Hr Practices in Private Sector and Mnc Banks
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HR PRACTICES IN PRIVATE SECTOR AND MNC BANKS
Indian banking sector, especially commercial banks, have started realizing the need for a strong human resource orientation for their survival in the face of the rapid changing environment, global competition and other upcoming challenges. With attrition becoming a stark reality in the Indian banking sector, it is increasingly being understood that employee loyalty has to be created by organizational interventions and not something that can develop on its own.
It is in this backdrop, it is an important topic to consider shaping your HR policies and practices around the workforce.
Indian Banking Industry
The banking sector in India is an integral part of countrys financial services industry. The banking index has grown has grown at a compounded annual rate of over 51 per cent since April 2001.
The strong banking structure has been able to fuel continued growth, which has prospered long-term economic growth. Market cap of Indian banking industry 7500 Billion contributing to 7.7 % of GDP
Human Resource Management Practices in India
Indian banking sector is making efforts to adopt international best standards in HRM with the local customs and sensibilities.
HRM function in a bank is being increasingly recognized as a strategic business partner with responsibility of managing key corporate resources.
It is expected that HR Function must:
Help the organization to be more agile by adopting practices that allows it not only to adapt to changes in the external environment but also to benefit from the same.
Ensuring that the company is able to sustain its operation over a period of time.
Ensure efficiency in the use of HR resources in the organization in an integrated manner with all other corporate resources.
The success of any business depends as much on appropriate, effective, well-communicated, HR and business practices as it depends on meeting the requirements of mandated laws and regulations. In fact, good planning and the development of effective practices make regulatory compliance much easier.
HR practices helps in increasing the productivity and quality, and to gain the competitive advantage of a workforce strategically aligned with the organizations goals and objectives. Organizations are becoming increasingly aware about the impact of generation gaps in the interaction between the various parts of its workforce. With increasing globalization, the diversity (both geographical as well ethnic) is on the rise in the organizations operating on a global scale. At the same time, the composition of the workforce itself is changing and different generation groups, with differing viewpoints on the same subject, are required to work together. This requires adjustments to be made by all categories. Organization must facilitate such adjustments by creating enabling environments so that the needs of all generation groups are satisfied, simultaneously with the achievement of the organizational goals. At minimum, the organizations must be aware about the diversity of generation groups within its ranks and tailor their personnel practices accordingly.
1.3 Key Performance Indicators for HR Practices
Some of the key performance indicators for Human Resources include but are not limited to the following.
* Employees clarity on HR policies
* Employees clarity on roles, responsibilities and expectations
* Development of qualitative staff
* Number of HR issues arising for which there are no clear policies and guidelines
* Competitiveness of compensation structure relative to industry benchmark
* Usefulness and accuracy of compensation survey
* Lead time to respond to staff welfare issues
* Employees assessment of promotion criteria and process (clarity, fairness)
* Measurement of HR policy violation
* Average time required to fill vacancies
* Proportion of training programs resulting in productivity improvement
* Staff attrition rate
* Understanding / Clarity of the Organizational philosophy
* Outline internal capabilities and identify gaps on skills-competencies-behavioural aspects
In response to the change in the business environment, the competencies required by HRM present in any Indian or MNC banks are necessary to be studied.
Objective of Study
HRM department depends upon the HR practices of the organization. HRM is done according to HR practices.
HR Practices differentiate the organization from its competitors by effective and efficient HR Management. By following this, the organization does its whole work process. HR Practices increase productivity and quality, and help gain the competitive advantage of a workforce strategically aligned with the organizations goals and objectives.
In addition to aforesaid goals following are our additional objectives:
Literature review
Various online journals on HR practices were referred. Along with it articles on different banks were also referred for the purpose of this project.
Methodology
Secondary data from books and internet resources were used for reference to write this report
Analysis and discussion
HR practices differ from one organization to the other. Even though the concept remains same its implementation differs from each because of the difference in its policies. Hence the analysis on the concept of HR practices and its implementation is carried out for three main multinational banks which include ICICI, Citi bank and HSBC. Their HR practices along with its approach towards HR, the different ways of implementation and innovative changes brought about by them in its policies are discussed for each of these banks mentioned above in detail.
Hong Kong Shanghai Banking Corporation Holdings
HSBC