comparative analysis of RECRUITMENT of public and private bank sector.doc

8/9/2019 comparative analysis of RECRUITMENT of public and private bank sector.doc

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A

RESEARCH PROJECT REPORT

ON

“COMPARATIVE ANALYSIS OF RECRUITMENT

PROCESS IN PUBLIC BANKING SECTOR & PRIVATE

BANKING SECTOR”

TO BE SUBMITTED TO UTTAR PRADESH TECHNICAL,

UNIVERSITY, LUKCNOW. IN THE PARTIAL FULFILLMENT

OF THE REQUIREMENT FOR THE DEGREE

OF

MASTER OF BUSINESS ADMINISTRATIONBatch 2013-15

UNDER THE GUIDANCE OF: SUBMITTED BY:

Mr. PRAVEEN MALIK Eesh A!r"#

$H.O.D.% M!. De'. GBIT( R)## N). *++,,,--/

MBA IV Se0

GYAN BHARTI INSTITUTE OFTECHNOLOGY,

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MEERUT

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DECLARATION

I am Eesh A!r"# hereby declare that the project titled “COMPARATIVE

ANALYSIS OF RECRUITMENT PROCESS IN PUBLIC BANKING SECTOR &

PRIVATE BANKING SECTOR” is my own work and efforts which is completed

under the supervision of Mr. Pr1ee2 M#34 5H.O.D.% M2!e0e2 De'r0e2%

GBIT Meer67.

The Research report has been submitted to UPTU% L6842)" for the purpose of the

compliance of any requirement of any examination or any degree earlier

Eesh A!r"#

R)## N). *++,,,--/

MBA IV Se0

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ACKNO9LEDGEMENT

It is my pleasant duty to offer my service acknowledgement to those honorable

personalities of the department who have been a constant source of help and

encouragement in carrying out this research

"irst of all I wish to express my indebtness to Mr. Pr1ee2 M#34 5H.O.D.%

M2!e0e2 De'r0e2% GBIT Meer67 for his valuable suggestions and guidance

throughout the Research

I would like to mention few names# which helped me a lot with their valuable suggestion

and information to complete the research

$t last I feel extremely grateful to all those persons who helped me directly or indirectly

in doing the survey# generating demand and preparing the report

EESHA AGAR9AL

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PREFACE

The purpose of my research report was to learn the practical application of Recruitment

&rocess and its importance in &ublic 'ector along with the (R policies of &ublic 'ector which prides itself to be the market leader

)hile carrying out the study I have gained a good amount of knowledge and insights of

how (R department works but I have touched the tip of iceberg There was more to learn

but due to constraint of time it was not possible The (R* manager has to work with the

missionary spirit +nlike many roles in an organi,ation where tangible short- term

benefits can be obtained# it is difficult for (R* functionary to demonstrate any tangible

short- term accomplishment .et (R* managers are tempted to show to the top

management# line manager and themselves that they are making things happen through

training program# recruitment/ selection

In &ublic 'ector a meticulously natural team stands at the very heart of the group %#000

&ersonnel evince perfect camaraderie $ steadfast dedication to qualify an attainment of

maximum team potential is the touchstones of the ank

The ank is engaged in constant learning process through intensive selection and training

program Indeed# the aspiration is to shape a winning team of self motivated# empowered#

professionals with knowledge and confidence to take independent decision &ublic 'ector

recogni,es each employees individuality# ability and efforts and also applauds for their

contribution to the success of the group

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CONTENTS

TOPIC

1 4xecutive summary 5-6

2 Introduction 7-3!

! 8bjective of the study 3%-3%

% Research methodology 33-37

3 *ata analysis 39-61

5 "indings 62-6%

6 :onclusions 63-67

7 ;imitations 69-70

9 Recommandations and 'uggestions 71-76

10 ibliography 77-79

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EECUTIVE SUMMARY

The recruitment procedure of the ank determines the level of achieving organi,ational

goals in the long run $s per definition it is stated that which is all about selecting right

person for the right job at the right time at the best possible position $lthough it sounds

quite simple but it is also not an easier job to evaluate a person with his ability and skills

that may satisfy the core competency for the job so that his degree of willingness to

pursue a job becomes positive "rom job seekers prospective it is the core competencies#

which matter much for a job 'o it is the effective recruitment procedure# which

determines not only the right candidature for a job but also a long-term accomplishment

of organi,ational goals

I have choosen &ublic 'ector for studying their methods of recruitment function In the

course of study I came to know that# it has the probability of achieving more than 30= of

the people to be placed for the right job# which reflects some of the unique ways for

recruiting the candidates to fill up various vacancies

The aim of the ank is to achieve overall organi,ational goal not only by way of fulfilling the targeted top-line but also employee satisfaction towards various position of

job to the maximum level This I will see as I proceed subsequently in my Research

asically recruiting is the discovering of potential candidates for actual or anticipated

organi,ational vacancies It also can be said in another way that bringing together those

with jobs to fill and those seeking jobs

It is important to study Recruitment because through it I can identify our human resource

needs I can know what kind of people must be select to fill up the specified vacancies

The ideal recruitment effort will attract a large number of qualified applicants who will

take the job if it is offered It should also provide information so that unqualified

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applicants can self select themselves out of job candidacy# that is# a good recruiting

program should attract the qualified and not attract the unqualified

Recruiting people is done by various ways# for the study first I have to know the

recruiting sources There are internal and external sources as well as employee

referrals>recommendation

In this Research I am studying recruitment process of &ublic 'ector To find out actual

recruitment process of ank is my main objective of study

Through this kind of surveys I will be able to achieve real recruitment program of the

ank where for all kinds of operational level technical qualification is needed I also have

the picture of 'election cost of the ank It is very interesting to study recruitment

process as it will give me clearer picture of the process

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INTRODUCTION

The recruitment procedure of the ank determines the level of achieving organi,ational

goals in the long run $s per definition it is stated that which is all about selecting right

person for the right job at the right time at the best possible position $lthough it sounds

quite simple but it is also not an easier job to evaluate a person with his ability and skills

that may satisfy the core competency for the job so that his degree of willingness to

pursue a job becomes positive "rom job seekers prospective it is the core competencies

which matter much for a job 'o it is the effective recruitment procedure which

determines not only the right candidature for a job but also a long-term accomplishment

of organi,ational goals

In my research as I go further I come to know the different techniques adopted by

the software ank towards this effect I have chosen 4(;# for studying their methods of

recruitment function In the course of my study I came to know that# it has the

probability of achieving more than 30= of the people to be placed for the right job#

which reflects some of the unique ways for recruiting the candidates to fill up various

vacancies

The &ublic 'ector of the ank is to achieve overall organisational goal not only by way

of fulfilling the targeted top-line but also employee satisfaction towards various position

of job to the maximum level This I will see as I proceed subsequently in my Research

RELEVANCE OF RECRUITMENT PROCEDURES IN HR

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Recruitment procedure is a vital factor of an organi,ation If it is not done properly the

production procedure will be hampered (ence productivity will fall down 'o the

organi,ation will be in trouble and it will affect the employer- employee relationship 'o

recruitment procedure should be done in proper and correct manner The new candidates

should replace the vacant post so that the production of the ank does not hamper y

this the productivity will increase and the organi,ation will profit 'o the employer will

be happy and will not hesitate to distribute bonus and increments to the workers The

workers will also be more motivated to work (ence there will be harmonious

relationship in the organi,ation It will also stabili,e the organi,ation in the long run

9HY I CHOSE RECRUITMENT FOR MY STUDY ;


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asically recruiting is the discovering of potential candidates for actual or anticipated

organi,ational vacancies It also can be in another way that bringing together those with

jobs to fill and those seeking jobs

It is important to study Recruitment because through it I can identify our human resource

needs I can know what kind of people must be select to fill up the specified vacancies

The ideal recruitment effort will attract a large number of qualified applicants who will

take the job if it is offered It should also provide information so that unqualified

applicants can self select themselves out of job candidacy# that is# a good recruiting

program should attract the qualified and not attract the unqualified

Recruiting people is done by various ways# for the study first I have to know the

recruiting sources There are internal and external sources as well as employee

referrals>recommendation

In this Research I am studying recruitment process of &+;I: '4:T8R# (aridwar To

find out actual recruitment process of ank is my &ublic 'ector objective of study

Through this kind of surveys I will be able to achieve real recruitment program of the

ank where for all kinds of operational level technical qualification is needed I also have

the picture of 'election cost of the ank It is very interesting to study recruitment

process as it will give me more clearer picture of the process

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THEORETICAL OVERVIE9

Re8r630e2 is the discovering of potential applicants for actual or anticipated

organisational vacancies managers in determining recruiting sources such as image of the organisation# internal policies# attractiveness of the job# union requirements#

government requirements and recruiting budgets

P)'6#r s)6r8es )= re8r6332! e0'#)>ees include 32er2# ser8h% ?1er3se0e2s%

e0'#)>ee re=err#s% e0'#)>0e2 !e283es% s8h))#s% 8)##e!es 2? 6231ers33es@

'r)=ess3)2# )r!23s3)2s 2? 8s6# )r 62s)#383e? ''#382s. In practice#

recruitment methods appear to vary according to job level and skill

Proper selection can minimise the costs of replacement and training# reduce legal

challenges# and result in more productive workforce The primary purpose of selection

activities is to predict which job applicant will be successful if hired *uring the selection

process# candidates are also informed about the job and the organisation

The discrete selection process would include the following? 3233# s8ree232! 32er13e"%

8)0'#e3)2 )= he ''#383)2 =)r0% e0'#)>0e2 ess% 8)0'rehe2s31e 32er13e"%

84!r)62? 321es3!3)2s% 'h>s38# e0323)2 2? =32# e0'#)>0e2 ?e83s3)2. In

the discrete selection process# an unsuccessful performance at any stage results in the

rejection of the applicant

An alternative to the discrete selection process is the comprehensive approach, where

all applicants go through every step in the selection process and the final decision is

based on a comprehensive evaluation of the results of each stage To be an effective

predictor# a selection device should be reliable# valid and predict a relevant criterion

Selection devices provide managers with information that will help them predict whether

an applicant will prove to be a successful job performer The ''#383)2 #24 is

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effective for acquiring hard biographical data# while the weighted application can provide

information for predicting job success

Tr?33)2# ess that assess intelligence# abilities and personality training can predict job

proficiency but suffer from being non-job related 8n the other hand# 32er13e"s

consistently achieve low marks for reliability and validity B84!r)62? 321es3!3)2s

are valuable when they verify hard data from the application# although they offer little

practical value as selection devices Ph>s38# e0323)2s are valid when training

physical characteristics are required to be able to perform a job effectively

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INTRODUCTION

BANKING SECTOR

"inancial sector reforms were initiated as part of overall economic reforms in the country

and wide ranging reforms covering industry# trade# taxation# external sector# banking and

financial markets have been carried out since mid 1991 $ decade of economic and

financial sector reforms has strengthened the fundamentals of the Indian economy and

transformed the operating environment for banks and financial institutions in the country

The most significant achievement of the financial sector reforms has been the marked

improvement in the financial health of commercial banks in terms of capital adequacy#

profitability and asset quality as also greater attention to risk management "urther#

deregulation has opened up new opportunities for banks to increase revenues by

diversifying into investment banking# insurance# credit cards# depository services#

mortgage financing# securiti,ation# etc $t the same time# liberali,ation has brought greater

competition among banks# both domestic and foreign# as well as competition from mutual

funds# @":s# post office# etc

BANKING IN INDIA- originated in the first decade of 17th century with The

Aeneral ank of India coming into existence in 1675 This was followed by ank of

(industan oth these banks are now defunct The oldest bank in existence in India is the

'tate ank of India being established as The B24 )= Be2!# in :alcutta in Bune 1705

$ couple of decades later# foreign banks like :redit ;yonnais started their :alcutta

1%

http://en.wikipedia.org/wiki/18th_centuryhttp://en.wikipedia.org/wiki/1786http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/1786http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/18th_century


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operations in the 1730s $t that point of time# :alcutta was the most active trading port#

mainly due to the trade of the ritish 4mpire# and due to which banking activity took roots

there and prospered The first fully Indian owned bank was the $llahabad ank # which was

established in 1753

y the 1900s# the market expanded with the establishment of banks such as &unjab

@ational ank # in 1793 in ;ahore and ank of India# in 1905# in Cumbai - both of which

were founded under private ownership The Reserve ank of India formally took on the

responsibility of regulating the Indian banking sector from 19!3 $fter IndiaDs

independence in 19%6# the Reserve ank was nationali,ed and given broader powers

In terms of quality of assets and capital adequacy# Indian banks are considered to have

clean# strong and transparent balance sheets relative to other banks in comparable

economies in its region The Reserve ank of India is an autonomous body# with minimal

pressure from the government

:urrently# India has 77 scheduled commercial banks E':sF - 27 public sector banks Ethat

is with the Aovernment of India holding a stakeF# 29 private banks Ethese do not have

government stakeG they may be publicly listed and traded on stock exchangesF and !1

foreign banks They have a combined network of over 3!#000 branches and 16#000 $TCs

$ccording to a report by I:R$ ;imited# a rating agency# the public sector banks hold over

63 percent of total assets of the banking industry# with the private and foreign banks

holding 172= and 53= respectively

13

http://en.wikipedia.org/wiki/1850http://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/1865http://en.wikipedia.org/wiki/1900http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/1906http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/1935http://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/1850http://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/1865http://en.wikipedia.org/wiki/1900http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/1906http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/1935http://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machine


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STRUCTURE OF BANKING SYSTEM

*ifferent countries of the world have different types of banking

systems (owever# commercial banking had grown under all these banking systemsTo

understand the structure of banking system# let us take up various types of

banking systems one by one These types are?

E1F+@IT $@HI@A ? +nit anking or ig ina ted in the +ni ted 'ta te of

$mer ica I t grew in the +ni ted 'ta tes of $mer ica $s a counter par t of

independent or industr ial units

$n independent unit bank is a corporation that operates one office and that is not related

to other banks through either ownership or control

'haper# 'olomon and )hite Thus under unit banking# a single bank is a complete

organi,ation in itself having its own management The scale of operation is

small and the area isrestricted to a locality only +nit banking is locali,ed

banking and is muchmore responsive to the needs of the loca li ty It has be tter

understanding of the local problems and conditions# which helps it to cater to the needs

of thearea in a better way The staff of the unit bank is generally local and is in

a better position to determine the standing or desirability of the

cus tomers The fai lure of the un i t bank w i l l not end anger th e bank ing

sys tem and economy I t i s f r ee f rom the d i f f i cu l t i es and d i seconomies

of la rge sca le operations It will not drain out the financial resources of villages and

smalltowns to big industrial centers and will ensure a balanced growth

E2F R$@:( $@HI@A?

4 c o n o m i c a n d C a n a g e r i a l p r o b l e m s f a c e d b y t h e u n i t b a n k s l e tt o t h e emergence of banking system @ow# This the most popular and

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important banking system In branch banking# a bank has a large network of

branches c a t t e r e d a l l o v e r t h e c o u n t r y r a n c h b a n k i n g d e v e l o p e d

i n 4n g l an d 'ubs equen t ly mos t o f t he count r i es o f t he wor l d adop t ed

the sys tem In terms of branches# the 'tate ank of India has emerged as one of the

largest banks in the world$s under the system the resources of a number of branches get

pooled under the same management# any individua l branch is in a be tter

posi tion to face excess ive wi thdrawa ls by the cus tomers I t f ac i l i ta t e s

diversification of activities because the area covered by the branches is generally

widespread +nd er the syste m b ranc hes can ope rate with out kee ping

large id le cash reserves It becomes possible for the bank to hire the services of

competent a n d p r o f e s s i o n a l l y q u a l i f i e d m a n a g e r s # c a p a b l e o f

u n d e r s t a n d i n g t h e handling technical problems and complex situations The cost of

remitting or transferring funds from one place to another works out to be less

The s taff s tays at a branc h only for a l i mi ted p er iod# so the c hances of

8bj ec t ive decision making in the branch banking are high ranch anking tends to

bring homogeneity in the prevailing Interest Ratesas i t i nc reases the mobi l i ty of

reso urc es from one pla ce to a noth er I t is easier for the :entral ank to

exercise :ontrol I t wil l communicate only w i th a fe w Re g i s t er e d >( e a d

8f f i ce s o f t h e a nk s an d no t w i t h ea ch individual branch In th is

system there more safety and liquidity of funds The choice of securities and

investments is larger ranch banking makes com ple te ba nk ing ser vic es

avai l able to the smal les t communi t i es The

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branches in small localities can be initially operated at loss in expectation of future

gainsThe comparative study of unit banking and branch banking is a case of small scale

banking versus large scale banking It is evident that the scale is clearly tit led towards

branch bank ing )ith the growth of large scale business it is no wonder that the

trend is almost every country towards the branch banking ie big banks with a

network of branches all over the country 4ven in the +'$ The birthplace of

unit banking The ank of $merica has now more than 300 branches in the state of

:alifornia itself

E!F :($I@ $@HI@A ?

'haper# 'olomon and )hite have defined :hain anking as

$n arrangements by which two or more banks Jeach of which retains

Its identity# capital and personnel Jare brought under common control by any device

other

than a (olding :ompanyK

+nder the system there is pooling of resources :hain banking

8vercomes cer tain l imi tat io ns of uni t banking ut the s ys tem suf fers

from certain limitations of its own There may be a lack of co-ordination# proper

controletc The system is inflexible

E%F AR8+& $@HI@A ?

I t i s s i m i l a r t o : h a i n a n k i n g # t h e d i f f e r e n c e b e i n g t h a t u n d e r

A r o u p a n k i n g t w o o r m o r e b a n k s a r e b r o u g h t u n d e r t h ec o n t r o l

o f t h e s a m e management through a (olding :ompany oth the systems aim at

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gainingthe advantages of large scale operations The banks are able to pool

their resources in case of emergency or when large amount of cash is required tom e e t

t h e l o a n r e q u i r e m e n t s o f t h e c u s t o m e r T h e

a d v a n t a g e s a n d disadvantages of both the systems are similar

oth the systems developed in t h e

+ n i t e d ' t a t e o f $ m e r i c a a s a r e s u l t o f a t t e m p t s t o

o v e r c o m e t h e difficulties or limitations of unit banking

PRIVATIATION OF INDIAN BANKING

"or the public sector banks# the era of bumper profit is over "or much of the last decade

the process of collaborated financial liberali,ation had cleared up the anks balance

sheet enabling them to with stand increased competition# global financing# turmoil and

even unprotected industrial slow down ut the cycle of liberali ,ation has run its

full

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course @ow i t i s the time for the big structural leap# rationali,ation# mergers# and

privati,ation +nless the banks undertake these fundamental changes# their profit will

stay

under pressure Th er e a r e t wp a r e as o f co mp e t i t i o ns w hi ch ba nk i n g

industry is facing internationally and nationally In the pre-liberali,ation

era# Indian banks c o u l d g r o w i n a c l o s e d e c o n o m y b u t t h e b a n k i n g

s e c t o r o p e n e d u p f o r private competition It is possible that private banks could

become dominant p l a y e r s e v e n w i t h i n I n d i a I t h a s b e e n r e c o r d e d a

r a p i d r i s e o f t h e n e w private sector banks and it has tracked the transformation

of the public sector banks as they grapple with the changes of financial deregulation+se

of $TC cards# Internet anking# &hone anking# Cobile anking arethe new

innovative channels of banking which are being widely used as they resul t in saving

both t ime and money which are two essen t ia l th ings tha t every one is

short

of and is running to catch hold of them Coreover private s e c t o r b a n k s a r e

a l i g n i n g i t s i n f r a s t r u c t u r e s # m a r k e t i n g q u a l i t y

and t echnology to bui ld deep commi tment in bui ld ing consumer and

retai l banking The main focus of these banks is on innovative range of services

or products

HISTORY OF BANKING IN INDIA)ithout a sound and effective banking system in India it cannot have a healthy economy

The banking system of India should not only be hassle free but it should be able to meet

new challenges posed by the technology and any other external and internal factors

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"or the past three decades IndiaDs banking system has several outstanding achievements

to its credit The most striking is its extensive reach It is no longer confined to only

metropolitans or cosmopolitans in India In fact# Indian banking system has reached even

to the remote corners of the country This is one of the main reason of IndiaDs growth

process @ot long ago# an account holder had to wait for hours at the bank counters for

getting a draft or for withdrawing his own money Today# he has a choice Aone are days

when the most efficient bank transferred money from one branch to other in two days

@ow it is simple as instant messaging or dial a pi,,a Coney have become the order of

the day

The journey of Indian anking 'ystem can be segregated into three distinct phases They

are as mentioned below?

1 4arly phase from 1675 to 1959 of Indian anks

2 @ationalisation of Indian anks and up to 1991 prior to Indian banking sector

Reforms

! @ew phase of Indian anking 'ystem with the advent of Indian "inancial /

anking 'ector Reforms after 1991

Phse;I

The Aeneral ank of India was set up in the year 1675 @ext came ank of (industan

and engal ank The 4ast India ank established ank of engal E1709F# ank of

ombay E17%0F and ank of Cadras E17%!F as independent units and called it &residency

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anks These three banks were amalgamated in 1920 and Imperial ank of India was

established which started as private shareholders banks# mostly 4uropeans shareholders

In 1753 $llahabad ank was established and first time exclusively by Indians# &unjab

@ational ank ;td was set up in 179% with headquarters at ;ahore etween 1905 and

191!# ank of India# :entral ank of India# ank of aroda# :anara ank# Indian ank#

and ank of Cysore were set up Reserve ank of India came in 19!3

*uring the first phase the growth was very slow and banks also experienced periodic

failures between 191! and 19%7 To streamline the functioning and activities of

commercial banks# the Aovernment of India came up with The anking :ompanies $ct#

19%9 which was later changed to anking Regulation $ct 19%9 as per amending $ct of

1953 Reserve ank of India was vested with extensive powers for the supervision of

banking in India as the :entral anking $uthority

Phse;II

Aovernment took major steps in this Indian anking 'ector Reform after independence

In 1933# it nationalised Imperial ank of India with extensive banking facilities on a large

scale specially in rural and semi-urban areas It formed 'tate ank of India to act as the

principal agent of RI and to handle banking transactions of the +nion and 'tate

Aovernments all over the country

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'even banks forming subsidiary of 'tate ank of India was nationalised in 1950 on 19th

Buly# 1959# major process of nationalisation was carried out 1% major commercial banks

in the country was nationalised

'econd phase of nationalisation Indian anking 'ector Reform was carried out in 1970

with seven more banks The following are the steps taken by the Aovernment of India to

Regulate anking Institutions in the :ountry?

1 19%9 ? 4nactment of anking Regulation $ct

2 1933 ? @ationalisation of 'tate ank of India

! 1939 ? @ationalisation of 'I subsidiaries

% 1951 ? Insurance cover extended to deposits

3 1959 ? @ationalisation of 1% major banks

5 1961 ? :reation of credit guarantee corporation

6 1963 ? :reation of regional rural banks

7 1970 ? @ationalisation of seven banks with deposits over 200 crore

anking in the sunshine of Aovernment ownership gave the public implicit faith and

immense confidence about the sustainability of these institutions

Phse;III

This phase has introduced many more products and facilities in the banking sector in its

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reforms measure In 1991# under the chairmanship of C @arasimham# a committee was

set up by his name which worked for the liberalisation of banking practices

The country is flooded with foreign banks and their $TC stations 4fforts are being put to

give a satisfactory service to customers &hone banking and net banking is introduced

The entire system became more convenient and swift Time is given more importance

than money

The financial system of India has shown a great deal of resilience It is sheltered from any

crisis triggered by any external macroeconomics shock as other 4ast $sian :ountries

suffered This is all due to a flexible exchange rate regime# the foreign reserves are high#

the capital account is not yet fully convertible# and banks and their customers have

limited foreign exchange exposure

BANKS IN INDIA

In India the banks are being segregated in different groups 4ach group has their own

benefits and limitations in operating in India "ew of them only work in rural sector while

2%


25/91

others in both rural as well as urban Cany even are only catering in cities 'ome are of

Indian origin and some are foreign players

B24s ; P6#38 Pr31e Se8)r

1 P6#38 Se8)r B24s

2 Pr31e Se8)r B24s

! I2er2e B2432!

% F)re3!2 B24s 32 I2?3

3 I2?32 B24s Ar)?

P6#38 Se8)r B24s Indian ank

ank of India

+nion ank

'yndicate ank

'ate ank of 'aurashtra

'tate ank of Travancore

ank of Caharashtra

Lijaya ank

+:8 ank

Indian 8verseas ank

&unjab @ational ank

*ena ank

'tate ank of (yderabad

'tate ank of ikaner /

Baipur

'tate ank of India

'tate ank of Cysore

'tate ank of Indore

:orporation ank

$llahabad ank

$ndhra ank

:anara ank

ank of aroda

8riental ank

&unjab / 'ind ank

I*I ank

I:I:I ank

+TI ank

+nited ank

Pr31e Se8)r B24s

23

http://www.welcome-nri.com/info/project/IndianBankstext.htm#publichttp://www.welcome-nri.com/info/project/IndianBankstext.htm#privatehttp://www.welcome-nri.com/info/project/IndianBankstext.htm#internethttp://www.welcome-nri.com/info/project/IndianBankstext.htm#foreignhttp://www.welcome-nri.com/info/project/IndianBankstext.htm#indbankshttp://www.indian-bank.com/http://www.bankofindia.com/http://www.unionbankofindia.com/http://www.syndicatebank.com/http://www.sbsbank.com/http://www.sbtr.com/http://maharashtrabank.com/http://maharashtrabank.com/http://www.vijayabank.com/http://www.ucobank.com/http://www.iob.com/http://www.pnbindia.com/http://www.denabank.com/http://www.sbhyd.com/http://www.sbbjbank.com/http://www.sbbjbank.com/http://www.sbi.co.in/http://www.mysorebank.com/http://www.indorebank.org/http://www.corpbank.com/http://www.allahabadbank.com/http://www.andhrabank-india.com/http://www.canbankindia.com/http://www.bankofbaroda.com/http://www.obcindia.com/http://www.psbindia.com/http://www.idbibank.com/http://www.icicibank.com/http://www.utibank.com/http://www.unitedbankofindia.com/http://www.welcome-nri.com/info/project/IndianBankstext.htm#publichttp://www.welcome-nri.com/info/project/IndianBankstext.htm#privatehttp://www.welcome-nri.com/info/project/IndianBankstext.htm#internethttp://www.welcome-nri.com/info/project/IndianBankstext.htm#foreignhttp://www.welcome-nri.com/info/project/IndianBankstext.htm#indbankshttp://www.indian-bank.com/http://www.bankofindia.com/http://www.unionbankofindia.com/http://www.syndicatebank.com/http://www.sbsbank.com/http://www.sbtr.com/http://maharashtrabank.com/http://www.vijayabank.com/http://www.ucobank.com/http://www.ucobank.com/http://www.iob.com/http://www.pnbindia.com/http://www.denabank.com/http://www.sbhyd.com/http://www.sbbjbank.com/http://www.sbbjbank.com/http://www.sbi.co.in/http://www.mysorebank.com/http://www.indorebank.org/http://www.corpbank.com/http://www.allahabadbank.com/http://www.andhrabank-india.com/http://www.canbankindia.com/http://www.bankofbaroda.com/http://www.obcindia.com/http://www.psbindia.com/http://www.idbibank.com/http://www.icicibank.com/http://www.utibank.com/http://www.unitedbankofindia.com/


26/91

'outh Indian ank

IndusInd ank

(*": ank

Bammu / Hashmir ank

@edungadi ank

*evelopment :redit ank

Ratnakar ank

Candavi ank

:enturian ank

:ity +nion ank

"ederal ank

:atholic 'yrian ank

'araswat ank

*han;akshmi ank

Hotak ank

:osmos ank

;akshmi Lilas ank

ank of Rajasthan

ank of &unjab

I@A-Lysya ank

Halyan ank

Harur Lysya ank

+nited )estern ank

I2er2e B2432! I:I:I ank

"ederal ank

'tate ank of India

I*I ank

ank of aroda

ank of aroda

(*": ank

'tate ank of Travancore

(':

&unjab @ational ank

IndusInd ank

+TI ank

ank of &unjab

:anara ank

:orporation ank

I@A-Lysya

F)re3!2 B24s 32 I2?3 'tandard :hartered ank

$merican 4xpress ank

anque @ationale *e &aris

:iti ank

$@ $mro ank

$sian *evelopment ank

$bu *habi :ank

$@A ank

(':

I2?32 24s Ar)?

'tate ank of India

ahamas# ahrain# hutan# angladesh# elgium# :anada# "rance# Aermany# (ong Hong #

Bapan

25

http://www.southindianbank.com/http://www.indusind.com/http://www.hdfcbank.com/http://www.jammuandkashmirbank.com/http://www.nedungadi-bank.com/http://www.dcbl.com/http://www.ratnakarbank.com/http://www.mandvibank.co.in/http://www.centurionbank.com/Header/index.htmlhttp://business.vsnl.com/cityunion/http://www.federal-bank.com/http://www.casybank.com/http://www.saraswatbank.com/http://www.dhanbank.com/http://www.kotak.com/http://www.cosmosbank.com/http://www.webindia.com/lvbhttp://www.bankofrajasthan.com/http://www.bankofpunjab.com/http://www.vysbank.com/http://www.kalyanbank.com/http://www.kvb.co.in/http://www.uwbankindia.com/http://www.icicibank.com/http://www.federal-bank.com/http://www.federal-bank.com/http://www.onlinesbi.com/http://www.idbibank.com/http://www.bankofbaroda.com/https://www.omnibob.com/default.asphttp://www.hdfcbank.com/http://www.hdfcbank.com/http://www.statebankoftravancore.com/http://www.in.hsbc.com/http://www.pnbindia.com/http://www.indusind.com/http://www.utibank.com/http://www.bankofpunjab.com/http://www.canbankindia.com/http://www.corpbank.com/http://www.vysbank.com/http://www.standardchartered.com/in/http://www.americanexpress.co.in/http://www.bnpindia.com/http://www.citibank.co.in/http://www.abnamroindia.com/http://www.adbinrm.org/http://www.adcbindia.com/http://www.anz.com/gsf/Locations/SouthAsia.asphttp://www.anz.com/gsf/Locations/SouthAsia.asphttp://www.in.hsbc.com/http://sbi.co.in/branchlocator/foreignoffices.asphttp://sbi.co.in/branchlocator/foreignoffices.asp#add1http://sbi.co.in/branchlocator/foreignoffices.asp#add2http://sbi.co.in/branchlocator/foreignoffices.asp#add5http://sbi.co.in/branchlocator/foreignoffices.asp#add3http://sbi.co.in/branchlocator/foreignoffices.asp#add4http://sbi.co.in/branchlocator/foreignoffices.asp#add6http://sbi.co.in/branchlocator/foreignoffices.asp#add7http://sbi.co.in/branchlocator/foreignoffices.asp#add8http://sbi.co.in/branchlocator/foreignoffices.asp#add8http://sbi.co.in/branchlocator/foreignoffices.asp#add9http://sbi.co.in/branchlocator/foreignoffices.asp#add10http://sbi.co.in/branchlocator/foreignoffices.asp#add10http://www.southindianbank.com/http://www.indusind.com/http://www.hdfcbank.com/http://www.jammuandkashmirbank.com/http://www.nedungadi-bank.com/http://www.dcbl.com/http://www.ratnakarbank.com/http://www.mandvibank.co.in/http://www.centurionbank.com/Header/index.htmlhttp://business.vsnl.com/cityunion/http://www.federal-bank.com/http://www.casybank.com/http://www.saraswatbank.com/http://www.dhanbank.com/http://www.kotak.com/http://www.cosmosbank.com/http://www.webindia.com/lvbhttp://www.bankofrajasthan.com/http://www.bankofpunjab.com/http://www.vysbank.com/http://www.kalyanbank.com/http://www.kvb.co.in/http://www.uwbankindia.com/http://www.icicibank.com/http://www.federal-bank.com/http://www.onlinesbi.com/http://www.idbibank.com/http://www.bankofbaroda.com/https://www.omnibob.com/default.asphttp://www.hdfcbank.com/http://www.statebankoftravancore.com/http://www.in.hsbc.com/http://www.pnbindia.com/http://www.indusind.com/http://www.utibank.com/http://www.bankofpunjab.com/http://www.canbankindia.com/http://www.corpbank.com/http://www.vysbank.com/http://www.standardchartered.com/in/http://www.americanexpress.co.in/http://www.bnpindia.com/http://www.citibank.co.in/http://www.abnamroindia.com/http://www.adbinrm.org/http://www.adcbindia.com/http://www.anz.com/gsf/Locations/SouthAsia.asphttp://www.anz.com/gsf/Locations/SouthAsia.asphttp://www.in.hsbc.com/http://sbi.co.in/branchlocator/foreignoffices.asphttp://sbi.co.in/branchlocator/foreignoffices.asp#add1http://sbi.co.in/branchlocator/foreignoffices.asp#add2http://sbi.co.in/branchlocator/foreignoffices.asp#add5http://sbi.co.in/branchlocator/foreignoffices.asp#add3http://sbi.co.in/branchlocator/foreignoffices.asp#add4http://sbi.co.in/branchlocator/foreignoffices.asp#add6http://sbi.co.in/branchlocator/foreignoffices.asp#add7http://sbi.co.in/branchlocator/foreignoffices.asp#add8http://sbi.co.in/branchlocator/foreignoffices.asp#add9http://sbi.co.in/branchlocator/foreignoffices.asp#add10http://sbi.co.in/branchlocator/foreignoffices.asp#add10


27/91

Caldives# Cauritius # @epal # @igeria# 'ingapore # 'ri ;anka # 'outh $frica # +H # +'

ank of aroda

ahamas # elgium # "iji # Cauritius # 'outh $frica # 'eychelles# 8man # +$4 # +H # +'$ #

(ong Hong

'yndicate ank

+H #


28/91

$ landmark M :8CM ventures in India between I:I:I $@H and 'I". for online

distribution of retail banking products and services

In a major development in the Internet world# I:I:I ank# the banking subsidiary of

I:I:I ;td E@.'4? I: and I:*F and 'atyam Infoway ;td E@$'*$


29/91

innovative banking products of I:I:I ank 'I". has a buyer to seller ordering>selling

website# 'eekand'ourcecom# which is on-line except for the payments that are still

physical I:I:I ank has developed an Internet based Dbusiness to businessD payment

module for purchasers and sellers to effect payments online $ synergistic offering of

these two products would be made so that such customers>users can complete the entire

transaction and payments online

The two companies would expect to co-operate wherever feasible to extend the reach and

channels for distribution of financial products from I:I:I ank and Internet products

from 'I". I:I:I ank# as a part of its M:lick and rickM strategic focus would set up

$TCs at the 'atyam $ccess &oints and :yber :afes# thereby increasing its reach across

the country It would also offer 'atyam Internet terminals at its branches# enabling

visitors to surf the Internet# thereby attracting new customers to its branches

The two companies shall examine further business opportunities# which would effectively

synergise the financial services strength of I:I:I ank and its $ffiliates and the

technological expertise of 'atyam Infoway and its $ffiliates I:I:I ank and 'atyam

Infoway through this partnership will play a strategic role in providing revolutionary e-

commerce solutions in India

The memorandum of understanding was signed today between Cr (@ 'inor# Canaging

*irector / :48 of I:I:I ank and Cr R Ramraj# Canaging *irector of 'atyam Info

way

29


30/91

I:I:I is a diversified financial services ank offering a wide range of products and

services to corporate and retail customers in India I:I:I ank# a subsidiary ank has

been the pioneer of Internet banking in India I:I:I ank has been gearing itself for the

opportunities that would be created from the e-:ommerce revolution

'atyam Info way ;td is the leading integrated Internet and 4-commerce ank operating

in India 'atyam8nline# the most comprehensive portal site of Indian origin is one of the

key offerings from 'I". in the business to consumer segment Recently it entered into an

agreement to acquire India)orld :ommunications &rivate ;imited# which would result in

the integration of India)orldDs popular websites like samacharcom# khelcom and

khojcom with 'I".Ds portals The combined portal would be the largest India related

Internet portal

*. Ke> B6s32ess Oe831es

8rgani,ations are facing tremendous competition word-wide There is pressure on the

organisations to improve their profitability and efficiency for their survival and growth

The customers expectations about the product and services are increasing and they do

not hesitate to change their brand loyalty or the loyalty towards the organisations with

whom they have been dealing for a long time The deregularisation# liberali,ation and

!0

http://www.rbi.org.in/home.aspx


31/91

globalisation process have given freedom to the organisations in terms of selecting and

producing the products and services# selecting the market segment and targeting a

customer group at the same time they have to meet more rigid and regulatory

requirements to satisfy the regulators that the deregulation or liberali,ation does not work

against the interest of the customers and the society The organisations also have to

safeguard their resources to protect the interest of shareholders

The changing environment particularly that of competition# customer expectations and

emerging technology have influenced the banks word-wide Thus# the key business

objectives of a bank are to manage increasing competition by improving their product

and services# improving efficiency and productivity by restructuring their systems and

work procedures and improving employees productivity# ensuring compliance with the

regulatory requirements and safeguarding the assets $ll these issues can be addressed by

implementation of the right type of technology for the right purpose The technology-

based solutions have put the banks in a competitive advantage# improved the efficiency of

the operations and provided excellent customer service The technology has helped the

organisations to take strategic decisions based on the on-line data rather than based on the

past experience and intuitive decisions The computer assisted audit techniques have

helped the banks to ensure safeguarding of resources and to ensure that the banks are

operating efficiently and effectively The extensive use of technology has also brought

down the transaction cost and the rental cost of the premises Thus# the computerisation

of banks operations had tremendous impact on their future prospects The central bank of

any country though operate in a monopoly situation but has to demonstrate as a role

model its efficiency and effectiveness to guide and supervise the whole banking system

!1


32/91

HUMAN RESOURCE MANAGEMENT IN BANKING

SECTOR

Or!23s3)2 sr686re:

The whole organisation behaves as a &rivar# with one legal guardian $ll directors and

shareholders are from among workers and all of the have taken an oath through affidavit

In the court of law that neither their family members shall have cl&ublic 'ectorm or share

in the assets or profits of the ank $ll workers of ank are the proud owners of the

organisation The workers believe in the concept that manpower is superior to money

powerK

Re8r630e2

Recruitment is the process of seeking out and attempting to attract individuals in external

labour markets# who are capable of and interested in filling av&ublic

'ectorlable vacancies Recruitment is an intermediate activity whose primary

function is to server as a linked between (uman Resource &lanning on the one

hand on the other 'ources of recruitment are through internal and external

channels &+;I: '4:T8R recruits its employees both externally as well as

internally Recruitment for the &ublic 'ector is done through interviews of

selected applicants and people who pass the interviews of selected applicants

and people who pass the interview are required to undergo a medical test

before he>she is finally placed in the &ublic 'ectors

4mployees are also recruited through internal mobility This is done on the basis of merit

and seniority $fter passing the examination the candidates are called for an

interview along with the employees who have become eligible for promotion

on the basis of seniority

!2


33/91

Training $nd *evelopment

Training is the systematic modification of behavior through learning# which occurs as a

result of education# instruction# development and planned experience Training

needs exist when there is a gap between the present performance of employees

of group of employees and the desired performance

*evelopment on the other hand implies educational process &ublic 'ectormed at growth

and maturity of managerial personnel in terms of insight attitudes# adaptability

leadership and human relations on the basis of conceptual and theoretical

knowledge 'ahara &ublic 'ectors has various training programme# which are

spread over every field These trainings are &ublic 'ectormed at imparting particle knowledge of the specific area and to make employees more capable to

work not only efficiently but with accuracy This also facilitates the customer

to have their work done fast as per their requirements# because in most of the

cases customer do not have the technical knowledge of the &ublic 'ectors

business &+;I: '4:T8R also conducts training on human behaviour in

order to update its employees on how to deal with its customers In &+;I:

'4:T8R training is immediately called for whenever an employee is elevated

to next promotional post

!!


34/91

Future growth proposals:

• PUBLIC SECTOR Literacy programme Hub centre

•

Basic flying training

• Induction of simulators

• Instrument training simulators

• Boeing simulators

Job Analyss ! Job "es#rpton

Bob analysis is the process by which data in regard to each job is systemically observed

and noted It provides information about the nature of job and characteristics or

qualifications that are desirable in the job holder Bob description generally describe the

work performed# the responsibilities involved# skill and training required# conditions

under which job is done# relationship with other jobs are personal requirement of the job

Bob description study gives a better understanding of tasks performed and the type of

qualifications required to perform them It is also used to give a measures for setting job

standards# which gives an indication of productivity of each employee performing job In

PUBLIC SECTOR subordinates and junior staff level employees eligibility criteria is

metric The junior staff should be able to read and write 4nglish as well as (indi The

jobs are properly defined to all structure of the hierarchy

!%


35/91

Per=)r028e ''r3s#

It has many facets It is an exercise of observation and judgement# it is a feedback

process# and it is organi,ation intervention &erformance appr&ublic 'ectorsal is a

measurement process as well as emotional process )hile it is f&ublic 'ectorrly easy to

pre-describe how the process should work# descriptions of how it actually works in

practice are rather discouraging

"unctions and objectives of performance appr&ublic 'ectorsal?

1 It seeks to provide an adequate feedback to each individual on his>her performance

2 Its purpose is to serve as a basis for improving or changing behavior towards more

effective working habits

! It &ublic 'ectorms at providing data to managers with whom they may judge future job assignments and compensation

&erformance $ppr&ublic 'ectorsal is used for?

1 Identifying employees for salary increase# promotion# transfer lay-off or termination

of services

2 *etermining training needs for further improvement in performance

! Cotivating employees by indicating their performance levels

% 4stablishing a basis of research and reference for personnel decisions in future

In PUBLIC SECTOR employees are required to fill up a self appr&ublic 'ectorsal form

4mployees are appr&ublic 'ectorsed every year in the PUBLIC SECTOR &erformance

appr&ublic 'ectorsal is carried out in PUBLIC SECTOR for determining training needs

for further improvements in performance# identifying employees for salary increases#

motivating employees by indicating their performance level

Tr2s=er & 'r)0)3)2s:

It refers to a hori,ontal or lateral movement of an employee from one job to another in

the same organi,ation without any significant change in status or pay In PUBLIC

SECTOR two m&ublic 'ectorn situations generate transfer situations

1 $n individual employee may request a transfer in seeking his own preference and his

own benefits

!3


36/91

2 &ublic 'ectors may also initiate transfer as a requirement for more effective

operations or as a solution to human relations problems

)hereas promotion refers to advancement of an employee to a higher position carryingresponsibilities# higher status and better salary In PUBLIC SECTOR promotion is given

under following conditions?

1 It is a device to ret&ublic 'ectorn a reward# to an employee for his years of service

2 It is to impress upon others that opportunities are open to them also in &ublic 'ectors#

if they perform well

! It is to increase individual effectiveness

% It is to build loyalty# morale and a sense of belongings in the employees

3 It is recognition of a job well done by an employee

5 It is to promote a sense of job satisfaction in the employees

!5


37/91

P> A2? A##)"28es

The pay and allowances of an employee are payable from the date from which he takes

charge of the post or service to which he is appointed If the charge is service to which he

is appointed If the charge is before 1200 noon# the pay and allowances shall beadmissible from the same day# if at 1200 noon or thereafter# they shall be payable from

the following day

I28re0e2s?

$% A&'an#e o( salary whle pro#ee&ng on lea'e:

$n employee proceeding on &rivilege leave# Caternity ;eave and>or 'ick ;eave shall be

eligible to be p&ublic 'ectord in advance ag&ublic 'ectornst the salary due for the full

period of the leave subject to the usual deductions eg on account of provident fund

subscription# Income - tax etc In case in which the leave granted to an employee extends

beyond he next pay-day# the amount of advance should also include the pay and

allowance due to him# upto the date of his proceeding on leave

)% Te*porary "uty +tour , wthn In&a%:

The employees undertaking duty tour will be eligible for payment of *&ublic 'ectorly

$llowance> (otel $ccommodation as per conditions l&ublic 'ectord down from time to

time

-% For E*ployees re.ure& to tra'el by RPubl# Se#torl/Roa&/Sea

*&ublic 'ectorly $llowance shall be admissible for the period of stay at outstation @o

*$ will be given for the period of journey "or the day of arrival at the outstation and

the day of departure from the outstation only half d&ublic 'ectorly allowance shall be

admissible

0% For e*ployees re.ure& to tra'el by Publ# Se#torr

4mployees will be entitled for the payment of d&ublic 'ectorly allowance at the

applicable rates for each day of absence from (


38/91

The duty tour undertaken by an employee at a foreign station# will be subject to the

following conditions?

EiF The employees going abroad for temporary duty tour>training>conference# etc are

released foreign exchange by the ank on he basis of the prescribed per diemrates The employees are required to meet all their expenses in the foreign

country# like boarding and lodging# transportation expenses# incidental expenses

and cash allowance from the amount of foreign exchange so advanced to them If

the stay abroad is for the same number of days for which foreign exchange had

been released to an employee# then the total expenses shall# not be more than the

amount of foreign exchange released to him

EiiF In the unlikely event of an employee having to extend his stay abroad for official

purposes# beyond the sanctioned period# he should contact his *epartmental (ead

well in advance# so that release of additional foreign exchange could be arranged

for him

EiiiF In the case of hotel expenditure being less than the amount of foreign exchange

released to an employee# the unspent amount has to be refunded by the employee#

the unspent amount has to refunded by the employee# to the ank in foreign

currency

EivF In case# in which the entitled class of accommodation is not av&ublic 'ectorlable#

the competent authority may permit the employee to travel by a higher class

7 Tr2s')r3)2 )= 'ers)2# e==e8s:

The employees will also be reimbursed the actual cost of transportation by the goods

tr&ublic 'ectorn and where the two stations are not connected by tr&ublic 'ectorn# by the

cheapest mode of surface transport of his personal effects not exceeding the limits shown

below?-

!7


39/91

Bs38 P> 5Pre;Re13se?7 T)# B!!!e ##)"28e "he2 r1e##32!

93h =03#>

54!s7

93)6

=03#> 54!s7

Rs 10#000 and above 620 !50

Rs 3#000 and above 3%0 260

elow 3#000 !50 170

Pr)13?e? h:

EaF The competent authority may permit transportation of such effects in the anks own

services in which case the limits will be deemed to be inclusive of free baggage

allowance permissible under its tariffs and the transportation will be made as and

when and to the extent that space and load are av&ublic 'ectorlable in the &ublic

'ector

EbF @o costs other than those of actual transportation such packing# unpacking# storage#

insurance# handling agent charges and the like will be borne by the ank

Me?38# F83#33es F)r Te0')rr> E0'#)>ees:

The Cedical facilities applicable to permanent employees of the ank are also applicable

to temporary employees

9)r432! H)6rs

$ll employees except the member of flying crew will# according to the nature of duties

assigned to and performed by them# be classified# from time to time into the following

categories

aF Those observing !7 hours work per week including a d&ublic 'ectorly break of half

an hour on all working days except 'aturdays

bF Those observing %% hours work per week including a d&ublic 'ectorly break of half

an hour on all working days Eexcept 'aturdaysF

cF The actual hours of d&ublic 'ectorly work shall be such as are notified from time to

time by the regional (ead at region branch

!9


40/91

O1er30e

8vertime is payable only to subordinate / clerical staff members Otwice the rate of

asic 'alary P *$ for number of hours

P> D>

'taff will be p&ublic 'ectord their monthly salary usually two working days prior to the

end of the months

M)?e )= '>0e2s

$n employees is required to open a serving ank $>c in a designated branch# Econsult

manager>reporting headF salary will be deposited into the account 8n payday# employees

will be handed a pay slip cont&ublic 'ectorning a det&ublic 'ectorled breakup of the

remuneration for the month the required deductions and the net pay

A2 e0'#)>ees 8)00e28e0e2 s#r>:

:ommencement salary will very according to the category of employment# which will be

advised to the employee in the appointment letter $ny increases or other adjustments

arising from a salary review# change of job etc will be notified to the employee

Re3re0e2 e2e=3s

4very employee who has completed one years continuous service shall# subject to the

regulations to be made hereafter in this behalf# contribute the contributory provident fund

each month a minimum of 10 percent a maximum of 20 percent of his provident fund

pay The anks contribution to the fund shall# however# be limited to 10 percent of his

provident fund pay

The anks contribution to the fund is payable to the employee after five years of

membership of the fund 'ubject to this an the other regulations to be made thereafter in

this behalf# all the accumulated balance to the credit of an employee on the day he ceases

to be an employee of the ank# is payable to him or his nominee or nominees or

executors

Gr63>

The ank also pays gratuity to all its employees calculated at the rate of 13 days wages

for every completed year of service or part thereof in excess of six months subject to a

minimum service period of 3 years a maximum of 20 months wages The gratuity

%0


41/91

liability of the ank is funded through the group gratuity scheme Ecash accumulation

schemeF of the life insurance :orporation of India This scheme includes a special

feature# namely# whereas gratuity payable on death under the payment gratuity act is

limited by the length of service rendered upto the time of death# the scheme provides for

the payment of an amount based on the length of service which the employee could have

put in upto the normal retirement date but for his untimely death

Pr)13?e2 =62? s6)r> 8)2r363)2:

The provident fund deduction forms are part of the employees salary and represents

statutory deduction of 10= from the basic salary and **$ The ank contributes and

equivalent amount towards an exempted provident fund scheme managed by Trustees

drawn among the staff of Shr &ublic 'ectors This is a retirement benefit

E0'#)>ees s== 32s6r28e 5ESIS7

The ank is legally obliged to deduct from an employees salary contribution to 4'I'

provided that the monthly salary does not exceed Rs 5300 ERupees six thousand and five

hundred onlyF the ank also pays a higher amount as its contribution

I2s6r28e 're0360 62?er s#r> s132! s8he0es

$n employee may have the premier on selected life insurance policies deducted from the

salary each pay day and credited directly to the employees policy account with the life

insurance corporation

L)2s

4quated monthly installments E4CIF towards of any loans# av&ublic 'ectorled by an

employee from either the ank or the financial institutions will be deducted from salary#

on the employees authorising the ank for such deduction This authority letter has to

be routed through the financial institutions granting the loans

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M)313)2

In appreciation and recognition of exemplary performance# contribution# length of service

to the PUBLIC SECTOR # the management rewards the employee appropriately The

award is in the form of a gift or certificate as decided by the management

The management also rewards its employees employee of the monthK and employee of

the yearK for their outstanding performance The employees selected become the member

of staff welfare committee also ;ong service awards are given to those employees who

have completed their 3 years or 10 years of service and are entitled for gifts along with

certificates

$ part from this# the ank motivates its employees by providing them good

infrastructure Conthly culture activities are organised to keep the employees motivation

high 4mployees are given responsibility / authority in their selected area# in order to

enhance their capabilities $nd promotions are given based on their performance in the

ank $ll these rewards given by the ank attracts / motivates the employees to work

better and prove themselves

Gr3e128es

If any employee has a problem he can directly speak to the :48# who is accessible to

anyone at anytime In case a grievance arises# round the table meeting is called and

problems is dealt in best possible manner

C)0062383)2

In PUBLIC SECTOR communication is very formal The ank prefers communication

in a two way process The ank prefers to be more informal in dealing with employees

on d&ublic 'ectorly basis 'ince# this style of working makes the employees feel much

happier and motivated

&ublic 'ector India ;td selects the future employees keeping everything in mind right

from the qualification of the employees to the future prospects-both of the organisation

and the employees

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The first step involves the filling up of Canpower Indent "orm This form is filled up by

the department# which is having the vacancy The form consists of various questions

which are to be answered like if the current vacancy is a replacement vacancy# its reason

is to be specified -the factors which resulted it like death# retirement etc

The department is required to give the qualifications that the future candidate should

possess

In the next step# this form is given to the (uman Resource E(RF departmentG this

department sees if the position can be filled through internal sources The internal sources

can be transfers# promotion etc In the case of internal sources# the recommendations of

the employees are not taken into consideration If the (R department does not find

suitable candidate within the organisation then this department has to give reasons for it

The form then goes to the :orporate (R for its approval

)hen the suitable candidate is not available within the organisation# the organisation then

moves to the outside world for filling up the vacancies

If the number of employees required is large then the ank has in its consideration three

ways-

The *ata bank of the organisation

$dvertisements

:ontacting large consultants

The ank maintains a databank of the candidates# which is used when the number of

vacancies to be filled up is large The sources of databank can be the qualified candidates

who had applied in the organisation earlier but due to some reasons could not join the

organisation

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$dvertisements are the second big source to attract the candidates These are having

much larger scope and reach to a number of people The qualifications required by the

organisation and the criteria could be described in detail

;arge number of consultants also constitutes a big source Cany people register

themselves with these consultants and they act as a bridge between the organisation and

the candidates The consultants provide the ank required details about all criteria These

consultants are fixed for the organisation# which are chosen on the basis of their

performance In case of overseas recruitment it is checked whether their Indian

counterparts can perform the job efficiently or not If need arises then they are also taken

through consultants

ut if the number of vacancies is very small then the organisation takes the help of the

local consultants

The candidates are then required to fill up the $pplication "orm This form requires the

candidate to fill the details regarding the previous employment# if any and his personal

data The form is having details regarding like the marital status# organisation structure#

the position held by the candidate# his salary structure# the top three deliveries to the

organisation that proved to be beneficial to the organisation# career goals# his strengths

and weaknesses etc

$fter the application form has been duly filled and submitted# the selection process starts

wherein the candidate has to pass through various stages and interview The interview

panel consists of the persons from :orporate E(RF# and other persons including the

executives from the department for which the vacancy is to be filled

The selected candidates are then short-listed The short listed candidates are then given

priority numbersG this is due to the reason that sometimes the candidate who is having

first priority is unable to join the organisation due to some reasons then in that case the

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candidate next in the priority list is given preference The candidate has to under go

medical examination and his credentials are verified

$fter qualifying these stages# the candidate is then absorbed in the organisation and

explained his>her duties This phase marks the end of the selection procedure

&ublic 'ector India ;tdalso performs :ampus interviews as and when the need arises

The esteemed organisation also provides apprentice training-wherein the organisation

trains the people in the working of the organisation and gives then stipend If these

trainees are found useful to the organisation then they are absorbed in the organisation

else they are given certificate so that they can show this as an experience and get a job

elsewhere

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(RC in the anking Industry

)hen we talk of human resource management# we have in our mind a variety of things

These include?

• Training

• 'kill development and up-gradation of knowledge and skills of the employees

• Cotivating the employees#

• 4ffective utili,ation of the employees skills and capabilities

• $ttracting the personnel and their retention

• )ages# salaries and rewards and

• Conitoring and controlling the employees performance

These aspects of human resource management and development are essential for every

sector but in the case of tourism# they have a special significance This is because

tourism is a service industry and here the customer is not only buying a service or a

product but he is also experiencing and consuming the quality of service which is

reflected in the performance of the person involved in the production and delivery of the

service 'ince what is marketed here is a relationship between the customer and the

producer of services# the importance of human resources becomes vital for the success of

the business Aenerally# in such service operations the emphasis has been on courtesy

and efficiency and it is assumed that the service in tourism is all smiles and effective

communication (owever# with the changing nature of tourism and growing special

sation only smiles# communications skills and courtesy will not serve the purpose "or

example# a guide may be very good in communication but unless he or she is equipped

with knowledge and information related to the monument or the city# he or she will not beable to perform quality service 'imilarly# a driver may be very good at driving but unless

he knows the roads and addresses of the city# only his driving capabilities will be of no

help in providing quality service $nd we must remember here that tourists# whether

foreign or domestic# are increasingly becoming more demanding as regards quality of

service

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Aenerally# human resource management# planning and development in tourism have to be

taken at both macro as well as micro levels $t the macro level# one takes into account the

educational and training infrastructure available in a country and the efforts initiated by

the I:$8 This also includes the efforts initiated by the private sector $t the micro level#

one takes into account how best individual organi,ations plan and manage their human

resources L ' Cahesh# formerly Lice &resident E(uman ResourcesF with the Taj Aroup

of (otels# is of the opinion that two central features common to all sectors of the tourism

industry must be considered in this regard?

1F The concept of Coments of Truth EC8TF# and

2F C8Ts relationship to the attainment of service excellence in an organi,ation

Ban :arl,on has defined C8T as an intention between a customer and an organi,ation#

which leads to a judgement by the customer about the quality of service received by her

or himK In tourism industry# 93= of the C8Ts take place between customers and the

front line staff and most of the time they are not visible to the management "or example#

how a hotel receptionist is handling the customers or how an escort is conducting the tour

is not visible to the management .et# the tourists experience of the holiday is dependent

on how the staff manning such services has treated him or her Cahesh has pointed out

that in case of negative experiences# only less than five percent cases get reported to the

management by the customers and hence according to him the crucial questions is are

human beings capable of doing their job correctly# willingly and with a smile# when they

know that their management is most unlikely to be able to see or hear them# let alone bear

of their failure to do soKQ This puts additional on the human resources management

factor in the tourism industry :ertain organi,ations# companies and even destinations are

known for their hospitality and are even termed as service leaders in their areas of

operations Researches conducted by various scholars in this area show that they have

achieved this# status# through effective human resource management in their

organi,ations $ccording to Aail :ook Bohnson these companies have applied the

principal of empowerment to all employees This empowerment is manifested in the way

that companies?

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• $re highly focused and consistent in everything they do and say in relation to

employees#

• (ave manager who communicate with employees

• "acilitate# rather that regulate# their employees response to customers

• 'olicit employee feedback about how they can do things better

• 'tress the importance of team work at each level of the organi,ation and

• &lan carefully the organi,ations recruitment and training needs

These companies give less emphasis on hierarchy and formal relationship ratherG they

adopt flat organi,ational structure in terms of span of control Bohnson further states that

these service leaders can be recognised for?

• Their unfailing commitment to service principles#

• Their investments in people to ensure staffing competence#

• $ management philosophy which stresses communication a proactive orientation and

employee feedback and

•

$ dedication to teamwork

In fact# human resource management and customers care>expectations management are

inter related area in the area of tourism 'arah Cansfield has identified four key

principles in the development of customer care within companies These according to her

are

1F :ustomer care Nstarts at the top was meaning that commitment to the principle of

customer care must emanate from senior management levels within an

organi,ation 'uccessful management is not only about the right management

style but also an attitude# ethos or culture of the organi,ation which overrides the

management techniques used# such that in the absence of other instructions these

values will dictate how an employee will behave

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2F N:ustomer care involves everyone within the organi,ation It is not just about

front-line staff The contrary view Nonly services to reinforce the electricians or

administrators# opinion that the standard of service they give in support of the

front-line staff is not important (ow can cleaners do the right job unless they

fully appreciate their customer needs and the importance of their roleQ (igh

standards of customer care cannot be achieved by ignoring seasonal# part time or

voluntary staff that represents the face of the business to many customers

!F N:are for your staff and they will care for your customers Too often organi,ations

look first to the customer# whereas the emphasis should be placed on the staff

Improving the experience of the staff encourages a better service and a better

experience for customers Core customers are obtained thereby improving the

climate in which management and staff work Investment and greater

professionalism follow success and the cycle of achievement is reinforced

%F NIts a continuous# meaning that Ncustomer care is not a quick fix Research but it

long term plan

$ccording to L ' Cahesh The nature# determinates and problem areas of service quality

within tourism points clearly to the central role of personnel# at all levels# in attaining

levels# of excellence in this respect *evelopment the service culture# within a ank# and

within tourism industry# cans he seen as crucial to the success of tourismK (ence# the

activities of an (R* manager in tourism can be categorised as?

• (uman resource planing and

• (uman resource development

$spect like forecasting# recruiting and induction in the human resource area are taken

care of through human resource planning The identification of specific developmental

needs for the manpower aimed at developing and exploiting the competencies of the

human resources are taken care of through human resource development

(+C$@ R4'8+R:4 &;$@@I@A

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In this 'ection# we will deal with certain aspects which are relevant for managers or

entrepreneurs at an organi,ations level in the area of human resource planning (uman

resource planing can be termed as a process for preparing a plan for the future personnel

needs of an organi,ation It takes into account the internal activities of the organi,ation

and the external environmental factors In a service industry like tourism# such planning

also aims at improving the quality of manpower resources (uman resource planning

involves?

• $nalysis of existing manpower resources#

• &lanning for future needs taking into account how many people with what skills and

at what levels the organi,ation will need# and

• &lanning for the development of the employees by adopting in-house training and

continuing education methods to upgrade the knowledge and skills of the employees

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RECRUITMENT PROCEDURES IN HR

Recruitment procedure is a vital factor of an organi,ation If it is not done properly the

production procedure will be hampered (ence productivity will fall down 'o the

organi,ation will be in trouble and it will affect the employer- employee relationship 'orecruitment procedure should be done in proper and correct manner The new candidates

should replace the vacant post so that the production of the ank does not hamper y

this the productivity will increase and the organi,ation will gain profit 'o the employer

will be happy and will not hesitate to distribute bonus and increments to the workers The

workers will also be more motivated to work (ence there will be harmonious

relationship in the organi,ation It will also stabili,e the organi,ation in the long run

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HUMAN RESOURCE MANAGEMENT IN PUBLIC

SECTOR

Organsaton stru#ture:

The whole organisation behaves as a &arivar# with one legal guardian $ll directors and

shareholders are from among workers and the entire have taken an oath

through affidavit In the court of law that neither their family members shall

have claim or share in the assets or profits of the ank $ll workers of ank

are the proud owners of the organisation The workers believe in the concept

that manpower is superior to money powerK

Re#rut*ent

Recruitment is the process of seeking out and attempting to attract individuals in external

labour markets# who are capable of and interested in filling available

vacancies Recruitment is an intermediate activity whose primary function is to

server as a linked between (uman Resource &lanning on the one hand on the

other 'ources of recruitment are through internal and external channels &ublic

'ector recruits its employees both externally as well as internally Recruitment

for the airline is done through interviews of selected applicants and people who

pass the interviews of selected applicants and people who pass the interview

are required to undergo a medical test before he>she is finally placed in the

&ublic 'ector

4mployees are also recruited through internal mobility This is done on the basis of merit

and seniority $fter passing the examination the candidates are called for an

interview along with the employees who have become eligible for promotionon the basis of seniority

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OBJECTIE OF STUDY

The basic objective of this report is to “COMPARATIVE ANALYSIS OF

RECRUITMENT PROCESS IN PUBLIC BANKING SECTOR &

PRIVATE BANKING SECTOR”. "ollowing fundamental objectives have

been identified as the sub-objectives of the study?-

1 To study the identity of the recruitment / selection process in the

organi,ation as a whole

2 To find out the employees as per anks vacancies

! To find out the various sources of advertisement of vacancies like-

media Eelectronic or paper or bothF# schools# posters etc

% To study the work environment and select the pattern of interview#

which can help out to select the suitable employee for the

organi,ation

3 To study the interpersonal relationship

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RESEARCH METHODOLOGY

The '6r')se )= he 0eh)?)#)!> 3s ) ?es8r3e he reser8h 'r)8e?6re. Th3s 328#6?es

)1er## reser8h ?es3!2% he s0'#32! 'r)8e?6re% he ? 8)##e83)2 0eh)?% 2? he

=r3e? 0eh)?s 2? 2#>s3s 'r)8e?6re.

8ut of total universe !0 respondents from each &ublic 'ector have been taken for

convenience The sample procedure chosen for this are statistical sampling method (ere

randomly employees are selected and interviewed $n in depth interview is conducted

with the (uman Resource (ead Information# which I collected# was based on the

questionn

comparative analysis of RECRUITMENT of public and private bank sector.doc

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