Innovative Human Resource Practices in Indian Banks: A Study from HR Manager’...
Mhr group 2 seca
1. MHR ASSIGNMENT
HUMAN RESOURCE
MANAGEMENT IN
BANKING SECTOR
Date -23-11-2012 Submitted by –
Group-2
Arpit Pal Singh(9)
Submitted to :-Dr. NilanjanSengupta
AnshulPandey(7)
Bharat Sharma (11)
Puja Jha(62)
PareshDabir(17)
VidushiSharma(97)
2. ACKNOWLEDGEMENT
In many ways it is, more difficult to acknowledge one's debt. But I express my deep sense of
gratitude to each and every one whose support and cooperation help me to complete this project
report successfully, and without which the completion of the project would never have been
easier.
I firmly thanks to Dr. Gopaliyengar from the bottom of my heart to give me this opportunity to
work on this project.
The largest debt must go to our honourable and beloved Dr. NilanjanSenguptaWho helped me
in each and every aspect of this project, and gave me moral support and encouragement during
this project. Without his commitment, guidance and encouragement the project would never had
been completed.
With sincere thanks
Group -2
3. INTRODUCTION
The first bank in India , though Conservative , was established in 1786. From 1786 till today the
journey of Indian Banking System can be segregated into three distinct phases. They are as
follows –
Early phase from 1786 to 1969 of Indian Banks.
Nationalization of Indian banks and upto 1991 prior to Indian banking sector reforms.
New phase of Indian banking System with an advent of Indian financial and banking
sector reforms after 1991.
Role of banks
Capital formation
Innovations
Monetization
Finance for priorty sectors.
Cheap money policy
Need for sound banking system
Provision for medium and long term finance
Literature review
Human resource management (HRM) is considered a critical organizational resource that Helps
an organization sustain its effectiveness. It is one important area that influences a number of
employees' attitudes and behavior such as intent to leave, levels of job satisfaction, and
organizational commitment (Lee & Heard, 2000). Pfeffer (1998) suggested that soft or high
commitment human resource management practices are those that generate trust in employees
and these practices include giving employees empowerment and involvement in decision
making; designing training for skills and personal development of employees; selective hiring;
team-working where idea are pooled and creative solutions are encouraged; rewards system that
commensurate with effort; According to Macky&Boxall (2007), the scientific literature
assumes a causal link flowing from HRM practices to organizational performance via the
responses of employees. In this new era, people are the primary source for a company‟s
competitive advantage and organizational prosperity and survival depends on how employees
are treated. The „human‟ aspect of HRM is concerned with the relationship between employer
4. and employee and it associated with the human relations movement and the concept of high
commitment work practices developed by (Walton, 1985).
The best Human Resource practices areas are recruitment and selection, socialization, job
design, training, communication/participation, career development, performance management,
employee reward and job security (Huselid, 1995). It is plausible that when employees judge
the organization to be fair and supportive in their treatment particularly with regards to the
availability and frequency of promotional opportunities, adequacy of pay and good supervision
and positive feelings of well being will be created. Hence HRM is an integral part of banking
sector.
ILLUSTRATIONS
State bank of India
SBI is India‟s largest bank . Its regional office is in Mumbai. Government of India is the largest
Shareholder. As of march 2012, it had assests of US$360billion and 14,119 branches , including
173 foreign offices in 37 countries. Including the branches that belong to its associate banks ,
SBI has 21,500 branches.
Its associate banks, together 7 constitute State Bank Group. Subsidiaries of SBI till date:-
State bank of Indore
State bank of Bikaner & Jaipur
State bank of Hyderabad
State bank of Mysore
State bank of Patiala
State bank of Travancore
State bank of Saurashtra
Amalgamation of Bank of Bombay(15/04/1840), Bank of Madras(01/07/1843) and Bank of
Bengal(02/01/1809) leads to the formation of Imperial bank of India on 27 January 1921.
HUMAN RESOURCE MANAGEMENT
It is the management of organization‟s workforce. It is responsible for attraction , selection ,
training, assessment and rewarding of employees taken into consideration organization‟s
leadership and culture.
Recruitment:-
It is the process of attracting, screening and selecting a qualified person for a job.
5. Recruitment steps in SBI are as follows:-
i) Vacancies identified:- vacancies may arise due to promotion, retirement, VRS
or new openings.
ii) Job description and person specification designed:- it consists of Position ID,
Job title,Will report to, Eligibility(required qualification, required experience),
Location of work, Key responsibility of the role.
iii) Available vacancies are advertised.
iv) Selection test conducted as per scheduled date.
v) Short listed candidates are called for final interview.
vi) The successful candidates are being informed through a written offer.
vii) The new joiners further attend in-house training.
Recruitment process is centralized one. SBI basically uses external recruitment in selecting
clerical cadre, probationary officers, marketing and recovery officers, management executives.
Selection Procedure:-
It is made on the basis of performance in written test and interview. The test consists of
objective type questions:-
i) General Awareness
ii) General English
iii) Quantitative Aptitude
iv) Reasoning Ability
v) Marketing Aptitude/Computer Knowledge
Way to apply:-
Candidate required to go to SBI branch and pay amount of fees and get receipt from branch. The
candidate are required to apply online through website www.statebankofindia.com.
Application fee, reservation of seats,age concession varies according to caste factor.
Placement and Induction:-
Placement is the process of assigning a specific job to each of the selected candidates. It
involves assigning a specific rank and responsibility to an individual. It implies matching
the requirements of a job with the qualifications of the candidate. SBI follows this policy
in order to improve employee morale,reduciny employee turnover, reducing
absenteeism,reducing accident rates, avoid misfit between employee and the job.
Once an employee is selected and placed on an appropriate job , the process of
familiarizing him with the job and the organization is known as induction. SBI follows
ths policy in order to help new comer overcome shyness, familiarize him with the
location and rest period,avoiding confusion and help new comer to get sence of
belongliness.
Training and development:-
6. Training is conducted based on the need of an employee rather than making it mandatory
for a certain cadre of staffs all together.
The State Bank Academy (SBA), formerly known as State bank staff college was set up
at Gurgaon on 18/11/1982. It is a centre for training middle and senior management
officials of the State bank group and other organizations in India and abroad.
SBA has designed and launched an institution –wise e-learning programmes to be used
by managers at various branches of bank.
On implementation of mySAP ERP help state bank group in areas of human capital
management and enterprise resource planning such as e-learning, virtual classrooms,
career development, successing planning, competency assessment, performance
management and property management.
Performance appraisal:-
SBI associate banks follow suit after detailed experience of SBI are available.
Infact,about 5 years ago a common task force of HRD managers of associate banks was
appointed to evolve a common system of appraisal for the associate banks. The task force
evolved a system similar to that being experimented by SBI.
Once the SBI experiences are available it might become easier for various associate
banks to revise and adopt the new system. Till such time these may continue to follow the
traditional annual confidential report form of appraisals, officers are assessed on the
following characteristics:-
i) General intelligence
ii) Job knowledge
iii) Initiative and resourcefulness
iv) Supervision
v) Business capacity
vi) Ability to assess sound business propositions
vii) Dependability
viii) Relationship with junior and senior colleagues
ix) Relationships with public
x) Sociability
Job evaluation:-
It is the systematic way of determining the worth of job in relation to other job in an
organization.
SBI adopts this policy in job evaluation which are relative, basic information are obtained
from job analysis, job evaluation are carried by groups. Job evaluation process is as
follows:-
i) Gaining acceptance
ii) Creating job evaluation committee
iii) Finding the jobs to be evaluated
iv) Analysing and preparing job description
v) Selecting the method of evaluation
vi) Classifying jobs according to skill requirements, experience needed, types of job
responsibilities, amount of stress.
7. Promotion:-
Promotion policy is more or less similar in all banks due to its size and large number of
openings in all grades promotions are faster in SBI.
The promotional channel is as under:-
i) Probationary Officer (Assistant Manager, JMGS I)
ii) Deputy Manager (MMGS II)
iii) Manager (MMGS III)
iv) Chief Manager (SMGS IV)
v) AGM (SMGS V)
vi) DGM ( TEGS VI)
vii) GM (TEGS VII)
Normally in SBI there are promotions in every 3-4 years
HSBC
RECRUITMENT PROCESS:
The selection of external recruits consists of the following steps:
CV-Online form
Potential candidates interested in joining the bank are required to complete the CV-
Online electronic form.
Application Evaluation
The Human Resources department evaluates all incoming applications, against prerequisite
abilities and skills set for all current openings. All applications are kept based on strengths and
specialization, for future reference.
Ability Tests
Potential candidates will be invited to participate in aptitude tests i.e. numerical, verbal, English
and psychometric, when deemed necessary.
Capability Based Interviews
To ensure that our recruitment process is fair and consistent, all candidates who are successful at
the exams are invited for a capability based interview. Interviews are based against capabilities,
8. required for each position for which the candidate is interviewed for. A capability or competency
is an ability described in terms of skills & behaviours that are essential to effectively perform
within a job..
Job Offer
If a candidate successfully reaches the final stage, a position offering is made in conjunction with
a reward package.
BENEFITS AND REWARDS:
We offer our people market competitive rewards and a wide variety of benefits that help them
manage their diverse lifestyles.
Rewards:
Salaries: Market competitive remuneration package subject to annual review where
individual performance is recognized.
Performance Bonus: Market competitive annual bonus based on results and individual
performance.
Incentive Schemes: Market competitive incentive schemes in specific business areas.
Share saves: Employees are entitled to buy HSBC shares at a 20 per cent discount on the
market price.
Benefits:
Private pension plan
Private medical plan for employees and dependents
Life and accident insurance
Medical check ups
Banking products with preferential pricing
Nursery and summer camp allowances
Bank car, parking space and allowances, depending on position
Annual employee party etc.
TRAINING:
Training and development is a vital part of HRM and is incomplete without proper performance
management. The article discusses the training and development in detail as practiced at HSBC
Bank in Pakistan. It is conducted in four steps. First Training need analysis is done where the
existing skills and knowledge of employees are evaluated and then training requirements are
assessed. Then in the second step appropriate program is designed to fulfill the training
requirements and in the third step that training is conducted. In the fourth and last step the
employees are again evaluated to check the effectiveness of the program. The training program
is usually divided into three parts. In the first past employee is given orientation of the bank and
the job. This is called induction training. In the second part, employee is given job specific
training and in the third part employees are encouraged and groomed to achieve their personal
9. development goals. The paper then discusses performance management at HSBC and how it
influences the several stages of the training program. Also the relationship between training and
development and performance management is discussed.
LEARNING AND DEVELOPMENT:
HSBC success depends on the quality of services provided to customers, so does ability to
attract, develop and motivate employees.
HSBC provides a supportive environment and extensive learning opportunities to help
employees develop their skills and knowledge to enhance their professional and personal lives.
As well as attending classroom and e-training courses, employees can also broaden their
knowledge and exposure to different cultures through exchanges and overseas assignments.
Corporate sustainability training
Training statistics
PERFORMANCE APPRAISALS:
Maintaining employees' focus and motivation is essential if they are to make a full contribution
to your business. Performance appraisals actively involve employees in understanding what is
expected of them. By setting agreed objectives - and later reviewing the results - each employee
is responsible for his or her own performance.
This briefing outlines:
1. The benefits of using performance appraisals.
2. What to include in the self-assessment form you give to employees.
3. How to prepare for the appraisal meeting.
4. How to conduct, and follow up, the meeting.
JOB DESCRIPTION:
JOB TITLE: PROGRAMME MANAGER – WWF THAMES PROGRAMME (PART OF
THE HSBC CLIMATE PROGRAMME)
REPORTS TO: HEAD OF FRESHWATER PROGRAMMES
DEPARTMENT: FRESHWATER TEAM
DIVISION: PROGRAMMES
10. TERMINATION:
HSBC bank is laying off 300 employees to improve its efficiency, profit and to reduce the
unnecessary layers of management. Downsizing is a part of the global strategy of the bank that is
aiming at the reduction of workforce.
Earlier 300 employees were laid off from the broking branch and now pink slips have been
issued to the employees working in the bank. Laying off is based on the “Last in first out”. So
list of sacked employees include the persons working for less than five years in the bank.
"We will all be aware now of the global organizational effectiveness programme to improve our
efficiency and effectiveness. One of the key elements of achieving this will be reducing
unnecessary layers of management," CEO Stuart P Milne said in an email to employees.
According the sources, in the process of termination, employees were called by the HR and
given the termination letter with immediate effect.
This phenomenon is not only taking place in India but across the globe in all the branches of
HSBC. The whole process is to increase the efficiency, revenue and to ensure the long term
stability of bank in the financial market.
PROMOTION:
HSBC India has undertaken a massive layoff exercise showing the door to as many as 200
employees ranging from assistant manager to vice presidents from its centres in Hyderabad
alone.
The axe has fallen on over 350 employees at HSBC's Pune centres. It is estimated that a total of
750 employees have been asked to leave across locations and designations. So from assistant
managers to vice presidents have been summoned to the meeting room in the last two days,
asked to choose between termination or resignation, pack their bags and leave. Every couple of
hours, employees were escorted out of the building by guards after quick meetings with the
human resource department.
PUNJAB NATIONAL BANK (PNB)
Punjab National Bank has set its foot firmly in the country as one of the most reliable and best
organizations in the country. The nationalized bank has over 72 million customers who are
11. satisfied to the core and has 5697 branches all over India. The brand image of PNB is
phenomenal and PNB has always been known to follow one of the best banking principles in the
country with customer oriented approach. The bank was established in the year 1895 and it has
the prestigious status of being the first nationally administered bank which started off with the
then national capital of the country. PNB has made sure that the services of the bank is accessible
not only in the cities and other urban areas of the country, but the population belonging to the
rural areas of India can also enjoy the excellent services offered by the bank. Despite being one
of the oldest banking institutions of India, PNB has not shown any kind of shyness in adopting
the changing technology which has made its way into the banking sector of the country with the
passing time.
Recruitment
PNB issue notifications for the recruitment process of eligible candidates and the details of the
recruitment process are given below.
PNB invites applications from interested and eligible candidates for the available vacancy in the
bank. The total number of vacancies has been divided into the various states where PNB
branches are available in India. Apart from this, the vacancies are divided into the various
reservation categories as per instructions of the government.
Recruitment eligibility condition
Minimum educational qualification for any post is graduation from any UGC recognised
university with minimum 50% aggregate marks. Working knowledge of computer‟s popular
applications like MS word, MS excel etc.
Applicant must have valid ibps scorecard. For each state bank determined different total
weighted scores. As far the age concern, minimum age 20 years and maximum 25 years. Upper
age relaxation available for Scheduled cast, scheduled tribe, other backward classes and person
with disability under government of India rules and instruction. Then available vacancies are
advertised in newspapers or on website and selection test is scheduled on the given date and
finally selected candidates called for interview.
Selection process details
Punjab National Bank conducts written test and interview for the recruitment of candidates
1) written test: written test can be held in two patterns
a) Objective test: objective test has 4 papers
1. Reasoning
2.Quantitative aptitude
3.English
4.Computer & Marketing.
b) Descriptive test: Descriptive test held on English composition.
2) Interview: According to the score of written test and performance in interview of the
candidate will be selected finally for the post.
12. Training and Development
Training has been important aspect of the strategy adopted by the Bank to enhance quality of
Human resources. Indeed, continued training and the process of learning have played a vital role
towards successful accomplishment of the mandated responsibilities in recent times. By
providing the members with an opportunity for acquisition & enhancement of skills, linking the
learning process with results and making learning an inherent part of bank, we have transformed
training into a requirement and not an option.
The training imparted to employees of PNB has been divided into six broad categories, out of
which first five constitute institutional forms of training while the sixth was more specific
department based training.
Post Induction Training:
All new recruits are exposed to this training module in order toFamiliarize them with the main
functions of PNB as well as economic management in general. This mandatory form of training
for all recruits is conducted through HR department.
Management Training:
As most of the PNB staff is professionals, they need to be trained inthe basic techniques and
tools of management theory and practice. These courses also help inIdentifying potential
managers for the institution.
Foreign Training:
In order to expose our officers to latest tools of trade, international bestPractices and advanced
knowledge, officers are also sent for foreign training to institutions like World Bank Institute,
SEACEN, BIS, Centre for Central Banking Studies, IMF Training Institute as well as a host of
other renowned international training centres. A number of these trainingOpportunities are
funded through Technical Assistance Program from Asian Development Bank as well as World
Bank.
Specialized Training:
Besides enhancement of general skills through institutional trainingPrograms, there are many
department-specific training needs. Here the directors of respectiveDepartments have been
authorized to identify training needs specific to their requirements and develop programs, which
are funded through departmental budgets. This arrangement not only provides flexibility to
departments but also allows them to follow a more focused approach towards enhancement of
skills necessary for specific work environment.
Performance appraisal
Performance appraisal is a multistage process involving several activities, which can be
administered using variety of approaches. Some of these approaches are being used by the PNB
for performance appraisal.
13. Intuitive approach: In this approach a supervisor or manager judge the employee based on the
perception.
Self-appraisal approach: Employees evaluate their own performance using a common format.
Group approach: The employee is evaluated by a group of persons in the bank.
Trait approach: This is conventional approach. The manager or supervisor evaluates the
employee on the basis of observable dimension of personality such as integrity, honesty,
dependability, punctuality, etc.
Appraisal based on achieved results: In this type of approach appraisal is based on concrete,
measurable, work achievents judged against fixed targets or goals set mutually by the subject and
the assessor.
Behavioral method: this method focuses on observed behaviour and observable critical incidents.
Job evaluation
There are three basic methods of job evaluation: (1) ranking, (2) classification, (3) factor
comparison. While many variations of these methods exist in practice, the three basic approaches
are described here.
Ranking Method
Perhaps the simplest method of job evaluation is the ranking method. According to this method,
jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs
also can be arranged according to the relative difficulty in performing them. The jobs are
examined as a whole rather than on the basis of important factors in the job; and the job at the
top of the list has the highest value and obviously the job at the bottom of the list will have the
lowest value.
Classification Method
According to this method, a predetermined number of job groups or job classes are established
and jobs are assigned to these classifications. This method places groups of jobs into job classes
or job grades. Separate classes may include office, clerical, managerial, personnel, etc. Following
is a brief description of such a classification in an office.
(a) Class I - Executives: Further classification under this category may be bank
manager, Deputy bank manager, personal manager, Departmental supervisor, etc.
(b) Class II - Skilled workers: Under this category may come the Cashier, Receipts
clerk, etc.
14. (c) Class III - Semiskilled workers: Under this category may come technicians,
Machine-operators, Switchboard operators, etc.
(d) Class IV - Semiskilled workers: This category comprises security team, Office
boys, etc.
Factor Comparison Method
A more systematic and scientific method of job evaluation is the factor comparison method.
Though it is the most complex method of all, it is consistent and appreciable. Under this method,
instead of ranking complete jobs, each job is ranked according to a series of factors. These
factors include mental effort, physical effort, skill needed, supervisory responsibility, working
conditions and other relevant factors (for instance, know-how, problem solving abilities,
accountability, etc.). Pay will be assigned in this method by comparing the weights of the factors
required for each job, i.e., the present wages paid for key jobs may be divided among the factors
weighed by importance (the most important factor, for instance, mental effort, receives the
highest weight). In other words, wages are assigned to the job in comparison to its ranking on
each job factor.
Transfer policy
Transfer in the PNB will be affected normally on account of the following.
On promotion
On job rotation
On account of synchronization of grades/posts
For enabling the officer to acquire eligibility of rural/semi urban experience for promotion.
Generally within three years the employees will be transferred to other branch. .
Promotion policy
Promotion is more or less similar in all public sector banks. PNB believes in promotion because
of its growing share in the market the employees are promoted at a faster speed. The sequence
will be.
Clerical staff
Probationary officer
Deputy branch manager
Branch manager
15. Chief Manager
Assistant general manager
General Manager
AXIS BANK
AXIS HR Objective:-
1. To initiate & institutionalise globally competitive HR practices in the Bank in our pursuit
to become a Bank of international standards and to become an employer of preferred
choice.
2. To put in place relevant HRD strategies and use modern methodologies to undertake
organizational renewal; identify and nurture talent, bring about marked changes in the
mindset of employees at all levels so as to enhance HR Quality.
3. To create a performance-driven culture and an exciting workplace for the employees.
4. To create a pool of entrepreneurial managers and business leaders for future.
5. To inculcate a strong and effective sales and service culture across levels in the
organization in order to generate strong stakeholder affiliation.
6. To create a learning organization for employees intellectual growth and creativity; and to
re-skill the workforce to operate in digitally enabled modern core banking environment.
The Strategic HR Business Model adopted by Axis incorporates its HR Mission and Philosophy
and is focused towards attainment of long-term organizational goals.
A very strong Organizational Leadership at different levels forms the key link in the
Model.These are:-
1. Strategic Leadership - Corporate level
2. Business Leadership - Zonal & Regional level
3. Operational Leadership - Business unit level i.e. branch
The two vital Human Resource sub-systems i.e. HR Planning & Management Sub-System
&Competency Based HRD Sub-System shape the very crucial Performance Environment within
the Bank which facilitates development of enabling capabilities of the people.
Through proper developmental inputs, Positive Attitude &Right Mindset is created among
people.
Through proper Communication Medium and an Organizational Culture of sharing, openness,
collaboration & confrontation, autonomy etc., people in the organization are facilitated to give
their best output (performance).
The Model is adequately supported by a suitable Learning Platform, which imparts proper
Knowledge and enhances Learning among people (functional, behaviouraletc) so that their
16. Competence increases and their potential could be properly leveraged for greater Individual and
Organizational Effectiveness.
These create proper Employee Motivation, which ultimately facilitates Goal Achievement.
HR Blueprint for Business Driven HR Reforms:
Board level approved strategy paper outlining various organization wide HR reforms
interventions
HR Steering Committee
Board Level HR Committee for piloting HR initiatives and reforms. The Committee comprises
of Directors and leading professionals as Experts from outside the Bank.
KHOJ
Organization wide Talent identification and Development Programme for Officers and Clerks
(Through scientific process of identification and selection, employees with high potential to be
deployed in key business areas.Such employees to be provided with suitable grooming and
career.
SAMPARK
SOS Employee HELP Line (Employees in distress can directly approach the CMD for
immediate relief)
PARAMARSH
Employees Counselling Centre (Counselling centres for providing psychological assistance and
guidance to overcome their stress, complexities and conflicts in order to lead a better life. This is
totally confidential between the employee and the counsellor. First such centre set up at Mumbai
where services of professional Clinical Psychologist are available.
AXIS FINANCIAL REWARDS FOR BUSINESS LEADERS
Weighted Index based Model (with pre-defined weight ages for different business KRAs) for
balanced assessment of efforts of Business Leaders (Branch Heads, Regional Heads, Deputy
Regional Heads and Zonal Heads). Rewards in Cash for achievement of business KRAs.
MEP-TIKSHNA
Management Education Programme for Executives (GM, DGM, AGM, Chief Managers) in
association with top B-Schools like IIM-Ahmadabad and Management Development Institute,
Gurgaon. The specially designed programme is aimed at development of strategic business
leaders for the future. So far, 213 executives have undergone the programme.
HR POLICY FOR OVERSEAS SELECTION & DEPLOYMENT
Scientific and process orientation in the new revamped policy for selection and deployment of
officers at the Bank„s overseas territories.
17. HR RESOURCING POLICY
New HR Resourcing Policy formulate to take care of various recruitment needs of the bank
consequent upon abolition of the erstwhile Banking Services Recruitment Board (BSRB).
Performance Appraisal System for Clerical and Sub-Staff
With the objective of bringing an organization wide performance culture in the organization,
hitherto uncovered employees in the Clerical and Sub-Staff cadre brought in under a new
performance appraisal system.
Massive Recruitment of Specialist officers and also graduates from B-Schools through
campus recruitment
To take care of the Bank„s requirement in different specialized areas like IT, Treasury, HR,
Marketing & Sales, Credit, International Business etc (Around 500 officers being recruited).
A New Induction cum Grooming Programme for Young Officers
With the objective of developing future managers and leaders and for deployment in key areas, a
re-vamped Officers„ Induction cum Grooming Programme is launched.
Fast Track Career Growth Opportunities for Executives and Officer
In order to provide fast track growth opportunities to aspiring Executives and Officers,
promotional opportunities have been provided.
Axis LEADERSHIP DEVELOPMENT CENTRE
Board has taken the decision to set-up a World-Class Leadership Development Centre to be set
up to prepare future leaders for the Bank.
NEW GROUP HR STRUCTURE
A new Group HR Organization Structure is being put in place to take care of the strategic
business – HR needs of the Organization. The Structure would have balanced focus on HRM and
HRD aspects and will put in place competency based HR systems and practices.
1. CV Submission Potential candidates interested in joining the bank are required to send their
complete curriculum vitae. An acknowledgement of receipt is sent for all submitted
applications to the candidate's email.
2. Application Evaluation The Human Resources department evaluates all incoming
applications, against prerequisite abilities and skills set for all current openings. All
applications are kept based on strengths and specialization, for future reference.
18. 3. Ability Tests Potential candidates will be invited to participate in aptitude tests i.e.
numerical, verbal, English and psychometric, when deemed necessary.
4. Capability Based Interviews To ensure that our recruitment process is fair and consistent,
all candidates who are successful at the exams are invited for a capability based interview.
Interviews are based against capabilities, required for each position for which the candidate
is interviewed for. A capability or competency is an ability described in terms of skills &
behaviours that are essential to effectively perform within a job.
5. Reply Letters At all stages of the process candidates are kept informed of the status of their
application with an email reply letter. 6. Job Offer If a candidate successfully reaches the
final stage, a position offering is made in conjunction with a competitive reward package.
HDFC BANK
HDFC Bank Limited is an Indian financial services company based in Mumbai,
Maharashtrathat was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank
in India by assets and the second largest bank by market capitalization as of February 24, 2012.
The bank was promoted by the Housing Development Finance Corporation, a premier housing
finance company (set up in 1977) of India. As on October 2012, HDFC Bank has 2,544 branches
and over 10,000 ATMs, in 1,399 cities in India, and all branches of the bank are linked on an
online real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82
billion. For the fiscal year 2010-11, the bank has reported net profit of
3,926.30 crores (US$714.59 million), up 33.1% from the previous fiscal. Total annual earnings
of the bank increased by 20.37% reaching at 24,263.4 crores (US$4.42 billion) in 2010-
11. HDFC Bank is one of the Big Four banks of India, along with: State Bank of India, ICICI
Bank and Punjab National Bank.
HDFC Bank is headquartered in Mumbai and as of March 31, 2012, the Bank‟s distribution
network was at 2,544 branches and 8,913 ATMs in 1,399 cities as against 1,986 branches and
10000 ATMs in 996 cities as of october,2012.
HUMAN RESOURCE MANAGEMENT
HRM means to select, develop, motivate and maintain human resources in the organisation. It
first selects the right human resources or staff (i.e. managers and employees). It trains and
develops them. It motivates them by giving them recognition and rewards. It also provides them
with the best working conditions. HRM is directly concerned with the people of the organisation.
It is people oriented process. That is, it manages people at work.
19. RECRUITMENT & SELECTION PROCESS
PRINCIPLES:
Following are the guiding principles for recruitment and on-boarding process.
• Attracting and recruiting the right people is one of the most important activities of the
organization and is the responsibility to be owned by each and every employee of the
organization.
• Merit will be the single most important factor in selection process.
• They will ensure a diversity, both gender and ethnicity by targeted candidate sourcing with the
help of recruitment vendors and the referral program.
• While skills and profile matching play an important role, they will hire people who are team
players and have the right attitude most relevant to the culture of the organization. Attitude is as
important as aptitude.
• They believe in becoming a company of giants and emphasis is in hiring people who can grow
bigger and better than they presently are.
• They believe in providing their employee with fulfilling career paths. Towards this, they will
post vacancies internally as a preferred option while evaluating external candidates.
• They believe that each candidate interviewed irrespective of whether she/he is selected should
become a friend of the organization. They treat all the candidates with the utmost respect. They
will be open and fair in communication with them; this way they also enhance the brand image
of the organization.
• They will continuously assess, identify and cultivate strategic talent pools including those at the
universities, management schools, and community forums to address their long term needs.
PLACEMENT:
Placement refers to assigning rank and responsibility to an individual, identifying him with a
particular job. If the person adjusts to the job and continues to perform per expectations, it means
that the candidate is properly placed. However, if the candidate is seen to have problems in
adjusting himself to the job, the supervisor must find out whether the person is properly placed
as per the latter‟s aptitude and potential. Usually, placement problems arise out of wrong
selection or improper placement or both. Therefore, HDFC constantly review cases of employees
below expectations / potential and employee related problems such as turnover, absenteeism,
accidents etc., and assess how far they are related to inappropriate placement decisions and
remedy the situation without delay.
INDUCTION:
Induction refers to the introduction of a person to the job and the organisation. The purpose is to
make the employee feel at home and develop a sense of pride in the organisation and
commitment to the job.
The induction process is also envisaged to indoctrinate, orient, acclimatise, acculturate the
person to the job and the organisation.
The basic thrust of Induction training during the first one or few weeks after a person joins
20. service in the HDFC Bank is to:
▪ introduce the person to the people with whom he works,
▪ make him aware of the general organisation policies that apply to
him as also the specific work situation and requirements,
▪answer any questions and clarify any doubts that the person
may have about the job and the organisation ……and
▪ provide on-the-job instructions, check back periodically how
the person is doing and offer help, if required.
TRAINING AND DEVELOPMENT
Training aims at increasing the aptitudes, skills and abilities of workers to perform specific job.
It makes employees more effective and skilful. In present dynamic world of business training is more
important there is an ever present need for training men. So that new and changed techniques may be adopted. A
new and changed technique may be taken as an advantages and improvement affected in the
old methods.
Training is learning experience that seeks relatively permanent change in an individual that will
improve his/her ability to perform on the job.
They provide on the job´ training to their employees in the branch as they select these employees
for selling various products of bank by direct marketing. Whenever they select new candidates for any post, they
use to give them on the job work.
PERFORMANCE APPRAISAL
PAS is traditionally used as a mechanism of controlling many fields of organizational
development, the PSBs are employee through salary administration, reward administration,
promotion, and disciplinary actions. HDFC Bank follows different types of appraisal model to
motivate the employees who works well and punishment for those who don‟t done well.
JOB EVALUATION
Job analysis describes the job;
Job evaluation develops a plan for comparing jobs in terms of those things the organization
considers
important determinants of job worth.
DETERMINANTS OF JOB STATUS
Four basic methods followed by HDFC Bank for job evaluation systems:
• ranking (involves creating a hierarchy of jobs by comparing jobs on a global factor that
presumably combines all parts of the job),
• classification (defines categories of jobs and slots jobs into these classes),
• factor comparison (involves job-to job comparisons on several specific factors),
• and the point plan (compares jobs on rating scales of specific factors).
21. JOB DESCRIPTION
Ensure all job profiles/descriptions reflect the real requirements of the job, rather than describing
the person who filled that job previously.
Write job profiles in language that encourages both men and women to apply ± including women
of and Differing backgrounds. For example, avoid use of jargon and acronyms that tend to be exclusive.
Recruiting and selecting the right people is paramount to the success of the HDFC BANK LTD.
And its ability to retain a workforce of the highest quality. This recruitment and selection policy sets out the
procedure to ensure that the best people are recruited on merit and that are the
recruitment process is free from bias and discrimination.
PROMOTION POLICY- Promotion is done in different situations like in case of retirement or
resignation, in case of sudden death of an employee; transfer of supervisory staff, and also in
case of opening of new branch or regional office, etc.
22. Conclusion
The banking industry is a highly regulated powerhouse that stabilizes the economic environment
of nations around the world. Banks store sensitive, personal information about their clients, and
commercial banks often house more valuable inventory cash than other retail operations. Bank
employees, from executives to tellers, must have a higher level of integrity and trustworthiness
than employees in most other industries, making the role of HR in banking that much more
important. The primary apprehension of the bank should be to bring in proper integration of
human resource management strategies with the business strategies. It should faster cohesive
team work and create commitment to improve the efficiency of its human capital. More than
operational skills today are banking call for these „soft skills' to attend the needs and requirement
of the customers at the counter.
