Human Resource Management and the Banking Sector Essay

tHuman option charge and the banking go withing arena By Imran Samad Human resource management (HRM) has languish been overlooked in the bodily sector in the country where a small section, comprising mostly the multi-national companies was practising the same. With the emergence 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 elder teams of any thriving business. Although the idea is new for many local businesses where entrepreneurs ar at the beginning of the breeding curve yet in humans the theme is getting support from the organized entrepreneurs.The banking sector has grown from a few institutions primarily involved in deposit acceptance and art finance into a complex multi player markets where large itemize of mercantile banks, financial institutions and specialized banks are operating with various products and activities. The banking has become a complex activity within the financial market linked speedyly and indirectly with an over-all national growth and its impact as an integral snap off of regional segment of a global banking environment.Almost every bank and financial institution is involved in various run lows in a days job and thus removes a spunkyly hard-hitting team and appropriate manpower to run the show. Corporate goals are translated into operable realities and profits only with human element who play their due spot 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 realised by top managements in progressive banks. Like many new(prenominal) organized sectors, banking requires a multi layer manpower for its various requirements of professed(prenominal)s and support staff.The score may require reasonably educated security guards on the unmatchable end and a highly educated and trained professional as head of corporate finance a t the new(prenominal). With liberalization of activities within the banking sector, for example, more than emphasis on consumer and house finance and personal loans, etc. banking has dark itself into a more market-based business where banks fetch expanded their reach more to customers door steps in a big way qualification banking more practical. This has further highlighted the take in for proper deployment of man-power to run banks efficiently.For many historic period, HRM banks standardised early(a) institutions have been handling this sensitive activity through respective(prenominal) personnel departments. This inculpates human resources were managed comparable other physical assets e. g. pieces of furniture, calculators, equipment and appliances. military strength play departments were primarily engaged in approval of leaves, handling of staff loans, publication of show cause, conducting disciplinary enquiries and termination from service. Recruitment was a routi ne function and was done in a mechanical way to hire stack with specific educational rumpground irrespective of their real value to the institution. triumph 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 receptive and decision-making capacity has to be greatly emphasized by the employers. The work force constituting all levels of employees are constantly thinking in many dimensions. On the one hand it is the assigned duty and task they are to coiffe and for which they are paid by their employer, on the other they think of their foresightful 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 patience in hurt of human resource management may be the following Effective work forceA time-consuming and feverish job is to hunt the right talent. Its just sitting by the river and delay for the right fish to catch. Higher the professional value of the vacancy, tougher is the search. Identifying the right bar followed by negotiation is the element which makes the job tough for the employer.Banks are keenly interested to fill up two types of breads of professionals. Ones who are gravid professionals with high job hopping attitude these are those who come in work for most time and then leave for better prospects. Others are those who are keenly picked-up, trained and are some how retained to be developed as future management within the bank. Management trainees are a growing popular phenomenon where impertinently qualified business graduates are engaged by banks and a certain percentage of these well equipped professionals stay back within the organization to grow into the footsteps of senior managers.Banking jobs being appa rently paying(a) for many, attract a large number of candidates against advertised vacancies in media creating a large data base management problem. This has been facilitated by specialised hiring agencies who may take up the job of hiring in case of large number of vacancies. Right peopleThe most difficult agenda of HRM across the banking sector is to retain the right people.Sudden growth of retail banking and other run has put pressure on HR public treasurys in banks to engage more professionals within shorter span of time thereby attracting manpower in other banks on attractive packages has made the job market very competing. A bank in a normal course invests time and specie to hire and train the appropriate work force for its own operations. This cliched force is often identified and subsequently picked-up on better terms by others. CompensationHow much to pay to the right employee and how much to the outstanding performer.Banks have traditionally followed pay scales with pre determined increments, salary slabs, bonuses and time-based fringe benefits like railway car and house advance, gratuity, pension, etc. The situation is not the same anymore. An increment of Rs500-800 per annum is no more a source of attraction for a professional anymore. A basic pay with traditional formulas of linkage with medical and other facilities has no soothing effect today. A promise of future growth, learning culture and corporate loyalty is out of dictionary and does not mean anything to this energetic and competent performer today.A waiting period of 3-4 years in each cadre haunts the incumbents who strongly believe in immediate compensation. There are examples to this. Thanks to the car financing modalities car is no more a fantasy item any more. A freshly hired professional requires a brand new car or car loan on resuming office quite contrary to his anterior breed of bankers who would wait for the job seniority to qualify for a car loan. Job satisfaction Everybody i n the bank wants to work in the invidious department, preferential location, city of his own weft and boss of his liking.An administrative excursus 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 employees birthing yet other elements like appointment in the department of choice and preference makes the job of HR manager quite challenging. What the HR manger cannot afford is the dissatisfied employee who not only disrupts the smooth working himself unless also spreads the negativity to others by his de-motivated attitude.Morale boostingWhat has long been overlooked is the esprit de corps boosting of the employees by the organizations. Human beings even if satisfied of material wellbeing need to be appraised and encouraged constantly. Smart banks have realized this need and have taken steps to keep their work force motivated through proper encouragement like man of the mont h awards, repeat get-togethers, conferences, sports events, dinners, company sponsored travel, reunions, etc. This is the way employees create a feeling of belongingness.