Role Of Hr In Banking Sector

Role of HR strategies for improving organizational performance in the banking sector in India

Introduction

For any organization, the human resources play a phenomenal role in the overall effectiveness, efficiency and profitability of the organization. The key characteristics of this type of resource are that every individual is a unique package of qualifications, aptitude, skills, abilities, psychological setup, behaviour and approach. As a group these attributes interact to render various management styles in an organization. Thus, human resource is aptly considered as the strongest asset of an organization.

Banking sector

In the banking sector in India, until recently, generally banks target the HR functions to improve the performance by

human resource, forms merely a small fraction of the total mobilized resources in the banking sector, it is the HR only that makes a big difference for the sector through decisions, execution and management. The HRM comprises of four broad processes (which can be considered as the ‘Value Added Chains’): Recruitment and Selection, Appraisal, Development and Retention of the HR. The first two processes are quantitative whereas the next two are qualitative (Kenter, 2003). In all these decision making areas, it is crucial that an appropriate strategy is used to ensure maximum possible value addition by that area. The formation of the strategies should account for the underlying complexities involved in any organization in the form of groups and subgroups that exist in that organization. These are based on the employees and their professional attitudes. So, managing professionalism is of utmost priority. In fact, the Reserve Bank of India (RBI) has also initiated measures to check this and intervenes when

Proper deployment of HR technologies leads to time saving of the employees and cost reduction too in the long run, which can then be put into better usage. Management and employees get time to focus on more strategies for the work of higher value, which results in a strong financial position of the bank. Such strategic decisions are very important for any organization to increase its market value, revenue growth and productivity. Best example of technology usage is the Core Banking Solution (CBS). This has helped the employees to shift their attention from the mundane activities to more contributory roles by analyzing the patterns of customers, their needs, and thereby designing products to satisfy the customers. The post-liberalization period has brought some significant changes in the Indian banking sector’s structure as it is linked to the rest of the world’s economy too (Kumbhakar, 2005). It was the need of hour that the employees adapt to these changes in order to grow in tandem with the rest of the world. An important factor of concern while ensuring that the banking sector was changing for good was the customer needs. Paying heed to the voice of the customer can equip the higher level management in the banking sector to align the services, technologies and strategies to the customer requirements. The sector understood and catered to the