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University of Dhaka

Department of Management Studies MBA (Evening Program) Fall, 2011 A Case Study on PREMIER BANK OF INDIA

Course Title Course code Course Teacher Date

Human Resource Management

Prof. Dr. ShahidUddin Ahmed 05/12/2011

Submitted by Name Muhammad Ashraful Kabir S.K.M. Moklesur Rahman Kazi Mohammad Taslim Akhil Ranjan Tarafder Emdadul Haque Nahid Rijwan Roll 3-09-17-001 3-10-19-072 3-10-18-045 3-10-18-019 3-09-17-061 3-09-17-033

Table of Contents
Serial Topic Page no.
01 01 03 03 04 04

CH-1

Study Background
Case History Partial Organizational Set-up of Premier Bank Regional Distribution Of Branches Training Center Facilities Courses Organized During 1970-72

CH-2 CH-3

Problem Findings Solutions & Analyses


Problem About Forecasting Personnel Need Solution to the problem Analysis Problem Regarding Bank Operation & Administration Solution to the problem Analysis Problem Regarding Managerial Span Of Control Solution to the problem Analysis Problem Regarding Performance Management & Appraisal Solution to the problem Analysis Problem Regarding Training & Development Of Employees

05

07 07 07 10 11 11 11 12 12 13 14

14 16 17

Serial
Analysis

Topic
Solution to the problem

Page No.
18 23 25 25 26 28

CH-4

Conclusion & Recommendation


Conclusion Recommendation

BIBLIOGRAPHY

CH-1: STUDY BACKGROUND


Banks constitute an important segment in financial arena of all countries whether developed or developing or underdeveloped. Economic development of every country depends upon financial sector particularly commercial banks. In fact economic

development and financial infrastructure go hand in hand. From time immemorial, the conventional banker, an indispensable pillar of Indian society, giving and taking of credit in one form or another, must have existed as earlier as the Vedic period. It is true for all organization that, development and smooth functionality depends on the proper planning and implementation of Human Resource. And it is very much true for a financial organization. Premier Bank was one of the prominent Bank of India. Through its history of establishment and survive many significant points can be illustrated as an investigating case.

Case History:
The history of modem Indian banking goes back to 1683 when the first Indian Bank was established on western lines in Madras. The integration of Premier Bank was in 1905 with its Head Office at Calcutta. The bank had grown steadily over the years. It had become one of the well-known banks in the country. By the end of 1972, it employed over 15000 persons, Including 3,000 officers in about 620 branches located all over India. The bank had set up regional offices in a number of large Cities. Of the 620 branches, about 50 percent had been opened between 1970-72 and the employee strength had increased by about 2,500 in the same period. Premier Bank had been nationalized along with 13 other major banks in the country on 19 July, 1969. After this the bank experienced to take immediate action for spreading its diversity and scopes in different sectors. As an ultimate result, expansion in broad term appeared as an urgent issue. Premier Bank had been allotted 24 districts in Punjab, Andhra Pradesh, Maharashtra, Madhya Pradesh and Uttar Pradesh. The bank was responsible to lead other banks in those regions for the development of banking sector. For mammoth expansion activities the bank needed a lot of manpower. It also restructured its strategy of banking. . A large number of new branch managers, accountants, and technical officers (engineers and agricultural officers) were recruited.
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By the end of 1972, the bank changed it concentration from metropolitan Urban to the Rural and small borrowers. They opened 230 branches in rural area of the 300 branches, between1970 to 72. During 1970-72, total number of employees had reached to 15,000. For performance appraisal employees Premier Bank followed traits-cum-conduct evaluation system. Although the training program initiated only in 1969 after nationalization, the process was considered impressive. Since a large number of persons had been recruited by Premier Bank within the last three years, the training activities in the bank had been considerably strengthened. Most of the officers were recruited by the head office, and being placed in their assignment were given training in short duration courses in banking procedures so that they could be effectively utilized on the job as soon as feasible. The bank had added three new regional training centers to the central training institute existing in Calcutta. In order to determine the emphasis and focus of training to be given in various courses, a central review committee on training had been setup. Finally they had setup a perspective plan for training. Different functionalities of Human Resource Management have been come out through the whole case study. Premier Bank established a strong financial involvement all over the India settling up many problems raised time to time through their long journey. Starting from tremendous expansion of overall strategies Planning, Staffing, Reorganizing, Banking Policy, Forecasting, Recruiting, Performance Appraisal and lastly Training and Development- all the core functions were firmly correlated through the whole story. In some portion Span of Control problem was also found in the history of Premier Bank. Situational problems were created time to time but problem on training & Development found rigidly. Authority of Prime Bank tried to solve their problem in different ways to reach themselves in a fruitful place.

Partial Organizational Set-up of Premier Bank:

Chairman &Managing Director

General Manager

Deputy General Manager

Deputy General Manager

Regional Managers Various Head Office Functional Departments Area Managers Branch Managers Various Head Office: Administrative, Personnel, Planning and System Departments

Regional Distribution of Branches:


SL. No. 1 2 3 Region Head Office Calcutta Region Eastern Region Areas Covered All India Calcutta West Bengal, Bihar, Orissa, Assam, Meghalaya 4 5 Central Region Northern Region Rajasthan, MP Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, 75 120 No. of Branches --60 255

Delhi, Chandigarh 6 7 Western Region Southern Region All India Gujarat, Maharashtra Andhra Pradesh, Tamil Nadu 620 75 35

Training Center Facilities: Sl. No.


1 2 3 4

Residential Location Started in Room Available


Calcutta Madras Delhi Patna January, 1971 November, 1971 February, 1972 March, 1972 70 ----

Classroom Capacity
70 30 30 30

Faculty strength
9 3 3 2

Courses Organized During 1970-72:

a) Course for Promote Officers b) Course for Direct Recruit Probationary

At Central Training Institute, Calcutta

Officers c) Course for Rural Branch Agents d) Induction Training for Clerks e) Basic Training for Clerks a) Course for Promote Officers

At Each Regional Training b) Induction Training for Clerks Center c) Basic Training for Clerks Total Employees Trained in (1970-1972) Training Cost Incurred (in Rs. Lakh)
Officers 950 1970 6.8 1971 7.9 Clerks 1500 1972 8.6

CH-2: PROBLEM FINDINGS


1. Problem About Forecasting Personnel Need:
Of the 620 branches, about 50 percent of the branches had been opened between 1970-1972 due to nationalization process and lead bank scheme implemented by the government. As a result of rapid expansion and diversification, the bank had to recruit large number of people to meet the demand. But the bank had no forecasting of personnel needs as well as manpower development to take care of the problems arising out of the growth and diversification process.

2. Problem Regarding Bank Operation & Administration:


Branch managers, area / regional officers etc. were not at all familiar with handling industrial relations problems as these problems were directly referred to head office in the past. But it was no longer possible due to geographical expansion and resulted administrative problems.

3. Problem Regarding Managerial Span of Control:


Within the officer category, they had five hierarchical levels from grade E to grade A special, and their numbers were 2315, 345, 175, 85, 55, 24 respectively. From grade D to grade E officers, they had a wide span of control, which resulted in a wider number of grade E officers under a single grade D officer. This large span in management was not complied with the companys large scale geographic expansion and diversification and rural life penetration.

4. Problem Regarding Performance Management & Appraisal:


Personnel inventory sheets giving qualifications and work experience of each employee were not maintained. Traits-cum-conduct evaluation pattern was followed by the bank as appraisal system rather than concepts of performance, budgeting and evaluation.

5. Problem Regarding Training & Development of employees:


a) Job Analysis & Regular Training Program: Manpower training and
development program was poor. Most existing employees promoted from clerical to officer level had no formal training although job contents were different at different levels. Moreover, many officers had been posted as branch managers to handle responsible positions in the newly opened branches only after short training on banking procedures.

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


in order to be familiar with new procedures and specialized schemes because of inadequate facility of training centers.

c) Job Rotation: Towards achieving rural penetration, the newly opened branches
were dispersed geographically in a large number of backward areas. As the clerks and subordinate stuffs were recruited locally and regional languages known were different, resulted low inter-transferability. So the feasibility of job rotation in between branches was less.

d) Unavailability of Trainer: It was found that many managers were not convinced
of the need and efficacy of training function. As a result, competent people with an aptitude for teaching were not available since faculty work was considered a deviation from the normal career path. Because of tremendous spurt in expansion activities, the right persons were fully stretched and could not be easily spared for training.

CH-3: SOLUTIONS & ANALYSES


1. Problem About Forecasting Personnel Need:
"Of the 620 branches, about 50 percent of the branches had been opened between
1970-1972 due to nationalization process and lead bank scheme implemented by the government. As a result of rapid expansion and diversification, the bank had to recruit large number of people to meet the demand. But the bank had no forecasting of personnel needs as well as manpower development to take care of the problems arising out of the growth and diversification process."

Solution to the Problem:


Premier Bank had to recruit a large number of employees to start operations in more than 300 newly opened branches. This recruitment and selection process should start with personnel planning and forecasting which involves the following steps. The recruitment and selection process starts with employment or personnel planning. This is the process of deciding what positions the firm will have to fill, and how to fill them. Personnel planning embrace all future positions, from, maintenance clerk to Reemployment planning should flow from the firms strategic plans. Plans to enter new businesses, build new plants, or to reduce costs al influence the types of positions the firm will need to fill or eliminate. Personnel planning or Succession planning, in either case, employment planning should flow from the Premier Banks strategic plan like opening new branches, geographical expansion, rural penetration, nationalization etc. The following figure illustrates the need for linking strategic and personnel planning.

Exhibit -1: Linking Employers Strategy to Plans

Any of the methods to forecast personnel needs may be used by Premier Bank while the top management had to consider other factors like projected turnover, financial resources etc. The most common personnel planning approaches involve the use of simple techniques like trend analysis and ratio analysis to estimate staffing needs based on sales projections and historical sales to personnel relationships. The usual process is to forecast revenues first, and then estimate the size of the staff required to reach the sales volume. Several techniques used by Human Resource Managers: Some of the simple tools for forecasting are as follows: Trend analysis o The study of a firms past employment needs over a period of years to predict future needs. Trend Analysis means studying variations in a firms employment levels over the last few years. The purpose is to identify trends that might continue into the future

Ratio analysis o Ratio Analysis means making forecast based on the ratio between some causal factor like sales volume and the number of workers required such as number of salespeople. Ratio analysis assumes that productivity remains about the same. If sales productivity were to increase or decrease, the ratio of sales to salespeople would change.

Scatter plot o A graphical method used to help identify the relationship between two variables. Scatter plot shows how two variables such as a measure of business activity and firms staffing levels are related.

Computerized forecasts o The use software packages to determine of future staff needs by projecting sales, volume of production, and personnel required to maintain a volume of output. Generates figures on average staff levels required to meet product demands, as well as forecasts for direct labor, indirect staff, and exempt staff. Typical metrics: direct labor hours required to produce one unit of product (a measure of productivity), and three sales projectionsminimum, maximum, and probable.

Flow models o Determine the time that should be covered. Shorter lengths of time are generally more accurate than longer ones. However, the time horizon depends on the length of the HR plan which, in turn, is determined by the strategic plan of the organization. o Establish categories, also called states, to which employees can be assigned. These categories must not overlap and must take into account every possible category to which an individual can be assigned. The number of states can neither be too large nor too small.
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o Count annual movements (also called flows) among states for several time periods. These states are defined as absorbing (gains or losses to the company) or non-absorbing (change in position levels or employment status). Losses include death or disability, absences, resignations and retirements. Gains include hiring, rehiring, transfer and movement by position level.
o

Estimate the probability of transitions from one state to another based on past trends. Demand is a function of replacing those who make a transition.

Analysis:
In our following case, the Premier Bank of India had opted for geographical expansion strategy. As mentioned before, any kind of organizational plan should comply with the organizations strategic plan. So the banks strategic plan of geographic expansion greatly affected their HR plans. As we have seen in the previous exhibit, the employers HR plans were followed by the banks strategic plan which resulted and executed in other HR sub plans like Personal plans, Training & Development plans, Compensation Plans, Labor Relation plans and Security & Safety Plans. Now the personnel plans start with the employee planning resulting in the forecasting of future employee need. The manpower planning department of Premier Bank could have been used any one kind of four employee forecasting methods as per their convenience. Here we will consider each methods validity in respect to the case of Premier Bank, India. The Trend Analysis for forecasting demand takes into consideration the previous years employee need and project it in estimating future employee needs. But as the organization decided strategically to expand its business, the trend analysis could not be able to properly forecast their actual future employee need. The time period of our case is during 1970-1972. At that time, the extensive uses of computerized methods were not really physible. So we can consider the Computerized Forecast methods irrelevant to our study.

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To consider Ratio Analysis and Scatter Plots, Ratio Analysis means making forecast based on the ratio between some causal factors like here in this study the probable future operating brunches and the number of employees required such as number of branch managers, officers and clerks. And Scatter plot provides a graphical method to help identify the relationship between these two variables. So the Ratio Analysis or Scatter Plot could have been the best choice for Premier Banks manpower planning department in forecasting their future employee need.

2. Problem Regarding Bank Operation & Administration:


"Branch managers, area / regional officers etc. were not at all familiar with handling
industrial relations problems as these problems were directly referred to head office in the past. But it was no longer possible due to geographical expansion and resulted administrative problems."

Solution & Analysis of the Problem


Premier Bank had been allotted 24 districts in Punjab, Andhra Pradesh, Maharashtra, Madhya Pradesh and Uttar Pradesh. The bank was responsible to lead other banks in those regions for the development of banking sector. The following table exhibits the brunch allotment in these regions.

SL. No.

Region

Areas Covered

No. of Branches

1 2 3

Head Office Calcutta Region Eastern Region

All India Calcutta West Bengal, Bihar, Orissa, Assam, Meghalaya

--60 255

4 5

Central Region Northern Region

Rajasthan, MP Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, Delhi, Chandigarh
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75 120

6 7

Western Region Southern Region All India

Gujarat, Maharashtra Andhra Pradesh, Tamil Nadu

75 35 620

The bank could have been established a special industrial relation brunch in each of the 24 districts allotted to it. In those branches, they could provide industrial relation banking and by doing such, they could have been avoided transferring their entir industrial y entire valued clients to the head office.

3. Problem Regarding Managerial Span of Control:


"Within the officer category, they had five hierarchical levels from grade E to grade
A special, and their numbers were 2315, 345, 175, 85, 55, 24 respectively. From grade D to grade E officers, they had a wide span of control, which resulted in a wider number of grade E officers under a single grade D officer. This large span in management was not complied with the companys large scale geographic expansion and diversification and rural life penetration."

Solution to the Problem


Span of Control: The number of employees who can be effectively & efficiently supervised by a manager.

Exhibit: Contrasting Spans of Control


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Width of span is affected by: Skills and abilities of the manager Employee characteristics Characteristics of the work being done Similarity of tasks Complexity of tasks Standardization of tasks

Narrow Span Drawbacks: Expense of additional layers of management. Increased complexity of vertical communication. Encouragement of overly tight supervision and discouragement of employee autonomy.

Analysis
The facts regarding span of control are likely the skills and abilities of the managers and also the employees. For instance, the more training and experience the employees have, the less direct supervision they will need. Therefore, the well-trained and experienced managers can work well with wider span. But in our case of Premier Bank of India, we found that most of the managers and officers are not well trained, even some of them did not get any formal training at all. Hence they opted for wider span at the bottom level of management, though they should have been followed the narrow span of control. This kind of organizational structure could have been followed with misadministration. The HR department could improvise this situation by making uniform distribution of managers through the levels, or it would be better if they create another management level within grade D and grade E and. The newly created manager could be designated by sub-regional or district managers. It could also solve most of the diversification of the work force related problems.

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4. Problem Regarding Performance Management & Appraisal:


"Personnel
inventory sheets giving qualifications and work experience of each employee were not maintained. Traits-cum-conduct evaluation pattern was followed by the bank as appraisal system rather than concepts of performance, budgeting and evaluation."

Solution to the Problem:


Traits-cum-conduct evaluation pattern was followed by the bank. Performance appraisal methods should be properly followed by Premier Bank. Appraisals play an integral role in the employers performance management process. It helps in planning for correcting deficiencies and reinforces things done correctly, in identifying employee strengths and weaknesses, are useful for career planning and affect the employers salary raise decisions. Senior Mangers and HR department has big role to play. Supervisors Usually do the actual appraising. Must be familiar with basic appraisal techniques. Must understand and avoid problems that can cripple appraisals1. Must know how to conduct appraisals fairly.

HR department Serves a policy-making and advisory role. Provides advice and assistance regarding the appraisal tool to use. Prepares forms and procedures and insists that all departments use them. Responsible for training supervisors to improve their appraisal skills.

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Some Performance Appraisal Methods are as follows:

Graphic rating scale:


A scale that lists a number of traits and a range of performance for each that is used to identify the score that best describes an employees level of performance for each trait.

Excellent Quality of Work Quantity of Work Creativity Integrity

Good

Fair

Poor

Exhibit: A Graphic Rating Scale

Alternation ranking method:


Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

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Paired comparison method:


Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.

Forced distribution method:


Similar to grading on a curve; predetermined percentages of ratees are placed in various performance categories. Example:

15% high performers 20% high-average performers 30% average performers 20% low-average performers 15% low performers

Analysis
As personnel inventory sheets which give qualifications and work experience of each employee were not maintained in premier bank, they should establish a proper job description format to come out from this problem.

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A standard description format may include the following headings: 1. Job Identification: Includes job title, division, department, reports to, location, date etc. 2. Job summary: Includes only the major functions of the job. 3. Responsibilities: Presents a list of the jobs significant responsibilities & duties. 4. Authority of Incumbent: Refer who to report to. 5. Standards of Performance: Lists of performance standards which employee has to achieve. 6. Working Conditions: Includes things like noise level, hazardous conditions or heat. Appraisals, of course, provide the information upon which promotion and salary decisions are made and the basis upon which to discuss the employee's performance in the hopes of reinforcing desirable behaviors and eliminating undesirable ones. Increasingly HR specialists are emphasizing appraisal's related role as a central player in what they call performance management. Performance management may be defined as the whole process impacting how well an employee performs. Performance management may therefore encompass goal setting, worker selection and placement, performance appraisal, compensation, training and development, and career management in other words, all those parts of the HR process impacting how well an employee performs. It's therefore useful by emphasizing more closely at appraisal's role as a component in a company's performance management system.

5. Problem Regarding Training & Development of employees:


a) Job Analysis & Regular Training Program: Manpower training and
development program was poor. Most existing employees promoted from clerical to officer level had no formal training although job contents were different at different levels. Moreover, many officers had been posted as branch managers to handle responsible positions in the newly opened branches only after short training on banking procedures.

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


in order to be familiar with new procedures and specialized schemes because of inadequate facility of training centers.

c) Job Rotation: Towards achieving rural penetration, the newly opened branches
were dispersed geographically in a large number of backward areas. As the clerks and subordinate stuffs were recruited locally and regional languages known were different, resulted low inter-transferability. So the feasibility of job rotation in between branches was less.

d) Unavailability of Trainer: It was found that many managers were not convinced
of the need and efficacy of training function. As a result, competent people with an aptitude for teaching were not available since faculty work was considered a deviation from the normal career path. Because of tremendous spurt in expansion activities, the right persons were fully stretched and could not be easily spared for training.

Solution to the Problem:


Proper training program should help Premier Bank to get rid of low inter-transferability problem and help the employees to become familiar with industrial relations problems. Moreover it helps newly recruited employees to cope with new procedures and specialized schemes. Manpower development is the process that helps organizations to provide adequate human resources to achieve their current and future organizational objectives. Manpower Planning is the most strategic of all human resource management functions. Planning defines the sources, number and types of manpower needed to meet future work requirements. Predetermined strategies to attract and retain the best people are also laid down. Strategic development and utilization of employees capabilities, which yield best benefits to the company, are designed into the plan.

Manpower training and development will however be examined in the light of training and development of employees in the organization and its effects on organizational growth and survival in the industry. Manpower training can be said to mean a system by which the management of an organization help each staff or individual of the organization
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to realize his/her potential, develop it and bring it to bear for the growth of the organization.

Orientation Program: From the view of Premier Bank, Orientation program is essential for all new employees at clerical and executive level to let them know about basic information of the bank. Good employee orientation will ensure that the employees feel motivated and a part of the team and will make an effort to do their best to help the business achieve its goals. Employee development is crucial for customer satisfaction, retention, and the growth of the company. Businesses have learnt that employee orientation plays a very important role in the development and performance of an employee. Hence the orientation process must be carefully planned and executed to ensure that the employee ends up knowing all about your company, the company profile and its policies, the target goals, the duties and the role the employee plays in helping the company achieve its objectives.

Once the initial orientation is complete, training is provided to ensure that the new recruits do their best to accomplish the tasks assigned to them. The objective of the orientation is to make the employees are completely familiar with all aspects of their duties. They must be clear about the goals of the company and how they must help the company achieves its targets.

Orientation content Information on employee benefits Personnel policies The daily routine Company organization and operations Safety measures and regulations Facilities tour

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To arrive in a solution, the management of Premier bank must initiate an effective Training Needs Assessment which can be divided in two following major parts: Task Analysis: It belongs to assess the new employees training needs. It is a detailed study of the job to determine what specific skills the job requires. Job description and specifications are important here. These lists the jobs specific duties & skills, which are the basic reference points in determining the training required. This training needs analysis can also be done by reviewing

performance standards, performing the job and questioning current job holders and their supervisors However, a competency model, a graphic model that gives a precise overview of the competencies an employee would need to do a job well, can be established in assisting to assess new employees training needs.

Performance Analysis: It belongs to assess the current employees training needs. Performance analysis is the process of verifying that there is a performance deficiency and determines whether the employee should correct those deficiencies through training or some other means like transferring the employee.

As competent people for teaching were not available and right person were fully stretched and could not be easily spared for training, the management of premier bank should implement training program under following methods to carry on both the functional work and training program.

On-the-job training (OJT): As it became difficult for Premier Bank to spare competent people for training, it should rely on On-the-job training (OJT). On-the-job training focuses on the acquisition of skills within the work environment generally under normal working conditions. Through onthe-job training, workers acquire both general skills that they can transfer from one job to another and specific skills that are unique to a particular job. On-the-job training typically includes verbal and written instruction, demonstration and observation, and hands-on practice and imitation. In addition, the on-the-job training process involves one
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employeeusually a supervisor or an experienced employeepassing knowledge and skills on to a novice employee. Two different types of on-the-job training are frequently distinguished in the professional literature: structured (planned) and unstructured (unplanned). Unstructured is the most common kind and refers to loose on-the-job training programs that largely involve a novice employee working with an experienced employee, who serves as a guide or mentor in an observe-and-imitate training process. The new workers largely learn by trial and error with feedback and suggestions from experienced workers or supervisors. Unstructured training is designed based on work requirements, not on imparting job skilled needed by new workers. In contrast, structured on-the-job training involves a program designed to teach new workers what they must know and do in order to complete their tasks successfully. Onthe-job training represents a significant investment considering that roughly 30 percent of a new worker's time is spent in on-the-job training during the first 90 days of employment, that productivity of experienced workers assigned to train new workers may decrease during the training period, and that new workers may make expensive mistakes.

Managerial on-the-job and off-the-job training: A serious problem occurred when it was seen that most existing employees promoted from clerical to officer level had no formal training although job contents were different at different levels and many officers had been posted as branch managers to handle responsible positions in the newly opened branches only after short training on banking procedures. As a result, Managerial on-the-Job Training and Off-the-Job Management Training were very much required which includes the following steps: The main methods of on-the-job training include:

Demonstration / instruction - showing the trainee how to do the job Coaching - a more intensive method of training that involves a close working relationship between an experienced employee and the trainee

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Job rotation - where the trainee is given several jobs in succession, to gain experience of a wide range of activities (e.g. a graduate management trainee might spend periods in several different departments)

Projects - employees join a project team - which gives them exposure to other parts of the business and allow them to take part in new activities. Most successful project teams are "multi-disciplinary"

Off-the-Job Management Training and Development Techniques: The Case Study Method: All most everyone knows, the case study method presents a trainee with a written description of an organizational problem. The person then analyzes the case, diagnoses the problem, and presents his or her findings and solutions in a discussion with other trainees. Outside Seminars: Many companies and universities offer Web based and traditional management development seminars and conference. For example, the American Management Association provides thousands of courses in areas ranging from accounting and controls to assertiveness training, basic financial skills, information systems, project management, purchasing management, and total quality management. University related programs: Many universities provide executive education ad continuing education programs in leadership, supervisor, and the like. These can range one to four day programs to executive development program lasting one to four months. An increasing number of these are offered online. The advanced management program of the Graduate School of business Administration at Harvard University is one traditional example. A class in this program consists of experienced managers from the world. It uses cases and lectures to provide top level management talent with the latest management skills and with practice analyzing complex organizational problems. Role Playing: The aim of role playing is to create a realistic situation and then have the trainees assume the parts (or roles) of specific persons it that situation.

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Executive coaches: An outside consultant who questions the executives boss, peers, subordinates, and (sometimes) family in order to identify the executives strengths and weaknesses. Counsels the executive so he or she can capitalize on those strengths and overcome the weaknesses.

Informal Learning: This method includes performing employees jobs on a daily basis in collaboration with their colleagues. Programmed Learning: It is a step-by-step, self learning method by either textbook or PC or internet, that consists of 3 parts: - Presenting questions, facts or problems to the learners - Allowing the person to respond - Provide feedback on the accuracy of answers. This method generally presents facts and follow- up questions frame by frame. When the learner responds, subsequent frames provide feedback on the answers accuracy. What the next question is often depend on how the learner answers the previous question. The main advantage of this method is that it reduces training time and facilitates learning by letting trainees learn at their own pace, get immediate feedback and reduce the risk of error. However, intelligent tutoring system take programmed learning one step further.

Analysis
All the Training and development related problems could be solved by establishing new training centers for managers and officers. Of course, we can see from table 3 of this case study that, as the workforce was growing to cope with the expansion strategy, the training cost also were increasing. In 1972, training cost incurred had increased about RS. 2 Lakhs than training cost incurred in 1970. They had a backlog of stuff to be recruited of 1500 employees at the end of 1972. Also additional 3500 employees to be recruited to fill up 400 newly opened branches during the period 1973-1975. This rigorous future employment planning was associated with

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additional financial outlay as well as a larger commitment of time and effort on the training activity. Designing a training program entails setting training objectives, working out a training program budget and deciding the actual content of training. The training budget is the main factor, because this determines the actual design of training program. Since the stuffing and training costs were mounting, some of the top level managers were not convinced of the need and efficacy of training program.

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CH-4: CONCLUSION & RECOMMENDATION

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

Premier banks Strategic Plan Diversify? Integrate Vertically? Geographic Expansion?

HR Plans

Functional Plans

Training & Development Plans

Personnel Plans

Narrow Span Managemen

Regular Formal Training

Personnel Forecast

Increase in No. of Managers

Training Facility

Recruitmen -t Plans

Special Skill Managers (industrial relations)

On-the-Job Training

Employee Selection Plan

Orientation

Informal Training

Financial Plans

Training Budget

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Project Turnover/ Financial Revenue

From this framework we can see that, Premier bank of India took the strategic plan of diversification & global expansion which led the organization to reformulate their HR plans, Financial Plans and Functional plans. In this case, the HR plans covered two distinct areas which are: Personnel Planning and Training & Development planning. In personnel planning, more emphasize was on future employee forecasting. The organization mainly suffered from the training & development planning, on which we have made several recommendations to improve performance. Overall, the financial plan practically affects all kind of organizational activities. More to say, Financial planning greatly affects any strategic change to take place. In our case, financial plans took two aspects, which are project turnover to financial revenue ratio and Training budget. While the last component affected in making decision of personal plans and functional plans, mean while the training budget directly shaped the actual aspect of the training and development planning.

Recommendations:
Specific concentration should be paid in HR sectors of Premier bank, which are as follows: Personnel Planning & Forecasting 1. Proper Analysis based on reliable data. 2. Suitable Forecasting methods selection. Recruitment 1. Measuring and using perfect indicators for Recruiting. 2. Effective & Efficient selection. Operation & Administration 3. Proper distribution of manpower with work diversity 4. Right segmentation of jobs.

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Span of Control 1. Identifying employees skills. 2. Setting effective spans of control. 3. Spans may be selected on short time situational demand. Job Analysis 1. Need proper job Description and Job specification. 2. Setting standard KPIs for Job evaluation. Performance Appraisal System 1. Preparing Standard Performance Appraisal Tools. 2. Maintaining a Employee activities Database for current and future needs. 3. Consolidate evaluation for performance rating and development. Training & Development 1. Planning and selecting training program as per employees PMS data. 2. Maintaining quality trainers and training contents. 3. Completion optimum level of training hours for employees. 4. Providing option of Job rotation, on the job training 5. Creating point of failure among employees.

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BIBLIOGRAPHY
Dessler, Gary, Human Resource Management, 12th Edition, 2011, Pearson, Prentice Hall, Global Edition Robbins, Stephen P. & Coulter, Mary, Management, Eighth Edition, 2008-2009 Pearson, Prentice Hall, International Edition Isern Jennifer, Abrams Julie & Brown Matthew, Training Guide for Microfinance Institutions March 2008

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