Banking on HR......A new People centric approach in Banks Shuchi Sanon MBA-IT (Sem-I)

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If you think banking is all about money. Think again. Banking is all about people. People behind the counters and people in front of the counters.

Why is HR so important?

It is pertinent to ponder over the fact that why HR assumes such a crucial role in today’s organizational scenario despite the massive advancement in the field of IT. Perhaps that this is the only resource, which gives meaning significance and validation to all resource. While all other resources depreciate over time HR appreciates through use. It’s so powerful that it can make or mar. It is like a sharp knife that can be used for either for some good or for some evil purpose.

Importance of HR in Banking

HR plays a vital role in organizational effectiveness. No matter how sophisticated and modern business activities are it becomes difficult to sustain its growth & effectiveness unless human resources are complementary to its operations. This is more important to a service industry like banking where continuous improvement is a must to meet the rising expectations of the customers. Here the role of the seller is pivotal in driving ultimate satisfaction of the customer. This casts a spell on the customer and that experience will go a long way in shaping the future of the relationship banking has. With a positive frame of mind the employee will be in a position to anticipate customer needs and accordingly satisfy the same.

What is HRM in banking?

HRM in the context of banking is not only acquisition of new knowledge and skills but also acquiring capabilities to manage both internal and external environment attaining self confidence and motivation for public service.

Performance of any individual is a function of his/her own ability and willingness. While ability is functional of skill development and knowledge generation, willingness is a function of attitude.

Looking back

In early seventies the banks main focus of attention was that of opening more n more new branches and growth of their business. It mostly “targeted banking”. Consolidation and motivation were not considered the growth during this period was due to mass expansion of branches, massive recruitment of manpower and huge promotion of employees and officers at all levels.

Due to this quantitative approach certain natural corollaries occurred as:

Towards better Management

Some associate banks made an excellent beginning by initiating a number of innovations in personal function like:

Revitalizing training System

Training efforts redirected to personal growth, and making it performance and development oriented

Around 1979, state bank of India set up a formal HRD department at central and local head office level

OCTAPAC culture

A close analysis and survey of the initiatives taken by banks like job rotation, promotion, transfer, training and customer services; it was realized that banks would be effective only when there was a transparent climate in the organization. Dr. Udai Prateek suggested that HRD is incompatible with the   culture of authoritaritism, secrecy and avoidance of conflicts. He suggested the OCTAPAC culture

O-openness

C-collaboration

T-trust

A-authenticity (doing what is expressed in words by top management)

P=pro-actions (taking initiatives)

A- autonomy

C – Confrontation with problems

 

THE LONG AWAITED SHIFT

Traditionally the major chunks of banking activities were on routine, repetitive, and regulated with very little scope for innovation, creativity and challenge. It was labour intensive. Come technology and the face of banking wore a different look. The mundane drudgery of digits has been given by. It has become knowledge intensive. With the back office functions now taking a back seat, the demand for computer literacy, communication skills have become predominant. PSU banks have now started to brace the core banking idea.

With the large-scale computerization & various technological advancements there is an excess of manpower in these organizations. Strategies towards deployment of manpower and further slimming of the work force are being taken. This is as even though manpower is crucial in this kind of industry, it has become redundant and hence ‘rightsizing’ became essential. Reduction of one lakh employees have been done through VRS scheme, but this also has acted as a demotivating factor for those who have been staying on in the organizations.

The challenge now is to enhance the quality of existing manpower by inducing in them new skills so that they would work with the zeal required to come to power with the new young blood entering in the organization. The paradox now is that with the wake of globalization, the best cost effective, convienent way to do with this pressing issue is ‘outsourcing’ which has given way to freelancers.

But is it a panacea? The question relates to the effectiveness of the process—whether it is capable of delivering the value added operations, and can we afford to do away with the total belongingness of the processes.

What appears to be a more plausible alternative is to identify three tier of workforce through proper scanning:

1.      Core Worker

Core Worker represents that part of the workforce that is both able and willing to champion the cause of the management. These people directly contribute to the growth & development of the organization. This section should be strengthened by various motivational measures to ensure their long-term loyalty and commitment towards the organizational goal, throughout their service life.

2.      Peripheral Worker

Peripheral Workers are those who shudder to enter into the mainstream functions. Their risk appetite is very low and they prefer to remain in the comfortable realm of their own periphery. They are bereft of any strong desire to excel. Measures can be taken to bring forth their latent capabilities may be taken like posting them to areas of challenging tasks so as to convert them into core workers.

3.      Outworker

An outworker is suitable for those types of job in the organization that does not require much of intervention in the decision making of the organization, like stereotype jobs. Their performance needs to be evaluated periodically to decide on their suitability of their job.

However the major emphasis should be laid on development of the core worker by ensuring life long security by:

The Last Word

The immediate task before the banking industry is to identify the core group and hone their knowledge, skill and attitude through a continuous process of training and retraining. The corporate policy should be transparent, the performance appraisal system needs to be objective and proper reward system should be implemented by way of promotion and overseas placement for those employees who have contributed their entire mite for the overall progress and prosperity of the organization.

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