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
Solution to the problem 11
Analysis 11
Problem Regarding Managerial Span Of Control 12
Solution to the problem 12
Analysis 13
Problem Regarding Performance Management &
Appraisal
14
Solution to the problem 14
Analysis 16
Problem Regarding Training & Development Of
Employees
17
Serial Topic Page No.
Solution to the problem 18
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
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.
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
The bank could have been established a special industrial relation brunch in each of the
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.
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
diversification and rural life penetration."
to the Problem
The number of employees who can be effectively &
Exhibit: Contrasting Spans of Control
75
35
620
The bank could have been established a special industrial relation brunch in each of the
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
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
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."
Solution to the Problem:
“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.
Solution to the Problem:
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
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