ASSIGNMENT ON HUMAN RESOURCE MANAGEMENT IN BANKING SECTOR

Group No: 1

Name of the students:

Abhisekh Gupta - 1

Biswajita Mohanty - 13

M Naga Raju - 39

Nidhi Maheshwari - 50

Prasun Chandra – 57

Shashi Shekhar Sharma – 79

Vikas Kalani - 99

Date: 23rd November, 2012

Submitted to: Dr. Mousumi Sengupta

Acknowledgement

We take this opportunity to express our gratitude and deep regards to our faculty Dr. . Mousumi Sengupta for her cordial support, valuable information and guidance which helped us in competing this task.

Introduction

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 roles of HR in banking are:

Applicant Screening

Certain jobs do not really require a thorough background check, but any job in a bank definitely does. Human resource departments in banks must go the extra mile to uncover the criminal and financial history of job applicants, for the safety of their clients and their organization as a whole. Banks are highly unlikely to hire candidates with financial fraud on their records, for example, due to the sheer weight of temptation a position in a bank would place on someone with that kind of history.

Development

Once people have been recruited, their skills need to develop over time. If they’re new to banking they need to be trained. If they’ve already got years of experience they can still improve. That’s the key goal of someone who works in development: devising training and development programs, helping people learn and grow in their careers. As the company moves forward, they also need to move forward.

Bank Security

Human resources departments must design and monitor work processes to reduce opportunities for internal theft and collusion. HR policies separate cash receiving, storage, processing and disbursement, and record all activities via video surveillance. In the event that an employee attempts to steal from a bank, the HR department must handle the legal paperwork and administrative processes required by court proceedings.

Pay Decisions

As with other industries, HR professionals in banks have a hand in making decisions for pay raises and promotions. Bank workforces are unique in that they often have two methods of paying employees: salaries for back-office and other personnel, and commissions for sales employees. Promotion decisions for salespeople selling loans and other financial products differ from decisions to promote administrative staff. Banks' HR departments must manage both equitably and strategically to develop the workforce.

Executive Recruitment

The banking industry is highly competitive, and banks constantly navigate a legal minefield that can devastate companies that step out of line. Finding the right executives is crucial in any industry, but especially one in which competition is so fierce and legal compliance so important. Human resources professionals in banks must go the extra mile to recruit 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, as well.

Communication

Communication with employees is a vital part of the HR process as it helps enhance transparency in HR practices, thereby imparting credibility to them. When dealing with human beings, it is important to be objective, transparent and non-discriminatory and this must be effectively communicated. The employee must say that the management has all the above qualities. The Banks have a clear cut advantage– they already have a participative process. Representatives of the employees sit on the Board itself

Systems/ Processes

The hallmark of any effective HR system/ process is that it should be objective and transparent. These traits are essential for the manpower to repose trust in the organization’s systems/ processes. No HR function can be effective if it does not enjoy the trust and confidence of its constituents. Banks need to be strong in this aspect.

Staff Meetings

Staff Meeting aims at group synergy, team building, open culture, family feeling and talent recognition which individually and cumulatively benefit the organizations.

Goals/Targets set for the unit/Bank is discussed in the monthly Staff Meetings conducted at all branches/units and action plan is drawn in achieving them.

The forum is being effectively utilized for harmonious functioning of all the branches and administrative units through greater involvement and collective contribution of all staff members.

Brain Storming Sessions

This is a technique for generating ideas and suggestions on topics of relevance and also to provide alternate solutions to problems by simulative thinking and imaginative power of cross section of employees.

Corporate Topics are selected for each quarter and BSS are conducted in administrative offices/ braches on the topic during every quarter.

Worthy implement able suggestions emanated are circulated for necessary action.

Study Circle

Concept of Study Circle aims at self development of employees by kindling the desire to acquire/update knowledge, information and experience.

Guest lectures/ Power Point Presentation / Group Discussions, etc are arranged on topics of general interest by inviting experts in the field.

Study Circle Meeting are conducted once in two months in administrative offices and once in a quarter in braches

 Quality Circles

It is a time tested tool of Total Quality Management (TQM) which promotes team spirit, cohesive quality work culture, commitment and involvement of employees.

CHALLENGES FACED BY THE BANKS:

1. The real challenge of this sector is the "Indian companies", how to transform into global corporations without losing the positive values and culture that they have developed.

2. As most part of the jobs in this industry is monotonous/repetitive and routine, the HRD Department has to empower, engage and energies employees to create effectiveness & efficiency through motivation organizational structures, systems & procedures are facilitators of these, and there is a need to focus greater attention on these aspects by the industry.

3. However, the emergence of a core and peripheral workforce in many organization has presented new challenges for HR managers public & private sector organizations are fast becoming diverse communities for core workers, flexibly employed casual and part-time workers, consultants, contractors & business partners.

4. Certain rigidities have also developed in HRD within this banking system itself because this industry is largely in the public sector.

Literature Review

 The absence of talent in the government and public sector is the product of a deliberate

neglect of human resources issues. Dodging real issues could take us back to pre-reform

days 

The Reserve Bank of India (RBI) plans to rope in outside consultants to overhaul its human

resource (HR) practices, a move that would affect its nearly 18,000 employees. It is reported that

the central bank will form a panel of up to six independent professional firms to help the RBI in

framing, implementing and delivering integrated HR solutions in the areas of HR policies,

processes and systems, among others. The empanelled consultants would advise the central bank

on matters like hiring, salaries, training, performance appraisal, retention and succession plans,

the banking regulator said. The panel will help the RBI in areas like strategic HR planning and

advisory services; evaluation and assessment system; HR and management practices audits;

beside others.

 

This is a step in the right direction. Recent years saw several flaws in HR management in the

central bank. Ad hoc recruitment of executive interns without planning their future deployment

or absorption, succumbing to pressure on promotion policies, not being able to convince the

Government of India (GOI) on the need to implement competitive remuneration packages for

recruiting and retaining efficient officers, failure to decide on upgrading of retirement benefits at

least on par with GOI are just some examples. When it comes to infusing professionalism in

specialized areas like supervision, forex and debt management the RBI is facing several

constraints, many of them emanating from its failure to argue with North Block as the finance

ministry shows an attitude akin to master-servant relationship. Now that RBI has woken up, we

may expect other statutory bodies and public sector organizations followed by the GOI to follow

suit and think of an overhaul in their Human Resources Management and Development (HRMD)

practices.

In this context, a look at the relevance of the Indian public sector and the neglect the sector is

subjected to especially since the LPG (Liberalisation-Privatisation-Globalisation ) days, circa

1991 may help us stop, look and proceed further to develop the India growth story further.

Our country, since independence—or more appropriately—right from the First Five Year Plan,

has been giving due importance for a vibrant and growing public sector in the nation’s economic

development. In fact, certain sectors like defence production, Railways, Post and Telegraph were

almost monopolized by the public sector till a change in policy became necessary post-LPG. The

policy shift has thrown up many challenges before the government and the organizations in the

public sector.

Both Jawaharlal Nehru and Indira Gandhi clearly understood the role of public sector in the

Indian scenario. Establishment of core industries in the public sector and other measures up to

nationalization of major banks were well thought out steps, taking into account the needs of a

nation with an abundance of resources waiting to be managed and the urgency in ensuring fast

economic development, distributive justice, employment generation and outreach to the rural

areas. The two leaders saw in public sector organizations the capability to function efficiently in

a democratic dispensation, guided by government policy, especially in regard to social

responsibility and reach out to areas, organizations guided only by profit motive would normally

refuse to penetrate.

Actually, the private-public sector divide in regard to meeting social responsibility

obligations/commitments and a discriminatory approach between the two sectors, when it comes

to government policy support is a legacy of the British Raj. Once it is accepted that the resources

of the country are the property of the people and irrespective of ownership (whether government

or private individuals/groups/families/organizations), all are handling public funds/resources in a

trusteeship sense, this divide can be bridged to a great extent.

Presently, in the above background, the Indian public sector is ailing from lack of autonomy,

indecent competition arising from a wrong understanding of the unique position of our country

and irrelevant comparisons. Unique position because, our per capita geographical area,

availability of resources, literacy rate, development needs, system of governance  and so on are

not amenable to comparison with most of the developed and developing countries of the world.

Day in and day out India is given a rank or rating among the assortment of nations in the world,

many of them together can be accommodated in one of the states of India.

We are persuaded to believe that corruption and inefficiency exist in government and public

sector only. In fact there is nothing further than truth than this belief. The pre-IT success stories

of the Indian Railways, Posts & Telegraph, oil sector, space research, defence production and

several other sectors which functioned efficiently and where corrupt practices were brought to

light quickly and remedial action initiated departmentally are easily and conveniently forgotten.

Of course, now, one gets an impression that there is a vested interest working in the private

sector to keep government corrupt and public sector inefficient. If human resources related issues

in the government and public sector are given the attention they deserve, many of the present

problems can be solved. A brief discussion of the HR-related problems in government and public

sector follows.

The absence of talent in the government and public sector is the product of a deliberate neglect

of HR-related issues by the government. The ageing top level in the government and public

sector is a serious issue. In the present context when performance of the government and

institutions in public and private sectors is being watched by the world and judged almost online,

human resources development (HRD) at the top across sectors should become a national priority.

As a fire-fighting measure, there is a need for a comprehensive look at manpower planning and

deployment of available expertise among institutions across private and public sectors and

related HRD issues which have to be handled without further loss of time.

More than a year back, the RBI governor made a plea for a level playing field for PSU banks

with enough freedom to hire executives and employees on competitive terms. This should have

been seen in a wider perspective. Recently, the RBI too opted for recruiting short-term (for three

years) executive interns on contract basis. The RBI has tried out most of the options like

accelerated promotion, foreign postings, deputation to subsidiaries, assignment to higher quality

training programme and paid holiday with family for its employees. As large disparities between

the pay and perks in institutions with similar responsibilities across public/private sectors had not

been appropriately addressed, the RBI’s new hiring scheme also did not attract talent.

The government should not further delay a revamp of the policy relating to recruitment, training,

placement and compensation strategies across government, public and private sectors. A long-

term solution may  have to be found for HR-related problems, including inability to hire experts

at market related compensation (this is applicable up to the position of secretary/CEO in

government and public sector), skills becoming obsolete in short periods, employees’ reluctance

to change and demands from trade unions emanating from job security concerns. There may not

be a “fit-for-all” remedy, as the issues are diverse and sometimes sector/institution-specific.

The government and public sector organizations may have to consider how best the “Cost to

Company” (C to C) principles can be integrated into their existing recruitment, training,

placement and career progression policies. This may involve convincing the existing employees

that the changes will only improve the working results of the government departments and

organizations they belong to and they will get opportunity to share the benefits and new job

opportunities and so long as they are prepared to learn new things/upgrade their skills the

infusion of ‘experts’ will not eat into their career progression opportunities. Inter-mobility of

executives at higher levels among comparable departments of government and public and private

sector organizations should be possible, on transparent norms and strictly based on merits.

Changes may have to come first in the recruitment and training procedures for IAS and relates

services, management trainees in public/private sector undertakings including probationary

officers in public sector banks (PSBs). Recent revamping of Tata Administrative Service gives

enough food for thought for thinking on these lines. Specialized services like one for

banking/financial sector could be evolved for institutions including those in the private sector

and all regulatory bodies in the financial sector.

A transparent guidance for a remuneration package based on the paying capacity/need for skills

for different sectors and ensuring social security should come from the government without

always worrying about what will be the impact on cabinet secretary’s salary or trade union

demands. If the government secretary deserves a higher salary, the government should not raise

budgetary concerns for not paying it. Instead, merger of some departments and utilizing the

surplus manpower for new job opportunities should be a wiser option.

Time is opportune for both private and public sector organizations to have some introspection on

their HR practices right from recruitment at the lowest level to the selection of CEOs,

remuneration packages, training facilities and social security measures for their employees.

While organizations in the private sector may have to review the optimum pressure they can put

on their executives and managers, government and public sector counterparts may

dispassionately examine and modify their remuneration packages to ensure attracting and

retaining competitive talent in the present market scenario. Let us not forget that the civil

services, executives and staff of public/private sector undertakings have to supplement the skills

of the increasing number of political masters who were not as fortunate to get trained or

groomed. The nation is immensely dependent on them for carrying out the development agenda

on hand.

Till, perhaps ten years back, employers could depend on a growing population of educated

unemployed from which they could hire and fire candidates on their terms. The position has

changed with the opening up of the economy and sooner we realize it and act, the better.

Dodging real issues could take us back to pre-reform days.

Illustrations/ examples (at least 5 companies in the sector specified)

HR PRACTICES IN AXIS BANK

OBJECTIVES OF HRD IN AXIS BANK

Initiate & institutionalize globally competitive HR practices.

Put in place relevant HRD strategies and use modern methodologies.

Create a performance-driven culture and an exciting workplace.

Create a pool of entrepreneurial managers and business leaders.

Create a learning organization for employees.

FUNCTIONS OF HRD

Ultimate aim of the human resources function is to build and manage a motivated pool of

professionals delivering optimum value to customers.

Major platforms on which the success of the bank's corporate strategy rests is bringing on

board the requisite skills.

Young bank with an average age of 29 years and a talent pool comprising a mix of new

recruits and experienced officers.

Training-Scheduling. Performance Management. Compensation/Reward Administration.

Grievance Handling.

HR BLUEPRINT FOR BUSINESS DRIVEN HR REFORMS

HR Steering Committee

KHOJ

Sampark

Paramarsh

Axis Financial Rewards For Business Leaders

Mep-tikshna

Hr Policy For Overseas Selection & Deployment Hr Resourcing Policy

Performance Appraisal System For Clerical And Sub-staff Axis LEADERSHIP

DEVELOPMENT CENTRE.

RECRUITMENT PROCESS IN AXIS BANK

Cv submission and application evaluation

Ability tests

Capability Based interview

Reply letters

Job offer

Axis plans HR overhaul to build its future team

Having put a strategy and structure in place, Axis bank is now focusing on human relations. The bank is taking the assistance of human resource consultancy firm Cerebrus Consultants and Hewitt to get its HR structure aligned to its growth strategy.

In a freewheeling interview with ET, Axis Bank MD & CEO Shikha Sharma said Axis has decided that there are 'too many' opportunities in the India of the next decade.

HR PRACTICES IN ICICI BANK

Savvy HR saves ICICI Bank Rs 100 crores

Sources:

Advertisements – newspapers , magazines Campus Recruitment Head Hunters- executive search Job portals Consultancies or agencies Employee Referral Walk in

Selection process:

Aptitude test Group Discussion Psychometric Test Interview

ICICI Group has successfully implemented Sum Total's solution as an enterprise application for aligning the e-Learning needs of its employees. ICICI Group includes companies like - ICICI Bank Ltd.ICICI Prudential Life Insurance Co., ICICI Lombard General Insurance Company and ICICI Securities LTD.

ICICI Group joins not only five of America's top-six commercial banks as ranked by Fortune magazine but also top-tier financial firms including Brazil's largest private-sector bank Banco Bradesco in choosing Sum Total's solutions. Sum Total Systems deployed its award-winning Sum Total Enterprise Suite(TM) in the bank's Learning Management System called "The Learning Matrix.""This implementation has provided ICICI an efficient and cost-effective business learning management solution making training more accessible to our employees

If you look at our entire HR system— sourcing, training and managing information system— we should deliver 8 to 10 per cent of the cost budget every year, by running our HR programmers and recruitments in a tight manner,” says K. Ramkumar, group chief HR officer, ICICI Bank.

At the core of this achievement is the forecasting technique used by the HR team, which seeks to achieve accurate results each month. Industry analysts estimate that this could amount to a saving of over Rs 100 crore a year.

The bank’s HR team forecasts attrition by doing three things. In the third week of every month, it holds a forecasting meeting where projections are made for resource needs for the following three months.

The need for the following month is made in a more concrete manner to take care of immediate requirements and for the other two months it’s more of a sizing exercise to forecast need.

After this assessment, the bank classifies attrition rates into high, medium and low (above 25 per cent is high, 12 - 25 per cent is medium and below 12 per cent is low). It also classifies attrition into ‘critical’ and ‘non-critical’ and by geography.

HR PRACTICES IN UNION BANK

 As a part of its ongoing Navnirman project, state-owned lender Union Bank of India has appointed Hewit to address human resources issues within the bank.

Hewit will look into the entire HR system and practices in the bank.

The idea is to have a complete roadmap for the bank on issues like appraisal, succession planning and reward mechanism.

Union Bank had roped in Boston Consulting Group (BCG) for suggesting restructuring measures for the bank. Moreover, the bank had hired the services of noted ad consultant Mudra for its rebranding exercise in past.

HR PRACTICES IN BANK OF INDIA

Bank of India (BoI) has decided to outsource its human resource (HR) related requirements with a view to introduce sophisticated HR practices, processes and techniques in managing its workforce. The plan is to use technology in the areas of HR process management system in order to achieve higher operational efficiency, streamlined processed and work flow automation in HR functions. A sub-committee has also been formed to formulate and evaluate the plan, which is in line with the bank’s business strategy. They have decided to use Web-based solutions as well as best of HRM systems on outsourced basis.

BoI has plans to introduce data mining and e-learning with the assistance of the vendor, which is supposed to develop the software for this. The motive is to increase job satisfaction and motivation levels.

HR PRACTICES IN ANDHRA BANK

A committee has been set up at the board level to formulate a human resource policy taking into account the requirements and challenges in up-gradation of scale.

-Based on the HR policy paper placed before the board, appropriate steps are being taken to improve the functioning in respect of human resource development

Staff and Training -

1. The bank has a staff strength of around 15000, which includes Officers, clerks and sub-staff.

2. Training Programmes:

Skill Improvement Trainings Basic level Orientation Programmes. Entrepreneurial Development Programmes ( EDPs )

CSR

1. Imparting training to Agriculturists, Rural Un-employed youth on vocational courses by our 9 Rural Development Institutes.

2. Established Andhra Bank Rural Development Trust in the year 1989 to Care and Concern for Rural People.

HR PRACTICES IN BANK OF BARODA

The Strategic HR Business Model adopted by Bank of Baroda 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;

* Strategic Leadership - Corporate level

* Business Leadership - Zonal & Regional level

* 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 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, behavioural etc) so that their Competence increases and their potential could be properly leveraged for greater Individual and Organizational Effectiveness.

These create proper Employee Motivation, which ultimately facilitates Goal

The Strategic HR Business Model adopted by Bank of Baroda 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;

Strategic Leadership - Corporate level

Business Leadership - Zonal & Regional level

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 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, behavioural etc) so that their Competence increases and their potential could be properly leveraged for greater Individual and Organizational Effectiveness.

These create proper Employee Motivation, which ultimately facilitates Goal

HR Initiatives

People oriented Deployment, Promotion and selection policies

Bank has formulated and put in place well documented and comprehensive deployment, promotion and selection policies oriented towards identifying the best talent and providing opportunities for fast-track growth and development. Some of the prominent HR policies put in place are

HR Resourcing policy Promotion policy for officers Transfer policy for officers Promotion policies for clerical and subordinate cadre Overseas selection policy

Talent identification and grooming programmes

Various programmes are being run by the Bank for grooming of officers in specialized areas of Credit, Forex, Treasury / Dealing, Wealth Management, for grooming of Branch heads, etc.

 Customized Leadership development programmes

PROJECT LEAP: Bank has been a forerunner in initiating customized and focused leadership development programmes for its operational and strategic leaders. Project-LEAP (Leadership enhancement and appreciation programme) was initiated by the Bank for grooming 300 leaders of the Bank and was implemented during the period 2007-2009. It involved systematic development of identified leadership competencies after running of an individualized assessment and gap analysis on those competencies for each participant.

PROJECT UDAAN: This is a comprehensive leadership development programme initiated by the Bank covering almost 300 AGMs / DGMs and almost 1200 Branch Heads of Urban and Metro Branches.

The design of each module encompasses a field and forum approach wherein the participants are required to attend classroom sessions on various aspects of leadership and apply the acquired learning to real business situations. The classroom sessions are also designed to be very experiential with role-plays, activities, etc. reinforcing various leadership concepts in an off-site location coupled with coaching sessions in between. .

HRNes (Human Resource Network for Employee Services)

"HRNes" covers the entire gamut of human resources management function in the Bank currently being performed and also includes many new sub-functions. It comprises of four broad modules encompassing different functions:

Oracle Core HR Module, covering all current HR processes in the Bank; Fluous Payroll Module, - centralized payroll, payments of various benefits, perks, welfare

schemes, terminal benefits, etc.; Employee Self-Service Module. Oracle Learning Management Module which includes training administration & e-

learning; Various E-Learning modules are gradually being put on the system for employees to avail of and undergo these courses.

Employee performance management system

A new Performance Management system has been formulated and implemented for all officers w.e.f. 2009-10 onwards. The new system enables a holistic approach to the issue of managing performance and does not limit to only an appraisal. It starts from performance planning and Goal-setting and takes it forward into performance review discussions, feedback and development. The new system is business-linked, highly objective and fully transparent, with individuals owning and managing their own performance themselves.

Idea channels for eliciting new ideas from employees with structured rewards provisions for the best ideas.

Streamlined Induction schedule for all new joinees

Bank has put in place a well-defined and properly structured induction programme, phase-wise for different batches of directly recruited officers, campus recruiters and newly recruited clerks, which is imparted through a mix of classroom and on-the-job training.

Role-change programmes and executive development programmes

Executive Development programmes are being regularly conducted for newly promoted senior and top management people in conjunction with leading Business schools like ISB, Hyderabad, MDl, Gurgaon, National Institute of Bank Management, Pune, etc.

Role change programmes are being conducted for newly promoted employees at Bank's internal training establishments which give them inputs on behavioral issues, soft skills, team work, leadership, etc. besides ways on how to cope with the challenges of the new role better.

Grooming and etiquettes programmes

Grooming and etiquettes programmes are being conducted for front-line employees and also for employees selected for overseas posting in order to improve their service levels and qualitative interaction with customers and various stakeholders better.

SEED (Self efficiency and effectiveness development) programme being run for frontline staff of the Bank in order to improve their service skills and servicing efficiency.

Conclusion

Banks have to understand that the capital and technology-considered to be the most important pillars of banking are replicable, but not human capital, which needs to be viewed as a valuable resource for the achievement of competitive advantage.  The long-term vision for India's banking system is to transform itself from being a domestic one to the global level may sound far-fetched at present.  To take up this industry to the heights of international excellence requires combination of new technologies, better processes of credit and risk appraisal, treasury management, product diversification, internal control, external regulations and human resources at the most.   

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. 

The core function of HR in banking industry is to facilitate the performance improvement among its people. Factors such as skills, attitudes and knowledge of personnel, play a critical role in determining the competitiveness within the organization or the industry (2002). The quality of human resources indicates the ability of banks to deliver the value to clients or customers. The primary emphasis needs to be on integrating human resource strategies with the business strategy. Above the aspects of recruitment, placement, performance management, rewards and employee relations - a radical transformation of the existing personnel structure in public sector banks like the seniority over performance is not the best environment for attracting the best talent from the young competitive environment. However, recruitment practices as well as on-the-job-training and redeployment are considered as one of those many improvements of HR in Indian Banks (2002).HRM Background and Practices To make the Indian Banking System stronger, efficient and low-cost, the creation of fundamentals must include in the bank’s operations, strategies and processes: strengthening the prudential norms and market discipline; adoption of international benchmarks; management of organizational change and consolidation within the financial system; upgrading the technological infrastructure of the financial system; and human resource development as the catalyst of the transformation (2002).The Human Resource field in the Banking Industry is considered as one of the process of discovery and transformation. The field of Human Resource can be described as emergent and dynamic within the cultural business aspect in a Banking Industry. The success of today’s banking business will sparsely depends on the human resources of the organization, in which plays a crucial role in providing the services needed. The evolution of banking system in India affected the human resource practices, recruitment and selection practices, and training system. It is very important that the details of human resource are discussed along with the employees, to build their own career planning, perceptions and development.The primary strength of the industry is the human resource that is why the efforts to develop the skills and management are the main subject placed before the human resource. A major challenge for many banks will be to develop the special competencies and skills for credit appraisal and risk management. Putting the information technology is a key contributed in human resource development. Therefore, the HR model of the future will require professionals to

be both driving and anticipating change, understanding the complexities of the new business environment and forces shaping it (2002).

SUGGESTIONS:

Following suggestions are very essential to adhere for effective Banking Administration:

1. HR functions to be linked to corporate goals.2. Shift from Industrial relations manager to Business manager or Commercial manager.3. Team work is another important and essential soft skill that is necessary in this industry.4. The HR Professionals have to introduce &improve the adaptability of their structure that

will be able to absorb, draw and retain the best.5. As people are primary asset, it is essential not only to invest in them, but also to ensure

that the supporting elements for this asset are such that it can provide the maximum value on a sustainable basis.

6. HRD is to be regularly reviewed against business outcomes as part of strategic and operational planning.

7. To overcome the public sector's hierarchical structure, which gives preference to seniority over performance, is not the best environment to attract the best talent from among the young.

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