A Project Work on
INTRODUCTION Since its inauguration by Mahatma Gandhi in 1919, the Union Bank of India has grown to become one of the country’s largest public sector financial institutions. With annual revenue of more than INR 6,000 crore (approximately US$1.3 billion), the bank is more than fulfilling Gandhi’s directive that India “should have the ability
to carry on a big bank, bank, to manage efficientl efficiently y crores crores of rupees rupees in the course of our national activities.” The The Union Union Bank Bank of India India now operates operates more more than than 2,000 2,000 branch branches es across across India, India, administered by approximately 80 offices, including 43 regional offices. To be the first first choice choice for custo customers mers by buildi building ng benefi beneficia ciall and lastin lasting g relat relation ionshi ships ps with with customers through continuous improvement, and in recent years the pursuit of this vision vision has seen it embrace embrace state-of state-of-the-the-art art banking banking technolog technology, y, includin including g online online bank bankin ing g and and paym paymen entt gate gatewa way y solu soluti tion ons. s. As a resu result lt,, the the bank bank has has earn earned ed a reputation for being technology-savvy and customer service-focused. Union Union Bank Bank has ensured ensured comple complete te custom customer er deligh delight, t, livin living g up to its image of, “GOOD “GOOD PEOPLE PEOPLE TO BANK BANK WITH” WITH”.. Antici Anticipat pative ive bankin bankingg- the the abilit ability y to gauge gauge the customer's needs well ahead of real-time - forms the vital ingredient in value-based services to effectively reduce the gap between expectations and deliverables. The key to the success of any organisation liew with its people. No wonder, Union Bank's unique family of about 26,000 qualified / skilled employees is and ever will be dedicated and delighted to serve the discerning customer with professionalism and wholeheartedness. wholeheartedness. We have choosenthis choosenthis bank due to its performance performance in banking banking sector. sector. It is public sector sector bank but from its efficie efficiency ncy it has proved the PSU are are not inefficient inefficient . By highes highestt per employ employee ee out put & busin business ess generati generation on it has made a stand stander er of effici efficienc ency y in privat private e banks banks also. also. Now we like like to known known what what policy policys s in Human Human Resources esources they adopted adopted to being being efficien efficientt like like this. this. through through the frame work in HR mana manage geme ment nt and and clea clearr visi vision on they they made made the the work work plac place e goal goal orie orient nted ed and and performance based.
CORPORATE CORPORATE MISSION M ISSION ✔
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A logical extension of the Vision Statement is the Mission of the Bank,which is to gain market recognition in the chosen areas. To To build build a sizeable sizeable market market share share in each of the chosen areas of busines business s throug through h effect effective ive strate strategie gies s in terms terms of pricin pricing, g, prod product uct packa packagin ging g and promoting the product in the market. To facili facilitat tate e a proce process ss of restr restruc uctur turing ing of branch branches es to suppo support rt a great greater er efficiency in the retail banking field. To sus sustai tain n the missio mission n object objective ive throu through gh harnes harnessin sing g techno technolog logy y driven driven banking and delivery channels. To promo promote te confid confidenc ence e and commit commitmen mentt among among the staff staff member members, s, to address the expectations of the customers efficiently and handle technology banking with ease
ORGANISATIONS HUMAN RESORCE STRUCTURE
The success success of any organization organization depends depends upon the structur structure e of business business control and capecityto take take best suited frame to develop develop a motivation to achive the the goals. We can see that it is a listed company and have well managed human planning. Now we can focus focus over over the flow of contro controll within within the organ organiz izati ation. on.It It has a lean lean three-tier structure. The delegated powers have been enhanced. The decentralised power structure has accelerated decision making process and there by Bank quickly responds to changing needs of the customers and has also been able to adjust with the changing environment.Bank has five General Manager Offices at Ahemedabad, Lucknow, Delhi, Mumbai, Calcutta and Chennai which function as an extended arm of corp corpor orat ate e offi office ce.. It also also has has two two Zona Zonall Offi Office ces s at Bh Bhop opal al and and Pu Pune ne.. Tier ier 3 comprises of 43 Regional Offices at various geographical center of the country.
Chairman & MD
Executive Joint Executive Director
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General CA Directore Divisional Workman Director Assistant Shareholder Shareholder Director Chief Manager
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Branch Maneger
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Officers
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Clerk
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Sub Staffs
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Selection and Recruitment
Director
Manager GM GM
With With so many many empl employ oyee ees, s, staf stafff admi admini nist stra rati tion on from from the the cent centra rall offi office ce pose posed d numerous numerous challenges, challenges,” ” said Laxman Rao Koka, deputy general general manager, manager, Human Human Resource Management Department, Union Bank of India. “Whenever we needed to manage any large-scale processes such as shifting of staff or promotions, promotions, The recruitment is done on the basis of forecasting of HR department. the need is decided on the basis of planning of expansion of branches and value added services introduced by the banks. The whole process is done by HR department by own and higher authority controls the official & Clark but the low end staff are recruited by regional level in part time or o r full time basis.
Internal recruitment The The permut permutati ation on based based recru recruitm itment ent is done done by the the intern internal al manage managemen mentt for fulfillment of vacancy due to retirement and new branches. The promotional exams are are taken taken for all levels levels in manage managemen mentt and subor subordin dinate ates. s. The perfor performan mance ce in working and application based knowledge is asked in interviews while the written exam is also taken for minimum qualification. The term performance appraisal is taken for this. one more feature is that the promotion is also given on the basis of seniority. While the candidates are send other zonal according staff needs.
External recruitment When the required nos. are not fulfilled by internal recruitment bank makes process for external external recruitm recruitment ent.. The The bank bank belong belongs s to PSU so that that it has to follow follow the guideline guideline of Govt. For the purpose. purpose. The bank has to make make a public public advertisement advertisement and disclose all facts, term & conditions. The selection is made on the basis of the candidate’s performance Candidates passing passing in both the Written Written Test Test and the Personal Interview Interview be finally ranked in a descending order on the basis of the aggregate marks obtained in the Written Test & Personal Interview under the respective GEN / SC / ST / OBC Category. For the the purp purpos ose e they they does doesno nott tak take any any serv servic ice e of mana manage geme ment nt cons consul ulta tant nt,, management institute, recommendation, deputation personal. The selection process like (a) Job Analysis (b) Initial Initial screaming (c) Application Bank (d) Test (e) Interview (f) Refrence Check (g) Medical Final (h) Job Offers all are done by bank alone. The lower end staffs can be directly taken by nodal office. I
Training Training and Development D evelopment Union bank has one of the best training systems in India. The training system of Union Union Bank has been awarded awarded the prestigi prestigious ous Golden Golden Peacock Peacock National Training raining Award Award instituted by the Institute of Directors, New Delhi for the best training system
in the Countr Country y. Prese Presentl ntly y the train training ing struct structur ure e consis consists ts of the Staff Staff Colleg College e at Bangal Bangalore ore,, and seven seven center centers s in various various parts parts of the countr country y. The train training ing is designed, delivered and assessed, based on systems suggested and put in place by overse overseas as consu consulta ltants nts M/s. M/s. Vins Vinstar tar Limite Limited d (AGL (AGL Group Group)) of New Zealan Zealand. d. These These systems have been tested and refined by practical application. At Union Bank, the training facilities offer an admirable approach to these opportunities. In our pursu pursuit it of achiev achieving ing highe higherr standa standard rds s they they have have furthe furtherr upgra upgraded ded our our systems and sized up to 'international norms'. After a rigorous audit, in February 2001, the College is awarded ISO 9001 certification (for Design and Development of Customized Training Programs) by Det Norske Veritas, of the Netherlands. They are the only Bank to obtain ISO certification for the training system. They have devised an outcome-oriented training process. Each and every module is designed so that learning takes place through interaction. It is also ensured that this learn learning ing is transl translate ated d into into action action at the the work work place place.. There There train training ing progra programs ms actually deliver value to the Organization. Post course surveys conducted by us have confirmed this. . Physical, mental, spiritual and social upgradation of self for an individual and building of teams of performers of outstanding Organizations take place in the most natural way. Seldom has there been a time in which it has been necessary for Organizations to attune Attitudes, upgrade Skills and kindle sparks of Knowledge in their human force to the extent and with the rapidity required today. Our 'facilitators' to learning - "Faculty" or "Trainers" in the common parlance- are exper experien ienced ced bank bank offic officers ers with with many many years years of exposu exposure re in the the entir entire e gamut gamut of banking. All the facilitators have been through an intensive orientation program on adult adult learn learning ing proces processes ses drawn up by Vinst Vinstar ar of New Zealan Zealand. d. They They are are also also exposed periodically to updating of skills and awareness in leading institutions in the country country.. Some have also been nurtured with professi professional onal training training abroad abroad at premiere institutions like Columbia Business School, New York and the Manchester Business School, England. THE THE PROGR PROGRAMS AMS Curre Currentl ntly y the Colleg College e is runnin running g traini training ng progr programs ams in the followin following g discipli disciplines: nes: 1.Intern 1.Internatio ational nal Banking Banking 2.Credit 2.Credit 3.Informa 3.Information tion Technology echnology 4.Ge 4.Gene nera rall Bank Bankin ing g 5.Ma 5.Mark rket etin ing g and and 6.Ma 6.Mana nage geme ment nt and and huma human n reso resour urce ce develo developme pment. nt. Union Union Bank Bank is also also organi organizin zing g execu executiv tive e educat education ion progr programs ams in associ associati ation on with with Icfian Icfian Bus Busin iness ess Schoo Schooll - an arm of the Instit Institute ute of Chart Chartere ered d Financi inancial al Analys Analysts ts of India, India, Hyderab Hyderabad. ad. In this this stream stream follow following ing progr programs ams are are offered:1.Finance offered:1.Finance for Non-Finance Non-Finance executives executives 2.Treasury 2.Treasury and forex management 3.Software3.Software- project management 4.The Service edge - improving service quality
Motivation What What motiva motivates tes people people is an importa important nt consi consider derati ation on for captai captains ns of indust industry, ry, commerce and the public sector - in fact anyone who works with other people since people are central to the success of organizations. Leadership and Motivation explores the subject in depth. What motivates people is an important consideration for captains of industry, commerce, and the public sector -- in fact anyone in a
position position of leadershi leadership. p. Leadersh Leadership ip and Motivation Motivation explores explores the subject subject in depth. depth. Adair reassesses the theories of Herzberg and Maslow -- still the major contributors to our understanding of motivation. In mid-2003, as part of its corporate vision to promote confidence and commitment among its 27,000-plus employees, Union Bank began a major review of its human resource resources s (HR) administ administratio ration n systems. Those goal was to provide provide an error error-free -free,, user-friendly, simple, and 24/7-accessible ERP solution to the bank and also to the employees employees,, with a better better MIS facility facility and employee employee self-serv self-service, ice,” ” explained explained Rao. Rao. “Such an ERP solution needed to be amenable for modification as required by the users; it needed to have the facility to upload the data from the existing application for interfaci interfacing ng with the bank’s bank’s financia financiall package.” package.” PeopleSoft PeopleSoft Enterprise Enterprise Human Capita Capitall Manage Managemen mentt applic applicati ations ons provi provided ded the answer answer.. The The system system,, known known as “Union Parivaar”, helps to identify human capital, c apital, measure its capability, The structur structure e given by the bank was like this. this. it clears the need of team work to achieve the goal. The structure further help to make co-ordination between different level level of manage managemen mentt and effect effective ive commun communica icatio tion n system system also. also. A centra centraliz lized ed database vastly improved how common HR processes were managed. Employees gained self-service access via a user-friendly Web interface, ensuring they could quickly and accurately specify their HR needs and receive a timely response.
.Wages
and salary
The money motivation is the biggest factor that comes under the basic for job. The wages & salary are decided by banking authority generally. We find that wages are given to daily based staffs. It is given to lower end staffs. The salary is decided by authority, but the value added is the main features of the organization. The French benefit and added services as maintenance as well as allowance are also given. To find the salary & extras Office wear allowance
Medical:- 75% of total expense expense to family ,100% to to employee Yearly Rs, 1000 check-up allowance Fuel:- 2 wheeler- 15 liter of petrol 4 wheeler – 25 liter of petrol HRA allowance:allowance:- 50% of basic pay max. Depends upon class of town Children education:education:- as per income tax limit up to 2 children DR allowance:allowance:- accordance to real expense expense
The organization also offers its employees a trip within India in every 4 year. year. While executives executives have options for world tour also. The salary depends upon these factors. Rank within organization ○ ○ Scale in management level Nature of job ○ ○ Working condition Years of working ○ ○ Retirement option choosen
Performance Appraisal By the same token, appraisal appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter. The advocates of this approach say that organizations organizations must have a process by which rewards - which are not an unlimited resource - may be openly and fairly distributed to those most deserving on the basis of merit, effort and results. There is a critical need for remunerative justice in organizations. organizations. Performance appraisal whatever its practical flaws - is the only process available to help achieve fair, decent and consistent reward outcomes.
Performance Performa nce appra appraisal isal ta tak kes in into to ac acco coun untt th the e pa past st pe perf rfor orma manc nce e of th the e employees and focuses on the improvement of the future performance of the employees. attempt to provide an insight into the concept of performance appraisal appra isal,, the metho methods ds and appr approach oaches es of perfo performanc rmance e appra appraisal isal,, samp sample le performanc perfo rmance e appra appraisal isal forms and the appra appraisal isal software’s software’s avai availabl lable e etc. An attempt has been made to study the current global trends in performance appraisal. They are well aware about fact about pay accordance the work. Here the salary is fixed but promotion depends upon the performance book. Think about everything that performance appraisals can achieve and contribute to when they are properly managed, for example: •
performance measurement measurement - transparent, short, medium and long term
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clarifying, clarifying, defining, redefining priorities and objectives
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motivation through agreeing helpful aims and targets
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motivation though achievement and feedback
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training needs and learning desires - assessment and agreement
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identification identification of personal strengths and direction - including unused hidden strengths
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career and succession planning - personal and organisational
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team roles clarification and team building
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organisational organisational training needs assessment and analysis
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appraisee and manager mutual awareness, understanding and relationship resolving resolving confusions and misunderstandings reinforcing and cascading organisational philosophies, values, aims, strategies, priorities, etc delegation, additional responsibilities, responsibilities, employee growth and development counselling counselling and feedback manager development - all good managers should be able to conduct appraisals well - it's a fundamental process the list goes on..
Through out the prosier they judge for these qualities for appraisal
Commercial judgment Product/technical knowledge Time management Planning, budgeting and forecasting Reporting and administration Communication skills Delegation skills IT/equipment/machinery IT/equipment/machin ery skills Meeting deadlines/commitment deadlines/commitments s Creativity Problem-solving Problem-solving and decision-making Team-working and developing others Energy, determination and work-rate Steadiness under pressure Leadership and integrity Adaptability, Adaptability, flexibility, and mobility Personal appearance and image
The bank recognizes that customer’s expectation/ requirement/ requirement/ grievances can be better appreciated through personal interaction with customers by bank’s staff. Customer Day will be observed by all our branches on 15th of every month where customers can lodge their complaints personally and have their redressal redressal on the spot. Fortnightly, Fortnightly, customer service committee meetings will be held in the branches wherein customers can also voice their grievances/ suggestions for improvement in customer service and on the spot redressal will be ensured by the branches. Many of the complaints arise on account of lack of awareness among customers about bank services and such interactions will help the customers appreciate banking services better. better. For the bank the feedback from customers will be valuable input for revising its product and services to meet customer requirements.
Introduction YES BANK, India’s new age private sector Bank, is an outcome of the professional entrepreneurship entrepreneurship of its Founder Founder and his highly highly competent top management management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the “Future Industries of India”. YES BANK is the only Greenfield license awar awarde ded d by the the RBI RBI in the the last last 14 year years, s, asso associ ciat ated ed with with the the fine finest st pedi pedigr gree ee investors. YES BANK has fructified into a “full service” commercial Bank that has steadily steadily built built Corporate Corporate and Instituti Institutional onal Banking, Banking, Financial inancial Markets, Markets, Investment Investment Banking, Corporate Finance, Business and Transaction Banking, Retail and Wealth Management business lines across the country, and is well equipped to offer a range of products and services to corporate and retail customers.
A key strength and differentiating feature of YES BANK is its knowledge driven approach, which goes beyond the traditional realm of banking, and helps adoption of a diagnostic and prescriptive approach towards superior product structuring.YES BANK pursues pursues a strong strong Employee Employee Value Proposi Proposition tionof of ‘Creatin ‘Creating g & Sharing Sharing Value’, alue’, with with a vision vision to build build an organ organis isati ation, on, driven driven by Profe Professi ssiona onall Entre Entrepr prene eneurs urshi hip, p, wher where e all all YES YES BA BANK NK’e ’ers rs trul truly y part partne nerr to dire direct ct,, mana manage ge and and acce accele lera rate te the the development of YES BANK as the Young Young and Dynamic Bank of“Emerging India”. It is this untiring and relentless passion for Professional Entrepreneurship that has resu resulte lted d in YES BANK being being recent recently ly ranke ranked d as the THIRD THIRD Best Bank Bank in India India by Business Businessworld world.. YES BANK also received received the Continuo Continuous us Innovatio Innovation n in HR Strategy Strategy award award at The Indiatimes Indiatimes Mindscape Mindscape Employer Employer Branding Branding Awards Awards 2007. YES BANK recognizes that the only real source of sustainable competitive advantage for an organization is the power of its High Quality Human Capital. Therefore, we foster a lead leader ersh ship ip mind mindse sett that that embr embrac aces es meri merito tocr crac acy y as a vita vitall forc force e to rewar eward d performance and exceptional competency. The financial highlights of Yes Bank India are: •
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Net Net Prof Profit it afte afterr Tax is of Rs.9 Rs.944 44 mill millio ions ns in the the fina financ ncia iall year year 20 2007 07 as compared to a Net Profit of Rs.553 millions in the financial year 2006. Total income (Net Interest Income plus Non Interest Income) is of Rs.3,659 millions in the financial year 2007 as compared to Rs. 1,852 millions in the financial year year 20 2006 06,, repr repres esen enti ting ng an incr increa ease se of 98 98% % and and Oper Operat atin ing g Prof Profit it is of Rs.1,724 millions in the financial year 2007 as compared to Rs. 991 millions in the financial year 2006, representing representing an increase of 74%. Yes Yes Bank In India India has been ranked ranked second among the new private sector banks and first on the key parameter of growth among sixty-four Private, Public and Foreign Banks in India. Yes Bank India have adopted the globally recognized Six Sigma and ISO service standards.
Vision YES YES BANK BANK has a vision vision to champi champion on ‘Resp ‘Respons onsibl ible e Bankin Banking’ g’ in India India where where the the concepts of Corporate Social Responsibility and Sustainability are embedded in the DNA DNA of the the orga organi niza zati tion on and and inte integr grat ated ed in its its Bu Busi sine ness ss Focu Focus. s. YES YES BA BANK NK is commit committed ted to adding adding long long term term value value to societ society, y, to diffe differen rentia tiate te its itself elf in the marketplace based on a strong 'sustainability mandate' and to build in flexibility and openness as part of its core strategy.
Objective •
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To build a strong employer brand. To attain a preferred employer status in the Banking and Financial Services industry. To ensure that the Bank is able to attract, engage and retain high quality human capital for its long-term success.
Building a high performance culture is another key prerogative of the HR function. We envisage envisage a credible credible and transpar transparent ent performan performance ce managemen managementt process process that helps in aligning individual goals with corporate objectives, both quantitative and qual qualit itat ativ ive, e, and and enco encour urag ages es cros cross s sell sell and and team eam sp spir irit it.. Our Our perf perfor orma manc nce e manage managemen mentt proces process s will will be suppor supported ted by a robust robust rewar rewards ds and recogn recogniti ition on strategy strategy for each business business and a market market based based compensat compensation ion structure structure that is flexible, responsive and helps retention through asset building and wealth creation for top performers. Our Promoters believe that a broad employee ownership of the shares of the company has a positive impact on performance. Therefore, our stock option scheme covers a large cross-section of our employees.
The Affirmative Mission To To acquire acquire large large corporate, corporate, niche niche middle-mar middle-market ket and segment-ba segment-based sed clients clients and significant significant number of Retail customers within 5 years of operations. The main feature that differentiates Yes Bank India in the banking industry is their use of knowledge bankers who are industry experts in various sectors of Indian economy thereby helping their valued customers with in-depth knowledge of these sectors. In general the products and services offered by the Yes Bank are: •
Corporate and Institutional Banking
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Financial Markets
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Investment Banking
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Business and Transactional Banking
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Retail Banking
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Private Banking
Human resource "We believe that high quality Human Capital is the biggest asset in an organization and have been focused on attracting and retaining the best talent from India and abro abroad ad.. We belie elieve ve that that best best perf perfor orma manc nce e can can only only be achi achiev eved ed thro throug ugh h empowered employees and therefore, we offer all YES BANKers an opportunity to work in a growth environment with a young work force." - Rana Kapoor, CEO and Managing Director, YES BANK, in 2007. "The "The comp compan any y beli believ eves es that that empl employ oyee ees s are are the the key key to buil buildi ding ng a stra strate tegi gic, c, comparat comparative ive advantage advantage and enabling enabling its busines business s strategy strategy of knowledg knowledge-bas e-based ed banking and service differentiation."4 differentiation."4 - Financial Express5, in 2004.
The banks strongest point is its human capital. Because the bank believe to provide the services of best professionals professionals in industries. Our differentiated differentiated view of banking as
a knowledge-based industry has ensured that our Bankers are also industry experts in sectors like Food & Agribusiness, Life Sciences, Telecommunications, Media & Technolog echnology, y, Infrastru Infrastructur cture, e, Retail Retailing ing & Textiles extiles and Select Select Engineerin Engineering. g. These These Knowl Knowledg edge e Banke Bankers rs offer offer inval invaluab uable le and in-dep in-depth th insigh insights ts into into these these sector sectors, s, thereby helping our clients to develop great ideas and nurture them to fruition.
Yes Bank one of the new generation private sector banks and its unique Human Capital initiatives which helped it attract and retain the best talent in the industry. Desp Despit ite e bein being g a late late entr entran antt in the the Indi Indian an bank bankin ing g indu indust stry ry,, Yes Bank Bank had had established itself as a top bank in India. Yes Bank's unique 'knowledge banking' approach and its emphasis on human capital helped it differentiate itself from its competitors. The case also discusses Yes Bank's effort toward establishing a strong employ employer er brand brand and proje projecti cting ng its itself elf as an 'aspir 'aspirati ation' on' employ employer er in the Indian Indian banking sector. sector. Yes Bank's various innovative HR initiatives helped it institutionalize institutionalize a performance culture and entrepreneurial spirit in its employees. Yes Bank's focus on human capital initiatives helped it in succeeding in establishing itself as a key player in the Indian banking industry within a short span of time. . The knowledge banking approach was its main pillar of differentiation and, using this, it provided specialized services to various sunrise industries through domain experts.
HR CHALLENGES Being a startup, it had to not only take care of infrastructure and lease agreements for for sett settin ing g up bran branch ch offi office ces, s, etc. etc.,, but but also also of the the recr recrui uitm tmen entt of staf stafff and and management, which in itself could be an overwhelming task. From an early stage, the promoters of Yes Bank focused on human capital as an enabler of the bank's business strategy of differentiating itself from its competitors...
Focus The focus of the Human Resource Resources s function function at YES BANK is to build a world-cla world-class ss team, based on professional recruitment methodologies, and attract the best talent in the industry. While our immediate hiring has primarily been lateral, to bring the relevant skills, competencies and experience into the organization, our focus is on building the requisite talent bench strength to support the business plans of the Bank. We are making a concerted effort towards building learning and development solutions that continuously continuously enhance employee value, in line with the growth plans of the Bank.
YES YES BANK BANK pursue pursues s a stron strong g Employ Employee ee Value alue Propo Proposi sitio tionof nof ‘Crea ‘Creatin ting g & Shari Sharing ng Value’, with a vision to build an organisation, driven by Professional Entre Entrepre preneu neursh rship, ip, where where all YES BANK’e BANK’ers rs truly truly partne partnerr to direct direct,, manage manage and acce accele lera rate te the the deve develo lopm pmen entt of YES YES BA BANK NK as the the Young oung and and Dyna Dynami mic c Bank Bank of“Emerging India”.
Workforce Profile Distribution 1. Gender Educational Qualifications:
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3. 4. Experience profile.
Age profile The age profile captures the age range of employees
YES
BANK
Sourcing Human Capital
The bank had aggressive plans for the future and planned to have 150 branches by 2010 and 400 branches by 2012. 2012. Kapoor Kapoor contende contended d that the banking banking industry industry in India was 'over branched' and 'under serviced' and, as such, there was tremendous scope for Yes Bank's growth as it was trying to take care of the latent needs of the customers with highly skilled and involved employees. In keeping with its growth plans, the bank expected to increase its employee strength to 10,000 by 2010. "In the next five years [i.e. by 2012], my team and I want to build an institution and not just a business... business...
Recruitment and selection Being a startup, it had to not only take care of infrastructure and lease agreements for for sett settin ing g up bran branch ch offi office ces, s, etc. etc.,, but but also also of the the recr recrui uitm tmen entt of staf stafff and and management, which in itself could be an overwhelming task. From an early stage, the promoters of Yes Bank focused on human capital as an enabler of the bank's business strategy of differentiating itself from its competitors... Initially, the company relied heavily on employee referrals, consultants, and webbased hiring to source talent. The bank worked out its recruitment strategy with the help of consultants Kom Ferry, ABC Consultants, Planman Associates, and Emmay HR. HR. Kapoor Kapoor said, "As a start-up, start-up, the immediate immediate deliverable deliverable of the HR team is to attract high quality talent and build a strong Yes Yes culture based on the core values of the bank. In the medium term, the focus will be to create an organization that is able to engage and nurture top-notch human capital so that we are able to achieve industry leadership through the quality of people who work at Yes Bank." Yes Yes Bank commissioned senior-level senior-level recruiting to Kom Ferry, but Kapoor involved himself in the process from a very early stage to explain his vision to potential recruits. The The bank bank sought sought to utiliz utilize e the expert expertis ise e of highly highly quali qualifie fied d and experi experienc enced ed executives executives to oversee the bank's initiatives in various business segments.. Retaining talented employees in the organization was also one of its main focuses because of the huge scarcity of talented employees in the financial services sector
in India. India. It realiz realized ed that that in order order to achiev achieve e its objecti objective ve of being being a prefe preferr rred ed employer, it had to establish es tablish a strong employer brand It, therefore, strove to build an enterprise based on its Employee Value Proposition (EVP) of 'Creating and Sharing Value' that would help it emerge as the "Young and Dynamic Dynamic Bank" Bank" of the developin developing g Indian Indian economy economy.Wi .With th this proposi proposition tion,, the bank aimed to transmit its internal brand from its employees to the external brand i.e. to its its cust custom omer ers. s. The The crux crux of this this prop propos osit itio ion n was was that that the the bank bank expe expect cted ed its its empl employ oyee ees s to abso absorb rb orga organi niza zati tion onal al valu values es so that that the the same same valu values es were were communicated to the customers The base of the whole selection process is to attract the best talent available. That helps helps to expert expertis ise e the the servic services. es. The recru recruitm itment ent depen depends ds upon upon the need need and replacement of employees. Both internal and external sorces are taken in account for the purpose. In external sorces they go to consultancy, advertisement , refrence, and institutions.
Motivation Yes Bank envisaged that for an individual to work with the organization in perfect synergy, his/her goals had to be linked with the goals of the organization. This proc proces ess s of alig aligni ning ng indi indivi vidu dual al and and orga organi niza zati tion onal al goal goals s was was term termed ed as the the perf perfor orman mance ce mana manage geme ment nt proc proces ess. s. The The main main obje object ctiv ive e of thes these e inno innova vati tive ve perfor performan mance ce manage managemen mentt practi practices ces was to encou encourage rage the the employ employees ees to think think innovatively The bank also aimed at building a culture to inculcate professional professional entrepreneurship entrepreneurship in them them to make make thems themselv elves es and the shareh sharehold olders ers prosp prosper erous ous.. The The push push for a perfor performan mance ce cultu culture re at Yes Bank Bank came came right right from from the top and was refle reflecte cted d in Kapoor's leadership style. "I follo follow w an 'easy 'easy-ti -tight ght'' leader leadersh ship ip style style - 'easy' 'easy' for innova innovatio tion n and 'tight 'tight'' for execution. And lastly, I believe in 'stretch' - driving the frontiers and inspiring on moving ahead," said Kapoor Yes Bank urged people to join the bank on the basis of its values values of empow empoweri ering ng employ employees ees.. The The logic logic behind behind this this was that that employ employee ee ownership would lead to the success of the bank..It, therefore, strove to build an enterprise based on its Employee Value Proposition (EVP) of 'Creating and Sharing Value alue'' that that woul would d help help it emer emerge ge as the the "You "Young ng and and Dyna Dynami mic c Bank Bank"" of the the developing Indian economy. The main motivatio motivational nal factor is the leadership leadership within within the organization organization and zeal among managers to work with a bank of such kind. Who is known as most dynamic & expect bank in industry. industry. We will now try to understand the motivational factors by chart.
Remuneration The The bank bank provi provides des exper expertis tise e servic services, es, so it need need quali qualifie fied d person persons. s. They They try to attract best brains. They provides comparative remuneration to its employees. We will now discuss what method they adopt for the purpose of deciding the salary. Calculation of worth of a job – they evaluate the impotence and responsibility of job and decide the payment that should be offered. The ability factor also taken care in deciding the salary. Comp Compet etit itiv iven enes ess s – it is a majo majorr fact factor ored ed that that deci decide de the the pay pay scal scale e of employee. While leading player like HDFC & ICICI is present in market the bank decides a attractive package for his employees. Values of French benefit – the employee whom the additional benefits are high they are made lower pay package. While the research team are given higher packages. Basis Basis of increa increase se in salary salary—(a —(a)) the perfo performa rmance nce based based salary salary is given given to staffs staffs accord accordanc ance e to their their outpu outputt they are are compens compensate ated d (b) Leng Length th of services is also a factor , the experienced gets more pay then fresher’s. Percept Perception ion of equity—th equity—the e bank knows that if any employee employee finds that he is discriminated on pay or getting same salary while generating same output he will switch from job. So they evaluate the need of appraisals.
Retaining talented employees in the organization was also one of its main focuses because of the huge scarcity of talented employees in the financial services sector in India. India. It realiz realized ed that that in order order to achiev achieve e its objecti objective ve of being being a prefe preferr rred ed employer, it had to establish a strong employer brand. It becomes necessary to cope up with the other banks to be being updated for best human resources supply and minds.
Performance Appraisal and bank prospects At YES BANK, strongly believe that for an organization to appropriately convey its External Brand values to its existing and potential customers, the same values must tran transl slat ate e into into the the Inte Intern rnal al Bran Brand, d, The The imag image e that that empl employ oyee ees s have have of the the organization organization as an employer. employer. Thereby enabling employees to imbibe the core values of the organization and adequately convey the same to its customers. At YES BANK Employer Employer Brand is represent represented ed as the Employee Employee Value Value Proposi Proposition tion (EVP). The EVP is integrally linked to the Bank's core values, and all HR systems and processes are designed designed to convey the EVP to the Bank's employees.
Yes Bank envisaged that for an individual to work with the organization in perfect synergy, his/her goals had to be linked with the goals of the organization. This
proc proces ess s of alig aligni ning ng indi indivi vidu dual al and and orga organi niza zati tion onal al goal goals s was was term termed ed as the the perf perfor orman mance ce mana manage geme ment nt proc proces ess. s. The The main main obje object ctiv ive e of thes these e inno innova vati tive ve perfor performan mance ce manage managemen mentt practi practices ces was to encou encourage rage the the employ employees ees to think think innovatively. The bank also aimed at building a culture to inculcate professional professional entrepreneurship entrepreneurship in them them to make make thems themselv elves es and the shareh sharehold olders ers prosp prosper erous ous.. The The push push for a perfor performan mance ce cultu culture re at Yes Bank Bank came came right right from from the top and was refle reflecte cted d in Kapoor's leadership style. "I follo follow w an 'easy 'easy-ti -tight ght'' leader leadersh ship ip style style - 'easy' 'easy' for innova innovatio tion n and 'tight 'tight'' for execution. And lastly, I believe in 'stretch' - driving the frontiers and inspiring on moving ahead," said Kapoor Yes Bank urged people to join the bank on the basis of its values values of empow empoweri ering ng employ employees ees.. The The logic logic behind behind this this was that that employ employee ee ownership would lead to the success of the bank...
The bank had grown at a tremendous pace since its inception. In the first two quarte quarters rs since since it began began operat operation ions s in (2004(2004-200 2005) 5) its balan balance ce sheet sheet stood stood at Rs.1,300 million, which made it one of the most successful ventures in India. Yes Bank Bank starte started d its opera operatio tions ns with with just just 250 employee employees s and two branch branches. es. As of October 2007, it was operating with 60 branches and 3,263 employees. The bank's business size was Rs. 800 million in December 2006. This was significantly higher than the growth reported by other private sector banks with the same background... The bank had aggressive plans for the future and planned to have 150 branches by 2010 and 400 branches by 2012. 2012. Kapoor Kapoor contende contended d that the banking banking industry industry in India was 'over branched' and 'under serviced' and, as such, there was tremendous scope for Yes Bank's growth as it was trying to take care of the latent needs of the customers with highly skilled and involved employees. In keeping with its growth plans, the bank expected to increase its employee strength to 10,000 by 2010. "In the next five years [i.e. by 2012], my team and I want to build an institution and not just a business... business...
