Page 47 - Banking Finance March 2021

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who can make a difference and who can have an everlasting department becomes very vital in giving a vivid shape of its
impact on the survival and functioning of the organisations. organisation by identifying the right skills of its employees
The banking industry in India is all the more human nurturing them in the manner they could deliver their best,
intensive. No bank can run successfully unless the human for this a list of job duties, responsibilities, reporting
factors are managed well. During the last two decades, relationship, working conditions and supervisory responsible
Indian banking has undergone a metamorphic change. It is are made.
becoming important on the part of banks to have a hard
look in several aspects of management of human resources. Job Evaluation - The next step of human resource in the
banking sector is the implementation of job evaluation. The
It is the human resource which provides a competitive edge scope of application of a job evaluation programme is not
to banking. The changing profile of bank employees should only confined to the lower level of the hierarchy but is to be
be a vital reason for changing in HRM. There is very need applied to all sections. The jobs of clerical employees,
for a reorientation in HRM policies and practices so as to supervisory personnel and even more of executives can be
ensure that HRM is in line with the changing scenario of evaluated by using appropriate systems and plans.
banking industry.
Job evaluation is a process of determining the relative worth
Therefore, effective human resource management practices of a job. This process is advantageous to the banking sector
help the banks to march ahead and achieve the desired for the purpose of reduction in inequalities in salary
results. structure, introduction of standardization, helps in selection
of new employees and developing a harmonious relationship
The various functions of HR - Leading to between employees and manager. This helps a fair wage
policy in the entire system.
the ladder of success
Planning - First step of Human Resource in the Banking Commercial bank plays a catalyst role in the conversion of
sector starts with the planning process. It aims in projecting static credit into dynamic credit. As such the health of the
future man power requirements through the Human economy is influenced by the performance of banking sector.
Resource planning a management strives to have the right To fulfil these the next step of human resource in the banking
number and the right kind of people at the right places at sector is recruitment and selection. The progress of any
the right time. It also aims in doing the economic forecast, organisation depends upon the quality of people who works
the banking products sale expansion forecast and the in it.
employees market forecast.
Only a committed and qualified workforce will be able to
Job Analysis - The next step of human resource in the achieve the goals and targets set by the organisation
banking sector is Job analysis. The main purpose of therefore it is very important to place the right people in
conducting a job analysis is to prepare a description and job the right job, this is solely the work of the proper functioning
specification which helps to hire the right person with the of the human resource department of the banking sector
right skills, at the right place. It is basically a list of duties to adopt the best techniques available in order to embed
and responsibilities made in order to make oneself more the available post with the best suitable and deserving
competent enough to face the challenges with other banks. candidates.
The government controlled bank's focus was on maintaining
internal books of records and providing branch based Promotion and Transfer - Coming further in the process,
banking with less emphasis on marketing and cross selling. to establish a sound foundation to the banking sector the
next step of human resource department is channelizing a
This myth was changed with the introduction of private proper system of the promotion and transfers. Promotion is
banks which made use of their selling techniques of their advancement of an employee to a better job in terms of
products and with their aggressive marketing strategies higher responsibility, more prestige, greater skill and
including selling financial products to customers directly and increased rate of pay. Promotions are the major attractions
working longer hours. So, the role of human resource in the banking career. The spectacular growth of banking

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