Hrm in Banking

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HRM INBANKING

PROJECT MADE BY RISHIBALCHANDANI

ROLL NO 02

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INTRODUCTION TO HUMAN RESOURCES:

Human Resource Management is essential in all sectors and

this project deals with human resources in general and in thebanking sector. Before discussing Human Resources in thebanking sector it is essential to understand the basicconcept of human resources as well as that of management.

The term human resources is variously defined in politicaleconomy and economics, where it was traditionally calledlabor, one of three factors of production. Its use withincorporations continues to define common conceptions of theterm.

Modern analysis emphasizes that human beings are notpredictable commodity "resources" with definitions totallycontrolled by contract, but are creative and social beingsthat make contributions beyond "labor" to a society and tocivilization. The broad term human capital has evolved tocontain the complexity of this term, and in macro-economicsthe term "firm-specific human capital" has evolved torepresent the original meaning of term "human resources".

WHAT IS MANAGEMENT?

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Management is concerned with the human beings whosebehaviour is highly unpredictable. Ever since peoplebegan forming groups to achieve as individuals.Managing has been essential to provide the coordination

of individuals efforts.Management does not perform specific jobs. It motivatesother people to perform specific jobs. It indicates a totalprocess of executive control in business. It impliesundertaking of responsibility for effective planning, policymaking, fixation of targets and operative functions ofproviding men, money and materials to run day-to-dayadministration. Management is concerned with actuallydirecting and guiding the operations to achieve businessobjectives. It uses human efforts to reach the predetermined

goals. Regulation. Control and evaluation of human efforts inthe direction of achieving the given objectives are theprimary functions of management.Also, management refers to bringing together of physicaland human resources to carry on planned activities andcontrol performance in order to ensure that what is done iswhat is expected. Management is applicable to both profit-making and service-rendering organizations.

HUMAN RESOURCE MANAGEMENT

Human Resource Management or Personnel management isthe activity of managing personnel, usually employees.

In any organization, managing personnel is the process ofmaking sure the employees (not the customers) are asproductive as they can be. This can include hiring, firing, ortransferring people to/from jobs they can do mostproductively.

This subject is a major at many universities, or a minor in thebusiness school. It is also known as personneladministration, which is functionally an equivalent term.

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MEANING OF HUMAN RESOURCEMANAGEMENT

A business unit needs employees to look after differentactivities. This is called manpower or human resource. Suchhuman resource needs to be developed fully so that it willmake positive contribution for the progress and prosperity ofa business unit. For this systematic development andmanagement of human resources is necessary. HumanResource Management (HRM) deals with:

(a) Training(b) Self-development

(c)Promotions(d) Performance appraisal of manpower recruited inan organization.

HRM is an organized learning experience aimed at matchingthe organizational need for career growth and development.It is a process involving series of learning activities designedto acquire desired level of competence among employees.HRM is a continuous process and it needs money. Suchinvestment creates a team of efficient, skilled and trainedmanpower which brings success and stability to a businessunit. HRM programmes offer long term benefits to anorganization.

CHARACTERISTICS OF HUMAN RESOURCEMANAGEMENT

UPGRADING MANPOWER

HRM is basically concerned with the upgrading ofmanpower working in an organization. This leads toimprovement in the individual performance of an employee

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and also corresponding improvement in the organizationalperformance.

STRESS ON TRAINING

HRM includes various schemes arranged for providingeducation, guidance, training and opportunities to learn anddevelop employees of all categories and working in differentdepartments. There is an integrated use of sub-systems(training, career developments, organizational development)in the HRM programme.

ATTENTION TO LEARNING AND CAREERDEVELOPMENT

Learning, self-development, career development andpossible through HRM programmes. These are the coreareas of HRM. Career development is possible through

joining training courses, reading books and periodicals.Learning and career development raise the capacity ofemployees to work at highest levels. They are given higher

positions with monetary benefits. ORGANIZATIONAL DEVELOPMENT

HRM includes organizational development, whichincludes effective communication within the organization,coordination of different activities, elimination of conflicts ofdifferent types and creation of orderly atmosphere in thewhole organization.

TEAM SPIRIT

HRM is basically for developing team spirit in the wholeorganization. For this, departments and levels ofmanagement are properly integrated. Team spirit facilitatesorderly growth of the organization in the right direction.

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HUGE SPENDING BY MANAGEMENT

All companies invest huge money on HRM activities butsuch expenditure is absolutely essential for survival in thepresent competitive business world. HRM programmescreate matured, skilled and efficient manpower, which is avaluable asset of a business unit.

TERMINATION OF EMPLOYMENT

Termination is an unpleasant part of any managers job.Employees occasionally must be terminated for breakingrules of failing to perform adequately.

CONTINUOUS ACTIVITY

HRM is rightly treated as a continuous activity due tonew developments taking place regularly in the businessworld. For this, on the job and off the job training

programmes are introduced from time-to-time.

WIDE SCOPE

The scope of HRM programmes is very vast. It is multi-disciplinary in character. Training and guidance are given ondifferent aspects of business management to enablemanagers to deal with complex managerial problems and

challenges.

NEED AND IMPORTANCE OF HUMAN RESOURCEMANAGEMENT

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TO CREATE STABLE LABOUR FORCE

HRM programmes are needed in order to create stable,efficient, skilled and matured manpower required by an

enterprise for the present and future period.

TO UPDATE THE QUALITY OF MANPOWER

HRM activities are needed for updating the quality ofmanpower as per the growing and changing needs of anenterprise. This avoids managerial obsolescence. Even thevacancies at higher levels can be filled in internally due toHRM programmes as they provide training and opportunities

of self-development to employees working at lower levels.

TO DEVELOP STRENGTH FOR SURVIVAL

HRM programmes are necessary for survival in thepresent competitive marketing environment. An enterprisecan face market competition only improvimg quality,reducing costs and avoiding wastages. All this is possible

through HRM.

TO FACE CHALLENGES OF TECHNOLOGICALCHANGES

Technological changes are taking place rapidly in everyarea of business. HRM programmes are needed in order to

absorb technological changes taking place with speed. Infact, introduction of new technology, computers, automation,etc. will not be possible unless training is provided to themanpower.

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TO SATISFY THE DEMAND OF SELF-DEVELOPMENTOF EMPLOYEES

HRM is needed to meet the needs of employees in

regard to self-development and career developmentaspirations. Employees demend, training facilities, refreshercourses, promotions and transfers, career guidance, etc. fortheir self-development. HRM programmes are needed tofulfill self-development and career development ofemployees.

TO MEET FUTURE MANPOWER NEEDS

HRM is needed to meet the future manpower needs of

the organization. Executives, managers, supervisors leavethe job or retire due to age factor. Competent juniors musttake their positions. HRM is needed in order to keep ready ateam of competent managers as a second line of defence.

TO FACILITATE EXPANSION AND DIVERSIFICATION

HRM activities are needed to meet the manpower

requirements resulting from expansion and diversificationprogrammes undertaken at the enterprise level. Attentionshould be given to HRM much before the introduction ofexpansion programme.

TO UTILIZE PRODUCTION CAPACITY FULLY

HRM is needed in order to use the available productioncapacity to the optimum level. It provides skilledmanpower for this purpose.

SCOPE OF HUMAN RESOURCE MANAGEMENT

(1) TRAINING:

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Training is an essential element of HRM. This developsskills and capacity to work at higher levels andpositions. Training is possible by different methods. It isuseful for self-development and career development.

(2). PERFORMANCE APPRAISAL:

Performance appraisal is an important area of HRM.The purpose of

performance appraisal is to study critically theperformance of an employee and to guide him to improvehis performance. An employee is told about his strengthsand weaknesses and assistance is given to remove

weaknesses and make the plus points more strong. Thistechnique is useful for building a team of capable employeesand is also used for their self-development.

(3). POTENTIAL APPRAISAL:

It relates to the study of capabilities of employees. It isuseful for proper placement and career development of

employees. Potential appraisal of employees is useful fordeveloping their special qualities, which can be usedfruitfully along with the expansion and diversification ofactivities of the company. Potential appraisal is possible bythe superior with the help of different methods.

(4). CAREER PLANNING AND DEVELOPMENT:

Under HRM employees should be given guidance fortheir self-development and career development. Theopportunities likely to develop in the organization shouldbe brought to their notice. They should be motivated forself-development, which is useful to the organization inthe long run. Superiors are supposed to provide

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information and guidance to their juniors in this regard.Career development is an integral part of HRM.

(5). EMPLOYEES WELFARE:

Employees welfare is within the scope of HRM. Welfarefacilities are useful for creating efficient and satisfied labourforce. Such facilities raise the morale of employees.Employees welfare include the provision of medical andrecreation facilities, subsidized canteen, free transport andmedical insurance. Such facilities support training and othermeasures introduced for HRM.

(6). REWARDS AND INCENTIVES:

HRM includes provision of rewards and incentives toemployees to encourage them to learn, to grow and todevelop new qualities, skills and experiences which will beuseful in the near future. Reward is an appreciation of goodwork. It may be in the form of promotion, higher salary or

higher status. Rewards and incentives motivate employeesand raise their morale.

(7). ORGANIZATIONAL DEVELOPMENT:

HRM aims at providing conflict-free operationsthroughout the organization. It also keeps plans ready todeal with problems like absenteeism, turnover, lowproductivity or industrial disputes.

(8). QUALITY OF WORK LIFE:

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Quality of work life depends on sound relations betweenemployers and employees. A forward looking policy onemployee benefits like job security, attractive pay,participative management and monetary and non-monetary

rewards will go a long way in improving the quality of worklife helps employees to strike an identity with theorganization.

(9). HUMAN RESOURCE INFORMATION SYSTEM:

Such system acts as an information bank and facilitieshuman resource planning and development in a proper

manner. It facilitates quick decision making in regard toHRM. Every organization has to introduce such system forready reference to HRM matters. Updating of suchinformation is also essential.

HUMAN RESOURCE MANAGEMENT SYSTEMS:

Human Resource Management Systems (HRMS, EHRMS),Human Resource Information Systems (HRIS), HR

Technology or also called HR modules, shape an intersectionin between human resource management and informationtechnology. It merges HRM as a discipline and in particularits basic HR activities and processes with the informationtechnology field, whereas the planning and programming of

data processing systems evolved into standardised routinesand packages ofenterprise resource planning (ERP)software. On the whole, these ERP systems have their originon software that integrates information from differentapplications into one universal database. The linkage of itsfinancial and human resource modules through one

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database is the most important distinction to the individuallyand proprietary developed predecessors, which makes thissoftware application both rigid and flexible.

THE HR FUNCTION'S REALITYAll in all, the HR function is still to a large degreeadministrative and common to all organisations. To varyingdegrees, most organisations have formalised selection,evaluation, and payroll processes. Efficient and effectivemanagement of the "Human Capital" Pool (HCP) has becomean increasingly imperative and complex activity to all HRprofessionals. The HR function consists of trackinginnumerable data points on each employee, from personal

histories, data, skills, capabilities, experiences to payrollrecords. To reduce the manual workload of theseadministrative activities, organisations began toelectronically automate many of these processes byintroducing innovative HRMS/HCM technology. Due tocomplexity in programming, capabilities and limitedtechnical resources, HR executives rely on internal orexternal IT professionals to develop and maintain theirHuman Resource Management Systems (HRMS). Before the

"client-server" architecture evolved in the late 1980s, everysingle HR automation process came largely in form ofmainframe computers that could handle large amounts ofdata transactions. In consequence of the high capitalinvestment necessary to purchase or program proprietarysoftware, these internally developed HRMS were limited tomedium to large organisations being able to afford internalIT capabilities. The advent of client-server HRMS authorisedHR executives for the first time to take responsibility andownership of their systems. These client-server HRMS arecharacteristically developed around four principal areas ofHR functionalities: 1) "payroll", 2) time and labourmanagement 3) benefits administration and 4) HRmanagement.

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The payroll model: automates the pay process by gatheringdata on employee time and attendance, calculating variousdeductions and taxes, and generating periodic paychequesand employee tax reports. Data is generally fed from the

human resources and time keeping modules to calculateautomatic deposit and manual cheque writing capabilities.Sophisticated HCM systems can set up accounts payabletransactions from employee deduction or producegarnishment cheques. The payroll module sends accountinginformation to the general ledger for posting subsequent to apay cycle.

The time and labour management module: applies newtechnology and methods (time collection devices) to costeffectively gather and evaluate employee time/workinformation. The most advanced modules provide broadflexibility in data collection methods, as well as labourdistribution capabilities and data analysis features. Thismodule is a key ingredient to establish organisational costaccounting capabilities.

The benefit administration model: permits HR professionalsto easily administer and track employee participation inbenefits programs ranging from healthcare provider,insurance policy, and pension plan to profit sharing or stockoption plans.

The HR management module: is a component covering allother HR aspects from application to retirement. The systemrecords basic demographic and address data, selection,training and development, capabilities and skillsmanagement, compensation planning records and otherrelated activities. Leading edge systems provide the abilityto "read" applications and enter relevant data to applicable

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database fields, notify employers and provide positionmanagement and position control.

Typically, HRMS/HCM technology replaces the four core HRactivities by streamlining them electronically; 1) payroll, 2)time and labour management, 3) benefit administration and4) HR management. While using the internet or corporateintranet as a communication and workflow vehicle, theHRMS/HCM technology can convert these into web-basedHRMS components of the ERP system and permit to reducetransaction costs, leading to greater HR and organisationalefficiency. Through employee or manager self-service (ESSor MSS), HR activities shift away from paper based processesto using self-service functionalities that benefit employees,

managers and HR professionals alike. Costly and timeconsuming HR administrative tasks, such as travelreimbursement, personnel data change, benefits enrolment,enrolment in training classes (employee side) and to instructa personnel action, authorise access to information foremployees (manager's side) are being individually handledand permit to reduce HR transaction time, leading to HR andorganisational effectiveness. Consequently, HR professionalscan spend fewer resources in managing administrative HR

activities and can apply freed time and resources toconcentrate on strategic HR issues, which lead to businessinnovation.

HUMAN RESOURCE MANAGEMENT IN BANKING

WHAT IS A BANK?

The word bank is derived from the Italian banca, which isderived from German language and means bench. The terms

bankrupt and "broke" are similarly derived from banca rotta,which refers to an out of business bank, having its benchphysically broken. Money lenders in Northern Italy originallydid business in open areas, or big open rooms, with eachlender working from his own bench or table.

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The essential function of a bank is to provide servicesrelated to the storing ofdeposits and the extending ofcredit.

The evolution of banking dates back to the earliest writing,and continues in the present where a bank is a financial

institution that provides banking and other financial services.Currently the term bank is generally understood as aninstitution that holds a banking license. Banking licenses aregranted by financial supervision authorities and providerights to conduct the most fundamental banking servicessuch as accepting deposits and making loans. There are alsofinancial institutions that provide certain banking serviceswithout meeting the legal definition of a bank, a so callednon-bank. Banks are a subset of the financial servicesindustry.

Human resource management (HRM) has long beenoverlooked in the corporate sector in the country where asmall section, comprising mostly the multi-nationalcompanies was practising the same.

With the growing realization of proper HRM in the corporatesector, it has grown into an important activity. Now the headof HRM is an important member of the senior teams of any

thriving business.

Although the idea is new for many local businesses whereentrepreneurs are at the beginning of the learning curve yetin reality the theme is getting support from the organizedentrepreneurs.

The banking sector has grown from a few institutionsprimarily involved in deposit acceptance and trade financeinto a complex multi player markets where large number of

commercial banks, financial institutions and specializedbanks are operating with various products and activities.

The banking has become a complex activity within thefinancial market linked directly and indirectly with an over-allnational growth and its impact as an integral part of regional

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segment of a global banking environment.

Almost every bank and financial institution is involved invarious functions in a day's job and thus requires a highly

effective team and appropriate manpower to run the show.Corporate goals are translated into viable realities andprofits only with human element who play their due role inachieving the desired results.

Thus even the high automation would require proper manbehind the machine to make things happen. This idea hasbeen realized by top managements in progressive banks.

Like many other organized sectors, banking requires a multi

layer manpower for its various requirements of professionalsand support staff. The range may require reasonablyeducated security guards on the one end and a highlyeducated and trained professional as head of corporatefinance at the other.

With liberalization of activities within the banking sector, forexample, more emphasis on consumer and house financeand personal loans, etc. banking has turned itself into a

more market-based business where banks have expandedtheir reach more to customers' door steps in a big waymaking banking more practical. This has further highlightedthe need for proper deployment of man-power to run banksefficiently.

For many years, HRM banks like other institutions have beenhandling this sensitive activity through respective personneldepartments. This means human resources were managedlike other physical assets e.g. pieces of furniture, calculators,equipment and appliances.

Personnel departments were primarily engaged in approvalof leaves, handling of staff loans, issuance of show cause,conducting disciplinary enquiries and termination fromservice.

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Recruitment was a routine function and was done in amechanical way to hire people with specific educationalbackground irrespective of their real value to the institution.

Success stories of large banking companies have beenevident of the fact that HRM is quite different frommanagement of physical assets. Human brain has its ownpeculiar chemistry.

Its strong sensory and decision-making capacity has to begreatly emphasized by the employers. The work forceconstituting all levels of employees are constantly thinking inmany dimensions.

On the one hand it is the assigned duty and task they are toperform and for which they are paid by their employer, onthe other they think of their long run goals and objectives.

By no means, their brains can be controlled to think beyondthe current situation of employment. Managing thiseducated, skillful and trustworthy work force is not an easy

job. A few of the current challenges faced by the banking

industry in terms of human resource management may bethe following:

CHALLENGES FACED BY THE BANKING INDUSTRY INTERMS OF HUMAN RESOURCE MANAGEMENT

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(1). EFFECTIVE WORK FORCE:

A time-consuming and hectic job is to hunt the right talent.Its just sitting by the river and waiting for the right fish tocatch. Higher the professional value of the vacancy, tougheris the search.

Identifying the right stuff followed by negotiation is theelement which makes the job tough for the employer. Banksare keenly interested to fill up two types of breads ofprofessionals.

Ones who are outstanding professionals with high job

hopping attitude - these are those who come in - work forsome time and then leave for better prospects. Others arethose who are keenly picked-up, trained and are some howretained to be developed as future management within thebank.

Management trainees are a growing popular phenomenonwhere freshly qualified business graduates are engaged bybanks and a certain percentage of these well equipped

professionals stay back within the organization to grow intothe footsteps of senior managers.

Banking jobs being apparently lucrative for many, attract alarge number of candidates against advertised vacancies inmedia creating a large data base management problem. Thishas been facilitated by specialised hiring agencies who maytake up the job of hiring in case of large number ofvacancies.

(

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2). RIGHT PEOPLE:

The most difficult agenda of HRM across the banking sectoris to retain the right people. Sudden growth of retail bankingand other services has put pressure on HR mangers in banksto engage more professionals within shorter span of timethereby attracting manpower in other banks on attractivepackages has made the job market very competing.

A bank in a normal course invests time and money to hireand train the appropriate work force for its own operations.

This ready-made force is often identified and subsequentlypicked-up on better terms by others.

(3). COMPENSATION:

How much to pay to the right employee and how much tothe outstanding performer. Banks have traditionally followedpay scales with predetermined increments, salary slabs,bonuses and time-based fringe benefits like car and houseadvance, gratuity, pension, etc.

The situation is not the same anymore. An increment of

Rs500-800 per annum is no more a source of attraction for aprofessional anymore. A basic pay with traditional formulasof linkage with medical and other facilities has no soothingeffect today.

A promise of future growth, learning culture and corporateloyalty is out of dictionary and does not mean anything tothis energetic and competent performer today.

A waiting period of 3-4 years in each cadre haunts theincumbents who strongly believe in immediatecompensation. There are examples to this. Thanks to the carfinancing modalities car is no more a fantasy item any more.

A freshly hired professional requires a brand new car or car

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loan on resuming office quite contrary to his previous breedof bankers who would wait for the job seniority to qualify fora car loan.

(4). JOB SATISFACTION:

Everybody in the bank wants to work in the preferentialdepartment, preferential location, city of his own choice andboss of his liking. An administrative deviation from any ofthese results in lowered job satisfaction.

Although hiring is normally based on regional requirementmatching the area of activity with that of employee's nativityyet other elements like appointment in the department of

choice and preference makes the job of HR manager quitechallenging.

What the HR manger cannot afford is the dissatisfiedemployee who not only disrupts the smooth working himselfbut also spreads the negativity to others by his de-motivatedattitude.

(5). MORALE BOOSTING:

What has long been overlooked is the morale boosting ofthe employees by the organizations. Human beings even ifsatisfied of material well being need to be appraised andencouraged constantly.

Smart banks have realized this need and have taken steps tokeep their work force motivated through properencouragement like man of the month awards, repeat get-

togethers, conferences, sports events, dinners, companysponsored travel, reunions, etc. This is the way employeescreate a feeling of belongingness.

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HRM and HRD

The Human Resources Management (HRM) function includesa variety of activities, and key among them is deciding whatstaffing needs you have and whether to use independentcontractors or hire employees to fill these needs, recruitingand training the best employees, ensuring they are highperformers, dealing with performance issues, and ensuringyour personnel and management practices conform to

various regulations. Activities also include managing yourapproach to employee benefits and compensation, employeerecords and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activitiesthemselves because they can't yet afford part- or full-timehelp. However, they should always ensure that employeeshave -- and are aware of -- personnel policies which conformto current regulations. These policies are often in the form ofemployee manuals, which all employees have.

Note that some people distinguish a difference betweenbetween HRM (a major management activity) and HRD(Human Resource Development, a profession). Those peoplemight include HRM in HRD, explaining that HRD includes thebroader range of activities to develop personnel inside oforganizations, including, eg, career development, training,organization development, etc.

There is a long-standing argument about where HR-related

functions should be organized into large organizations, eg,"should HR be in the Organization Development departmentor the other way around?"

The HRM function and HRD profession have undergonetremendous change over the past 20-30 years. Many years

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ago, large organizations looked to the "PersonnelDepartment," mostly to manage the paperwork aroundhiring and paying people. More recently, organizationsconsider the "HR Department" as playing a major role in

staffing, training and helping to manage people so thatpeople and the organization are performing at maximumcapability in a highly fulfilling manner.

HRM deals with the day to day operations of the humanresources department. This curriculum would include bus.law, compensation, employee relations, benefits, andmedical etc.

HRD : Human Resource Development deals with the training

and the developmental aspect of employees. Most HRDcurriculum include classes like T & D, organizational dev.,industrial psy.

DIFFERENCE OF HRM AND HRD

HRD focuses on training and optimizing work performance.HRM focuses on whom you hire, whom you fire andremediation to employees who need discipline and retoolingto continue their employment.

HRD is more proactive; it copes with the changing needs ofthe people as well as anticipate these needs and HRD isfunction more independent with separate roles to play.

HRD is sub-system of a large system, more organizationaloriented and HRD is function more independent withseparate roles to play.

HRD is developing the whole organization and HRM isconcerned with people only.

HRD is continuous process and HRM is a routine andadministrative function.

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HRD is involvement of the entire work force from top tobottom is more and a must in most of the cases and HRM isbasically the responsibilities of the HR department.

HRM stands for human resources management, which refersto the art of managing all aspects of the human work forceat a company or organization. HRM aims at providing anoptimal working environment for employees to fully andfreely utilize their skills to their best to achieve thecompanys intended output. As human resourcesmanagement usually applies to big companies andorganizations, it has sub categories, among which is HRD,which stands for human resources development. This is acomponent of HRM that focuses on nurturing employees

skills. Because the process of hiring new employees can belong, expensive and cumbersome, most companies employthe strategy of HRD to promote longevity of employeeswithin the company because through this an employee islikely to progressively scale up the managerial ladder.

Human resources management of a company is often anindependent department of its own composed of varioussections including recruitment and retention, performanceand appraisal management, HRD and compensationsections. But HRD does not only focus on development ofskills but also focuses on the personal development ofemployees. Because peoples needs and expectations areever growing and changing this section of HRM is specificallythere to help employees cope with such and prepare themfor future uncertainties.

Generally speaking, professionals working within the HRMdepartment must have excellent people skills although this

is more so with those particularly working in the HRDsection. The HRD section needs to have professionals withimpeccable people management skills as they need to beable to realize talent within people from a cross section ofbackgrounds. The HRD section is concerned with identifyingstrengths and weaknesses among different employees and

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devising training means that aim at making those skillscomplement the other.

HRM stands for human resources management, which refersto the art of managing all aspects of the human work forceat a company or organization. HRM aims at providing anoptimal working environment for employees to fully andfreely utilize their skills to their best to achieve thecompanys intended output. As human resourcesmanagement usually applies to big companies andorganizations, it has sub categories, among which is HRD,which stands for human resources development. This is a

component of HRM that focuses on nurturing employeesskills. Because the process of hiring new employees can belong, expensive and cumbersome, most companies employthe strategy of HRD to promote longevity of employeeswithin the company because through this an employee islikely to progressively scale up the managerial ladder.

Human resources management of a company is often anindependent department of its own composed of varioussections including recruitment and retention, performanceand appraisal management, HRD and compensationsections. But HRD does not only focus on development ofskills but also focuses on the personal development ofemployees. Because peoples needs and expectations areever growing and changing this section of HRM is specificallythere to help employees cope with such and prepare themfor future uncertainties.

Generally speaking, professionals working within the HRM

department must have excellent people skills although thisis more so with those particularly working in the HRDsection. The HRD section needs to have professionals withimpeccable people management skills as they need to beable to realize talent within people from a cross section ofbackgrounds. The HRD section is concerned with identifyingstrengths and weaknesses among different employees and

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devising training means that aim at making those skillscomplement the other.

Hrm in Banking

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