INTRODUCTION

Financial banking is the science of managing money and other assets pertaining to a specific business. We all know that banks offer basic loans, deposits and financial advice, but they also facilitate transactions on sophisticated financial instruments such as private equity, bonds and mutual funds. Most top performing candidates typically view careers in Banking as the pinnacle of achievement, and sectors such as treasury, equity trading, investment banking and private banking are viewed as the most lucrative jobs for new graduates. In addition to traditional banks, other financial institutions such as credit unions, trust companies, mortgage loan companies, insurance companies, brokerage firms and asset management firms also offer a host of financial advice. Hence, when viewing the opportunities in the sector, one must also carefully consider these other specialized financial institutions

Growth Potential There are a range of retail jobs to suit most skill sets, including banking officer, probationary officer, loan agent, assessor, mortgage loan underwriter, loan processing officer, accountant, product marketing and sales executive, and customer service executive among others. However, job security is not very high in retail banking as many players suffer from shrinking margins and poor customer retention due to increasing competition and limited market differentiation, leading to lay-offs. Meanwhile, there are also more skilled jobs available such as actuarist, equity researcher, forex trader, securities linked products developer and portfolio manager for those with the relevant knowledge and ambition. The biggest opportunity in this sector remains in improving information flow to customers. Hence, there is a growing emphasis on in-house research and market intelligence.

Future Prospects In the upcoming 12 months, hiring is likely to remain robust. Many banks are investing in training programs to upgrade worker skills to enhance their competitive edge in anticipation of the segment once more regaining its rightful place as the harbinger of development and progress.

Indian Banking Industry

Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

Current Situation Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

Human resource development is a process through which employees in an organization are assisted to realize their full potential for their present and future jobs. It involves long term perspective which visualizes change through involvement and ownership of such change by the participants. HRD believes that individual in an organization have unlimited potential for growth and development and that their potential can be built through appropriate and systematic efforts. HRD efforts have to be initiated organization wise, wherein everybody will have to take selfresponsibility for growth and optimization of performance. HRD is a process undertaken to promote the intellectual, moral, psychological, cultural, social and economical development of the person so that he contributes his best to the community and the nation. HRD process is facilitated by mechanisms like: v Performance appraisal system. v Potential appraisal and development. v Feedback and performance. v Career planning and development. v Training. v Organization development exercises v Reward. v Employees welfare and quantity of work life activities. v Human resource information systems. HRD IN BANKING SECTOR Todays increasing complex and volatile business environment characterized by globalization, liberalization and the transnational invasion ensures that managing would not be the same again. As we are in 21st century competitiveness in global market place presents the ultimate challenge to policy makers, business leaders and entrepreneurs in any industry, including banking. Those leaders would be successful who would manage the virtues of conflicting paradigms, rather than rely on single set of pre- determined theoretical right policies. This has created in its wake a need for adopting a proactive approach by bankers in all areas of organizational structure, administrative policies, and the most important the HRD. As a result the banks have to continuously strive to give new thrust and direction to equip its employees to meet the emerging challenges. Hence a systematic HRD strategy focused on people is essential. The need for HRD is all the more great in service-oriented institutions like banks. An efficient, effective and disciplined banking system helps the process of economic development as per the national priorities. It functions as catalytic agent for bringing about economical, industrial, and agriculture growth and prosperity of the country. The need for HRD in the banking institutions has continuously grown because of an effective role they play of social-economic development and upliftment of especially those people who are

neglected and deprived. Banks have a strong industrial relation orientation which necessitates more and more focus on improving the HRD efforts have to be there to influence people to use HRD for achievement of goals both business and social. The HRD policy in the banks has to act as an instrument to encourage employees to show creativity, to reach for excellence and finally to render better customer service, thus objectives of HRD in BANKS are: v Creating a climate of openness and trust. v Building a collaborative culture whereby every one is an important member of an effective team. v Preparing individuals for technological competence. v Psychological preparedness for willing participation in change implemen-tation. v Promoting human capabilities and competency in the organization. v Facilitating building of a strong character of honesty and integrity in performance. v Improving quality of work life. The challenges and problems thwarting the banking segment For a strong banking system it is necessary to go beyond the existing issues and benchmark against the best in the world. The problem starts with slow progress in privatization of public sector banks and restrictive FDI norms for public banks. There is also a conflict in the role of RBI as both supervisor and owner, which at many a time has led to corporate governance issues, he said. The HR policies, especially those relating to the tenure of CEOs of banks have not been conducive for continuity and long term planning in banks. On the positive side, technological changes have had immense influence in the recent past. It has brought a change in the service paradigm, with several new products to suit customer choice. Banks are gearing to become a one-stop shop for financial products in the future, And with RBI, ready to adopt international norms, much depends on the legal reforms which could help expedite the loan recovery, ease the exit procedures and inculcate better borrower ethics. The slow pace of recovery of bank dues has being one of the most prominent problems. The time has come to follow approach of rehabilitation of weak banks to start a reconstruction mode. Also, stringent and harsh penalties need to be enforced on willful defaulters. Indian banking is at a point of inflexion. They are facing intense competitive pressures like other sectors of industry and services. The challenge for the banking sector is not only to come on top of the competition, but also provide funds at internationally competitive rates. The recent initiatives of the finance ministry have largely accelerated the reform process. There is still much to be done by way of disinvestments and decontrol of public sector banks, introducing innovative banking, etc.

The primary apprehension of the bank should be to bring in proper integration of human resource management strategies with the business strategies. It should faster cohesive team work and create commitment to improve the efficiency of its human capital. More than operational skills today are banking call for these soft skills to attend the needs and requirement of the customers at the counter. Banks have to understand that the capital and technology-considered to be the most important pillars of banking are replicable, but not human capital, which needs to be viewed as a valuable resource for the achievement of competitive advantage. The long-term vision for Indias banking system is to transform itself from being a domestic one to the global level may sound far-fetched at present. To take up this industry to the heights of international excellence requires combination of new technologies, better processes of credit and risk appraisal, treasury management, product diversification, internal control, external regulations and human resources at the most. The main challenges faced by Banks in our country are the role played by financial instrumentation in different phases of business cycle, the emerging compulsions of the new prudential norms and bench marking the Indian financial system against international standards and best practices. There is a need for introduction of new technology, skill building and intellectual capital formation. The most important need in this service industry is naturally the HRD. During the early phase of banking development in India after independence, opportunities for employment of the educated man-power were relatively limited. This sector was the preferred employer for the educated persons in the country in addition to civil services. In recent years, this position has changed dramatically. Certain rigidities have also developed in HRD within the banking system as this system is public sector. Its hierarchical structure gives preference to seniority over performance, and it is not the best environment for attracting the best talent from among the young. How well Challenges are met will mainly depend on the extent to which the banks leverage their primary assets i.e., HR in the context of the changing economic & business environment. Many literature surveys reveal that a paradigm shift is taking place in the role of the HR function in these organizations. There is a real danger of the function itself being outsourced in most organization. The danger comes through the following shifts:
y y

y y

The line manger has become increasingly competent even to handle the matters. The government is seriously thinking of privatization and this leads to a governmentprotected system, to an environment where it has to be contended with market forces and large corporations with significant brand equity and also follow vastly different HR strategies & practices. Technology is eliminating routine paper activities. Virtual organizations are coming up.

HRD Practices in Bank:

Staff Meetings

Staff Meeting aims at group synergy, team building, open culture, family feeling and talent recognition which individually and cumulatively benefit the organizations.

Goals/Targets set for the unit/Bank is discussed in the monthly Staff Meetings conducted at all branches/units and action plan is drawn in achieving them.

The forum is being effectively utilized for harmonious functioning of all the branches and administrative units through greater involvement and collective contribution of all staff members.

II Brain Storming Sessions

This is a technique for generating ideas and suggestions on topics of relevance and also to provide alternate solutions to problems by simulative thinking and imaginative power of cross section of employees.

Corporate Topics are selected for each quarter and BSS are conducted in administrative offices/ braches on the topic during every quarter.

Worthy implement able suggestions emanated are circulated for necessary action.

III Study Circle

Concept of Study Circle aims at self development of employees by kindling the desire to acquire/update knowledge, information and experience.

Guest lectures/ Power Point Presentation / Group Discussions, etc are arranged on topics of general interest by inviting experts in the field.

Study Circle Meeting are conducted once in two months in administrative offices and once in a quarter in braches

IV Quality Circles
y

It is a time tested tool of Total Quality Management (TQM) which promotes team spirit, cohesive quality work culture, commitment and involvement of employees.

CHALLENGES FACED BY THE BANKS: 1. The real challenge of this sector is the Indian companies, how to transform into global corporations without losing the positive values and culture that they have developed. 2. As most part of the jobs in this industry is monotonous/repetitive and routine, the HRD Department has to empower, engage and energies employees to create effectiveness & efficiency through motivation organizational structures, systems & procedures are facilitators of these, and there is a need to focus greater attention on these aspects by the industry. 3. However, the emergence of a core and peripheral workforce in many organization has presented new challenges for HR managers public & private sector organizations are fast becoming diverse communities for core workers, flexibly employed casual and part-time workers, consultants, contractors & business partners. 4. Certain rigidities have also developed in HRD within this banking system itself because this industry is largely in the public sector. SUGGESTIONS:

Following suggestions are very essential to adhere for effective Banking Administration: 1. 2. 3. 4. HR functions to be linked to corporate goals. Shift from Industrial relations manager to Business manager or Commercial manager. Team work is another important and essential soft skill that is necessary in this industry. The HR Professionals have to introduce &improve the adaptability of their structure that will be able to absorb, draw and retain the best. 5. As people are primary asset, it is essential not only to invest in them, but also to ensure that the supporting elements for this asset are such that it can provide the maximum value on a sustainable basis. 6. HRD is to be regularly reviewed against business outcomes as part of strategic and operational planning. 7. To overcome the public sectors hierarchical structure, which gives preference to seniority over performance, is not the best environment to attract the best talent from among the young. RECOMMENDATIONS 1. It is worthwhile to consider broad-basing the courses conducted in these institutions among other higher level educational institutions, so that specializations in the area of banking and financial services becomes an option in higher education curricular. 2. There is a need to adopt global best practices in financial sector regulation and supervision and adapt them to the domestic environment. This largely depends on the functioning and policies of public institutions, such as the RBI as it is increasingly subject to public discussion and debate. 3. This calls for greater transparency more effective communication, and a high degree of professionalism in the banks staff, are the need of the hour. 4. Continuous up gradations of human resources management strategies with a view to enhancing the level of knowledge, sharpening skills are and also to important the necessary and work culture must be installed. 5. There is a pressing need to develop work practices which encourage efficiency in this banking sector. 6. Incentive structures need to be conceived, supported by appropriate training and motivations, which aligns the employees goals and orientations with the core competencies and strategic advantages of the institution 7. This service sector has to explore the feasibility of entering into collaborative arrangements with universities and other institutions in India and abroad to identify and provide specialized training in the financial services industry with an ongoing flow of emerging training packages. 8. Information technology is an area where human resources development is critical fortunately, Indian professionals are world leaders in this area and spirit of co operation and partnership between them in banking industries will result in a strong and modern financial system comparable to the best in the world. 9. This committee recommended a system of recruitment from open market, including lateral induction of experts.

Conclusion: In a nutshell, it is felt that, the changing environment, the forces of globalization and liberalization and the advances in information and communication technology have major HR implications for the RBI as well. Financial products are becoming increasingly complex and diverse, while the markets in which they trade get progressively deregulated. It also possesses both opportunities & threats particularly for this public sector banks.

HRD in banks is more than just pay

Posted on September 30, 2010 | Author: T T Ram Mohan | View 732 | Comment : 15

Overemphasising pay is an affliction of the private sector. In this respect, as well, a public sector bank must compete by being itself, not by becoming a pathetic clone of the private sector.

At a recent conference on banking, I was asked what the three priorities for public sector banks (PSBs) should be. My impulse was to say that they should simply focus on HRD. But, then, I happen to be at a business school. I had to sound like to a management guru. I found myself saying with a flourish, Public sector banks should have three priorities: HRD, HRD, HRD. I wasnt being facetious at all. The HRD challenges at PSBs are daunting. A combination of favourable factors rapid economic growth, sound regulation and supervision, the inherent strengths of the old guard at the banks, the absence of fullblooded foreign competition has masked their weaknesses and sustained them thus far. But banks must not count on a continuous run of good luck. They need people of good quality at all levels to be able to cope with challenging times. Last October, the government constituted a committee to go into the HR issues at PSBs. It was headed by A K Khandelwal, former chairman of Bank of Baroda. The committee submitted its report in June this year. I received a copy last week. The report has some very good ideas but also some flawed ones. The good ideas are about the nuts and bolts of HRD recruitment, training, career planning, etc. The flawed ideas are about incentives. Let me focus on the latter because these have the potential to cause harm, if accepted. The committee wants PSBs to introduce performance-linked incentives. Total incentives should not exceed 2% of average net profit over the past two years and it should be limited to the 25% top performers.

The incentive amounts would vary from 30% of annual basic pay at the junior level to 70% at the top executive level. The chairman of SBI should be given an incentive payment of . 35 lakh. CMDs of other PSBs would get incentives in the range of . 18-25 lakh; executive directors . 1015 lakh. Stock options should be given to the top 15% performers. The committees focus on variable pay is dead wrong. Pay in the public sector certainly needs to be improved. But the way to do this is not to introduce variable pay. It is to improve the basic pay. PSBs are unable to do this because the basic pay of CMDs cannot exceed that of the highest official in government. They are unwilling to do it because they think it would mean a substantial increase in pay across the board, which could be unaffordable. So, today we have a modest incentive system for CMDs and EDs (of up to . 10 lakh or so), which is just a covert means of improving their pay. Variable pay is not the answer to this problem. The problem must be tackled head-on. The government must relax its insistence on parity in fixed pay between government and public sector companies. Salaries of CMDs can be pegged in the range of, say, . 30-50 lakh. An improvement in wages at the non-executive levels can also be negotiated subject to the officer-to-clerk ratio going up. But the unions must accept a higher disparity in wages between the executive and non-executive levels. Executive pay at PSBs is out of sync with the market whereas non-executive pay is not. Why would a higher fixed pay be better than a variable pay scheme? Because the measurement of performance, difficult even in the private sector, can be a nightmare in the public sector. Banks operate across widely differing geographies, executives often have to pursue noncommercial objectives. PSBs do not have in place systems that can accurately capture all costs at the branch or product level. They cannot track a managers contribution to return on risk-adjusted capital, which is the only meaningful measure on which incentives can be based. Performance in a bank can be measured only over a long period. Hence, the best way to reward performance is not through annual cash incentives but through periodic promotion. How, then, do PSBs distinguish between performers and non-performers? There are a number of carrots other than performance-linked pay that can be deployed accelerated promotion, foreign postings, deputation to subsidiaries (for which period the higher pay at subsidiaries can be made applicable), assignment to a high-quality training programme, a paid holiday with family, etc. There is one thing the public sector must never do in its bid to attract and retain talent and that is

ape the private sector. Performance-linked pay will destroy the ethos of the public sector. Limiting cash incentives every year to a select few will create demoralisation in the work force. Top management will be swamped with complaints and petitions. It is a prescription for paralysis. The public sector must compete by offering a different model, a different lifestyle, one that combines job security, dignity, challenge and pension. PSBs can also introduce generous post-retirement medical benefits as a tool for retaining talent, as some public enterprises already do. Will these suffice? Can PSBs attract talent? Well, the question has already been answered in a way over nearly two decades of deregulation. PSBs have hugely improved performance. Attrition is lower than in the private sector. If pay were such a big factor, the PSBs should have been wrecks by now. HRD is more than just pay. PSBs are what they are because of the tradition of hiring probationary officers and creating career paths for them. This tradition, which was interrupted by a freeze on recruitment through the 1990s, must be restored. The report highlights several other areas that cry out for improvement. Focusing on these can make a bigger difference than variable pay. PSBs badly need succession planning at the top. The game of musical chairs for the chairmans post must end. Today, executive directors bide their time in the hope of vaulting on to a CMDs job in another bank. CMDs hop from a small bank to a bigger bank. Loyalty, continuity in management and an understanding of culture are all disregarded. There must be scope for people within a bank to rise to the top. It is easy to overemphasise pay in HRD. That is an affliction of the private sector. The public sector must not fall prey to it. In this respect as in others, the public sector must compete by being itself, not by becoming a pathetic clone of the private sector.

Human Resource Development (HRD) has assumed considerable importance in the recent years. Be it a business organization, or a bank or a common office, the development of the

human resources is necessary for its efficient and effective working. In an evolutionary process when to attain higher level of living, it can hardly overlook the need of developing its human resources to meet higher and overdeveloping new challenges of raising the level of the masses. A country living in villages should clearly understand the need of HRD in all those organizations that seek to lubricate the wheels of progress in the villages. It is this realization that the banks are enhancing the competencies of their personnel by providing them with more and more training and development opportunities, maintaining good interpersonal relationship and also creating an atmosphere of trust and confidence. Therefore the present study confines to such two financial institutions that are involved in the economic transformation of rural areas. These two institutes are Jammu Rural Bank (JRB) and Jammu Central Cooperative Bank (JCCB) where it is highly essential that the demand for HRD is fully met so that better services are provided to the needy rural masses. Therefore, the present study is conducted empirically to examine the bank personnel competence as per the judgement of bank customers and executives through self developed questionnaires. The study also emphasizes on the prevailing HRD climate in the banks that is evaluated as per the opinions of bank personnel. Accordingly the whole research study is presented into eight chapters. Thus this research will prove to be useful to the researchers and a guideline to the rural banks for adopting various policies and programmes to enhance the competence level of their personnel.

The primary apprehension of the bank should be to bring in proper integration of human resource management strategies with the business strategies. It should faster cohesive team work and create commitment to improve the efficiency of its human capital. More than operational skills today are banking call for these soft skills to attend the needs and requirement of the customers at the counter. Banks have to understand that the capital and technology-considered to be the most important pillars of banking are replicable, but not human capital, which needs to be viewed as a valuable resource for the achievement of competitive advantage. The long-term vision for Indias banking system is to transform itself from being a domestic one to the global level may sound far-fetched at present. To take up this industry to the heights of international excellence requires combination of new technologies, better processes of credit and risk appraisal, treasury management, product diversification, internal control, external regulations and human resources at the most. The main challenges faced by Banks in our country are the role played by financial instrumentation in different phases of business cycle, the emerging compulsions of the new prudential norms and bench marking the Indian financial system against international standards and best practices. There is a need for introduction of new technology, skill building and intellectual capital formation. The most important need in this service industry is naturally the HRD. During the early phase of banking development in India after independence, opportunities for employment of the

educated man-power were relatively limited. This sector was the preferred employer for the educated persons in the country in addition to civil services. In recent years, this position has changed dramatically. Certain rigidities have also developed in HRD within the banking system as this system is public sector. Its hierarchical structure gives preference to seniority over performance, and it is not the best environment for attracting the best talent from among the young. How well Challenges are met will mainly depend on the extent to which the banks leverage their primary assets i.e., HR in the context of the changing economic & business environment. Many literature surveys reveal that a paradigm shift is taking place in the role of the HR function in these organizations. There is a real danger of the function itself being outsourced in most organization. The danger comes through the following shifts:
y y

y y

The line manger has become increasingly competent even to handle the matters. The government is seriously thinking of privatization and this leads to a governmentprotected system, to an environment where it has to be contended with market forces and large corporations with significant brand equity and also follow vastly different HR strategies & practices. Technology is eliminating routine paper activities. Virtual organizations are coming up.

HRD Practices in Bank:

Staff Meetings

Staff Meeting aims at group synergy, team building, open culture, family feeling and talent recognition which individually and cumulatively benefit the organizations.

Goals/Targets set for the unit/Bank is discussed in the monthly Staff Meetings conducted at all branches/units and action plan is drawn in achieving them.

The forum is being effectively utilized for harmonious functioning of all the branches and administrative units through greater involvement and collective contribution of all staff members.

II Brain Storming Sessions

This is a technique for generating ideas and suggestions on topics of relevance and also to provide alternate solutions to problems by simulative thinking and imaginative power of cross section of employees.

Corporate Topics are selected for each quarter and BSS are conducted in administrative offices/ braches on the topic during every quarter.

Worthy implement able suggestions emanated are circulated for necessary action.

III Study Circle

Concept of Study Circle aims at self development of employees by kindling the desire to acquire/update knowledge, information and experience.

Guest lectures/ Power Point Presentation / Group Discussions, etc are arranged on topics of general interest by inviting experts in the field.

Study Circle Meeting are conducted once in two months in administrative offices and once in a quarter in braches

IV Quality Circles
y

It is a time tested tool of Total Quality Management (TQM) which promotes team spirit, cohesive quality work culture, commitment and involvement of employees.

CHALLENGES FACED BY THE BANKS: 1. The real challenge of this sector is the Indian companies, how to transform into global corporations without losing the positive values and culture that they have developed. 2. As most part of the jobs in this industry is monotonous/repetitive and routine, the HRD Department has to empower, engage and energies employees to create effectiveness & efficiency through motivation organizational structures, systems & procedures are facilitators of these, and there is a need to focus greater attention on these aspects by the industry. 3. However, the emergence of a core and peripheral workforce in many organization has presented new challenges for HR managers public & private sector organizations are fast becoming diverse communities for core workers, flexibly employed casual and part-time workers, consultants, contractors & business partners. 4. Certain rigidities have also developed in HRD within this banking system itself because this industry is largely in the public sector. SUGGESTIONS: Following suggestions are very essential to adhere for effective Banking Administration: 1. 2. 3. 4. HR functions to be linked to corporate goals. Shift from Industrial relations manager to Business manager or Commercial manager. Team work is another important and essential soft skill that is necessary in this industry. The HR Professionals have to introduce &improve the adaptability of their structure that will be able to absorb, draw and retain the best. 5. As people are primary asset, it is essential not only to invest in them, but also to ensure that the supporting elements for this asset are such that it can provide the maximum value on a sustainable basis. 6. HRD is to be regularly reviewed against business outcomes as part of strategic and operational planning. 7. To overcome the public sectors hierarchical structure, which gives preference to seniority over performance, is not the best environment to attract the best talent from among the young. RECOMMENDATIONS 1. It is worthwhile to consider broad-basing the courses conducted in these institutions among other higher level educational institutions, so that specializations in the area of banking and financial services becomes an option in higher education curricular. 2. There is a need to adopt global best practices in financial sector regulation and supervision and adapt them to the domestic environment. This largely depends on the

3. 4.

5. 6.

7.

8.

9.

functioning and policies of public institutions, such as the RBI as it is increasingly subject to public discussion and debate. This calls for greater transparency more effective communication, and a high degree of professionalism in the banks staff, are the need of the hour. Continuous up gradations of human resources management strategies with a view to enhancing the level of knowledge, sharpening skills are and also to important the necessary and work culture must be installed. There is a pressing need to develop work practices which encourage efficiency in this banking sector. Incentive structures need to be conceived, supported by appropriate training and motivations, which aligns the employees goals and orientations with the core competencies and strategic advantages of the institution This service sector has to explore the feasibility of entering into collaborative arrangements with universities and other institutions in India and abroad to identify and provide specialized training in the financial services industry with an ongoing flow of emerging training packages. Information technology is an area where human resources development is critical fortunately, Indian professionals are world leaders in this area and spirit of co operation and partnership between them in banking industries will result in a strong and modern financial system comparable to the best in the world. This committee recommended a system of recruitment from open market, including lateral induction of experts.

Conclusion: In a nutshell, it is felt that, the changing environment, the forces of globalization and liberalization and the advances in information and communication technology have major HR implications for the RBI as well. Financial products are becoming increasingly complex and diverse, while the markets in which they trade get progressively deregulated. It also possesses both opportunities & threats particularly for this public sector banks.

PROGRAMME DESCRIPTION The Human Resource Management Programme in the Bank sector has been designed for HR professionals and senior managers in the banking industry. The programme blends a number of

areas of academic knowledge in organisational analysis, HR and knowledge management, all of which will be examined and reviewed within the context of working in the Banking Sector. The programme content provides comprehensive coverage of the major HR responsibilities, addressing both strategic and operational aspects. The programme involves practical and theoretical considerations in the professional development in the field of HR, specifically in the Israeli experience of Human Resource management in the banking sector. Another benefit of the programme is the opportunity it affords to meet and exchange ideas with colleagues from all over the world. Through intensive discussions with classmates, case studies and workshops directed by expert faculty members, and meetings with HR Executives of the Israeli bank system, participants will also learn how to implement the latest HR developments in the most beneficial way. OBJECTIVES The goal of the HR management training programme is to prepare human resource professionals who work in the Banking Sector to deal with the complexities and challenges of managing today's workforce. They will also be exposed to the changes in labour relations between the Executive and Unions over the past few years in the Israeli banking system. Participants will acquire knowledge about the latest practical tools of HR together with having enhanced their capacity to: Determine and manage the strategic role of the HR function Use problem solving, analytical and interpersonal skills that can be transferred, with confidence, to the Banking sector Create and implement initiatives and procedures in response to internal and external pressures on the organisation Identify HR problem areas which are unique to the Banking Sector and provide alternative solutions that facilitate successful management processes PARTICIPANTS The Programme is designed for high-ranking Directors of Human Resources in Banks, who are challenged by the rapid transformation of banking both globally and locally. Galillee College, Israel jointly with the Israel Association of Banks has developed a special Human Resource Management Programme for the Banking sector with the above participants in mind. Our objective is to equip HR bank executives with the knowledge they require in order to tackle challenges effectively and the tools to foster motivation and creativity among their workforce, based on the Israeli experience in banking. CURRICULUM The study programme includes the following subjects: Strategic HR Management Managing Strategic Change

Conflict Resolution Globalisation and its impact on Human Resources management in Banks Customer Services in the Banking System (CRM) Synergetic Decision Making Leadership as a key factor in Human Resources Development Team work Specific topics in HR: - Recruitment and selection in the banking system - Employee development and Training - Benefits and Compensation - Employee Evaluation