i«.s

CHAPTER :; V ;;

MANPOWER PLANNING & PRACTICES IN BANK OF MAHARASHTRA:

Contents

Sr.No. Point Page

5.1 Introduction. 5.1

5.2 A Profile of Bank of Maharashtra 5.1

5.3 History of Bank of Maharashtra. 5.6

5.4 Corporate Objectives. 5.11

5.5 Nationalisation of Banks. 5.14

5.6 Effects of working methodologies. 5.19

5.7 Organisational Str'vcture « changes.5.23

5.8 Manpower Planning ir. ^ 5.40

Bank of Maharashtra.

5.9 Position of Branches. 5.51

5.10 Categorisation of Manpower. 5.57

5.11 Immediate future challanges on 5.63

introduction of computerisation.

5.12 Chapter conclusion. t- gg

5 .1 ^^G

CJ<APTER V

BANK OF l-iAHARASHTRA: PROFIT.-: Ai.'D

ivlAiJPOVi/ER PLAWrilWG PRACTICES

5 . 1 I n t r o d u c t i o n :

Bank of M a h a r a s h t r a , e s t a b l i s h e d in 1935 and

n a t i o n l i z e d in 1969, i s one of the Publ ic Sector Banks

in I n d i a . From a s i n y l e office pos i t ion in 1936 the bank

rose to a j i a n t s t r u c t u r e compris iny of 1121 b r a n c h e s

in 1991. Out of t he se 1121 b r a n c h e s , 51% ope ra t e in

rural a r e a , 17% in s e m i - u r b a n a r e a and 16% each in

u r b a n a n d met ropo l i t an a r e a s . As on 3 l s t March 1991, ,

t o t a l b u s i n e s s of the b a n k c ross over to 5200 c r o r e s ,

managed by i t s 18122 employees c o n s i s t i n y of officers

20%, c l e a r k s 53%, s p e c i a l a s s i s t a n t s 4% a n d s u b o r d i n a t e

staff 23% . Ouriny i t s 55 y e a r s of o r y a n i s a t i o n a l life

the b a n k p r o g r e s s e d t h r o u y h many odds and c o n s t r a i n t s /

5.2 A Profi le of Bank of Maharashtra:

Promoted with the ob jec t ive of r e a c h i n y a s t a t u s

of a Regional Bank , Bank of M a h a r a s h t r a in one of the

1 ^ ^

5 .2

n a t i o n a l i s e d b a n k s i n I n d i a . S t a r t e d w i t h a s m a l l c a p i t a l

of R s . 1.04 l a k h s i n t h e b e g i n i n g i t s c a p i t a l s tood a t

Rs- 84Cr. on 31s t M a r c h 1990 . As s t a t e d a b o v e t o t a l

b u s i n e s s d u r i n g t h e s a m e p e r i o d s t o o d w a s is. 488-^ c r o r e s a s on 3 0 / 3 / 9 0

T a b l e § . I p r e s e n t s i n b r i e f p r o g r e s s of i n b a n k s i n c e

i t s i n c e p t i o n .

TABLE 5 , 1 ,

PROGRESS OF BANK OF MAHARASHTRA

1936-1990

Y e a r No.of B u s i n e s s v o l u m e

B r a n c h e s ( C i . R s . )

M a n p o w e r

1936 Dec 1949 Dec 1961 Dec 1969 Dec 1990 M a r c h 90)

19

61

164

1116

0 .09

3 .24

29 .24

151 .77

488^ . 00

3

210

1011

2999

17504

CSource : A n n u a l r e p o r t s of B a n k of M a h a r a s h t r a 3

I t i s o b s e r v e d froiip. T a b l e 6.1 t h a t t h e B a n k

w a s v e r y c a u t i o u s i n b r a n c h e x p a n s i o n i n p r e - n a t i o n a l i z a t i o n

p e r i o d , H o w e v e r a s c o m p a r e d to t h e p e r i o d e n d i n g 1949, l a t e r

l«s&

5.3

two decades recorded considerable r ise in number of branches .

Expansion took place rapidly after 1961. The avai lable

record shows tha t , five pr ivate banks aierged with

the Bank fo Maharashtra in 1961. The bank opened its

100th branch in 1965 and reached the figure 164 in 1969.

This shows that expansion was at a rap id rate between

1961-69. Phenomenal r ise in number of branches after

nat ionalizat ion can be at t r ibuted to shift from "class

Banking" to "Mass Banking". Similar trends are observed

in business volume and staff s t rength. However, whether

r ise in manpower matched with growing volume of business

and increasing number of branches , needs detailed ana lys i s . '\A -the -ioyihoominS Chdpftir. To suum-up^ irise iv\ n u w i ^ c r

This is attempedj^of branhces , and in business volume

show that bank continued to progress right from its

inception and the process of nationlization accelearated

the ra te of progress .

Distribution of Branches:

With branch expansion after nationalization

the bank g a v e - u p i ts regional frame and assumed national

level s ta tus by opening branches all over Ind ia . Table

5.2 provides data regarding distr ibution of branches

of Bank of Maharashtra .

5 . 4 ^ 1

TABLE 5.2

STATE WISE AND AREA WISE BRANCHES

POSITION AS OF 31.12.1989

Sr . Name of s t a t e R u r a l Semi Urban Metropol i tan Total

No. Urban

1 .

2 .

3 .

4 .

5 .

6 .

7 .

8 .

9 .

10 .

1 1 .

1 2 .

1 3 .

1 4 .

1 5 .

1.

2 .

3 .

Andhra

Biha r

Guj ra th

H a r a y a n a

K a r n a t a k a

Kera la

Madhya P r a d e s h

M a h a r a s h t r a

Pun jab

R a j a s t h a n

Tami lnadu

Utter P r a d e s h

West-Bengal

Jammu/Kashmir

Goa

6

-

9

-

6

-

81

443

-

-

-

-

-

-

3

UNION TERRITORIES

C h a n d i g a r h

Delhi

P o n d i c h e r i

-

-

-

2

-

5

1

6

-

13

137

2

-

-

-

-

-

4

-

-

-

4

1

11

4

15

2

17

88

3

6

5

7

-

1

-

1

-

-

9

-

7

-

9

1

-

131

-

-

6

2

10

-

-

12

1

21

1

32

5

36

3

111

799

5

6

11

9

10

1

7

1

12

1

Tota l 548 170 165 188 1071

•2-&Ti

5.5

Data presented in Table 5.2 shows that though the bank

claims to be a nat ional level organisat ion, i ts branches

and therefore business concentrated in two states only

viz Maharashtra and Madhya pradesh. Out of 1071 branches,

910 ie . more than 84% of total bJ-anches are in these two

s ta tes . The largest number of branches of course,

in Maharashtra (799 out of 1071 or 74%), Thus, in the real

sense ; of the form, it may st i l l be categorised as

a regional Bank with marginal spread out - of the S ta te .

Operating from a combined administrat ive and business

office in the beginnging, the bank spreaded its organis­

at ional s t ructure with ver t ical growth and geographlical

extension oi business . It functions from Head office at

Pune with the help of 10 zona l , & 23 Regional Offices.

Increase in business volume and qual i ta t ive changes therein

coupled with expansion Of branches resulted in induction

of new manpower which reached the figure of 17104 in

19SG. Addition to manpower to shoulder new responsibil i t ies

brought in qual i t ia t ive changes in i ts composit-ion, making

mcinpower planning a more difficult and complex process.

Implications of these changes are discussed in detail

in the forthcoming chapte rs . In conclusion, it may be

stated that with growth, challenges and complexities

have also come demanding managerial skil ls to deal vfith

the s i ta tu ion. Manpower planners must analyze this si tuation

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5.6

property and obtain- c lu-es for developing better plans

for better tomorrow. Having studied the profile of the

Bank, the discussion tha t , follows deals with the history

and objectives of the Bank.

5.3 History of the Bank:

The Bank of Maharashtra Ltd. was established

in the year 1935, in Pune, in Maharashtra s ta te . Finance

for agr icul ture has entered the priori ty l is t of Banking

Inst i tut ions in Ind ia , only recently, i . e . in post

nationlization period, but Bank of Maharashtra takes

pride in claiming that they accorded priority to

agr icu l tu ra l finance r ight from inception. In fact, it

was the motivational force behind i ts establishment. The

stor-y of how the bank was established dates back to

1950-35. During these days^ agr icul ture in the region

was monsoon dominated. British ^Government had no will

to improve the s i tuat ion. The founders of the bank included

eminent social and ieconomic thinkers l ike S/s V.P. Varde,

D.K. Sathe and V.G. Kale, and others . Most of them belonged

to middle class and had no background in banking business,

but they were persons gifted with vision. They predicted

that reg ion ' s prospertiy lies with the development of

agr icul ture and allied indus t r ies , one a l ternat ive to change

1 Amfc^v t -^ ' 1 Uljriry. 1 \ f j \ \ I - I I • Ill mil n t l i i

0 ,0 '

5.7

the si tuation was to motivate common people to save as

per their C3»,pacity and to channalize their savings through

a banking inst i tut ion for regional developent. Inspired

by this noble cause, the founders decided to set up

a commercial bank to serve the common man. This is

how the Bank of Maharashtra Ltd. came into existence

in the year 1935.

As the name implies Bank of Maharashtra Ltd.^ was

promoted with the objective tha t , it should be a regional

bank for a pa r t i cu la r community and a pa r t i cu la r l inguist ic

cul ture i . e . Marathi speaking people. At the time of

i ts establishment i . e . in the year l^SS ^ there was no

seperate state viz "Maharashtra ", The founders of the

Bank, therefore, decided to extend its area of operational

jur isdict ion to include a l l those places where

"Maharashtr iyan Culture" prevai led . Thus, places from

Pune to Bombay in the western l ink, Bombay to Nagpur

towards estern l ink, Pune to ' Khandesh-Malwa towards

northern link and Pune to Belgaum towards southern

l ink, were Identif ied as a reas of operational jur isdic t ion .

Major events in the history of Bank of Maharashtra:

1. Maratha Chamber of Commerce and Industry resolved

on 8th Feb 1935 to form a commercial Bank to be

named as "The Bank of Maharashtra Ltd';

5.8

2. The Bank of Maharashtra Ltd=. was formaly registered

as a Banking Joint stock Company^ under the Banking

la w^ bil l 1913.

3. The Bank of Maharashtra s tar ted to t ransac t business

w.e.f. 8th Feb 1936 at Kakakuwa mension, Laxmi Hoad

Pune.

4. The Bank opened i ts first branch office outside

Pune (in Bombay) in the year 1938»

5. The Bank separated main branch and Head Office

from each other and established separate ly i ts head

office in the year 1945.

6. The Bank moved i ts head office and main branch

in i ts own building in the year 1953.

7. The bank was brought under the f inancial control

of reserve Bank of Ind ia , which was nationalised

w.e.f. First Nov. 1949 and subsequently on introduction

of Banking Companies Act 1949.

8. Opened branch at Hyderabad, the first branch out

side the State.

9.- The Bank accepted merger of Banthia Bank Ltd in

N

the year 1954.

10. The Bank furhter accepted merger of other three

small banks viz Bank of Konkan, Bharat Indus t i ra l

Bank and Bank of Nagpur in the year 1961.

11.- The Bank celebrated i ts Silver Jubilee in the year

year 1961. and crossed a mark of 61 number of

branches in this year .

5.9

12. Social control order was made applicable to the

bank due to which the Bank was asked ^o appoint a

full time sa lar ied C hairman in place of an Elected

Chairman to Head the Board of Directors , as well as to

head the supreme Administration of the Bank

13. The Bank was Nationalised on 19th July 1969.

14. Transfer of under takings Act (Banking Laws B i l l )

1970 was passed by the p arliament of India under

whi-ch the proccess of Bank Nationalisation was

legal ised.

15. Bank introduced Divisional set -up for better

Administration in the year 1966.

16. Bank introduced Zonal setup between Head Office

and Divisional offices in the the year 1976.

17. Bank introduced Regional level "setup in the year

1983 to function in between the Head office and

Zonal level office..

18. The Bank withdraw its Regional level set up and

and restructured the organisat ional set - up as

per the s tandard setup as recommended by the

Indian Bank 's Association. Divisional office level

was renamed as Regional Level.

SkoS

5 .10

20. Bank introduced Long Range' ^Planning system for the

first time in the year 1986. for a period of 5 y e a r s .

21. Bank 's recruitment powers ujCe transferred to Banking

Service & Recruitment Board for recruitment of officers

and c le rks .

Small Bank M£ir ger

1. The Deccan Indus t r i a l Bank Ltd. established on

22nd February , 1939 at Pune merged in the montli

of March, 1961 with nominal capi ta l of Rs. 65,000/-

deposit of Rs.2.97 lakhs and 6 employees .

2. The Bharat Indus t r i a l Bank Ltd. establ ished on

14th April 1938 at Pune merged with the Bank

on 1st July, 1961 with capi ta l of Rs. 4 lakhs deposits

of Rs. 81.44 l akhs , and staff of 52 working in i ts

12 branches .

3. The Bank of Nagpur l t d . Nagrpur established on 13th

November, 1917 merged on 8th April 1961 with its

16 branches cap i ta l of Rs. 10 lakhs deposits of

Rs. 38.83 lakhs and 40 staff members.

4. The Bank of Kokan Ltd. Malvan, established on

9th March, 1945 merged on 1 9th June, 1961 with

capi ta l of Rs. 5.18 lakhs and deposits of Rs. 14.39

l a k h .

5.11

REGIONAL STATUS :

With the merger of these banks , geographical coverage

of the Bank, of . Maharashtra improved considerably^

I5n the mean time a major development took place at National

level in the form of the creation of a separate State viz.

Maharashtra , out of 26th Districts of Maharashtra State,

the Bank had i ts branches in 25 • d i s t r i c t s . The merger

thus helped the bank to accomppjish the objective of i ts

founders to develop i t as a REGIONAL BANK.

5.4 CORPORATE OBJECTIVES :

The objectives of the Bank were ennumerated at the

in i t i a l s tage through the Memorandum of Association of

the BANK OF MAHARASHTRA LIMITED", which was established

as a Banking company in terms of provisions of Indian

Companies Act. (Banking Laws Bill ) 1913.

THESE Objectives were framed by the founders and

promoters of the Bank in the year 1935 considering the

economic-cum-financial s i tuation of the Society to be served

through Banking services ,

KEEPING in view the a rea of operat ional jur isdict ion,

the cul tura l environment of the people, the economic tren^ls

of the region, the need and expectations of the people

in the a rea , the Psychological and philosophical wave

length flowing > the founders placed before their

2,0 q

5.12

r

foresight to :

1. Serve a Common man

2. By a Common man

3. Through a Common man

ACCORDINGLY , three 'M's were designed in the

emblem of the Bank to indicate the-

1. Man 2. Ma rket ing 3 . Money.

First M. i . e . Man s tands for human being Second

'M' s tands for Marketing i . e . t ransact ing and serving

the Human factor.

Third 'M' s tands for Money i . e . currency & papers

t ransac t ing money.

To fulfill the business objectives, the Bank decided to

Accept deposits from general publ ic , the deposits which are

repayable on demand, for money lending and investment, such

repayments to be madekydraft, cheque, order or otherwise.

THE business objectives were thus defined as follows:

1. To extend the Institutiomal Financial Assistance

to fostering the Trade Scor.merce of the a rea .

2. To invest the funds for the Socio-economic Development

of the people in the Area.

3 . To do these businesses , to accept the deposits from

general publ ic .

a.ol

5.13

IN addition to the above, as an anci l lary banking

business , the Bank decided to -

4. Accept the deposits for contracted terms.

5. To extend the remittance & collection facilities of

funds and inst ruments .

6. To provide safe deposit locker and vault facilities

to the customers.

ACCORDINGLY, the Board of Directors, decided to

project corporate level Business goals every year . The

goal so determined were on the basis of -

1. Quantitative business expansion 4-

2. Qualitative business expansion.

Qualitative business expansion was projected on

the basis of 'va lue expectat ions ' in terms of growth in

working cap i ta l , deposits , advances , remittance & collection

business and ultimately net profit derived out of total

r esu l t .

Quantitative business expansion was projected in i > r a l l c h e S ^^^^

terms of number of customers, number of operatingy\^ various

types of banking business in terms of types of deposit

schemes, advances schemes/categories, types of anci l lary

business i . e . number of numerous services offered.

5.14

DUE to i ts planned and determined aproach the bank

had shown net profi-t position r ight from the first year

of i ts Banking business commencement. This gained and

created a sense of confidence in the minds of the founders

and the people working for the Bank, So also, the share­

holders in pa r t i cu la r and the public in general gained

confidence about the functioning of the Bank.

In i t i a ly , H,0. & B.O. were combined.

WHEN the Head Office was separated from the main asom

branch, it s tar ted to function p u r e l y / Administrative Office

for business development and control on the working systems,

to fulfill the Gojporate level objectives.

HEAD Office star ted to set-up Annual corporate goals

for every year and branches were guided to do the business

in terms of fulfillment of the Corporate goals .

Nationalisation of Banks in the year 1969 brought

revolutionery changes, in approach and objectives of

the Bank, Previous to that Social Control Order regulated

the credit policies of Banking on which the Manpower

working in the Banking was required to mould the t radi t ional

concepts of Banking Business.

NATIONALISATION of Banks has given sharp turn

in moulding Bank Objectives from

1. Profit oriented Trading Finance Inst i tut ion to-

2. Socio-Economic DevelopmeiH^al Finance & Investment

and Cousulting Ins t i tu t ion .

i2.)0

5 .15

NOW the Banking schemes and their implementations

are based upon the Social Education through Banking

Ins t - i tu t ion . Banking is not a sign of 'Luxury ' to a r ich

person, but it is now projected as an essential par t of

daily routine life in the o v ^ a l l process of socio-economic

Development act ivi t ies and also control of monetary

t ransact ions of high va lues , may be in cash or thorugh

instruments,

PARTICULARLY, public is now made aware about handling

of var ious de-nominations of currency notes for exchange

and monetary t ransac t ions .

MOST important effect of the changed banking objectives

and functioning systems in accordence with these changes

is tha t Banking t ransact ions as compared to cash t ransact ions

have changed and increased through the use of various

types of instruments,To state more specifically —

1. Through cheques lodged for-

a) In te rna l Branch Transaction transfer from one

account to another .

b) Inter Branch collection or Remittance Transact ions.

c) Inter Bank t ransfers and collections of funds

within the same township/place .

d) Outstation inter-Bank or Branch or Ins t i tu t ional

Transactions of collection and or remittances.

5.16

2. Through Demand draf t s .

3. Bills of Exchange

4. Telegraphic Tansfers.

5. Mail Transfers .

6. Physical cash .

THE Corporate level objectives are now determined

in terms of directives received from the Government of

India directly and or through the National Banks and

such Inst i tut ions such-

1. Reserve Bank of I n d i a .

2. National Agricultural & Rural Development Bank.

3 . Indus t r i a l Development Bank of I n d i a .

4. Export Import Bank of I nd i a .

5. Deposit Insurance & Credit Guarantee Corporation of

I nd i a .

TheSe Corporate goals are monitored during

the period for implementation and lateron evaluation to

compare the performance with t a rge t s i . , e . objectives,

takes p lace .

EFFECTS OF BUSINESS OBJECTIVES :

MANPOWER Planning in Banking is also projected

in terms of business objectives. Prior to Bank Nationalisation

the business objectives of the Bank were purely commercial

and these were projected only in term of Banking business

5.17

in limited sense of mobilisim.} the deposits for money

lending bus iness .

\ BUSINESS objectives. Prior to Bank Nationalisation,

were non—targated, whereas after Bank Nationalisation,

the 'Targated Objectives' concept was introduced.

PRIOR to Bank Nationalisation, the only Business

objective was to earn higher and higher profit through

the best possible Banking, including anci l lary Banking

bus iness . HOWEVER, since las t twenty yea r s , as an effect

of Bank Nationalisation, with the implementation of District

Lead Bank Scheme. Annual Targets are given to each

Branch in terms of quant i ty i , e . number of accounts

(which is also called as Physical target ) and quali ty

i . e . amount (which is also called as value-based target)

under each- of the five sectors declared as Priority in

view of Socio-Economic Development of the Command area

of the Bank . Simultineously, the processes of determination

of 'COMMAND AREA' of the Branch also came in existance

and now the Bank 's branches a re required to draw an

Annual plan in view of the ava i lab le environmental

data and accordingly the targets are fixed.

THE Business ta rge ts have got definite impact and

effects on Manpower Planning in Banking, as the Manpower

5.V3

5.18

is also planned in terms of position of business retained

at the end of the accounting year . HOWEVER, the new

wave is also coming in Manpower Planning in Public Sector

Banking that Manpower should be planned not only in

terms of position of retained business , but the process

should be based on the business to be t ransacted during

the year i . e . instead of only considering final position

the base position plus the physical and value based t a rge t s ,

in consideration of the in f ras t ruc tura l facil i t ies

ava i lab le in the areas of operation of the Branchy should

be considered, THEREFORE, Manpower is required to be

X planned, be estimated separate ly according to :-

1. the type of area i . e . Metropolitan, Ucban Semi-

Durban, Rura l ;

2. the size of the branch i . e . Very Exceptionally l a rge .

Exceptionally l a rge . Large, Medium, Small.

3 . The type of business t ransacted and ta rga ted i . e .

Indus t r i a l finance. Foreign Exchange

Trade finance. Transpor t, Wholesale/Retail t r ad ing ;

Agriculture & Rural development, Service centres

Depositors-oriented Residential complex branch, etc

IN addition to these three important factors^ following

sub-factors , which are indirect ly related with the business

objectives are also required to be taken into consideration:

5.19 AH

1. Age of the b r a n c h .

2. Bge-group of the present Manpower in the b r a n c h .

3 . Locational aspect of the branch .

4. Inf ras t ruc tura l facil i t ies provided and needed at

the b ranch .

5. Social conditions prevai l ing in the area of operation

of the branch .

THE Bank is formulating annual business t a rge t s ,

based upon the performance budgets submitted by the

branches . NORMALLY, the business ta rge ts are projected

20% over the expected position of the proceeding year of the plan

i . e . running business year , as the process is undertaken for

next year , about 3 to 6 months before completion of the

proceeding yea r .

NOW It is under condideration with the Bank, as

per the Central Government directives to prepare the Long

Range Planning (LRP) l inking with the five y ea r s ' plan

of the country. If this process is implemented, the MANPOWER

planning proc ess will not remain as annual exercise,

but It may turn as a scientific exercise with long term definite

projections, with annual review.

5.6 EFECTS OF WORKING METHODOLOGIES :

THE Modern Banking business as developed about X

150 years before, has been based upon the systems of

5.20

recording the entr ies of each t ransact ion through the

mode of vouchers.

THERE are various mediums of t ransact ing the Banking

business : THESE are :

1) Slips for customers -

a) Pay- in-s l ip for deposit t ransact ions »

b) Withdrawal slip for withdrawing money,

c) Cheques and bi l ls for collection & payment.

d) Demand Draft, Mail Transfer & Telegraphic Transfer

for remit tances.

2) In te rna l Office vouchers :

a) Credit vouchers for credit t ransact ions ,

b) Debit vouchers for debit t ransact ions •

c) Pay-order to effect payment on behalf of the

Bank.

FOR in te rna l record and Accounts Keeping and updating

the position in the respective accounts, var ious subs id iar ies ,

cash scrol ls . Transfer scrol ls , l edgers . Registers, cha r t a ,

cash book. General Ledger, Account progressives; Trial

Balance Register, Cash Docket, voucher Register, Ledgers

e t c , a r e maintained.

THE working methodology to maintain al l these Registers,

Books, vouchers etc . are based on the mannual writing

system.

aii>

5.21

EVEN though, the printed stat ionery is used in Banking

to s tandard ise the handling of t ransact ions , the work

of mannual writing involves much more. ONE credit voucher A\anWs to ^e 5»\Wc\-in

needs about eleven^ in calculat ions in va lue . COUNTER-

foil of each main par t also needs to be recorded with

the same number of de ta i l s . AS such, withdrawal slip

or cheque use needs about six blank to be f i l led- in correct ly.

ENTIRE mannual writing requires to be done without

overwrit ing, otherwise needs full authenticat ion of the

person making the t ransac t ions .

ENTIRE National customers in general and the Bank

clientele before Nationalisation of the Banks and after

nat ional isa t ion, always compare the quality of services

rendered through the Banks and cri t ise the present i . e .

post nat ional isat ion service conditions and quali t ies

of Banking setup i . e . Manpower in services.

HOWEVER; such comparison is Just justified even

though may be proper in view of the c r i t i s e r s . BEFORE

Bank Nationalisation;, in the year 1968 per employee business

was of Rs. 5.04 lakhs as aga ins t per employee business

as on 31-3-1989 was of 25.25 lakhs in other words; the

per employee busines has given rise over five times.

Business of the Bank increased from Rs. 122.76 crores

to Rs. 4362 crores in the year 1989 from the year 1968,

^ H

5.22

thereby recording about 36 times r ise as against the

MANPOWER of the Bank in the year 1968 moved from 243.4

upto 17104 in the year 1989 thereby recording seven

times r i s e . IN other words we can say that the productivity

of present Manpower is about five times more than the

productivity of the Manpower prior to the Bank

Nationalisation.

BUT s t i l l , th is pleading may not suffice to justify

the Manpower position. THE Banking business after

nat ional isat ion has changed to 'MASS Banking' from the

ear l ier 'CLASS BANKING'. PRESENT days Manpower in Banking

has been considered as a cata l is t Agents for Socio-Economic

"kransformation of our poor and Undeveloped society so

as to reach the National Objective of formation of Socialistic

Pat tern of Society. MANPOWER in todays ' Banking has

been visual ised as paid Social Worker of the National

Reformation for tomorrows' change.

THEREFORE, Manpower in Bank has to shoulder more

and more responsibi l i t ies in view of fulfillment of social

commitments, for which our age-old working methodologies

are necessari ly required to be changed. WE have to opt

for advanced technology for getting effective desired resul ts ;

ofcourse, without making any compromise on the vi tal point

of creat ing of new Manpower employment opportunities

for upcoming educated National t a l l en t s .

5.23

Computerisation of Bank 's services is an answer

to the problem. The introduction of computer in Banking

will give a perfectional touch to the working methodologies.

5.7 Bank of Maharashtra . Organisational Structure -

Management of an enterprise invar iab ly depends

on organisat ional s t ructure which defines functions,

responsibil i ty and authori ty of organisat ional people.

Organisation s tructure is described as the basi,c framework

within which the decision making behaviour of an

Executive takes p lace . The na tu re , s tructure and the opration

of any organisat ion would depend on the specific objectives,

OrganiseSonaL objectives, s t ructure and manpower are related

with each other. Objectives guide the structure and

people accupy diff ernt Positions • ^ the s t ructure to

accomplish these object ives . This implies that with the

change in the objective^ s t ruc turea l changes and therefore

chaiiqes in manpower are inevi tab le . Having studied

the objectives of the Bank under consideration, the

forthcoming discussion is devoted to i ts organisat ion s t ructure .

This discussion begins with factors leading to changes

in organisa t ional s t ruc ture of a banking organisat ion,

followed by organisa t ional changes in Bank of Maharasht ra .

A^°l,

5.24

Organisational s t ructure in banking changes in

accordance with the following factors, in addition to -the

objectives of the Bank. .

1. Incremental r ise in number of branches .

2. Quantitative r ise in business at the branches .

3 . New challenges evolving in anci l l iary banking buss iness .

Since las t ten yea r s , the commercial banking is

required to extned new types of servies a s :

1. Consultant

2. Social reformative guide

3. Planner for socio-economic, changes .

4. Traniner and communicator of systems and procedure

To meet the above chal langes bank is required to

recrui t specialised manpower in the areas of -

1. Indus t r i a l finance;

2. Engineers in different d isc ipl ines .

3. Technologists.

4. Chatered Accountants.

5. Agricultural and veternery g radua te s .

6. I r r iga t ion engineers; geologists.

7. Indust r ies promotion officers in cottage and r u r a l

sectors-

Other areas include -

Security officers; f i re- l ight ing officers; Automobile

engineers; personnel officers; social welfare officers;

^m 5.25

sports officers; cu l tura l development officers; Law officers;

official language officers; foreign language officers.

Trairers l i b r a r i a n Print ing techologlS'ts, Medical practioner etc.

The new Positions l isted abbve ^«und their Piaces mthe

organization s tructure of a Banking Institutuj.on because

of cha^oges in Banking environment. This pract ice of recrui t ing

var ious types of people, confirms our ear l ie r observation

in s t ructure clnol as per changs in objectives.

4.14 ORGANISATIONAL STRUCTURE OF Bank of M a h a r a s h t r a -

The Bank of Maharashtra Ltd. was registered as

a Public Limited company under Indian companies Act

(Banking laws Amendment bil l) 1913 and came into existence

on 16th September, 1935. The Bank star ted actual Banking

operations by opening an operating office at Kakakuwa

Mension, Laxmi road, Pune on 8th February 1936.

The organisat ion s t ructure of the Bank was very simple

as shows in the following char t .

Bank of Maharasht ra

n raan isa t iona l Structure-1935-1945

Board of Directors ' T •

General Manager -^

S^ain Branch Pune ^

Branch Officerj-

5^1

5.26

The main branch located at Pune was Fun ctioning

as Head Office a l so . The General Manager was having

al l power for routine adminis trat ion. Branch Manager

were empowered to appoint p a r t - time staff as per guidelin-es

from the Main Branch, Board of Directors used to exercise

effective control on Banking operat ions.

Establishment of Central Office i

Better performance during the in i t i a l years motivated

the Bank to undertake expansion programme. Accordingly

total number of branches reached 12 in 1945. As pointed

out ear l ie r a l l branches were controlled by main branch

Pune . There was no seperate Head Office or control unit ,

with the expansion of branches , the Bank felt the need

for seperation of there functions. Thus, in the year 1945

the Bank took a decision to establ ish two seperate offices.

1. As a ITorporate level Head Office,

2. As a main branch .

Organisation s t ructure was changed accordingl y

and Head Office was seperately es tabl ished. The new structure

was as follows.

Bank of Maharashtra organisa t ional Structure 1945-1965

C h a Y t - . ? - . 2 ' Board of Directors ^ ^

Central or Head Office

Branch Offices

5.27

This gave a typical qual i ta t ive momemtum to the

Bank in^ fulfilling the expectations of the shareholders

in general and ambitions of Bocird of Directors in pa r t i cu la r .

Creation of separate Head Office as a purely Administrative

functioning office, facil i tated the Bank.

1. To plan for effective business development,

2. t o support the same thourgh Branch expansion

programmes,

3 . TO provide suitable manpower, implement the various

business and branch expansion schemes .

4. To exercise effective control over the functioning

of the manpower, to determine working procedures

in terms of Banking Pr inciples .

5. To exercise precautionery measure on the corrections

of the i r r egu la r i ty / ies created by branches , in

time.

6. To guide the manpower at branches sui tably and effectively

for fault less functioning^

7. To ensure speedy disposals of customers' proposals

for var ious credit and service faci l i t ies .

8. To determine service conditions and Regulations

within the framework of the Memorandum of Association

and Articles of Association of the Banking company.

9. To resolve the in te rna l as well as external disputes

related with the Banking business and the manpower

engaged.

5.28

11. To keep e lec t ive liason with various financing

Semi-Government and Government Departments in

general and with the Reserve Bank of India in

par t i cu la r ,

Establishment of Divisional Officqs :

FURTHER diversification in organisat ional structure

took place when the Bank crossed a land mark of 100

branches ; in the year 1965.

NEW Administrative set-up took place with the

establishment of Divisional Office' between the Central

*» office and Branches. For a group of about 20-30 branches

one Divisional Office was provided as a MASO level

controlling-cum-guidance Administreative unit . However,

powers lower than the Central Office, but higher than

the Branches in respect of : X

1 Staff Recrutmisnt

2. Staff Administration i , e . leave; Travel allowance

b i l l s ; t ransfers ; post ings, discipl inery matters e tc .

3 . Business control i . e . sanction of Advances; prematurity

payments of Term deposits , deceased claims; issue

of duplicate demand draft in lieu of lost

one etc.

5. Opening of new branches and drawing branch expansion

programmes^ were delegated to divisional office.

£i ^-^

5.29

LIKEWISE THE bank opened four Divisional

1. Pune located Central Division office.

2. Bombay located V(?estern Divisional office-

3. Pune located North Divisional office

4. Pune located South Divisional office.

The following chart dipicts the renewed s t ructure

. fioard; 0 ^ 0 iRECfORS ChQrX-S-?>:

T HEAD OFFICE

DIVISIONAL OFFICES (4) BRANCHED (124)

LATER-on North and South Divisional Offices were

shifted to Nagpur and Hyderabad respectively. The Divisional offi<.Ct 1" The

office was headed by a Senior ExperienedJ^Executive cadre .

Various sections were provided in this office to deal with

different matters coming from branches for decisions and

matters f o r c o m p l i a n c e from t h e Head o f f i c e .

Senior, well

qualified officers were provided in these i i ivis ional offices

to head each of the sections.

5.30 5,25

OFFICERS were supported with the services of clerical

staff with ski l l and efficiency' to deal with the various

types of Administrastive office functions such as - Telex

operat ing; typewrit ing; record keeping, inward-outward;

reception; scruiny of statements and re tu rns , preparat ion

of notes and routine office correspondence, staff matters,

s t a t i s t i ca l data prepara t ion e tc .

Creation of New Divisions :

FURTHER res t ructur ing in the organisat ional set-

-up took place in the year 1972 by creation of two new

Divisions out of North & South Divisions. The new set-up

was as follows :

C h a y t - 5 » ^ ' .

flead Office (Pune)

Divisional offices

T f Pune

V Bombay

Hyderabad

Mctgpat* Nasik

Aurangabad

The period 1965-70 saw a dynamic change in the

banking |old i . e . Nationalisation of 14 major commercial

Banks.

Government took over business of these banks and

Board members elected amongst the shareholders were

5.31

r e p l a c e d by the Baord member5>,^appointed by the Government

of I n d i a , the new Board was hfeaded by the Cus tod ian ,

a full t ime l eve l Executive^employee of BANK.

P rev ious to t h i s , a n o t h e r l a n d m a r k in the Top leve l

B a n k i n g Admin i s t r a t i ve s e t - u p took p l a c e . in the form

of appo in tmen t of a ful l t ime top Execu t ive to l ead the

Board of Direc tors i . e . The c h a i r m a n a n d Manag ing Di rec tor .

Accordingly in J a n u a r y 1968. The Cha i rman appo in t ed

by the s h a r e h o l d e r s was r e p l a c e d by the Top Execu t ive

e l e v a t e d a s Cha i rman of the Board . The new Cha i rman

was a s k e d to ac t in a c c o r d a n c e with the po l i c i e s d e c l a r e d

by the Government of I n d i a from time to t ime . Res t r i c t ions

were b r o u g h t on the commercial b a n k i n g b u s i n e s s of the

Bank .

ALONGVi?ITH N a t i o n a l i s a t i o n , the Bank ing b u s i n e s s took

a new t u r n , due to which new a v a n u e s of Bank ing b u s i n e s s

were i n t r o d u c e d , which r e q u i r e d s p e c i a l i s e d Manpower,

to d e a l with THESE were :

1. Implementation of lead Bank scheme at District levels .

2. Classification of sectoral deployment of funds.

4. Determination of qual i ta t ive and quant i ta t ive targets

under Priority sectors.

5. Establishment of Agricul tural Finance Cell.

6. Establishment of small scale Indus t r i a l Finance Cell.

^^1

5.32

7. Establishment of Legal cell to deal with new types

of Chal langes.

8. Establishment of Public Relations cell to deal with

suggest ions, grievences,N:omplaints etc.

Creation of Zonal Offices

Banking scene s tar ted to take a continuous change

in modes and approaches . Nationalisation process accelerated

branch expansion programme par t i cu la ry in the Rural

and Semi-urban a r e a s . Fast branch expansion forced the

Bank to re-design the organisa t ional set - up in the year

1976.

FOR the first time, the Bank introduced a new t ier

of maso-level Administrative office between the Head Office

at Pune and various Divisional Offices i . e . 'THE ZONAL

OFFICE' Two to three Divisions comprised one zone, headed

by a senior level Executive in the rank of Assistant General

Manager. He was designated as a ZONAL Manager. He

was assisted by two Assistant Divisional Managers in

his office to look after :

1. Administrative Banking se t -up .

2. Operational Banking bus iness .

Divisional Managers in the field were provided with

ass is tance of AREA MANAGERS for a group of 10-15 branches

within the Division*The new organisa t ional set-up of 1976 was-

a^ai

5.33

I . Head Office at Pune >

I I . Zonal Offices a t -

1. Pune named as Central Maharashtra Zone comprising

of (a) Pune city Division; (b) Pune Rural Division;

(c) Kolhapur Division at Kolhapur.

2. BOMBAY known as Western Zone comprising of -

(a) Bombay city Division at Bombay.

(b) Thane, Gujrat, Kokan Division at Thane.

3. NAGPUR named as Vidarbha Zone comprising of-

(a) Vidarbha (West) Divisions at Akola.

(b) Vidarbha (East) Division at Nagpur ,

(c) Nasik Division at Nasik ,

(d) Maharhawada Division at Aurangabad /

4. BANGELORE named as South zone comprising of-

(a) Andhra & Tamilnadu Divisions at Hyderabad.

(b) Karnataka & Kerala Division at Bangalore.

5. NEW DELHI named as North Zone comprising of-

(a) North Division at Delhi

(b) Madhya Pradesh Division at Bhopal.

5.34

ADDITIONAL ZONES AND DIVISIONS ::

FORTH R e - o r g a n i s a t i o n a l in the y e a r 1980 due

to a d d i t i o n of new Div i s ions a n d Zones . SEVEN Zones with

s ix t een d i v i s i o n a l offices were func t ion ing in the new

s e t - u p . Concept of e x c e p t i o n a l l y l a r g e b r a n c h was a lso

i n t r o d u c e d a t t h i s t ime . THESE t y p e s of b r a n c h e s were

headed by a Senior l e v e l officer in Execu t ive Cadre i n

Officer s c a l e IV.

DURING the pe r iod 1976-80 Manpower Management

c a d r e was r e c l a s s i f i e d a s pe r P i l l a i Commitee

Recommendat ions . LIKEWISE FOR ENTIRE PUBLIC-S£CTOR

B a n k i n g I n d u s t r y , a s t ancJ^ rd i sed Manpowser s t r u c t u r e

was p r o v i d e d a s u n d e r : -

1. Cha i rman & Manag ing Di rec to r .

2 . Execu t ive Di rec to r .

These two to be a p p o i n t e d by the Government of

I n d i a on con t r ac t ed term . b a s i s for a per iod of t h r ee to

five y e a r s . THESE were not c o n s i d e r e d a s 'Bank e m p L o v e e .

w i th in the perv iew of o f f i ce r s ' s e r v i c e R e g u l a t i o n s . OTHER

c a t e g o r i e s w e r e : -

1. Genera l M a n a g e r - Top Management Grade VII Officer.

2 . Deputy Genera l Manage r , Top Management , Grade

Vi Officer.

3 . A s s i s t a n t Genera l Manger , Senior Management , Grade

V Officer.

^ •' :b^\ii 1 3 0

-i^^^^'dPlJ^SMJDllQi^SsA^IcXiin

^ 3 \

5 .35

4. Divisional Manager, Senior Management, Grade IV

Officer.

5. Middle -management Grade I I I officer.

6. Middle-management Grade II Officer.

7. Junior Management Grade I Officer,

ES^TABLISHMENT OF REGIONAL OFFICES ;;iqB3:

FIFTH Re-organisat ion/ as sUgwn in the following c h a r t ,

was implemated in the year 1983 by creat ing one addit ional

a d < n i o n i s t r a t i v e o f f i c e s between Head Office at Pune and

Zonal Offices in the field. This new type of Administrative

office was named as 'Regional Office' to be headed by

the Top Management level Executive in the rank of Deputy

General Manager and he was designated as a 'Regional

Manage r .

At th is time three such Regional Offices were established

namely ; -

1. Central Region at Pune /

2. Western Region at Bombay 3. Northern Region at Delhi.

Each Region was comprising of 2-3 zones, each zone

had 2-3 Divisions; and each Division had 25-40 branches .

WITHDRAWAL OF REGIONAL OFFICES:: 1 9 8 6 : ;

SEXTH Re-organisational set-up was introduced in

the year 1986-87 when the Regional Office' set-up between

the Head Office at Pune and Zonal Offices in the fields

was withdrawn and new zones were formed.

2.31

5 .36

Divisional office was renamed as 'Regional Office' and

the Divisional Manager was re-designated as 'Regional

Manager ' .

AT PRESENT the organisa t ional set-up of the Bank

is as under :-

1. Head Office at Pune.

2. Ten Zonal Offices as follows

a. Central Maharashtra Zone No.I at Pune.

2. Central Maharashtra Zone No.II at Kolhapur

c. Central Maharashtra Zone No.I l l at Nasik

d. Marathawada Zone at Aurangabad.

e. Western Zone at Bombay

f. Thane & Gujrat Zone at Thane

g. Vidarbha Zone (Eastern Zone) at Nagpur.

h . Madhya Pradesh Zone at Bhopal

i . Northern Zone at New Delhi,

j . Southern Zone at Bangalore.

3. Twenty three Divisional Offices/Regional Offices a t -

1. Bombay city Division at Fort Bombay

2. Bombay Suburb Division/Region at Bombay

3. Calcutta.

4. Gujrat Division Ahmedabad

5. Thane Urban & Raigad Dist. Region at Thane

4. Thane Rural Region at Thane

7. Karnataka & Kerala Region at Bangalore

2. J J

5.37

8. Andhra & Tami lnadu Region a t H y d e r a b a d

9. Pune City Region a t Pune

10. Pune R u r a l Region a t Pune

11 . R a t n a g i r i S i n d h u d u r g & Goa Region a t R a t n a g i r i

12. S a t a r a Dis t r i c t REgion a t S a t a r a .

13 . Kolhapur & Sang l i Dis t . Region a t Kolhapur

14. J a l g a o n Dhule & Ahmednagar Region a t J a l g a o n .

15. Nasik Dis t r i c t REgion a t Nasik

16. So lapur & M a r a t h a w a d a Region a t S o l a p u r .

17. A u r a n g a b a d & J a l a n a Dis t r i c t s Region a t A u r a n g a b a d

18. V i d a r b h a West REgion a t Akola.

19. V i d a r b h a Eas t Region a t Nagpur

20. C h a n d r a p u r Region a t Nagpur

2 1 . J a b a l p u r Region a t JaBvalpur

22. North M.P. Region a t Bhopal

23 . Nor thern Region a t Delhi .

PRESENT ORGANISATION STRUCTURE OF THE BANK : C h a r t . N o 5-5'

BANK MANPOWER

HEAD OFFICE

N/ Zonal Offices (lO.)

Vl/

Chai rman & Manag ing Director

Deputy Genera l Manager (7)

r-~~ 3 a t Zonal Offices; 4 a t off ice.

\V Ass i s t an t Genera l Manager (18) 10 a t C e n t r a l Office 7 a t Zones

one a t Branch ( E . V . L . B . )

Cen t ra l

N1/

QSL,r\msjru'^-ti Snvan.uRL ~ t'lui'-njuy CHPjidtlT^urnaf^ '-'F i/iv?jsx.w.y-iLfcit jmr •1.3-

i2S

5.38

C h a e i 5 - g :

^ .\J' J e g i o n a l Offices (23) Chief/Regional Managers 7(79)

19 at Central Office as

Chief Manager;

3 REgional Rural Banks on Deputation

as Chairmen.

10 as Chief Managers at Zonal

Offices 24 as Branch Managers at

Very Large Branches;

23 as Regional Managers.

Exceptionally very Large branch

T i^sanaged by Asst. General Manager,

Very Large Branch (2A) Managed by Chief Managers.

.Large Branches (63) Managed by Officer Scale I I I (320) ^ ~ ^

Medium Branches(248) Managed by Officers Scale-II(881)

Small Branche5(745) .Managed by Officers Scaled(2444)

Service Branches(12) Managed by Scale I I / I I I Officers.

J ^ T — - " -Extension Counters(56) Managed by Scale I Oficers. Functional Sections Special Assistants (Award staff) .

^ —^—^ ^ ^ Service Counters Clerk (about 1005) (about 9889 Helpers T

Cleaners T

Sub-ordinate staff (appx.4229)

Sweepers-(appx.l287)

Central Office Organisation

As pointed out ea r l i e r , centra l office or Head Office as

a controlling unit was establ ished in 1945. It was headed

V~,JIO

5.39

by General Manager and was responsible for the 'the

day to day adminis trat ion. The Central office was divided

into following as Sections manned with Section officers.

1. Staffs

2. Operations,

3 . Credit

4. Accounts ,

Each department was headed by

senior Level Officer upto the year 1960

IN July 1960, the Policy and the Administrative function

of the Central Office and the branch business functions

were separa ted . At this time the Bank had 53 branches

with 835 total employees. IN 1962, after taking over 3

banks , the Bank was • divided in four Divisions on a

t e r r i to r ia l bas is nd four Uividional Managers were put

in charge of those Divisions. -

From April, 1964 this system was changed

to functions Administration. The Total functions were divided

in six categories and the following department were brought

into exis tence:-

1. Planning ^

2. Accounts^

3. Staffs

4. Inspection,

5. ADvances and

6. Branch Control •

5.40

S-B Manpower practices in Bank of Maharashtra:

As mentioned ear l ie r , t i l l introduction of the Banking

(Regulations) Comapnies Act in the year 1949. The Bank

of Maharashtra Ltd. , a Bank which was established with

typical cu l tura l concepts formulated corporate level policies

to run the Banking business and hence to s tar t with, the

promoters employed only three persons i . e . one manager

and two clerical ass i s tan t s , out of whom one was expected

to work as a cashier and the other one as a counter

clerk.

The staff members employed showed. utmost qual i ta t ive

resul ts during the very first year . The Bank secured and

retained the deposits to the extent of Rs 7.21 lakhs and

extended financial assis tance to the extent of 8s 2.61 lakhs

as position outstanding on last working day of the year

1936, showing thereby a net-working result on subscribed

capi ta l contribution of lis 1.04 lakhs thereto brought Rs

53&/- as net profit .

The basis of providing manpower at the work place

w as the number of service counters, persons to be deployed

thereo and persons to oe deployed for supervising the

job and the counter jobbers . As such, job evaluation

was always a determining factor to deploy manpower for

performance of such re la t ive job. The avai lable information

a2)<

5.41

shows that the manpower was linked to the retainca position

of Banking business comprising of retained deposits ^ and

outstanding advances as on the date of evaluat ion.

So also, to open any new branch core manpower required

was determined to the extent of three i . e . One cashier ,

one cournter service clerk and one Branch f\gent to manage

the business ,

The avai lab le data reveals that the Bank maintained

ra t io of per capita retained business to the extent of Rs.

3 lakh for first five years i . e . t i l l opening of the third

Banking business office. In the following years j staff was

increased but the per capi ta retained business was decreased.

The interviews with old officers of the bank enlighted

that the productivity of work force was measured at tha t

time on the bas is of average vouchers dealt per capi ta /c lerk

per- day. The anci l lary Banking business viz- collection

of inward/outward b i l l s , discount) purchase of bi l ls e tc .

was more important business ra ther than mobilisation

of deposits and extending term advances , as such to support

this anci l la ry businessj the bank was also engaged in another

type of funds resources creadting business named and

styled as "Remittances" viz U emand 0 raft, Nail Transfers

and Tfelegraphic Transfers.

5.42

The f requency . of such anci l lary banking business

was more than the transections related to the retained business .

Therefore] even though the retained x may not show

r is ing trend business in the proporition of rise in manpower, t

the addi t ional supply of manpower was accepted as J ustified, .

This was the position in the years IS^tl to 1944. The bank

changed the M anager in the year 1943 and as a result

of s t ra tegies adopted by the new iwlanager, the per capita

retained business position star ted to strenghthened during

next two yea r s , but aga in same position i . e . decline in

per capi ta business was observed upto the year 1955.

Thereafter, per capi ta re ta ine business s tar ted to incri-icse

biit the ra te of growth was too slow upto the year 1975. During

these two decades per capi ta business was rose to only double i . e .

from Rs 3 lakhs upto te 6 lakhs i . e . per year flat rate

of increase was otiLy 5%a/the Bank upto the year 1969 i . e .

t i l l i ts nat ional isa t ion was not having c^ry fixed or

predetermined iwanpower xvlanagement polices, exc^ t

that of providing core manpower to the nev/ branches

However, again the s ta t i s t i ca l data shov/s that in the init ial

period, the Sank provided one officer per two clerks upto

the year6 1942, . The cadre of subordinate staff was introduced

by the Bank in the year 1942.; and the rat io was one

per branch; pa r t i cu la r ly to attend the Branch i\ gent and

visi tng customers wishing to meet Branch Ajent.

5.43

Number of clerks suddenly rose in the year 1948 when the

proportion of officers to clerks shoot up to one O ) Officer per

(4) four clerks in the year but s)owly Bank employed more

officers and the proportion rested to one officer per three clerks

upto the year 1955.

Pract ical ly every year the Bank recruited new manpower

to support the

4.5 1) r ise in bus iness ,

2. r ise in number of branchesj\

3. r ise in daily anci l iaryi

banking business t ransact ions

To fulfill the needs of the day to day job requ i re -ments

Branch AGents were empowered to appoint clerk on casua l employment

basis as part- t imer or temporifvg hands either in absence of

regular 'Gounte'r clerkso'^ * ° give siip'port to the non-routine day^

to - day increased work load or to regular ise the pending work

load.

Such par t - t imers or temporary work - force was absorbed

on regular bas is as and when need of add i t iona l / permanant

work force was determined.

In the year 1965 The 'fcank introduced for the first time j

Executive Cadre amongst Senior officers and a One Executive

was posted at Central Office Pune. to caie overal l s taff

Administration. At Central Office, the Statements were called on

5.44

periodical basis onvaries aspects - viz ;

1. Monthly sa la ry statement .

2. Monthly over time payment statement.

3. (SattHc^ly staff position.

4. Half year l / ' Business Analysis.

5. Annual staff perfermance Apraisal repor ts .

Based on this iniarmation^ Branch- wise position was

consoliadated to arr ieve at the Corporate position. Overall

staff cost was compared with the business earning f igures.

Normally 20% of the staff cost was considered as just if ied.

Corrective action was taken agains t those crossing the limit.

Officers were recruited only by the Head Office. Thus,

the recruitment process was based on the hard lines of arr iving

at the needs of addi t ional officers. No officer was appointed

as for casual employment or as part- t imer or even as temporary

substi tude or addi t ion . Officers were recruited either on contact

bas is on fixed sa la ry or on R e g u l a r bas is as permanent work

force, but in in i t i a l stage of employment they were k«i>fe)n

b a s » c i Tra in ing- for a period ranging from minimum

6 months, tha t to even upto 4 yea r s .

Process of Bank Nationalisation thirs ted mass banking

business under var ious priori ty sectors; Under the Distrit

L eed Bank Scheme. the Branch - wise t a r g e t s were given

for Credit deployment To fulfill the commitments under such

p l ans j Bank, was forced to plan also for preportionate increse

in Resources of funds and major qu.ar>tu.m of These resources

was dependent on desposit mobilisation, so as to maintain

3 M 5.45

Credit- Deposit Radio (CDR) and Incremental credit Deposit

Ratio (ICDR) in view of the credit policy defined and declared

by the Reserve Bank of Ind ia from time to time.

Credit deplof«ment under priodity sectors was to inc lude .

1. Finance to Agriculture for production and Development

purpose ,

2. Finance to small scale Indust r ies for acquir ing fixed Assets

and working cap i t a l .

3. Finance to Transport u ppra te rs io as to stTCngthen the

Distribution system.

4. Finance to Retail Trade and small Business to assis t the

Traders to reach upto consumers.

5. Finance to the Prafessionals aricl self employed to support

above four sectors.

To analyse the credit needs so also to cater the credit

monitering servicews the Bank felt need of skilled officers

as well as qualified Officers in the A reas of -

1. Agriculture officers.

2. Engineering Civil Mechanical Electrical Automobile

3 . Credit Analysis

4. Law Officers, and degal matters

In the year 1965 the Bank adopted for the first time

new pat tern in o rgan isa i iona l structure wherein new masso

level field controlling office, named as the Divisional Office

was formed. A Divisional Manager in the Executive Cadre

aA3

6 ^< {

( ' l U ^ t p K A ' o

::t-=:n^tettI;HH :;;.U;rti::::;:^^jr:;;:;.::}:;:f":,•:j:•:-.•::';i.••;i^•JJ-

::i:!:lH|H;Hn^l:;:;nK:in:!jH;i}i--nHii^

'WsmMmmBmrnm^mmm^^immm . „- i i ;„4„

'f'd

• 5 ^ ^ - ^

5.46

NORMAL Proportion of total Manpower comprising various

categories is determined at the level of Officers 21% Special

Assistants 3% Clerks 51% and the Sub-ordinate staff 25% in

the total expected posit ions.

Branches : yearwise Position :

The Bank of Maharashtra established in the year 1935 s tar ted

to operate Banking Business from ^ l e year 1936 at Pune undertook

the branch expansion programme very slowly in the in i t ia l

period. Upto the year 1947. The Position was as under -

Table 4: 5-1:

Position of Branches : \<\3S t o \ C | A R -

Year T Positon

1939

1940

1941

1942

1943

1944

1945

1946

1947

1948

1949

2

3

3

3

4

7

9

16

18

18

19

5.47

Budgets are consolideifced by the Central Office to form the

Corporate Budget, OTT the strength of which next y e a r ' s corporate

plan is prepared and publ ished. THE bas is of formation is

present on going y e a r ' s s i tuat ion, past three y e a r s ' performance

in absolute as well as in proport ion/percentage terms with

incremental devia t ions /var ia t ions and future business chal langes;

anticipated or received through the Government in the form

of di rect ives .

NORMALLY at the Corporate level the productivi ty indices

are determined separate ly for the branches located in different

areas such a s -

1. Metropolitan^

2. Urbane

3. Semi-urban and

4. Rural .

PRODUCTIVITY indices are based upon the business retention

expcctcci position; business to include Deposits and Advances

in amount and the index is calculated in terms of per

employee to include officers* clerks and sub-ordinate staff;

but excluding the sweeping staff appointed on part- t ime bas i s .

THESE productivity indices are based upon the average

of the total Banking Indust ry position during the proceeding

year plus expected r ise in business; on an average per year

rise is expected to the exte nt of 20% over the position of

the proceeding year of the Budgeted year .

5.48

the 21%j clerks 54% and sub-ordinate^ staff 25%.

THE Bank introduced a Supervisory cadre in cler ical

grade named as Special Assistant, Which constitutes about

2 to 3% of the total manpower s t rength. Special Assistants

are normally placed only at the Branches. AS per the guidelines

of the Indian Banks ' Association, the Bank s tar ted categorisation

of Branches from the year 1970. The basis of categorisation

is total business i . e . Deposits + Advances; retained on an

average bas is during the preceeding year .

BANKS Planning Department a t Central Office works out

the probabil i t ies of business development of different categories

of branches as per a r e a s .

(Strength weakness-opportunities-

threats) ana lys is is carr ied out in terms of availa>ble and

probable clieH»the type of business , present and future probable

competitioVi^ e tc . and accordingly business is estimated per

type of branch and Manapower is planned and provided to

such Branches.

SINCE the year 1976, the Bank has introduced Performance

Budgeting sys tem. An annual return is called from the branches

at the REgiona l / Divisional level; where it is consolidated

to ar r ive at the Divi'?«sional / Regional level posit ions. Divisional

position are consolidated at the Zonal level position.

5.49

IN the year 1969 the Bank appointed Perosnnel Manager

to head the separate ly created Personnel Division. He was

placed in the rank of Assistant General Manager; the post

which was newly created just in the year 1967.

UPTO the year 1962, the Bank planned following categories

of Manpower.

1. Officers in five grades

2. Clerks

3. Sub-ordinate staff.

LOV\?EST graded officer was of 'E ' grade . At the time

of recruitment in the Bank. generally a person was placed

in this g rade . A clerk promoted in Officer's cadre was also

placed at the in i t i a l stage in this g rade . However, considering

the qualif ications and prior experience of the new encumbant,

higher grade was offered to him and he was g iven placement

accordingly. ACCOUNTANTS and section officers were placed

in 'D' g rades , whereas Branch AGents were placed in ' C

g rades . Branch AGents of bigger branch and department Executives

at the Central Office were placed in 'B ' g rade , few

of the Senior Executives were placed in 'A' g rades . General

Manager was considered as of Special Category. V\?HILE Planning

at Head Office, per branch staff was judged. ON an average

basis 16 persons were provided per branch basis at the time

of overall p lanning; out of them one was placed at the Head

Office level . In total Manpower composltiovi^ Officers were about

5.50

AT the REgional Offices in the Zone and at the Zonal

Off ice , officers from various categories Scale I to IV are posted.

Zonal offices are headed by an Officer in the Senior Management

grade designated as Assist—ant General Manager in Officers'

Scale 5? . He is assisted by an officer in Scale IV designated

as Chief Manager.

SEVERAL departments are planned at the Zonal Office

level, which are headed by a separate officer in Scale I to

I I I as per the importance of the department in view of work

system; need of decision making capabil i ty as well as experience

in the subject. Officers are assisted by clerks and attended

by the Sub-staff persons. Generally oi the Administrative offices

i . e . Regional or Zonal level. Proportion of officers to clerks

to sub-staff is kept to 1;1;1; whereas at the branches the

proportion of Officers to clerks to sub-staff comes at 1:2:

to 2 .5 '1 to 2 depending upon the core position.

i.a:

t j r '"~j [ a

{ a.UV>l y:\e>J(

{::;:(:^

rnftTTr-p'.^ *' -' jS i; j f: •' '-~:T^*f lii^^i^iifnlfoiieTR:;;

tttrt--•:;;.,;.;-.-.. r;;'.o;.>f^-H

M^

•j^\mm'^o',i:.s\:,..'S -•h\:i33i:iMM\i^s^ny.s%:, fiTilli'.:^::

'M^M^-^MSMM Mii t-FHHi

^i^ili:if?|jiij^^inij|iu ,, ,-,,,

'iH^nlTt inil n i llp

2-5.<5

5.Si

5 - I 0 : P O S I T J O H OF eRflMCH£S:

The Bank v/as brought under the direct control of Reserve Bank

of India (RBI) •«! terms of the powers vested wit h RBI through

its ownNationalisation proce ss wef 1-1-1949 and subsequently

as per the provision of newly enacted Banking companies act 1949.

The posi-V\on from the Tofele netc unc4e» itself indicate

that the Bank was probably having no pre-determined planning

process in opening of new branches . Moreover^ the rate of

growth in number of branches was also not equal or of the th: aught

to believe exiJstance of any prgdetermined planning process in Branch

expansion programme.

Table -2 Position of Brs. 1949-61 Year No.o t ETW

1949

1950

1951

1952

1953

1954

1955

1956

1957

1958

1959

1960

1961

19

19

21

23

23

29

30

35

39

45

52

53

%

2

2

1

5

4

6

7

1

s

5%

10%

10%

30%

3%

11%

15%

15%

6%

^5'^"

"D

a.5 j

^^ccv'K 'Uo.-S'

•yJirV: :iu„JJ L.: 1 : j ;.-! ^ J J . i , ..;„:i

. t

W0U •n- f i

fflaT.^1* w n " ,1 t . . . : t

.tj±i.*^i._; •

_^„Lft<S^-_^.13L..._ „:i.

f t

f

— J —

i

; . „ : .

„ . „ ^ _ - . „ „ ^ „ „ . „ „ ^ .

11

-t- -

.„U „ _ . t ^.

f •::•

*. »+*. *- 4

•

• i -. 1..

'

—

- 4 . - . i

• fcj»..j;a...^*».a.. 1 a j A _ . . ^ - n - j ^ t ) j - , f t ^ f T'

^$.- ,':^^.s> <s ^'^

- r •-1

. J

5 . 5 1 i52^

The d a t a from above t a b l e r eve l s t h a t d u r i n g th i s

per iod a l so Bank was not h a v i n g any p r e - d e t e r m i n e d p l a n n e d

a p p r o a c v h in open ing of new b r a n c h e s . I n the y e a r 1954 the

r i s e of 6 b r a n c h e s was due to t a k e - over - merger of two smal l

Bank named a s B a n t h i a Bank a n d Bank of p a n w e l .

In the y e a r 1961 a g a i n the four smal l Banks

were merged i n t h i s B a n k . In t h i s process Bank a u t o m a t i c a l l y

got 17 few c e n t r e s d u r i n g the 25th y e a r of Banks formation in

the y e a r 1961 When the Bank ce leb r t ed i t s s i l ve r j u b i l e e by

r e a c h i n g the b r a n c h e s pos i t ion a t 80.

T a b l e 5 - 3 Po-s i t ion of Branches ' [ ^ 6 l - g ^ ' .

V c u i p

1961

1962

1963

1964

1965

1966

1967

1968

1969

Mo o j "a fu ncheb

^J-^

61

80

83

93

100

105

121

137

164

8

i-3

3

10

7

5

1 ^

16

^7

1961-69

^V. 4%

12%

8%

5%

15%

14%

The Bank c e l e b r a t e d s i l ve r j u b i l e e , but p robab ly

without any commitments to open new b r a n c h e s . Next two y e a r s

in the pe r iod post s i l v e r j u b i l e e were j u s t n e g l i — g i b l e in i/icus

of Brancheh e x p a n s i o n . Bank touchec< to f i r s t 100 b r a n c h e s posi t ion

5 ,S .4 iK

2 S S

5.«5i 2.S -i

in the year 1965. Bank was nationalised as per the position of

the year 1968j ujhen Bank was having 137 Branches. 5n the

Nationalisation day the Bank was having 143 branches and in

next 1/2 year the bank opened 21 new branches al l were in

Rural Acreas.

After the Nationalisation process the Bank

was compl ied to maintain ra;feio of opening of new branches

in Rural a reas in propo tion to urban in ra t io of 4:1 i . e .

if four new branches in Rural A-reas to open one new branch

ii n Urban A-rea of the choi e of the Bank. The area distr ibution

was divided of-

Metropo4it'xn Area having "bata-l _ population over 12 lakhs ,

Urban Area where population upto to 12 lakhs semi-U^rbaA Areas

Where population was between 10000 upto 1 l akh . Rural Areas

v/here the single centre population was less than 10,000.

Tables

Year

1969

1970

1971

1972

1973

1974

1«175

-4 Position of Branches

M+

27

28

31

40

47

61

+

1

3

9

7

14

1 76i 15

U +

47

50

59

66

SO

95

110

+

3

9

7

14

15

15

1969-

Su 1

62'

91

N

66

33

91

95

iia

14C

year

, '

4

17

8

4

23

22

R +

28

67

108

124

128

122

128

- • " - '

+

'

39

41

16

4

6

6 .

Total

164

211

281

321

350

396

454

+

37

47

70

40

29

46

59 '

M=Metropolitan; U= Urban; Su= Semi-urban; R= Rural.

lS S

-J . . . . i . - ' . 1^.:

:M^r}^M^\)trfim

iiSHid

$Hi ti ^*fTTrrl

MilkiiMiiiiiiiii^

liiii

iS G 5.54

TABLE No

pxi^^^ •CA

1975 1 82

1977

1978 ;

1979

1980'

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991 . _ .

83 1

•^l^J •+•

6

1

91 8

94

96

102

104

108

169

179

I S l

183

185

185

187

133

3

2

6

2

4

61

10

2

2

2

2

3

A r e a

U

115

122

129

135

142

149

157

157

128

139

156

156

160

165;

J7I

\7Z

& y e a r w i s e p o s i t i o n

1 •+

' 5

SU ^

149

7 151

7 154

6 159

7 164

7 1 1 6 6 N ^

S ' 171

-

29

5

2 2 -

1 i

1 4

178

164

171

159

•160

165

5 170

4 '

1 1 1

1 7 |

no L

[. h~-

2

R

139

151 !

3 ' 211

5 i 265

5 • 312

2 375

5 ' 459

7 431

14 492

7 495

12

1

5

5

5

b

437

504

520

548

bZ7

59a

o f B r a n c h e s ^

-t

1

42

30

T o t a L

485

^ ^ 6 - h i C \ |

1 537 1

585

54 ! 653

47 714 1

63 792

84 891

22 924

9 953 1

3 1 979

8

17

16

28

3 9

! 5

983 ,

1003 ;

1044

1071

H 1 6 \

112

Immediately after: Nationalisation, the Bank undertook

massive Branch expansion programme in the i<'"'o«)J>5years, but

maximum number of new branches openea iia t h e ^^^y, \HhZ'

Metropoliton Branches - Rate of expansion was very ' slow except

in the years 1972 to 1975 In the year 1984 there was sudden

$ ^ ^H^ iJ>T

e c e o a k ^ ^oika:-^e%k^^f:c^^ y^C-^ k:vW< ^ ^ T^ '^cC''^{y

36' /68° 172' ;76' :8 '84^ :92' 96'

\

32°

28°

INDIA 0 200 400 km

tA-1 36

/ ^••^' 4*.

C.

"V

^3 v* ."" .

V.^. y^ > V

.- €)

k

^ ^ t

• ^ * * * <

^

.X,

0/ r

r • € ) /' 24

•U---' V

•^5

@ 20

c^'

-36

5 \

12°

8°

12

©.' iS

,-^<r /i^ii'C i /1? gXj^

' , t

172' LE. 84'' &;: 192'

5.-55"

rise by over 65% as agains t the normal r ise of 2-5%. This happened

not because of opening of new branches but due to conversion

of urban Area to Metropolitan Areas where Pune and Nagpur

Cities were declared as Metropoliton Areas, the branches located

in Pune & Nagpur were recategorised as Metropoliton Branches

from ea r l i a r Urban . During the year 1989 not a single Branch

was opened otherwise during the year 1986 upto 1991. the rate of growth

gone down to less than 2%.

Urban Branches - Bank recorded about 6-10% of rate of growth in

opening new branches in urban area during the years 1969-75.

Thereafter ra te of growth declined at (-) to maximum 4% from

the year 1976 upto 1991. During the years 1983 and 1987 , not

a single Branch was opened in urban a rea on the contya,Y7>

during the year 1984, the ra te of growth was (-) minus due

to recategorisation of the cities of Pune and Nagpur from urban

to Metropolitan. All branches in these cities were upgraded as

Metropolitan branches .

Semi-Urban - The Bank maintain a normal ra te of growth of

about 2-5% every year from 1969 upto 1991 except in the years

1970, 1974 & 1975 the Bank opened more number of semj urban

branches . Many times this number was increased due to

recategorisation of Rural Branches as semi-urban branches due

to change in s ta tus of the contte where it is located^ rate of

growth was only 11%.

tM'

36

132'

172' i

I.,

-J

\

i

76"

N

;84' 188° 192' 196°

•"•I..

/ .4

/

7 TV.--

INDIA ^ A - ^

36°

200 400 km 32'

V. V .

^ "a^./^.,

/*. V

3 / 7 \Hrwnakl<i

12'

8'

172° LE.

-6 \

3

:x3;«<i 32.

5)A^. 5 1

•^j'^eiyxch i —

/ | J« asKTru•» L^ II-

• ^ 8 8 ° ~ ^ •

^k

i^"-

l 12°

192° ' 3

8°

2 & 0

5.56

Unplanned Branch exapansion programme was undertaken

by the Bank, long range planning was | ak ing .

Rural Branches :

The Bank opened i ts first Rural Branch in the years

1955 at Kirloskar wadi this branch was upgraded as semi-

urban Branch lat teron due to chs r iga , in the state of the vil lage

from Rural to semi-Urban. The Bank star ted to open again

new branches in Rural Areas from the years 1961. When three

branches wre open in the backward Area of Konkan. Dist.

Ratnagir i in Maharasht ra . After f^^otjcnaU Scrt.i'ni of the Bank

took lQ.ad to open maximum numbers of branches in Rural Areas

only out of total new branches . In the year 1969 the Rural

branches share was 15% rose to 30% in two years upto 1971

in the year 1977 it rose to 40% in the year 1987 it exceeded

to 50% and in the year 1991 i t stood at 53% out of the total

branches of the Bank.

OVER ALL BRANCHES :

In the first two years of Bank Nationalisation the ra te

of growth was 30% - 40% thereafter i t s tar ted to decline and

gone down even below 1% in the year 1986 and 1990-91. However^

Bank made a record of opening 99 branches during a sin^ie

year I'n 1982 .

5-57

5.11'.

"Categorisation of Manpower Bank of Ma hrash t ra when established

in the year 1935, s tar ted with one Manager in Officer's category

and two c lerks . In the year 1942 the Bank opened third category

as subordinate staff.

The Bank separated i ts Head Office from the Main

Branch in the yar 1349, When the Manager was seperated and

to control the day - to _ day affairs of the Branches working the

off icer- in-charges was designatsc/«« Branch Agent.

Manager 's category was considered of higher grade

when Branches. Started to grow in the business , the Bank

provided pogt of -

1. Senior Branch Agent at Bigger Branches.

2. Branch Agent at Mediumri ^ Small Branches.

After the s ta r t of separate Head Office, the Bank

opened Departments in the Head office to guide the branches

on various aspects , so also to control the bus iness . Department

officer posts were opened

In the year 1954 the Bank star ted to appoint fresh

graduates to be posted in future in officers' cadre.

This post was designated as personnal Assistant, A Proi»ation

of 6 months to 4 years was given to each depending upon

his abi l i t ies and interres t to learn the Normal routine Banking

operat ions.

5 .52

In the year 1962 the Bank introduced for the first time

post of executive and Senior officers were lected in this cadre .

At th is time Bank was having categoriesation as under :-

1. General Manager

2. Senior Manager

3 . Junior Executive

4. Senior Officer

5. Junior Officer

6. Personnel Assistant

7. Clerks

8. Subordinate Staff

In the years 1965 the Bank star ted new organisation

set up and 4 field Divisions were formed and 6 fldint«»sirat>>c

Divisions at Head Office were formed. These fexecuites were

Designated as Divisional Maangers. Above them, senior Executive

were elevated to the position of Assistant General Managers

and Divisional Managers were assisted by Assistant D i v i s i o n a l

Managers . As such in Executive cadre three categories were

createol*

In officers cadre also three categories were created

a s -

1. Selection Grade Officer

2. Senior Grade Officer

3 . Junior Grade Officer.

In the uear 1967 the Bank^ created post of Joint General

Manager and the seniors from the Assistant General Manager

were elevated to this post.

After Nationalisation in the year 1969, the Bank introduced

new post within the cUviccxL cadre named of Special Assistant.

Some supervisory type of UJOTTK was assigned to the category.

Clerks on the seniority basis were abouted to this post.

The Bank introduce of post of Deputy General Manager

in the year 1975. All the Joint General Manager were considered

of equal to this post. Post of Joint General Manager was abolished.

Pi l la i Committee Recommend came in application to the

Bank was 1-4-1977 as an effect of this now in afore in the

categorisation of manpower as under :

1. Chairman & Managing Director

2. Executive Director

3 . Deputy General Manager

4. Assistant General Manager

5. Chief Manager

6. Deputy Chief Manager

7. Deputy Manager

8. Assistant Manager

9. Special Assistant

10. Clerks

11. Substeels Employee

12. Part Time Sweeper

Manpower need in above each of the category

is totally dependent on the following aspects:-

1. Progress

2. Network growth

3. Business Growth

4. Organisational Stress

5. Effects of Nationlised

6. Manpower Changes.

To sum of the discussions carried out in this chapter

following points were observed as more sensitive

2. Network Growth :

Bank started with one business office in the year 1936

and s tar ted to expand slowly t i l l the year 1965 thereafter

the ra te of grov/th s tar ted of to r ise . Bank opened maximum

number of branches in a single calender year to the extent

of 99 branches in 1982. The Bank crossed 100th Branch in

the year 1965 and 1000th bracnh in the yar 1987. Banks 74%

of the branches are located in Maharashtra s t a t e . Rural Branch

opening was started in —

S.fcl

t h e year 1965 and at me ena oi tne year 1991 (March) the

share of Rural Branches was 53% in total Network.

3. Business Growth :

The Bank which starteci^ at the business position of

about Rs.0.09 crores result of 1st years performance crossed

R"s. 1 croes in the year 1942 Rs.lO crores in the year 1953,

Rs.lOO crores in the year 1965, Rs.lOOO crores in the year

1973 and at the close of the year 1991 (March) crossed the

business position of Rs. 5000 crores. The Bank recorded highest

rate of growth 4^in the year 1975 and averge rate of growth

of about 14% p . a .

4. Organational Structure [_

The Bank star ted as single office cum Banking Service

Centre, Main Branch was separeted from Administrative office

J ^ year 1945, Bank at Administrative office which was called

as Head office/Central office, created functional Departments

the Bank tr ied to sive positive response to the ofeJectWes of

Nationalisation as these were a l ready pfift of Bank own objectives.

In the year 1966 the Bank created a Masso

level Administrative office called as Divisional office to function

beyween the Head office at Pune and various branches in

the field. The Bank i,ta.rXe4 new t ier in between the Head office

and Divisional offices named of Zonal Officer in the year 1976.

Again one addi t ional higher masso level Administrative -tier

was created in between the Head office and the Zonal office

in the year 1983 but this was subsequently withdrawn in

5.62

the year . 1986 when the Bank accepted a long Range Planning

for 5 years with res t ruc tu red setup in which Divisional Area

was renamed as Regional Area. As on 31.3.1990 the Bank has

got one Head office 10 Zonal offices 23 REgional offices and

1116 Branches.

5.Effect of Nationalisation:

The s ta t i s t ica l data s h o w ^ that effect of Nationalisation

of Bank was posi t ive. The Bank progressed at faster r a t e ,

turned from class Bank to mass Banking change in Business

Pattern

1. Progress |_

The Bank tried to achie to fulfill the organisat ional

objective which were framed at time of establishment t* serve wan

a common^ compelled to change the Bank in the Manpower pa t te rns .

6. Manpower Changes :

Middle class leadership with high compitations and

business aspira t ions was at the root of the Bcmk to start

i t . A Bank star ted with one officers and two clerks in the

year 1935 recorded a position of 17122 at the end of

the year 1990 (March) with 3740 officer and 9889 clerks Bank,

recruited maximum fresh manpower in the year 1983 to the

extent of 1385. Banking after Nationalisation brought in specialised

and skilled manpower in different Areas viz Agriculture, Industry

Personnel , law^ economics, p lanning , official language (Hindi),

Secretary., Architect ,Engineer ,EDP perssonel etc.

5-12 ' . IMMEDIATE FUTURE CHALLNAGES ON INTRODUCTION OF

a3MPUTARISATION : -

Banking scene a t g loba l ia c h a n g i n g f a s t l y . Some of the

I n t e r n a t i o n a l level and h igh bus iness performing Banks have

in t roduced to ta l compu te r i s a t i on by c o n v e r t i n g the old aged

T r a d i t i o n a l c o u n t e r - S e r v i c e and V o u c h e r - t r a n s a c t e d Banking into

c o u n t e r - l e s s and vouche r - l e s s Bank ing .

Banking bus ines s is becoming more and more cus tomor ien ted i . e .

Buye r s ' dominated bus iness and hence the Banking bus iness

s e l l e r s a re t r y i n g to t ake u tmost c a r e to fulfi l l the growing and

c h a n g i n g e x p e c t a t i o n s of customers from time to t ime.

P a r t i c u l a r l y , qu ickness in se rv i ce and conc lud ing the

t r a n s a c t i o n s in the minimum poss ib le time are the two major

expec t a t i ons of the cus tomers and to fulfil l the needs of the

customers in g e n e r a l and quick se rv ices in p a r t i c u l a r ,

a p p l i c a t i o n s a re mechan i sed as well as Elec t ronic i n s t r u m e n t s ,

m a c h i n e s , o p e r a t i n g systems has become

BANk of m a h a r a s h t r a has a lso in t roduced computer se rv ices from

the year 1980. At the head office level the Bank ins t a l l ed

computers in the year 1982 to implement the p lanned

compu te r i s a t i on p rogramme. For the year 1986, on the

expe r imen ta l b a s i s , Bank s t a r t e d use of Automatic Ledger Posting

Machines (ALPMs) and Automatted Teller Machines (ATMS) on the

se rv ice and the c a s h coun te r s at se lec ted b ranches in

Metropol i tan c i t i e s . Form th^ year 1986, the Bank has provided

min i -compute rs at a l l the Zonal level offices and as such ,

p r e sen t ly the Bank has got computer cen t res at Head Office and

a too

5 . 6 ^

10 Zona l cent res s e p a r a t e l y in a d d i t i o n to sem i -e l ec t ron i sa t i on of

about 48 M e t r o p o l i t a n and b ig b ranches .

R e g a r d i n g use of ATMS a n d ALPMs at b ranches , the Bank has

impar ted t r a i n i n g to some of the c l e r i c a l s ta f f ou t of se lec t ion ,

to those who have showed w i l l i n g n e s s to work for

c o m p u t e r i s a t i o n .

Reserve Bank of I n d i a has g i ven a p lan as recommended by the

R a n g a r a j a n Committee for compu te r i sa t i on in B a n k i n g I n d u s t r y

between 1990 and l39i^. A s s o r d i n g l y , RBI has recommended

i n s t a l l a t i o n of computers a t a l l the Regiona l Off ices and

branches of the s ta tus of a Region. As such the bank of

M a h a r a s h t r a has got p resen t l y 23 Regiona l o f f i ces and 31 Very

lerge branches of the s ta tus of Regions. As such the bank may

under take to i n s t a l l computers a t about 5k places in near f u t u r e .

BESIDES t h i s , RBI has' recommended to i n s t a l l computer ised

counter serv ices at such branches h a v i n g average d a i l y wo rk l oad

over 750 vouche rs . The Bank of M a h a r a s h t r a has got about 100

b ranches . As such the Bank may p rov ide computers at these

branches in near f u t u r e .

Local a rea Network (LAN) ia another system in compu te r i sa t i on to

p rov ide e f f ec t i ve counter serv ices to the customers of the Bank to

t r a n s a c t t h r o u g h any Branch o f f i ce of the Bank w i t h i n the

spec i f i ed town a r e a . Under th i s system, a l l the branches w i t h i n

a c i t y a rea are r e q u i r e d to be in terconnected w i t h each other

t h r o u g h m a i n b ranch on the computer ised l i nes . The Banl'

m a y u n d e r t a k e such i n s t a l l a t i o n s at major c i t i s l i ke Bombay,

1Q'=\

S,C5

Pune, Nagpur , Delhi , C a l c u t t a , M a d r a s , Banglore e t c . where the

Bank has got more t han 10 b r anches at each p l a c e .

APPLICATIONS IN CONNECTION WITH MANPOWER :

Manpower inven to r i e s and computers : -

THE a p p l i c a t i o n of new technology, p a r t i c u l a r l y compute r s , for

record keeping e n a b l e s management to make more effect ive use of

employee records in th i s r e g a r d . In add i t ion to pe r sona l

b i o g r a p h i c a l informat ion , such as age , p rev ious e d u c a t i o n , and

t r a i n i n g , work e x p e r i e n c e , and per faps some psycholog ica l

f ac to r s , such records con ta in jog h is tory of the employee wi th in

the o r g a n i s a t i o n .

WHEN such records are compute r i sed , it becomes poss ib le to

to answer qu ick ly ques t ions like the following : -

i) How many employees in wha t jobs wil l be r e t i r i n g in each

future yea r?

ii) How many employees with a p p r o p r i a t e b a c k - g r o u n d

Educat ion and e x p e r i e n c e , wil l be a v a i l a b l e for promotion

to I n d u s t r i a l F inance Management or Fore ign Trade

Management Or Rura l Development e t c .

5.66

5.13 :: CHAPTER CONCLUSION;

The entire discussion in this chapter

leads to a conclusion that with business growth,

the manpower also grew in size. Though, in the post-

nationalisation period efforts are made to provide

scientific basis for manpower planning through

performance budgeting and perspective planning,

they mainly revolve around the recruitment process.

Bank Nationalisation has a philosophical base and

all public sector Banks need manpower with a vision

to translate this philosophy into reality. Though,

attempts have been made to fulfill the quantitative

requirements of manpowr, qualitattive dimensions

require attention of the manpower planners.

The next chapter therefore, in the background

of the above discussions probed into Manpower planning

process in Bank of Maharashtra.

*****