INTRODUCTION

Bank is a financial institution that provides banking and other financial services. Currently the term bank
is generally understood as an institution that holds a banking license. Banking licenses are granted by
financial supervision authorities and provide rights to conduct the most fundamental banking services such
as accepting deposits and making loans. There are also financial institutions that provide certain banking
services without meeting the legal definition of a bank, a so called non-bank. Banks are a subset of the
financial services industry. Human resource management (HRM) has long been overlooked in the
corporate sector in the country where a small section, comprising mostly the multi-national companies
was practicing the same. With the growing realization of proper HRM in the corporate sector, it has grown
into an important activity. Now the head of HRM is an important member of the senior teams of any
thriving business. Although the idea is new for many local businesses where entrepreneurs are at the
beginning of the learning curve yet in reality the theme is getting support from the organized entrepreneurs

“A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide
financial services such as wealth management, currency exchange, and safe deposit boxes. There are
several different kinds of banks including retail banks, commercial or corporate banks, and investment
banks.”

In most countries, banks are regulated by the national government of central bank.

 ABOUT THE TOPIC-

HRM Background and Practices

The banking has become a complex activity within the financial market linked directly and indirectly with
an over-all national growth and its impact as an integral part of regional segment of a global banking
environment.

Almost every bank and financial institution is involved in various 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 and profits only with human element that play their due role in achieving the desired
results. Thus even the high automation would require proper man behind the machine to make things
happen. This idea has been realized by top management in progressive banks. Like many other organized
sectors, banking requires multi-layer manpower for its various requirements of professionals and support
staff. The range may require reasonably educated security guards on the one end and a highly educated
and trained professional as head of corporate finance at the other. With liberalization of activities within
the banking sector, for example, more emphasis on consumer and house finance and personal loans, etc.

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banking has turned itself into a more market-based business where banks have expanded their reach more
to customers' door steps in a big way making banking more practical. This has further highlighted the need
for proper deployment of man-power to run banks efficiently. For many years, HRM banks like other
institutions have been handling this sensitive activity through respective personnel departments. This
means human resources were managed like other physical assets e.g. pieces of furniture, calculators,
equipment and appliances. Personnel departments were primarily engaged in approval of leaves, handling
of staff loans, issuance of show cause, conducting disciplinary enquiries and termination from service.
Recruitment was a routine function and was done in a mechanical way to hire people with specific
educational background irrespective of their real value to the institution. Success stories of large banking
companies have been evident of the fact that HRM is quite different from management of physical assets.
Human brain has its own peculiar chemistry.Its strong sensory and decision-making capacity has to be
greatly emphasized by the employers. The work force constituting all levels of employees is constantly
thinking in many dimensions. On the one hand it is the assigned duty and task they are to perform and for
which they are paid by their employer, on the other they think of their long run goals and objectives. By
no means, their brains can be controlled to think beyond the current situation of employment. Managing
this educated, 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 be the following: To make the
Indian Banking System stronger, efficient and low-cost, the creation of fundamentals must include in the
bank‘s operations, strategies and processes: strengthening the prudential norms and market discipline;
adoption of international benchmarks; management of organizational change and consolidation within the
financial system; upgrading the technological infrastructure of the financial system; and human resource
development as the catalyst of the transformation (2002). The Human Resource field in the Banking
Industry is considered as one of the process of discovery and transformation. The field of Human
Resource can be described as emergent and dynamic within the cultural business aspect in a Banking
Industry. The success of today‘s banking business will sparsely depends on the human resources of the
organization, in which plays a crucial role in providing the services needed. The evolution of banking
system in India affected the human resource practices, recruitment and selection practices, and training
system. It is very important that the details of human resource are discussed along with the employees, to
build their own career planning, perceptions and development. The primary strength of the industry is the
human resource that is why the efforts to develop the skills and management are the main subject placed
before the human resource. A major challenge for many banks will be to develop the special competencies
and skills for credit appraisal and risk management. Putting the information technology is a key
contributed in human resource development. Therefore, the HR model of the future will require
professionals to be both driving and anticipating change, understanding the complexities of the new
business environment and forces shaping it.

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HR Practices and Methods

A key focus of the human resource management is highlighted in the role of staffing, performance
management, training and development, and compensation that plays indifferent types of business
strategies. With the acquisition and preparation of human resources, including planning, recruitment,
selection, and training can affect the whole organizational performance. The HR planning, the start of the
strategy, illustrates the process of developing human resource plan. The strengths and weaknesses of
staffing options such as outsourcing, use of contingent workers, and downsizing are involved in planning.
The recruitment process is done strategically to determine the talented employee fit for the position. The
selection process emphasizes the ways in minimizing errors in employee selection and placement to
improve the company‘s competitive position. The selection method standards such as validity and
reliability are utilized. An effective training systems of the manager‘s role in determining employees
readiness for training, creating a positive learning environment, and ensuring the training is used on the
job. Beyond the human resource strategies are the rewarding and compensating that can strengthen or
weaken the employee effectiveness. In order to give recognition and increase motivational levels amongst
the employees, some Banks linked the individual performance in an incentive scheme or for some rewards
that may come into any form. In summary, all of the HRM strategies and function should be aligned to
help the company meet its objectives – as well as focusing on their customers. The best practice approach
assert that certain HR practices are found to consistently lead to higher organizational performance,
independent of an organization‘s stated strategy. The high performance HR practices foster innovation
through the development of innovation values, encouraging of information sharing, goal setting and
appropriate training and development

Rationale of study -

In this report, I have a shown the implication of human resource management in banking sector for
academics purpose.every student is required to work in a selected institution as an intern to enrich the
practical knowledge and experience. After completing the internship, an internship report should be
prepared on the knowledge of internship. For the completion of this internship program I have been placed
in Bank named “ Urban Co-operative Bank “. I decided to work on application of human resource
management in bank.

 Objective of the report:-

Primary objective -

 To know the various HR implication in commercial bank.

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Secondary objective-

 To know the process of selection and recruitment in urban co-operative bank

 To know whether employees are satisfied with their jobs or not
 Training and develop program
 To evaluate the performance of the staff
 To maintain the data base records of the employees
 To review the human resource policies of urban co-operative bank.
 Find out some problems and suggest some solutions to facilitate the future bank administrators

Specific objective -

 To apply theoretical knowledge in practical field

 To develop our skills in the banking sector
 To analyze general practices of bank

 SIGNIFICANCE OF THE STUDY

(1) To create stable labor force:

HRM programs are needed in order to create stable, efficient, skilled and matured manpower required by
an enterprise for the present and future period.

(2) To update the quality of manpower:

HRM activities are needed for updating the quality of manpower as per the growing and changing needs
of an enterprise. This avoids managerial obsolescence. Even the vacancies at higher levels can be filled in
internally due to HRM programs as they provide training and opportunities of self-development to
employees working at lower levels.

(3). To develop strength for survival:

HRM programs are necessary for survival in the present competitive marketing environment. An
enterprise can face market competition only by improving quality, reducing costs and avoiding wastages.
All this is possible through HRM.

(4). To face challenges of technological changes:

Technological changes are taking place rapidly in every area of business. HRM programs are needed in
order to absorb technological changes taking place with speed. In fact, introduction of new technology,
computers, automation, etc. will not be possible unless training is provided to the manpower.
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 (5). To satisfy the demand of self-development of employees:

HRM is needed to meet the needs of employees in regard to self-development and career development
aspirations. Employees demand, training facilities, refresher courses, promotions and transfers, career
guidance, etc. for their self-development. HRM programmes are needed to fulfill self-development and
career development of employees.

(6). To meet future manpower needs:

HRM is needed to meet the future manpower needs of the organization. Executives, managers, supervisors
leave the job or retire due to age factor. Competent juniors must take their positions. HRM is needed in
order to keep ready a team of competent managers as a second line of defence.
(7). To facilitate expansion and diversification:

HRM activities are needed to meet the manpower requirements resulting from expansion and
diversification programmes undertaken at the enterprise level. Attention should be given to HRM much
before the introduction of expansion programme.
(8). To utilize production capacity fully:

HRM is needed in order to use the available production capacity to the optimum level. It provides skilled
manpower for this purpose.

INDUSTRY PROFILE
The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative
banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for
non-agricultural purposes. This distinction does not hold today. These banks were traditional centre around
communities, localities work place groups. They essentially lent to small borrowers and businesses. Today,
their scope of operations has widened considerably.The origins of the urban cooperative banking movement
in India can be traced to the close of nineteenth century when, inspired by the success of the experiments
related to the cooperative movement in Britain and the cooperative credit movement in Germany such
societies were set up in India. Cooperative societies are based on the principles of cooperation, - mutual
help, democratic decision making and open membership. Cooperatives represented a new and alternative
approach to organization as against proprietary firms, partnership firms and joint stock companies which
represent the dominant form of commercial organization

The Beginnings-

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The first known mutual aid society in India was probably the "Anyonya Sehakari Mandali" organized in the
erstwhile princely State of Baroda in 1889 under the guidance of Vitthal Laxman also known as
BhausahebKavthekar. Urban co-operative credit societies, in their formative phase came to be organized on
a community basis to meet the consumption oriented credit needs of their members. Salary earners" societies
inculcating habits of thrift and self help played a significant role in popularizing the movement, especially
amongst the middle class as well as organized labour. From its origins then to today, the thrust of UCBs,
historically, has been to mobilize savings from the middle and low income urban groups and purvey credit to
their members - many of which belonged to weaker sections. The enactment of Cooperative Credit Societies
Act, 1904, however, gave the real impetus to the movement. The first urban cooperative credit society was
registered in Canjeevaram (Kanjivaram) in the erstwhile Madras province in October, 1904. Amongst the
prominent credit societies were the Pioneer Urban in Bombay (November 11, 1905), the No.1 Military
Accounts Mutual Help Co-operative Credit Society in Poona (January 9, 1906). Cosmos in Poona (January
18, 1906), Gokak Urban (February 15, 1906) and Belgaum Pioneer (February 23, 1906) in the Belgaum
district, the Kanakavli-Math Co-operative Credit Society and the Varavade Weavers" Urban Credit Society
(March 13, 1906) in the South Ratnagiri (now Sindhudurg) district. The most prominent amongst the early
credit societies was the Bombay Urban Co-operative Credit Society, sponsored by VithaldasThackersey and
LallubhaiSamaldas established on January 23, 1906.The Cooperative Credit Societies Act, 1904 was
amended in 1912, with a view to broad basing it to enable organization of non-credit societies. The
Maclagan Committee of 1915 was appointed to review their performance and suggest measures for
strengthening them. The committee observed that such institutions were eminently suited to cater to the
needs of the lower and middle income strata of society and would inculcate the principles of banking
amongst the middle classes. The committee also felt that the urban cooperative credit movement was more
viable than agricultural credit societies. The recommendations of the Committee went a long way in
establishing the urban cooperative credit movement in its own right. In the present day context, it is of
interest to recall that during the banking crisis of 1913-14, when no fewer than 57 joint stock banks
collapsed, there was a there was a flight of deposits from joint stock banks to cooperative urban banks.
Maclagan Committee chronicled this event thus:

"As a matter of fact, the crisis had a contrary effect, and in most provinces, there was a movement to
withdraw deposits from non-cooperatives and place them in cooperative institutions, the distinction between
two classes of security being well appreciated and a preference being given to the latter owing partly to the
local character and publicity of cooperative institutions but mainly, we think, to the connection of
Government with Cooperative movement".

Under State Purview-

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The constitutional reforms which led to the passing of the Government of India Act in 1919 transferred the
subject of "Cooperation" from Government of India to the Provincial Governments. The Government of
Bombay passed the first State Cooperative Societies Act in 1925 "which not only gave the movement its size
and shape but was a pace setter of cooperative activities and stressed the basic concept of thrift, self help and
mutual aid." Other States followed. This marked the beginning of the second phase in the history of
Cooperative Credit Institutions.

There was the general realization that urban banks have an important role to play in economic construction.
This was asserted by a host of committees. The Indian Central Banking Enquiry Committee (1931) felt that
urban banks have a duty to help the small business and middle class people. The Mehta-Bhansali Committee
(1939), recommended that those societies which had fulfilled the criteria of banking should be allowed to
work as banks and recommended an Association for these banks. The Co-operative Planning Committee
(1946) went on record to say that urban banks have been the best agencies for small people in whom Joint
stock banks are not generally interested. The Rural Banking Enquiry Committee (1950), impressed by the
low cost of establishment and operations recommended the establishment of such banks even in places
smaller than taluka towns. The first study of Urban Co-operative Banks was taken up by RBI in the year
1958-59. The Report published in 1961 acknowledged the widespread and financially sound framework of
urban co-operative banks; emphasized the need to establish primary urban cooperative banks in new centers
and suggested that State Governments lend active support to their development. In 1963, Varde Committee
recommended that such banks should be organized at all Urban Centre with a population of 1 lakh or more
and not by any single community or caste. The committee introduced the concept of minimum capital
requirement and the criteria of population for defining the urban centre where UCBs were incorporated.

Duality of Control-

However, concerns regarding the professionalism of urban cooperative banks gave rise to the view that they
should be better regulated. Large cooperative banks with paid-up share capital and reserves of Rs.1 lakh
were brought under the preview of the Banking Regulation Act 1949 with effect from 1st March, 1966 and
within the ambit of the Reserve Banks supervision. This marked the beginning of an era of duality of control
over these banks. Banking related functions (viz. licensing, area of operations, interest rates etc.) were to be
governed by RBI and registration, management, audit and liquidation, etc. governed by State Governments
as per the provisions of respective State Acts. In 1968, UCBS were extended the benefits of Deposit
Insurance. Towards the late 1960s there was much debate regarding the promotion of the small scale
industries. UCBs came to be seen as important players in this context. The Working Group on Industrial
Financing through Co-operative Banks, (1968 known as Damry Group) attempted to broaden the scope of
activities of urban co-operative banks by recommending that these banks should finance the small and
cottage industries. This was reiterated by the Banking Commission (1969).The Madhav das Committee
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(1979) evaluated the role played by urban co-operative banks in greater details and drew a roadmap for their
future role recommending support from RBI and Government in the establishment of such banks in
backward areas and prescribing viability standards.

The Hate Working Group (1981) desired better utilization of banks' surplus funds and that the percentage of
the Cash Reserve Ratio (CRR) & the Statutory Liquidity Ratio (SLR) of these banks should be brought at
par with commercial banks, in a phased manner. While the Marathe Committee (1992) redefined the
viability norms and ushered in the era of liberalization, the Madhava Rao Committee (1999) focused on
consolidation, control of sickness, better professional standards in urban co-operative banks and sought to
align the urban banking movement with commercial banks. A feature of the urban banking movement has
been its heterogeneous character and its uneven geographical spread with most banks concentrated in the
states of Gujarat, Karnataka, Maharashtra, and Tamil Nadu. While most banks are unit banks without any
branch network, some of the large banks have established their presence in many states when at their behest
multi-state banking was allowed in 1985. Some of these banks are also Authorised Dealers in Foreign
Exchange

Recent Developments-

Over the years, primary (urban) cooperative banks have registered a significant growth in number, size and
volume of business handled. As on 31st March, 2003 there were 2,104 UCBs of which 56 were scheduled
banks. About 79 percent of these are located in five states, - Andhra Pradesh, Gujarat, Karnataka,
Maharashtra and Tamil Nadu. Recently the problems faced by a few large UCBs have highlighted some of
the difficulties these banks face and policy endeavours are geared to consolidating and strengthening this
sector and improving governance.

The Urban Cooperative Bank Ltd. Bareilly established in year 1996 and registered under UP Cooperative
Society act 1965. Since its establishment, this bank has served the needs of lakhs of customers across
Bareilly and nearby districts. Bank has come a long way since its beginning as a single branch bank to the
10 branch bank spread across three districts of unamely Bareilly, Pilibhit and Shahjahanpur. With its unique
feature of providing 365 days with extended hours of banking services, it has become quite popular among
its customers. What makes our bank different from others is its customer friendly policies and relationship
banking. Taking one more step forward, bank has strongly shown its presence on digital banking platform
by providing mobile banking, POS/Ecomm, Debit card, NACH, Adhaar based payment, NEFT/RTGS
facility to its valuable customers. Bank is providing free accidental insurance coverage to all its customers
including shareholders since its inception. Over the Bank has been fortunate in having the guidance of our
Chief Promoter Mr. Santosh Kumar Gangwar, the honorable Minister of state for Ministry of Labour

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&employment , government of India and hope that it will continue to flourish under his leadership and
directions.

COMPANY PROFILE

HISTORY

The Urban Cooperative Bank Ltd. Bareilly established in year 1996 and registered under UP Cooperative
Society act 1965. Since its establishment, this bank has served the needs of lakhs of customers across
Bareilly and nearby districts. Bank has come a long way since its beginning as a single branch bank to the
10 branch bank spread across three districts of UP namely Bareilly, Pilibhit and Shahjahanpur. With its
unique feature of providing 365 days with extended hours of banking services, it has become quite popular
among its customers. What makes our bank different from others is its customer friendly policies and
relationship banking. Taking one more step forward, bank has strongly shown its presence on digital
banking platform by providing mobile banking, POS/Ecomm, Debit card, NACH, Adhaar based payment,
NEFT/RTGS facility to its valuable customers. Bank is providing free accidental insurance coverage to all
its customers including shareholders since its inception.

Over the Bank has been fortunate in having the guidance of our Chief Promoter Mr. Santosh Kumar
Gangwar, the honorable Minister of state for Ministry of Labour & employment, government of India and
hope that it will continue to flourish under his leadership and directions.

OUR CHIEF PROMOTER

Shri Santosh Kumar Gangwar minister of state(IC) for Ministry of Labour & Employment, Government
of India, is a very practical person and equally capable. He is very sensitive & generous. He is a person
who inspires confidence in others & draws out the trust & best efforts of the team to complete the task
well. He always holds out a helping hand for the people in dire distress. He is humble, patient, determined
& a leader in true aspects.

CHAIRMAN

Smt. Saubhagya Gangwar

VICE CHAIRMAN
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Dr. Pramod Kumar Saxena 

BOARD OF MEMBERS

Shri Banwari Lal

Smt. Mini Oberai

Smt, Rampyari Gangwar

Shri Jayendra pal singh 

Shri Mandeep Singh

Shri Vivek Khandelwal

Shri Virendra Singh Gangwar

Shri Sagar Agarwal

Shri Ashok Kumar

Smt. Sakshi Agarwal

C.E.O./Secretary

Shri Sripal Kashyap

VISION

To be recognized as one of the most sound, capitalized and principled Bank that leads with integrity, build
relationships and create opportunities to win as a passionate team.

MISSION

To Live up to the Motto of “Banking to all” in word and spirit. To develop lasting relationship with our
customers by providing them quality service in an environment of trust and respect.

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CORE VALUES:

• Put their customers first

• Emphasize on professional ethics

• Maintain quality at all levels.

• Believe in being a responsible corporate citizen

• Say what they believe in.

• Foster participative management.

DEFINITIONS OF URBAN COOPERATIVE BANKS -

The definitions of Urban Cooperative Banks given by different individuals and committees are given below.
In general Urban Cooperative Bank can be defined as, “A voluntary association of individuals with
unrestricted membership and collectively owned resources formed by small businessman, professionals
and / or wage earners, conducted on a democratic basis under joint management and for mutual service by
accumulating the savings of the members and granting them credit on easy terms of interest and repayment,
surpluses being placed to reserves or distributed between depositors and shareholders, the association also
using the joint responsibility of its members as a security for loans obtained for its members from outside
sources” The Mehta Bhansali Committee (1939) defined Urban Cooperative Banks, as “All Urban Credit
Societies having paid-up share capital of Rupees 20000/- and over and accepting deposits of money on
current account or otherwise subject to withdrawal by cheque, draft or order, come within the category of
urban cooperative banks”. Madhav Das Committee has defined urban cooperative banks as “a Primary
Cooperative Bank and is defined a cooperative society other than the Primary Agricultural Credit Society”,
having:-

a. The paid-up share capital and reserves of which are not less than Rs. One Lakh and

b. The bye laws which do not permit admission of any other cooperative society as a member. The
category of Primary Cooperative Banks also includes salary earner’s societies having paid-up share
capital and reserves of Rs. 1/- Lakh or more and the bye-laws of which provide for acceptance of
deposits from non-members”. The Cooperative Planning Committee (1946) has defined Urban
Cooperative Banks “Urban banks receiving deposits on current account should have Paid –up share
capital of at least Rs. 20000/- ii) Maintain fluid resources on the scale prescribed by the Registrar of
Cooperative Societies; and iii) Carry to the reserve fund at least one third (1/3) of their net profits till it
equals the paid-up capital and thereafter one fourth (1/4) of the net profits. The reserve fund should be

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invested in gilt-edged securities or deposited in banks approved by the Registrar and should not be used
for the business of the bank”.

SALIENT FEATURES OF URBAN COOPERATIVE BANKS:

It is quiet difficult to project a clear picture of urban cooperative banks in India, when we go through the
above taken definitions of urban banks. So to solve this difficulty, some important features of
theseurban cooperative banks are listed below:-

a) Voluntary Association and Open Membership:

Membership of Urban Cooperative Banks shall be voluntary and available throughout the life of it
without artificial restriction or any social, political, racial or religious discrimination to all persons who
can make use of its services and are willing to all persons who can make use of its services and are
willing to accept the responsibilities of membership.

b) Formation, Registration and Licensing:

Urban Cooperative Banks are formed according to cooperative societies act on filing bye-laws and
registered with registrar of cooperatives. To cooperative banking business in India, it has to obtain
license from RBI under section 22 of Banking Regulation Act, 1949.

c) Domestic Control:

The members elect the Managing Committee by exercising ‘One man,one vote’ in general meeting.
Managing Committee consisting of honorary service minded people to carry on banking operations on
domestic principles.

d) Mutual Benefit:

Urban Cooperative Banks are formed to carry on banking business, with a view to provide mutual
benefit to their members at low cost to uplift economically weaker sections of society without any
outside aid.

e) Privileges:

They enjoy privileges like higher rate of interest on deposit, lower lending rates, exemption from
payment of interest tax and tax on profits, lesser cash reserve ratios and statutory liquidity ratios etc.

f) Initial Share Capital and Membership:

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 To establish new Urban Cooperative Bank it should have minimum Rs.5/- Lakh to 30/- Lakhs of share
capital and minimum 500 to 2000 members depending on the place of its establishment.

g) Dual Control:

They are subject to dual control of the Registrar of Cooperative Societies at the level and RBI at the
national level.

OBJECTIVES AND FUNCTIONS OF URBAN COOPERATIVE

The main objectives of Urban Cooperative Banks are:-

 To attract deposits from members as well as non-members.

 To advance loans to members.
 To collect bills, cheques, issue drafts and provide banking services.
 To arrange for safe custody of valuable documents of members.
 To promote thrift, saving and self and mutual help among the members.

In Scheduled Urban Cooperative Banks like, Bombay Mercantile Cooperative Bank and Cosmos
Cooperative Bank, the following objects are also included in their byelaws:

1. To buy and to sell foreign exchange including foreign bank notes.

2. To grant and issue letters of credit.

3. To carry on and to transact every kind of guarantee and indemnity business on behalf of constituents.

4. To enter into consortium finance arrangements with any other bank or financial institutions with the
object of marketing loans and advances.

ORGANIZATION STRUCTURE OF URBAN COOPERATIVE BANKS.

The management of Urban, Cooperative Banks is vested with the Board of Directors elected by the general
body. According to the State Cooperatives Societies Act, the ultimate authority of cooperative society is
general body. Even urban banks have to convene the general body once in a year to take major decisions for
amendment of bye-laws, approval of net profit etc. The elected directors of general body form the board of
management. The day-to-day administration of the bank is vested in the hands of Board of Management
such as sanction of loan is taken care by the board with the support of general manager assistant general

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manager, managers, senior officers and other staff. The directors are expected to posse’s qualities of
leadership and ability to guide the bank on sound lines. They are represented by all sections of urban elite.
Enlightened persons like Lawyers, Doctors, Engineers, Chartered Accountants and Business Experts find
place in the board of management of the urban banks. Cordial relations should exist among staff and
management members in the cooperatives. A Chairman and Vice chairman are to be elected from elected
directors.

The representatives for women and SC/ST are also elected by creating reservation system as per the Act and
by laws. The members of an urban bank are composed of traders, artisans and salary earners. The liability of
the member is limited to share capital subscribed by him

the following chart shows the orgnizational set up of Urban co-operative bank.

The below mentioned organization set-up indicates both the elected board and paid staff of big urban
banks. Small urban banks situated in small town, urban and semi urban areas normally have general
manager, managers, accountants, cashier, senior clerks and junior clerks. A few assistant managers are

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 also appointed both in head office and branch.

Products and services:

• Deposit Account

• Saving deposit

• Short term deposit

• Fixed deposit

Investment Schemes:

• Import finance

• Underwriting & bridge financing

• Export finance

• Working capital finance

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 • Trade finance

• Industrial finance

Computer Services:

• SMS banking services

• Online service

• One stop service

• Any branch banking

• Integrated system

• Signature verification

Corporate Social Responsibility:

CSR is a way for companies to benefit themselves while also benefiting society. According to Urban Co
Operative Bank they have a long history of association in different types of CSR activities. And the
practices are done in a formal structured manner. They want to help disadvantaged population of our
country by taking social responsible initiatives. They are concerned about all shareholders, admiration
for human beings and for atmosphere, respect for environment and disseminate information on CSR
policy, ethical functioning and respect for employee’s rights and welfare. Participation in social
enhancement, culture, healthiness, games, environment etc are also done by Urban Co Operative Bank.

TRADE PROFILE

Urban Co-operative Bank Ltd. Bareilly is a fast Growing Co-operative Bank. The Minimum standards
decided by RBI for Urban Co-operative Banks to become viable were fulfilled in just Six months after
establishment of the Bank. Number of members, Share Capital, Deposit and working capital are increasing
day by day. The audit of the bank is done by the Auditor from the panel of charted accountant decided
by RBI and Registrar of Co-operative Societies UP. Auditors has granted "A" category to the
bank which reflects the the soundness of the bank in terms of financial parameters.

Most Progressive Urban Co-operative bank in Northern India which provide 365 days services to its
customers & free accidental insurance coverage to all its share holders, depositors & borrowers
The bank was established in 1996 with an initial working capital of Rs. 16.01 Lacs with only one branch at
Macnair Road Bareilly,which stood at Rs. 566.34 Lacs as on 31.03.2014
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 . Products and services:

• Deposit Account

• Saving deposit

• Short term deposit

• Fixed deposit

Investment Schemes:

• Import finance

• Underwriting & bridge financing

• Export finance

• Working capital finance

• Trade finance

• Industrial finance

Computer Services:

• SMS banking services

• Online service

• One stop service

• Any branch banking

• Integrated system

• Signature verification

Know

HUMAN RESOURCE MANAGEMENT

Human Resource Management or Personnel management is the activity of managing personnel,

usually employees. In any organization, managing personnel is the process of making sure the
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 employees (not the customers) are as productive as they can be. This can include hiring, firing, or
transferring people to/from jobs they can do most productively. This subject is a major at many
universities, or a minor in the business school. It is also known as personnel administration, which is
functionally an equivalent term.

Meaning of Human Resource Management:

A business unit needs employees to look after different activities. This is called manpower or human
resource. Such human resource needs to be developed fully so that it will make positive contribution
for the progress and prosperity of a business unit. For this systematic development and management of
human resources is necessary. Human Resource Management (HRM) deals with:

(a) Training

(b) Self-development
(c) Promotions
(d) Performance appraisal of manpower recruited in an organization

HRM is an organized learning experience aimed at matching the organizational need for career growth
and development. It is a process involving series of learning activities designed to acquire desired level
of competence among employees. HRM is a continuous process and it needs money. Such investment
creates a team of efficient, skilled and trained manpower which brings success and stability to a business
unit. HRM programmes offer long term benefits to an organization.

Characteristics of Human Resource Management:

HRM is an organized learning experience aimed at matching the organizational need for career growth
and development. It is a process involving series of learning activities designed to acquire desired level
of competence among employees. HRM is a continuous process and it needs money. Such investment
creates a team of efficient, skilled and trained manpower which brings success and stability to a business
unit. HRM programmes offer long term benefits to an organization.

Characteristics of Human Resource Management:

(1). Upgrading Manpower:

HRM is basically concerned with the upgrading of manpower working in an organization. This leads to
improvement in the individual performance of an employee and also corresponding improvement in the
organizational performance.

(2). Stress on Training:

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

(3). Attention to learning and career development:

Learning, self-development, career developments are possible through HRM programmes. These are
the core areas of HRM. Career development is possible through joining training courses, reading books
and periodicals. Learning and career development raise the capacity of employees to work at highest
levels. They are given higher positions with monetary benefits.

(4). Organizational Development:

HRM includes organizational development, which includes effective communication within the
organization, coordination of different activities elimination of conflicts of different types and creation
of orderly atmosphere in the whole organization

(5). Team Spirit:

HRM is basically for developing team spirit in the whole organization. For this, departments and levels
of management are properly integrated. Team spirit facilitates orderly growth of the organization in the
right direction

(6). Huge spending by Management:

All companies invest huge money on HRM activities but such expenditure is absolutely essential for
survival in the present competitive business world. HRM programmes create matured, skilled and
efficient manpower, which is a valuable asset of a business unit.

(7). Termination of Employment:

Termination is an unpleasant part of any manager‘s job. Employees occasionally must be terminated for
breaking rules of failing to perform adequately.

(8). Continuous Activity:

HRM is rightly treated as a continuous activity due to new developments taking place regularly in the
business world. For this, on the job and off the job training programmes are introduced from time-to-
time.

(9). Wide Scope:

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

Need and Importance of Human Resource Management:

(1). To create stable labor 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.

(2). To update the quality of manpower:

HRM activities are needed for updating the quality of manpower as per the growing and changing needs
of an enterprise. This avoids managerial obsolescence. Even the vacancies at higher levels can be filled
in internally due to HRM programmes as they provide training and opportunities of self-development to
employees working at lower levels.

(3). To develop strength for survival:

HRM programmes are necessary for survival in the present competitive marketing environment. An
enterprise can face market competition only by improving quality, reducing costs and avoiding
wastages. All this is possible through HRM.

(4). To face challenges of technological changes:Technological changes are taking place rapidly in
every area of business. HRM programmes are needed in order to absorb technological changes taking
place with speed. In fact, introduction of new technology, computers, automation, etc. will not be
possible unless training is provided to the manpower.

(5). To satisfy the demand of self-development of employees:

HRM is needed to meet the needs of employees in regard to self-development and career development
aspirations. Employees demand, training facilities, refresher courses, promotions and transfers, career
guidance, etc. for their self-development. HRM programmes are needed to fulfill self-development and
career development of employees.

(6). To meet future manpower needs:

HRM is needed to meet the future manpower needs of the organization. Executives, managers,
supervisors leave the job or retire due to age factor. Competent juniors must take their positions. HRM
is needed in order to keep ready a team of competent managers as a second line of defence.

20
 (7). To facilitate expansion and diversification:

HRM activities are needed to meet the manpower requirements resulting from expansion and
diversification programmes undertaken at the enterprise level. Attention should be given to HRM much
before the introduction of expansion programme.

(8). To utilize production capacity fully:

HRM is needed in order to use the available production capacity to the optimum level. It provides
skilled manpower for this purpose.

JOB ANALYSIS JOB DESIGN AND JOB EVALUATION -

A job is defined as a collection of duties and responsibilities which are given together to an individual
employee. Job analysis is the process of studying and collecting information relating to operations and
responsibilities of a specific job. It can be explained with the help of the following diagram

Job analysis

 Job description Job specification

 Job title/ name of the job Qualification
 Working hours qualities
 Duties and responsibilities Experience
 Working conditions Family background
 Salary and incentives Training
 Machines to be handled on the job Interpersonal skills

As mentioned in the above table job analysis is divided into 2 parts

a) Job description

Where the details regarding the job are given.

b) Job specification

Where we explain the qualities required by people applying for the job.

Need/importance/purpose/benefits of job analysis: - A job is defined as a collection of duties

and responsibilities which are given together to an individual employee. Job analysis is the process of
studying and collecting information relating to operations and responsibilities of a specific job

The following are the benefits of job analysis.

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1. Organizational structure and design: -
Job analysis helps the organization to make suitable changes in the organizational structure, so that it
matches the needs and requirements of the organization. Duties are either added or deleted from the
job.

2. Recruitment and selection: -

Job analysis helps to plan for the future human resource. It helps to recruit and select the right kind of
people. It provides information necessary to select the right person.

3. Performance appraisal and training/development: -

Based on the job requirements identified in the job analysis, the company decides a training program.
Training is given in those areas which will help to improve the performance on the job. Similarly when
appraisal is conducted we check whether the employee is able to work in a manner in which we require
him to do the job.

4. Job evaluation: -Job evaluation refers to studying in detail the job performance by all individual. The
difficulty levels, skills required and on that basis the salary is fixed. Information regarding qualities
required, skilled levels, difficulty levels is obtained from job analysis.

5. Promotions and transfer: - When we give a promotion to an employee we need to promote him on
the basis of the skill and talent required for the future job. Similarly when we transfer an employee to
another branch the job must be very similar to what he has done before. To take these decisions we
collect information from job analysis.

6. Career path planning: - Many companies have not taken up career planning for their employees.
This is done to prevent the employee from leaving the company. When we plan the future career of the
employee, information will be collected from job analysis. Hence job analysis becomes important or
advantageous.

7. Labour relations: - When companies plan to add extra duties or delete certain duties from a job, they
require the help of job analysis, when this activity is systematically done using job analysis the number
of problems with union members reduce and labour relations improve.

8. Health and safety: - Most companies prepare their own health and safety, plans and programs based
on job analysis. From the job Analysis Company identifies the risk factor on the job and based on the risk
factor safety equipment‘s are provided.

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9. Acceptance of job offer: - When a person is given an offer/appointment letter the duties to be
performed by him are clearly mentioned in it, this information is collected from job analysis, which is
why job analysis becomes important.

Job design

Definitions: - Job design is the process of

a) Deciding the contents of the job.

b) Deciding methods to carry out the job.

c) Deciding the relationship which exists in the organization.

Job analysis helps to develop job design and job design matches the requirements of the job with the
human qualities required to do the job.

Factors affecting job design: -

There are various factors which affect job design in the company. Factors affecting job design

1. Organizational factors

2. Environmental factors

3. Behavioural factors

I] Organizational factors: -

Organizational factors to refer to factors inside the organization which affect job design they are

a) Task characteristics- Task characteristics refer to features of the job that is depending on the type
of job and the duties involved in it the organization will decide, how the job design must be done. In
case the company is not in a position to appoint many people; a single job may have many duties and
vice versa.

b) The process or flow of work in the organization- There is a certain order in which jobs are
performed in the company. In case the company wishes it could combine similar job and give it to
one person this can be done if all the jobs come one after the other in a sequence.

c) Ergonomics- Ergonomics refers to matching the job with physical ability and characteristics of the
individual and in providing an office environment which will help the person to complete the jobs
faster and in a comfortable manner.

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 d) Work practices- Every organization has different work practices. Although the job may be the
same the method of doing the job differs from company to company. This is called work practice and
it affects job design.

II] Environmental factors: - Environmental factors which affect job design are as follows

a) Employee availability and ability: - Certain countries face the problem of lack of skilled labour.
They are not able to get employees with specific education levels for jobs and have to depend on
other countries due to this job design gets affected.

b) Social and cultural expectations: - The social and cultural conditions of every country is different
so when an MNC appoints an Indian it has to take into account like festivals, auspicious time,
inauspicious time, etc. to suit the Indian conditions. This applies to every country and therefore job
design will change accordingly.

III] Behavioral factors: - Job design is affected by behavioral factors also. These factors are-

a) Feedback: -

Job design is normally prepared on the basis of job analysis and job analysis requires employee
feedback based on this employee feedback all other activities take place. Many employees are
however not interested in providing a true feedback because of fear and insecurity. This in turn
affects job deign.

b) Autonomy: -

Every worker desires a certain level of freedom to his job effectively. This is called autonomy. Thus
when we prepare a job design we must see to it that certain amount of autonomy is provided to the
worker so that he carries his job effectively.

c) Variety: -

When the same job is repeated again and again it leads to burden and monotony. This leads to lack of
interest and carelessness on the job. Therefore, while preparing job design certain amount of variety
must be provided to keep the person interested in the job.

Human Resource Planning

This is the process which assures the organization that it will have adequate number of qualified
persons, at requisite times, performing in a way to satisfy the needs of the organization & also
provide satisfaction to the individual employee, so employed.

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The process involves:

a) Estimating the present & future requirements of human resources based on objectives &long
range plans of the organization.

b) Calculation of net human resource requirements based on the present availability of human
resources.

c) Taking suitable steps to identify, mould, change & develop the strength of existing employees so
as to meet the future requirements.

d) Preparation of action plans to acquire the balance human resources from outside the organization
& to develop the existing employees.

Recruitment:

It is the process of searching for future employees (requirement) & ensuring they apply for jobs in
the organization.

It involves:

a) Identification of existing sources of candidates & developing them.

b) Seeking out & identifying new sources of applicants.

c) Motivating the right type of candidates to apply for jobs in the organization.

d) Ensuring a healthy balance between internal & external sources.

Selection: -

It is the process of ascertaining the qualifications, experience, skill, Knowledge, etc. of an applicant
to ascertain his/her suitability for the job applied.

This includes:

a) Developing application blanks.

b) Creating & developing valid & reliable testing techniques.

c) Formulating interviewing techniques.

d) Checking of references.

e) Setting up for medical examination policy & procedure.

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 f) Line Managers to be involved in the decision making.

g) Sending letters of appointment.

h) Employing the selected candidates when he reports for duty.

Placement:

it is a process of allotting to the selected candidate the most suitable job, as per the job requirements
& employee specifications.

This function includes:

a) Counseling the concerned managers regarding the placements.

b) Overseeing the follow-up studies, employee performance appraisal to monitor employee

adjustment to the job, in the coming days.

c) Correcting wrong/misjudged placements if any

Induction & Orientation:

These are procedures by which a new employee is rehabilitated in the new surroundings &
introduced to the practices, procedures, policies, people, etc. of the organization.

It includes:

a) Familiarizing the employee with company philosophy, objectives, policies, career planning &
development, company product, market share, history, culture, etc.

b) Introduce new employee to the people—his colleagues, supervisors & subordinates.

c) Mould the employees by orientation methods to the new working conditions.

Human Resource Development

This process involves improving, moulding, & developing the skills, knowledge, creativity, attitude,
aptitude, values, commitment, etc. based on the present & future job & company requirements.

1. Performance Appraisal:

It is the continuous & systematic evaluation of individual employees with respect to their
performance & their potential for future development. It includes:

a) Enunciating policies, procedures & techniques.

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 b) Assisting functional managers.

c) Reviewing & summarizing reports.

d) Evaluating the effectiveness of various programmes.

2. Training:

It is the process of transmitting the employees the technical & operating skills and knowledge.

It includes:

a) Identification of training needs of the individuals & for the organization.

b) Developing appropriate training programmers.

c) Assisting & advising the management in the conduct of training programmes.

d) Transmitting requisite job skills & job knowledge to the employees.

e) Asses the effectiveness of the training programmes.

Management Development:

It is the process of designing & conducting appropriate executive development programmesso as to

develop the managerial & human relations skills of the employees.

It includes:

a) Identification of the areas in which management development is needed.

b) Conducting development programmers.

c) Motivating executives/managers.

d) Designing special development programmers/ assessment procedures for promotions.

e) Utilizing the services of specialists-both internal & external for development &/or Institutional
(external) development programs.

f) Evaluating the effectiveness of executive development programs.

Career Planning & Development:

It is the planning of one‘s career & implementation of career plans by means of education, training,
job search & acquiring of work experience.
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 It includes:

A. Internal mobility

Vertical, horizontal transfers, promotions and demotion.

B. Transfer

Process of placing employees in the same level jobs where they can be utilized more effectively as
per the needs of the organization. This also means developing transfer policies, offering assistance &
guidance to employees under transfer orders & evaluating transfer policy periodically.

C. Promotion

It deals with the upward assignment of employees to occupy higher positions (with better status &
pay) in consonance with resources of employees & job requirement. The department must ensure
that:

 Equitable, fair & consistent promotions are formulated & administered.

 Managers & employees are given assistance & guidance on the subject of promotion.

 Executions of promotional policies are as per policies & procedures

D. Demotion

It is the downward assignment of an employee in an organization.

The department must ensure that:

 Equitable, fair & consistent demotion policies are drawn up.

 Assisting & advising employees regarding demotions.

 Ensure fair implementation of demotion Policies & Procedures.

Organizational Development: The planned process drawn up to improve organizational effectiveness

through changes in individual & group behavior, culture & systems of the organization drawing models
from applied behavioral science.

COMPENSATION MANAGEMENT

Compensation

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 Compensation includes all the extrinsic rewards that an employee receives during and after the
cource of his job For this contributions to the organization. The principles of compensation payment
are that it has to be adequate, equitable and fair to the employee. Compensation encompasses base
salary, incentives, bonus and benefits and is based on job evaluation.

Job evaluation

It is a systematic determination of the value of each job in relation to other jobs in the organization,
in the industry and in the market. In other words, job evaluation involves classifying a job based on
its importance and its contribution to the organization and its requirements. It involves 
Identifying/designing suitable job evaluation techniques;  Evaluating various jobs;  Ascertaining
the relative worth of jobs in various categories.

Wage and salary administration –

The process of formulating and operating a suitable wage and salary administration program is known
as wage and salary administration.

It includes:

 Conducting wage and salary survey in the market and in the industry
 Determining wage and salary rates on the basis of various factors like law, equity, fairness and
performance
 Implementing wage and salary administration programs

Incentives _ Incentives are the rewards an employee earns in addition to regular wages or salary
based on the performance of the individual, the team or the organization.

Bonus — Bonus is primarily a share in the surplus or bounty and is directly related to the
organization ‘s performance. In India, the payment of bonus is a very popular means of rewarding
employees and is governed by The Payment of Bonus Act 1965.

Fringe benefits — Fringe benefits are those monetary and non-monetary benefits given to employees
during their employment, and sometimes, in the post-employment period also. These benefits are
connected to employment with the organization and are not related to the employee ‘s performance.
These benefits provide a sense of security to the employee and keep them committed to the
organization. Some of the marginal benefits include: -

 Disablement benefits
 Housing facilities

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  Canteen facilities
 Conveyance facilities
 Educational facilities for employees and their children
 Credit facilities
 Recreational facilities
 Medical and welfare facilities
 Post-retirement benefits
 Company stores
 Legal aid

Compensations and Benefits:

Bank provide compensations to its employees in shape of Cost of any medical Treatment, Cancelled
Holidays fees, Repair of vehicle, any injury while doing job tasks and some other. Employees can
claim their compensation if any above case occurs. Benefits which are provided by Banks are Paid
time off, Retirement, Disability Insurance, Education and training programs. In Paid time off benefits
the employee is paid for the time he don‘t worked duo to vacation, holiday pay and sick pay.
Retirement benefits are in shape of pension, gratuity, provident fund and superannuation fund. In
disability insurance bank provides financial support when an employee becomes injured or ill and is
unable to do his/her job and in education & training programs bank provide different education &
training to their employees to furbish their skill.

Human Relations
Administering various human resources policies like employment development & compensation &
interactions among the employees on one hand & employees & the management on the other, create a
sense of working relationships between workers & management & trade unions.
Basically they are all interactions between human beings. Human relations, is therefore, is an
important area in management which integrates people into work situations in a way that motivates
people to work together with economic, psychological & social satisfaction thereby increasing their
productivity. Hence Human Resources Management functions will center on:
1. Understanding perception, personality, learning, intra &inter personal relations, inter & intra group
relations.

2. Motivating all employees.

3. Promoting employee morale.

4. Developing communication skills.

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5. Developing leadership skills.
6. Redressing satisfactorily through a well-defined grievance procedure.
7. Handling disciplinary cases by established disciplinary procedures & in all fairness.

8. Providing adequate counseling to solve employees personal, work & family problems, thereby
releasing their stress & strain.

HUMAN RESOURCE MANAGEMENT IN BANKS

The classification of the Indian banks into broad groups such as public sector, old private sector, new
private sector, foreign, regional rural banks & cooperatives are largely on the basis of ownership
pattern. It is also well known that the business mix, delivery channels & IT strategies of these
organizations vary substantially. What is little known but of greater importance is that each of these
banks follows very distinct HR practices which have contributed, substantially, to the business
processes.

HRM in Cooperative Banks

It is sad that the HR policies of cooperative banks are totally dominated by the Registrar of
Cooperatives. This is, perhaps, one reason why the cooperatives are unable to improve themselves.

HRM in Regional Rural Banks (RRBs)

As regards RRBs, most of them adopt the HR policies of sponsor banks, which are not appropriate
for their special nature.

HRM in Public Sector Banks

In the recent times, the contours of HR function in public sector banks are slowly but definitely
changing. One could say that these banks are discovering the HR function & it is hoped that these
banks will fast catch up with others. It may be recalled that, in a controlled environment & to meet
with the rapid branch expansion since 70’s Public Sector Banks (PSBs) have adopted HRM practices
similar to that of Government departments. Herein HRM did not have a direct role in business
development but was more concerned with centralized recruitment to staff & providing them across
the country

HRM in Private Banks & Foreign Banks

The HR function as practiced by private & foreign banks is effectively involved in the identification
of specific skills that each job warrants & recruiting suitable staff by every way possible. In these
banks, recruitment is a continuous process with a strong focus on getting the right person for the right
31
job by offering appropriate compensation, incentives & designations. There is a great energy spent in
keeping the turnover low & offering appropriate training inputs. Possibly there are as many pay
structures as there are employees. More importantly, HRM has a role in monitoring & mentoring the
employee. There are no routine transfers. Rather people are recruited in different geographical
locations & different levels. Technology has helped in centralizing the back office & other functions
such that service can be provided from a distance. These institutions adopt a proactive performance
appraisal system but still short of 360 Degree appraisals. Their training process is concerned with both
skill building & motivating. It should, however be said that the demand for professionals on account
of growth of Indian Business is such that the efforts of HRM have not helped it from completely
staving off staff turnover in the ranks.

HRM in Public Sector Unit Banks (PSU Banks)

In the case4 of PSU Banks the recruitment process is annual & large scale. People are recruited at the
lowest grade & promoted I due course. This makes the career path of each employee the responsibility
of the organization. This also underlies a belief that anyone can occupy any desk. In such a system
specialization is the loser. Recruitment at higher levels is a recent phenomenon & more an exception
than rule. Pay packets are uniform for a grade/level with annual increments & uniform perquisites.
Increments are earned automatically. Transfers are not driven by business requirements but a matter of
routine. Vacancies get created as & when people move up. It is not uncommon to see new
department‘s spring up just to allow promotions. In a way such a move is justified as salary is linked
to grades & not performance. The concept of job rotation is practiced with great conviction. As regard
leave it is seen that modern business organizations, driven by work life balance issues & operational
risk‘ ensure that certain annual leave is mandatory.

Responsibilities of the Human Resource Management Department in Banks

Role:
The role of the Human Resource Department is to create the climate & conditions in which
management throughout the Bank will be enabled to optimise the individual & collective contribution
of all employees to the short & long-term success of the Bank.
Responsibilities:
 To be the principal sponsor & ―guardian‖ of HR policies in the Bank.
 To propose & obtain agreement on changes to these policies from time to time & to ensure that
policies which have been agreed are being implemented throughout the Bank.

32
  To contribute fully to the task of meeting the business challenges which the bank has to face by
supporting Branch/Unit Managers in continuously developing the potential of employees & in
creating conditions in which
 all the employees are motivated to meet the objectives of the Bank.
 To continuously monitor the Bank‘s strategies to ensure that HR policies are appropriate & that
employee numbers & skills are fully supportive of such strategies.
 To deliver a full range of personnel services in support of line management. These services
include manpower planning, recruitment/transfer, remuneration, and training & employee
welfare.
 To support line management in their day-to-day management of the workforce by providing
advice & consultancy on personnel & performance management issues.

EMPLOYEE RELATIONS IN BANKS

The banking sector has been characterized by apparently harmonious industrial relations & has not
suffered from the ―British Diseases‖ of industrial action & demarcation issues associated with parts
of manufacturing industry (e.g. Batstone, 1984). Banks have promoted unitarism (Fox, 1966)
encouraging an ethos of teamwork, shared interest & loyalty, wanting commitment beyond the cash
nexus. While banks are generally seen as having a passive approach to employee relations,
paternalism did underpin the system & particularly important was the system of internal promotion
supported by an unwritten agreement between the major UK Banks on no poaching. The internal
labour market created two categories of employees: career & non-career which equated to a
male/female divide. Retail banking is a highly labour intensive industry with labour costs forming
70%of total operating expenditure & “involvement in fund transmissions meant that a majority of
clerical staff have not been used as a means of marketing the bank‘s products nor directly for
increasing business but to process existing accounts. They have been regarded as an overhead rather
than a resource”.

Until the 1980s, competition between the Banks has been limited, banks operating as an oligopoly
&Government‘s concern with maintaining economic stability with limits to lending, & control over
interest rates facilitated this. The oligopoly fed through to the management of staff as national wage
bargaining minimized competition for labour. However deregulation led to the collapse of the national
system & a questioning of the old employment practices.

CURRENT CHALLENGES FACED BY BANKS IN HRM

Effective work force:

33
 A time-consuming & hectic job is to hunt the right talent. Higher the professional value of the
vacancy, tougher is the search. Identifying the right stuff followed by negotiation is the element which
makes the job tough for the employer. Banks are keenly interested to fill up two types of breeds of
professionals. Ones who are outstanding professionals with high job hoping attitude—these are those
who come in-work for some tome & then leave for better prospects. Others are those who are keenly
picked-up, trained & are somehow retained to be developed as future management within the bank.
Management trainees are a growing popular phenomenon where freshly qualified business graduates
are engaged by banks & a certain percentage of these well-equipped professionals stay back within the
organization to grow into the footsteps of senior managers.

Banking jobs being apparently lucrative for many attract a large number of candidates against
advertised vacancies in media creating a large database management problem. This has been
facilitated by specialized hiring agencies who may take up the job of hiring in case of large number of
vacancies.

Right People: The most difficult agenda of HRM across the banking sector is to retain the right
people. Sudden growth of retail banking & other services has put pressure on HR Managers in banks
to engage more professionals within shorter span of time thereby attracting manpower in other banks
on - 39 - attractive packages has made the job market very competing. A bank in a normal course
invests time & money to hire & train the appropriate workforce for its own operations. This
readymade force is often identified & subsequently picked-up on better terms by others.

Compensation:

How much to pay the right employee & how much to the outstanding performer. Banks have
traditionally followed pay scales with predetermined increments, salary slabs, bonuses &time based
fringe benefits like car & house advance, gratuity, pensions, etc. The situation is not the same
anymore. An increment of Rs.500-800 per annum is no more a source of attraction for a professional
anymore. A basic pay with traditional formulas of linkage with medical & other facilities has no
soothing today. A promise of future growth, learning culture & corporate loyalty is out of dictionary
& does not mean anything to this energetic & competent performer today. A waiting period of 3-4
years in each cadre haunts the incumbents who strongly believe in immediate compensation. A freshly
hired professional requires a brand new car or car loan n resuming office quite contrary to his previous
breed of bankers who would wait for the job seniority to qualify for a car loan.

Job Satisfaction:

34
Everybody in the bank wants to work in the preferential department, preferential location, city of his
own choice & boss of his liking. An administrative deviation from any of these results in lowered job
satisfaction. Although hiring is normally based on regional requirement matching the area of activity
with that of employee‘s nativity yet other elements like appointment in the department of choice &
preference makes the job of HR manager quite challenging. What the HR manager cannot afford is the
dissatisfied employee who not only disrupts the smooth working him, but also spreads the negativity
to others by his de-motivated attitude.

Morale Boosting: What has long been overlooked is the morale boosting of the employees by the
organizations. Human beings even if satisfied of material wellbeing need to be appraised &
encouraged constantly. Smart banks have realized this need & have taken steps to keep their work
force motivated through proper encouragement like man of the mouth awards, repeat get-togethers,
conferences, sports events, dinners, company sponsored travel, reunions, etc. This is the way
employees create a feeling of belongingness.

DEVELOPMENT IN BANKS

The banks must emphasis on human resource development as one of the critical areas of its
operations. It should redraw its training & development schedules to suit the requirements of the
current emerging scenario. Requisite training should be imparted to various branch level functionaries
as also administrative staff. Besides in-house training the reputed external agencies should be utilized
for human resource development with a view to updating their knowledge & to keep them abreast of
the current banking scenario for meeting the challenges ahead. The concept of segment specialization
may be resorted to in respect of the personnel selected therefore. It is now thought expedient to plan &
strengthen the squad of skilled officers in various segments as IT, marketing management, risk
management, risk based supervisors, law, security, etc.

The lead bank must play an effective role in improving the work environment & pursuing staff
welfare measures in the form of whole range of financial assistance with reference to various loans of
sorts. Human resource skills are other areas of challenge. Because of modernization & technological
advancement rigorous training &man power planning are required. In the market scenario
characterized by heightened competition, growing customer needs & technological up gradation, the
bank fine tunes its HT policy to meet its corporate objectives. New training systems have been
developed to impart competencies & a broad range of skills among the employees to deliver faster &
superior service that can delight the customers. The Industrial Relations in the banks have been
harmonious & cordial.

TRAINING & DEVELOPMENT

35
 Meaning & Definition:

Training:

Organization & individual should develop & progress simultaneously for their survival & attainment
of mutual goals. So every modern management has to develop the organization through human
resource development. Employee training is the important sub system of human resource
management. Employee training is a specialized function & is one of the fundamental operative
functions for human resources management. After an employee is selected, placed & introduced he or
she must be provided with training facilities. Training is the act of increasing the knowledge & skill of
an employee for ding a particular job. Dale S. Beach defines the training as ―the organized procedure
by which people learn knowledge & skill for a definite purpose.‖ The training system in the banking
industry has a strong structural base. However, in the past the training activities have been more
ritualistic due to absence of a strategic link between training & human resources development. Today,
it is important that the training function is made an effective organizational intervention by
establishing a clear policy of training & development within the framework of total human resource
development. The training establishments need to be actively involved in the total training process
starting from the identification of the training needs, evaluation of training effectiveness & the
benefits of training to the end users viz. the internal & external customers. The need for training &
development is determined by theemployee‘s performance deficiency, computed as follows:

Training & Development Need = Standard Performance – Actual Performance.

We can make a distinction among training, education & development. Training, as was started earlier,
refers to the process of imparting specific skills. Education, on the other hand, is confined to
theoretical learning in the classrooms. Training & Education Differentiated:

Training Education

Application oriented Theoretical oriented

Job experience Classroom learning

Specific tasks General concepts

36
Narrow perspective Broad perspective

Development:

Give a man a fish, & you give him meal. Teach man to fish, & you give him a livelihood.This ancient
Chinese proverb seems to describe the underlying rational of all raining & development programs.No
banking organization can long ignore the training & development needs of its employees without
seriously inhabiting the performance. Even the most careful selection does not eliminate the needs for
training, since people are not molded to specifications & rarely meet the demands of their jobs
adequately.This HRM function deals with the overall development of the employees. This includes
their professional & well as their personal development. It is a part of HRM function to identify
opportunities for enhancing the skills of the resources. Promotion is regarded as one of the ways of
recognizing development undertaken by an employee. Development is also largely dependant on
training. Generally people think that training & development are one & the same, but there are many
differences between them.

RECRUITMENTS

Meaning and definition:

The human resources are the most important assets of anorganization. The success or failure of an
organization is largely dependent on the caliber of the people working therein. Without positive and
creative contributions from people, organizations cannot progress and prosper. In order to achieve the
goals or the activities of an anization, therefore, they need to recruit people with requisite skills,
qualifications and experience. While doing so, they have to keep the present as well as future
requirements of the organization in mind. Once the required number and kind of human resources are
determined, the management has to find places where the required human resources are/will be
available and also find means of attracting them towards the organization before selecting suitable
candidates for jobs. Recruitment is defined as, ― A process to discover the sources of man power to
meet the requirements of the staffing schedule and to employ effective measures for attracting that
man power in adequate numbers to facilitate effective selection of an efficient work force.

Objectives of recruitment

Some of the objectives of recruitment are:

37
 * To attract people with multi-dimensional skills and experiences that suits the present and future
organizational strategies.

* To induct outsiders with a new perspective to lead the company.

*To infuse fresh blood at all levels of the organization.
* To devise methodologies for assessing psychological traits.

Process of Recruitment

Recruitment refers the process of identifying and attracting job seekers so as to build a pool of
qualifies applicants. This process comprises of five interrelated stages, viz,

# Planning

# Strategy development

#Searching

# Evaluation and control

The ideal recruitment process is the one which attracts relatively larger number of qualified applicants
who will survive the screening process and accept positions with the organization, when offered to
approach the ideal people, individuals responsible for recruitment process must know how many types
of employees are needed, where and how to look for individuals with appropriate qualifications and
interests, what inducements to use for various types of applicants group, how to distinguish applicants
who are unqualified from those who have a reasonable chance of success, and how to evaluate their
work.

Selection

Selection is defined as the process of differentiating applicants in order to identify and hire thosewith a
greater likelihood of success in a job. The objective of selection decision is basically picking an
applicant from a pool of applicants who has the appropriate qualifications and competency to do the job.
The selection procedure cannot be effective until and unless-
# Requirements of the job to be filled have been clearly specified.

# Employee specifications (physical, mental, social, behavioral etc) have been clearly specified.

# Candidates for screening have been attracted

Selection process is preferable because

38
# It is easier for applicant as they can send their applications to a single centralized department/agency.

# It facilitates contacts with applicants because issues pertaining to employment can be cleared through
one central location.

#It helps operating managers to concentrate on their operating responsibilities. This is helpful during
peak operating period.

# It can provide for better selection because hiring is done by specialist trained in staffing techniques.
#The applicant is better assured of consideration for a greater variety of jobs.
#Hiring cost may be cut because duplication of efforts is minimized.

Selection Process:

The selection process consists of the following steps:

1. Application form: Many companies formulate their own style of application form depending upon
the size and nature of business carried on, type and level of the job etc. Information is generally required
on the following items in the form: personal background, educational attainments, work experience
references etc.

2. Written test : Written test is conducted for the qualified candidates after they are screened on the
basis of application form to measure the candidates ability towards the job, his aptitude reasoning,
knowledge in various disciplines, English language etc.

3. Preliminary Interview: The next step that tag along the selection procedure is a preliminary
interview wherein the applications are scrutinized so as to eliminate unqualified applications.
Preliminary Interviews are short. This interview thus provides information about the candidate related to
the job or personal specifications.

4. Selection Test: After passing through the interview the next stage that applicant has to prove himself
on are the selection tests. There are different types of selection tests for different levels of the
organization and that too is further differentiated within different types of organizations. Some of the
most common and well-known tests that an applicant has to go through are:

a) Aptitude test

b) Personality tests: This is common mostly for the higher levels of management are given to measure a
prospective employee‘s motivation to function in a particular working environment.

c) Internal test: To measure an individual‘s activity preferences.

39
 d) Graphology Test: is an art wherein the individual‘s handwriting is seen and accordingly his
personality traits are derived by the way he writes.
e) Polygraph Test: Are designed to ensure accuracy of the information given in the applications.
f) Medical Tests: Reveal physical fitness of the candidate.

g) Drug test: Help to ensure the presence of illegal or Performance- affecting drugs

1. References and background checks: Many employer request names, address, and telephone
numbers or references for the purpose of verifying information and, perhaps, gaining additional
background information on an applicant.

2. Selection Decision: After collecting data from all the preceding steps, this is the most crucial step in
the entire selection process. The main difference between the preceding stages and this is that former is
used to short list the number of candidates and later one is to make a final decision from the pool of
individuals who pass the tests, interviews and reference checks. The view of line manager will be
generally considered in the final selection because it is he/she who is responsible for the performance of
the new employee. The HR manager plays a crucial role in the final decision.

3. Physical Examination: After the selection decision and before the job offer is made, the candidate is
required to undergo a physical fitness test. The result of the medical fitness test is recorded in a
statement and is preserved in the personal records. The main objectives of this test are as follows:

* To detect if the individual carries any infectious diseases.

*To determine whether an applicant is physically fit to perform the work.

* It helps to determine if there are any physical capabilities which differentiate successful and less
successful employees.

*Medical checkup protects applicants with health defects from undertaking work that could be
detrimental to them or might otherwise endanger the employer‘s property.

* Last, but not the least such examination will protect the employer from workers compensation claims
that are not valid because the injuries or illness was present when the employee was hired.
1. Job offer: The next step is selection process is Job offer for those applicants who had passed the
previous stage. Job offer is made through a letter of appointment. Such a letter usually contains the date
by which the appointee must report on duty. Appointee must be given a reasonable time for reporting
because it may be quite possible that the appointee is employed in some other company or must be
residing in some other city and for such other reasons. Company may also want the appointee to delay in
joining the job because the job may require undergoing some training program. Decency demands that
40
rejected applicants must be informed about their non-selection. These applicants‘ data must be used for
future references.

2. Contract of employment: After the job offer is made and the candidates accept the offer, certain
documents need to be executed by the employer and the candidate. One such document is Attestation
form. This form contains vital details about the candidate, which are authenticated and attested by
him/her, which could be used for future reference. Another document is contract of employment. This
document contains the terms and conditions of employment like designation, perks, term of job and so
on. The information written in the contract may vary according to the level of the job. The main
drawback of the contract is that it is difficult to enforce them

3. Concluding the selection process: The selection process will not end with executing the employment
contract. The step is reassuring the candidates who have not been selected. Such candidates must be told
that they were not selected, not because of any serious deficiencies in their personalities, but because
their profiles did not match the requirements of the organization.

4. Evaluation of selection process: The broad test if the effectiveness of the selection process is the
quality of the personnel is hired. An organization must have competent and committed personnel. The
selection process, if properly done, will ensure availability of such employees. Audit must be conducted
by the people who work independent of the HR department.

New methods of selection:

1. 360 degree selection or participative selection: Normally supervisors administer the selection test
and interview. They judge the fit between the job and the candidate. But the employee skills, knowledge
and performance affect not only superiors but also subordinates and the employees of the same level.
Hence the organization started involving the subordinates and the employees of the same level in
administrating the employment tests and interviews. This type of selection program is called 360 degree
program.

2. Employee leasing:

The client company leases employees from a third party, not on temporary basis but on a full time basis
and for long help. An interesting feature is that the client company need not perform personnel activities
such as hiring compensation or record keeping. Employees working elsewhere are leased. They are not
directly employed by the company where they are working. Employees not recruited by one client are
sent to another.

3. Selection by invitation:

41
Management observes the performance of the key executives of competitors. If the performance of the
key executives is excellent or the key executives are the change agents, the management invites them to
join the organization by offering attractive salary and benefits. Thus, the significant performance of the
executives forms basis for selecting them by invitation

HRM ISSUES IN PUBLIC SECTOR BANKS

Among the 12 services classified under the services definition of GATS, banking is one of the
prominent one. Banking industry in India is one of the most diversified and heterogeneous in terms of
ownership; co-existence of private and public sector is one of the best examples of peaceful co-existence
of two entirely different cultural systems in the services sector. Coupled with that, the country has a
large number of foreign banks with altogether a different work culture and climate. The simultaneous
existence of so many types of work ethos, systems and processes are truly symbolic of the great Indian
unity amongst diversity. Notwithstanding the fact that lots of efforts have gone into bringing
technological & process congruence, it is really unfortunate that very little has been done on the human
resource front in this regard. Unfortunately, public sector banking has been the biggest victim, being
governed by outdated & prohibitive sets of government guidelines. The Management often complains
lack of adequate power and flexibility; the Trade Unions often look at any directional change with a
sense of suspicion; majority of the workforce remains in dream-world of the pre-liberalized scenario of
work security. The result is that public sector banks are least concerned about human resource
management and reforms thereto and consequently remain under-productive. Though renaming of
Personnel departments to HR departments took place quite a few years ago in some of the public sector
banks, the work processes & culture in many of them till today remain outdated and are not in a position
to meet changing expectations of the human talent within.The scope of this is limited to address some of
the fundamental issues in areas of human resource management front in the public sector banking in
India.

RESEARCH METHODOLOGY
The present study deals with the impact of human resource development initiatives in terms of
Investment and Outcome in Bareilly District urban cooperative bank Ltd. Both the primary and
secondary sources of data constitute the data base of the present study. The data collected from the
secondary sources viz. published financial statements and annual reports of the bank under study on
certain specific parameters are considered for representing a brief profile of the bank. The primary data
collected from the sample employees selected on the basis of stratified random sampling based on a pre
designed questionnaire is analysed and interpreted for the purpose of the present study.

42
Objectives of the Present Study-

I. To analyse the relationship between the level of investment in training and the resulted outcomes
II. To understand the nature and impact of the training programmes being employed in the sector

III. To design /redesign training methods/ instruments suitable to the sector

IV. To revamp the existing training and education system in accordance with the changing
environment/expecatations of the sector

V. To analyse the stakeholders participation for enriching cooperative identity.

SUGGESTIONS AND RECOMMENDATIONS BY THE PRESENT RESEARCH WORK-

The findings of this study can be fruitfully utilized for the development of HRD practices in urban
cooperative bank. Some of the main recommendations based on the findings of this study are as
follows:-

i. An integrated approach for HR initiative by the bank to be followed to bring all stakeholders under
one umbrella for understanding the problems and prospects of each other’s so as to give a sustainable
shape to the credit cooperative movement.

ii. The normal flow of information to all the stakeholders of the bank is required to be ensured to
improve the business with transparency and required participation from all angles for the overall
development of bank.

iii. The institutional initiative in terms of making proper planning, formulation and implementation of
need based and visionary HR initiatives should effectively be made.
iv. The impact of HR initiatives must properly be assessed, evaluated, monitored and deficiencies found
be rectified properly for improving the performance and productivity of the employees and the system
as a whole.

v. The attitude of the bank management, employees and other stakeholders toward adapting required
professionalization should be moulded and changed as per the need of the day.

vi. The uniform course, module and design pertaining to a specific target group to be ensured to impart
required knowledge and enhance the skill. Further the Training Need Assessment should meticulously
be made.

vii. The cooperative identity should be cherished with proper HR initiative by the bank meant for its
stakeholders.
43
viii. The structural support and communication be positive in encouraging HR initiatives of the bank for
better performance

Results

HRD initiatives are carried out in the organizations to augment the physical, mental and emotional
abilities of the employees for better productivity. It is high time now that the cooperative bank need to
understand that society members and employees are the critical factors to improve the profitability and
efficiency of the banks. Human resource is the most important resource for the overall development of
the cooperative enterprises. HRD is the part of HRM that specifically caters the need of the employees
for training and development. Effective training is an investment yields both immediate and long term
returns. Cooperative banks are value-based, member-based, member-owned and democratically
controlled organizations. The primary objective of a cooperative bank is to satisfy the economic needs
of its members mostly the marginal farmers. We conclude that the efficiency of the cooperative banks
would definitely improve if the suggestions of the present research work is implemented seriously.

44
 DATA ANALYSIS AND INTERPRETATION
Analysis of primary data

What do you understand by training?

Learning 0

Enhancement of knowledge, skills and attitude 4

Sharing information 0

All of the above 16

ANALYSIS

The above result shows that most of the urban cooperative bank employees are well aware of the
definition, inputs and purpose of the training program. They are self-motivated to attend such
training program as it will result in their skill enhancement & improving their interpersonal skill.

2. Training is must for enhancing productivity and performance

Completely agree 17

Partially agree 3

Disagree 0

Unsure 0

45
ANALYSIS:
The above result shows that mostly UCB Employees are well aware of the role and importance of the
training. It means somewhere their productivity and performance has been improved after the
training program attended by them and it helped them to achieve their goal.

3. (i). Have you attended any training program in the last 01 year?

Yes 20

No 0

46
 ANALYSIS:
100% respondents had attended training program in the last 01 year. It means in urban cooperative
banks HR Department, time to time training is provided to all the Bank‘s Employs and it is
continuous process

(ii). If yes, which module of soft skill development training?

Personality and positive attitude 3

Business communication 2

Team building and leadership 0

Stress management and work life balance 2

Business etiquettes and corporate grooming 0

All of above 13

If any other please specify 0

ANALYSIS:

65% respondents had attended all the five modules of soft skill development training. But besides
soft skill development training, HR department of UCB Employees should also provide
product/process or skill based training to enhance the employability

47
 4. (i). After the training, have you given feedback of it?

Yes 20

No 0

ANALYSIS:
100% respondent had given feedback after attending the training. It means each and every
respondent are well aware of the importance of giving feedback. They know that their feedback is
very important to identify the effectiveness and valuation of training program.

(ii). If yes, through which method?

Questionnaire 16

Interview 1

Supplement test 1

Any other 0

48
 ANALYSIS:

The above result shows that the questionnaire is the most popular method of evaluating the training
program and other methods are not very much in practice in co HR Department, UCB But since there
are various other methods of evaluation of training program like interviews, supplement test, self-
diaries & observation so it should also implement the other methods also to identify the ROI (return
on investment) & effectiveness and valuation of the training program

1. Which method of post training feedback according to you is more appropriate?

Observation 5

Questionnaire 3

Interviews 8

Self diaries 3

Supplement test 1

ANALYSIS:

49
 I. Corporate HR, Sahara India Pariwar, mostly use the questionnaire to get the feedback of trainees
but only 15% respondents are in favor of questionnaire because in it there is a possibility of getting
inaccurate data and in this responding conditions are also not controlled.

II. On the other side 40% respondents feel that interview is the most appropriate method of
evaluating the training program because it is more flexible method, and in this they can get the
opportunity for clarification and the most important thing is that in the interviewpersonal interaction
is also possible.
III. 25% are in favors of observation because this is non-threatening and is excellent way to measure
the behavioral changes.

IV. Beside this, 15% are in favors of self-diaries and 5% are in the favour of supplement test. It
means that HR department of UCB Employees should also try to use other method of evaluation of
training program.

6.(i). Do you think that the feedback can evaluate the training effectiveness?

Yes 20

No 0

AN
ALYSIS:

100% respondents think that the feedback can evaluate the training effectiveness. It means that HR
department of State Bank of India are well aware of the importance of taking feedback after the
training

50
 (ii).If yes, how can the post training feedbacks can help the participants?

Improve job performance 1

An aid to future planning 3

Motivate to do better 2

All of the above 14

None 0

A
NALYSIS:

70% respondent feel that the post training feedback can help the participants to improve their job
performance, is an aid to future planning and can motivate to do better. It means that they are
benefited by giving feedback of the training, attended by them.

7. Post training evaluation focus on result rather than on the effort expended in conducting training.

Completely agree 14

Partially agree 6

Disagree 0

Unsure 0

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 ANALYSIS:

70% respondents are completely agree and 30% respondents are partially agree with the statement
that post training evaluation focus on result rather than on the effort expended in conducting training
program. It means that all the respondent are well aware of the purpose and objective of the post
training evaluation

8. What should be the approach of post training evaluation?

Trainer centered 2

Trainee centered 2

Subject centered 8

All of the above 8

52
 ANALYSIS:

I. 40% respondents feel that the approach of post training evaluation should be subject centered and
40% respondent also feel that it should be trainer, trainee and subject cantered.
II. 10% respondents are in favors of trainee cantered approach and 10% respondents are in favors of
trainer cantered approach. It means that the evaluation procedure should be implemented concerning
trainer, trainee and subject.

9. What should be the ideal time to evaluate the training?

Immediate after training 6

After 15 days 7

After 1 month 4

Can't say 3

53
 ANALYSIS:
35% respondent feel that training should be evaluate after 15 days.30% feel that it should be
immediate after training. 20% feel that ideal time to evaluate the training is after 1 month and 15%
are unsure.

Since each respondent had attended different training program. So the ideal time of evaluation of
training dependson types of training. It could be vary for different training

10. Should the post training evaluation procedure reviewed and revised periodically?

Yes 16

No 2

Can't say 2

ANALYSIS:

80% respondents feel that the post training evaluation procedure should be reviewed and revised
periodically. It means that it has to be a continuous process and be taken regularly by the line
manager/Reporting manager of the participants. It could also be taken by peer group. Still 10% feel
that the post training evaluation procedure should not be reviewed and revised periodically. It means
they are satisfied with the post training evaluation procedure, followed by State Bank of India HR
Department.

54
 11. Is the whole feedback exercise after the training worth the time, money and effort?

Yes 18

No 2

Can't say 0

ANALYSIS:
90% respondents feel that the whole feedback exercise worth the time, money and effort and 10%
respondent are not agree with this. It means that feedback exercise is valuable and wrathful for the
participant to achieve their personal goal as well as for the organization.Still 10% are unsure about it.
So there is a need to create awareness among them that how much the feedback exercise is important
to identify the effectiveness and valuation of the training program, to identify the ROI(return on
investment),to identify the need of retraining and identify the points to improve the training

12. The post training feedback can be used:

To identify the effectiveness and valuation of 3

55
training program

To identify the ROI(return on investment 2

To identify the need of retraining 0

To provide the points to improve the training 0

All of above 15

ANALYSIS:

75% respondents feels that post training feedback can be used to identify the effectiveness and
valuation of training program, to identify the ROI, to identify the need of retraining and to provide
the points to improve the training. And others are also aware of the importance of post training
feedback

56
 KEY FINDINGS
•Mostly all the urban cooperative banks Employees are well aware of the role and importance of the
training They are self-motivated to attend such training program as it will result in their skill
enhancement & improving their interpersonal skill.
• Corporate HR, urban cooperative bank, time to time training is provided to all the Employees and it
is continuous process.

• Two types of training are provided to the Employees by urban cooperative banks -induction
training and soft skill development training.
• Questionnaire is the most popular mean of evaluating the training program in urban cooperative
bank.
• Most of the Employees feel that interview is the most appropriate method of evaluating the training
program.

• Post training evaluation focus on result rather than on the effort expended in conducting the
training and it worth the time, money and effort.

• Most of the participants are benefitted by giving feedback after attended the training. It motivated
them to do better, helped them to increase their job performance and is an aid to future planning.

• In urban cooperative bank , post training evaluation is used to identify the effectiveness and
valuation of training program, to identify the ROI(return on investment), to identify the need of
retraining and to provide the points to improve the training.

57
 SUGGESTIONS AND RECOMMENDATIONS
• The management must commit itself to allocate major resources and adequate time to training.
• Ensure that training contribute to competitive strategies of the firm. Different strategies need
different HR skill for implementation. Let training help employees at all levels acquire the needed
skill.

•Ensure that a comprehensive and systematic approach to training exists, and training and retraining
are done at all levels on a continuous and on-going basis.

• Ensure that there is proper linkage among organizational, operational and individual training needs.

• Skill based training (product/process training) should also be provided.

• Besides questionnaire other methods of post training evaluation should also be used like interviews,
self-diaries, observation and supplement test.
•The evaluation procedure must be implemented concerning trainer, trainee and subject.
• Post training feedback has to be continuous and should also be taken from line manager/superior &
from peers to find out the effectiveness and valuation of training.

58
 LIMITATIONS
•The study is limited to the urban cooperative bank bareilly branch. So the study is subject to the
limitation of area.

•The time period of the study was only two weeks which may provide a deceptive picture in
comparison of the study based on long run. Sampling size was of only 20, because only these people
had attended soft skill development training.

• urban cooperative bank only provides soft skill development training, not skill based
(product/process) training. So how can one evaluate the skill based training is still unresolved.

•The study is based only on secondary & primary data so lack of keen observations and interactions
were also the limiting factors in the proper conclusion of the study

59
 CONCLUSION
Today, banks focus on designing programs and process and services to attract, adevelop and retain top
talent. Utilizing the latest technologies HR team has launched sophisticated online systems that provide the
employees with details on benefits, compensation, special programs and internal job opportunities. As a
global employee population continues to grow, these cutting edge activities are increasingly important to the
deliver world-class HR solution. The core function of HRD in the banking industry is to facilitate
performance improvement, measured not only in terms of financial indicators of operational efficiency, but
also in terms of the quality of financial services provided. Factors like skills, attitudes and knowledge of the
human capital play a crucial role in determining the competitiveness of the financial sector. The quality of
human resources indicates the ability of banks to deliver value to customers. Capital and technology are
replicable but not the human capital which needs to be valued as a highly valuable resource for achieving
that competitive edge. The primary emphasis needs to be on integrating human resource management
strategies with the business strategy. HRM strategies include managing change, creating commitment,
achieving flexibility and improving teamwork. The other processes representing the overt aspects of HRM
are recruitment, placement and performance management.

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60
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