have requested their employees to sign the contract or create some bonding contract that requires the personnel which will receive a certain training to pay back to the bank in terms of time or cash if they would like to quit the organization. Some. other than . For the human resource development program. and business code of ethics. Later on.Most banks provide orientation programs for their new employees. such self-evaluation vs. Large banks whose systems are very well-designed provide feedback to their employees after they have been evaluated. however. many banks lowered their requirement for the qualifications of their employees to those with vocational college diploma in business administration area. they can appeal to their supervisor and to the upper management. This certainly necessitates these banks to focus more on human resource development activities to maintain the bank’s competitiveness. This is for the human resource development purpose for some banks. •Performance Appraisal Most of the banks have an annual performance appraisal. All banks have formal system of employee performance appraisal in that they have forms designed to measure or appraise employees for particular qualities or competencies. these employees are expected to be acculturated into the bank’s system through on-the-job training. If the subordinates do not agree on any points. creativity. with the competition from non-bank institutions in the labour market for the same pool of labour.

or some other scarce skills. such as computer programming. However. However. Thus. or technical skills. Most banks follow the market rate in each market segment. This makes the management feels that they can negotiate and work out the agreement which would satisfy the needs of 61 . Thus. promotion from within practice has created a large internal labor market. in order to be able to attract the job applicants. The unions are not very militant. •Compensation Compensation in the banks nowadays varies. the employees will also be compensated for their special skills. unions are usually organized at the bank tellers and non-supervisory level. a certain level of consideration was given to the management side. once become employees of a bank. However. In general. some cultural elements seem to facilitate their relationship with the management.interpersonal skills or managerial skills. The formation of bank unions is usually through bank employees’ “network”. accounting. Unions are said to be establish because the employees’ relationship with the management has been collaborative. They do not have profit sharing plans and some incentive plans can be observed in the fact that most banks now considered their branches as their selling points and have these operate as profit centers. for the Thai local banks. There have been no strikes. •Labor-management Relations Most banks in our sample have unions. All banks provide bonuses to their employees but generally no other financial gains. The union representatives addressed the manager by their seniority in age and work experience in their interaction with the management. most banks will follow the market rates and will vary their fringe benefits to make their offers more attractive than their counterparts in the banking industry. It can be said that unions in the banking industry are generally weak and their collective bargaining with the employers mainly include wages and fringe benefits. The issue of external equity of pay seems to be an important one at the entry level.

In today’s situation. to improve employee experience and to maximize the value of the company's most important asset.” It is noteworthy though that the re-engineering process of the large banks has somewhat created a sense of job insecurity among some employees particularly those at the lower level. Acquiring a technology that can process the works of the human resource staff can make a difference and can finish the job in less than an hour. But the information system of the human resource department differs in the other field of business industry. and benefits with business objectives and strategies3. to increase HR productivity. •Employee Involvement and Job Security: They do have some employee involvement activities and currently many banks have set up “empowered work groups. And the appropriate process is a good partner in the business industry that includes the human resource department. This could lead to a negotiation of the labor and management in the banking industry.both sides. activities. HR-IT has gained significance since most organizations have been using technology to transform HR.employees by aligning their skills. Recently. A new unionism maybe expected for the next decade if this organizational restructuring process spreads out to other industries which are now faced with inefficiency of operation when entering into the global market. The importance of a technology is being shared in every parts of the organization to promote the accuracy and efficiency. some banks have also brought unions into their participative system of management. . The technology gives a great help in every business industry. •IT in Human Resource: The Human Resource is also updated in the technological change.

•Conclusion: To make a business successful.The process that makes the work of a human resource staff that involves technology is usually covering the business role. the right selection of right person in right department is one factor that can create a great impact. Enterprise Learning Management. The use of technology in terms of payroll will secure that every entry are protected and cannot be manipulated. CHAPTER 6 63 . the processes are set from the beginning of its acquisition that usually compacted in a template and uses security code for protection from the outsiders. These business roles are like Payroll Application. Portal Implementation/Integration and HR Analytics are key components of the solution set. HR Application Outsourcing. The human resource are fully equipped and armed with a psychological knowledge that can interpret any person’s action and gesture. the human resource manager can analyze and judge well the applicant. Still. The Human Resource is the only department that somehow brings the first impression in the attitudes of every applicant. Through many behavioural exams and series of personal evaluation. The reason is to keep the chain between the employees and the higher management intact and to make an inviting communication. Being a human resource manager is sometimes deceiving. Why? Because most of the human resource department has a good ambience and the attitude of the human resource can affect the other’s moods.

TRAINING & DEVELOPMENT AN INTEGRATED HRM CHALLENGE .

de-merge With the opening up of various sectors to the market economy during last 10 years massive technological changes. process simplification. The smaller corporate entity focused at Core business however generally resort to outsource the function to some professional trainer. process simplification. movement of recruitment consultancy and above all relentless poaching by Head hunters the employee inventory of the organization also became extremely volatile. one-time short structured Induction training for different functional areas like Production. availability of Job Portals. HR. Finance etc is one issue – but when it comes to a scheduling a comprehensive programme involving sizeable money.TRAINING & DEVELOPMENT AN INTEGRATED HRM CHALLENGE With the opening up of various sectors to the market economy during last 10 years massive technological changes. However. Marketing. Both management and employees representatives started realizing that only bold and agile term to retain the market share are ?Internal Capacity Building?. are facing the same 65 . changes r. Operation. Both the big and small Industry house whether operating in Public or Private. the company needs to capture customer confidence and the same is only possible if the company continuously maintain a pool of creative talent. The big Industry houses have their HRD department to conduct much structured? Induction Training? for budding Managers as well as fresh Graduates and Diploma holders. In the advent of aggressive job advertisement. acquisitions etc are no more that much talked about eventualities at corporate corner. thus issues like merger. Every now and then a company is buying other.Days are gone when people used to prefer a single employer throughout one’s career. To gain further part of pie. In fact building a succession plan for departmental head became a nightmare and the Industries are fighting hard to retain New Born Baby of the Organization. The practice of a small session on? What to do and what not to do? By the recruiter and placing the trainee under a seasoned campaigner to handle daily routine work on behalf of the person concerned is also prevalent in the Industry. changes in managerial practice and above all delay ring of organization has taken place across the industry. time and effort .

However. Strategically. Also the personnel were placed regularly under development programme to enable them to acquire or to renew their managerial skill. While imparting T&D programme the Companies remain in the corridor of uncertainty unsure about retaining the person within the Co. . •Imparting T&D and shared responsibility Traditionally over the years we have experienced the fresh recruitees were subjected for induction training to acquire desired skill for combating the job situation. no organization can think even to act as nursery for his competitor. At the same time if the organization remain reluctant to acquire new skill through T&D effort. across the industries. the volatile nature of manpower.difficulty irrespective of the sector thus have their own T&D challenges to address. raise the much talked about question of ROI (return on Investment) of those employee friendly initiatives. fold and get result out of the new skills the person acquired out of the programme. the million dollar question is what the organization would do ? will it stop train its people with a presumption that the employee may leave after acquiring new skills or it will take a chance. The basic issue here is not the reluctance of nomination for the high value programme but fear of losing the man due to lack of Organization capabilities to capture the output on return after completion of programme. at a later date it will find acute skill gap which will be hard to replenish. and could only be handled efficiently if not eradicated completely – if the organization have an integrated HRM system having HRD department under its fold. Quite often the company management remains generous to sponsor their men for long term campus programme and also for foreign tour involving considerable money to enable the employee concerned to acquire expertise and competency to meet future objectives of the Company. the HRD department became often skeptical for nominating any person for a course involving considerable time and money on fear of losing the man after being trained. definitely HRD department saved some money for the organization by such decision but then had it played its role for the organization to reach its larger business objectives? This managerial contradiction is there. Thus. Well. So.

The requirements need to be aligned with strategic goals of the organization and need to be assessed at three levels. training may be working at 67 . These finally help the organization to customize training module. If the man is leaving is only leaving out of his value proposition to the competitor of the organization and HRM department should foresee it and get equipped with the retention tool. the potential problem is how to align the business process of the concerned Company with the generalized stereo typed training content of the trainer. The resultant advantage of adopting such system is Assimilation of In-house system as well as the people with the trainer. 1. But the issue of Productivity road for all-round happiness is probably most relevant for the age. However. We have argument and counter argument on happy are productive. Rather than adopting a casual approach of opting for need based vendor select a dedicated Training Provider having experience in the vertical of the Industry and develop a contract on medium term basis say for 2-3 years. • Whether Out-source or In-source It is evident that the smaller Company prefers to outsource the T&D process.There are considerable shift in approach for tackling HR from keep them happy to make them productive. Obviously due to budget constraint HRD department cannot absorb the R&D cost of the trainer to enable them to learn the complete business process and customize the course content to make it fit to organization requirement. To handle this delicate but important issue one of the strategy may be development of a process for vendor selection. These just not only meet traditional training objectives ? rather induce the management to sit down with the trainer to discuss strategic goals & objectives of the organization ? also it specifies the skills and knowledge needed to achieve them. •Macro & Micro level assessment A detail inventory of the available skill sets of the prevailing talents is necessary to analyze the GAP. Organizational level – training needs to be congruent with organizations goals without this consideration.

ie. Applicability: The applicability ratio derived out of feedback of the participants shows how the training is aligned with the business objectives. It is determined by comparing post-test scores with pre-test scores and then measuring the net change. The Success of training thus preferred by assessment of effective and appropriateness of training that is applicable to the organization’s needs in an efficient manner. 2. Assessment done to clarify problem. and ones that require training. initiated by performance problems or change. It is pertinent to decide raising employee skill ratings and putting more employees through a training programme if the organization does not need those skills? 4. Effectiveness: The effectiveness of training is a measurement of learning. Efficiency: The efficiency of training shows how much training was delivered per some unit. •Beyond ROI – the other metrics Training ROI is a hot topic on the speaking circuits at many of the training conferences. the outcome unfortunately remains flawed. other training metrics are better suited to demonstrate training’s impact. Even if one remains determined to prove the effect training alone has on the profitability of the organization. analyze performance and characteristics and competence of trainees. However research findings suggest that not more than 6-10 % of expenditures in training actually result in transfer to the job. Individual level – at individual level further micro assessment need to be made to develop a full proof TNA system. Instead of chasing the elusive and meaningless training ROI. Departmental level – Differentiate between tasks that need to be learned on the job. the number of training hours per year per employee. Also the concept of measuring any single department for its ROI is offensive to the team concept of an organization. An excellent training turns wasted if not imparted at right . Appropriateness: The appropriateness ratio derived out of feedback of the participants ensures that the right learning objects are delivered to the right people. 1. determine if training is the solution. 3. ie.cross-purposes to the organization. 2. 3.

potentially infecting others and bringing down the potential of an entire office. Developing Employee Potential: Helping existing employees grow in their abilities benefits a company’s ability to perform. In times of economic downfall. Thus to maintain competitiveness the organization must appreciate the related expenses as investment and continue design professional development programs so that it can build competency of the employee in developing the leadership skills and styles required to deal with job situations under dynamic market situation.as their knowledge and experience base grows. Without fostering employee growth. employees may not meet goals in a timely manner and cause office-wide progress to slow. forget about profitability. Employees will also be unprepared for upward movement in the company. companies need to get the most out of their employees in order to maintain market superiority and continued profit. setting clear goals and maintain timely reviews to create clear communication of what is 69 . The low performing individuals can spread negativity regarding the organization.end and level. from ensuring the stability of the high performing individuals who drive the company to coaxing success from untapped potential employees and underachievers alike. HR can encourage growth by pairing employees with a mentor in their target position or moving out of their comfort zone . a company can become stagnate and lose the ability to separate itself from competitive companies. HR should attempt to build an understanding of the employees. The human resources (HR) department faces many challenges in a workforce’s training and development. the company grows as well. which can lead to higher than necessary terminations and new hire training costs. Without proper performance management. which can lead to failing at promotions or disenfranchisement over the lack of career advancement. Managing Performance: Managing the workforce is more than encouraging high performers. Rather than filling pressure out of employee attrition better the management concentrate on introspection on the inherent causes and develop retention strategy otherwise incapability may led to complete collapse of the system and organization.

Work Ethics: Work ethics is one of the Challenges facing Human Resource Training and Development. At other causes employees still believe that if a person from their community becomes a CEO somewhere it is their time to get rich and be employed and therefore don’t concentrate on their work. Engaging People: Disengaged employees represent a distinct challenge to workforce productivity which can be costly for any company. organization must have budgeted funds for accommodation. travelling and this needs money and the organization may not have the funds to facilitate this. People are still influenced on their backgrounds and the employees don’t judge people by their expertise and skills but their tribal background. respected and engaged in furthering their own personal goals as well as the company’s goals. which. Limited Training Resources: Limited training resources are one of the Challenges facing Human Resource Training and Development. such as sales. for whatever reason. engaged employees are more likely to have a personal stake in the company’s progress. in turn. . allowing high potential employees to perform under their potential constitutes a monetary loss. especially the high potentials who. or a better bottom line. Identifying High Potential: High potential employees are those who demonstrate an ability to contribute at a greater level. sales. is vital to HR’s success in getting the best contributions from the workforce. In a company whose product base involves employee performance. consisting tangible results that exceed expectations and ensuring the completion of team goals to identify high potential employees. are not high performing employees.required. Keeping employees engaged in their jobs means keeping them comfortable in their positions. Identifying these individuals. Happy. can lead to higher production. Managers should use assessment tools including maintaining a high level of competence. When training.

There are very few publications in Human Resource Management. Human Resource managers are not appreciated in companies and their role is not clearly defined in the business. Thus the Challenges facing Human Resource Training and Development 71 . When the economy becomes bad the companies are supposed to reduce the employees in the organization which affects the management. Conclusion Human Resource Managers should focus on these challenges and make them their strengths in order to gain a competitive advantage over their competitor companies.Recognition of Human Resource Management: One of the Challenges facing Human Resource Training and Development is recognition of human resource management towards contribution to business access and achievement of organization objectives. Retrenchment and Downsizing: Another of the Challenges facing Human Resource Training and Development is retrenchment and downsizing. Trade unions can be very ruthless when it comes to negotiation and they include the employees to strike. Limited Research Work in Human Resource Management: Limited research work in Human Resource Management is one of the Challenges facing Human Resource Training and Development. Trade Unions: Trade unions are one of the Challenges facing Human Resource Training and Development. This affects the Human Resource practice because the Human Resource managers are supposed to provide good working and conducive environment for workers.

Who gives training and where the training programs are conducted? 4. What is the duration of the programs conducted? .QUESTIONAIRE 1. What are the methods of training provided to the employees? 3. Who assesses the training needs and venue? 5. What are the activities undertaken under training and development in your bank? 2.

6. Are there employees’ suggestions for designing the training programs? CONCLUSION After studying about HRM in detail. While studying about Training and Development. 73 . it can be seen that there are many challenges in HRM which have to be faced. but there are many ways to overcome these challenges.