management of attrition of young employees in

8/2/2019 Management of Attrition of Young Employees In

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MANAGEMENT OF ATTRITION OF YOUNG

EMPLOYEES IN :

INTRODUCTION

ATTRITIONhas been defined as unpredictable, uncontrolled, but normal, reduction of

workforce due to

Natural reasons - retirement on reaching the age of super annuation , death,resignation, termination of service as per service condition,on completion of period of

contract etc., Other reasons leaving jobs in quest of:

High statureBetter salaryImproved work culturePersonal reasonsOr any other reasons................

While talking about attrition we need to come across

few terms such as:

Employee

Employee turnover

Employee retention

Attrition rate

EMPLOYEE
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Individualwho works part time or full time under a contract of employment, whetheroral or written, express or implied, and has recognized rights and duties, also calledworker.

EMPLOYEE TURNOVER

It is said that employee turnover of any organization is Ratio of number ofemployees thatleave a firm through attrition, dismissal, or resignation during a period to the number of

employees on payroll during the same period.

Business feels pinch of rising labour cost.

There have been several cases bolstering the same thought way............

The Honda strike comes after a spate of suicides by workers at Foxconn , a Taiwan companythat employs more than 400,000 people in Shenzhen, Guangdong, to assemble electronicproducts from laptop computers to mobile devices. Workers there have been given a 30-per-cent pay rise after a series of suicide cases. On Sunday, Foxconn said it would go evenfurther by doubling the salaries of many...

Job Turnover Remained Scarce In April - U.S. Labour Department

Job Turnover Remained Scarce In April - U.S. Labour Department

BLS: Low Labour Turnover, Job Openings Increase in April

There were 3.1 million job openings on the last business day of April 2010, the U.S. Bureau ofLabour Statistics reported today. The job openings rate increased over the month to 2.3percent. The hires rate (3.3 percent) and the separations rate (3.1 percent) were unchanged.

This is a Backgrounder On Labour

Abstract: While layoffs increased during this recession, they are not the primary cause of thenearly 10 percent unemployment rate. The main factor driving the unemployment rate sohigh during this recession was, and continues to be, the sharp drop in creation of new jobs.

This is a Web Memo On Labour
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The Bureau of Labour Statistics (BLS) announced that net employment increased by 431,000in May, and that the unemployment rate fell to 9.7 percent from 9.9 percent.

Transformation of management coincided with rise of IT and re-orientationtowards the demand driven economy. IT facilitated the development of remotecommunication and data accessibility, while re-profiling the management methods,in meanwhile, customer focus has led to organization of customer-orientedestablishments such as call centres. However, aside from benefits, includingaccessibility, convenience, and long term cost reductions, implementation ofinnovations in information technologies has yielded issues. Complete assimilationof technology proved to be difficult due to factors emerging from technological,organizational and environmental contexts. Namely, factors that are most

applicable in the call centre context are technology readiness and managerialobstacles. Another issue that had risen as a consequence of wide spread use of ITin the call centre context is employee turnover. Although not directly linked toturnover per se, IT assisted in transformation of management methods, which,uncompensated, exert pressure onto employees, while often remaining unseen.Since pressure in addition to contributing factors is linked to stress, one suggeststhat stress is the leading cause of turnover at call centres. Accordingly, pressure toperform, along with applied control methods will be examined in this thesis.Thesis proceeds to investigate background information on these issues, followedby review of the relevant academic work, concluding with the case study in the

banking sector aiming to look at specific issues in order to find practical solutions.Finally, a summary will indicate the proposed direction for issue resolution

A Comparative Analysis ofEmployee Turnover in the British and Greek Banking Industry.Issues and Recommendations

Vivis doctoral research, co-supervised by Professor Geraint Johnes of the Department ofEconomics and Professor Paul Sparrow of the Centre for Performance-led HR, investigatesthe issue of employee turnover in both the British and Greek banking sector throughcomparing original personnel record and event history data in two financial institutions.

The project examines the likelihood of employees withdrawing in relation to a number ofmacro-economic, organisational and individual variables at a comparative level based uponhigh quality databases. For example, data are available for the UK bank covering the periodof 1991-2001, during which time around 20,000 people exited the firm. Comparative data arebeing established for a Greek bank. This enables a range of economic and psychologicalfactors to be assessed as predictors of turnover. Reasons for leaving may be linked to a rangeof other variables such as tenure, current and previous performance, demographic factorsand so forth. The project allows for an examination of the critical impact of employees
http://www.lums.lancs.ac.uk/economics/profiles/geraint-johnes/http://www.lums.lancs.ac.uk/Departments/Economics/http://www.lums.lancs.ac.uk/Departments/Economics/http://www.lums.lancs.ac.uk/hr/profiles/paul-sparrow/http://www.lums.lancs.ac.uk/hr/profiles/paul-sparrow/http://www.lums.lancs.ac.uk/Departments/Economics/http://www.lums.lancs.ac.uk/Departments/Economics/http://www.lums.lancs.ac.uk/economics/profiles/geraint-johnes/


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separation behaviour on organisational effectiveness and the modelling of turnover to thespecific industry. The analysis of the longitudinal data, will be undertaken through firstly, theformulation of parametric duration (survival) models exploring the effect of particulardeterminants on employee turnover and secondly, the estimation of a competing risk modelidentifying the different outcomes of/reasons for employee withdrawal. The study will also

provide empirical evidence of human resource practices on employee retention and turnoverapplied by both financial institutions.

The research is intended to disseminate knowledge of employee turnover concept throughthe identification of previous studies on the particular field, the interpretation of the largedataset used for the analysis gathered by the financial institutions and the explanation of theHRM practices applied by the organisations. Finally, the findings of this research will havemanagerial implications for the development of appropriate programs to evaluate, control oreven reduce the level of non desirable voluntary turnover within British and Greek banks.

ATTRITION ::::: Is it important to your organization?

Employee attrition costs 12 to 18 months salary for each leaving manager or professional, and4 to 6 months' pay for each leaving clerical or hourly employee. According to a study byIpsos-Reid, 30% of employees plan to change jobs in the next two years. Do the math anddiscover how much your company may pay for attrition.

Although employee turnover can help organizations evolve and change, an AmericanManagement Association survey showed that four out of five CEOs view employee retentionas a serious issue for organizational success. If managers know the real causes of attrition,

managers can control attrition and retain employees. Each retained employee can save moneyand lead to better opportunities.

Why Employees LeaveMost employees leave their work for reasons other than money - and your organization cancorrect these reasons. Most leaving employees seek opportunities that allow them to use anddevelop their skills. Leaving employees want more meaning in their work. They often indicatethat they want to use their qualities and skills in challenging teamwork led by capableleaders.

Managerial staff cite "career growth" and "leadership" as the major factors thatinfluence attrition and retention, together with "opportunities for management""ability of top management" "use of skills and abilities" and work/family balanceProfessional employees cite concerns about "supervisory coaching and counseling,""company direction" and interesting workClerical employees voice concerns such as "type of work," "use of skills and abilities"and opportunities to learn


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Hourly employees notice whether they are treated with respect, have capablemanagement and interesting work

Employee Orientation

New employees who attend a positive orientation program are 70% more likely to be withthe company three years later (Corning Glass).

Mergers/Acquisitions

Lee Hecht Harrison, a HR consulting firm, advises, "Far more employees will leave following arestructuring than are laid-off or terminated as a result of downsizing. This lost talent, andcost can be minimized through good communication."

Exit Interviews

Exit interviews provide an excellent source of information of internal problems, employees'perceptions of the organization, underlying workplace issues, and managers' leadershipabilities.

Ineffective Managers

High employee turnover can be recognized and properly attributed to poor managerialperformance, emotional intelligence and ineffective leadership. Poorly selected or improperlytrained managers can be expensive...

A Workforce Magazine article, "Knowing how to keep your best and brightest," reported theresults of interviews with 20,000 departing workers. The main reason that employees choseto leave was poor management. HR magazine found that 95 percent of exiting employeesattributed their search for a new position to an ineffective manager.

Hire attitude; Train skillsBuild positive, friendly, teamwork attitudes and commitment to customer servicesHelp new employees feel comfortable as they participate as valued team membersProvide periodic refresher courses to maintain team purpose and functionalityApply Expert Modelling to rapidly transfer expert skills within a workforce
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Reduce Attrition: Managers and Professional Employees

Adjust your company vision and manager's performance reviews to reflect employeeturnover, and provide mentoring and interpersonal training to inexperienced managers.

Develop and communicate a strong strategic visionProvide relationship coaching and help people develop to their potentialReward managers for their relationship skills - not only on technical know-how andfinancial resultsPeople dont leave jobs, they leave managers! Replace managers who will not developrelationship skills

Reduce Attrition: Clerical and Hourly Employees

Communicate . Most employees want to know more about their work. We can explain each

process and help employees understand the importance of their work. Your employees willbecome more knowledgeable about their effectiveness. Here are a few ways...

Compliments and thanks cost little and can bring great benefitsLet employees know that their opinions are valuableKeep employees informed - don't let them hear important news through rumoursUpdate employees with technical informationAddress staff by their first namesPublicly praise what the employee has accomplished and say why it was importantCriticize privately about what the employee can do better and explain how to do itbetterCreate community with activities such as informal meals or events outside workInvolve employees in organizational planningTitles cost little and remind employees that they are valuable

Attrition Control"People" Skills for Managers

Benefit from attrition control

programs that help your

company keep its best people.

Provide your managers with thebest communication and

leadership skills.

EMPLOYEE RETENTION

Linked to employee engagement.


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Employee is encouraged to stay with the organisation, till a major period or till

the project gets completed.

Employee retention is seen as an important way to keep a check on employee attrition in any

organization. Communication Business direction & leadership expectations to employee & ask

for feedback.

Market driven compensation revisions targeted at employee groups with attrition levels

(example employee with 2-6 years experience).

Innovative long- term incentives & retention programs.

Focus on career programs, job rotations & secondments.

Transparent, business driven & consistent implementation of perf. Appraisal annual awards

linked to the appraisal progamme.

Attrition & employee satisfaction figures indexed to leaders & retention / engagement of

employees given 20% - 30% of weightage in their performance appraisal.

Personnel policies simplified & communicated to all employees special employees;

Improve induction/orientation programme for new hires.

Improve flexible working and mobility specially for working mothers. Organise and track

focus groups,1-1 meetings and informal get-together.RE-STRUCTURING of the HR functionsto focus, measure responsiveness,resourcing,retention/engagement and transaction needs of

the Organization.


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EMPLOYEE

RETENTION

GROWTH

OPTIONS

ATTRACTIVE

PACKAGES

PERSONNEL

TRAININGRECREATION

GRIEVANCES


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RETENTION IS DONE AT THREE LEVELS.....

LOW LEVEL:

o Providing benfits.o Fun at work.o Occasional stress relievers.o Providing work place conveniences.o Employee support in tough time or personal crisis.

MEDIUM LEVELo Appreciation and recognition.o Benefit program for family support.o Providing conveniences at workplace.o Providing training, development and personal growth opportunities.

HIGH LEVEL

o Promotion.o Work life effectiveness.o Understanding employees.o Encouraging professional training, development and/or provide growth

opportunities.

o Provide environment trust.o Hire the suitable people from the beginning itself.

ATTRITION RATE

Reduction in number of employees through retirement, resignation or death.


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Percentage change in the labour force of the organization.

HUMAN RESOURCE DEPARTMENTS ROLE

Good as long as normal.

Brings new blood to the organization.

HR Personnels role comes in play while:

Interviewing comprehensively while recruitment & selection process.

Placing/assigning right person to the right place.

ATTRITION RATE HAPPENS

Salary reasons ....Handled using SALARY HIKES.

Work timings.

Career growth:

20 % of employees rise to seniority.

80% Search for it outside.

Higher education.

30% In an organization are women workers.Who Leave often due to:

Household duties. Irregular office hours. Marriage. Other reasons.

80% of attrition happens because of the mistakes made during the hiring process.

Other factors:-

Accident.

Dislike for the job.

Lack of security of employment.

Unsatisfactory work conditions.

ACCORDING TO REPORTS IN 2007 Attrition Rate in Indian Economy was 20% andGlobally it was 24%.


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Rate at which something is lost, or is reduced by, over a period isattritionrate.

Muncie Community Schools avoids teacher layoffs through attrition

MUNCIE -- Muncie Community Schools will not lay off a single teacher this summer, even asother nearby corporations have issued pink slips by the dozens.

Attrition worries return to haunt IT sectorThe Indian IT sector is grappling with high attrition rate even as firms

are doling out financial and other benefits to employees, says industry

body NASSCOM.

Employee attrition is one of the critical problem which is faced by an HR manager duringthese days. In an ideal situation an employee consider multiple comfort level while workingin a office for e.g. employer's goodwill in the market, remuneration, future growth, workingcondition, co-workers, current role's scope in the market & most important future stabilitywith the organization. In a survey, approximate 70% of the working population in India isnot happy at all due to one of the aspect (as mentioned aforesaid) which is not fulfilled whileworking in a organization which caused higher attrition rate.

In broad term, attrition is a situation which employer face when employee left theorganization due to job dissatisfaction, new opportunity in the market, retirement & naturalcause (death/illness). Now a days this is one of the most important question which is askedby higher authority to HR people."Why our attrition rate is higher than other company".Earlier it wasn't important for the organization, whether their employees are committed ornot, but now the time has been changed. The company cannot afford to lose its best

employee to competitors. Therefore, HR team conducts EXIT interview when an employeeleft the job to get the information about one's decision to leave an organization. It is aparamount consideration for a HR team to think, why people are vacating their positions.Still Human Resource team face the challenge due to wrong information provided duringEXIT interview.

Reason for Leaving-

The reason are various behind leaving an organization & any attempt to find onecomprehensive explanation for this phenomenon would be futile. Though the rising attritionwithin industries is a well-discussed topic but very few HR executives have been able topinpoint the 'exact' reason for this growing trend. A recent Hewitt 'Attrition & Retention'
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survey shows one of the top reasons for talent attrition to be "external inequity incompensation". They also show that 27% of the employees in their EXIT interview mentionedcompensation as the primary reason. It comes no surprise to many that money is an

important factor but what besides this, there are several factors that influence an employee'sdecision to leave.

Those days are gone when salary was the sole motivator for an employee to leave anorganization. According to a survey there are three main reasons that are followed by othercommon reason:

* In equity in compensation* Limited career opportunities* Role stagnation

Common reasons experienced by HR manager are discussed here:

* Mismatch of job profile.* Job stress and work-life imbalances* Odd working hours/Early morning-night shifts* Job hopping* Lack of authority provided to accomplish ones task* Monotony of job

The list can be endless but the reason why employees leave the organization is varyaccording to the nature of the business. The work should give to them the level of the

employees and the nature of the responsibility he/she can handle. Therefore it's verychallenging task for an HR expert to cope up with this situation and retain talent with anorganization.

Attrition to be a very big problem for banks: Reserve Bank of India(Press Trust of India/MUMBAI, January 11, 2010, 21:27 IST)

The Reserve Bank Of India (RBI) the made a statement today that the banking system may

increasingly face the problem of staff attrition in the period ahead and banks will have to

gear up to tackle the issue.

We are going to rise in the attrition rate. There is a need for adequate focus on HR

management.....Banks need to take adequate care of their manpower, RBI Deputy governor

Chakrabarty said at Bancon conference here today.

Banks are not putting adequate attention to improve their HR talent, Chakrabarty said,

adding for better efficiency, they need to educate their staff to enhance their skills.


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McKinsey Associate Partner Supriyo Sinha said nearly 63,000 employees of the public-sector

banks will retire over the next three years and banks will have to devise ways to overcome

this challenge.

Earlier this fiscal, leading PSBs like SBI, Bank of Baroda, Indian Overseas Bank and Bank of

India among others had announced their plan to hire over 30,000 hands this fiscal itself,

undeterred by the economic downturn and lower sales volume.

The biggest lender SBI had started a head hunt to support its fast expanding network by

planning to hire about 20,000 clerical staff and around 5000 supervisory staff by the fiscal-

end ,the bank said.

Bank OF India (BoI) was planning to hire around 1,737 this fiscal itself to man its expanding

network. This includes 500 officers ,500 clerical staff and 237 specialist officers in the next

three to four months a BoI officer had said.

Indian Banks Association Chairman MV Nair also shared a similar view saying nearly 58

percent of the PSB employees will retire by 2012.The IBA is understood to have appointed a

committee to study this matter in a comprehensive manner, Nair told reporters later.

Union bank plans to hire 2,000 staff and will also conduct campus interviews to

find the right talent, Nair, who is also Union Bank Chairman and Managing

Director (MD) said.

AN AQUAINATNCE TO:

BANK OF BARODA : Indias International bank

The Beginning:


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It has been a long and eventful journey lasting more than 100 years and across 25 countries.Starting in 1908 from princely state of BARODA to its new avtar as Indias International

Bank is a saga of vision, enterprise, financial prudence , mission and corporate governance.

It is a story of corporate wisdom and social pride. It is a story crafted in private capital ,

princely patronage and state ownership. It is a story of ordinary bankers and their

extraordinary contribution in the ascent of Bank Of Baroda to the formidable heights of

corporate glory ,that needs to be shared with all those millions of people customers

,stakeholders, employees & the public at large who in ample measures, have contributed to

the making of an institutuion .On 20th july 1908,Bank of Baroda ltd. was registered under the Baroda Companies Act of

1897,with a paid-up capital of Rs. 10 lacs . Maharaja Sayajirao III ,Its founder, foresaw, a

bank of this nature will prove beneficial agency for the lending, transmission and deposit of

money and a powerful factor in the development of art, industries and commerce of the

State and adjoining factors.

Our logo

Our new logo is a unique representation of an universal symbol.It comprises dualB letterforms that hold the rays of the rising sun.We call this the Baroda Sun.

The sun is an excellent representation of what our Bank stands for.It is the single

most powerful source of light and energy- its far reaching rays dispel drakness to

illuminate everything they touch.At Bank Of Baroda ,we seek to be the source

that will help all our stakeholders realise their goals. To our customers we seek to
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be one stop ,reliable partner who will help them address different financial

needs. To our employees ,we offer rewarding careers and to our investors and

business partners ,maximum return on their investment.

The single-color , compelling vermillion palette has been carefully chosen,for itsdistinctiveness as it stands for hope and energy.

We also recognise that our bank is characterized by diversity.Our network of

branches spans geographical and cultural boundaries and rural-urban divides.Our

customers come from a wide spectrum of industries and backgrounds. The

Baroda Sun is a fitting face for our brand because it is a universal symbol of

dynamism and optimism- it is meaningful our many audiences and easily decoded

by all.

Baroda ethics

Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda

survived the crisis, mainly due to its honest and prudent leadership.

This financial integrity , business prudence, caution and an abiding care andconcern for the hard earned savings of hard working people, were to become the

central philosophy around which business decisions would be effected. This

cardinal philosophy was over the 94 years of its existence , to become its biggest

asset. It ensured that the Bank survived the Great War years. It ensured survival

during the great depression. Even while big names were dragged into the Stock

Market scam and the Capital Market scam, the Bank Of Baroda remained

unscathed due to best ethical practises.

Strenthening the Edifice

In the mid1930s, greater autonomy was allowed to branches. Institutional

safeguards against possible misuse of powers vested in managers were installed.

In 1939 the first safe deposit lockers were provided at Baroda. Administrative


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initiatives were reinforced byHRD interventions. Branch expansion wsa pursued.

These were all bold experiments 70 years ago. Over the second great war

years,the Banks business grew phenomenally. At this time the Bank, in a limited

way, ventured into foreign exchange banking. In 1947, when India became free.,

Bank Of Baroda, with 48 brances, was still an essentially regional bank.

Nevertheless it had found a place in Indias Fortune Five list of banks.

In Indias post independence phase, the Bamk started fan out beyond its

backyard. Between 1953 and 1958, 30 new offices were opened. Strategic

mergers up to 1965 saw the Bank network over 234 branches. In a real sense,

Bank of Baroda had become a national institution. Upon nationalization , it

operated from 433 branches. Today the network is built over 2900 branches in

India and around the world.

Discovering new markets

In its early years the Bank deployed loanable funds into trade. When India started

its industrialization programme,Bank of Baroda found a niche in industry.

As India entered international markets,the Bank made forays into export-import

finance. As social and economic imperatives demanded focus on the neglected

rural and agriculture sector ,the Bank built a portfolio of agricultural credit

assets. Today , as the process of disintermediation begins to encroach on a

bankers credit market. Bank of Baroda has identified yet another new market

leveraged living by the Worlds largest mass of middle class. Credit focus is

inexorably shifting to this potentially explosive consumer credit market that

promises exciting growth possibilities. It is this relentless search for new marketsand new product ideas that has differentiated Bank of Baroda from the

competitors.

Beyond indian shores


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In 1953 , the bank opened its first overseas branch at Mombasa, Kenya. Wherever

enterprising indians settled beyond Indias shores, Bank of Baroda also went. The

need to become truly international and competitive ,drove later assaults on

international markets.

Today ,Bank of Baroda is Indias leading international bank. Its network covers 80

branches/offices in 25 countries. Overseas operations of the Bank today

contribute nearly 20%of the Banks net profit. In a real sense , Bank of Baroda ha

sgrown to become a truly international institution.

Nationalisation and national developmentOn 19th july,1969 The Bank Of Baroda Ltd. became Bank of Baroda. A new phase

in the banking has started. The commited itself to its new role of national

development. The Bank gave social banking a new dimension, with its Multi-

Service Agency(MSA) model for urban micro-credit. It was the most customer

friendly innovation in social banking anywhere.

In 1976 the Bank opened the first of its sposored Regional Rural Bankcomplementing itys own operations in the rural heartland, where three-quarters

of india lived. In 1977, the Bank launched the Gram Vikas Kendra, an innovative

model for integrated Rural Development. Following an aggressive expansion

policy, by 1981, the Bank had 1669 branches ,taking bank services to far-flung

places-the unbanked areas of India. The Bank co-ordinates State Level Bankers

Committees in Rajasthan and Uttar Pradesh.

People initiatives

Bank Of Baroda has always had an immense faith in the infinite potential of its

people. This has been historically demonstrated in its recruitment practices,

developmental processes and promotion policies. Strategic HR interventions like,


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according cross border and cross cultural work exposure to its managers, hiring

diverse functional specialists to support line functionaries and complementing the

technical competencies of its people by imparting conceptual, managerial and

leadership skills, gave the Bank competitive advantage. The elaborate man

management policies also made the Bank a breeding ground for business leaders.

The Bank provided around a dozen CEOs to the Banking industry-men who went

on to build other great institutions. People initiatives were blended with IR

initiatives to create an initiatives to create an effectively harmonious

workplace,where everyone prospered.

Financial initiatives

New norms for capital adequacy required new capital management strategies. In

1995 the Bank raised Rs. 300 crores through a bond issue. In 1996 the Bank

tapped the capital market with an IPO of Rs. 860 crores. Despite adverse market

conditions prevailing then the isue was over subscribed, reflecting the positive

public perception of the Banks fundamental financial strength.

Digital initiatives

Bank of Baroda pioneered the shift from manual operating systems to a

computerized work environment. The Banks technology initiatives are clearly

focussed on the customer. The Business Transformation Progamme,encompassing

technology, was implemented by Bank with a view to providing the customer,convinience banking on 24X7 basis, in India and abroad, through deployment of

Core Banking Solution with integrated delivery channels like ATM, internet

,Phone,Mobile,Kiosk,Call centre.


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Organizational structure of the bank

The Bank has a four tier structure , i.e. Baroda Corporation Centre/Head office,

Zonal Office, Regional office and Branches. The Bank is headed by Chairman &Managing Director supported by two Executive Directors. The Supreme

Authority is vested in the Board of Directors which is having 14 members

including the Chairman & Managing Director and both the Executive Directors.

The digammatic representation of structure of Bank Of Baroda:--

CHAIRMAN & MANAGINGCHAIRMAN & MANAGING CHAIRMAN &MANAGING

Board of

directors

Wholesale Banking

Treasury Operations &Resources Mgmnt.Corporate Accounts & TaxationPlanning & MISInspection & AuditCredit Monit. & Risk

Management

Retail BankingInternational OperationsSME,Rural & Agri-BankingHR & MarketingVigilanceRecovery,Legal ,AscromSubsidiaries & Associate BankOperation & Services

Estate Management

MANAGING DIRECTOR

DIRECTOREXECUTIVE DIRECTOR-1 EXECUTIVE DIRECTOR-2


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Branch network

We are the national Bank of international standards and have made our presence

felt globally by virtue of our presence and sincere service to the customers.

At present, the Bank is having more than 2900 brances, 43 regional offices and

10 Zonal offices scattered all over the length and breadth of the country. The

details viz. address contact number etc. of these branches/offices are available on

our website.

As on 01.04.2009, the Bank has a total staff strength of 35819 out of which 13349

are executives & officers, 14786 are clerical staff and 7684 are subordinate staff

including part time sweepers.

As on 31st March 2009, the bank have 2926

branches in India.

Metropolitan Branches 637Urban Branches 540

Overseas OperationsDomestic Operations


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Semi Urban 649Rural 1100

Total 2926

Extention Counters : 54

The Bank has opened specialized Branches /offices such as, Retail Loan factory

,SME loan factory, Treasury Operations, asset recovery,Small Scale industries

,and Agriculture Finance,etc. The Bank envisages to roll out CBS (Core Banking

Solution) in all the branches in domestic operation and back office function of all

the branches shall be taken up by Regional Back Offices and City Back Offices.

Majority of the branches would be converted into sales and service unit in tehdays to come at present organizational set-up of the Bank consists of three-tier

administration over branches /offices. The Bank has made concerted efforts with

a view to exploit the business potential of different segments of economy.

Metropolitan

Branches, 637,

35%

Urban

Branches, 540,

30%

Rural

Brtanches, 649,

35%Metropolitan Branches

Urban Branches

Rural Brtanches


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The overseas network of our Bank has made its presence felt in 25 countries. Our

International foot prints are spread around the globe with concrete grip and we

are further consolidating our position.

Banks Subsidiary/Associates

Bank has its susidiaries encompassing the globe conquering the local and the

global markets. There are umpteen number of subsidiaries and joint ventures for

meeting the needs of the market within the country region. And apart from that

the Bank run intenational operations via several mediums.

Domestic operations

International Operations

Domestic Operations

Subsidiaries Joint Ventures

BOB

CARDS

Ltd.

BOBCAPITAL

Market Ltd.

Baroda Pioneer

Asset Management

Company

Baroda Legal

And GeneralLife Insurance

CompanyLtd.


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THE BANK IS SHORTLY OPENING OVERSEAS OPERATIONS IN Canada,Russia

& New Zealand.

International Operations

One Joint Ventures

Indo Zambia Bank

Ltd.In Zambia

Seven Subsidiaries

in Uganda,

Kenya,

Botswana,

Guyana,

Trinidad & Tobago,

Tanzania& Ghana

Three

Representativ

e Offices In

Malaysia,

Thailand

Branch Network in 14

countries viz. USA, UK, UAE,

Oman,

Bahrain, South Africa,

Seychelles, Belgium, Fizi ,

Bahamas, Mauritius, China,


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INDO-ZAMBIA Bank LTD.

Indo-Zambia Bank ltd. is a joint venture of three Banks,viz. Bank Of Baroda,Bank

of India & Central bank of India, and Government of Zambia. Each of the Indian

Banks hold 20% of the share capital, whereas Government of Zambia holds 40%of the share capital.

Regional Rural Banks(RRBs)

The Bank has sponsored 5 Regional Rural Banks which are as under:-

1. Baroda Uttar Pradesh Gramin Bank, Head Office, Raebareli2. Baroda Rajasthan Gramin Bank,Head Office, Ajmer3. Baroda Gujarat Gramin , Head Office, Bharuch4. Nainital Almorah Kshetriya Gramin Bank,Head Office,Haldwani5.Jhabua-Dhar Kshetriya Gramin Bank, Head Office, Jhabua.

Banks training and development system

The bank endeavours to ensure that there is no continuous development and

acquisition of knowledge and upgradation of skills by its manpower. We are

catering to the need of skill gap of our staff members through various trainigcentres. The bank has been striving through its training system to update and

upgrade the knowledge and hone the skills of employees for achieving corporate

goals of the bank.


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The training activities are multi-directional. They include in-house training,

training at national level at national level institutions, training abroad and on-the-

job training for DROs and through rotation of assignment /duties, etc.

To train and update the update the staff members on IT related function, wehave a full fledged training institute BOBIIT at Gandhinagar at which was

established to meet exclusively the Banks IT training needs.

The structure of our training system is as

under:

SSStaff college,Allahabad(Apex traininginstitute)

Baroda institute for ITTraining & Development,Baroda.(Specialised Trainingcentre)

Bank of Barodainstitute ofInformationtechnologyGandhinagar(specialisedTraining Centre)

Twelve TrainingCentres Spreadthroughout thecountry. These arelocated atBaroda,Bareilly,Bhopal,Chennai,


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Besides ,the inhouse trianing infrastructure, the officer employees are exposed in

advance learning by sponsoring to external trainig institutes,management schools

both in India and abroad.

Service conditions

The service conditions of Officers are governed by the Bank of Baroda Officers

Service Regulations-1979(BOBOSR-1979)

Appointments

All appointments in the officers cadre are made in terms of the Officers Service

Regulations by the Competent Authority and the Government guidelines issued


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from time to time including guidelines on reservation for SC/ST/OBC/Ex-

servicemen/Physically challenged,etc.

Probation

The period of probation for different category of officer is as follows

Category of Officers Period of probationDirectly appointed to the junior

Management Grade/Scale I

Two years

An employee of the Bank promoted asan Officer in the Junior ManagementGrade/Scale I

One year

An Officer appointed to any Gradeother than Junior Management Grade

Such period as may be decided bythe Bank

Provided that the competent Authority may, in the case of any Officer,reduce the

period of probation or dispense with Probation.

Confirmation

In terms of the Officers Service Regulations, an Officer shall be confirmed in the

services of the Bank if, in the opinion of the Competent Authority, the officer has

satisfactorily completed his period of probation. The period of probation isextended if a DRO remains on the loss of pay or on unauthorised absence or his

performance is not found satisfactory.


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Promotion and career growth

The present promotion policy has been framed with the objective to make it

responsiveto the needs of teh Bank as also the aspirations of Officers cadre uptoSMG/S-IV. The details are as under:-

CHANNELS & ELIGIBILITY FOR PROMOTION FOR OFFICERS

PROMOTION FORM CHANNELS ELIGIBILITYJMG/S-I to MMG/S-II Fast track 4 years of satisfactory

service & averageperformance score of80 for the last 3 years

Normal 7 years of satisfactoryservice

MMG/S-II to MMG/S-III Fast track 3 years of satisfactoryservice & averagepermonce score of 80for the 3 last years


MMG/S-III to SMG/S-IV Fast track 3 years of satisfactoryservice & averageperformance score of80 for the 3 last years


SMG/S-IV to SMG/S-V Normal 3 years of satisfactory

serviceSMG/S-V to TEG/S-VI Normal 2 years of satisfactory

serviceTEG/S-VI to TEG/S-VII Normal 3 years of satisfactory

service


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Transfer

Every officer is liable for transfer to any Branch/Office of the Bank Of India. The

Bank has a Transfer policy for generalist Officers upto MMG/s-III. The transfers

can be at the request of an officer as well as at Banks instance after taking into

consideration the business imperatives and administrative requirement. Transfers

of officers in the Bank are administratively necessary in the organizations interest

as also in the interest of the individual growth of the Officer himself.

The transfer per se gives opportunity to an officer to have hands on exposure to

work in different geographical areas and work culture which broadens and

sharpens the working knowledge of an individual Officer.

Age of retirement

In terms of the present Regulations of the Bank , age of retirement of an Officer

shall be 60years.

Resignation

In terms of the Banks Officers Service regulations, an Officer shall not leave or

discontinue his service in the Bank without his giving a notice of three months in

writing to the competent authority of his intentions to leave or discontinue hisservices or resign.


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Selection of officers for regular posting at

Banks overseas branches/offices as also

trainee officersThe Bank has a significant presence in 25 foreign countries with 80

branches/offices(including 3 representative Offices, 1 joint venture)in more

countries in order to acheive organic growth abroad.

In order to realize the Banks ambitious goals of reaping rich dividends from rich

dividends from each of these foreign establishments by putting in place the best

talent, officers are sent on foreign assignment. This is viewed by officers as asource of motivation and incentive for outstanding performance ,sincerity and

devotion.

Regular postingmeans posting the officers from india on foreignassignment at any of the branches / offices / subsidiaries / joint ventures etc. of

the bank abroad on a regular basis, generally for -3- years.

India Based Trainee Officermeans Officers posted to the Banks foreignestablishment for the purpose of training /grooming relating to overseas

functions/activities. Their tenure is for -2- years.

Grades & Scales of pay

Officers in the nationalized Banks have been categorized into four grades and

Seven scales. The four grades show the broad levels of responsibility in the


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officers cadre. The Officers in Top Executive Grade are entrusted mainly with

the responsibility of policy making, review and control functions etc. Some of

them are posted as Zonal and Regional heads. These officers also hold

responsibility for functional areas in the Bank, e.g. Credit, International Banking,

Planning & Development, HR, etc.

At Senior Management level, the Officer may hold charge of a very Large and

Exceptionally Large Branch or they may also hold the position of Regional or Dy.

Regional Head or give support to the Top Management.

Officers at the Middle Management level head medium and large branches or

give support to the officers in Top /Senior Management Grade. The officers at

the Junior Management level may work as managers of small branches or secondline officers in branches and other offices of the bank.

Depending upon the requirements , the bank also appoint specialist officers like

IT officers,HRM officers,Security officers,Economists,Law officers,Hindi

officers,Engineers ,etc.

This elephantine structured,well established,pool of intelligensia organization is

also under the claws of ATTRITION.........and it being somewhat a concept of

significance to the organization,when blown out of proportion it needs to be

checked with all appropriate measures being take before things go out of

controllable stage. To know the psyche and analyse the situation of young

employees here at Bank of Baroda at lucknow branches,an inhouse survey was

conducted as a part of this project,which involved ::--

a question answer session with the employees ,

recording their responses on the sheets,

Then an analysis of those responses.


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The survey was carried out in the branches of Bank of Baroda in lucknow,after

obtaining the consent from the Human Resource department. The chief mangers

of the respective branches and the staff therein lent their handful of support and

co operation which actually have made the results very genuine and reliable.

CERTAIN REASONS WERE IDENTIFIED BEHIND THESE EMPLOYEES TAKING UP

THE JOB:

There was a major observation made which reflected that the recruitments in these

Branches have happened via Direct examination.

SALARY

PACKAGE

13% PROXIMITY TO

HOME PLACE

6%

GAIN

EXPERIENCE

13%

CHANCES OF

CAREER

PROGRESSION

31%

RECESSION

6%

ON

COMPENSATIO

N

6%

LIVELIHOOD

REASONS

25%

SALARY PACKAGE

PROXIMITY TO HOME

PLACE

JOB CONTENT

GAIN EXPERIENCE

CHANCES OF CAREER

PROGRESSION

RECESSION


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96% young employees have entered the bank as DRO(Directly Recruited Officers) so it can be deciphered

to some extent that the job they took up can not be for gaining experience .,they must be seeking some

immediate financial security which BOB provided them,so a sense of loyalty is inulcated right from the

beginning.

A major chunk finds the atmosphere quite congenial and supportive of their job profile

For,employees working in Bank of Baroda for more than five years are quite satisfied with the

organisation. They have a peer group ,they have developed a strong sense of LOYALTY for the

organization,they do not seek any specific thing in the organization or from the management.

DIRECT

RECRUITMENT,

25, 96%

CAMPUS

SELECTION, 0,

0%

ON

COMPENSATIO

N, 1, 4%

DIRECT RECRUITMENT

CAMPUS SELECTION

ON COMPENSATION


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Learnings

Attrition is basically a probable problem with the young lot.

Once a person makes up his /her mind to quit a place then it takes almost

a miracle to get him/her back into the track.

An unsatiated and unhappy employee works in and for the organization

just with half his heart and capacity.


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management of attrition of young employees in

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