Human Resource Management In Banking

Human Resource Management is important for banks because banking is a service industry. Management of people and management of risks are two key challenges faced by the banks. How they manage the people and how they manage the risks determine their success in the banking business. Efficient risk management may not be possible without efficient and skilled manpower. Banking has been and will always be a "People Business". Though pricing is important, there may be other valid reasons why people choose and stay with a particular bank. Banks must try to distinguish themselves by creating their own niches or images, especially in transparent situations with a high level of competitiveness.

The real problem of running a bank successfully and viably

Many researchers have suggested that HRM Practices increases the performance of organization. So, in order to retain skilled and talented employees, banks have started looking towards committed employees and through many researches it has been proved by the researchers that HRM Practices increases the commitment level of employees. Banks have increasingly recognized the potential of their existing employees. They have realized that, a firm’s employees can be a unique pool of talent and can take the organization to greater heights. HRM practices affect such efforts of the employees by influencing their skills and motivating them. It play a very crucial role in achieving the organization’s goals and maintain the competitive advantage. HRM practices refer to organizational activities directed at managing the pool of human resource and ensuring that the resources are employed towards the fulfilment of organizational goals (Schuler & Jackson 1987).35 Human resource management practices is the management of people within the internal environment of organizations, comprises the activities, policies, and practices involved in planning, obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate numbers and skill mix of employees to achieve the organization’s objectives (Appelbaum 2001).36 Presently organizations are competing through

These HRM practices pivot not only in inculcating empowerment amongst the employees but also help in shaping a healthy organizational culture, which leads to higher growth and performance of banks. The purposed study is a comparative analysis between Public and Private Banks of Selected cities of Haryana. Public Banks are governed by Government of India and Private Banks were licensed under the policy of liberalization. So, both the types of Banks have different Management imperatives and may follow different HRM Practices. Good HRM Practices help in attracting, retaining talent, train people for challenging roles, develop their skills and competencies, increase productivity and profits and enhance standard of living. The study tried to find the truth behind it by analyzing the impact of appropriateness of HRM Practices as perceived by employees of banks and their commitment thereof. Here, a brief description of the conceptual areas of HRM practices relating to employee’s recruitment and selection, promotion, compensation packages, training and development, & welfare schemes as covered under the