INTRODUCTION TO HUMAN RESOURCE MANAGEMENT AND AND ENVIRONMENT INTRODUCTION
Human Resource Management (HRM) is a relatively new approach to managing people in any organisation. People are considered the key resource in this approach. it is concerned with the people dimension in management of an organisation. Since an organisation is a body of people their ac!uisition development of skill skills s motiv motivati ation on for for high higher er leve levels ls of attai attainm nmen ents ts as well well as ensu ensuri ring ng main mainten tenan ance ce of their their level level of commitment are all significant activities. "hese activities fall in the domain of HRM. Human Resource Management is a process which consists of four main activities namely ac!uisition development motivation as well as maintenance of human resources. Scott, Clothier and Spriegel have defined Human Resource Management as that branch of management
which is responsible on a staff basis for concentrating on those aspects of operations which are primarily concerned with the relationship of management to employees and employees to employees and with the development of the individual and the group. Human Resource Management is responsible for maintaining good human relations in the organisation. #t is also concerned with development of individuals and achieving integration of goals of the organisation and those of the individuals. $orth%ott considers human resource management as an e&tension of general management that of prompting and stimulating every employee to make his fullest contribution to the purpose of a business. Human resource management is not something that could be separated from the basic managerial function. #t is a ma'or component of the broader managerial function. rench rench endel endell l define definess *Human *Human resourc resourcee manage managemen mentt as the recruit recruitme ment nt selecti selection on develo developme pment nt utilisation compensation and motivation of human resources by the organisation. According to Edwin ! "lippo *Human resource management is the planning organising directing and
controlling controlling of the procurement procurement development development resources to the end that individual individual and societal ob'ectives are accomplishe accomplished d‖. "his definition reveals that human resource (HR) management management is that aspect of management management which deals with the planning organising directing and controlling the personnel functions of the enterprise.
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NATURE O" HUMAN RESOURCE MANAGEMENT "he emergence of human resource management can be attributed to the writings of the human relationists who attached great significance to the human factor. #awrence Apple$ re%ar&ed ' Manage Managemen mentt is person personnel nel administr administratio ation n‖. "his "his view view is partial partially ly true true as
management is concerned with the efficient and effective use of both human as well as non+human resources. "hus human resource management is only a part of the management process. ,t the same time it must be recognised that human resource management is inherent in the process of management. "his function is performed by all the managers. , manager to get the best of his people must undertake the basic responsibility of selecting people who will work under him and to help develop motivate and guide them. However he can take the help of the specialised services of the personnel department in discharging this responsibility. "he nature of the human resource management has been highlighted in its following features.
Human n reso resour urce ce mana manage geme ment nt is inhe inheren rentt in the the proc proces esss of Inher Inheren entt (art (art o) Manag Manage%e e%ent nt - Huma
management. "his function is performed by all the managers throughout the organisation rather that by the personnel department only. #f a manager is to get the best of his people he must undertake the basic responsibility of selecting people who will work under him. /.
(er*a+i*e "nction - Human Resource Management is a pervasive function of management. #t is
performed by all managers at various levels in the organisation. #t is not a responsibility that a manager can leave completely to someone else. However he may secure advice and help in managing people from e&perts who have special competence in personnel management and industrial relations. 0.
a+ic to all "nctional Area+ - Human Resource Management permeates all the functional area of
management such as production management financial management and marketing management. "hat is every manager from top to bottom working in any department has to perform the personnel functions. 1.
(eople Centered - Human Resource Management is people centered and is relevant in all types of
organisations. #t is concerned with all categories of personnel from top to the bottom of the organisation. "he broad classification of personnel in an industrial enterprise may be as follows - (i) 2lue+collar workers (i.e. those working on machines and engaged in loading unloading etc.) and white+collar workers (i.e. clerical employees) (ii) Managerial and non+managerial personnel (iii) Professionals (such as %hartered ,ccountant %ompany Secretary 3awyer etc.) and non+professional personnel. 4.
(er+onne (er+onnell Acti*iti Acti*itie+ e+ or "nction "nction++ - Human Human Resour Resource ce Managem Management ent involv involves es several several functi functions ons
concerned with the management of people at work. #t includes manpower planning employment placement
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training appraisal and compensation of employees. or the performance of these activities efficiently a separate department known as Personnel 5epartment is created in most of the organisations. 6.
Contino+ (roce++ - Human Resource Management is not a one shot7 function. #t must be performed
continuously if the organisational ob'ectives are to be achieved a chieved smoothly. 8.
a+ed on H%an Relation+ - Human Resource Management is concerned with the motivation of
human resources in the organisation. "he human beings can7t be dealt with like physical factors of production. 9very person has different needs perceptions and e&pectations. "he managers should give due attention to these factors. "hey re!uire human relations skills to deal with the people at work. Human relations skills are also re!uired in training performance appraisal transfer and promotion of subordinates.
(ERSONNE# MANAGEMENT MANAGEMENT VS HUMAN RESOURCE MANAGEMENT %ontemporary Human Resource Management as a part and parcel of management function underscores strategic approach to management in areas of ac!uisition motivation and management of people at work. Human Resource Management derives its origin from the practices of the earlier personnel management which which assiste assisted d in the managem management ent of people people in an organi organisati sation on setup. setup. Human Human Resour Resource ce Managem Management ent leverages setting up the systems and procedures for ensuring efficiency controlling and providing e!uality of opportunities for all working for the organisation. Huma Human n Reso Resour urce ce Mana Manage geme ment nt (HRM (HRM)) diff differ erss from from Pers Person onne nell Mana Manage geme ment nt (PM) (PM) both both in scope scope and and orientation. HRM views people as an important source or asset to be used for the benefit of organisations employees and society. #t is emerging as a distinct philosophy of management aiming at policies that promote mutuality+mutual goals mutual respect mutual rewards and mutual responsibilities. "he belief is that policies of mutuality will elicit commitment commitment which in turn will yield both better economic economic performance performance and greater Human Resource 5evelopment (HR5). "hough a distinct philosophy HRM cannot be treated in isola tion. #t is being integrated into the overall strategic management of businesses. urther HRM represents r epresents the latest term t erm in the evolution of the sub'ect. "here are several similarities between Human Resource Management (HRM) and Personnel Management (PM) (a) 2oth models emphasise the importance of integrating personnel:HRM practices with organisational goals. (b) 2oth models vest Personnel:HRM firmly in line management. (c) Human Resource Management (HRM) (HRM) and Person Personnel nel Manage Managemen mentt (PM) (PM) both both models models emphasi emphasise se the import importanc ancee of indivi individua duals ls fully fully developing their abilities for their own personal satisfaction to make their best contribution to organisational success. (d) 2oth models identify placing the right people into the right 'obs as an important means of integrating personnel:HRM practice with organisational goals. 3
O.ECTIVES O" HUMAN RESOURCE MANAGEMENT According to Scott, Clothier and Spriegal *"he ob'ectives of Human Resource Management in an
organi organisati sation on is to obtain obtain ma&imu ma&imum m indivi individu dual al develo developme pment nt desirab desirable le workin working g relatio relationsh nships ips betwee between n employers and employees and employees and employees and to affect the moulding of human resources as contrasted contrasted with physical physical resource resourcess‖ . "he basic ob'ective of human resource management is to contribute to the realisation of the organisational goals. However the specific ob'ectives of human resource management are as follows (i) "o ensure effective utilisation of human resources all other organisational resources will be efficiently utilised by the human resources. (ii) "o establish and maintain an ade!uate organisational structure of relationship among all the members of an organisation by dividing of organisation tasks into functions positions and 'obs and by defining clearly the responsibility accountability authority for each 'ob and its relation with other 'obs in the organisation. (iii) "o generate ma&imum development of human resources within the organisation by offering opportunities for advancement to employees through training and education. (iv) "o ensure respect for human beings by providing various services and welfare facilities to the personnel. (v) "o ensure reconciliation of individual:group goals with those of the organisation in such a manner that the personnel feel a sense of commitment and loyalty towards it. (vi) "o identify and satisfy satisf y the needs of individuals by b y offering various monetary and non+monetary rewards.
#n order to achieve the above ob'ectives human resource management undertakes the following activities (i) (i)
Huma Human n Resou Resourc rcee Planni Planning ng i.e. i.e. dete determ rmin inin ing g the numb number er and and kinds kinds of perso personn nnel el re!ui re!uire red d to fill
(ii) (ii) (iii) (iii) (iv) (iv)
various positions in the organisation. Recrui Recruitme tment nt selecti selection on and placem placement ent of person personnel nel i.e. i.e. employ employmen mentt funct function ion.. "rain "raining ing and and develo developme pment nt of employ employees ees for for their their effici efficient ent perfo performa rmance nce and and growth growth.. ,pprais ,ppraisal al of perfo performan rmance ce of emplo employee yeess and takin taking g correcti corrective ve steps steps such such as trans transfer fer from from one 'ob 'ob to
another.
(v) (vi) (vi)
Motiva Motivatio tion n of workfo workforce rce by prov providi iding ng fina financia nciall incen incentiv tives es and and aven avenues ues of prom promoti otion. on. Remune Remunerati ration on of emplo employee yees. s. "he "he employ employees ees must must be given given suffic sufficient ient wage wagess and fringe fringe benef benefits its to
(vii (vii))
achieve higher standard of living and to motivate them to show higher productivity. Soci Social al secu securit rity y and and welfa welfare re of of empl employ oyees ees.. 4
E#EMENTS O" HUMAN RESOURCE MANAGEMNET HRM is concern with People dimension of the organisation. #n order to achieve organisational ob'ectives it is important to ac!uire HR develop their skills motivate them for high performance and ensure that they continue to maintain their commitment and loyalty towards the organisation. "he scope of HRM lies in the fact that that it involves an integrated use of training and development organisational development and career development to improve individual group and organisational effectiveness. "he different elements HRM are. Training and De*elop%entHRM involves identification of individual potentialities and helping in the development of key competencies through planned learning process. "he competencies are to be developed to enable individuals to perform current as well as future 'obs. /. Organi+ational de*elop%ent "his element assures healthy inter and intra+unit relationships. #t helps work groups in initiating and managing change. 0. Career De*elop%ent#t is assuring an alignment of individual career planning and organisational career management. #t is a process of achieving an optimal match of individual and organisational needs. 1. .o/ De+ign"his element defines tasks authority and systems and also ensures integration of individual 'obs across the unit. 4. H%an Re+orce (lanning#t involves determine the organisation HR needs Strategies and philosophies. 6. (er)or%ance Manage%ent S$+te%+ "he Performance management ensures linkage between individual and organisational goals. #t aims at ensuring that every individuals efforts and actions support the organisational goals. 8. Selection and Sta))ing HR is a process of matching people and their career needs and capabilities with the 'obs and career paths. ;. Co%pen+ation and ene)it+ Here the focus is on assuring fair consistent and e!uitable compensation and benefits to the work force. <. E%plo$ee A++i+tance"he focus of employee assistance is to provide problem solving:counselling to individual employees. "he purpose is to help employees in overcoming personal and 'ob related problems. =. Union #a/or Relation+"his variable assures healthy union organisation relationship. #t aims at creating on environment of industrial peace and harmony. . HR re+earch and In)or%ation S$+te%+ and Adit "his element ensures a reliable and fool proof HR information base. #t is not only evaluates personal policies and programmes but also highlights the need and areas of change. 5
THE SCO(E O" HUMAN RESOURCE MANAGEMENT "he scope of human resource management outlined below includes an outline of transformation and development issues tentative generic skills re!uired in performing HRM roles as well as the roles of a human resource management practitioner (line management and HRM professionals). ith regard to the latter the assumption is made that roles are inter+linked and interdependent even though these relationships may not be e&pressly stated in each case. Transformation and development issues
>nowledge management which entails accumulating ? capturing
>nowledge in large organisations for future application ? use (organisation memory)
Reconciliation management
ork creation as opposed to 'ob creation
Manage the transfer of HRM functions and skills to line management
Marketing of HRM to line management
5evelopment of conte&tual approaches to HRM
Multi+skilling and :or multi+tasking
#ncreased societal responsibility
Managing people in virtual work environments
ocus on deliverables rather than doable
5evelop additional means of assessing HRM
,ppreciation and assessment of intellectual capital
"ake HRM from a business partner to a business itself : Managing HRM as a business unit
,dviser : consultant to line management 6
Supportive generic skills
"his is not intended to be final outline of human resource skills but the following have emerged during the process as important skills for human resource practitioner to possess. "hese are
Pro'ect management
%onsulting skills
9ntrepreneurship
Self management
%ommunication skills
acilitation skills
Presentation skills
Skills for transforming groups into self+directed mutually controlled high performing work teams
"rans+cultural skills
Mediation ? arbitration skills
inancial skills
Problem+solving
5iagnostic skills
Core roles in Human Resource Management Te core roles of uman resource management are grouped !elo" into four categories# Te titles of te
clusters are tentative$ and are open for comment#
P3,$$#$@ ,$5 AR@,$#S#$@ AR AR>
P9AP39 ,$5 HRM
Strategic perspective %
Arganisation design
%hange management
%orporate ellness management
P9AP39 ,%BC#S#"#A$ ,$5 59D93APM9$"
Staffing the organisation
"raining ? development
%areer Management
Performance Management
#ndustrial relations
,5M#$#S"R,"#A$ A PA3#%#9S PRA@R,MM9S ? PR,%"#%9S
%ompensation management
#nformation management
,dministrative management
inancial management
"UNCTIONS O" HUMAN RESOURCE MANAGEMENT! "he main functions of human resource management are classified into two categories0a1 Managerial "nction+ and 0/1 Operati*e "nction+ 0a1 Managerial "nction+
ollowing are the managerial functions of Human Resources Management. 2!
(lanning- "he planning function of human resource department pertains to the steps taken in
determining in advance personnel re!uirements personnel programmes policies etc. ,fter determining how &
many and what type of people are re!uired a personnel manager has to devise ways and means to motivate them. 3!
Organi+ation- Cnder organisation the human resource manager has to organise the operative
functions by designing structure of relationship among 'obs personnel and physical factors in such a way so as to have ma&imum contribution towards organisational ob'ectives. #n this way a personnel manager performs following functions(a)
preparation of task forceE
(b)
allocation of work to individualsE
(c)
integration of the efforts of the task forceE
(d)
coordination of work of individual with that of the department.
0.
Directing- 5irecting is concerned with initiation of organised action and stimulating the people to
work. "he personnel manager directs the activities of people of the organisation to get its function performed properly. , personnel manager guides and motivates the staff of the organisation to follow the path laid down in advance. 1.
Controlling- #t provides basic data for establishing standards makes 'ob analysis and performance
appraisal etc. ,ll these techni!ues assist in effective control of the !ualities time and efforts of workers.
0/1 Operati*e "nction+ - "he following are the Aperative unctions of Human Resource Management 2!
(rocre%ent o) (er+onnel - #t is concerned with the obtaining of the proper kind and number of
personnel necessary to accomplish organisation goals. #t deals specifically with such sub'ects as the determination of manpower re!uirements their recruitment selecting placement and orientation etc. /.
De*elop%ent o) (er+onnel - 5evelopment has to do with the increase through training skill that is
necessary for proper 'ob performance. #n this process various techni!ues of training are used to develop the employees. raming a sound promotion policy determination of the basis of promotion and making performance appraisal are the elements of personnel development function. 4!
Co%pen+ation to (er+onnel - %ompensation means determination of ade!uate and e!uitable
remuneration of personnel for their contribution to organisation ob'ectives. "o determine the monetary compensation for various 'obs is one of the most difficult and important function of the personnel management. , number of decisions are taken into the function viF. 'ob+evaluation remuneration policy
'
inventive and premium plans bonus policy and co+partnership etc. #t also assists the organisation for adopting the suitable wages and salaries policy and payment of wages and salaries in right time. 5!
Maintaining Good Ind+trial Relation- Human Resource Management covers a wide field. #t is
intended to reduce strifies promote industrial peace provide fair deal to workers and establish industrial democracy. #t the personnel manager is unable to make harmonious relations between management and labour industrial unrest will take place and millions of man+days will be lost. #f labour management relations are not good the moral and physical condition of the employee will suffer and it will be a loss to an organisation vis+ a+visa nation. Hence the personnel manager must create harmonious relations with the help of sufficient communication system and co+partnership. 6!
Record 7eeping- #n record+keeping the personnel manager collects and maintains information
concerned with the staff of the organisation. #t is essential for every organisation because it assists the management in decision making such as in promotions. 8!
(er+onnel (lanning and E*alation - Cnder this system different type of activities are evaluated such
as evaluation of performance personnel policy of an organisation and its practices personnel audit morale survey and performance appraisal etc.
IM(ORTANCE O" HUMAN RESOURCE MANAGEMENT Human Resource Management has a place of great importance. ,ccording to Peter . 5rucker *"he proper or improper use of the different factors of production depend on the wishes of the human resources. Hence besides other resources human resources need more development. Human resources can increase cooperation but it needs proper and efficient management to guide it‖. #mportance of personnel management is in reality the importance of labour functions of personnel department which are indispensable to the management activity itself. 2ecause of the following reasons human resource management holds a place of importance.
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. #t helps management in the preparation adoption and continuing evolution of personnel programmes and policies. /. #t supplies skilled workers through scientific selection process. 0. #t ensures ma&imum benefit out of the e&penditure on training and development and appreciates the human assets. 1. #t prepares workers according to the changing needs of industry and environment. 4. #t motivates workers and upgrades them so as to enable them to accomplish the organisation goals. 6. "hrough innovation and e&perimentation in the fields of personnel it helps in reducing casts and helps in increasing productivity. 8. #t contributes a lot in restoring the industrial harmony and healthy employer+employee relations. ;. #t establishes mechanism for the administration of personnel services that are delegated to the personnel department. "hus the role of human resource management is very important in an organisation and it should not be undermined especially in large scale enterprises. #t is the key to the whole organisation and related to all other activities of the management i.e. marketing production finance etc. Human Resource Management is concerned with the managing people as an organiFational resources rather than as factors of production. #t involves a system to be followed in business firm to recruit select hire train and develop human assets. #t is concerned with the people dimension of an organiFation. "he attainment of organiFational ob'ectives depends to a great e&tent on the way in which people are recruited developed and utiliFed by the management. "herefore proper co+ordination of human efforts and effective utilisation of human and others material resources is necessary.
#egac$ o) HRM "he legacy of HRM needs to be analysed from two different perspectives to get a better insight into its nature. "hese are (a) the estern conte&t (b) the #ndian conte&t. (a) estern %onte&t - "he origin of HRM as is known today date back to ancient times. Ane find a reference of HR policy as early as 1== 2.%. when the %haldeans had a sound incentive wage plan. ,ll that has changed over the years is the status of the employees their roles and relationship+inter personal and inter+group. "he status of labour prior to industrial revolution was e&tremely low and the relationships were characterised by slavery seldom and guild system. "he slaves performed manual tasks to agricultural military and clerical 11
responsibilities. "he efficiency levels were low due to over+dependence on negative incentives and negligence of positive incentives. "he slavery structure was replaced by seldom were neither slaves nor hired labourers. "he structure was related to rural and agrarian pursuits. orkers were offered positive incentives which resulted in enhanced productivity and reduced need for supervision. Seldom disappeared during Middle ,ges with growth in manufacturing and commercial enterprises. #t was replaced by the @uild System. "he guild system involved the owners the 'ourneyman and the apprentice. #t was here that real HRM started. Ane noticed proper selection procedures being adopted workers being imparted training and collective bargaining being adopted to settle issues pertaining to wages and working conditions. ith the advent of #ndustrial Revolution the guild system disappeared. "he doctrine of laisser+faire was advocated and the cottage system got transformed to factory system leading to enhanced specialisation. 2ut this period was dominated by many unhealthy practices like unhealthy work environment long working hours increased fatigue rate monotony strains likelihood of accidents and poor work relationship. Progressive entrepreneurs like Awen believed that healthy work environment could be effectively used to improve productivity. 2ut his opinion faced severe opposition. , ma'or change was noticed in personnel practices after the orld ar #. "he modern HRM started in
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led to multiplicity of personnel 'obs instead of a single stereotyped task. "he personnel or human resource manager became a part of top management. #n todays world stress is on scientific selection training and development. "here is an increasing emphasis on interrelationship between the leader follower and the environment. ,ttempts are also on to provide scope to an individuals personal dignity status and sense of achievement. "he concern is increasing profits through people. HRM in #ndia is centuries old. "he first reference of HRM was provided by >autilya as early as 1th century 2.%. in his book ,rthashastra7. "he work environment had logical procedures and principles in respect of labour organisation such as Shreni7ages were paid in terms of !uantity and !uality of work. orkers were punished for unnecessary delay or spoiling of work. >autilyas contribution was based on Shamrastra %oncepts like 'ob description !ualifications for 'obs selection procedures e&ecutive development incentive system and performance appraisal were very effectively analysed and e&plained. "he guild system prevailed in the #ndian economy too. #t was based on Darnashram7 or caste system and resulted in division of labour accordingly. #n the course of time professions became hereditary. rom 1th century 2.%. to the latter half of =th century 2.%. the relationship of employer+employee was marked with 'ustice and e!uity. "he HRM e&perienced full in mediaeval #ndia due to foreign aggressions over the ne&t 8== years. 5uring the Mughal rule >arkhanas7 were established but the artisans and craftsmen were poor and lived on starvation level and the productivity was low. 5uring the 2ritish rule the work environment was appalling and full of inhuman cruelties. "his continued till ;; when the actory ,ct was enacted. "his ,ct provided for (i) weekly holidays (ii) fi&ation of working hours (iii) fi&ation of minimum age for children at 8 years sub'ect to a ma&imum working period of 8 hours a day. #n ;<= the first labour organisation was formed and was known as 2ombay Mill Hands ,ssociation. "his association started working for improving the work environment and for getting the workers their rightful dues. "he success of this association ew amongst these were Printers Cnion %alcutta (<=4) Postal Cnion 2ombay (<=8) and Madras 3abour Cnion (<;).
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"he union movement was very weak till the early thirties. 2ut the situation showed marked improvement 4 years before and after the Second orld ar. ,fter independence the activities of the personnel department have multiplied. Human resource department is e&pected to take care of welfare activities employment safety training wage and salary administration promotions transfers lay+off improvement in living and working conditions health services safety measurers prevention and settlement of disputes etc.
"UTURE CHA##ENGES E"ORE THE MANAGERS
2ecause of continuous changing socio+economic technological and political conditions the human resource managers of the future shall have to face more problems in the management of labour. "he human resource managers of today may find themselves obsolete in the future due to changes in environment if they do not update themselves some of the important challenges which might be faced by the managers in the management of people in business and industry are discussed below -
2!
Increa+ing Si9e o) :or&)orce - "he siFe of organisations is increasing. , large number of
multinational organisations have grown over the years. "he number of people working in the organisation has also increased. "he management of increased workforce might create new problems and challenges as the workers are becoming more conscious of their rights. 3!
Increa+e in Edcation #e*el - "he governments of various countries are taking steps to eradicate
illiteracy and increase the education level of their citiFens. 9ducated consumers and workers will create very tough task for the future managers. 4!
Technological Ad*ance+ - ith the changes coming in the wake of advanced technology new 'obs are
created and many old 'obs become redundant. "here is a general apprehension of immediate unemployment. #n the competitive world of today industry cannot hope to survive for long with old technology. "he problem of unemployment resulting from modernisation will be solved by properly assessing manpower needs and training of redundant employees in alternate skills. 5!
Change+ in (olitical En*iron%ent - "here may be greater
@overnment7s interference in business to safeguard the interests of workers consumers and the public at large. @overnment7s participation in trade commerce and industry will also pose many challenges before management. "he @overnment may restrict the scope of private sector in certain areas in public interest. #t 14
does not mean chances of co+operation between the @overnment and private sector are ruled out. #n fact there will be more and more 'oint sector enterprises. 6!
Increa+ing A+piration+ o) E%plo$ee+ - %onsiderable changes have been noted in the worker of today
in comparison to his counterpart of <4=s. "he workers are becoming more aware of their higher level needs and this awareness would intensify further in the future workers. 8!
Changing (+$cho+ocial S$+te% - #n future organisations will be re!uired to make use of advanced
technology in accomplishing their goals while satisfying human needs. #n the traditional bureaucratic model the organisations were designed to achieve technical functions with a little consideration given to the psychosocial system. 2ut future management would be re!uired to ensure effective participation of lower levels in the management of the organisation system. ;!
Co%pteri+ed In)or%ation S$+te% - #n the past the automation of manufacturing processes had a
ma'or effect upon the systems of production storage handling and packaging etc. More recently there has been and in the future there will be the impact of revolutionary computerised information system on management. "his revolutionary development would cover two primary areas of personnel management which are as follows (a)
"he use of electronic computers for the collection and processing of data and
(b)
"he direct application of computers in the managerial decision making process.
Mo/ilit$ o) (ro)e++ional (er+onnel - Arganisations will e&pand the use of *boundary agents ‖ whose
primary function will be achieving coordination with the environment. Ane interesting fact will be an increase in the mobility of various managerial and professional personnel between organisations. ,s individuals develop greater technical and professional e&pertise their services will be in greater demand by other organisations in the environment. =!
Change+ in #egal En*iron%ent - Many changes are taking place in the legal framework within which
the industrial relations systems in the country are now functioning. #t is the duty of the human resource or personnel e&ecutive to be aware of these changes and to bring about necessary ad'ustments within the organisations so that greater utilisation of human resources can be achieved. "his indeed is and would remain a ma'or challenge for the personnel e&ecutive. 2>! Manage%ent o) H%an Relation+ - An the industrial relations7 front things are not showing much
improvement even after so many efforts by the government in this direction. "hough a large number of factors are responsible for industrial unrest but a very significant cause is the growth of multi unions in industrial comple&es having different political affiliations. Cnder the present conditions it appears that inter+union rivalries would grow more in the coming years and might create more problems in the industry. 15
Management of human relations in the future will be more complicated than it is today. Many of the new generation of employees will be more difficult to motivate than their predecessors. "his will be in part the result of a change in value systems coupled with rising educational levels. @reater skepticism concerning large organisations and less reverence for authority figures will be more common. Cn!uestioning acceptance of rules and regulations will be less likely.
New Role o) H%an Re+orce Manage%ent Human Resource Management in the $ew Millenium7 has undergone a great revolution by !uestioning the accepted practices and re+inventing the organisations as well as structures. Many traditional practices have been thrown out. ,s an e&le it can be s een that hierarchies are vanishing and there is greater emphasis on flat organisations. #t means a great deal of specialisation and skills. #t also means upgrading the norms and standards of work as well as performance. "he new role of human resource management is much more strategic than before. Some of the new directions of the role of HRM can be summed up as follows.
A "acilitator o) Change - "o carry people through upheaval re!uires the true management of human
resource. /.
An Integrated Approach to Manage%ent- Rather than being an isolated function human resource is
regarded as a core activity one which shapes a company7s values. #n particular this can have an impact on customer service. 0! A Mediator - 9stablishing and balancing the new and emerging aspirations and re!uirements of the company and the individual. "hese changes which are taking place involve more commitment of the organisation to the development of people by improving performance and cutting costs. ,s a result of this the duration of tenure which was traditionally long standing is now limited future is becoming less certain management opportunities are self+ determined and motivational factors are more concerned with enhancing future employability rather than loyalty to the company and at the same time the rewards are going up in terms of higher salaries. "he future creative careers will re!uire more involved approach to career development which will include (i)
Share employees with strategic partner organisations (customers of suppliers) in lieu of internal
moves. (ii)
9ncourage independence - 9mployees may go elsewhere for career development possibly to return in
a few years. (iii)
und+groups of employees to set+up as suppliers outside the organisation. 16
(iv)
9ncourage employees to think of themselves as a business and of the organisation7s various
departments as customers. (v)
9ncourage employees to develop customers outside the organisation.
(vi)
Help employees develop self+marketing networking and consultancy skills to enable them to search
out recognise or create new opportunities for both themselves and the organisation. (vii)
#dentify skilled individuals in other organisations who can contribute on a temporary pro'ect basis or
part+time. (viii)
Regularly e&pose employees to new people and ideas to stimulate innovation.
(i&)
2alance e&ternal recruitment at all levels against internal promotion to encourage open competition
*competitive tendering‖ for 'obs to discourage seeing positions as someone7s territory which causes self+ protective conformity. (&)
orster more cross+functional teamwork for self+development.
(&i)
9liminate the culture of valuing positions as career goals in favour of portraying a career as a
succession of bigger pro'ects achievements and new skills learned. "he concept of *position‖ is part of the outside static concept of the organisation. Positions are out. Processes and pro'ects are in. (&ii)
,bandon top+down performance appraisal in favour of self+appraisal based on internal customer
satisfaction surveys and assessing people as you would suppliers. (&iii)
Replace top+down assessment processes with self+assessment techni!ues and measure performance in
term of results.
"nction+ o) a H%an Re+orce Manager , human resource manager charged with fulfilling the ob'ectives of an organisation should be a leader with high intellectual powers a visionary and a philosopher who provides the initiative to shape the future in terms of leading the human beings in an organisation towards more prosperous and progressive policies.
1%
2!
H%an Re+orce Man a+ an Intellectal - "he basic skill in the human resource field as compared to
technologists or financial e&perts is the skill to communicate articulate understand and above all to be an e&pert when it comes to putting policies and agreements in black and white. "he personnel man7s skill lies in his command over the language. , personnel man has to deal with employees and he must possess the skills of conducting fruitful and systematic discussions and of communicating effectively. He should also be in a position to formulate principles and foresee the problems of the organisation. "his means that he would re!uire the mental ability to deal with his people in an intelligent manner as well as to understand what they are trying to say. 3!
H%an Re+orce Man a+ an Edcator - #t is not enough that a human resource man has command+
over the language which however remains his primary tool. He should be deeply interested in learning and also in achieving growth. 2asically human beings like to grow and realise their full potential. #n order to harmonise the growth of individuals with that of the organisation a personnel administrator must not only provide opportunities for his employees to learn get the re!uired training and assimilate new ideas but also he himself should be a teacher. , personnel man who simply pushes files and attends labour courts for conciliation purposes and other rituals of legal procedure for the settlement of industrial disputes is not a personnel administrator of the future. 4!
H%an Re+orce Man a+ a Di+cri%inator - , human resource administrator must have the capacity
to discriminate between right and wrong between that which is 'ust and un'ust and merit and non+merit. #n other words he should be a good 'udge when he sits on a selection board a fair person when he advises on disciplinary matters and a good observer of right conduct in an organisation. 5!
H%an Re+orce Man a+ an E?ecti*e - "he human resource man must e&ecute the decisions of the
management and its policies with speed accuracy and ob'ectivity. He has to streamline the office tone up the administration and set standards of performance. He has to coordinate the control functions in relation to the various other divisions and in doing so he should be in a position to bring unity of purpose and direction in the activities of the personnel department. He must ask relevant !uestions and not be merely involved in the office routine whereby the status !uo is maintained. He should have the in!uisitiveness to find out causes of delay tardy work and wasteful practices and should be keen to eliminate those activities from the personnel functions which have either outlived their utility or are not consistent with the ob'ectives and purposes of the organisation.
6!
H%an Re+orce Man a+ a #eader - 2eing basically concerned with people or groups of people and
being placed in the group dynamics of various political and social functions of an organisation a Human resource man must not shirk the role of leadership in an organisation. He by setting his own e&le and by working towards the ob'ectives of sound personnel management practices must inspire his people and 1&
motivate them towards better performance. He should resolve the conflicts of different groups and build up teamwork in the organisation. 8!
H%an Re+orce Man a+ a H%ani+t - 5eep faith in human values and empathy with human
problems especially in less developed countries are the sine !ua non for a Human resource man. He has to deal with people who toil at various levels and partake of their 'oys and sorrows. He must perform his functions with sensitivity and feeling. ;!
H%an Re+orce Man a+ a Vi+ionar$ - hile every leading function of an organisation must evolve
its vision of the future the primary responsibility for developing the social organisation towards purposive and progressive action fall on the personnel man. He should be a thinker who sets the pace for policy+making in an organisation in the area of human relations and should gradually work out new patterns of human relations management consistent with the needs of the organisation and the society. He must ponder on the social obligations of the enterprise especially if it is in the public sector where one has to work within the framework of social accountability. He should be in close touch with socio+economic changes in the country. He should be able to reasonably forecast future events and should constantly strive to meet the coming challenges.
Role and Challenge+ o) H%an Re+orce Manager
Human Resource (HR) 5epartment is established in every organisation under the charge of an e&ecutive known as Human Resource Manager. "his department plays an important role in the efficient management of human resources. "he human resource department gives assistance and provides service to all other departments on personnel matters. "hough personnel or human resource manager is a staff officer in relation to other departments of the enterprise he has a line authority to get orders e&ecuted within his department. "he human resource manager performs managerial functions like planning organising directing and controlling to manage his department. He has also to perform certain operative functions like recruitment selection training placement etc. which the other line managers may entrust to him. He is basically a manager whatever may be the nature of his operative functions. "he status of Human Resource Manager in an organisation depends upon the type of organisation structure.
Role o) H%an Re+orce Manager in an Organi+ation
#n most of the big enterprises human resource department is set up under the leadership of personnel manager who has specialised knowledge and skills. "he human resource manager performs managerial as well as 1'
operative functions. Since he is a manager he performs the basic functions of management like planning organising directing and controlling to manage his department. He has also to perform certain operative functions of recruitment selection training placement etc. which the problems to management the human resource managers attach highest priority to the settlement of industrial disputes than anything else. "he role of human resource management in industry is underlined by the comple& and dynamic nature of environment under which the modern large+scale industries function. "he impact of technology on organisation structure politicisation of workers7 unions and the growing consciousness of industrial employees about their rights and privileges have made the role of personnel management increasingly more important in industrial undertakings. "he task has also been facilitated by the greater recognition of the value of human resources in industry and application of human resource development (HR5) techni!ues by the enlightened managers in modern organisations.
HUMAN RESOURCE MANAGEMENT IN AN7ING What is a Bank? "he word bank is derived from the #talian banca which is derived from @erman
language and means bench. "he terms bankrupt and GbrokeG are similarly derived from banca rotta which refers to an out of business bank having its bench physically broken. Money lenders in $orthern #taly 2(
originally did business in open areas or big open rooms with each lender working from his own bench or table. "he essential function of a bank is to provide services related to the storing of deposits and the e&tending of credit. "he evolution of banking dates back to the earliest writing and continues in the present where a bank is a financial institution that provides banking and other financial services. %urrently the term bank is generally understood as an institution that holds a banking license. 2anking licenses are granted by financial supervision authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. "here are also f inancial institutions that provide certain banking services without meeting the legal definition of a bank a so called non+bank. 2anks are a subset of the financial services industry. Human resource management (HRM) has long been overlooked in the corporate sector in the country where a small section comprising mostly the multi+national companies was practicing the same. ith the growing realiFation of proper HRM in the corporate sector it has grown into an important activity. $ow the head of HRM is an important member of the senior teams of any thriving business. ,lthough the idea is new for many local businesses where entrepreneurs are at the beginning of the learning curve yet in reality the theme is getting support from the organiFed entrepreneurs. "he banking sector has grown from a few institutions primarily involved in deposit acceptance and trade finance into a comple& multi+player markets where large number of commercial banks financial institutions and specialiFed banks are operating with various products and activities. HRM ac&grond and (ractice+ .
"he banking has become a comple& activity within the financial market linked directly and indirectly with an over+all national growth and its impact as an integral part of regional segment of a global banking environment. ,lmost every bank and financial institution is involved in various functions in a days 'ob and thus re!uires a highly effective team and appropriate manpower to run the show. %orporate goals are translated into viable realities and profits only with human element that play their due role in achieving the desired results. "hus even the high automation would re!uire proper man behind the machine to make things happen. "his idea has been realiFed by top management in progressive banks. 3ike many other organiFed sectors banking re!uires multi+layer manpower for its various re!uirements of professionals and support staff. "he range may re!uire reasonably educated security guards on the one end and a highly educated and trained professional as head of corporate finance at the other. ith liberaliFation of activities within the banking sector for e&le more emphasis on consumer and house finance and personal loans etc. banking has turned itself into a more market+based business where banks have e&panded their reach more to customers door steps in a big way making banking more practical. "his has further highlighted the need for proper deployment of man+power to run banks efficiently. or many years HRM banks like other institutions have been handling this sensitive activity through respective personnel departments. "his means human resources were managed like other physical assets e.g. pieces of furniture calculators e!uipment and appliances. Personnel departments were primarily engaged in approval of leaves handling of staff loans issuance of show 21
cause conducting disciplinary en!uiries and termination from service. Recruitment was a routine function and was done in a mechanical way to hire people with specific educational background irrespective of their real value to the institution. Success stories of large banking companies have been evident of the fact that HRM is !uite different from management of physical assets. Human brain has its own peculiar chemistry. #ts strong sensory and decision+making capacity has to be greatly emphasiFed by the employers. "he work force constituting all levels of employees is constantly thinking in many dimensions. An the one hand it is the assigned duty and task they are to perform and for which they are paid by their employer on the other they think of their long run goals and ob'ectives. 2y no means their brains can be controlled to think beyond the current situation of employment. Managing this educated skillful and trustworthy work force is not an easy 'ob. , few of the current challenges faced by the banking industry in terms of human resource management may be the following"o make the #ndian 2anking System stronger efficient and low+cost the creation of fundamentals must include in the bank7s operations strategies and processes- strengthening the prudential norms and market disciplineE adoption of international benchmarksE management of organiFational change and consolidation within the financial systemE upgrading the technological infrastructure of the financial systemE and human resource development as the catalyst of the transformation (/==/). "he Human Resource field in the 2anking #ndustry is considered as one of the process of discovery and transformation. "he field of Human Resource can be described as emergent and dynamic within the cultural business aspect in a 2anking #ndustry. "he success of today7s banking business will sparsely depends on the human resources of the organiFation in which plays a crucial role in providing the services needed. "he evolution of banking system in #ndia affected the human resource practices recruitment and selection practices and training system. #t is very important that the details of human resource are discussed along with the employees to build their own career planning perceptions and development. "he primary strength of the industry is the human resource that is why the efforts to develop the skills and management are the main sub'ect placed before the human resource. , ma'or 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. "herefore the HR model of the future will re!uire professionals to be both driving and anticipating change understanding the comple&ities of the new business environment and forces shaping it.
HR (ractice+ and Method+!
, key focus of the human resource management is highlighted in the role of staffing performance management training and development and compensation that plays indifferent types of business strategies. 22
ith the ac!uisition and preparation of human resources including planning recruitment selection and training can affect the whole organiFational performance. "he HR planning the start of the strategy illustrates the process of developing human resource plan. "he strengths and weaknesses of staffing options such as outsourcing use of contingent workers and downsiFing are involved in planning. "he recruitment process is done strategically to determine the talented employee fit for the position. "he selection process emphasiFes the ways in minimiFing errors in employee selection and placement to improve the company7s competitive position. "he selection method standards such as validity and reliability are utiliFed. ,n effective training systems of the manager7s role in determining employees7 readiness for training creating a positive learning environment and ensuring the training is used on the 'ob. 2eyond the human resource strategies are the rewarding and compensating that can strengthen or weaken the employee effectiveness. #n order to give recognition and increase motivational levels amongst the employees some 2anks linked the individual performance in an incentive scheme I or for some rewards that may come into any form .#n summary all of the HRM strategies and function should be aligned to help the company meet its ob'ectives I as well as focusing on their customers . "he best practice approach assert that certain HR practices are found to consistently lead to higher organiFational performance independent of an organiFation7s stated strategy. "he high performance HR practices foster innovation through the development of innovation values encouraging of information sharing goal setting and appropriate training and development.
.o/ anal$+i+, .o/ de+ign and .o/ e*oltion , 'ob is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific 'ob. 23
Job analysis Job description Job specification Job title: name of the 'ob Bualification orking hours Bualities 5uties and responsibilities 9&perience orking conditions amily background Salary and incentives "raining Machines to be handled on the 'ob #nterpersonal skills A+ %entioned in the a/o*e ta/le @o/ anal$+i+ i+ di*ided into 3 part+ a1 .o/ de+cription here the details regarding the 'ob are given. /1 .o/ +peci)ication here we e&plain the !ualities re!uired by people applying for the 'ob.
Needi%portanceprpo+e/ene)it+ o) @o/ anal$+i+ De)!- + , 'ob is defined as a collection of duties and responsibilities which are given together to an
individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific 'ob. "he following are the benefits of 'ob analysis. 2! Organi9ational +trctre and de+ign -+ Job analysis helps the organiFation to make suitable changes in the organiFational structure so that it matches the needs and re!uirements of the organiFation. 5uties are either added or deleted from the 'ob. 3! Recrit%ent and +election-+ Job analysis helps to plan for the future human resource. #t helps to recruit and select the right kind of
people. #t provides information necessary to select the right person. 4!(er)or%ance apprai+al and trainingde*elop%ent -+
2ased on the 'ob re!uirements identified in the 'ob analysis the company decides a training program. "raining is given in those areas which will help to improve the performance on the 'ob. Similarly when appraisal is conducted we check whether the employee is able to work in a manner in which we re!uire him to do the 'ob. 5! .o/ e*alation-B
Job evaluation refers to studying in detail the 'ob performance by all individual. "he difficulty levels skills re!uired and on that basis the salary is fi&ed. #nformation regarding !ualities re!uired skilled levels difficulty levels is obtained from 'ob analysis. 6! (ro%otion+ and tran+)er-B 24
hen we give a promotion to an employee we need to promote him on the basis of the skill and talent re!uired for the future 'ob. Similarly when we transfer an employee to another branch the 'ob must be very similar to what he has done before. "o take these decisions we collect information from 'ob analysis. 8! Career path planning-B
Many companies have not taken up career planning for their employees. "his is done to prevent the employee from leaving the company. hen we plan the future career of the employee information will be collected from 'ob analysis. Hence 'ob analysis becomes important or advantageous. ;! #a/or relation+-B
hen companies plan to add e&tra duties or delete certain duties from a 'ob they re!uire the help of 'ob analysis when this activity is systematically done using 'ob analysis the number of problems with union members reduce and labour relations improve.
Most companies prepare their own health and safety plans and programs based on 'ob analysis. rom the 'ob ,nalysis %ompany identifies the risk factor on the 'ob and based on the risk factor safety e!uipment7s are provided. =! Acceptance o) @o/ o))er -+
hen a person is given an offer:appointment letter the duties to be performed by him are clearly mentioned in it this information is collected from 'ob analysis which is why 'ob analysis becomes important.
Method+ o) @o/ anal$+i+ De)- + , 'ob is defined as a collection of duties and responsibilities which are given together to an individual
employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific 'ob. "here are different methods used by organiFation to collect information and conduct the 'ob analysis. "hese methods are
2! (er+onal o/+er*ation-+
#n this method the observer actually observes the concerned worker. He makes a list of all the duties performed by the worker and the !ualities re!uired to perform those duties based on the information collected 'ob analysis is prepared. 3 Actal per)or%ance o) the @o/-B
#n this method the observer who is in charge of preparing the 'ob analysis actually does the work himself. "his gives him an idea of the skill re!uired the difficulty level of the 'ob the efforts re!uired etc. 4! Inter*iew %ethod-B
25
#n this method an interview of the employee is conducted. , group of e&perts conduct the interview. "hey ask !uestions about the 'ob skilled levels and difficulty levels. "hey !uestion and cross !uestion and collect information and based on this information 'ob analysis is prepared. 5! Critical incident %ethod -+
#n this method the employee is asked to write one or more critical incident that has taken place on the 'ob. "he incident will give an idea about the problem how it was handled !ualities re!uired and difficulty levels etc. critical incident method gives an idea about the 'ob and its importance. (, critical means important and incident means anything which takes place in the 'ob) 6! e+tioner %ethod- +
#n this method a !uestioner is provided to the employee and they are asked to answer the !uestions in it. "he !uestions may be multiple choice !uestions or open ended !uestions. "he !uestions decide how e&actly the 'ob analysis will be done. "he method is effective because people would think twice before putting anything in writing. 8! #og record+ -+
%ompanies can ask employees to maintain log records and 'ob analysis can be done on the basis of information collected from the log record. , log record is a book in which employee7s record :writes all the activities performed by them on the 'ob. "he records are e&tensive as well as e&hausted in nature and provide a fair idea about the duties and responsibilities in any 'ob. ;! HRD record+ - +
Records of every employee are maintained by HR department. "he record contain details about educational !ualification name of the 'ob number of years of e&perience duties handled any mistakes committed in the past and actions taken number of promotions received area of work core competency area etc. based on these records 'ob analysis can be done.
!
.o/ de+ign De)inition+- + Job design is the process of a) 5eciding the contents of the 'ob. b) 5eciding methods to carry
out the 'ob. c) 5eciding the relationship which e&ists in the organiFation. Job analysis helps to develop 'ob design and 'ob design matches the re!uirements of the 'ob with the human !ualities re!uired to do the 'ob.
"actor+ a))ecting @o/ de+ign- + "here are various factors which affect 'ob design in the company. actors affecting 'ob design . ArganiFational factors 26
/. 9nvironmental factors 0. 2ehavioural factors
I Organi9ational )actor+-B
ArganiFational factors to refer to factors inside the organiFation which affect 'ob design they are a1 Ta+& characteri+tic+ -+ "ask characteristics refer to features of the 'ob that is depending on the type of 'ob
and the duties involved in it the organiFation will decide how the 'ob design must be done. #n case the company is not in a position to appoint many peopleE a single 'ob may have many duties and vice versa. /1 The proce++ or )low o) wor& in the organi9ation -+ "here is a certain order in which 'obs are performed in
the company. #n case the company wishes it could combine similar 'ob and give it to one person this can be done if all the 'obs come one after the other in a se!uence. c1 Ergono%ic+-+ 9rgonomics refers to matching the 'ob with physical ability and characteristics of the
individual and in providing an office environment which will help the person to complete the 'obs faster and in a comfortable manner. d1 :or& practice+ -+ 9very organiFation has different work practices. ,lthough the 'ob may be the same the
method of doing the 'ob differs from company to company. "his is called work practice and it affects 'ob design.
II En*iron%ental )actor+-B
9nvironmental factors which affect 'ob design are as follows a1 E%plo$ee a*aila/ilit$ and a/ilit$ -+ %ertain countries face the problem of lack of skilled labour. "hey are
not able to get employees with specific education levels for 'obs and have to depend on other countries due to this 'ob design gets affected. /1 Social and cltral e?pectation+ -+ "he social and cultural conditions of every country is different so
when an M$% appoints an #ndian it has to take into account like festivals auspicious time inauspicious time etc. to suit the #ndian conditions. "his applies to every country and therefore 'ob design will change accordingly.
III eha*ioral )actor+-B
Job design is affected by behavioral factors also. "hese factors are a1 "eed/ac& - + Job design is normally prepared on the basis of 'ob analysis and 'ob analysis re!uires
employee feedback based on this employee feedback all other activities take place. Many employees are however not interested in providing a true feedback because of fear and insecurity. "his in turn affects 'ob deign.
2%
/1 Atono%$-+ 9very worker desires a certain level of freedom to his 'ob effectively. "his is called autonomy.
"hus when we prepare a 'ob design we must see to it that certain amount of autonomy is provided to the worker so that he carries his 'ob effectively. c1 Variet$ -+ hen the same 'ob is repeated again and again it leads to burden and monotony. "his leads to
lack of interest and carelessness on the 'ob. "herefore while preparing 'ob design certain amount of variety must be provided to keep the person interested in the 'ob. Methods of 'ob design "here are various methods in which 'ob design can be carried out. "hese methods help to analysis the 'ob to design the contents of the and to decide how the 'ob must be carried out .these methods are as follows- + I! II! III!
.o/ rotation II! .o/ enlarge%ent III! .o/ enrich%ent
2!.o/ Rotation - + Job rotation involves shifting a person from one 'ob to another so that he is able to understand and learn what each 'ob involves. "he company tracks his performance on every 'ob and decides whether he can perform the 'ob in an ideal manner. 2ased on this he is finally given a particular posting. Job rotation is done to decide the final posting for the employee e.g. Mr. , is assigned to the marketing department whole he learns all the 'obs to be performed for marketing at his level in the organiFation .after this he is shifted to the sales department and to the finance department and so on. He is finally placed in the department in which he shows the best performance Job rotation gives an idea about the 'obs to be performed at every level. Ance a person is able to understand this he is in a better understanding of the working of organiFation I
Ad*antage+ o) @o/ rotation
2! A*oid+ %onopol$-+
Job rotation helps to avoid monopoly of 'ob and enable the employee to learn new things and therefore en'oy his 'ob 3! (ro*ide+ an opportnit$ to /roaden one+ &nowledge -+
5ue to 'ob rotation the person is able to learn different 'ob in the organiFation this broadens his knowledge iii. ,voiding fraudulent practice-+#n an organiFation like bank 'obs rotation is undertaken to prevent employees from doing any kind of fraud i.e. if a person is handling a particular 'ob for a very long time he will be able to find loopholes in the system and use them for his benefit and indulge (participate) in fraudulent practices 'ob rotation avoids this.
Di+ad*antage+ o) .o/ Rotation
2&
2! "reFent interrption -+ Job rotation result in fre!uent interruption of work ., person who is doing a
particular 'ob and gets it comfortable suddenly finds himself shifted to another 'ob or department .this interrupts the work in both the departments 3! Redce+ ni)or%it$ in Falit$ -+ Buality of work done by a trained worker is different from that of a new
worker .when a new worker # shifted or rotated in the department he takes time to learn the new 'ob makes mistakes in the process and affects the !uality of the 'ob. iii. Misunderstanding with the union member-+ Sometimes 'ob rotation may lead to misunderstanding with members of the union. "he union might think that employees are being harassed and more work is being taken from them. #n reality this is not the case.
3!! .o/ enlarge%entJob enlargement is another method of 'ob design when any organiFation wishes to adopt proper 'ob design it can opt for 'ob enlargement. Job enlargement involves combining various activities at the same level in the organiFation and adding them to the e&isting 'ob. #t increases the scope of the 'ob. #t is also called the horiFontal e&pansion of 'ob activities. Job enlargement can be e&plained with the help of the following e&le I #f Mr. , is working as an e&ecutive with a company and is currently performing 0 activities on his 'ob after 'ob enlargement or through 'ob enlargement we add 1 more activities to the e&isting 'ob so now Mr. , performs 8 activities on the 'ob. #t must be noted that the new activities which have been added should belong to the same hierarchy level in the organiFation. 2y 'ob enlargement we provide a greater variety of activities to the individual so that we are in a position to increase the interest of the 'ob and make ma&imum use of employee7s skill. Job enlargement is also essential when policies like DRS are implemented in the company.
Ad*antage+ o) @o/ enlarge%ent 2! Variet$ o) +&ill+ -+ Job enlargement helps the organiFation to improve and increase the skills of the
employee due to organiFation as well as the individual benefit. 3! I%pro*e+ earning capacit$ -+ 5ue to 'ob enlargement the person learns many new activities. hen such
people apply for 'obs to other companies they can bargain for more salary. 4! :ide range o) acti*itie+ -+ Job enlargement provides wide range of activities for employees. Since a single
employee handles multiple activities the company can try and reduce the number of employee7s. "his reduces the salary bill for the company.
Di+ad*antage+ o) @o/ enlarge%ent 2! Increa+e+ wor& /rden -+ Job enlargement increases the work of the employee and not every company
provides incentives and e&tra salary for e&tra work. "herefore the efforts of the individual may remain unrecogniFed. 2'
3! Increa+ing )r+tration o) the e%plo$ee -+#n many cases employees end up being frustrated because
increased activities do not result in increased salaries. 4! (ro/le% with nion %e%/er+-+
Many union members may misunderstand 'ob enlargement as e&ploitation of worker and may take ob'ection to it.
4! .o/ enrich%ent - + Job enrichment is a term given by edric HerFberg. ,ccording to him a few motivators are added to a 'ob to make it more rewarding challenging and interesting. ,ccording to HertFberg the motivating factors enrich the 'ob and improve performance. #n other words we can say that 'ob enrichment is a method of adding some motivating factors to an e&isting 'ob to make it more interesting. "he motivating factors can be a. @iving more freedom. b. 9ncouraging participation. c. @iving employees the freedom to select the method of working. d. ,llowing employees to select the place at which they would like to work. e. ,llowing workers to select the tools that they re!uire on the 'ob. f. ,llowing workers to decide the layout of plant or office. Job enrichment gives lot of freedom to the employee but at the same time increases the responsibility. Some workers are power and responsibility hungry. Job enrichment satisfies the needs of the employees.
Ad*antage+ o) @o/ enrich%ent 2! Intere+ting and challenging @o/ -+ hen a certain amount of power is given to employees it makes the 'ob
more challenging for them we can say that 'ob enrichment is a method of employee empowerment. 3! I%pro*e+ deci+ion %a&ing -+ "hrough 'ob enrichment we can improve the decision making ability of the
employee by asking him to decide on factory layout method and style of working. 4! Identi)ie+ )tre %anagerial cali/er - + hen we provide decision making opportunities to employees we
can identify which employee is better that other in decision making and mark employees for future promotion. 3(
5! Identi)ie+ higher order need+ o) e%plo$ee+ -+ "his method identifies higher order needs of the employee.
,braham Maslow7s theory of motivation speaks of these higher order needs e.g. ego and esteemed needs self+ actualiFation etc. "hese needs can be achieved through 'ob enrichment. 6! Redce+ wor& load o) +perior+ -+ Job enrichment reduces the work load of senior staff. hen decisions
are taken by 'uniors the seniors work load is reduced.
Di+ad*antage+ o) @o/ enrich%ent . Job enrichment is based on the assumptions that workers have complete knowledge to take decisions and they have the right attitude. #n reality this might not be the case due to which there can be problems in working. /. Job enrichment has negative implications i.e. ,long with usual work decision making work is also given to the employees and not many may be comfortable with this. 0. Superiors may feel that power is being taken away from them and given to the 'unior7s. "his might lead to ego problems. 1. "his method will only work in certain situations. Some 'obs already give a lot of freedom and responsibilityE this method will not work for such 'obs. 4. Some people are internally dissatisfied with the organiFation. or such people no amount of 'ob enrichment can solve the problem
H%an Re+orce (lanning "his is the process which assures the organiFation that it will have ade!uate number of !ualified persons at re!uisite times performing in a way to satisfy the needs of the organiFation ? also provide satisfaction to the individual employee so employed. "he process involvesa) 9stimating the present ? future re!uirements of human resources based on ob'ectives ? long range plans of the organiFation. b) %alculation of net human resource re!uirements based on the present availability of human resources. 31
c) "aking suitable steps to identify mould change ? develop the strength of e&isting employees so as to meet the future re!uirements. d) Preparation of action plans to ac!uire the balance human resources from outside the organiFation ? to develop the e&isting employees.
Recrit%ent#t is the process of searching for future employees (re!uirement) ? ensuring they apply for 'obs in the organiFation. #t involvesa) #dentification of e&isting sources of candidates ? developing them. b) Seeking out ? identifying new sources of applicants. c) Motivating the right type of candidates to apply for 'obs in the organiFation. d) 9nsuring a healthy balance between internal ? e&ternal sources.
Selection#t is the process of ascertaining the !ualifications e&perience skill >nowledge etc. of an applicant to ascertain his:her suitability for the 'ob applied. "his includesa) 5eveloping application blanks. b) %reating ? developing valid ? reliable testing techni!ues. c) ormulating interviewing techni!ues. d) %hecking of references. e) Setting up for medical e&amination policy ? procedure. f) 3ine Managers to be involved in the decision making. g) Sending letters of appointment. h) 9mploying the selected candidates when he reports for duty.
(lace%ent #t is a process of allotting to the selected candidate the most suitable 'ob as per the 'ob re!uirements ? employee specifications. "his function includes32
a) %ounseling the concerned managers regarding the placements. b)Averseeing the follow+up studies employee performance appraisal to monitor employee ad'ustment to the 'ob in the coming days. c) %orrecting wrong:mis'udged placements if any.
Indction Orientation"hese are procedures by which a new employee is rehabilitated in the new surroundings ? introduced to the practices procedures policies people etc. of the organiFation. #t includesa) amiliariFing the employee with company philosophy ob'ectives policies career planning ? development company product market share history culture etc. b) #ntroduce new employee to the peopleKhis colleagues supervisors ? subordinates. c) Mould the employees by orientation methods to the new working conditions.
H%an Re+orce De*elop%ent "his process involves improving moulding ? developing the skills knowledge creativity attitude aptitude values commitment etc. based on the present ? future 'ob ? company re!uirements. 2! (er)or%ance Apprai+al - #t is the continuous ? systematic evaluation of individual employees with respect
to their performance ? their potential for future development. #t includes- a) 9nunciating policies procedures ? techni!ues. b) ,ssisting functional managers. c) Reviewing ? summariFing reports. d) 9valuating the effectiveness of various programmes. 3! Training- #t is the process of transmitting the employees the technical ? operating skills and knowledge. #t
includes a) #dentification of training needs of the individuals ? for the organiFation. b) 5eveloping appropriate training programmers. c) ,ssisting ? advising the management in the conduct of training programmes. d) "ransmitting re!uisite 'ob skills ? 'ob knowledge to the employees. e) ,sses the effectiveness of the training programmes.
Manage%ent De*elop%ent#t is the process of designing ? conducting appropriate e&ecutive development programmes so as to develop the managerial ? human relations skills of the employees. #t includes #dentification of the areas in which management development is needed.
•
33
%onducting development programmers.
•
Motivating e&ecutives:managers.
•
•
5esigning special development programmers: assessment procedures for promotions.
CtiliFing the
•
services of specialists+both internal ? e&ternal for development ?:or #nstitutional (e&ternal) development programmes. 9valuating the effectiveness of e&ecutive development programmes..
•
Career (lanning De*elop%ent#t is the planning of one7s career ? implementation of career plans by means of education training 'ob search ? ac!uiring of work e&perience. #t includesA! Internal %o/ilit$-
Dertical horiFontal transfers promotions and demotion. ! Tran+)er-
Process of placing employees in the same level 'obs where they can be utiliFed more effectively as per the needs of the organiFation. "his also means developing transfer policies offering assistance ? guidance to employees under transfer orders ? evaluating transfer policy periodically. C! (ro%otion-
#t deals with the upward assignment of employees to occupy higher positions (with better status ? pay) in consonance with resources of employees ? 'ob re!uirement. "he department must ensure that- • 9!uitable fair ? consistent promotions are formulated ? administered. • Managers ? employees are given assistance ? guidance on the sub'ect of promotion. • 9&ecutions of promotional policies are as per policies ? procedures. D! De%otion-
#t is the downward assignment of an employee in an organiFation. "he department must ensure that-
•
9!uitable fair ? consistent demotion policies are drawn up. • ,ssisting ? advising employees regarding demotions. • 9nsure fair implementation of demotion Policies ? Procedures.
Organi9ational De*elop%ent"he planned process drawn up to improve organiFational effectiveness through changes in individual ? group behavior culture ? systems of the organiFationKdrawing models from applied behavioral science. 34
HUMAN RESOURCE MANAGEMENT IN AN7S "he classification of the #ndian banks into broad groups such as public sector old private sector new private sector foreign regional rural banks ? cooperatives are largely on the basis of ownership pattern. #t is also well known that the business mi& delivery channels ? #" strategies of these organiFations vary substantially. hat is little known but of greater importance is that each of these banks follows very distinct HR practices which have contributed substantially to the business processes.
HRM in Cooperati*e an&+ #t is sad that the HR policies of cooperative banks are totally dominated by the Registrar of %ooperatives. "his is perhaps one reason why the cooperatives are unable to improve themselves.
HRM in Regional Rral an&+ 0RR+1 ,s regards RR2s most of them adopt the HR policies of sponsor banks which are not appropriate for their special nature.
HRM in (/lic Sector an&+ #n the recent times the contours of HR function in public sector banks are slowly but definitely changing. Ane could say that these banks are discovering the HR function ? it is hoped that these banks will fast catch up with others. #t may be recalled that in a controlled environment ? to meet with the rapid branch e&pansion+ since 8=s+ Public Sector 2anks (PS2s) have adopted HRM practices similar to that of @overnment departments. Herein HRM did not have a direct role in business development but was more concerned with centraliFed recruitment to staff ? providing them across the country..
HRM in (ri*ate an&+ "oreign an&+ "he HR function as practiced by private ? foreign banks is effectively involved in the identification of specific skills that each 'ob warrants ? recruiting suitable staff by every way possible. #n these banks recruitment is a continuous process with a strong focus on getting the right person for the right 'ob by offering appropriate compensation incentives ? designations. "here is a great energy spent in keeping the turnover low ? offering appropriate training inputs. Possibly there are as many pay structures as there are employees. More importantly HRM has a role in monitoring ? 35
mentoring the employee. "here are no routine transfers. Rather people are recruited in different geographical locations ? different levels. "echnology has helped in centraliFing the back office ? other functions such that service can be provided from a distance. "hese institutions adopt a proactive performance appraisal system but still short of 06= 5egree appraisals. "heir training process is concerned with both skill building ? motivating. #t should however be said that the demand for professionals on account of growth of #ndian 2usiness is such that the efforts of HRM have not helped it from completely staving off staff turnover in the ranks.
HRM in (/lic Sector Unit an&+ 0(SU an&+1 #n the case1 of PSC 2anks the recruitment process is annual ? large scale. People are recruited at the lowest grade ? promoted # due course. "his makes the career path of each employee the responsibility of the organiFation. "his also underlies a belief that anyone can occupy any desk. #n such a system specialiFation is the loser. Recruitment at higher levels is a recent phenomenon ? more an e&ception than rule. Pay packets are uniform for a grade:level with annual increments ? uniform per!uisites. #ncrements are earned automatically. "ransfers are not driven by business re!uirements but a matter of routine. Dacancies get created as ? when people move up. #t is not uncommon to see new department7s spring up 'ust to allow promotions. #n a way such a move is 'ustified as salary is linked to grades ? not performance. "he concept of 'ob rotation is practiced with great conviction. ,s regard leave it is seen that modern business organiFations driven by work life balance issues ? operational risk7 ensure that certain annual leave is mandatory. #n the case of PSC 2anks the compulsory leave system‖ has not yet taken root. #n the circumstances an important task at hand is training the staff member who on account of age profile is not comfortable working in an #" environment. HRM should also take immediate steps to improve productivity. "here is a simultaneous need to balance the demand of #" savvy youngsters 'oining the organiFation who ask for high salaries. PSC 2anks are not able to offer market driven salary. @iven that banking business ? the business of @overnment are distinct there is in the case of PSC 2anks an urgent need that salaries are not limited by what is paid in the ministry but unshackled. "ill that happens HRM should innovatively tackle the issue.
Re+pon+i/ilitie+ o) the H%an Re+orce Manage%ent Depart%ent in an&+ Role"he role of the Human Resource 5epartment is to create the climate ? conditions in which management throughout the 2ank will be enabled to optimise the individual ? collective contribution of all employees to the short ? long+term success of the 2ank.
Re+pon+i/ilitie+-
36
"o be the principal sponsor ? guardian‖ of HR policies in the 2ank. "o propose ? obtain agreement on changes to these policies from time to time ? to ensure that
policies which have been agreed are being implemented throughout the 2ank. "o contribute fully to the task of meeting the business challenges which the bank has to face by supporting 2ranch:Cnit Managers in continuously developing the potential of employees ? in creating
conditions in which all the employees are motivated to meet the ob'ectives of the 2ank. "o continuously monitor the 2ank7s strategies to ensure that HR policies are appropriate ? that
employee numbers ? skills are fully supportive of such strategies. "o deliver a full range of personnel services in support of line management. "hese services include
manpower planning recruitment:transfer remuneration and training ? employee welfare. "o support line management in their day+to+day management of the workforce by providing advice ? consultancy on personnel ? performance management issues. I
EM(#OEE RE#ATIONS IN AN7S "he banking sector has been characteriFed by apparently harmonious industrial relations ? has not suffered from the *2ritish 5iseases‖ of industrial action ? demarcation issues associated with parts of manufacturing industry (e.g. 2atstone <;1). 2anks have promoted unitarism (o& <66) encouraging an ethos of teamwork shared interest ? loyalty wanting commitment beyond the cash ne&us. hile banks are generally seen as having a passive approach to employee relations paternalism did underpin the system ? particularly important was the system of internal promotion supported by an unwritten agreement between the ma'or C> 2anks on no poaching. "he internal labour market created two categories of employees- career ? non+career which e!uated to a male:female divide. Retail banking is a highly labour intensive industry with labour costs forming 8=Lof total operating e&penditure ? involvement in fund transmissions meant that a ma'ority of clerical staff have not been used as a means of marketing the bank7s products nor directly for increasing business but to process e&isting accounts. "hey have been regarded as an overhead rather than a resource. Cntil the <;=s competition between the 2anks has been limited banks operating as an oligopoly? @overnment7s concern with maintaining economic stability with limits to lending ? control over interest rates facilitated this. "he oligopoly fed through to the management of staff + 0; + as national wage bargaining minimiFed competition for labour. However deregulation led to the collapse of the national system ? a !uestioning of the old employment practices.
CURRENT CHA##ENGES "ACED AN7S IN HRM E))ecti*e wor& )orce, time+consuming ? hectic 'ob is to hunt the right talent. Higher the professional value of the vacancy tougher is the search. #dentifying the right stuff followed by negotiation is the element which makes the 'ob tough for the employer. 2anks are keenly interested to fill up two types of breeds of professionals. Anes who 3%
are outstanding professionals with high 'ob hopping attitude these are those who come in+work for some tome ? then leave for better prospects. Athers are those who are keenly picked+up trained ? are somehow retained to be developed as future management within the bank. Management trainees are a growing popular phenomenon where freshly !ualified business graduates are engaged by banks ? a certain percentage of these well+e!uipped professionals stay back within the organiFation to grow into the footsteps of senior managers. 2anking 'obs being apparently lucrative for many attract a large number of candidates against advertised vacancies in media creating a large database management problem. "his has been facilitated by specialiFed hiring agencies who may take up the 'ob of hiring in case of large number of vacancies.
Right (eople"he most difficult agenda of HRM across the banking sector is to retain the right people. Sudden growth of retail banking ? other services has put pressure on HR Managers in banks to engage more professionals within shorter span of time thereby attracting manpower in other banks on + 0< + attractive packages has made the 'ob market very competing. , bank in a normal course invests time ? money to hire ? train the appropriate workforce for its own operations. "his readymade force is often identified ? subse!uently picked+ up on better terms by others.
Co%pen+ationHow much to pay the right employee ? how much to the outstanding performer. 2anks have traditionally followed pay scales with predetermined increments salary slabs bonuses ? time based fringe benefits like car ? house advance gratuity pensions etc. "he situation is not the same anymore. ,n increment of Rs.4==+;== per annum is no more a source of attraction for a professional anymore. , basic pay with traditional formulas of linkage with medical ? other facilities has no soothing today. , promise of future growth learning culture ? corporate loyalty is out of dictionary ? does not mean anything to this energetic ? competent performer today. , waiting period of 0+1 years in each cadre haunts the incumbents who strongly believe in immediate compensation. , freshly hired professional re!uires a brand new car or car loan n resuming office !uite contrary to his previous breed of bankers who would wait for the 'ob seniority to !ualify for a car loan.
.o/ Sati+)action9verybody in the bank wants to work in the preferential department preferential location city of his own choice ? boss of his liking. ,n administrative deviation from any of these results in lowered 'ob satisfaction. ,lthough hiring is normally based on regional re!uirement matching the area of activity with that of employee7s nativity yet other elements like appointment in the department of choice ? preference makes the 'ob of HR manager !uite challenging. hat the HR manager cannot afford is the dissatisfied employee who 3&
not only disrupts the smooth working him but also spreads the negativity to others by his de+motivated attitude.
Morale oo+tinghat has long been overlooked is the morale boosting of the employees by the organiFations. Human beings even if satisfied of material wellbeing need to be appraised ? encouraged constantly. Smart banks have realiFed this need ? have taken steps to keep their work force motivated through proper encouragement like man of the mouth awards repeat get+togethers conferences sports events dinners company sponsored travel reunions etc. "his is the way employees create a feeling of belongingness.
DEVE#O(MENT IN AN7S "he banks must emphasis on human resource development as one of the critical areas of its operations. #t should redraw its training ? development schedules to suit the re!uirements of the current emerging scenario. Re!uisite training should be imparted to various branch level functionaries as also administrative staff. 2esides in+house training the reputed e&ternal agencies should be utiliFed for human resource development with a view to updating their knowledge ? to keep them abreast of the current banking scenario for meeting the challenges ahead. "he concept of segment specialiFation may be resorted to in respect of the personnel selected therefore. #t is now thought e&pedient to plan ? strengthen the s!uad of skilled officers in various segments as #" marketing management risk management risk based supervisors law security etc."he lead bank must play an effective role in improving the work environment ? pursuing staff welfare measures in the form of whole range of financial assistance with reference to various loans of sorts. Human resource skills are other areas of challenge. 2ecause of moderniFation ? technological advancement rigorous training ? man power planning are re!uired. #n the market scenario characteriFed by heightened competition growing customer needs ? technological up gradation the bank fine tunes its H" policy to meet its corporate ob'ectives. $ew training systems have been developed to impart competencies ? a broad range of skills among the employees to deliver faster ? superior service that can delight the customers. "he #ndustrial Relations in the banks have been harmonious ? cordial.
TRAINING DEVE#O(MENT Meaning De)inition-
"raining- ArganiFation ? individual should develop ? progress simultaneously for their survival ? attainment of mutual goals. So every modern management has to develop the organiFation through human resource development. 9mployee training is the important sub system of human resource management. 9mployee training is a specialiFed function ? is one of the fundamental operative functions for human resources 3'
management. ,fter an employee is selected placed ? introduced he or she must be provided with training facilities. "raining is the act of increasing the knowledge ? skill of an employee for ding a particular 'ob. 5ale S. 2each defines the training as *the organiFed procedure by which people learn knowledge ? skill for a definite purpose. "he training system in the banking industry has a strong structural base. However in the past the training activities have been more ritualistic due to absence of a strategic link between training ? human resources development. "oday it is important that the training function is made an effective organiFational intervention by establishing a clear policy of training ? development within the framework of total human resource development. "he training establishments need to be actively involved in the total training process starting from the identification of the training needs evaluation of training effectiveness ? the benefits of training to the end users viF. the internal ? e&ternal customers. "he need for training ? development is determined by the employee7s performance deficiency computed as followsTraining De*elop%ent Need Standard (er)or%ance J Actal (er)or%ance!
e can make a distinction among training education ? development. "raining as was started earlier refers to the process of imparting specific skills. 9ducation on the other hand is confined to theoretical learning in the classrooms. "raining ? 9ducation 5ifferentiated
De*elop%ent@ive a man a fish ? you give him meal. "each man to fish ? you give him a livelihood. "his ancient %hinese proverb seems to describe the underlying rational of all raining ? development programs. $o banking organiFation can long ignore the training ? development needs of its employees without seriously inhabiting the performance. 9ven the most careful selection does not eliminate the needs for training since people are not molded to specifications ? rarely meet the demands of their 'obs ade!uately. "his HRM function deals with the overall development of the employees. "his includes their professional ? well as their personal development. #t is a part of HRM function to identify opportunities for enhancing the skills of the resources. Promotion is regarded as one of the ways of recogniFing development undertaken by an employee. 5evelopment is also largely dependant on training. @enerally people think that training ? development are one ? the same but there are many differences between them.
Recrit%ent+
4(
Meaning and de)inition - "he human resources are the most important assets of an organiFation. "he success
or failure of an organiFation is largely dependent on the caliber of the people working therein. ithout positive and creative contributions from people organiFations cannot progress and prosper. #n order to achieve the goals or the activities of an organiFation therefore they need to recruit people with re!uisite skills !ualifications and e&perience. hile doing so they have to keep the present as well as future re!uirements of the organiFation in mind. Ance the re!uired number and kind of human resources are determined the management has to find places where the re!uired human resources are:will be available and also find means of attracting them towards the organiFation before selecting suitable candidates for 'obs. Recruitment is defined as + , process to discover the sources of man power to meet the re!uirements of the staffing schedule and to employ effective measures for attracting that man power in ade!uate numbers to facilitate effective selection of an efficient work force.
O/@ecti*e+ o) recrit%ent Some of the ob'ectives of recruitment are
"o attract people with multi+dimensional skills and e&periences that suits the present and future
organiFational strategies. ¬ "o induct outsiders with a new perspective to lead the company. "o infuse fresh blood at all levels of the organiFation. "o devise methodologies for assessing psychological traits.
(roce++ o) Recrit%entRecruitment refers the process of identifying and attracting 'ob seekers so as to build a pool of !ualifies applicants. "his process comprises of five interrelated stages viF
Planning Strategy development Searching 9valuation and control
"he ideal recruitment process is the one which attracts relatively larger number of !ualified applicants who will survive the screening process and accept positions with the organiFation when offered to approach the ideal people individuals responsible for recruitment process must know how many types of employees are needed where and how to look for individuals with appropriate !ualifications and interests what inducements to use for various types of applicants group how to distinguish applicants who are un!ualified from those who have a reasonable chance of success and how to evaluate their work.
Selection 41
5efinition Selection is defined as the process of differentiating applicants in order to identify and hire those with a greater likelihood of success in a 'ob. "he ob'ective of selection decision is basically picking an applicant from a pool of applicants who has the appropriate !ualifications and competency to do the 'ob. "he selection procedure cannot be effective until and unless+
Re!uirements of the 'ob to be filled have been clearly specified. 9mployee specifications (physical mental social behavioral etc) have been clearly specified. %andidates for screening have been attracted.
Selection proce++ i+ pre)era/le /eca+e
#t is easier for applicant as they can send their applications to a single centraliFed department:agency. ¬
#t facilitates contacts with applicants because issues pertaining to employment can be cleared through
one central location. #t helps operating managers to concentrate on their operating responsibilities. "his is helpful during
peak operating period. #t can provide for better selection because hiring is done by specialist trained in staffing techni!ues. "he applicant is better assured of consideration for a greater variety of 'obs. Hiring cost may be cut because duplication of efforts is minimiFed.
Selection (roce++"he selection process consists of the following steps2! Application )or% - Many companies formulate their own style of application form depending upon the siFe
and nature of business carried on type and level of the 'ob etc. #nformation is generally re!uired on the following items in the form- personal background educational attainments work e&perience references etc. 3! :ritten te+t - ritten test is conducted for the !ualified candidates after they are screened on the basis of
application form to measure the candidates ability towards the 'ob his aptitude reasoning knowledge in various disciplines 9nglish language etc. 4! (reli%inar$ Inter*iew - "he ne&t step that tag along the selection procedure is a preliminary interview
wherein the applications are scrutiniFed so as to eliminate un!ualified applications. Preliminary #nterviews are short. "his interview thus provides information about the candidate related to the 'ob or personal 42
specifications. 5! Selection Te+t - ,fter passing through the interview the ne&t stage that applicant has to prove himself on are the selection tests. "here are different types of selection tests for different levels of the organiFation and that too is further differentiated within different types of organiFations. Some of the most common and well+known tests that an applicant has to go through areE a1 Aptitde te+t I /1 (er+onalit$ te+t+ - "his is common mostly for the higher levels of management are given to measure a
prospective employee7s motivation to function in a particular working environment. c1 Internal te+t- "o measure an individual7s activity preferences. d1 Grapholog$ Te+t - is an art wherein the individual7s handwriting is seen and accordingly his personality
traits are derived by the way he writes. e1 (ol$graph Te+t - ,re designed to ensure accuracy of the information given in the applications. f) Medical
"ests- Reveal physical fitness of the candidate. g1 Drg te+t - Help to ensure the presence of illegal or Performance+ affecting drugs. 2! Re)erence+ and /ac&grond chec&+ - Many employer re!uest names address and telephone numbers or
references for the purpose of verifying information and perhaps gaining additional background information on an applicant. 3! Selection Deci+ion - ,fter collecting data from all the preceding steps this is the most crucial step in the
entire selection process. "he main difference between the preceding stages and this is that former is used to short list the number of candidates and later one is to make a final decision from the pool of individuals who pass the tests interviews and reference checks. "he view of line manager will be generally considered in the final selection because it is he:she who is responsible for the performance of the new employee. "he HR manager plays a crucial role in the final decision. 4! (h$+ical E?a%ination - ,fter the selection decision and before the 'ob offer is made the candidate is
re!uired to undergo a physical fitness test. "he result of the medical fitness test is recorded in a statement and is preserved in the personal records. "he main ob'ectives of this test are as follows
"o detect if the individual carries any infectious diseases. "o determine whether an applicant is physically fit to perform the work. #t helps to determine if there are any physical capabilities which differentiate successful and less
successful employees. Medical checkup protects applicants with health defects from undertaking work that could be
detrimental to them or might otherwise endanger the employer7s property.
43
3ast but not the least such e&amination will protect the employer from workers compensation claims that are not valid because the in'uries or illness was present when the employee was hired.
2! .o/ o))er - "he ne&t step is selection process is Job offer for those applicants who had passed the previous
stage. Job offer is made through a letter of appointment. Such a letter usually contains the date by which the appointee must report on duty. ,ppointee must be given a reasonable time for reporting because it may be !uite possible that the appointee is employed in some other company or must be residing in some other city and for such other reasons. %ompany may also want the appointee to delay in 'oining the 'ob because the 'ob may re!uire undergoing some training program. 5ecency demands that re'ected applicants must be informed about their non+selection. "hese applicants7 data must be used for future references. 3! Contract o) e%plo$%ent - ,fter the 'ob offer is made and the candidates accept the offer certain
documents need to be e&ecuted by the employer and the candidate. Ane such document is ,ttestation form. "his form contains vital details about the candidate which are authenticated and attested by him:her which could be used for future reference. ,nother document is contract of employment. "his document contains the terms and conditions of employment like designation perks term of 'ob and so on. "he information written in the contract may vary according to the level of the 'ob. "he main drawback of the contract is that it is difficult to enforce them. 4! Conclding the +election proce++ - "he selection process will not end with e&ecuting the employment
contract. "he step is reassuring the candidates who have not been selected. Such candidates must be told that they were not selected not because of any serious deficiencies in their personalities but because their profiles did not match the re!uirements of the organiFation. 5! E*alation o) +election proce++ - "he broad test if the effectiveness of the selection process is the !uality of
the personnel is hired. ,n organiFation must have competent and committed personnel. "he selection process if properly done will ensure availability of such employees. ,udit must be conducted by the people who work independent of the HR department.
New %ethod+ o) +election2!48> degree +election or participati*e +election - $ormally supervisors administer the selection test and
interview. "hey 'udge the fit between the 'ob and the candidate. 2ut the employee skills knowledge and performance affect not only superiors but also subordinates and the employees of the same level. Hence the organiFation started involving the subordinates and the employees of the same level in administrating the employment tests and interviews. "his type of selection program is called 06= degree program. 44
3! E%plo$ee lea+ing- "he client company leases employees from a third party not on temporary basis but on
a full time basis and for long help. ,n interesting feature is that the client company need not perform personnel activities such as hiring compensation or record keeping. 9mployees working elsewhere are leased. "hey are not directly employed by the company where they are working. 9mployees not recruited by one client are sent to another. 4! Selection /$ in*itation - Management observes the performance of the key e&ecutives of competitors. #f the
performance of the key e&ecutives is e&cellent or the key e&ecutives are the change agents the management invites them to 'oin the organiFation by offering attractive salary and benefits. "hus the significant performance of the e&ecutives forms basis for selecting them by invitation. I
HRM ISSUES IN (U#IC SECTOR AN7S ac&grond-
,mong the / services classified under the services definition of @,"S banking is one of the prominent one. 2anking industry in #ndia is one of the most diversified and heterogeneous in terms of ownershipE co+ e&istence of private and public sector is one of the best e&les of peaceful co+e&istence of two entirely different cultural systems in the services sector. %oupled with that the country has a large number of foreign banks with altogether a different work culture and climate. "he simultaneous e&istence of so many types of work ethos systems and processes are truly symbolic of the great #ndian unity amongst diversity. $otwithstanding the fact that lots of efforts have gone into bringing technological ? process congruence it is really unfortunate that very little has been done on the human resource front in this regard. Cnfortunately public sector banking has been the biggest victim being governed by outdated ? prohibitive sets of government guidelines. "he Management often complains lack of ade!uate power and fle&ibilityE the "rade Cnions often look at any directional change with a sense of suspicionE ma'ority of the workforce remains in dream+world of the pre+liberaliFed scenario of work security. "he result is that public sector banks are least concerned about human resource management and reforms thereto and conse!uently remain under+productive. "hough renaming of Personnel departments to HR departments took place !uite a few years ago in some of the public sector banks the work processes ? culture in many of them till today remain outdated and are not in a position to meet changing e&pectations of the human talent within. "he scope of this is limited to address some of the fundamental issues in areas of human resource management front in the public sector banking in #ndia.
45
SUGGESTIONS AND RECOMMENDATIONS
"he management must commit itself to allocate ma'or resources and ade!uate time to training. 9nsure that training contribute to competitive strategies of the firm. 5ifferent strategies need different
HR skill for implementation. 3et training help employees at all levels ac!uire the needed skill. 9nsure that a comprehensive and systematic approach to training e&ists and training and retraining
are done at all levels on a continuous and on+going basis. 9nsure that there is proper linkage among organiFational operational and individual training needs. Skill based training (product:process training) should also be provided. 2esides !uestionnaire other methods of post training evaluation should also be used like interviews
self+diaries observation and supplement test. "he evaluation procedure must be implemented concerning trainer trainee and sub'ect.
46
Post training feedback has to be continuous and should also be taken from line manager:superior ? from peers to find out the effectiveness and valuation of training.
CONC#USION "oday banks focus on designing programs and process and services to attract develop and retain top talent. CtiliFing the latest technologies HR team has launched sophisticated online systems that provide the employees with details on benefits compensation special programs and internal 'ob opportunities. ,s a global employee population continues to grow these cutting edge activities are increasingly important to the deliver world+class HR solution. "he core function of HR5 in the banking industry is to facilitate performance improvement measured not only in terms of financial indicators of operational efficiency but also in terms of the !uality of financial services provided. actors like skills attitudes and knowledge of the human capital play a crucial role in determining the competitiveness of the financial sector. "he !uality of human resources indicates the ability of banks to deliver value to customers. %apital and technology are replicable but not the human capital which needs to be valued as a highly valuable resource for achieving that competitive edge.
4%
