AMITY BUSINESS SCHOOL
SUBJECT : HRM
SECTOR : BANKING
COMPANY CHOSEN : PUNJAB
Ms. PARUL JHAJHARIA
Mohit gupta (31)
MBA(GEN) CLASS OF 2010
1) HUMAN RESOURCE MANAGEMENT
2) STRATEGIC HUMAN RESOURCE MANAGEMENT
3) HR PRACTITIONERS ROLE
4) HERITAGE OF THE COMPANY
5) PROFILE OF THE COMPANY
9) STRATEGY USED BY PANACEA BIOTEC
10) SWOT ANALYSIS OF PANACEA BIOTEC
13) VISITING CARD
Human resource management (HRM) is the strategic and coherent
approach to the management of an organisation's most valued assets
- the people working there who individually and collectively contribute
to the achievement of the objectives of the business. The terms
quot;human resource managementquot; and quot;human resourcesquot; (HR) have
largely replaced the term quot;personnel managementquot; as a description
of the processes involved in managing people in organizations.
Its features include:
But these traditional expressions are becoming less common for the
theoretical discipline. Sometimes even industrial relations and
employee relations are confusingly listed as synonyms,although
these normally refer to the relationship between management and
workers and the behavior of workers in companies.
The theoretical discipline is based primarily on the assumption that
employees are individuals with varying goals and needs, and as such
should not be thought of as basic business resources, such as trucks
and filing cabinets. The field takes a positive view of workers,
assuming that virtually all wish to contribute to the enterprise
productively, and that the main obstacles to their endeavors are lack
of knowledge, insufficient training, and failures of process.
HRM is seen by practitioners in the field as a more innovative view of
workplace management than the traditional approach. Its techniques
force the managers of an enterprise to express their goals with
specificity so that they can be understood and undertaken by the
workforce, and to provide the resources needed for them to
successfully accomplish their assignments. As such, HRM
techniques, when properly practiced, are expressive of the goals and
operating practices of the enterprise overall. HRM is also seen by
many to have a key role in risk reduction within organisations.
Synonyms such as personnel management are often used in a more
restricted sense to describe activities that are necessary in the
recruiting of a workforce, providing its members with payroll and
benefits, and administrating their work-life needs. So if we move to
actual definitions, Torrington and Hall (1987) define personnel
management as being:
“a series of activities which: first enable working people and their
employing organisations to agree about the objectives and nature of
their working relationship and, secondly, ensures that the agreement
is fulfilledquot; (p. 49).
While Miller (1987) suggests that HRM relates to:
quot;.......those decisions and actions which concern the management of
employees at all levels in the business and which are related to the
implementation of strategies directed towards creating and sustaining
STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic human resource management is a complex process which
is constantly evolving and being studied and discussed by academics
and commentators. Strategic Human Resource Management (SHRM)
is an area that continues to evoke a lot of debate as to what it actually
embraces. Definitions range from 'a human resource system that is
tailored to the demands of the business strategy' (Miles and Snow
1984) to 'the pattern of planned human resource activities intended to
enable an organization to achieve its goals' (Wright and McMahan
Strategic human resource management (SHRM) is a concept that
integrates traditional human resource management activities within a
firm's overall strategic planning and implementation. SHRM
integrates human resource considerations with other physical,
financial, and technological resources in the setting of goals and
solving complex organizational problems (Legnick-Hall & Legnick-
Hall, 1988) SHRM also emphasizes the implementation of a set of
policies and practices that will build employee pool of skills,
knowledge, and abilities (Jackon and Schulerm 1995) that are
relevant to organizational goals. Thus a larger variety and more
complete set of solutions for solving organizational problems are
provided and the likelihood that business goals of the organization
will be attained is increased (Mechelin, 1996).
Strategic Human Resource Management (SHRM) is an area that
continues to evoke a lot of debate as to what it actually embraces.
Definitions range from 'a human resource system that is tailored to
the demands of the business strategy' (Miles and Snow 1984) to 'the
pattern of planned human resource activities intended to enable an
organization to achieve its goals' (Wright and McMahan 1992).
Although the difference between these two seems subtle, the
implications of the difference are considerable. Where in the first
definition human resource management is a 'reactive' management
field in which human resource management becomes a tool to
implement strategy, in the latter definition it has a proactive function
in which human resource activities actually create and shape the
business strategy (Sanz-Valle et al. 1999).
Strategic HRM can be regarded as a general approach to the
strategic management of human resources in accordance with the
intentions of the organization on the future direction it wants to take. It
is concerned with longer-term people issues and macro-concerns
about structure, quality, culture, values, commitment and matching
resources to future need. It has been defined as:
APPROACHES OF SHRM
attempts to link Human Resource activities with
competency based performance measures
attempts to link Human Resource activities with business
surpluses or profit
These to approaches indicate two factors in an organizational setting.
The first one is the human factor, their performance and competency
and the later is the business surplus. An approach of people concern
is based on the belief that human resources are uniquely important in
sustained business success. An organization gains competitive
advantage by using its people effectively, drawing on their expertise
and ingenuity to meet clearly defined objectives. Integration of the
business surplus to the human competency and performance
required adequate strategies. Here the role of strategy comes into
picture. The way in which people are managed, motivated and
deployed, and the availability of skills and knowledge will all shape
the business strategy. The strategic orientation of the business then
requires the effective orientation of human resource to competency
and performance excellence.
BENEFITS OF SHRM
1. Identifying and analyzing external opportunities and threats that
may be crucial to the company's success.
2. Provides a clear business strategy and vision for the future.
3. To supply competitive intelligence that may be useful in the
strategic planning process.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent people.
6. To ensure that people development issues are addressed
7. To supply information regarding the company's internal strengths
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10. To ensure business surplus thorough competency.
BARRIERS OF SHRM
Barriers to successful SHRM implementation are complex. The main
reason is a lack of growth strategy or failure to implement one. Other
major barriers are summarized as follows:
1. Inducing the vision and mission of the change effort.
2. High resistance due to lack of cooperation from the bottom line.
3. Interdepartmental conflict.
4. The commitment of the entire senior management team.
5. Plans that integrate internal resource with external requirements.
6. Limited time, money and the resources.
7. The status quo approach of employees.
8. Fear of incompetency of senior level managers to take up strategic
9. Diverse work-force with competitive skill sets.
10. Fear towards victimization in the wake of failures.
11. Improper strategic assignments and leadership conflict over
12. Ramifications for power relations.
13. Vulnerability to legislative changes.
14. Resistance that comes through the legitimate labour institutions.
15. Presence of an active labour union.
16. Rapid structural changes.
17. Economic and market pressures influenced the adoption of
18. More diverse, outward looking approach.
HR PRACTITIONERS ROLE
The HR managers have keen role in the effective planning and
implementation of the policies and decisions that in tune with the
business changes. They should act as strategic partners and be
proactive in their role than mere reactive, passive spectators. The HT
managers should understand how far their decisions contribute to
business surplus incorporating human competency and performance
to the organisation. Strategic HR managers need a change in their
outlook from seeing themselves as relationship managers to strategic
resource managers. Kossek (1987, 1989) argues that major HRM
innovations occur when senior management takes the lead and
adoption of innovative SHRM practices is dependent on the nature of
relationship of the HR Department with the CEO and the line
managers. Legge (1978) commenting on the actions of the personnel
practitioner in the innovation process suggests that adoption of an
innovation by an organization depends largely on HR practitioners'
credibility with information and resource providers. HR Department
and HR managers in these innovative organizations play a strategic
role (Ulrich, 1997) linking the HR strategy with the business strategy
of the organization. A crucial aspect concerning SHRM is the
concepts of fit and flexibility. The degree of fit determines the human
resource system's integration with organization strategy. It is the role
of HR Managers to ensure this fit in between Human Resource
System with the Organization Strategy.
HERITAGE OF THE COMPANY
Established in 1895 at Lahore, undivided India, Punjab National Bank
(PNB) has the distinction of being the first Indian bank to have been
started solely with Indian capital.The bank was nationalised in July
1969 along with 13 other banks. From its modest beginning, the bank
has grown in size and stature to become a front-line banking
institution in India at present.
---A professionally managed bank with a successful track record of
over 110 years.
----Largest branch network in India - 4525 Offices including 432
Extension Counters spread throughout the country
---Strategic business area covers the large Indo-Gangetic belt and
the metropolitan centres
---Strong correspondent banking relationships with more than 217
international banks of the world.
---More than 50 renowned international banks maintain their Rupee
Accounts with PNB.
---Well equipped dealing rooms; 20 different foreign currency
accounts are maintained at major centres all over the globe.
---Rupee drawing arrangements with M/s UAE Exchange Centre,
UAE, M/s Al Fardan Exchange Co. Doha, Qatar,M/s Bahrain
Exchange Co, Kuwait, M/s Bahrain Finance Co, Bahrain,M/s
Thomas Cook Al Rostamani Exchange Co. Dubai,UAE, and M/s
Musandam Exchange, Ruwi, Sultanate of Oman.
PROFILE OF THE COMPANY
With its presence virtually in all the important centres of the country,
Punjab National Bank offers a wide variety of banking services which
include corporate and personal banking, industrial finance,
agricultural finance, financing of trade and international banking.
Among the clients of the Bank are Indian conglomerates, medium
and small industrial units, exporters, non-resident Indians and
multinational companies. The large presence and vast resource base
have helped the Bank to build strong links with trade and industry.
Punjab National Bank is serving over 3.5 crore customers through
4540 Offices including 421 extension counters - largest amongst
Punjab National Bank with 112 year tradition of sound and prudent
banking is one among 300 global companies and seven Indian
companies which are expected to emerge as challengers to World’s
leading blue chip companies. While among top 1000 world banks,
“The Banker”, the leading magazine in London, has placed PNB at
the 248th position, the bank features at 1308th position among
Forbe’s Global 2000 list of global giants and fast growing companies.
At the same time, the bank has been conscious of its social
responsibilities by financing agriculture and allied activities and small
scale industries (SSI). Considering the importance of small scale
industries bank has established 31 specialised branches to finance
exclusively such industries.
Strong correspondent banking relationship which Punjab National
Bank maintains with over 200 leading international banks all over the
world enhances its capabilities to handle transactions world-wide.
Besides, bank has Rupee Drawing Arrangements with 15 exchange
companies in the Gulf and one in Singapore. Bank is a member of the
SWIFT and over 150 branches of the bank are connected through its
computer-based terminal at Mumbai. With its state-of-art dealing
rooms and well-trained dealers, the bank offers efficient forex dealing
operations in India.
The bank has been focussing on expanding its operations outside
India and has identified some of the emerging economies which offer
large business potential. Bank has set up representative offices at
Almaty: Kazakhistan, Shanghai: China and in London. Besides, Bank
has opened a full fledged Branch in Kabul, Afghanistan.
Keeping in tune with changing times and to provide its customers
more efficient and speedy service, the Bank has taken major initiative
in the field of computerization. All the Branches of the Bank have
been computerized. The Bank has also launched aggressively the
concept of quot;Any Time, Any Where Bankingquot; through the introduction
of Centralized Banking Solution (CBS) and over 2409 offices have
already been brought under its ambit.
PNB also offers Internet Banking services in the country for
Corporates as well as individuals. Internet Banking services are
available through all Branches of the Bank networked under CBS.
Providing 24 hours, 365 days banking right from the PC of the user,
Internet Banking offers world class banking facilities like anytime,
anywhere access to account, complete details of transactions, and
statement of account, online information of deposits, loans overdraft
PNB has recently introduced Online Payment Facility for railway
reservation through IRCTC Payment Gateway Project and Online
Utility Bill Payment Services which allows Internet Banking account
holders to pay their telephone, mobile, electricity, insurance and other
bills anytime from anywhere from their desktop.
Another step taken by PNB in meeting the changing aspirations of its
clientele is the launch of its Debit card, which is also an ATM card. It
enables the card holder to buy goods and services at over 99270
merchant establishments across the country. Besides, the card can
be used to withdraw cash at more than 25000 ATMs, where the
'Maestro' logo is displayed, apart from the PNB's over 1094 ATMs
and tie up arrangements with other Banks
Circle Offices (58)
To evolve and position the bank as a world class progressive,cost
effective and customer friendly institution providing comprehensive
financial and related services ,integrating frontiers of technology and
serving various segments of society especially the weaker sections
,committed to excellence in serving the public and also excelling in
To provide excellent professional services and improve its position as
a leader in the field of financial and related services , build and
maintain a team of motivated and committed workforce with high
work ethos , use latest technology aimed at customer satisfaction and
act as an effective catalyst for socio economic development.
IMPACT OF RECESSION ON PUNJAB NATIONAL BANK
According to the HR of PNB the impact of recession on the bank has been minimal
.There has not been any salary cuts , since it is a government run bank.