Ever since Adam and Eve landed on this planet , training, in one form or the other
, has been playing an extremely significant role in man’s growth , development t and
advancement . In fact, what the Homo Sapiens today is, it has been solely
because oftraining in various forms and manifestations , changing their shapes
and the formats according to changing needs of a particular time and period in
the history of human civilization. The great Greek philosopher Plato (427-347
B.C.) once said: “The most important part of education is right training in
nursery.” Mark Twain (1835-1910) emphatically asserted: “Training is everything .
The peach was once a bitter almond. Cauliflower is nothing but a cabbage
with a college education” . John Ruskin (1819-1900), the renowned English critic,
essayist and social reformer, while talking ofeducation and training, made a very famous
observation: “Education is leading human
souls to what is best, and making what is best of them. The training which makes men
happiest in them also makes them most serviceable to others”. Daniel Defoe (1661-
1731), the well-known English author, once made a very meaningful comment: “A
true-bred merchant is the best gentleman in the nation.” He probably would have
meant that the right kind of up-bringing and proper training in life go a long way in
making an individual a true citizen conscious of his duties and obligations towards
country, society and mankind.
The concept of training has undergone a complete transformation, moving from sidelines
of peripheral activity to the centre-stage in all affairs of human activity,
particularly in business and corporate sector. As consequence of total metamorphosis,
it has emerged as most important tool of growth and development and has attracted
and engaged every body’s attention in the organization. Training is being accorded
the top most priority by the strategic managers, almost as a near panacea for all of
their ills and afflictions. The key- triggers that have forced and facilitated this ‘makeover’
can briefly be summarized as (i) Impact of globalization, liberalization and
privatization, (ii) Increasing global inter-connectivity, (iii) Newer and smarter
machines / systems and work-place automation, (iv) Computational world, (v)
Changing media ecology, (vi) Increasing global life-span affecting nature of careers
and learning, (vii) Stiffest ever cut-throat competition for market dominance, (viii)
New emerging areas of personal learning / learning portals, (ix) Cross-cultural
compulsions, assimilation and adjustments, (x) Consolidation becoming a key
social values / obligations, (xii) Changing face of job market nationally and
internationally, (xiii) Assessment of the training needs of both present future work
force. The collective and cumulative impact of these powerful catalysts on
transformation of training has led to the realization of the need for refinement /
improvement in its definition, format, modules and methods, contents, impact / effect,
reaction of the employees, evaluation of return on training investments and over-all
outcome in terms of productivity, profitability and competitive sustainability.
Formalizing informal learning, evolution and development of new job-skills, growing
focus on knowledge retention and up-gradation are some of the key targets of trainers
/ experts. The only stable thing in the vibrant earth is change and banking cannot be
excluded. Today, the basic approach of banking is going all the way through brisk
revolution in the world. Amend, acclimatize and change should be the key mantra.
The utmost efficiency in an organization’s health can be gauged by judicious and
exact recognition of training requirements which starts with the identification and
purpose of knowledge and skills necessary meant for. The foremost stride of an
organization’s training and development programme is training needs assessment
which identifies needs or performance requirements, find out whether there exists
some gap between the real and the standard performance put by the organization and
in case some difference is found, then training is the ultimate solution. Following the
needs appraisal, the training purpose are determined .i.e. who needs, areas, type of
training, etc. and then planning and implementation of training takes place. At the
end, it is determined whether the training objectives were achieved fully. Identifying
participant reactions toward the training, level of learning and the extent of
transferring the gains of training back to their respective jobs constitutes the
evaluation system. The training is said to have a positive and constructive impact on
employees’ performance when their following performance would be better than the
preceding, otherwise not.
Banking sector in India plays an extremely key role in nation’s economy. The State
Bank of India, being the principal Public Sector Bank, has been burdened with the
extra responsibility of discharging its obligation of Social Banking. However, with
the nationalization of major Indian banks in the mid 1960’s, followed by liberalization
policy in 1991, a lot has changed with the opening of other sectors including banking
and enormously greater than before competition from newer banks in the system.
Banks are beginning to make out Human Resources as the most powerful area of
nucleus competence and do their best to recruit, train and keep the finest of talents in
the industry. There is growing awareness that continuous skill-upgradation and
development is enormously vital not only for staff retention, quality of manpower and
both quantity and quality of output, but is also important for accelerated growth and
development of the entire organization. Banks are eager to attach with exterior
training group for in-house training by having tie-up with top universities and
business schools to help them in their scheme, while others have their own staff
colleges for training them. Inclusion of non-traditional activities like merchant
banking, mutual funds, new financial services and products, individual investment
counseling, etc have been included which has transformed the very business shape of
banks radically.
In nut shell, in the entire gamut of their diverse activities in the global challenging
scenario, banks have to bank on (i) acquiring of new and enhanced skills and their
regular periodical up-gradation, (ii) developing of new competencies and promptly
replacing old ones, (iii) adopting imaginative, innovative and creative techniques of
doing a job differently and (iv) recognizing and treating training function as the most
effectual organizational involvement by formulating a apparent strategy of training
and development within the frame-work of entire HR development.
Whether it is mobilization of savings and their investment, or disbursal of loans /
advances under different schemes and their timely recovery, or marketing of different
value-added products and services, or mutual funds, or portfolio management, or
N.P.A. management, or financial risk management, or customer satisfaction and
clientele retention or efficient management of FIIs, MNCs, and SME’s transaction or
mobile / e-banking, or IPR etc., training and development experts have a very definite
and positive role to play in this area
Meaning and Definition of Training
Going by the dictionary meaning given above, training means an activity, exercise,
effort or endeavor like the one that the gardener does to a tender plant, a mother to a
toddler, a father to a teenager, a mentor to a pupil, teacher to a taught, trainer to a colt,
R. K. Sahu (2007) has successfully attempted to identify and bring out the key
essentials that comprise training, in real sense term. According to him, the following
are the salient points of the concept of training:
i) The entire process of training consists of clearly defined parameters which has a
beginning and a specific end, with a perceptible forward movement. A properly
designed series of events, cautiously coordinated and merged into a pleasant,
incorporated and result-oriented package constitutes the whole gamut of training
activities.
ii) Training can be seen as a way of empowerment of the participants, engaging them
to make best possible use of opportunities made accessible to them for learning in
training programmes. Training induces behavioral changes in the area of knowledge
and competencies and emphasizes the relevance of their learning on the job front.
Right from its inception, the idea and concept of training has been on a long
unstoppable journey from antiquity to modern times, continuously evolving,
developing, expanding in tune with the changing needs of the time. Over the
centuries, the societies too have changed and have become more and more complex.
Training also kept often evolving so as to cope with extraordinary changes in the
amount, contents and difficulty of work.
As man invented tools, weapons, clothing, shelter, and language, the need for training
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were developed that served the needs of the times, evolving into accepted
instructional paradigms . These diverse forms of training practices were developed at
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different times, and some of them kept changing through the years, but most of them
are used even today, depending on the training needs and work- situations.
Need for Training and Development in Organizations –
Factors and Forces
Behind
The need for employee training and development may arise because of the following
issues and changes in an organization:
i) Rapid technological advancements/ innovations impacting workplaces and the need
for the work force to consistently update and upgrade their knowledge and skills
ii) Emergence of multi-dimensional horizons of functioning, demanding far greater
specialization.
iii) Metamorphosis of management functioning.
iv) Largely theoretical and non-practical college education affecting levels of gainful
employability..
v) Absence of proper and scientific selection procedures.
vi) Career-advancements and promotions.
vii) Generating higher morale, motivation and commitment.
viii) Increased productivity and profitability
ix) Making jobs more challenging, interesting and demanding
x) Deep desire and urge for personal growth and self-development
xi) Retention of already trained personnel
xii) Improving organizational climate
xiii) Elimination and prevention of obsolescence
xiv) Preparing for fulfill its future manpower requirements.
xv) Keeping pace with the changing times and business scenario
xvi) Bridging the gap between skills requirements and skills availability
xvii) Sustainability, survival and growth of the organization.
xviii) Nation’s overall growth and progress
xix) Employees requests
xx) Employees’ survey results
xxi) Identification, evaluation and removal of deficiencies in the existing system
xxii) Legal and regulatory changes
xxiii) Nurturing and developing new leadership chain
xxiv) Fresh entrants in the organization
xxv) Installing new equipments and machines
xxvi) Opting for new managers
xxvii) Introducing new programmes/policies
xxviii) Arrival of newer technologies
xxix) Reassignment compulsions
xxx) Safety and security imperatives
xxxi) Future manpower planning in anticipation of changing global scenario
xxxii) Response to changing social values
The Role of Training and Development in Banking Sector
Right from the dawn of the 20th century and particularly after the World War II,
training programmes became universal amongst the organizations in United States,
involving not only largest possible number of employees but also expanding the
contents of these programmes. In the 1910s, only a small number of big companies
such as Westinghouse, General Electric, and International Harvester had their own
factory schools which imparted practical skills to their entry-level workers. By the
1990s, nearly forty percent of the Fortune 500 companies had set up either a
commercial institution of higher education or a education hub. In the last few decades,
the companies being confronted with fast technical changes, continuously
multiplying home societal troubles, political upheavals and enormity of global
challenges which include hegemonic globalization, demographic shifts,
poverty/famine/draughts, conflicts/wars, and environmental disasters/catastrophes,
fierce economic competition , had no option but to go in for both extensive and
training for workers and human relations training for supervisors and managers, a
widening array of developmental, personal growth, and self-management courses.
Courses of this nature include office professionalism, time management, individual
contributor programs, entrepreneur, transacting with people, and applying intelligence
in the workplace, career management, and structured problem solving. Courses are
also offered on health and personal well-being, including safe diets, exercise, mental
health, injury prevention, holiday health, stress and nutrition. The contents of the
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modern training programmes world wide cover a vey huge canvas, quite
unprecedented in the history of their growth and development.
Inputs in Training and Development in Banking Sector
Any training and development programme ought to have inputs which facilitate the
participants to increase skills, information, learn intellectual concepts and help attain a
idea to glance into the future. The inputs should be as mentioned below:
1) Professional skills, including soft skills
2) Education and learning
3) Continuity of growth and development
4) Ethics and morality
5) Attitudinal adaptableness
6) Management and analytical skills
7) Social roles and responsibility
8) Environmental concerns
Benefits of Training and Development for the Banking Sector
The benefits of Training and Development are not only for the organizations but also
for their employees. These can be categorized as under:
of India,” which speaks of volumes of the importance and value of reading and
learning.
Addressing the company’s current and future leadership needs is a critical component
of every successful training and development programme. The companies must
constantly keep the three basic components i.e. needs analysis, learning and
leadership, in their mind. Rich dividends will be paid off now and for years to come
by investing strategically in the training programme since employees are the principal
business asset. According to Horace Mann (1796-1859), the great American
educationist, even the most competent teaching “has not a tithe of the efficacy of
training.” So powerful is this tool of transformation: - Never under-assess underestimate
and under-value such a precious and effective tool and change-catalyst.
Training programmers should increase performance and supplement the assistance of
the workforce. The vital goal of training is to build up appropriate aptitude in the
workforce internally. Training is neither a cure for all problems nor is it a misuse of
time. What is essential is an insight into what training can or cannot do and skill in
scheming and carrying out training successfully and economically. On one hand
stands the imperative need of training, on the other hand is the paucity of resources.
These lines are sharply drawn: while no promises can be ignored, at the same time no
waste is at all permissible.
The training procedure consists of three phases: First stage is Pre-training. This is also
known as preparatory phase. The second phase is that of Training in all its
components and combinations. The third phase is Post-training, which is also known
as “Follow-up” phase.
An advice that was heard recently, “You train until you don’t need to train anymore”
is an undeniable fact for a living organization.
Equipping the Organization for Training
For undertaking a training programme for its employees, the organization should
invariably provide itself to execute the training responsibility effectively. Briefly put,
this includes the followings:
i) Proper needs assessment and correct identification of the areas of training will help
in analyzing the strengths and weaknesses of the organization
ii) Imparting training to employees in all kinds of job skills required in the
organization.
iii) Undertaking a thorough study of the management of the training functions of
employers’ organizations which have attained brilliance in the field of training
programmes.
iv) Upgrading the organization's information/research/knowledge bases.
v) Increasing high quality training courses and study resources.
vi) Wherever absolutely essential, entering into planning with external expert persons,
agencies or institutions to devise and carry out training programmes.
vii) Acquisition of all kinds of essential training equipments needed for a particular
training programme.
A brief review of ‘terms’ would be perfectly in order:
Corporate ethics: This covers the worth of whole range of good behavior,
etiquette, politeness, respect, deliberation, individual decor and good bond etc. This
also includes discouraging gossips, controversies, personal work during office hours
and rush jobs etc.
Staff management and team building: Each and everyone in the organization
can achieve more and more through superior teamwork and ideal administrative
practices.
Time management: There is an old saying: ‘Time is money’. In fact, time is much
more than money in the present age. Training in time-management-skills not only
shows the importance of being specific but also underlines the importance of
delegation and prioritization in day-to-day functioning. Such trainings also teach how
to set quantifiable, realistic, pertinent and time-bound goals.
Safety and security: security training is significant not only when functioning
with weighty equipments/machines, risky chemicals, recurring activities, etc., but is
also helpful in avoiding assaults, etc.
Memory skills: The objective of this training highlights the procedure for better
response, preservation and remembers through audio and illustration learning modes
which helps to get better skills by employing all sanity, associating and subsequent
systematic review plans.
Unique skills: the organizations also teach extraordinary job-related skills, which
comprise of technology training, report writing, practical training, and excellence
assessments etc. At this point, it is important for an organization to choose a trainer
who is capable and efficient enough to make a affirmative distinction with his or her
teaching methodologies. The mission and the vision statements of the organization
should always be kept in view. This is a must in every case.
Objectives of a Sound Training and Development
Programme
Training does have a distinct and quantifiable impact on performance of its staff
irrespective of the volume or kind of an organization, business or industry, Research
has shown that productivity increases while training takes place. One should be
competitive which the key to achievement and sustainability. To face the cut-throat
competition we must train the workforce, keep them motivated and state-of-the-art
with industry trends and new technologies. the staffs can become valued assets of the
organization when they are equipped with new skills and knowledge.
The business objectives of any successful training programme always focus on the
following issues and aspects:
Enhanced output and excellence: Training can augment the excellence and
flexibility of a business’s services that meets both workers and employer wants by
nurturing (a) precision and effectiveness, (b) good quality work safety practices, (c)
enhanced customer satisfaction and (d) clientele retention. Most organizations provide
on-the-job training during induction itself.
The flow-on effect: The benefits of training can pour through to all levels of an
organization and reduce costs by (a) eliminating expenditure of time and resources,
(b) dropping safeguarding expenses of machines and equipments, (c) preventing
workplace hazards, (d) minimizing recruitment expenses by promoting of skilled
employees internally and (e) getting rid of the menace of absenteeism.
gaps required to be taken care of and how. It also examines new ways to do the work
that can eliminate the existing discrepancies or gaps from performance process.
Individual assessment analyzes how well an employee does a job and determines the
competence to perform novel or diverse jobs. It provides information on the areas and
types of training needed by individual employees. Appraisal and performance review,
Peer appraisal, Competency assessments, Subordinate appraisal, Client feedback,
Customer feedback, Self-assessment or self-appraisal are the methods used to
examine the individual need.
Level 2: Learning: This level measures the extent of learning and increase in the
knowledge by the trainees as a result of the training.
Level 3: Behaviour: Change in the behavior of the trainees and application of the
knowledge gained through training is evaluated at this level.
Level 4: Results: At this level, the final results and outcome of the training are
analyzed like increased production and profitability, higher morale, reduced waste,
increased sales, etc.
AN OVERVIEW OF THE INDIAN BANKING SYSTEM
“ The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases:
i) Early phase from 1786 to 1969
ii) Nationalization of Indian Banks and up to 1991 prior to Indian Banking Sector
Reforms.
iii) New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.
To make the write-up more explanatory, it would be in order to prefix the scenario as
Phase I, Phase II and Phase III. ”
Phase I
“ The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843), as independent units and called them
Presidency Banks. These three banks were amalgamated in 1920 and the Imperial
Bank of India was established which started as private shareholders’ banks, mostly
Europeans.
In 1865 Allahabad Bank was established and for the first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between
1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,
Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in
existence in1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small.
To streamline the functioning and activities of commercial banks, the Government of
India came up with The Banking Companies Act, 1949 which was later rechristened
as Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965).
Reserve Bank of India was vested with extensive powers for supervision over banking
in India as the Central Banking Authority. ”
Phase II
“ Government undertook major steps in Indian Banking Sector Reforms after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. It formed State
Bank of India to act as the principal agent of RBI and to handle banking transactions
of the Union and State Governments all over the country. Detailed below are the steps
taken by the Government of India to regulate Banking Institutions in the country:
i) 1949: Enactment of Banking Regulation Act.
ii) 1955: Nationalization of State Bank of India.
iii) 1960: Nationalization of SBI subsidiaries.
iv) 1961: Insurance cover extended to deposits.
v) 1969: Nationalization of 14 major banks.
vi) 1971: Creation of credit guarantee corporation.
vii) 1975 : Creation of regional rural banks.
viii) 1980: Nationalization of seven banks with deposits over 200 core.
After nationalization of banks, the branches of the public sector banks in India rose to
approximately 800%. The deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public enormous faith
and immense confidence about the sustainability of these institutions. ”
Phase III
“ This phase introduced many more products and facilities in the banking sector in its
reform process. In 1991, a committee was set up under the chairmanship of M
Narasimham which worked for the liberalization of banking practices. A number of
foreign banks and their ATM stations came up in the country. Efforts are on to give a
satisfactory service to customers. Phone-banking and net-banking were introduced.
The entire system became more convenient and swift. Time has been given more
importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, high foreign
reserves. ”
Nationalization of Banks in India
“ The nationalization of banks in India took place in 1969 during the Prime Minister
ship of Mrs. Indira Gandhi. It nationalized 14 banks then. These banks were mostly
owned by businessmen and even managed by them.
State Bank of India (SBI) was nationalized in July 1955 under the SBI Act of 1955.
Nationalization of Seven State Banks of India (formed subsidiary) took place on 19th
July, 1960. The State Bank of India is India’s largest commercial bank and is ranked
one of the top five banks worldwide. ”
in India, and has a presence in 19 countries, including India. ICICI Bank offers a
wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialized
subsidiaries in the areas of investment banking, life and non–life insurance,
venture capital and asset management. The Bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in United States, Singapore,
Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre
and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Their UK subsidiary has
established branches in Belgium and Germany. ICICI Bank's equity shares are
listed in India on Bombay Stock Exchange and the National Stock Exchange of
India Limited and its American Depositary Receipts (ADRs) are listed on the
New York Stock Exchange (NYSE). ICICI Bank started as a wholly owned
subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years
later, when the company offered ICICI Bank's shares to the public, ICICI's
shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an
equity offering in the form of ADRs on the New York Stock Exchange (NYSE),
thereby becoming the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In the next year, it
acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the
year and the next fiscal year, the bank made secondary market sales to
institutional investors. With a change in the corporate structure and the budding
competition in the Indian Banking industry, the management of both ICICI and
ICICI Bank were of the opinion that a merger between the two entities would
prove to be an essential step. It was in 2001 that the Boards of Directors of ICICI
and ICICI Bank sanctioned the amalgamation of ICICI and two of its wholly-
owned retail finance subsidiaries, ICICI Personal Financial Services Limited and
ICICI Capital Services Limited, with ICICI Bank. In the following year, the
merger was approved by its shareholders, the High Court of Gujarat at
Ahmedabad as well as the High Court of Judicature at Mumbai and the Reserve
Bank of India.
1.2 About ICICI Foundation: It was founded by the ICICI Group in early 2008,
with a view to carry forward and build upon ICICI Group's legacy of promoting
inclusive growth. ICICI Foundation seeks to promote inclusive growth in India
by contributing to the key enablers required for widespread participation in
economic opportunities in the country. Through focused initiatives in the
identified areas including primary healthcare, elementary education, skill
development and sustainable livelihoods and financial inclusion, ICICI
Foundation is working towards building capabilities and developing innovative
models that can be replicated and scaled up in future. ICICI Academy operates
under the aegis of ICICI Foundation. Except for the historical information
contained herein, statements in this release, which contain words or phrases such
as 'will', 'would', etc., and similar expressions or variations of such expressions
may constitute 'forward looking statements'. These forward-looking statements
involve a number of risks, uncertainties and other factors that could cause actual
results to differ materially from those suggested by the forward-looking
statements. These risks and uncertainties include, but are not limited to our
ability to obtain statutory and regulatory approvals and to successfully
implement our strategy, future levels of nonperforming loans, our growth and
expansion in business, the adequacy of our allowance for credit losses,
technological implementation and changes, the actual growth in demand for
banking products and services, investment income, cash flow projections, our
exposure to market risks as well as other risks detailed in the reports filed by us
with the United States Securities and Exchange Commission. ICICI Bank
undertakes no obligation to update forward-looking statements to reflect events
or circumstances after the date thereof. All reference to interest rates, penalties
and other terms and conditions for any products and services described herein
are correct as of the date of the release of this document and are subject to
change without notice. The information in this document reflects prevailing
conditions and our views as of this date, all of which is expressed without any
responsibility on our part and is subject to change. In preparing this document,
we have relied upon and assumed, without independent verification, the accuracy
and completeness of all information available from public sources. ICICI Bank
and the "I man" logo are the trademarks and property of ICICI Bank. Any
reference to the time of delivery or other service levels is only indicative and
should not be construed to refer to any commitment by us. The information
contained in this document is directed to and for the use of the addressee only
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