SHRI RAMSWAROOP MEMORIAL COLLEGE OF

ENGENIEERING AND MANAGEMENT

SYNOPSIS PRESENTATION
(KMBN-308)

on
A Study Of Effectiveness Of HR Practices On The
Employees Of SBI Bank

Submitted To : Submitted By
Mrs .Jaya Jain NEETIKA TRIPATHI
Department of Management Roll No. 2101220700035
SRMCEM, Lucknow MBA 2nd Year IVth Sem.
 INTRODUCTION

Human resource management (HRM) is the practice of recruiting, hiring, deploying, and managing an
organization's employees. HRM is often referred to simply as human resource. (HR). A company or
organization's HR department is usually responsible for creating, putting into effect, and overseeing
policies governing workers and the relationship of the organization with its employees. Human resource
management, HRM, is the department of a business organization that looks after the hiring, management
and firing of staff. HRM focuses on the function of people within the business, ensuring best work
practices are always in place.

Human Resource Management is a function in organizations designed to maximize employee

performance in service of their employer’s strategic objectives.HR is primarily concerned with how
people are managed within organizations, focusing on policies and systems. HR departments and units in
organizations are typically responsible for several activities, including employee recruitment, training and
development, performance appraisal, and rewarding. HR is also concerned with industrial relations, that
is, the balancing of organizational practices with regulations arising from collective bargaining and
governmental laws.

For banking, the importance of human resource management has grown manifold because the nature of
banking industry, which is mainly service based. The management of people in the organization along
with handling the financial and economic risks at the wider level is the most potent challenges in front of
the banking industry in any given time frame. Efficient and skilled manpower in the sector can only
manage the financial risks that the banks need to take on regular basis. The Human Resource department
is responsible for finding such talented manpower and placing them in right jobs in the banks.

A part from the risks in the banking sector, the people handling the day-to-day affairs in the banks need to
keep the customer satisfaction in mind. The people working at the front office become the face of the
bank and thus it is the responsibility of the HR to make sure there are eligible people working up front.
They need to make sure that the candidates selected in the banks go through necessary training before
they begin their work, so that they are aware of the nuances of the core banking industry and customer
relationship, better. The HR management needs to think both about the quantity and quality requirement
in the banking sector and deal with the shortage in the skilled manpower supply in the sector efficiently.
 INDUSTRY PROFILE
(SBI Bank)
State Bank of India is a largest commercial Bank in India entity on the corporate scene having diversified
business interests that include Financial Institution. The Bank is ranked 232nd on the fortune Global 500
list of the world’s biggest corporation as of 2016. In addition to that, the largest bank in India having
presence across the country even in remote areas. More than two-third of the Bank’s total branches is in
rural and semi-urban areas, demonstrating the Bank’s intent of serving all strata of the society. According
to this, the study focused to analyze the Human Resource Management Practices in State Bank of India.

The State Bank of India, the largest public sector bank of India, offered voluntary scheme (VRS) to trim
its workforce as recommended that the banking industry was overstaffed. SBI implemented a VRS or the
―Golden Handshake system. The vast workforce that was once regarded as one of SBI ‘s strongest assets
became a liability following the computerization of the bank. The introduction of this scheme leads to
strong protests and SBI faced with a prospect of losing its talented employees and be left with less
efficient employees (2012). Quality is our essence and we, at State Bank of India, have always stressed on
the Qualitative aspect. Consequently, in this run for quality, quantity has always pursued us. We look
forward to reaching the zenith and reaffirm our commitment to the process of sound nation-building.

The bank has a branch network of over 15004 branches (including subsidiaries). including 157 foreign
offices in 41 countries around the world making it The Largest Banking and Financial Services Company
in India, correspondent relationship with 520 International banks in 123 countries. In recent past, SBI has
acquired banks in Mauritius, Kenya, and Indonesia. The bank had total staff strength of 292,215 as on
31st January 2013. Of this, 29.51% are officers, 45.19% clerical staff and the remaining 25.30% were
sub-staff. The bank is listed on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock
Exchange, Chennai Stock Exchange, and Ahmedabad Stock Exchange while its GDRs are listed on the
London Stock Exchange. SBI group accounts for around 25% of the total business of the banking industry
while it accounts for 35% of the total foreign exchange in India. With this type of strong base, SBI has
displayed a continued performance in the last few years in scaling up its efficiency levels. Net Interest
Income of the bank has witnessed a CAGR of 13.3% during the last five years. During the same period,
net interest margin (NIM) of the bank has gone up from as low as 2.9% in FY02 to 3.40% in FY06 and
currently is at 3.32%.
SCOPE OF THE STUDY
 SCOPE OF THE STUDY
The topic selected for the study is “Human Resources Management” in SBI Bank. The main
theme of the project is the analysis and interpretation of practices of the employees using Human
Resources as a tool.

It is prepared to know whether the bank is preparing well or not, performance of the bank and
about its competitiveness by the analysis and interpretation of the Human Resources
Management Process.

A critical study of the effectiveness of Human Resources Management system and suggest ways
for improvement.

The problem lies in identifying relationship, mutual understanding between the management and
the employees.

The Human Resources Management system provides detailed information about person so that
the management can take appropriate steps to improve and achieve the goals and help to
maintain the smooth relationship between them.
 PROBLEM OF THE STUDY

Here are the problem that the HR practices in State Bank of India faces:

1. The first and foremost problem that HR practices in State Bank of India faces is to convert the
abundant population pool into useful human resource.

2. Training and development of human resource to match ever changing industry demands requires HR
to develop new and innovative ideas that suit individual as well as industry criteria.

3. Employee motivation and satisfaction is another area of concern for the HR today. In order to reduce
attrition, rate HR needs to realize that monetary needs are not the only drive for an individual and
that a sense of belongingness must be imbibed in employees.

4. With the increase in number of job options available nowadays, the HR function of an organization
must take care that they hire those people who believe in long-term commitment to the organization.
The HR then must take up the challenge of retaining them by developing retention techniques like
Holiday plans fun-at-work etc.

5. The level of efficiency/production of this input gets reflected in the quality of service offered by
banks to its customers, as also in its ultimate growth, productivity and profitability.

Hence, the banks today lay great stress on HRM practices.

 OBJECTIVES OF STUDY

The current research will be aimed at determining the Effectiveness of Human Resources practices on the
employees of SBI Banks .

 To shed light on Human Resources Practices in Banking Sector.

 To understand the views of employees regarding Human Resource Development in SBI Bank.
 To understand Steps taken by SBI to implement Human Resource practises for employees.

 To put lines on the changes required for successful practice of Human Resource Management.

 To make people aware about the Human Resource Practice in SBI Bank .
 RESEARCH METHODOLOGY
Research Methodology of a research describes research methods, approaches and designs in
detail highlighting those used throughout the study, justifying my choice through describing
advantages and disadvantages of each approach and design taking into account their practical
applicability to our research. Research Methodology is a systematic approach in research to
achieve pre-defined objectives. It helps as a guide through the course of research work. Rules and
techniques stated in research methodology save time as it helps to know how to proceed and
conduct the study as per the objectives. Research methodology is the path through which one
need to conduct the research.
RESEARCH DESIGN –
Research design means a specified framework for controlling the data collection. The research is
of descriptive in nature, which could provide an accurate picture of induction procedure
conducted in the organization. Descriptive research includes surveys and fact- finding inquiries of
different kinds. The research is of Ex post facto nature in which researcher no control over the
variables has. Statistical method lay stress on objectivity rather than rely on intuition and
judgment and average & percentages can easily be calculated.

Source of Data
Sources of data includes secondary data collections focusing on qualitative and quantitative data.
The data collection mechanisms are devised and prepared with their proper procedure.


 PRIMARY DATA
The primary data are those, which are collected afresh and for the first time, and thus
happen to be original in character. The data on the required information is collected from
actual persons using the product/ services. This data is more suited for the objectives of
the project. Primary data means when data does not exist, and researcher collects data on
its own through various method. The data in this research is collected by conducting a
survey by personal communication by questionnaire method.
 SECONDARY DATA
The secondary data refers to data that was collected by someone other than the user. This
secondary data sources could be internal and external data sources of information that
may cover a wide range of areas. The data in this research is collected through various
articles, reports, websites, journal, books, newspaper, etc.
The data which have already been collected by someone else or taken from published or
unpublished sources and which have already been passed through the statistical process.

 TOOLS AND TECHNIQUES

Tools and techniques mean use of some smart tools. These tools are simpler and easier to
understand as compared to the theoretical data. Various tools and techniques used in this
research is tables, graphs, charts.
 LITERATURE REVIEW
▪ Human Resource Development Practices in Indian Banking Sector – An Overview by Smt.
V. Madhu Latha & Dr. V. Narasimha Rao .
Smt. V. Madhu Latha1 & Dr. V. Narasimha Rao in their research paper on “Human Resource
Development Practices in Indian Banking Sector – An Overview” said that in the growth and
development of any type of organization Human Resource plays an extremely important role.
Among the several factors of production, human resource is unique and has unlimited potential to
contribute to the growth of the organization. The Indian banking sector is playing a significant
role in the development of economy. The role of human competencies has become very crucial
for the growth of banking sector due to technology adaption, high customer expectation and
competition. At the outset an attempt has been made in this paper to overview the existing HRD
practices in Indian Banking Sector.

They explained that the Review and Discussion of Key HRD practices in Banking Sector can be
done in following ways:

1. Analysis of Training Programmes:

The employees who are trained on a regular basis are the ones who provide a higher quality
services to the customers. Banks must efficiently manage its employees during every phase of
employment because people are the most important assets in a service-oriented industry like
banking and finance.

2. Career and succession planning:

Helping the employees to plan their career in terms of their capacities is an essential step
required in the process of human resource development. In succession planning, the potential
candidates are identified, and they will be trained and developed to lead the organization in
future.

3. Feedback and Employee Counseling:

Professional counselors stimulate personal growth of employees and offer help in addressing
issues that cause stress. The counseling service at work place shall bring back work life
 balance and serve as development model in HRD.

4. Compensation and Reward Management:

In Indian banking sector the compensation and rewards are the two most crucial factors in
attracting as well as retaining high quality employees. Use of right rewards, either monetary
or non-monetary for all levels of employees can motivate the employees to enhance their job
satisfaction in the banks They concluded that the economic development of any country
largely depends on the public savings, public lending facilitated and promoted by banking
and financial services industry. Indian banking industry has witnessed rapid growth and
changes in the past three decades as a result of economic reforms, changing socio-economic
profile of the people, and technology revolution. Bank’s today is facing numerous challenges
due to these changes. The survival of the banks completely depends on range and quality of
services offered to customers. The quality and performance in banking services depends on
effective HRD practices.

D.V. Ramana Murthy(2009)has discussed in this article on“ Knowledge Management

Systems: Issues, Challenges and Benefits, Knowledge Management Systems” the
significance of human factor and trade unions in the banks.
S.R.Varde(2010) in his paper on “Human Resource Management practices in the Banking
Industry “at the level of an Indian commercial bank dealt with the aspects like basic structure
of manpower planning, linkage of manpower plan to other plans, interrelationship of various
manpower functions, objectives of manpower planning in Indian commercial banks, anatomy
of manpower plans and techniques of manpower planning. N.R. Seth discussed growth,
functioning and progress of trade unions in Indian banks.

▪ HR from the Outside In: Six Competencies for the Future of Human
Resources.
By Dave Ulrich, Jon Younger, Wayne Brock bank and Mike Ulrich New York: McGraw
Hill, 2012.
As the research, teaching and practice of HRM continues to respond to and be shaped by
contemporary business advances, Ulrich, Younger, Brock bank and Ulrich propose that a
competency approach provides a ‘leading logic for diagnosing, framing and improving’ the
resulting HR challenges (p. 30). Commencing in 1987, ‘HR from the Outside In’ is the result
of the sixth round of the authors’ Human Resource Competency Study; a global survey of HR
Professionals, Line Managers, Academics and Consultants. Though the authors note many
previous contributions to competency research, they believe this study’s unique 360° view
will enable HR professionals to significantly increase their levels of competence and
contribution. The authors’ ability to distil complex findings through years of experience and
translate compelling evidence into practical guidelines, usable tools and common-sense
advice is what makes this book both relevant and impactful. Six core competencies have been
identified; Strategic Positioned, Credible Activist, Change Champion, HR Innovator and
Integrator, Capability Builder and Technology Proponent. Some competencies have carried
through directly from previous models and others have evolved or been reshaped. The central
message however, as reflected in the book’s title, is that all six are now strongly underpinned
by an ‘Outside-In’ ethos. HRM has moved through three waves from ‘Administrative
Excellence’ to ‘Innovative and Integrated Practice’ to the more contemporary view of
‘Strategic HRM’ whereby direct contribution to organizational performance is achieved
through developing business acumen, enabling business strategy and aligning HRM activities
with the resulting strategic choices (p.19). Today, the authors argue, HRM must move
through a fourth wave - strengthening strategic contribution through more direct and active
engagement with external elements; customers, investors, communities and other
stakeholders. As the book progresses through an exploration of each competency, it provides
ideas as to how this ‘outside’ might be brought ‘in’. How these ideas are interpreted will
likely depend on the perspective and experience of the reader; some appear very valuable,
some quite manageable, some hugely aspiration, some questionable. But all are interesting
and thought-provoking.
The body of the book devotes a chapter to each competency following a clear and very
readable formula. Firstly, a story or two demonstrating the competency at work in an
organization is shared, secondly, the factors behind each competency and their impact on
individual effectiveness and business performance are explained in full, and finally, some
practical tools to initiate and develop ability in the competency are recommended. Common
among all chapters is the spectrum of potential activities in which HRM may engage. These
activities range from the simple, resource-effective and overtly valuable through to the
complex, time-consuming, expensive and potentially distracting. As they are now
summarized, the reader can consider: How much might be too much?

 The Strategic Positioner

 No longer is it sufficient to initiate, steer and engage in strategic discussion, HRM
should be proactively positioning the organization to win by; interpreting the global
context, decoding the customer experience and co-crafting the strategic agenda. This
can be achieved through simple efforts such as ensuring financial reports, customer
performance data and board meeting presentations are distributed across the team,
HR Business Partners master and share ‘the logic’ of their division, and HR is
represented on cross-functional teams.

 The Credible Activist

Having evolved from Personal Credibility to Activism, the view is that HR
professionals need to take greater personal initiative across the organization. HRM
must earn trust through business results, display integrity as a role model for the
organization’s values, be more selfaware regarding skills, approaches and feedback,
and strengthen the HR profession. Furthermore, HR professionals need to be
influencers and relate to others by understanding, anticipating and planning for
stakeholder interests.
 The Capability Builder
In this chapter, HRM is presented with a basic outline and practical framework for
tackling their greatest task – ‘creating the right organization’. The authors refer to
previous waves in organizational effectiveness; efficiencies, bureaucracy, systems
thinking and more recently capabilities.
▪ A STUDY ON HUMAN RESOURCE MANAGEMENT IN STATE
BANK OF INDIA by SELVAMAN AND MUTHUKUMAR
An attempt is made in this research to what extent human resource management is
contributing for the satisfaction of the employees in the SBI. A sample of 65 employees has
been selected using convenient sampling method. The study says human resource
management is contributing for the satisfaction of the employees in the SBI. The following
statistical tools have been used for analysing the collected data: Tables, Percentage, Ranking
techniques and, Chi-square test. Finally, the researcher provides the suitable suggestions to
improve Human Resource Management practices in the SBI and it will go a long way to get
success.
The research explained its findings in 9 tables:
Table1: Gender Wise Classification Table
2: Age Wise Classification Table
3: Work Experience Table
4: Designation Table
5: Monthly Incomes Table
6: Opinion about Training and Development Table
7: Opinion about Wages and salary administration Table
8: Opinion about Working Condition Table
9: Opinion about Labour welfare measure