HUMAN RESOURCES DEVELOPMENT SBI State Bank of India is the nation's largest and oldest bank. Tracing its roots back some 200 years to the British East India Company (and initially established as theBank of Calcutta in 1806), the bank operates more than 15,000 branches withinIndia, where it also owns majority stakes in six associate banks. State Bank of India (SBI) has more than 80 offices in nearly 35 other countries, includingmultiple locations in the US, Canada, and Nigeria. The bank has other unitsdevoted to capital markets, fund management, factoring and commercial services,credit cards, and brokerage services. The Reserve Bank of India owns about 60%of 60% of Stat Statee Bank Bank of Indi IndiaHuman aHuman Resour Res ources ces Develo Dev elopme pment nt Depart Dep artment ment HRDD Vision The Vision of the Human Resources Development Department (HRDD) isessentially to facilitate the Bank to carry out central banking activities, i.e.(i) To create an enabling environment to enhance the efficiency of the organization(ii) To draw out from our staff the very best by a system of proper placements,incentives, &(iii) To create an atmosphere of trust, a certain security of expectations and afeeling that the organization cares about the well being and personal aspirations of the staff. This would help align personal aspirations with professional goals andhelp enhance efficiency HRDD Mission The Mission of HRDD is to create a facilitating environment to enhance theefficiency of the Bank; to empower the staff so as to draw out the latent potential;and to catalyze conditions for a more wholesome quality of life on the work as wellas personal front.Functions of HRDDa) To evolve HR policies on
y Recruitment: Recruitment: For the decade as a whole, for the SBI group, group, 25.4% of thestaf thest aff f were officers, 51.0% were clerks, and 23.6% were subordinate staff.The composition of staff was the same for the nationalized banks with27.9%
of staff being officers, 50.7% being clerks, and 21.4% beingsubordinate staff. y Performance and Potential Appraisal : The promotion to a higher management level is best thought of through the lens of a tournament model(Lazear and Rosen, 1981) where the prize in terms of compensation for a position in the hierarchy is fixed in advance and is independent of absolute performance. In effect, an employee is promoted to the next higher level/grade not because he is good, but because he is better than everybodyelse at the current level/grade. y Placement : y Promotion and Career Progression : y Out of Turn Promotion/ Increment to Sports Person y Industrial Relations y Deputation / Secondment y Retirement and Voluntary Vacation y Motivation y Training Establishments
y Mobility (Transfer/Rotation) y Remuneration and Reward Mechanism y Staff Welfare y Communication y Organisational Development y Training and Skills Upgradation (Policy and Implementation, both) y Medical b) Other than policy aspects y Interface with other institutions, government, central banks, etc. on HRDissues y To maintain up to date database on human resources in the Bank andundertake analytical studies and ongoing research on different manpower related issues y To make ongoing review of the appraisal system in order to make it aneffective tool for HRD policy management
y To install and implement an effective counseling system y To design career and succession plans y To review and revitalize the training functions y Summer Placement y Formulate and administer the Staff Suggestion Scheme y Publication of House Journal, Without Reserve Comparative Analysis ICICI is private global bank its HR practices are totally different SBI no.1 publicsector bank of India. Package given by ICICI is more enough than salaries provided by SBI. Incentives and benefit policies of ICICI and SBI is totallydifferent. Selection process of ICICI is very lengthy and cost consuming. Selection process of SBI is two levels ± 1). PO level and, 2). Administrative Officers. Thetraining and development policies of ICICI is much better than SBI. There is notmuch emphasis on training and development at SBI. RECOMMENDATIONS Recommendations for ICICI: 1. Simplify its recruitment and selection process. 2.
Reduce salaries of employee and increase the incentives and benefits part intheir compensation. Recommendations for SBI: -1. Competition in banking sector increases due to private banks. Private sector banks giving higher salaries to attract the talent. Thus it is necessary for SBIto increase its salaries.2. Give more emphasis on training and development of employees.3. Increase motivation by giving extra benefits. Comparative Study: SBI and HDFC The State Bank of India, the largest public sector bank of India, offered voluntary scheme (VRS) to trimits workforce as recommended that the banking industry was overstaffed. SBI implemented a VRS or
the computerization of the bank. The introduction of this scheme leads tostrong protests and SBI faced with a prospect of losing its talented employees and be left with lessefficient employees (2007). The newprogramme, Citizen SBI, aimed at attitudinal change and transformation of its employees through aseries of human resources -a 100-dayprogramme to increase communication skills of its managers, sees the new project a extension of theprevious one.The Housing Development Finance Corporation Limited (HDFC) staffing needs continued to increaseparticularly in the retail naming businesses in line with the business growth. HDFC aims to facilitate acombination of human resource and technology in disseminating their banking functions and practices (2002). The growth of the employee base was in line with the growth in the banks business anddistribution both inorganically as
well as organically.The Bank continues to focus on training its employees on a continuing basis, both on the job andthrough training programs conducted by internal and external faculty. The Bank has consistentlybelieved that broader employee ownership of its shares has a positive impact on its performance andemployee motivation. HDFC Bank lists their people as one of its stated values. The Bank believes inempowering its employees and constantly takes various measures to achieve this (2009). Recommendation and suggestions: The universality of the HR model maintains the practices are universally associated with highperformance. The high commitment of high performing practices, have better financial returns (2002).1. What should be the size of workforce required?Assuming an average productivity of the staff the planned size of the workforce can be determinedeasily.2. What would be major functional areas for which personnel would be required? The next stage is to break-down the personnel requirement into different functional areas. (eg fieldoperations, accounts, finance, MIS, IT, Internal Audit, planning, legal). This would require lots of foresight to imagine the complications involved as the scale of operations increase. (For example at asmaller scale of operations one may not require a specialized legal functions, but as the scale of operations would increase, increasing litigations and compliance issues would require that the MFI has aspecialized legal functions.). The number of staff required in different functional areas can bedetermined by using certain assumptions and thumb rules. (for example each set of 10,000 clients, theMFI would require an Internal Auditor).3. What would be the characteristics of personnel?This would require further analysis and foresight. The MFI would have to further breakdown thefunctional areas into different levels and will have to identify the skills required on the basis of theanticipated job description. For example, the Internal Audit department would require some AuditAssistants, some Audit Supervisors and one Internal Auditor. Each of these categories of people willhave a different job description and skill requirements.4. Where would we find appropriate
people?For each category of personnel, the MFI should try to find the target pool from which personnel will beselected. For example, the target pool for the field staff could be the fresh graduates in the local area.The target pool for the supervisory staff could be the existing field staff cadre from the same MFI or thesupervisory staff from the other MFIs. It is, however, not necessary to target people from themicrofinance sector only. For example the finance positions can be filled up by experienced financeprofessionals from any industry.5. What kind of training and inductions systems should be there for the staff?Training and induction system for the staff will have to be customized for each category and level of staff. For example a field staff may require training in processes and procedures but a person joining atthe middle management level would require training in operational and financial analysis. Exposurevisits could be planned for the personnel who are new to the microfinance sector. A combination of in-house and external trainings as well as exposure visits can also be planned.6. How would we retain our experienced staff?Employee retention is increasingly becoming an issue with the MFIs as competition in the market isincreasing. MFIs will have to plan and prepare a strategy for retention of its staff. This would be acombination of the reward structure, career progression matrix and other employee developmentinitiatives. Recruitment, training and deployment will have to be in accordance with the HR plan HRM Questions for Banking Sector Role of HR Manager in Bank-Perception from both perceptivei.e. HR Manager & the Management Interviewer:Name of Respondent:Name of Institution: About the Institution: 1.Can you briefly describe the role/listed functions of the HRM depart ment at your bank?2.What has been some of the changes that have been brought about to your particular institution due to the HRM dept.?3.What were things like before HRM was given as much importance as it is now?4.Its contributions aside, could
you pl ease l ist some o f the new is sues/pro blems th at have arisen from a management perspective due to the HRM Dept., if they exist.5.Ho w is p erf orma nce meas ured for HR in your ba nk ? 6.What types of opportunities are available for the advancement/development of human resources?7.What are the criteria for the selection and recruitment for job?8.What have been the primary factors in the changing perspective towards Huma nResource Management?9.To what extent is the human resour ce staff/de partment involved in strateg ic organizational decisions?10.To what extent do the employees come to you concerning their problem? Mostlywhat problem are they?
11.In your opinion, what are some of the most pressing human resource issues faced by the banking industry today? Why?12.What was the most difficult organization problem faced by the human resourcedepartment in the last few years? How was it resolved?13.What are the quality and competence you think a HR Manager should have?. (to be asked to HRM and CEO?GM)14.Are you satisfied with the role expected by the management to be performed byyou? If not why?15.What do you expect in general from a HR Manager in your organization?(CEO/GM)
