International Journal of Management and Social Sciences Research (IJMSSR)

Volume 3, No. 1, January 2014

ISSN: 2319-4421

A Study on Training and Development in Public Sector Banks

Kavita Rani, Research Scholar, Kurukshetra University, Kurukshetra
Diksha Garg, Research Scholar, Kurukshetra University, Kurukshetra

ABSTRACT:
The process of financial development in India has hinged
effectively on the development of banking system. The
Indian banking industry is continuously going through a
process of transformation since nineties, due to the
introduction of Liberalization, Privatization and
Globalization (LPG), Information and Communication
Technology (ICT). The first objective of present paper is to
study existing status of training and development
programmes banks for their employees. The second
objective is to examine the effectiveness of training and
development programmes for employees in fulfillment of
their duties. Present research paper is of descriptive type
and based on primary data collected through
questionnaire filled by the bank employees. The present
paper explained some suggestions to enhance training and
development strategies, and to cope up with the existing
challenges in the wake of severe competition in the
training and development. The findings of the study
suggest that training and development is inevitable and
unavoidable in any sector.

Definitions of Training and Development

According to the Michel Armstrong, Training is
systematic development of the knowledge, skills and
attitudes required by an individual to perform adequately a
given task or job.
According to the Edwin B Flippo, Training is the act of
increasing knowledge and skills of an employee for doing
a particular job.
Dale S Beach defined Training is usually considered as
the organized procedure by which people gain knowledge
and increase skill for a definite purpose
Differences between Training and DevelopmentEmployee training is different from management
development or executive development. While the former
refers to training given to employees in the operational,
technical and allied areas, the latter refers to developing an
employee in the areas of principles, and techniques of
management, administration, organization and allied ones.

Keywords:

Area
Content

Training and Development, Banks, Human Resource

Management, Employees.

Purpose

TRAINING AND DEVELOPMENT

Training: The aim of any training programme is to
provide instruction and experience to new employees to
help them reach the required level of performance in their
jobs quickly and economically. For the existing staff,
training will help develop capabilities to improve their
performance in their present jobs, to learn new
technologies or procedures, and to prepare them to take on
increased and higher responsibilities in the future.
Development: Employee Development Programs are
designed to meet specific objectives, which contribute to
both employee and organizational effectiveness. There are
several steps in the process of management development.
These includes reviewing organizational objectives,
evaluating the organizations current management
resources, determining individual needs, designing and
implementing development programs and evaluating the
effectiveness of these programs and measuring the impact
of training on participants quality of work life.

Duration
For
Whom

Table No. 1
Training
Development
Technical skills and
knowledge

Managerial Behavioral
skills and knowledge

Specific and Job

related
Short term
Technical
and
non-managerial
personnel

Conceptual
and
General Knowledge
Long term
Managerial personnel

Training and Development in banks

In Banks, there is a need for the continuous training and
development of the staff in the areas of customer care
services on operational aspects and behavioral aspects of
the business. How are the needs identified? The training
needs are assessed through task analysis and performance
analysis, which can be conducted through surveys, or from
the information furnished by the heads of the departments,
customer complaints, even from the reports on 360 degree
feedback systems. In case of a large banks, there are two
ways of conducting training programmes through an
established department having a full time HRD
functionary who oversees all the training and development
functions of the Banks or through an external trainers
coordinated by the HRD department These days Banks

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 3, No. 1, January 2014

have recognized the need for training and re-training their

staff, in order to develop a competitive edge over their
competitors in delivering high quality services to the
customers.
Traditionally, banks have recruited young school leavers,
and their initial training was either long apprenticeship or
on-the-job or formal training in basic routine operations.
Aspirants to management position were encouraged to
qualify professionally by reading for associate-ship of the
Institute of Bankers or an equivalent qualification. It was
argued that banking requires exercise of sound training
and development programmes for their employees.

LITERATURE REVIEW
In every study a good literature review does not only
provide knowledge about what has been done in the
research area but also strengths and weaknesses upon
which one can also build an insightful and purposeful
study.
Jadhav (2013) studied the training and development
programmes undertaken by banks for their employees.
The main objectives of the present study were to analyze
effectiveness of training and development programmes for
employees to discharge their duties and to study how
training and development programmes helps to achieve
customer satisfaction. For this study primary data was
collected through questionnaire filled by the bank
employees. A sample of 40 employees is selected by the
use of random sampling from different banks like HDFC,
ICICI, Vijaya bank, Bank of Baroda, and Dena Bank
located in suburban area of Mumbai. It is concluded that
private and public Indian banks undertake training and
development programmes for their employees to increase
their efficiency. Banks provide training programmes to
enhance their knowledge and skills to satisfy the
customers. Growth of banking sector in India is the result
of skilled manpower which is the outcome of training and
development.
Ramakrishna et al. (2012) have studied that Human
Resource Development department has to play a more
proactive role in shaping the employees to fight out the
challenges. The banks not only have to make plans and
policies and devise strategies, the actual functionaries have
to show competence and effectiveness in executing the
said policies and strategies. A sample of 85 employees
covering all Canara bank branches in Kurnool District has
been considered for the study at random. The study
revealed that the employees have attended more training
and development programmes, employees strongly agreed
about the necessity of training and development
programmes, majority of the employees rated trainers
preparation as good, employees rated trainers creating

ISSN: 2319-4421

learning atmosphere and employees given overall rating

for training and development programmes.
Sthapit (2012) pointed out that the strategic human
resource development factors affecting the evaluation of
induction training effectiveness in Nepali banks. The study
was based on the survey which was conducted during FebMarch 2012 on 104 low and middle level managers of
Nepali development banks established from June 2001 to
June 2010. The study revealed that induction training as
most effective in terms of learning and least effective on
the behavior change criterion.
Purohit (2012) studied the existing policies practiced in
co-operative banks to appraise the level of HRD practices,
to assess the satisfaction level of employees about HRD
practices particularly Training and development & Reward
and recognition of employees. In the present study
structured questionnaire via in-depth personal interviews
is used to collect primary data. From large number of banks
in Pune region 16 are selected for the study. Information
was collected from 30 employees of different level. The
study adopted random sampling with regard to the
selection of cooperative banks. The study revealed that
training helps employees to gain better understanding in
the area of Job and this will enhance their stock of
knowledge. Extensive training providing the continuous
development, such as on-the-job training, training
programmes and workshops can be a driving factor for the
activities in the firm. The present paper also suggests the
ways & means by which the selected co-operative banks
can improve their high performances of work practices.
Srimannarayana M. (2011) in his study found that
Training and Development is very important component in
the modern Human Resource Management and the scope
of training and development vary from one organization to
another. The present study is based on primary data. Data
is collected from 105 HR/Training professionals working
in manufacturing, IT/ITES and service sector with a
minimum experience of three year in their respective
organization in the functional area of training and
development. The study revealed that more than 75% of
respondents have believed that performance improvements
made because of training is an extremely valuable measure
and 70.48% have believed that transfer of learning is
extremely important. Almost (95.24%) respondents have
mentioned that they collect feedback of the participants
after completion of the training programme routinely.
There is a gap between the measures that that are used
actually in assessing training and development and
HR/Training professionals do not have control over data
that is required for measuring training and development.
Mohanty (2011) explained how Liberalization,
Privatization and Globalization have changed the scenario
of corporate world and holds for us many challenges. In

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 3, No. 1, January 2014

this connection, the development of human resources is

putting newer challenges in business world. New skills
and abilities are needed to face these challenges and it is
possible by providing Training. Training is the strong
foundation of highly skilled and motivated human
resource. So, training is one of the most important tools in
Human Resource Development effort to improve overall
performance of an organization. Effective and suitable
training interventions can bring improvements and impact
in the working of organization significantly which help
employees to adopt new work practices for the success of
business. Through training an organization go green by
making employees more effective and productive.

ISSN: 2319-4421

RESEARCH METHODOLOGY
Present research paper is of descriptive type and based on
primary data collected through questionnaire filled by the
bank employees. The secondary data includes reference
books, journal, research papers and internet. Random
sampling of 40 respondents from employees from different
banks like SBI, Oriental Bank of Commerce and Punjab
National Bank located in urban area of Kurukshetra.

ANALYSIS AND FINDINGS

Nagar (2009) study the effectiveness of training

programmes being conducted by the commercial banks in
public as well as in the private sector. The area of study is
limited to the staff training centers of State Bank of
Bikaner & Jaipur and The Bank of Rajasthan Ltd. The data
is collected through a structured questionnaire containing
several questions relating to various aspects of training
programme. The focus of the study is mainly the opinions
of the trainees regarding various aspects of training like
course duration, library facilities, trainer, teaching &
computer aided programme and other infrastructural
facilities and the calculated t values are less than table
value of t, hence null hypothesis is accepted or hence there
is no significant difference in the opinion of respondent at
the two staff training centers.
Onattu (2005) explored that the need for qualified and
trainable employee is recognized as an important factor to
compete in the global market. This study was conducted to
generate information that can be used by industry, policy
maker and the consultants to develop appropriate training
initiatives. The present study was based on primary data
which collected with help of questionnaire filled by 50
respondents.
Raju (2005) conducted an opinion survey on the various
aspects of training like managements attitude, selection
process, quality of training, impact of training on
productivity & individual and post-training assessment in
different categories of banks in Coimbatore. A
questionnaire was formulated comprising various aspects
of training and opinion on the statements was sought from
154 employees of 24 banks in Coimbatore.

OBJECTIVES
1. To study existing status of training and development
programmes banks for their employees.
2. To examine the effectiveness of training and
development programmes for employees in
fulfillment of their duties.

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Table No. 2
Statements
Induction training is given adequate
importance.
Training programmes are well
planned.
Norms and values of the
organization are clearly explained
to new employees during induction
training.
Training programmes are
periodically reviewed and
improved.
Employees acquired technical
knowledge and skill through
training.
Training and development is based
on genuine needs.
Employees participate in
determining the training needs.
Training and development (T&D)
increase the skill of employees.
T&D enhance the quality of
services being performed by
employees.
T&D satisfy the ego of employees.
T&D enhance the efficiency and
effectiveness of the work being
performed by employees.
T&D minimize the faults in
operations.
T&D improve the leadership and
managerial skills.
T&D reduce the stress level of
employees.
Training and development stabilize
the organization.
T&D help employees in promotion
and other monetary benefits.

%Response of
employees
86% Very Good
89% Very Good
71% Very Good

90% Very Good

80% Good

79% Good
65% Good
89% Very Good
76% Very Good

79% Very Good

78% Very Good

81% Very Good

79% Very Good
73% Very Good
78% Very Good
72% Very Good

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 3, No. 1, January 2014

CONCLUSIONS
There is enough evidence to show that employees who
were trained on a regular basis are the ones who provide a
higher quality services to the customers. To develop an
integrated and proactive training and development strategy
there is requirement of coherent corporate culture rather
than ad-hoc programs. In a service oriented industry such
as banking, people are among the most important assets
and a bank must efficiently manage its employees during
every phase of employment in this competitive arena. It is
concluded that public sector banks undertake training and
development programmes for their employees to increase
their efficiency. Banks provide training programmes to
enhance their knowledge and skills to satisfy the
customers. Growth of banking sector in India is the result
of skilled manpower which is the outcome of training and
development.

REFERENCES
Books
[1] Kunjukunju Benson (2008), Commercial Banks in
India New Century Publication, New Delhi.
[2] Jankiraman B. (2009),Training and Development
Biztantra.
[3] Sangwan D. S. (2009),Human Resource
Management in Banks National Publishing House.
[4] Jyothi P. and Venkatesh D.N. (2006),Human
Resource Management Oxford University Press.
[5] Pande Sharon and Basak Swapalekha (2012),
Human Resource Management Pearson.
[6] Raj Aparna (2011),Training and Development
Kalyani Publisher.
[7] Haldar Uday Kumar and Sarkar Juthika
(2012),Human Resource Management Oxford
University Press.
[8] Rao P.L. (2004),Human Resource Management
Excel Publishing House.
[9] Shah et.al.(1984))Human Resource Management
in Banking Industry South Asian Publisher New
Delhi,.

ISSN: 2319-4421

Journals
[10] Jadhav Ajit (2013),A Study on Training and
Development in Indian Banks, ABHINAV National
Monthly Refereed Journal of Research in
Commerce & Management, Vol.1, No.1, pp34-39.
[11] Ramakrishna G., Kamleshwari, Kumar, M. Girdhar,
Krishnudu CH. (2012),Effectiveness of Training
and Development Programmes- A Case Study of
Canara Bank Employees in Kurnool District,
International Journal of Multidisciplinary Research,
Vol.2 No 4. Pp 150-162.
[12] Purohit Manisha (2012), An Evaluation of HRD
Practices Followed in Co-operative Banks in Pune
ACADEMICIA: An International
Region,
Multidisciplinary Research Journal, Volume 2,
Issue 8, pp 186-195.
[13] Gopal (2008),Effectiveness of Executive Training
Programs, The Indian Journal of Commerce,
Vol.6, No.3, pp143-150.
[14] Pathak Neetu (2008), Corporate Training
Programme- An Effective Instrument for
Organization, The Indian Journal of Commerce,
Vol.61, No.3, pp113-119.
[15] Saharan Teena (2010), Training for Employees
Major Constraints Automobile Industries are
Facing, Optimization, Vol.3 No.1, pp.88-99.
[16] Nagar Vaishali (2009),Measuring Training
Effectiveness, The Indian Journal of Commerce,
Vol.62, No.4, pp.86-90.
[17] Srimannarayana M. (2011), Measuring Training
and Development, The Indian Journal of
Industrial Relations, Vol.47, No.1, pp. 117-125.
[18] Sthapit Arhan (2012), Strategic factors in
evaluation of Induction Training Effectiveness an
exploratory study of Nepali bank managers
EXCEL International Journal of Multidisciplinary
Management Studies, Vol.2. Issue 8, pp.16-32.
Websites
[19] www.iba.org
[20] www.rbi.org
[21] www.bis.org

APPENDIX
Questionnaire on Training and Development in Banks
Dear Respondents,
) mark in the
Kindly go through this questionnaire and you are requested to answer by placing a tick(
appropriate response column on the right side of the questions .
Tick the option
Poor
(1)
Fair
(2)
Good
(3)
Very good
(4)
Excellent
(5)
This information is meant for only research purpose and I assure that the response recorded by you will be kept strictly
confidential.

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 3, No. 1, January 2014

ISSN: 2319-4421

Name of the employee:..

2. Designation: 3.Department:
4. Course attended:..
5. Duration: 6.From:.
7.To:..
1.

Tick the appropriate box:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Poor Fair Good Very good Excellent

(1)
(2) (3)
(4)
(5)
(1) (2) (3) (4) (5)
(1) (2) (3) (4) (5)

Induction training is given adequate importance.

Training programmes are well planned.
Norms and values of the organization are clearly
explained to new employees during induction training.
Training programmes are periodically reviewed and improved.
Employees acquired technical knowledge and skill through
training.
Training and development is based on genuine needs.
Employees participate in determining the training needs.
Training and development (T&D) increase the skill of
employees.
T&D enhance the quality of services being performed by
employees.
T&D satisfy the ego of employees.
T&D enhance the efficiency and effectiveness of the
work being performed by employees.
T&D minimize the faults in operations.
T&D improve the leadership and managerial skills.
T&D reduce the stress level of employees.
Training and development stabilize the organization.
T&D help employees in promotion and other monetary benefits.

(1)
(1)

(2)
(2)

(3)
(3)

(4)
(4)

(5)
(5)

(1)
(1)
(1)

(2)
(2)
(2)

(3)
(3)
(3)

(4)
(4)
(4)

(5)
(5)
(5)

(1)

(2)

(3)

(4)

(5)

(1)
(1)

(2)
(2)

(3)
(3)

(4)
(4)

(5)
(5)

(1)
(1)
(1)
(1)
(1)
(1)

(2)
(2)
(2)
(2)
(2)
(2)

(3)
(3)
(3)
(3)
(3)
(3)

(4) (5)
(4) (5)
(4) (5)
(4) (5)
(4) (5)
(4) (5)

Thank you for your kind cooperation.

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