premier bank hr case study

University of Dhaka

Department of Management Studies

MBA (Evening Program) Fall, 2011

A Case Study on

PREMIER BANK OF INDIA

Course Title

Human Resource Management

Course code

Course Teacher

Prof. Dr. ShahidUddin Ahmed

Date

05/12/2011

Submitted by

Name Roll

Muhammad Ashraful Kabir 3-09-17-001

S.K.M. Moklesur Rahman 3-10-19-072

Kazi Mohammad Taslim 3-10-18-045

Akhil Ranjan Tarafder 3-10-18-019

Emdadul Haque 3-09-17-061

Nahid Rijwan 3-09-17-033

Table of Contents

Serial Topic Page no.

CH-1 Study Background 01

Case History 01

Partial Organizational Set-up of Premier Bank 03

Regional Distribution Of Branches 03

Training Center Facilities 04

Courses Organized During 1970-72 04

CH-2 Problem Findings

05

CH-3 Solutions & Analyses 07

Problem About Forecasting Personnel Need 07

Solution to the problem 07

Analysis 10

Problem Regarding Bank Operation & Administration 11


Analysis 11

Problem Regarding Managerial Span Of Control 12


Analysis 13

Problem Regarding Performance Management &

Appraisal

14


Analysis 16

Problem Regarding Training & Development Of

Employees

17

Serial Topic Page No.


Analysis 23

CH-4 Conclusion & Recommendation

Conclusion

Recommendation

25

25

26

BIBLIOGRAPHY 28

1

CH-1: STUDY BACKGROUND

Banks constitute an important segment in financial arena of all countries whether

developed or developing or underdeveloped. Economic development of every country

depends upon financial sector particularly commercial banks. In fact economic

development and financial infrastructure go hand in hand. From time immemorial, the

conventional banker, an indispensable pillar of Indian society, giving and taking of credit

in one form or another, must have existed as earlier as the Vedic period. It is true for all

organization that, development and smooth functionality depends on the proper planning

and implementation of Human Resource. And it is very much true for a financial

organization. “Premier Bank” was one of the prominent Bank of India. Through its

history of establishment and survive many significant points can be illustrated as an

investigating case.

Case History:

The history of modem Indian banking goes back to 1683 when the first Indian Bank was

established on western lines in Madras. The integration of Premier Bank was in 1905 with

its Head Office at Calcutta. The bank had grown steadily over the years. It had become

one of the well-known banks in the country. By the end of 1972, it employed over 15000

persons, Including 3,000 officers in about 620 branches located all over India.

The bank had set up regional offices in a number of large Cities. Of the 620 branches,

about 50 percent had been opened between 1970-72 and the employee strength had

increased by about 2,500 in the same period.

Premier Bank had been nationalized along with 13 other major banks in the country on 19

July, 1969. After this the bank experienced to take immediate action for spreading its

diversity and scopes in different sectors. As an ultimate result, expansion in broad term

appeared as an urgent issue.

Premier Bank had been allotted 24 districts in Punjab, Andhra Pradesh, Maharashtra,

Madhya Pradesh and Uttar Pradesh. The bank was responsible to lead other banks in

those regions for the development of banking sector. For mammoth expansion activities

the bank needed a lot of manpower. It also restructured its strategy of banking. . A large

number of new branch managers, accountants, and technical officers (engineers and

agricultural officers) were recruited.

2

By the end of 1972, the bank changed it concentration from metropolitan Urban to the

Rural and small borrowers. They opened 230 branches in rural area of the 300 branches,

between1970 to 72.

During 1970-72, total number of employees had reached to 15,000. For performance

appraisal employees Premier Bank followed ‘traits-cum-conduct evaluation’ system.

Although the training program initiated only in 1969 after nationalization, the process

was considered impressive. Since a large number of persons had been recruited by

Premier Bank within the last three years, the training activities in the bank had been

considerably strengthened. Most of the officers were recruited by the head office, and

being placed in their assignment were given training in short duration courses in banking

procedures so that they could be effectively utilized on the job as soon as feasible. The

bank had added three new regional training centers to the central training institute

existing in Calcutta.

In order to determine the emphasis and focus of training to be given in various courses, a

central review committee on training had been setup. Finally they had setup a perspective

plan for training.

Different functionalities of Human Resource Management have been come out through

the whole case study. Premier Bank established a strong financial involvement all over

the India settling up many problems raised time to time through their long journey.

Starting from tremendous expansion of overall strategies Planning, Staffing,

Reorganizing, Banking Policy, Forecasting, Recruiting, Performance Appraisal and lastly

Training and Development- all the core functions were firmly correlated through the

whole story. In some portion “Span of Control” problem was also found in the history of

Premier Bank. Situational problems were created time to time but problem on training &

Development found rigidly. Authority of Prime Bank tried to solve their problem in

different ways to reach themselves in a fruitful place.

3

Partial Organizational Set-up of Premier Bank:

Regional Distribution of Branches:

SL. No. Region Areas Covered No. of Branches

1 Head Office All India ---

2 Calcutta Region Calcutta 60

3 Eastern Region West Bengal, Bihar, Orissa,

Assam, Meghalaya

255

4 Central Region Rajasthan, MP 75

5 Northern Region Jammu & Kashmir, Punjab,

Haryana, Uttar Pradesh,

Delhi, Chandigarh

120

6 Western Region Gujarat, Maharashtra 75

7 Southern Region Andhra Pradesh, Tamil Nadu 35

All India 620

Chairman &-

Managing Director

General Manager

Deputy General

Manager

Deputy General

Manager

Various Head Office

Functional

Departments

Regional Managers

Area Managers

Branch Managers

Various Head Office:

Administrative,

Personnel, Planning

and System

Departments

4

Training Center Facilities:

Sl.

No.

Location

Started in

Residential

Room

Available

Classroom

Capacity

Faculty

strength

1 Calcutta January, 1971 70 70 9

2 Madras November, 1971 -- 30 3

3 Delhi February, 1972 -- 30 3

4 Patna March, 1972 -- 30 2

Courses Organized During 1970-72:

At Central Training Institute,

Calcutta

a) Course for Promote Officers

b) Course for Direct Recruit Probationary

Officers

c) Course for Rural Branch Agents

d) Induction Training for Clerks

e) Basic Training for Clerks

At Each Regional Training

Center

a) Course for Promote Officers

b) Induction Training for Clerks

c) Basic Training for Clerks

Total Employees Trained in

(1970-1972)

Officers Clerks

950 1500

Training Cost Incurred

(in Rs. Lakh)

1970 1971 1972

6.8 7.9 8.6

5

CH-2: PROBLEM FINDINGS

1. Problem About Forecasting Personnel Need:

Of the 620 branches, about 50 percent of the branches had been opened between

1970-1972 due to nationalization process and “lead bank scheme” implemented by

the government. As a result of rapid expansion and diversification, the bank had to

recruit large number of people to meet the demand. But the bank had no forecasting of

personnel needs as well as manpower development to take care of the problems

arising out of the growth and diversification process.

2. Problem Regarding Bank Operation & Administration:

Branch managers, area / regional officers etc. were not at all familiar with handling

industrial relations problems as these problems were directly referred to head office in

the past. But it was no longer possible due to geographical expansion and resulted

administrative problems.

3. Problem Regarding Managerial Span of Control:

Within the officer category, they had five hierarchical levels from grade E to grade A

special, and their numbers were 2315, 345, 175, 85, 55, 24 respectively. From grade

D to grade E officers, they had a wide span of control, which resulted in a wider

number of grade E officers under a single grade D officer. This large span in

management was not complied with the company’s large scale geographic expansion

and diversification and rural life penetration.

4. Problem Regarding Performance Management & Appraisal:

Personnel inventory sheets giving qualifications and work experience of each

employee were not maintained. “Traits-cum-conduct evaluation” pattern was

followed by the bank as appraisal system rather than concepts of performance,

budgeting and evaluation.

6

5. Problem Regarding Training & Development of employees:

a) Job Analysis & Regular Training Program: Manpower training and

development program was poor. Most existing employees promoted from clerical

to officer level had no formal training although job contents were different at

different levels.

Moreover, many officers had been posted as branch managers to handle

responsible positions in the newly opened branches only after short training on

banking procedures.

b) Training Facility: Newly recruited employees had to rely on on-the-job training

in order to be familiar with new procedures and specialized schemes because of

inadequate facility of training centers.

c) Job Rotation: Towards achieving rural penetration, the newly opened branches

were dispersed geographically in a large number of backward areas. As the clerks

and subordinate stuffs were recruited locally and regional languages known were

different, resulted low inter-transferability. So the feasibility of job rotation in

between branches was less.

d) Unavailability of Trainer: It was found that many managers were not convinced

of the need and efficacy of training function. As a result, competent people with

an aptitude for teaching were not available since faculty work was considered a

deviation from the normal career path. Because of tremendous spurt in expansion

activities, the right persons were fully stretched and could not be easily spared for

training.

7

CH-3: SOLUTIONS & ANALYSES

1. Problem About Forecasting Personnel Need:

"Of the 620 branches, about 50 percent of the branches had been opened between

1970-1972 due to nationalization process and “lead bank scheme” implemented by

the government. As a result of rapid expansion and diversification, the bank had to

recruit large number of people to meet the demand. But the bank had no forecasting of

personnel needs as well as manpower development to take care of the problems

arising out of the growth and diversification process."

Solution to the Problem:

Premier Bank had to recruit a large number of employees to start operations in more than

300 newly opened branches. This recruitment and selection process should start with

personnel planning and forecasting which involves the following steps. The recruitment

and selection process starts with employment or personnel planning. This is the process of

deciding what positions the firm will have to fill, and how to fill them. Personnel

planning embrace all future positions, from, maintenance clerk to Reemployment

planning should flow from the firms strategic plans. Plans to enter new businesses, build

new plants, or to reduce costs al influence the types of positions the firm will need to fill

or eliminate.

Personnel planning or Succession planning, in either case, employment planning should

flow from the Premier Bank’s strategic plan like opening new branches, geographical

expansion, rural penetration, nationalization etc. The following figure illustrates the need

for linking strategic and personnel planning.

8

Exhibit -1: Linking Employer’s Strategy to Plans

Any of the methods to forecast personnel needs may be used by Premier Bank while the

top management had to consider other factors like projected turnover, financial resources

etc. The most common personnel planning approaches involve the use of simple

techniques like trend analysis and ratio analysis to estimate staffing needs based on sales

projections and historical sales to personnel relationships. The usual process is to forecast

revenues first, and then estimate the size of the staff required to reach the sales volume.

Several techniques used by Human Resource Managers: Some of the simple tools for

forecasting are as follows:

• Trend analysis

o The study of a firm’s past employment needs over a period of years to predict

future needs. Trend Analysis means studying variations in a firm’s

employment levels over the last few years. The purpose is to identify trends

that might continue into the future

9

• Ratio analysis

o Ratio Analysis means making forecast based on the ratio between some causal

factor like sales volume and the number of workers required such as number

of salespeople. Ratio analysis assumes that productivity remains about the

same. If sales productivity were to increase or decrease, the ratio of sales to

salespeople would change.

• Scatter plot

o A graphical method used to help identify the relationship between two

variables. Scatter plot shows how two variables such as a measure of business

activity and firm’s staffing levels are related.

• Computerized forecasts

o The use software packages to determine of future staff needs by projecting

sales, volume of production, and personnel required to maintain a volume of

output.

– Generates figures on average staff levels required to meet product

demands, as well as forecasts for direct labor, indirect staff, and exempt

staff.

– Typical metrics: direct labor hours required to produce one unit of product

(a measure of productivity), and three sales projections—minimum,

maximum, and probable.

• Flow models

o Determine the time that should be covered. Shorter lengths of time are

generally more accurate than longer ones. However, the time horizon depends

on the length of the HR plan which, in turn, is determined by the strategic plan

of the organization.

o Establish categories, also called states, to which employees can be assigned.

These categories must not overlap and must take into account every possible

category to which an individual can be assigned. The number of states can

neither be too large nor too small.

10

o Count annual movements (also called ‘flows’) among states for several time

periods. These states are defined as absorbing (gains or losses to the company)

or non-absorbing (change in position levels or employment status). Losses

include death or disability, absences, resignations and retirements. Gains

include hiring, rehiring, transfer and movement by position level.

o Estimate the probability of transitions from one state to another based on past

trends. Demand is a function of replacing those who make a transition.

Analysis:

In our following case, the Premier Bank of India had opted for geographical expansion

strategy. As mentioned before, any kind of organizational plan should comply with the

organization’s strategic plan. So the bank’s strategic plan of geographic expansion greatly

affected their HR plans.

As we have seen in the previous exhibit, the employers HR plans were followed by the

bank’s strategic plan which resulted and executed in other HR sub plans like Personal

plans, Training & Development plans, Compensation Plans, Labor Relation plans and

Security & Safety Plans.

Now the personnel plans start with the employee planning resulting in the forecasting of

future employee need. The manpower planning department of Premier Bank could have

been used any one kind of four employee forecasting methods as per their convenience.

Here we will consider each method’s validity in respect to the case of Premier Bank,

India.

The Trend Analysis for forecasting demand takes into consideration the previous year’s

employee need and project it in estimating future employee needs. But as the organization

decided strategically to expand its business, the trend analysis could not be able to

properly forecast their actual future employee need.

The time period of our case is during 1970-1972. At that time, the extensive uses of

computerized methods were not really physible. So we can consider the Computerized

Forecast methods irrelevant to our study.

11

To consider Ratio Analysis and Scatter Plots, Ratio Analysis means making forecast

based on the ratio between some causal factors like here in this study the probable future

operating brunches and the number of employees required such as number of branch

managers, officers and clerks. And Scatter plot provides a graphical method to help

identify the relationship between these two variables.

So the Ratio Analysis or Scatter Plot could have been the best choice for Premier Bank’s

manpower planning department in forecasting their future employee need.

2. Problem Regarding Bank Operation & Administration:

"Branch managers, area / regional officers etc. were not at all familiar with handling

industrial relations problems as these problems were directly referred to head office in

the past. But it was no longer possible due to geographical expansion and resulted

administrative problems."

Solution & Analysis of the Problem

Premier Bank had been allotted 24 districts in Punjab, Andhra Pradesh, Maharashtra,

Madhya Pradesh and Uttar Pradesh. The bank was responsible to lead other banks in

those regions for the development of banking sector. The following table exhibits the

brunch allotment in these regions.

SL. No. Region Areas Covered No. of

Branches

1 Head Office All India ---

2 Calcutta Region Calcutta 60

3 Eastern Region West Bengal, Bihar, Orissa, Assam,

Meghalaya

255

4 Central Region Rajasthan, MP 75

5 Northern Region Jammu & Kashmir, Punjab, Haryana,

Uttar Pradesh, Delhi, Chandigarh

120

6 Western Region

7 Southern Region

All India

The bank could have been established a special industrial relation brunch in each of the

24 districts allotted to it. In those branches, they could provide industrial relation banking

and by doing such, they could have been avoided transferring their entir

valued clients to the head office.

3. Problem Regarding Managerial Span of Control:

"Within the officer category, they had five hierarchical levels from grade E to grade

A special, and their numbers were 2315, 345, 175, 85, 55, 24 respectively.

grade D to grade E officers, they had a wide span of control, which resulted in a wider



and diversification and rural life penetration.

Solution to the Problem

Span of Control: The number of employees who can be effectively

supervised by a manager.

12

Western Region Gujarat, Maharashtra

Southern Region Andhra Pradesh, Tamil Nadu

All India


In those branches, they could provide industrial relation banking

y doing such, they could have been avoided transferring their entir

valued clients to the head office.

Problem Regarding Managerial Span of Control:

Within the officer category, they had five hierarchical levels from grade E to grade

A special, and their numbers were 2315, 345, 175, 85, 55, 24 respectively.




diversification and rural life penetration."

to the Problem

The number of employees who can be effectively &

Exhibit: Contrasting Spans of Control

75

35

620


In those branches, they could provide industrial relation banking

y doing such, they could have been avoided transferring their entire industrial

Within the officer category, they had five hierarchical levels from grade E to grade

A special, and their numbers were 2315, 345, 175, 85, 55, 24 respectively. From




efficiently

13

Width of span is affected by:

• Skills and abilities of the manager

• Employee characteristics

• Characteristics of the work being done

• Similarity of tasks

• Complexity of tasks

• Standardization of tasks

Narrow Span Drawbacks:

• Expense of additional layers of management.

• Increased complexity of vertical communication.

• Encouragement of overly tight supervision and discouragement of employee

autonomy.

Analysis

The facts regarding span of control are likely the skills and abilities of the managers and

also the employees. For instance, the more training and experience the employees have,

the less direct supervision they will need. Therefore, the well-trained and experienced

managers can work well with wider span.

But in our case of Premier Bank of India, we found that most of the managers and officers

are not well trained, even some of them did not get any formal training at all. Hence they

opted for wider span at the bottom level of management, though they should have been

followed the narrow span of control. This kind of organizational structure could have

been followed with misadministration.

The HR department could improvise this situation by making uniform distribution of

managers through the levels, or it would be better if they create another management

level within grade D and grade E and. The newly created manager could be designated by

sub-regional or district managers. It could also solve most of the diversification of the

work force related problems.

14

4. Problem Regarding Performance Management & Appraisal:

"Personnel inventory sheets giving qualifications and work experience of each

employee were not maintained. “Traits-cum-conduct evaluation” pattern was

followed by the bank as appraisal system rather than concepts of performance,

budgeting and evaluation."


“Traits-cum-conduct evaluation” pattern was followed by the bank. Performance

appraisal methods should be properly followed by Premier Bank. Appraisals play an

integral role in the employer’s performance management process. It helps in planning for

correcting deficiencies and reinforces things done correctly, in identifying employee

strengths and weaknesses, are useful for career planning and affect the employer’s salary

raise decisions.

Senior Mangers and HR department has big role to play.

� Supervisors

– Usually do the actual appraising.

– Must be familiar with basic appraisal techniques.

– Must understand and avoid problems that can cripple appraisals1.

– Must know how to conduct appraisals fairly.

� HR department

– Serves a policy-making and advisory role.

– Provides advice and assistance regarding the appraisal tool to use.

– Prepares forms and procedures and insists that all departments use them.

– Responsible for training supervisors to improve their appraisal skills.

15

Some Performance Appraisal Methods are as follows:

• Graphic rating scale:

A scale that lists a number of traits and a range of performance for each that is

used to identify the score that best describes an employee’s level of performance

for each trait.

Excellent Good Fair Poor

Quality of Work

Quantity of Work

Creativity

Integrity

Exhibit: A Graphic Rating Scale

• Alternation ranking method:

Ranking employees from best to worst on a particular trait, choosing highest, then

lowest, until all are ranked.

16

• Paired comparison method:

Ranking employees by making a chart of all possible pairs of the employees for

each trait and indicating which is the better employee of the pair.

• Forced distribution method:

Similar to grading on a curve; predetermined percentages of ratees are placed in

various performance categories.

Example:

– 15% high performers

– 20% high-average performers

– 30% average performers

– 20% low-average performers

– 15% low performers

Analysis

As personnel inventory sheets which give qualifications and work experience of each

employee were not maintained in premier bank, they should establish a proper job

description format to come out from this problem.

17

A standard description format may include the following headings:

1. Job Identification: Includes job title, division, department, reports to, location,

date etc.

2. Job summary: Includes only the major functions of the job.

3. Responsibilities: Presents a list of the job’s significant responsibilities & duties.

4. Authority of Incumbent: Refer who to report to.

5. Standards of Performance: Lists of performance standards which employee has

to achieve.

6. Working Conditions: Includes things like noise level, hazardous conditions or

heat.

Appraisals, of course, provide the information upon which promotion and salary

decisions are made and the basis upon which to discuss the employee's performance in

the hopes of reinforcing desirable behaviors and eliminating undesirable ones.

Increasingly HR specialists are emphasizing appraisal's related role as a central player in

what they call performance management.

Performance management may be defined as the whole process impacting how well an

employee performs. Performance management may therefore encompass goal setting,

worker selection and placement, performance appraisal, compensation, training and

development, and career management in other words, all those parts of the HR process

impacting how well an employee performs.

It's therefore useful by emphasizing more closely at appraisal's role as a component in a

company's performance management system.

5. Problem Regarding Training & Development of employees:

a) Job Analysis & Regular Training Program: Manpower training and

development program was poor. Most existing employees promoted from clerical

to officer level had no formal training although job contents were different at

different levels.

Moreover, many officers had been posted as branch managers to handle

responsible positions in the newly opened branches only after short training on

banking procedures.

18

b) Training Facility: Newly recruited employees had to rely on on-the-job training

in order to be familiar with new procedures and specialized schemes because of

inadequate facility of training centers.

c) Job Rotation: Towards achieving rural penetration, the newly opened branches

were dispersed geographically in a large number of backward areas. As the clerks

and subordinate stuffs were recruited locally and regional languages known were

different, resulted low inter-transferability. So the feasibility of job rotation in

between branches was less.

d) Unavailability of Trainer: It was found that many managers were not convinced

of the need and efficacy of training function. As a result, competent people with

an aptitude for teaching were not available since faculty work was considered a

deviation from the normal career path. Because of tremendous spurt in expansion

activities, the right persons were fully stretched and could not be easily spared for

training.


Proper training program should help Premier Bank to get rid of low inter-transferability

problem and help the employees to become familiar with industrial relations problems.

Moreover it helps newly recruited employees to cope with new procedures and

specialized schemes.

Manpower development is the process that helps organizations to provide adequate

human resources to achieve their current and future organizational objectives. Manpower

Planning is the most strategic of all human resource management functions. Planning

defines the sources, number and types of manpower needed to meet future work

requirements. Predetermined strategies to attract and retain the best people are also laid

down. Strategic development and utilization of employees’ capabilities, which yield best

benefits to the company, are designed into the plan.

Manpower training and development will however be examined in the light of training

and development of employees in the organization and its effects on organizational

growth and survival in the industry. Manpower training can be said to mean a system by

which the management of an organization help each staff or individual of the organization

19

to realize his/her potential, develop it and bring it to bear for the growth of the

organization.

Orientation Program:

From the view of Premier Bank, Orientation program is essential for all new employees at

clerical and executive level to let them know about basic information of the bank. Good

employee orientation will ensure that the employees feel motivated and a part of the team

and will make an effort to do their best to help the business achieve its goals. Employee

development is crucial for customer satisfaction, retention, and the growth of the

company.

Businesses have learnt that employee orientation plays a very important role in the

development and performance of an employee. Hence the orientation process must be

carefully planned and executed to ensure that the employee ends up knowing all about

your company, the company profile and its policies, the target goals, the duties and the

role the employee plays in helping the company achieve its objectives.

Once the initial orientation is complete, training is provided to ensure that the new

recruits do their best to accomplish the tasks assigned to them. The objective of the

orientation is to make the employees are completely familiar with all aspects of their

duties. They must be clear about the goals of the company and how they must help the

company achieves its targets.

� Orientation content

– Information on employee benefits

– Personnel policies

– The daily routine

– Company organization and operations

– Safety measures and regulations

– Facilities tour

20

To arrive in a solution, the management of Premier bank must initiate an effective

“Training Needs Assessment” which can be divided in two following major parts:

• Task Analysis: It belongs to assess the new employees’ training needs. It is a

detailed study of the job to determine what specific skills the job requires. Job

description and specifications are important here. These lists the jobs specific

duties & skills, which are the basic reference points in determining the training

required. This training needs analysis can also be done by reviewing

performance standards, performing the job and questioning current job holders

and their supervisors

However, a competency model, a graphic model that gives a precise overview of

the competencies an employee would need to do a job well, can be established in

assisting to assess new employees’ training needs.

• Performance Analysis: It belongs to assess the current employees’ training

needs. Performance analysis is the process of verifying that there is a

performance deficiency and determines whether the employee should correct

those deficiencies through training or some other means like transferring the

employee.

As competent people for teaching were not available and right person were fully stretched

and could not be easily spared for training, the management of premier bank should

implement training program under following methods to carry on both the functional

work and training program.

On-the-job training (OJT):

As it became difficult for Premier Bank to spare competent people for training, it should

rely on On-the-job training (OJT). On-the-job training focuses on the acquisition of skills

within the work environment generally under normal working conditions. Through on-

the-job training, workers acquire both general skills that they can transfer from one job to

another and specific skills that are unique to a particular job. On-the-job training typically

includes verbal and written instruction, demonstration and observation, and hands-on

practice and imitation. In addition, the on-the-job training process involves one

21

employee—usually a supervisor or an experienced employee—passing knowledge and

skills on to a novice employee.

Two different types of on-the-job training are frequently distinguished in the professional

literature: structured (planned) and unstructured (unplanned).

Unstructured is the most common kind and refers to loose on-the-job training programs

that largely involve a novice employee working with an experienced employee, who

serves as a guide or mentor in an observe-and-imitate training process. The new workers

largely learn by trial and error with feedback and suggestions from experienced workers

or supervisors. Unstructured training is designed based on work requirements, not on

imparting job skilled needed by new workers.

In contrast, structured on-the-job training involves a program designed to teach new

workers what they must know and do in order to complete their tasks successfully. On-

the-job training represents a significant investment considering that roughly 30 percent of

a new worker's time is spent in on-the-job training during the first 90 days of

employment, that productivity of experienced workers assigned to train new workers may

decrease during the training period, and that new workers may make expensive mistakes.

Managerial on-the-job and off-the-job training:

A serious problem occurred when it was seen that most existing employees promoted

from clerical to officer level had no formal training although job contents were different

at different levels and many officers had been posted as branch managers to handle

responsible positions in the newly opened branches only after short training on banking

procedures. As a result, Managerial on-the-Job Training and Off-the-Job Management

Training were very much required which includes the following steps:

The main methods of on-the-job training include:

• Demonstration / instruction - showing the trainee how to do the job

• Coaching - a more intensive method of training that involves a close working

relationship between an experienced employee and the trainee

22

• Job rotation - where the trainee is given several jobs in succession, to gain

experience of a wide range of activities (e.g. a graduate management trainee might

spend periods in several different departments)

• Projects - employees join a project team - which gives them exposure to other

parts of the business and allow them to take part in new activities. Most successful

project teams are "multi-disciplinary"

Off-the-Job Management Training and Development Techniques:

• The Case Study Method: All most everyone knows, the case study method

presents a trainee with a written description of an organizational problem. The

person then analyzes the case, diagnoses the problem, and presents his or her

findings and solutions in a discussion with other trainees.

• Outside Seminars: Many companies and universities offer Web based and

traditional management development seminars and conference. For example, the

American Management Association provides thousands of courses in areas

ranging from accounting and controls to assertiveness training, basic financial

skills, information systems, project management, purchasing management, and

total quality management.

• University related programs: Many universities provide executive education ad

continuing education programs in leadership, supervisor, and the like. These can

range one to four day programs to executive development program lasting one to

four months. An increasing number of these are offered online.

• The advanced management program of the Graduate School of business

Administration at Harvard University is one traditional example. A class in this

program consists of experienced managers from the world. It uses cases and

lectures to provide top level management talent with the latest management skills

and with practice analyzing complex organizational problems.

• Role Playing: The aim of role playing is to create a realistic situation and then

have the trainees assume the parts (or roles) of specific persons it that situation.

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• Executive coaches: An outside consultant who questions the executive’s boss,

peers, subordinates, and (sometimes) family in order to identify the executive’s

strengths and weaknesses. Counsels the executive so he or she can capitalize on

those strengths and overcome the weaknesses.

Informal Learning:

This method includes performing employee’s jobs on a daily basis in collaboration with

their colleagues.

Programmed Learning: It is a step-by-step, self learning method by either textbook or

PC or internet, that consists of 3 parts:

- Presenting questions, facts or problems to the learners

- Allowing the person to respond

- Provide feedback on the accuracy of answers.

This method generally presents facts and follow- up questions frame by frame. When the

learner responds, subsequent frames provide feedback on the answers accuracy. What the

next question is often depend on how the learner answers the previous question.

The main advantage of this method is that it reduces training time and facilitates learning

by letting trainees learn at their own pace, get immediate feedback and reduce the risk of

error. However, intelligent tutoring system take programmed learning one step further.

Analysis

All the Training and development related problems could be solved by establishing new

training centers for managers and officers. Of course, we can see from table – 3 of this

case study that, as the workforce was growing to cope with the expansion strategy, the

training cost also were increasing. In 1972, training cost incurred had increased about RS.

2 Lakhs than training cost incurred in 1970.

They had a backlog of stuff to be recruited of 1500 employees at the end of 1972. Also

additional 3500 employees to be recruited to fill up 400 newly opened branches during

the period 1973-1975. This rigorous future employment planning was associated with

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additional financial outlay as well as a larger commitment of time and effort on the

training activity.

Designing a training program entails setting training objectives, working out a training

program budget and deciding the actual content of training. The training budget is the

main factor, because this determines the actual design of training program.

Since the stuffing and training costs were mounting, some of the top level managers were

not convinced of the need and efficacy of training program.

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CH-4: CONCLUSION & RECOMMENDATION

From this study, we can derive a framework of HR activities, and is exhibited as follows-

Functional Plans

Financial

Plans

HR Plans

Training &

Development

Plans

Personnel

Plans

Regular

Formal

Training

On-the-Job

Training

Training

Facility

Informal

Training

Orientation

Personnel

Forecast

Employee

Selection

Plan

Recruitmen

-t Plans

Narrow

Span

Managemen

Special Skill

Managers

(industrial

relations)

Increase in

No. of

Managers

Premier bank’s Strategic

Plan Diversify?

Integrate Vertically?

Geographic Expansion?

Training

Budget

Project Turnover/

Financial Revenue

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From this framework we can see that, Premier bank of India took the strategic plan of

diversification & global expansion which led the organization to reformulate their HR

plans, Financial Plans and Functional plans.

In this case, the HR plans covered two distinct areas which are: Personnel Planning and

Training & Development planning. In personnel planning, more emphasize was on future

employee forecasting. The organization mainly suffered from the training & development

planning, on which we have made several recommendations to improve performance.

Overall, the financial plan practically affects all kind of organizational activities. More to

say, Financial planning greatly affects any strategic change to take place. In our case,

financial plans took two aspects, which are –project turnover to financial revenue ratio

and Training budget. While the last component affected in making decision of personal

plans and functional plans, mean while the training budget directly shaped the actual

aspect of the training and development planning.

Recommendations:

Specific concentration should be paid in HR sectors of Premier bank, which are as

follows:

Personnel Planning & Forecasting

1. Proper Analysis based on reliable data.

2. Suitable Forecasting methods selection.

Recruitment

1. Measuring and using perfect indicators for Recruiting.

2. Effective & Efficient selection.

Operation & Administration

3. Proper distribution of manpower with work diversity

4. Right segmentation of jobs.

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Span of Control

1. Identifying employees’ skills.

2. Setting effective spans of control.

3. Spans may be selected on short time situational demand.

Job Analysis

1. Need proper job Description and Job specification.

2. Setting standard KPIs for Job evaluation.

Performance Appraisal System

1. Preparing Standard Performance Appraisal Tools.

2. Maintaining a Employee activities Database for current and future needs.

3. Consolidate evaluation for performance rating and development.

Training & Development

1. Planning and selecting training program as per employees PMS data.

2. Maintaining quality trainers and training contents.

3. Completion optimum level of training hours for employees.

4. Providing option of Job rotation, on the job training

5. Creating point of failure among employees.

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BIBLIOGRAPHY

Dessler, Gary, Human Resource Management, 12th

Edition, 2011,

Pearson, Prentice Hall, Global Edition

Robbins, Stephen P. & Coulter, Mary, Management, Eighth Edition, 2008-2009

Pearson, Prentice Hall, International Edition

Isern Jennifer, Abrams Julie & Brown Matthew, Training Guide for Microfinance

Institutions

March’ 2008

premier bank hr case study

Documents

Transcript of premier bank hr case study