JBIMS – MHRDM – 2nd Year, II Semester

(2007-08)

Subject : Manpower Planning

Submitted By:

Arun G. Rane
The following are the salient aspects of the XYZ Bank’s Human Resources agenda.

 Building intellectual capital.

- Philosophy – to create a motivated pool of professionals by grooming internal resources and recruiting the right
skills from the market.
Strategy
a. Recruitment strategy
b. Rewards strategy
c. Retention strategy
 Designing an organization structure that enables effective implementation of business strategy.
 Developing a high performance work ethic.
 Creating a culture of continuous learning.

Within the contours of the above agenda, the Human Resources Department has been providing critical support to the Zones
and the Business and Support Departments at Central Office in the following key areas: -

1. Talent Acquisition and Management

2. Management of Performance
3. Training and Skill Development
4. HR Operations
5. Retirals and other Benefits Administration
6. New HR Initiatives
 “HR Planning means planning of skills and competences needed as well as total headcounts”

In XYZ Bank the HR planning is done after considering various elements. The same can be depicted as per chart given below:

Model of HR Planning accepted by XYZ Bank

Staffing

External Laws regulating

Employment Training
Environme
PMS

Compen-
-sation
HR
Corporate Business Strategy
Strategy unit Employee
Strategy Relations

Welfare
HRMS
Internal Exit Policy
Environment
Strategic Partner Succession
According to Dale S Beach, “Human resource planning is a process of determining and assuring that the organization will have
an adequate number of qualified persons, available at proper times, performing jobs which meets the needs of the enterprise
and which will provide satisfaction for the individuals involved”.

Strategic focus

Strategic Partner
Change Agent
Systems People

Administrative Employee
expert Champion

Operational focus

Strategy • How do we work toward our objectives?

Structure • How should we be organised?
Systems • What will be our procedures?
Staff • What staff do we need?
Skills • What competencies do our staff need?
Style • How should we
Values manage/communicate/motivate?
• What beliefs do we share?
 9 Strategies adopted by HR Dept for manpower planning.

1. To collect, maintain and interpret relevant information regarding human resources I.e. employees of the XYZ;
2. To report periodically manpower objectives, requirements and existing employment and allied features of manpower;
3. To develop procedures and techniques to determine the requirements of different types of manpower over a period of time from
the standpoint of organization’s goal:
4. To develop measures of manpower utilization as component of forecasts of manpower requirements along with independent
validation
5. To employ suitable techniques leading to effective allocation of work with a view to improving manpower utilization;
6. To conduct research to determine factors hampering the contribution of the individuals and groups to the organization with a
view to modifying or removing these handicap;
7. To develop and employ methods of economic assessment of human resources reflecting its features as income-generator and
cost and accordingly improving the quality of decisions affecting the manpower;
8. To evaluate the procurement, promotion and retention of the effective human resources; and
9. To analyze the dynamic process of recruitment, promotion and loss to the organization and control these processes with a view
to maximizing individual and group performance with out involving high cost.

COMPONENTS OF HUMAN RESOURCE PLANNING in XYZ Bank

 Manpower Planning.
 Recruitments and selection .
 Training & Development.
 Performance management.
 Compensations & Benefits.
 Employee Relations.
 Welfare Activities.
 Exit Analysis.
 Succession Planning
Recruitment Strategy

A. In India Recruitment
The responsibilities for domestic recruitment are divided between the Central Office and the Zones. All recruitments take place
through a rigorous selection procedure. Shortlisting of applications is done with emphasis on academic background, domain
knowledge and age profile. The structured interview aims to ensure that the candidates are the right fit in terms of quality,
adaptability and culture. With a view to lending consistency and uniformity to the selection process and avoiding major
anomalies or inter-se disparities in grades and compensation, all interview panels irrespective of function or geography consist
of an HR representative in addition to at least two line managers. From the current year, in some of the larger departments
dedicated HR resources with thorough understanding of the business have been placed to ensure optimum efficiency in terms of
turnaround time and other aspects of service delivery.

B. Overseas Recruitment

We have engaged reputed international search firms and interviews are conducted for critical positions by a panel of Senior
Management functionaries. Compensation is customized on a case-to-case basis.

The ultimate aim of the recruitment process, both in India and abroad, is to bring in a pool of talent that will enhance the quality
of our human capital and create a focussed, committed and knowledgeable workforce.
HR Planning System Adopted by XYZ Bank
TALENT MANAGEMENT

The fairly easy availability of alternative job opportunities in the XYZ Banking and financial sector underlines the critical need to
harness the available talent pool. Talent Management therefore has emerged as a growing challenge over the years.

The strategy of talent management rests largely on developing a high performance work ethic. The XYZ Bank has effectively
used the following tools in this regard: -
1. A performance oriented work culture.
2. A scheme of financial rewards in the form of variable pay and grant of ESOPs linked entirely to performance.
3. A merit-based system of promotion which takes into account performance round the year as well as in an interview by an
independent panel.
4. A hierarchical organisational structure ensures rapid career progression thereby serving as an important motivational tool.
5. A staff welfare fund has been created primarily for providing financial assistance in cases of hospitalisation of self and
dependants over and above the entitlements under Mediclaim.
6. The fund is also used to finance participation of XYZ’s staff in various sporting activities that ultimately lead to a better
work-life balance. The XYZ’s cricket team has participated in prominent inter-office tournaments while in-house tournament
have been arranged for our staff which have been a huge success.

MANAGEMENT OF PERFORMANCE

All functions and roles across the XYZ Bank have been clearly mapped and Basic Responsibilities (BRs) and Key Result Areas
(KRAs) for each function have been set and weightages assigned. This was done through a XYZ Bank-wide intervention by the
Human Resources Department with the objective of lending complete transparency and objectivity to the process and ensuring
uniformity in appraisal across roles. The highlight of this year’s PMS exercise is that the entire process has been put on-line
through software specially designed in-house. This has been done to build in greater accuracy and to cut down on turnaround
time in the process.
Based on the assessment of performance, the distribution of financial rewards by way of Variable Pay and ESOPs is proposed.
As regards increments in fixed pay and allowances as in every year, this is being done based on an industry wide survey of
compensation structure. The revised compensation structure for 2008-09 based on Mercer’s Survey report will be implemented
from April 2008.

We had conducted an ‘Employee Satisfaction Survey’, which gave us feedback on various parameters linked to employee
satisfaction. The feedback was used to implement and improve certain processes and policies. The results of the survey i.e. the
relative strengths and action areas that emerged from the survey were shared with all employees. This year also it was decided
to conduct a survey to get employee feedback and identify the specific ways in which we can make XYZ Bank a truly great place
to work in.
In the word of Coleman, “Manpower planning is the process of determining manpower requirements and the means for meeting
those requirements in order to carry out the integrated plan of the organization .

Necessity for Manpower Planning

a) Manpower planning provides adequate lead-time for the procurement and training of employees.
b) It is all the more crucial because the lead-time for procuring personnel is a time consuming process.
c) Non-availability of suitable manpower may result in postponement or delays in executing new projects and expansion
programmes
d) This ultimately lead to lower efficiency and productivity
a) To overcome this an organization must plan out its manpower requirements well in advance so that it can compete
effectively with its competitors in the market.

It is a better basis for planning employee development that is designed to make optimum use of workers skills within the
organization.
It enables identification of the gaps of the existing manpower so that corrective training should be imparted. It leads to
improvement in the overall business planning process.
It helps in formulating managerial succession plan as part of the replacement planning process which is necessitated when the
job change plans for managers are formulated.

It is a two-phased project
1) To project the future manpower requirements
2) To develop manpower action plans to accommodate the implications of projections

Deriving future staffing needs

b) Sales and production forecasts.
c) The effect of technological change on task needs
d) Variations in the efficiency, productivity, flexibility of labor as a result of training, work study, organizational change, new
motivations, etc.
e) Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off tasks, buying in, substitution,
etc.)
f) Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health and safety requirements
g) Changes in Government policies (investment incentives, regional or trade grants, etc.)

Forecasting Future Manpower Movements:

a) Governed by the companies corporate plan and they can only be considered in that context.
b) Objectives should be so stated as to be interpretable in terms of manpower involvement.
c) Indication of the extent to which volume and patterns of trade, and technological change affect manpower will have been
gathered from the analyses.

Demand Forecasting:
They follow the following factors for manpower forecasting which can be explained as under:

Employment Trends
The manpower planning committee at the corporate level makes an examination of number of employees on the payroll during
the past five years to know the trend within each employees group.

Replacement Needs
The need for replacement arises due to death, retirement, resignation and termination of employment. The examination of
replacement needs may relate to specific manpower groups : Supervisory, Skilled, Clerical, Unskilled etc.

Productivity:
An important area to which a manpower planning is related to productivity improvement. Increasing in productivity will also
influence the requirements of manpower. Any anticipated change due to the introduction of automation will affect the
manpower needs in the plants as well as in the divisional offices.

Growth and expansion:

Another aspect relevant for manpower planning is personnel requirements for growth and expansion of the organisation. The
expansion plans of various plans and divisions should be carefully reviewed to assess their probable effects on the number of
employees required in each group.

Job Requirements:
Job analysis is the qualitative aspect of manpower requirements since it determines the demands of a job in terms of
responsibilities and duties and then translates these demands in terms of skills, qualities and other human attributes. It helps in
determining the number and kinds of jobs and jobs and qualifications needed to fill these jobs.

Employment Plans:
This phase deals with planning about how the organisation can obtain the required number of right type of personnel as
reflected by forecasting.

Training and Development Programme:

The preparation of skill inventory helps in identifying the training and development needs of the organisation. The talents of the
employees are not fully productive without a systematic programme of training and development.

We consider below factors which may affect the Efficiency of Labour:

a) Inheritance: Persons from good collection are bound to work professionally. The quality and rate of physical as well as
mental development, which is dissimilar in case of different individuals is the result of genetic differences.
b) Climate: Climatic location has a definite effect on the efficiency of the workers.
c) Health of worker: worker’s physical condition plays a very important part in performing the work. Good health means the
sound mind, in the sound body.
d) General and technical education: education provides a definite impact n the working ability and efficiency of the worker.
e) Personal qualities: persons with dissimilar personal qualities bound to have definite differences in their behaviour and
methods of working. The personal qualities influence the quality of work.
f) Wages: proper wages guarantees certain reasons in standard of living, such as cheerfulness, discipline etc. and keep
workers satisfy. This provides incentive to work.
g) Hours of work: long and tiring hours of work exercise have bad effect on the competence of the workers.
Building Blocks (Process) of Manpower Planning

 Present total manpower.

 Manpower resources by appropriate planning groups, for example, sex, grade, function/department,
profession/skill, qualification, age group, and length of service.
 Total manpower costs.
 Total costs by appropriate component elements, for example, salaries, wages, pension contributions, welfare,
canteen, etc.
 Costs by functions/departments.
 Costs indices and ratios
 Total numbers related to sales, production or such other criteria as may be appropriate, in physical and financial
terms.
 Attrition and retention rates by appropriate groups, that is, overall, by function/department, profession, sex, age
group, etc.
 Recruitment patterns by age, education, etc. for each function/department.
 Resources of promotable staff.
 Recruitment & Selection

“Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs in the
organization.”

Recruitment Policy:
In XYZ Bank recruitment policy is designed with consideration of these elements:
a) Organization’s objectives
b) Identification of the recruitment
c) Preferred sources of recruitment.
d) Criteria of selection and preferences.
e) The cost of recruitment and financial implications of the same.

Steps followed in Recruitment Process:

1) A recruitment policy
2) The development of sources of recruitment
3) Different methods / techniques used for utilizing these sources

The Main Sources of Recruitment:

 Internal promotion & internal introductions (at times desirable for morale purposes)
 Careers officers (and careers masters at schools)
 University appointment boards
 Agencies for the unemployed
 Advertising (often via agents for specialist posts) or the use of other local media (e.g. commercial radio)
 Recruitment System

MODIFIEDBY
OVERALL
EFFICIENCY/
FORECASTS WORKINGBUDGET
PRODUCTIVITY
DEMANDFOR (WORKLOADOF
SERVICES& 2 INDEPENDENT 3
PRODUCTS DEPTTS/ CHANGE
SEGMENTED FUNCTIONS (TECHNOLOGICAL
FORECAST COMPUTERAND
ADMINISTRATIVE)

INTERNAL CHANGES
1 (EXPANSION/
CONTRACTION) FACILITIES
PRODUCTSSERVICES

PRELIMINARYHUMAN
RESOURCEREQUIREMENTS

LABOUR 5 MARKET

INTERNAL LABOUR EXTERNAL LABOUR

MARKETSUPPLY MARKETSUPPLY
 RECRUITMENT PROCESS

Every year an assessment exercise for augmentation of manpower is being carried out by HR Department, Central Office in
consultation with the Zonal Heads and Departmental Heads of Central Office. A note on augmentation of manpower is being put
up to CMD for approval. The sanctioned strength is then communicated to the Zones and the departments of Central Office.
The process of recruitment is carried out at both Central Office and Zonal Offices.

The Central Office handles the manpower requirement :

a) Of departments in Central Office.
b) Of Zones, in the cadres of Manager and above.
c) For all specialised positions from the cadre of Executive and above.

The Zonal Office handles the manpower requirement

a) of branches and
b) Administrative offices under its control.

The Zones have been delegated with powers for recruitment of officers in the cadre of Executive and Deputy Manager for
Branch XYZ Banking.

A. SOURCING OF CVs :
1) Advertisement in Media
2) Internal Sources - Referals
3) Job Posting in Sites (We have entered into tie-ups with Monster, Naukri and Jobs Ahead)
4) Internal Job Postings
5) Consultants (We have empanelled Consultants through whom we source CVs).

B. ELIGIBILITY CRITERIA :

I. Branch XYZ Banking

(i) Asst. Vice President : -

Role - Heading of Medium sized Branch of the XYZ Bank with business development as the prime focus.

Requirements -
a) Should be fully conversant with all aspects of branch operations and also have a working knowledge of credit and foreign
exchange.
b) Should possess excellent leadership and team building qualities with superior communication and interpersonal skills.
c) Should be around 35 years of age, with at least 8 years of experience in a decision-making position in a reputed XYZ Bank.
(ii) Manager:

Role - Managing the operations of a medium sized branch of the XYZ Bank.

Requirements –
a) Should be conversant with all aspects of branch operations and should be capable of taking independent decisions.
b) Should possess special skills in business development, marketing and managing customer relationships. Knowledge of credit
and foreign exchange will be an added advantage.
c) Should be around 30 years of age with at least 4 years of relevant experience in a reputed XYZ Bank.

(iii) Deputy Manager :

Role – primarily will be that of an operations at a branch

Requirements –

a) Should be fully conversant with XYZ Banking procedures and capable of extending excellent customer service.
b) Will be expected to possess skills in business development, marketing and customer interaction.
c) Should be around 28 years of age, with 2-4 years of relevant experience in a reputed XYZ Bank.

(iv) Executive :

Role – primarily will be that of a front office functionary to interact with customers for all their XYZ Banking related needs.

Requirements :

a) Should be able to communicate fluently in English and the local language.

b) Should also possess marketing and interpersonal skills. Those with experience in the financial sector will be preferred.
c) Should around 25 years of age with a graduation from reputed colleges.

(v) Junior Executive :

Role – Secretarial. Will be placed only in Central Office, Zonal Office, Service Branches.

Requirements :
a) Should be able to communicate fluently in English and the local language.
b) Should around 25 years of age with a graduation from reputed colleges.
2. Specialists :

Junior Executive - We recruit fresh Agriculture graduates as JAEs.

Executives - Graduate with 1 year of relevant experience.

Deputy Managers - Graduate with 2 years of relevant experience.

Managers - Graduate with 4-6 years of relevant experience.

Asst. Vice Presidents - Graduate with 6-8 years of relevant experience.

A good academic track record and computer literacy is essential in all cases

The Recruitment Policy:

The recruitment policy must satisfy the following conditions:

•It should be in conformity with its general personnel policies;
•It should be flexible enough to meet the changing needs of an organization.
•It should be so designed as to ensure employment opportunities for its employees on a long-term basis so that the goals of the
organization should be achievable and
•it should develop the potentialities of employees.
•It should match the qualities of employees with the requirements of the work for which they are employed and
•It should highlight the necessity of establishing job analysis.

Factors Affecting Recruitment:

1. The size of the organization
2. The employment conditions in the community where the orgn. is located.
3. The effects of past recruiting efforts which show the organization’s ability to locate and keep good performing people
4. Working conditions and salary benefit packages offered by the organization – which may influence turnover and
necessitate future recruiting.
5. The rate of growth of organization
6. The level of seasonality of operations and future expansion & prod .programs
7. Cultural, economic and legal factors etc.

SELECTION PROCESS :

Branch Banking :
On receipt of CVs, the procedure followed by the Zone/CO is detailed hereunder:

a) sort CVs depending on the eligibility criteria and short list candidates to be called for the written exam / Group Discussion.
b) Decide on the number of centres where exams are to be conducted.
c) Co-ordinate with IBPS for finalising the date/venue of exam.
d) Send call letters to the candidates for written test.
e) Conduct Written exams.
f) Obtain list of successful candidates from IBPS (2 weeks after the exams).
g) Post the name and roll numbers of successful candidates in web.
h) Arrange to hold interviews after deciding on the Venue / Panel. Advise Panel.
i) Send call letters to the candidates for the interview.
j) Conduct interviews.
k) Issue of Offers to the selected candidates.
l) On receipt of acceptance from the candidate, send letters to referees and arrange for pre-employment health check up.
m) Advise United Health Care to fix appointment for health check up.
n) Obtain fitness status from United Health Care.
o) Issue Posting Order to the candidate.
p) Follow up till candidate joins.

For the position of Manager instead of Written test, we hold Group Discussions followed by an Interview. Other procedures as
mentioned above remain unchanged (Item No.i to item no. o).

For the position of AVP, Central Office decides on the list of candidates to be called for by the Zones. After obtaining the list of
shortlisted candidates from CO, Zone fixes interviews. Other procedures as mentioned above remain unchanged.
 Cadre Selection Process

a) Executives - I) Written Test

ii) Successful candidates in the written test will be called for interview.
(HR representative in the cadre of Manager)
b) Deputy Managers - I) Written Test
ii) Successful candidates in the written test will be called for interview.
(HR representative in the cadre of AVP)
c) Managers - I) Group Discussion. (conducted by HR)
ii) Successful candidates in the GD will be
called for interview.
(HR representative in the cadre of VP)
d) Asst. Vice Presidents - Interview
(HR representative in the cadre of VP/SVP)
Specialists :
Cadre Selection Process

a) Executives, Deputy Managers, -Interview

Managers, Asst. Vice Presidents (HR representative depending on
the cadre).
b) Campus recruitments - Tier 1 and Tier II Schools

β Tier I Business Schools: -

Campus recruitments from 14 top business schools which included the 6 Indian Institutes of Management, XLRI
Jamshedpur, Xavier Institute of Management, Bhubaneswar, S P Jain Institute of Management and Jamnalal Bajaj Institute
of Management, Mumbai, MDI Gurgaon, FMS Delhi, Indian Institute of Foreign Trade (IIFT), Delhi and the prestigious Delhi
School of Eco, (DSE).

Institute of Chartered Accountants: -

Campus selection from the Institute of Chartered Accountants of India for posting in Capital Markets, Credit and Finance
& Accounts departments of Central Office.

Tier II Business Schools: -

Campus recruitment from 63 Tier II Management Institutes located across the country for posting at Retail XYZ Banking
and Business XYZ Banking departments. The candidates will be selected in the cadre of executive after screening test,
group exercise and interview.

Summer Internship: -

The XYZ Bank also has a well-designed Summer Internship programme for management students from the campuses of
the Tier I Business Schools. The selection of the Summer Interns is done through as rigorous a selection procedure as for
final recruitment and Interns with potential and promise are identified for eventual absorption.
C. ISSUE OF OFFERS :

Cadre Function Offer issued by

Executives and Deputy Managers - Branch Operations - Issued by Zone
Managers and AVPs - Branch Operations - Issued by CO
All Cadres - Specialists - Issued by CO

Central Office after analysing the vacancies/ manpower position issue offers.

(I) Salary Fixation :

Normal cases :

Grades Fixation Approved by

a) Junior Executive, Executive & Deputy Manager AVP (Recruitments)
b) Managers and Asst. Vice Presidents VP (Rewards & Comp.)

Cases with Personal Allowance and Function Pay :

For the grade of – Executive, Deputy Manager, Manager and Asst. Vice President

a) Personal Allowance : upto 30% of median salary - approval by SVP

beyond 30% of median salary - approval by CMD

b) Function Pay - approval from the respective Departmental Heads.

(II) Profile :

Asst. Vice Presidents - Note put up to CMD on profile of each candidate – approval obtained, salary fixed and then offer
issued.

Selection
Selection:
“It is the process of differentiating between applicants in order to identify (and hire) those with the greater likelihood of success
in a job”.

Techniques used in XYZ Bank in selection

Interviewing , Leaderless groups, Command exercises, Group problem solving

Role of selection:
1.Work performance depends on individuals
2.Cost incurred in recruiting and hiring personnel.

Steps in Selection Process:

 Reception or screening or preliminary interview.
 Application XYZ Bank.
 A well conducted interview.
 Group discussion.
 Physical examination.
 Psychological testing to explore a candidate’s suitability for a job.
 A reference check.
 Final selection approved by manager & communication of decisions to the candidate.
 Job offer.
 10.Contract of employment.
11.Evaluation of selection program.
 Training & Development

“Training & Development is any attempt to improve current or future employee performance by increasing an employee’s
ability to perform through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge.”

TRAINING AND SKILL DEVELOPMENT

The aim of the training process is to create a culture of continuous learning. The XYZ Bank’s training system is geared towards
upgradation of skills across all levels through a combination of classroom sessions, external programmes, both domestic and
international, outbound training and a well-structured e-learning module. The highlights of performance in the area of training
during the year 2007-08 are as under: -

1. Apart from the existing programmes in General XYZ Banking, Credit and Forex areas, the following new in-house
programmes were introduced during the year based on training need analysis.

a. XYZ Banking Refresher Programme for officials who have attended XYZ Banking Awareness Programme.

b. Capsule Programme for officials in Advances Cells.

c. Programme on Documentation and Charge Creation for officials in Retail Asset Centres.

d. A revamped Customer Care Workshop in a tie-up with ILFS ETS Ltd.

2. Strengthening of Zonal Training units after inducting additional Zonal trainers in the Zones. All Zonal trainers have been put
through a series of in-house “train the trainer” sessions. They, were also deputed to participate in a “train the trainer”
programme at various institution. The Zonal trainers are conducting all the induction programmes as well as XYZ Banking
Awareness programmes in their respective Zones.

3. Upgradation of the e-learning intranet site we-connect with more updates and topics to supplement the classroom training.

4. Introduction of Entry and Exit tests in all XYZ Banking, Credit and Forex programmes to evaluate training effectiveness.

5. Introduction of audio visual presentations and conducting debriefing sessions to enhance efficacy of training programmes.
6. Increasing Out Bound Training to make training an experiential learning experience. The OBT capsule in the training
programme for MTs has been specially acclaimed by the participants.

7. Inclusion of session on Enhancing Sales Effectiveness in all the programmes for Relationship Managers to have a sales
oriented approach.

8. Conducting appreciation programmes for Brach Heads on Credit Appraisal, Monitoring and Follow-up.

9. Arranging to conduct behavioural and soft skill intensive programmes both for Branch Heads and also for the other
operating staff particularly to increase their customer interface capabilities.

With a bigger in-house training team supported by field functionaries, domain experts and invitee faculty in behavioural and soft
skills training, the training activity is expected to gather sufficient momentum and deepen the impact and widen the employee
coverage.

Deputation to External Training Programmes.

Many officers were deputed outside the XYZ Bank either for training or for attending short duration seminars. Out of those
deputed for such external programmes, 200 programmes were attended by Senior Management functionaries.
Training
Training & Development need = standard performance – actual performance
Training refers to the process of imparting specific skills. An employee undergoing training is presumed to have had some
formal education. No training program is complete without an element of education. Hence we can say that Training is offered
to operatives

Development
Development means those learning opportunities designed to help employees to grow. Development is not primarily skills
oriented. Instead it provides the general knowledge and attitudes, which will be helpful to employers in higher positions. Efforts
towards development often depend on personal drive and ambition.

Advantage of Development
Making them Self-starters, Committed, Motivated, Result oriented, Sensitive to environment, Understand use of power, Creating
self awareness.
Develop inspiring leadership styles
4.Instill zest for excellence
5.Teach them about effective communication
6.To subordinate their functional loyalties to the interests of the organization

What are the Training Inputs?

· Skills
· Education
· Development
· Ethics
· Problem Solving Skills
· Decision Making
· Attitudinal Changes
Importance of Training & Development
a) Helps remove performance deficiencies in employees

b) Greater stability, flexibility and capacity for growth in an organization

c)
d) Accidents, scraps and damages to machinery can be avoided.
e) Serves as effective source of recruitment

l) It is an investment in HR with a promise of better returns in future

m)
n) Reduces dissatisfaction, absenteeism, complaints and turnover of employees

Training & Development

In XYZ Bank, we understand the need of training, not only at individual level but also at group level.

Individual level

Diagnosis of present problems and future challenges

.Improve individual performance or fix up performance deficiency
. Improve skills or knowledge or any other problem
. To anticipate future skill-needs and prepare employee to handle more challenging tasks
To prepare for possible job transfers

Group level

To face any change in organization strategy at group levels

. When new products and services are launched
nTo avoid scraps and accident rates.

Individual Training Needs Identification

 Performance Appraisals
 Interviews
 Questionnaires
 Attitude
 Surveys
 Training Progress Feedback
 Work Sampling
 Rating Scales

Group Level Training Needs Identification

 Organizational Climate Indices
 Organizational Goals and Objectives
 Personnel / Skills Inventories
 Efficiency Indices
 Exit Interviews
 MBO / Work Planning Systems
 Quality Circles.
 Customer Satisfaction Survey
 Analysis of Current and Anticipated Changes
 Methods Used for Induction, Knowledge, Skill Training

In keeping with the continual intake of manpower and in order to keep our employees equipped at all times with the latest
developments, training is an area of constant focus

Induction Training

Ø Within first three months of joining customer-facing recruits undergo a total of 7 days of class-room training

• 4 Days of XYZ Banking Training

• 2 Days of Customer Care Training
• 1 Day workshop on Core Selling Skills

Ø Additionally, during the first few weeks the new recruit is rotated through various desks in the branch to have a complete
picture of branch operations and systems

Knowledge and Skills Training

Ø Courses regularly conducted, mostly inhouse, for enhancing domain skills in :

• Corporate XYZ Banking

• Forex
• XYZ Banking Regulations
• Product Training

Ø Courses also regularly conducted on Sales and Behavioral Skills through external trainers

Ø For skill enhancement in specialized areas employees are deputed to external institutions for training /attending seminars

Methods of Training
1) On the Job Trainings:

Job Rotation: In this method, usually employees are put on different jobs turn by turn where they learn all sorts of jobs of
various departments. The objective is to give a comprehensive awareness about the jobs of different departments.

2) Job Coaching:
An experienced employee can give a verbal presentation to explain the nitty-gritty’s of the job.

3) Job Instruction:
It may consist an instruction or directions to perform a particular task or a function. It may be in the form of orders or steps
to perform a task.

4) Apprenticeships
Generally fresh graduates are put under the experienced employee to learn the functions of job.
5) Internships and Assistantships
An intern or an assistants are recruited to perform a specific time-bound jobs or projects during their education. It may consist a
part of their educational courses.

Off the Job Trainings

1) Classroom Lectures: It is a verbal lecture presentation by an instructor to a large audience. Advantage – It can be used for
large groups. Cost per trainee is low. Disadvantages – Low popularity. It is not learning by practice. It is One-way
communication. No authentic feedback mechanism. Likely to boredom.

2) Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc. Advantages – Wide range of realistic
examples, quality control possible,. Disadvantages – One-way communication, No feedback mechanism. No flexibility for
different audience.

3) Simulation: creating a real life situation for decision-making and understanding the actual job conditions give it. Following
are some of the simulation methods of trainings

4) Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and
Feedbacks without the intervention of trainer. Advantages – Self paced, trainees can progress at their own speed, strong
motivation for repeat learning, material is structured and self-contained. Disadvantages – Scope for learning is less; cost of
books, manuals or machinery is expensive.

5) Computer Aided Instructions: It is extension of PI method, by using computers. Advantages – Provides accountabilities,
modifiable to technological innovations, flexible to time. Disadvantages – High cost.

Off the Job Trainings –

Simulation

Case Studies: It is a written description of an actual situation and trainer is supposed to analyze and give his conclusions in
writing. The cases are generally based on actual organizational situations. It is an ideal method to promote decision-making
abilities within the constraints of limited data.

Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. It is
more emotional orientation and improves interpersonal relationships. Attitudinal change is another result. These are generally
used in MDP.

Sensitivity Trainings: This is more from the point of view of behavioral assessment, under different circumstances how an
individual will behave himself and towards others. There is no preplanned agenda and it is instant. Advantages – increased
ability to empathize, listening skills, openness, tolerance, and conflict resolution skills. Disadvantage – Participants may resort to
their old habits after the training
a)

Performance Management

The broad process of performance management in the XYZ Bank can be defined with three things such as:
1. To Define performance
2. To Facilitate performance
3.To Encourage performance.

To define performance it is necessary to set goals, decide how to measure accomplishment and provide regular assessment of
progress.
Based on the strategy adopted, the PMS can be defined with the Performance Triad as under:

De
finePerforman
ce
SetOb
jectives

TO
ENERGISE
EMP
L OYEE
P
E R
FORM ANCE

EncouragePerformance F
acilitatePerfo rmance
Providetimelyrewardsthatare Provideresources
Valuedbyem ployees
Relevance:
This requirements implies that there are clear links (i) between the performance standards for a particular job and an
organisation’s goals and (ii) between the critical job elements identified through a job analysis and the dimensions to be rated
on an appraisal form. In short relevance is determined by answering the question “ What really makes the difference between
the success and failure on a particular job, and according to whom?”

Sensitivity: This requirement implies that a performance appraisal system is capable of distinguishing effective from
ineffective performers. If it is not, and the best employees are rated no differently from the worst employees, then the appraisal
system cannot be used for any administrative purpose, it certainly will not help employees develop, and it will undermine the
motivation of both supervisors and subordinates.

Reliability:
A third requirement of sound appraisal systems is reliability. In this context, reliability refers to consistency of judgment. For any
given employee, appraisals made by raters working independently of one another should agree closely. In practice, ratings
made by supervisors tend to be more reliable than those made by peers. Certainly raters with different perspectives may see
the individual’s job performance vary differently. To provide reliable data, each rater must have an adequate opportunity to
observe what employee has done and the conditions under which he or she has done it.

Acceptability:
In practice, acceptability is the most important of all, for it is true that human resources programs must have the support of
those who will use them, or else human ingenuity will be used to thwart them.

Practicality:
This requirement implies that appraisal instruments are easy for managers and employees to understand and use.

Alternative Methods

Behaviour-Oriented Rating Methods:

(a) Narrative Essay
(b) Ranking
(c) Paired Comparisons
(d) Forced Distribution
(e) Behavioural Checklist
(f) Critical Incidents
(g) Graphic Rating Scales
(h) Behaviourally Anchored rating Scales
Result-Oriented Rating Methods:
Management by Objectives (MBO)
This is a well-known process of managing that relies on goal setting to establish objectives for the organisation as a whole, for
each department, for each manager within each department, and for each employee. MBO is not a measure of employee
behaviour; rather, it is a measure of each employee’s contribution to the success of the organisation.
Meet to agree on the major objectives for a given period for a given time (e.g., every year, every 6 months or quarterly),
Develop plans for how and when the objectives will be accomplished, and
Agree on the “yardsticks” for determining whether the objectives have been met.

Purpose of Performance Appraisal Systems

Appraisals provide legal and formal organisational justification for employment decisions to promote outstanding performers; to
weed out marginal or low performers; to train, transfer, or discipline others; and to justify merit increase. They may also serve
as one basis for reducing the size of workforce. In short appraisal serve as a key input for administering a formal organisational
reward and punishment system. Appraisals are used as criteria in test validation. That is, test results are correlated with
appraisal results to evaluate the hypothesis that test scores predict job performance. However, if appraisals are not done
carefully, or if consideration other than performance influence appraisal results, the appraisals cannot be used legitimately for
any purpose.
3. Appraisals provide feedback to employees and they serve as vehicles for personal and carrer development. Once the
development needs of employees are identified, appraisals can help establish objectives for training programs.
4. As a result of the proper specifications of performance levels, appraisals can help diagnose organisational problems.
They do so by identifying training needs and the knowledge, abilities, skills, and other characteristics to consider in hiring, and
they also provide a basis for distinguishing between effective and ineffective performers. Appraisal therefore represents the
beginning of a process, rather than an end product.

Employment Decisions

PURPOSEOF
Diagnosis of PERFORMANC Employee
Organisational EAPPRAISAL Feedback
Problems SYSTEMS

Criteriain
Objectives Test
for Training Validation
Programs
Why Performance Appraisal?
Translate corporation goals into objectives for employees
Deciding salary hikes and promotions
Document firing decisions
Discover training needs and potentials
Validate procedures.

Performance planning:
In order to plan a proper performance appraisal system, one has to
Document plans.
Involve employees in the planning of their own work.
Modifying plans based on employee’s strengths and weaknesses.

The appraisal interview:

Avoid regency effect - avoid starting observation of the performance of the employee the week before the appraisal meeting
and then base all the judgment on what is seen during that period.
Ensure that the appraisal is faced on accurate information. Inaccurate information may cause the appraisee to be unhappy and
communication gaps may widen the problem.

The appraisal interview:

Make distinctions between the high, average and low performers to avoid central tendency
Anticipate problems faced by the appraisee and accentuate the positives constructively and honestly. This gives the whole
process a humane touch.
Most importantly, as stated earlier base evaluation on data like skills and performance or figures of sales and production etc as
against attitudes.

Conducting the interview:

The appraiser should state the objectives and set the tone for the meeting
Let the employee give a self-appraisal.
The appraiser should add comments.
Discuss and plan for future work.

Conducting the interview:

At the end of the meeting come up with:
A written evaluation
Write-up of the work-plan.
 Exit Planning

These procedures do not exist in the XYZ Bank, but the same may be included as a Manpower Planning. It can work out the
correct price by the resource building or capacity building. Keeping a eye on the future implementation of the same:

Downsizing/resizing of manpower gives the correct picture about the number of people to be employed to complete given task
in the predetermined period. It may be used for achieving fundamental growth in the concern. It aims at correct place, correct
man on a correct job.
•Managing Exits as a part of Manpower Planning
•Exits are inevitable.

This is a reality that we all need to comprehend.Whether the exit is due to a cultural misfit,poor performance,downsizing or right
sizing is all a matter of detailing.

•Exit interview as a means to collate data on the exiting employees have been done by many companies.But more often than
not, companies go thru with this as a matter of routine that has to be complied with and the data that emerges out of this
exercise is seldom analysed.

•It is the analysis of the data that emerges out of this exercise, as well as the process of the exit interview adopted by
companies ,that would determine whether the data is any good to go by and formulate strategies on employee retention.

The XYZ Bank can manage, if wish so, the effective programme for downsizing/resizing the manpower as under:

(i) The sort of workforce envisaged at the end of the exercise.

(ii) The pros and cons of the different routes to get there.
(iii) How the nature and extent of wastage will change during the run-down.
(iv) The utility of retraining, redeployment and transfers
(v) What the appropriate recruitment levels might be.
 Compensation Policies & Other Benefits

XYZ Bank ensures that the employees gets the best available compensation and other benefits such as Compensation consists
of :

Fixed Pay
ØThe philosophy is to benchmark fixed pay to the market median.
ØSkills in short supply are compensated differentially.
ØVariable Pay and ESOPs are strongly contingent on performance.
ØFixed pay consists of Basic Pay and all Fixed Allowances

Variable Pay
ØVariable pay has been paid out to incentivise employees to superior performance.
ØA two way matrix of individual performance and branch/ office performance is drawn up and variable pay at differential scales
is paid to the groups so created by the matrix.

ESOP : stock options made to eligible employees.

Benefits
ØRetirals
•Provident Fund @ 12% of Basic Salary
•Superannuation @ 10% of Basic Salary
•Gratuity as per payment of Gratuity Act, 1972.

Ø Subsidised staff loans such as housing, vehicle, consumer, personal, education loans.

Ø Car and Driver are provided to officers in the grades of Vice President and above

Ø Leased Housing or House Rent Allow is paid as applicable. This varies from city to city.

Pension Fund
ØThe XYZ Bank has a Group Superannuation Scheme managed by the LIC
ØThe Scheme is funded by the XYZ Bank by contributing 10% of the basic salary
ØThe accumulated value is used to purchase a pension
ØAs the scheme is contribution defined, no actuarial valuation required
Group Personal Accident Insurance
Ø XYZ Bank has taken a Group Personal Accident Policy
Ø Provides Insurance cover to employees for death or temporary/permanent disability arising out of an accident

Group Life Insurance

Ø XYZ Bank has taken a Group Life Insurance Policy
Ø It provides life cover of Rs 1.50 Lac in case of death of an employee

•
Health Insurance
Ø XYZ Bank has taken a Group Mediclaim Policy. It provides cover to employees and their dependents to meet hospitalization
expenses upto prescribed limits.

Ø The XYZ Bank has also set up an Employees Welfare Trust to meet additional hospitalization expenses over and above the
prescribed limits under the Group Mediclaim Policy.

Miscellaneous

Severance payment regulation for employees

Ø Severance can happen by way of

·Retirement
·Resignation
·Death
·Termination

Ø In all cases, as per existing regulations, Provident Fund and Gratuity are payable.

Ø Additionally, the XYZ Bank provides benefits by way of pension through the XYZ Bank’s Group Superannuation Scheme.

Ø In case of death during the period of service, XYZ Bank provides financial assistance upto Rs.10 Lacs under the XYZ Bank’s
Staff Welfare Scheme.
 The ‘XYZ Bank Brand’ via HR Planning

With active strategic role, HR may help create a strong brand building for the company. With various roles and according plans,
as depicted in the picture, HR may play a central pivotal role.

Vision &
Leadershi Policies &
Post –
p Procedure
Employme
nt s

Reward Value
System s
s
Corporat
Working
e
Environme
Personali
nt
ty

External
Developme Reputati
nt on
Performanc
e Communicati
Manageme on
Recruitment
nt &
Induction
 Succession Planning

Process followed by XYZ Bank for succession planning :

a) An employee's performance is obviously the first thing that should be noted. A good consistent performance goes a long
way in sending a message to the senior management about the capability of the employee.
b) However its not just performance that matters- though it does play a very vital role- there also other factors that need to
be considered out here. Leadership qualities being one of them.
c) If an employee gets alone well with his colleagues and has good relations with them it helps, so does the fact of them
looking up to him. If an employees opinion matters and is taken seriously amongst his peers, it's a sheer sign that he has
leadership qualities and people look up to him.
d) Once our business strategy for the year is finalised, identify the critical roles to execute it. We review the talent available
for those roles internally as well as externally. We plan for the succession of existing critical roles, including that of the
CEO, and identify employees who are ready to take over the roles immediately and over the next 1-2 or 2-3 years.
a) XYZ Bank does developmental planning for each identified internal candidate in terms of job rotation, training, coaching
and performance counselling. They also keep track of potential external candidates, and establish touch points for
attracting them at the appropriate time.
b) The respective SBU heads and the SBU HR heads do the TRP for the top three levels of their business. This contributes to
the TRP at the XYZ Bank’s level, where the chairman, along with the HR head, get involved in talent planning for the top
three levels.
c) Next is the implementation of the talent strategies by developing and reviewing the action plan.

Everyone wants to be a leader thus things could get over competitive in the organization with everyone trying extra hard to get
noticed but if handled in the right way this competitive spirit could have a positive impact on the profitability of the
organization.

Clearly succession planning is an important cog in the wheels of the future from an organization's point of view. Today thanks to
globalisation the world is a small village, in such a scenario MNC's and big organizations work across borders.

Thus the fight to be an industry leader may not always be from domestic competition but from international companies as well.
This highlights the importance of a good leader as well as good top level management than ever before. Once this is sorted out,
half the battle is won and the organisation can look into the future.

Succession planning simply explained, is the process of looking for suitable employees for vital designations in the organisation
such as the CEO or other key posts in the organisation. succession planning is an on going process and senior executives review
the performance of their top executives and those in the next lower level on a regular basis to have a look at their work and
decide on who the right person would be.
This is important because :
a. Once the term of a leader expires, there has to be someone to take his place in the organisation and lead the organisation
later.
b. This is truly difficult as one has to ensure that the employee groomed is fit for the post.
c. Any mistake can prove to be quite costly as the organisation would have a wrong leader and this would pass across wrong
messages to the employees and shareholders
d. In today's era of stiff competition a big organisation needs to have a capable leader who takes the organisation ahead and
ensures that its long-term goals are fulfilled. But this does not end here for obvious reasons.
e. Depending on one man alone can often be dangerous and thus a backup is required. This is where succession planning comes
to the rescue for it ensures that the organisation does not come to a standstill and there is always someone to take it forward.

This process takes years, as the candidate needs proper grooming to develop successful and competent senior managers. Thus
a list of candidates who would suit the job and a pool needs to be created.
 Employee Relations

There are some programmers run by HR for maintaining healthy employee relations, such as:

Ø Recognition Programs
Ø Service Awards
Ø Performance Awards
Ø Recreation Programs
Ø Workshops and Seminars
The Employee Relations Office facilitates a series of professional development programs to help employees develop the
necessary skills to work and manage effectively.

Though not existing, some of the novel ideas such as following programs may be offered throughout the academic year:
 Preventing and Resolving Work Performance Problems.
 Recognizing and Preventing Harassment in the Workplace.
 Legal Aspects of Role of Today's Manager.
 Investigating Workplace Incidents.
 Brown Bag Lunch Series.
 Supervisor's Roundtable.

Employee Relations is dedicated to creating and sustaining a positive work environment by helping to resolve work-related
problems and by providing special programs to recognize and reward employees' contributions to the organization.
The Employee Relations Office counsels employees and provides assistance in informally resolving work-related problems. The
Office also provides consulting services to managers and HR Officers on the interpretation of collective bargaining agreements
and work-related policies and procedures, including the application of the University's progressive disciplinary policy.
Managers or supervisors who are planning on taking disciplinary action against an employee, especially if that action is
suspension or termination of employment, should consult their HR Officer, or, in the absence of that person, contact the
Employee Relations Department at once.