Jesika HRM and Marketing (2)

8/20/2019 Jesika HRM and Marketing (2)

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A PROJECT REPORT ON

“HRM IN BANKING SECTOR ”

Submitted in partial ulillment ! t"e re#uirement$

%!r

MASTERS O% COMMERCE BANKING AN& %INANCE

'()*+,()*-.

B/

H0MERA KHAN

0nder t"e 1uidan2e !

Pr!3 GIRISH

Affiliated to University of Mumbai

S3K3SOMAI/A CO44EGE O% ARTS5 SCIENCE AN& COMMERCE

A0RBIN&O5 6I&/ANAGAR

6I&/A6IHAR 7EAST83 M0MBAI,9)))::

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CERTI%ICATE

O%

PROJECT ;ORK

This is to certify that,

M$ H0MERA KHAN M32!m Ban has undertaken and completed the project titled “HRM IN BANKING

SECTOR” during the academic year 2!"-2!# under the guidance of Pr!3

GIRISH submitted to this college in fulfillment of the curriculum of

MASTERS O% COMMERCE BANKING AN& %INANCE5

0NI6ERSIT/ O% M0MBAI

This is a $onafide project %ork & the information presented is true &

original to the best of our kno%ledge & belief'

((((((((((((((( ((((((((((((((((((((((

)*+.T /U01 T*3A4 AM03*

((((((((((((((((((((( ((((((((((

.+U*S .++*103AT+* )*03.0)A4

&EC4ARATION

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0, H0MERA KHAN studying in M'com $anking and 5inance )art ! course in the

academic year 2!"-2!# at S'6'S+MA07A .ollege of Arts, Science and

.ommerce and hereby declare that 0 have completed the project on “HRM IN

BANKING SECTOR” as a part of course re8uirements of MAST*S +5

.+MM*. $anking and 5inance of University of Mumbai'

0 further declare that the information presented in this project is true and

original to the best of my kno%ledge'

1ate9 Signature of Student

H0MERA KHAN

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ACKNO;4E&GEMENT

0 the undersigned, have great pleasure in giving my sincere thanks to those%ho have contributed their valuable time in helping me to achieve the success in

my project %ork' 0 %ould like to thank Prin2ipal &r3 SANGEETA KOH4I5 S K

SOMAI/A C!lle1e ! Art$5 S2ien2e and C!mmer2e for her continued support' 0

%ould like to e:press my sincere thanks t! C!,2!!rdinat!r for his constant

encouragement, in completion of this project successfully'

0 am indebted and thankful to my project /uide and Motivator Pr!

GIRISH for his valuable and timely guidance, co-operation encouragement and

time spent for this project %ork' 0 %ould like to thank our 4ibrar? Sta for

providing me sufficient information, %hich helped me to complete my project

successfully' 0 %ould like to thank all the lecturers for their support and guidance

throughout the project'

0 also thank my family members for their continued support in completing

this project %ork and last but not least, 0 %ish to thank all my friends and %ell

%ishers %ho are directly or indirectly linked %ith the success of my project'

C!ur$e name= Ma$ter ! C!mmer2e Ban


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ABSTRACT

+rgani;ations the %orld over are under great pressure to combat recession,

globali;ation and internal competition' The companies that has emerged %inners

are those %hich use all their people, all their skills, all the time< focus on speed and

action< break barriers to make their o%n rules and create benchmarks instead of

playing by the rules of the industry' Success in such a global environment is

possible by achieving a =strategic fit> among various parameters like structure,

?*M, culture and leadership'

3o%, organi;ations have reali;ed that Pe!ple5 rat"er t"e empl!?ee$ are t"e a$$et

! an? !r1aniati!n3 An organi;ation, %hether it is a manufacturing concern or

service oriented, cannot function %ithout the active participation of people'

These days, role of ?* has moved a%ay from being merely a statutory and

personnel management job to that of business partnering' 0n the ultimate analysis,

?*M strategies re8uire imaginative, innovative and at the same time fle:iblity toadjust to change' They should also be constantly revie%ed keeping in mind %hat is

happening in the business and %here it is heading'

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IN&E

S*'3+ T+)0. )A/ 3+

! 0ntroduction

3ature of ?*M

Scope of ?*M

Significance of ?*M

5eatures of ?*M

.hanging *ole of ?*M

-?*M

@-!#

2 ?*M in $anking 0ndustry !@-2

B .ase Study- Standard .hatered $ank B-B"

C SD+T A3A47S0S B#-B@

" 5acing /lobal .hallanges B@-BE

# .onclusion B

@ $iblography C

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H0MAN RESO0RCE MANAGEMENT 7HRM8

INTRO&0CTION

Human re$!ur2e mana1ement F?*M, or simply HR G is a function in

organi;ations designed to ma:imi;e employee performance in service of their

employer>s strategic objectives'?* is primarily concerned %ith ho% people are

managed %ithin organi;ations, focusing on policies and systems' ?* departments

and units in organi;ations are typically responsible for a number of activities,

including employee recruitment, training and development, performance appraisal,

and re%arding He'g', managing pay and benefit systemsI' ?* is also concerned

%ith industrial relations, that is, the balancing of organi;ational practices %ithregulations arising from collective bargaining and governmental la%s'

$ehind the production of every product or service there is a human mind, effort

and man hour H%orking hoursI' 3o product or service can be produced %ithout

help of human being' ?uman being is the fundamental resource for making or

constructing anything' Today many e:perts claim that machines and technology are

replacing human resource and minimi;ing their role or effort' $ut even machines

and technology have been build by the human aid and besides companies have

been continuously in search for talented, skilled and 8ualified professionals tofurther develop latest machines and technology, %hich again have to be controlled

or used by humans to bring out products'

Meanin1=

Human Re$!ur2e Mana1ement is the process of recruitment, selection of

employee, providing proper orientation and induction, providing proper training

and the developing skills, assessment of employee Hperformance of appraisalI, providing proper compensation and benefits, motivating, maintaining proper

relations %ith labour and %ith trade unions, maintaining employee>s safety, %elfare

and health by complying %ith labour la%s of concern state or country'

[7]

http://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Industrial_relationshttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Industrial_relationshttp://en.wikipedia.org/wiki/Recruitment


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NAT0RE O% HRM

?uman *esource Management involves management functions like planning,

organi;ing, directing and controlling

• 0t involves procurement, development, maintenance of human resource

• 0t helps to achieve individual, organi;ational and social objectives

• ?uman *esource Management is a multidisciplinary subject' 0t includes the

study of management, psychology, communication, economics and

sociology'

• 0t involves team spirit and team %ork'

• 0t is a continuous process'

• :perience high turnover

• ?ave your people not doing their best

• Daste time %ith useless intervie%s

• ?ave your company taken to court because of discriminatory actions

• ?ave your company cited under federal occupational safety la%s for unsafe

practices

• ?ave some employees think their salaries are unfair and ine8uitable relative

to others in the organi;ation

• Allo% a lack of training to undermine your departmentJs effectiveness

• .ommit any unfair labour practices

Human Re$!ur2e mana1ement in2lude$=

!' .onducting job analyses,

2' )lanning personnel needs, and recruitment,

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http://www.whatishumanresource.com/job-analysis-1http://www.whatishumanresource.com/recruitmenthttp://www.whatishumanresource.com/job-analysis-1http://www.whatishumanresource.com/recruitment


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B' Selecting the right people for the job,

C' +rienting and training,

"' 1etermining and managing %ages and salaries,

#' )roviding benefits and incentives,

@' Appraising performance,

E' *esolving disputes,

' .ommunicating %ith all employees at all levels' 5ormerly called personnel

management'

!' Maintaining a%areness of and compliance %ith local, state and federal labor la%s'

!!'These are also called as functions of human resource management for the

purpose of effect you utili;ation of human resource'

SCOPE O% HRM

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http://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/performance-appraisal


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Human re$!ur2e plannin1=

?uman resource planning or ?uman *esource )lanning refers to a process

by %hich the company to identify the number of jobs vacant, %hether the

company has e:cess staff or shortage of staff and to deal %ith this e:cess or

shortage'

J!b anal?$i$ de$i1n=

Another important area of ?uman *esource Management is job analysis' ob

analysis gives a detailed e:planation about each and every job in the

company'

Re2ruitment and $ele2ti!n=

$ased on information collected from job analysis the company prepares

advertisements and publishes them in the ne%spapers' This is recruitment' A

number of applications are received after the advertisement is published,

intervie%s are conducted and the right employee is selected thus recruitment

and selection are yet another important area of ?uman *esource

Management'

Orientati!n and indu2ti!n=

+nce the employees have been selected an induction or orientation

program is conducted' This is another important area of ?uman *esource

Management' The employees are informed about the background of thecompany, e:plain about the organi;ational culture and values and %ork

ethics and introduce to the other employees'

Trainin1 and de@el!pment=

very employee goes under training program %hich helps him to put up a

better performance on the job' Training program is also conducted for

e:isting staff that have a lot of e:perience' This is called refresher training'

Training and development is one area %here the company spends a huge

amount'

Per!rman2e apprai$al=

+nce the employee has put in around ! year of service, performance

appraisal is conducted that is the ?uman *esource department checks the

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http://www.whatishumanresource.com/human-resource-planninghttp://www.whatishumanresource.com/job-analysishttp://www.whatishumanresource.com/recruitmenthttp://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/induction-of-employeehttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/human-resource-planninghttp://www.whatishumanresource.com/job-analysishttp://www.whatishumanresource.com/recruitmenthttp://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/induction-of-employeehttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/performance-appraisal


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performance of the employee' $ased on these appraisal future promotions,

incentives, increments in salary are decided'

C!mpen$ati!n plannin1 and remunerati!n=

There are various rules regarding compensation and other benefits' 0t is the job of the ?uman *esource department to look into remuneration and

compensation planning'

M!ti@ati!n5 elare5 "ealt" and $aet?=

Motivation becomes important to sustain the number of employees in the

company' 0t is the job of the ?uman *esource department to look into the

different methods of motivation' Apart from this certain health and

safety regulations have to be follo%ed for the benefits of the

employees' This is also handled by the ?* department'

SIGNI%ICANCE O% HRM

%a2ilitate$ pr!e$$i!nal 1r!t"=

1ue to proper ?uman *esource policies employees are trained %ell and this

makes them ready for future promotions' Their talent can be utili;ed not

only in the company in %hich they are currently %orking but also in other

companies %hich the employees may join in the future'

Better relati!n$ beteen uni!n and mana1ement=

?ealthy ?uman *esource Management practices can help the organi;ation

to maintain co-ordinal relationship %ith the unions' Union members start

reali;ing that the company is also interested in the %orkers and %ill not go

against them therefore chances of going on strike are greatly reduced'

Help$ an indi@idual t! !r< in a teamD1r!up=

ffective ?uman *esource practices teach individuals team %ork and

adjustment' The individuals are no% very comfortable %hile %orking in

team thus team %ork improves'

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http://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-motivation-introductionhttp://www.whatishumanresource.com/healthy--safetyhttp://www.whatishumanresource.com/healthy--safetyhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/promotions-of-employeehttp://www.whatishumanresource.com/strikeshttp://www.whatishumanresource.com/quality-circleshttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-motivation-introductionhttp://www.whatishumanresource.com/healthy--safetyhttp://www.whatishumanresource.com/healthy--safetyhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/promotions-of-employeehttp://www.whatishumanresource.com/strikeshttp://www.whatishumanresource.com/quality-circles


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Identiie$ per$!n !r t"e uture=

Since employees are constantly trained, they are ready to meet the job

re8uirements' The company is also able to identify potential employees %ho

can be promoted in the future for the top level jobs' Thus one of theadvantages of ?*M is preparing for the future'

• All!2atin1 !b$ t! t"e ri1"t per$!n=

0f proper recruitment and selection method is follo%ed, the company %ill

able to select right person for right job' Dhen this happens the number of

people leaving the job %ill reduce as they %ill be satisfied %ith their job

leading to reduction in labour turnover'

%EAT0RES O% HRM

Relate$ t! mana1in1 pe!ple=

?*M relates to managing people at %ork' 0t covers all levels of personnel

and their needs, e:pectations and so on' 0n this sense, it is a comprehensive

function and is basically concerned %ith managing people at %ork'

Pe!ple !riented pr!2e$$=

?*M is concerned %ith employees, both as individuals as %ell as a group'

The aim of ?*M is to get better results through their involvement,

motivation and co-operation' 0t is a people-oriented process of bringing

people and organi;ations together so that the goals of each are met properly'

&e@el!p$ empl!?ee$F p!tentialitie$=?*M is concerned %ith helping the employee to learn and develop their

potentialities to the highest level for their benefit as %ell as for the benefit of

their organi;ation' 0t is a manpo%erKemployees development oriented

subject'

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Inte1ral part ! !r1aniati!n$=

?*M is an integral part of all organi;ations' 0t is concerned recruitment,

selection and development of manpo%er available'

• C!ntinu!u$ a2ti@it?=?*M is a continuous activity in an organi;ation as personnel problems

continue to e:ist as long as the employees are %orking in an organi;ation'

They need constant attention as they may disturb normal %orking of an

organi;ation, if neglected'

• Aim$ at $e2urin1 empl!?ee 2!,!perati!n=

?*M aims at securing %illing co-operation of employees for achieving

organi;ational objectives' This is natural as industrial and other activities can

be conducted only %ith the support of human resources'

• C"allen1in1 a2ti@it?=

?*M is a challenging activity as it deals %ith the peopleKemployees %ho are

al%ays unpredictable' mployees have emotions and sentiments and cannot

be treated like machines' 0t is necessary to handle them tactfully' ?ere

multidisciplinary approach is re8uired' ?* manager makes use of various

disciplines H)sychology, conomics, Sociology, etc'I for managing

%orkforce effectively'

CHANGING RO4E OH HRM

The role of ?* is changing' )reviously considered a support function, ?* is

no% becoming a strategic partner in helping a company achieve its goals' A

strategic approach to ?* means going beyond the administrative tasks like

payroll processing' 0nstead, managers need to think more broadly and deeplyabout ho% employees %ill contribute to the company>s success'

To understand the ever changing role of ?*, let us have a look into ho% the ?*

evolved and is evolving over a period of time or the ever changing role of ?*

starting from the period of before industriali;ation'

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* *> Centur?9 This period can be classified into three L period before

industrial revolution, period of industrial revolution and post industriali;ation'

Peri!d be!re indu$trial re@!luti!n L The society %as primarily an agriculture

economy' 3umber of speciali;ed crafts %as limited and %as usually carried out

%ithin a village or community %ith apprentices assisting the master craftsmen'

Peri!d ! indu$trial re@!luti!n L 0ndustrial revolution marked the conversion of

economy from agriculture based to industry based' Moderni;ation and increased

means gave %ay to industrial setup' A department %as set up to look into %orkers

%ages, %elfare and other related issues' This led to emergence of personnel

management %ith the major task as

• Dorkers %ages

• Dorkers record maintenance

• Dorkers housing facilities and health care

An important event in industrial revolution %as gro%th of 4abour Union'

P!$t Indu$trial re@!luti!n L The term ?uman resource Management sa% a major

evolution after !E"' arious studies %ere conducted during this period %hich gave

?*M altogether a ne% meaning and importance'

() Centur? 'until late *>)F$.9 The post industriali;ation period continued until

late !E>s' volution of scientific human resource management %as emerged'

This period %as kno%n for traditional ?uman *esource Management' As a result,

?* started handling activities like

• *ecruitment and selection of skilled %orkforce<

• Motivation and employee benefits<

• Training and development of %orkforce<

• )erformance related salaries and appraisals<

• Dage uniformity<

• Statutory compliances<

() Centur? 'p!$t late *>)F$.9 This is the continuation of traditional human

*esource Management period' This is the period %here globali;ation %as evolving

in many %ays and many organi;ations started adopting the practice of operating

from various parts of the %orld L this is in search of skilled employees and to

decrease the e:penditure' The focus started shifting to%ards employee

development' ?* started handling activities like

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• *ecruitment and selection<

• Training and development<

• )erformance appraisals<

• .ompensation and benefits management<

• mployee Motivation through engagement activities, re%ards andrecognition<

• Attrition Management<

• Statutory compliances<

• 1esigning of policies<

An important event in this period is the improvement in communication systems'

(* Centur?9 Dith multiple organi;ations entering into different countries, there are

numerous brands of similar products available in the market' And also there is arevolution in communication system, transportation and in many other sectors' 0n

terms of communication, internet and mobile phones have become a part and

parcel of everyone>s life'

Today, organi;ations have an enormous competition in terms of people, products,

services and etc' 0n order to meet this, the traditional human resource management

approach faded and human resources started becoming a strategic human resource

management' Strategic ?*M focuses on actions that differentiate the organi;ation

from its competitors and aims to make long term impact on the success of

organi;ation' ?* started and continuing playing as a strategic advisor to themanagement' The focus is on attracting and retaining talent through engagement'

Activities handled are like

• Manpo%er planning, recruitment and selection<

• 4earning and development<

• +rgani;ational design, development and capability programs<

• 4eadership development<

• mployee advocate<• .hange Management<

• mployer branding<

• 0ncrease in the focus of the %ellness of employee %ith more focus on %ork-

life balance<

• .ompensation, benefits and %elfare

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• mployee engagement<

• )erformance appraisals focusing on overall development of employees<

• 1esigning of policies %hich focuses on enhancing employee e:perience at

%ork place<

• Statutory compliance<• .orporate social responsibility<

• mployee /rievance handling and etc'

Saying all these, ?* is still evolving, emerging and is becoming as a true

business partner' ?* plays a key role in organi;ation>s success by taking the

role of an advisor to the management in terms of attracting talent, retaining

talent, differentiating an organi;ation from its competitors' ?* is partnering

%ith the management to reach the organi;ational goals' There are an

increased number of ?* professionals understanding the concepts of business, finance, production, marketing, sales and other functions of

business' Also, the focus of ?* has been shifted and shifting to%ards

individual employee satisfaction, making the organi;ation as N$est )lace to

DorkO or Nmployer of .hoiceO not forgetting the fact that a happy

employee al%ays gives best in reaching organi;ation goals'

E,HRM

-?*M is the use of %eb-based technologies to provide ?*M services %ithin

employing organi;ations' 0t embraces e-recruitment and e-learning, the first fieldsof human resource management to make e:tensive use of %eb-based technology'

5rom this base e-?*M has e:panded to embrace the delivery of virtually all ?*

policies' Dithin a system of e-?*M, it is possible for line managers to use desktop

computers to arrange and conduct appraisals, plan training and development,

evaluate labour costs, and e:amine indicators for turnover and absenteeism'

mployees can also use a system of e-?*M to plan their personal development,

apply for promotion and ne% jobs, and access a range of information on ?* policy'

E,HRM is the Hplanning, implementation andI application of informationtechnology for both net%orking and supporting at least t%o individual or collective

actors in their shared performing of ?* activities'

T?pe$ ! E,HRM

Operati!nal E,HRM=

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+perational -?*M is concerned %ith administrative functions - payroll

and employee personal data for e:ample'

Relati!nal E,HRM=

*elational -?*M is concerned %ith supporting business processes bymeans of training, recruitment, performance management and so forth'

Tran$!rmati!nal E,HRM=

Transformational -?*M is concerned %ith strategic ?* activities such as

kno%ledge management, strategic re-orientation'

HRM IN IN&IAN BANKING IN&0STR/

Human Resource

?*M contributes to organi;ational performance in different %ays9 through sound

functional basics< through effective realignment %hen the e:ternal environment

changes< and by building an organi;ational conte:t to that the organi;ation can

cope %ith the dualistic forces

Human Resource in Banking

The core function of ?* in banking industry is to facilitate the performance

improvement among its people' 5actors such as skills, attitudes and kno%ledge of

personnel, play a critical role in determining the competitiveness %ithin the

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organi;ation or the industry'' The 8uality of human resources indicates the ability

of banks to deliver the value to clients or customers'

0ndian banking industry has been an important driving force behind the nation>s

economic development' The emerging environment poses opportunities and threats

to banks, as %ell as the human resource in changing economic and business

environment' The primary emphasis needs to be on integrating human resource

strategies %ith the business strategy' Above the aspects of recruitment, placement,

performance management, re%ards and employee relations - a radical

transformation of the e:isting personnel structure in public sector banks like the

seniority over performance is not the best environment for attracting the best talent

from the young competitive environment' ?o%ever, recruitment practices as %ell

as on-the-job-training and redeployment are considered as one of those many

improvements of ?* in 0ndian $anks'

HRM Background and Practices

To make the 0ndian $anking System stronger, efficient and lo%-cost, the creationof fundamentals must include in the bank>s operations, strategies and processes9

strengthening the prudential norms and market discipline< adoption of international

benchmarks< management of organi;ational change and consolidation %ithin the

financial system< upgrading the technological infrastructure of the financial

system< and human resource development as the catalyst of the transformation'

The ?uman *esource field in the $anking 0ndustry is considered as one of the

process of discovery and transformation' The field of ?uman *esource can be

described as emergent and dynamic %ithin the cultural business aspect in a

$anking 0ndustry' The success of today>s banking business %ill sparsely dependson the human resources of the organi;ation, in %hich plays a crucial role in

providing the services needed'

The evolution of banking system in 0ndia affected the human resource practices,

recruitment and selection practices, and training system' 0t is very important that

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the details of human resource are discussed along %ith the employees, to build

their o%n career planning, perceptions and development'

The primary strength of the industry is the human resource that is %hy the efforts

to develop the skills and management are the main subject placed before the

human resource' A major challenge for many banks %ill be to develop the special

competencies and skills for credit appraisal and risk management' )utting the

information technology is a key contributed in human resource development'

Therefore, the ?* model of the future %ill re8uire professionals to be both driving

and anticipating change, understanding the comple:ities of the ne% business

environment and forces shaping it

HR Practices and Methods

A key focus of the human resource management is highlighted in the role of

staffing, performance management, training and development, and compensation

that plays indifferent types of business strategies' Dith the ac8uisition and

preparation of human resources, including planning, recruitment, selection, and

training can affect the %hole organi;ational performance'

• The ?* planning, the start of the strategy, illustrates the process of

developing human resource plan' The strengths and %eaknesses of staffing options such as outsourcing, use of contingent %orkers, and

do%nsi;ing are involved in planning'

• The recruitment process is done strategically to determine the talented

employee fit for the position'

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• The selection process emphasi;es the %ays in minimi;ing errors in

employee selection and placement to improve the company>s competitive

position' The selection method standards such as validity and reliability

are utili;ed'

• An effective training systems of the manager>s role in determining

employees> readiness for training, creating a positive learning

environment, and ensuring the training is used on the job'

$eyond the human resource strategies are the re%arding and compensating that can

strengthen or %eaken the employee effectiveness' 0n order to give recognition and

increase motivational levels amongst the employees, some $anks linked the

individual performance in an incentive scheme L or for some re%ards that maycome into any form ' 0n summary, all of the ?*M strategies and function should be

aligned to help the company meet its objectives L as %ell as focusing on their

customers'

The best practice approach assert that certain ?* practices are found to

consistently lead to higher organi;ational performance, independent of an

organi;ation>s stated strategy' The high performance ?* practices foster

innovation through the development of innovation values, encouraging of

information sharing, goal setting and appropriate training and development' The

major innovations in ?r practices occurred %hen senior line managers take the leadand their adoption depends on the attitude of top management and their

relationship %ith the ?* department'

NEE& O% HRM IN BANKS

?uman *esource Management is important for banks because banking is a service

industry' Management of people and management of risk are t%o key challenges

facing banks' ?o% you manage the people and ho% you manage the risks

determines your success in the banking business' fficient risk management maynot be possible %ithout efficient and skilled manpo%er' $anking has been and %ill

al%ays be a P)eople $usinessP' Though pricing is important, there may be other

valid reasons %hy people select and stay %ith a particular bank' $anks must try to

distinguish themselves by creating their o%n niches or images, especially in

transparent situations %ith a high level of competitiveness' 0n coming times, the

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very survival of the banks %ould depend on customer satisfaction' Those %ho do

not meet the customer e:pectations %ill find survival difficult' $anks must

articulate and emphasi;e the core values to attract and retain certain customer

segments' alues such as PsoundP, PreliableP, PinnovativeP, PinternationalP, PcloseP,

Psocially responsibleP, P0ndianP, etc' need to be emphasi;ed through concreteactions on the ground and it %ould be the bank>s human resource that %ould

deliver this'

0t is a common complaint among bank e:ecutives that skilled manpo%er is in short

supply' 3o t%o arguments on this, ?* resources are becoming scarce L both in

8uality and 8uantity' And, it is 8uite elementary that any resource that is in short

supply needs to be properly managed for the benefit of society and, therefore, you

need to pay attention to the entire ?uman *esource Management process' Dhat

does it meanQ 7ou need to manage the people L and for this you need to

discriminate bet%een the people, that is positive discrimination' The entire

spectrum of ?* practice re8uires revolutionary changes if the banks have to

survive' Managing the people is the key challenge' And, discrimination is the key

%ord %hen dealing %ith people' 7ou %ill notice that this %ord is very fre8uently

used'

RO4E O% HRM IN BANKS

• Appli2ant $2reenin1=

.ertain jobs do not really re8uire a thorough background check, but any job

in a bank definitely does' ?uman resource departments in banks must go the

e:tra mile to uncover the criminal and financial history of job applicants, for

the safety of their clients and their organi;ation as a %hole' $anks are highlyunlikely to hire candidates %ith financial fraud on their records, for e:ample,

due to the sheer %eight of temptation a position in a bank %ould place on

someone %ith that kind of history'

Ban< $e2urit?=

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?uman resources departments must design and monitor %ork processes to

reduce opportunities for internal theft and collusion' ?* policies separate

cash receiving, storage, processing and disbursement, and record all

activities via video surveillance' 0n the event that an employee attempts to

steal from a bank, the ?* department must handle the legal paper%ork andadministrative processes re8uired by court proceedings'

Pa? de2i$i!n$=

As %ith other industries, ?* professionals in banks have a hand in making

decisions for pay raises and promotions' $ank %orkforces are uni8ue in that

they often have t%o methods of paying employees9 salaries for back-office

and other personnel, and commissions for sales employees' )romotion

decisions for salespeople selling loans and other financial products differ

from decisions to promote administrative staff' $anksJ ?* departments must

manage both e8uitably and strategically to develop the %orkforce'

Ee2uti@e re#uirement=

The banking industry is highly competitive, and banks constantly navigate a

legal minefield that can devastate companies that step out of line' 5inding

the right e:ecutives is crucial in any industry, but especially one in %hich

competition is so fierce and legal compliance so important' ?uman resources professionals in banks must go the e:tra mile to recruit the best e:ecutive

talent in the banking field, allo%ing their organi;ations to thrive and gro%

into the future' ?uman resources departments in corporations must gain

approval of the board of directors before bringing someone in to fill an

e:ecutive spot, as %ell'

HR CHA44ENGES %ACE& B/ BANKS

• The first and foremost challenge that ?* function in 0ndia faces is to convert

the abundant population pool into useful human resource'

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• Training and development of human resource to match ever changing

industry demands re8uires ?* to develop ne% and innovative ideas that suit

individual as %ell as industry criteria'

• mployee motivation and satisfaction is another area of concern for the ?*

today' 0n order to reduce attrition, ?* needs to reali;e that monetary needs

are not the only drive for an individual and that a sense of belongingness

must be imbibed in employees'

• Dith the increase in number of job options available no%adays, the ?*

function of an organi;ation must take care that they hire those people %ho

believe in long-term commitment to the organi;ation' The ?* then must

take up the challenge of retaining them by developing retention techni8ues

like ?oliday plans fun-at-%ork etc'

• $ecause of cutthroat competition, ?* in 0ndia also faces the task of buildingcompetitive advantage for the company over national and international

competitors'

• The gro%ing importance that companies are no%adays giving to cost-cutting

has posed ?* %ith the challenge to minimi;e e:penditure on ?* not

compromising on the productivity'

• Since right-si;ing has been a gro%ing trend in 0ndian organi;ation, the ?*

no% faces the task of identifying and retaining the key employees of an

organi;ation and letting go those that do not suit its future re8uirements'• ?* also faces the challenge of creating a balanced organi;ation that

originates from mergers and ac8uisitions'

• ?* needs to assimilate those policies that are mutually agreeable to the

companies being merges as %ell as profitable for the ne% organi;ation'

• /lobali;ation poses ?* %ith challenges such as e:patriation and

repatriation' ?* needs to train employees that leave their nation for fulfilling

a foreign assignment' 0t also needs to provide such employees %ith ade8uate

moral support and assure them of job security on their return'

• Dith multinational organi;ations on the rise, ?* needs to focus on issues

such as cross-cultural training so that problems that can arise because of

differences in international professional values can be diminished'

HO; TO MANAGE H0MAN RESO0RCE

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HaI )lanning

HbI Ac8uiring the right people

HcI *etainingKdeveloping the people

HdI Managing people separationKe:it

'a. Plannin1

As the economy gro%s at a steady rate of around @-ER, incomes rise and

demographic dividends start accruing, the $anking industry is e:pected to take a

8uantum leap for%ard' $ut this gro%th %ill need a large number of people and

considering that there are retirements in lakhs, a defining moment is being

presented before the 3ationali;ed $anks to transform' Are the banks ready to

handle the ne% bunch of employees %ho %ill be culturally so different from their

predecessors of the post nationali;ation eraQ 0t all begins %ith having a manpo%er plan' ?o% many banks can claim to have a proper manpo%er plan that captures the

type of people it re8uires, the level at %hich they are re8uired, clearly defined roles

for everyone, etc' Manpo%er plans should follo% a lifecycle approach, that is, from

the time of recruitment of an employee to his retirement' 5urther, this needs to be

integrated %ith the $usiness )lan and strategy of the bank' Are %e having a

$usiness Strategy or $usiness )lan needs to be addressed first'

Dhile planning your people re8uirement it is very important for you to develop

your Nemployer brandO, that is, your reputation as an employer to attract, engage

and retain talented candidates and employees' $anks %ill have to plan for the

follo%ing9

• A steady, carefully calibrated recruitment programme,

• As rapid technological changes transform business L continuous skill up-

gradation,

• A ne% generation of the %orkforce %ill be %orking alongside an older

generation as a team' $anking, in my opinion is a team %ork and this ne%

situation %ill re8uire cultural adjustments and therefore, change

management'

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b. A2#uirin1 t"e ri1"t pe!ple=

Dhat kind of talent is re8uired by the banksQ 1iscrimination is the key' 1o %e

need good peopleQ +r do %e need suitable peopleQ De re8uire good but suitable

people' 0s the mad rush to top campuses justifiedQ Dill the people recruited fromtop management institutes understand the 5inancial 0nclusion driveQ Dill these

people have empathy to%ards poorest of the poorQ 0t is often heard bank heads

talking about the challenge of finding people keen to %ork in rural areas' 1oes it

not indicate that there is something amiss in the %ay %e recruit peopleQ 0s it not

better to recruit people from smaller citiesQ

?o% do %e get to ac8uiring people %ith the right kind of talentQ Unfortunately, it

is the same limited talent pool that %ill be targeted by $anks, 5inancial

0nstitutions, 0nsurance, Telecom and other industries %hich are on fast gro%th track

and in need of talented manpo%er' Dhile my friends in the $anking 0ndustry are

busy developing Non-lineO application forms and Non-lineO tests, %e need to

probably 8uestion if %e are even targeting the right kind of talent pool' 0 %ould like

to have a study on ho% many people in remote villages, at the taluka K tehsil level,

appear for the recruitment tests that are conducted' $ecause, these might be the

people %ho could be best suited to drive our financial inclusion agenda' Dhile %e

are busy testing the people for problem solving skills on paper, )rofessor 1ebashis

.hatterjee, 1irector of 00M 6o;hikode says that these do not necessarily mean problem solving skills on the ground' +ur recruitment tests do not focus on testing

the psychological abilities of candidates to ensure that only the ones %ith right

attitude to%ards the job are selected' This is %hy %e often end up %ith people

having brilliant minds but incapable of actually delivering on the tasks assigned'

$anks need to seriously look at lateral recruitment as an option to induct specialists

at various levels %ith specific skill sets and e:perience pool' Dhile %e have often

heard of people leaving banks to join finance, legal, accounting firms, etc' seldom

have %e heard of people leaving these professions to join banks' This, needs to

change'

The right people %ill come only if they are paid competitive salaries' ?o%ever, too

much pay also involves moral ha;ard issues and invites adverse attention of

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e:ternal stakeholders' As %e %ill see later, the salary structure in the )S$s appears

to be distorted' There has to be discrimination in salaries of people'

'2. Retainin1D &e@el!pin1 t"e Pe!ple=

De may be able to get the most suited people for our %ork but then the challenge is

to retain these people and to develop them' There are several dimensions to this

issue such as trainingK re-skilling of employees, performance measurement,

promotion policy, transfer policy, talent management, communication, etc'

Trainin1D Re,$' De

have moved on further and are no% in the =6no%ledge Age> and in this age, in my

opinion, people %ork for =mpo%erment> more than anything else'

The best development of people is through empo%erment' )eople at all levels in

the organi;ation must feel empo%ered' 5or this, %e need to cut layers of

bureaucracy that %e have created over the years and adopt an effective %ay to

delegate' De have made some beginning in this direction in the *$0'

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Per!rman2e Mana1ement=

This is the most important area of ?uman *esource Management, the foundation

of %hich is discrimination' Unfortunately, current systems are unable to

discriminate and differentiate bet%een performers and non-performers' 0n fact, it isimpossible to identify %ho are the performers and %ho are the non-performers' 0n

any organi;ation typically there %ould be some !-!"R of people %ho %ould be

the high performers' ?* managers often focus on this segment and try to cater to

their needs first' 0nstead, focus should be on the remaining E"R as any

improvement in their performance %ould have a significant impact on the

organi;ation>s performance' Dith all the efforts a student %ho al%ays scores above

R marks in his class, %ill benefit by only a fe% percentage' The one %ho scores

only C"R, ho%ever, has the potential of doubling his marks'

The results of not having a proper performance management system are disastrous'

De all have to deal %ith the problem of people %ho are NpromotableO but not

NpostableO and people %ho are NpostableO but not getting promoted' This is

because %e have failed to discriminate bet%een performers and non-performers'

?* systems may have failed to appreciate performers' 0n fact, %e have not even

tried to define %hat performance is in a given job' 1espite this, %hat is the kind of

time %e are spending on )erformance ManagementQ Dhat is the kind of attention

that the $oards, .M1s and 1s give to thisQ To begin %ith, job roles and jobdescriptions need to undergo a major overhaul' 0n fact, even at the level of .M1sK

1s there is a need for complete job description and clear delineation of job roles

of .M1s and 1s' De need to define NperformanceO appropriately in the conte:t

of banking services today for all levels of functionaries'

A fair, transparent and objective mechanism for performance management is a

must for all banks because an effective )erformance Management System is the

key to talent management and succession planning' 0n *$0 %e are shortly going to

introduce a ne% )erformance Management System that %ill %ork on goal setting,

potential appraisal of performers and developing a talent pipeline'

De are also going to face major challenges on the Talent Management front' 0n

coming times, the %ork force %ill get comple: and there %ill be a need to juggle a

%ide variety of people %ith varied needs and preferences, resulting in an array of

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relationships bet%een the organi;ation and those %ho %ork for it' )eter 1rucker

had, more than a decade ago, e:pressed the need for %hat he called Nnon-

traditionalO %ork relations9 fle:ible schedules, contract arrangements, virtual

teams, etc'

Mana1in1 in t"e

• Above all, they cannot be purchased or bribed, they have to be empo%ered'

The ne% generation, in the age of kno%ledge %orkers, is going to be different' De

need to re%rite our employment contracts' There should be a variety of people

%orking %ith us on variety of options L part time K contractual K regular L regular in

regular job K regular on fle:i-hours, etc'

A )erformance Management System should thro% up future leaders' This sounds

very simple but %e must kno% %hat %e e:pect from these leaders' Dhat is

e:pected of a leaderQ

A leader is e:pected to do

• )lan Hthe taskI

• 0nspire HpeopleI

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0nspire for aspiring

0nspire for perspiring

And<

•

1eliver Hon resultsI

A leader is no leader if he K she cannot deliver'

S?$tem$D Pr!2e$$e$=

The hallmark of any effective ?* systemK process is that it should be objective and

transparent' These traits are essential for the manpo%er to repose trust in the

organi;ation>s systemsK processes' 3o ?* function can be effective if it does not

enjoy the trust and confidence of its constituents'

T%o key stakeholders in the ?* management process are $oardK Senior

Management and Unions' ?o% much time do $oard members spend on ?* related

issuesQ )erhaps, not enough' Structurally, it is important that $oardK senior

management is actively involved in ?* matters involving all its manifestations'

+rgani;ed employee unions are an important part of the democratic process and

form an effective channel for communicating %ith employees do%n the line' 0t is

important to involve them in the ?* process %ithout allo%ing them to have an

overbearing influence'

C!mmuni2ati!n=

.ommunication %ith employees is a vital part of the ?* process as it helps

enhance transparency in ?* practices, thereby imparting credibility to them' Dhen

dealing %ith human beings, it is important to be objective, transparent and non-

discriminatory and this must be effectively communicated' The employee must say

that the management has all the above 8ualities' The $oard must spend time on

devising %ays and means for this communication L lay do%n appropriate structures

for the purpose' All forms of modern communication channels including intranet,

corporate e mails, etc' can be adopted to reach out to employees' ?o%ever, despite

these developments, the traditional channel of communicating through unions

continues to be relevant as employees attribute greater credibility and reliability to

messages received through their unions' The $anks have a clear cut advantage in

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this respect L they already have a participative process' *epresentatives of the

employees sit on the $oard itself and hence, it re8uires better practice of

participative management in the real sense of the term'

'd. Mana1in1 pe!ple $eparati!n D eit=

:cept maybe a last fe% years, so far most of the people leaving us %ere due to

retirements' Things %ill change, unless %e are doing all the other things that 0

spoke out earlier, properly, people %ill also leave us for other opportunities L and

believe me, there are going to be plenty of them L not only from competitor banks

and financial sector but also from outside the financial sector'

De need to introduce a system of e:it intervie%s to determine %hy people are

leaving our organi;ation L %hether there are any inherent systemK structurefailuresQ ?ave %e not been able to empo%er the people enoughQ De should not try

to block their e:it but, as a part of the manpo%er planning process, should be able

to identify substitutes %ho can step in and ensure non-disruption of important

functions, in the event of the e:it of a key person' The place of an e:perienced

person could al%ays be filled in through lateral recruitment of a person %ith

matching skillsK e:perience'

Dhile %e are facing a crunch of manpo%er L can %e use our retired people insome %ay L %e are paying them pension and reasonable medical benefits already L

can some contracts not be %orked out for themQ Again, can %e not provide some

empo%erment to them to leverage on their inherent loyaltyQ They could be useful

in brand building efforts, or perhaps, in our financial inclusion initiatives' 0t is,

definitely, an avenue that could be e:plored'

3ationali;ed $anks are at the cusp of a uni8ue opportunity L %ith people retiring

in lakhs making it a =retirement decade>, it is the best time to transform the ?*

processes and implement some ne% age concepts' This kind of opportunity totransform ?* processes is once-in-a-lifetime %indo% %hich, if properly utili;ed,

could help our banks take giant strides' +n the other hand, those %ho miss the bus

%ould lag behind' The kinds of ?* changes re8uired are a tremendous challenge

and opportunity at the same time' De need some fresh ideas to make the banks

=future - ready>

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STAN&AR& CHARTERE& BANK

Strate1i2 HRM Pra2ti2e$ ! Standard C"artered Bans leading emerging markets bank' 0t employs

B, people in over " offices in more than " countries in the Asia )acific

*egion, South Asia, the Middle ast, Africa, United 6ingdom and America'

At Standard .hartered $ank, human resource planning involves forecasting the

numbers of people %hich %ill needed by the bank, and then %orking out the best

%ay of obtaining then as and %hen they are needed'

%!re2a$tin1

5orecasting is the major function of the Standard .hartered>s ?* department' The

forecasting activities include9

• Dorkforce numbers in sufficient detail to be useful'

• 4ikely changes to the %ork of the bank'

• Dork force supply L this involves forecasting the variations in the current

%ork force estimated to occur over the follo%ing years'

• 0mpact on budgets and funding'

G!!d Pra2ti2e Indi2at!r$

Standard .hartered $ank makes sure that effective human resource planning

process is in place %hen9

• Appropriately skilled people are available to be deployed in the

$ank>s to meet forecast %ork demands'

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• The $ank>s structure provides %ith opportunity for appropriate career

development, and is perceived to contribute to effective and efficient

%ork practices'

•

*elevant %orkforce data is readily available to inform managementdecision making on human resource issues'

Trainin1 &e@el!pment

1evelopment is critical to our future business success' 0n an e:clusive intervie%

after recession hit the economy, $ank>s M1 said “T"e ban


33/42

On-job Training

Staff members are continuously involved in the learning process in the form of on-

job training' Thus, a lot of on-job training opportunities and job rotation to increase

staff>s e:posure are provided'

Self-learning

The Standard .hartered $ank sends out .1s and books to staff for them to study

on trade kno%ledge, credit kno%ledge, etc' and staff %ill decide %hen heKshe %ill

attend the Trade Skill Assessment HTSAI and .redit Skill Assessment H.SAI

Management Development Training

0n this training program, the employees are given strategic perspectives and

business goals management skills< people management, net%orking and customer

focus abilities to better understand and manage their jobs'

Specific Competency Training

Specific .ompetence Training is to ensure that the staff e:cels in productkno%ledge, regulatory and uni8ue techni8ues needed for the particular position'

Learning and Development

Standard .hartered recogni;es that it is essential that they have the best people

e8uipped %ith the right skills and kno%ledge to perform their roles to the highest

standards' They %ent talented professionals, %ho seek self-development

opportunities including continuing professional development' 0n return the $ank

offers e:cellent training and development' They focus development on %here they

believe that they %ill get the greatest return, by developing employee>s strengths'

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Re2ruitment

Standard .hartered $ank recruits the most talented individuals from the e:ternal

market to supplement their internal pipeline of talent' Their ?uman *esources

department provides guidance on the uses of psychometric tests and has robust

recruitment criteria to ensure that all candidates are treated fairly, e8ually and %ith

respect' 0t has a global /raduate *ecruitment )rogram< %here in the region of !"

graduates are recruited each year on a management trainee program across all

businesses, functions and countries'

Sele2ti!n

Standard .hartered selects employee based on kno%ledge, skills and talent' They

are committed to providing e8uality of opportunity to all employees, regardless of

gender, race, nationality, age, disability, ethnic origin, or marital status' They are

committed not jus to providing e8uality of opportunity to all employee, but also

identifying %hat uni8ue strengths each individual brings to the roles they carry out

and the development of these strengths'

Empl!?ee "ealt"5 ell,bein1 and $aet?

Standard .hartered $ank believes that the health and %ell-being of their

employees and their families is important' They are concerned not only about the

physical health of their employees, but also their mental and emotional %ell- being'

Standard .hartered has policies & practices that provide for a safe and healthy

%orking environment' They place importance on the safety and %ell-being of their

staff, communities and on the effect it>s %orking and operational processes have on

the environment' They are continually developing policies and practices designed

to maintain the highest appropriate standards'

Reard Re2!1niti!n

Standard .hartered $ank aims to re%ard the talented and high performing

employees competitively' They regularly conduct salary surveys to ensure that the

re%ard package remains competitive in the market place' They encourage

continuous discussion< encourage regular revie% of employee>s performance and

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development' This provides feedback to the staff about ho% they are doing' The

management links this to both financial and non-financial recognition'

0n addition to this, the bank provides various incentives in the form of bonuses to

encourage the employees and motivate them to continue %ith their high

performance' These include9

♣ Spot A%ard *s' " as cash pri;e

♣ Surprise A%ard

♣ $est )erformer A%ard

♣ Service uality A%ard

♣ 7S H7ear of :cellent ServicesI A%ard

ualit? ! ;!r< 4ie

This means a job that not only is reasonably safe but also for %hich the pay is

e8uitable' At Standard .hartered $ank every employee in confident of his job

security and has the assurance that he %ould remain on the job for the agreed

period' 0n addition to this, the %orkload is e8uitable divided bet%een theemployees and therefore, they %ork %ith peace of mind and tran8uility, resulting in

the overall enhanced performance of the employees'

Mutual C!mmitment

$oth the employees and the management try to meet the common objectives' They

coordinate their activities to ensure that they are heading to%ards achieving the

established goals and meeting the set targets %ithin the specified time frame'

Mutual tru$t

At Standard .hartered $ank prevails an environment of confidence and mutual

trustQ The documented employment policies are honestly implemented to the

satisfaction of both management and employees'

Per!rman2e Apprai$al

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At Standard .hartered $ank the performance appraisal are in respect of the five

D>s that include9 Dho, Dhat, Dhy, Dhen and Dhere of performance appraisal'

;"!= All employees %ork under the supervision of managers' Therefore, the

manager is the best person to do performance appraisal of his subordinates'

;"at= The appraisal at the organi;ation includes appraisal of current performance

as %ell as the future potential' 0t also includes evaluation of human traits such as

behaviors, interaction %ith other staff members etc'

;"?= 0t is concerned %ith creating and maintaining a satisfactory level of

performance of employee in the present job, highlighting his needs and potential

for personal gro%th'

;"en= 0t is carried out on yearly basis' The manager uses good %ork as

opportunity to provide positive thrust and uses poor %ork as a basis for training'

;"ere= The performance appraisal is done in a cordial and friendly environment'

Appr!a2" ! Mea$urin1 Per!rman2e

The performance of the employees can be determined by making an overall

comparison among individual=s performance' ?ence a performance measurement

system is developed that incorporates a tool for measuring performance'

Apprai$in1 Empl!?ee Per!rman2e

Individual Performance Management

A longstanding 8uestion that Standard .hartered $ank and many other

organi;ation are still grappling %ith is %hether and ho% to re%ard good

performance Hor, conversely, ho% to deal %ith persistent poor performersI' +ne

approach used by the bank is to make salary increments or progression on the pay

scale conditional on good performance'

Performance Management at Senior Level!

Typically, performance management systems for senior officials include elements

additional to performance-pay, such as time-limited contractual appointments' The

$ank has adopted this approach' 6ey features of its system include the follo%ing9

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Senior officials are recruited to a unified career structure kno%n as /rade A, %hich

incorporates most top-level positions'

+n the basis of evaluation, the senior position employees are paid a performance

bonus'

S;OT Anal?$i$ ! Indian Ban


38/42

%a2in1 Gl!bal C"allen1e$

Dhile the globali;ation bug has bitten 0ndian organi;ations till about a decade,

several global M3.s have been managing a global pool of employees and have

therefore implemented a number of best practices in this area'

?ere are some common best practice themes in managing an international talent

pool

!' C!mmit $tr!n1l? t! de@el!pin1 leader$ it" 1l!bal !utl!!< 2apabilit?

a3 Set the tone from the top= +rgani;ations betting global clearly establish that

international e:posure is a key ingredient for success in climbing the corporate

ladder, e'g' ) & / & li 4ily ensure that their top e:ecutives have at least one

international assignment' .olgate-)almolive, )epsi.o and / have a regular pool

of /lobal :patriates %ho build critical e:periences outside their home country as

part of their 4eadership 1evelopment )rogram'

b' Invest in creating international cadre9 $anks run a program for 0nternational

+fficers H0+sI that includes a -%eek residential training %ith emphasis on core

values, five-year rotation through five areas of commercial banking in several

countries and ne% postings every 2-B years in an increasingly challenging

environment'

c' Access the best talent pool, regardless of source9 banks uses its ?*0S to seek

out internal candidates for overseas assignments and develops case studies to be

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used in university training programs' They maintain the right to transfer top talent

%hen negotiating joint ventures and has a mini-M$A program for )olish joint

venture'

2' En$ure rapid depl!?ment ! internati!nal mana1er$ t! $eie !pp!rtunitie$

a' Build mobility explicitly into value proposition9 $anks set mobility e:pectations

%ith their 0+s from 1ay ! and are managed as a corporate resource pool' They also

create cross-border teams to solve problems'

b' Remove barriers to mobility= Some banks have a spouse assistance program'

Shell has programs like Spousal mployment )rogram and education allo%ance

for children'

c' Use bundled skills approach= .arrefour, the 5rench retail giant develops stores

in ne% emerging markets by sending in a team that stays on site till the operation is

on its feet and then moves to a ne% site' ?S$. dispatched a high potential cross

functional team to spend B years setting up operations in .hina'

B' Alla? ear$

a' Balance tenure with motivation9 A$3 Amro does not repatriate managers until

they>ve had a chance to sho% impact' Several organi;ations maintain motivation

through fre8uent senior leaders> interaction'

b' Build connectivity with broader organiation= ?15. assigns a senior home

office mentor %ho periodically touches base to provide ne%s about events in home

country and offers career advice' A$3 Amro uses the corporate intranet to

stimulate communication among e:patriates

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BIB4OGRAPH/=

;;;3GOOG4E3COM

;;;3;IKI3COM

;;;36IP04PRAKASHAN3COM

;;;3STAN&AR&CHARTERE&3COM
http://www.google.com/http://www.wiki.com/http://www.vipulprakashan.com/http://www.standardchartered.com/http://www.google.com/http://www.wiki.com/http://www.vipulprakashan.com/http://www.standardchartered.com/

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