ARTICLE 5 -HRM CHALLENGES AND PRIORITIES OF INDIAN BANKS

HRM CHALLENGES AND PRIORITIES OF INDIAN BANKS

In 2006, Aneeta Madhok, in her paper ‘Managing people tomorrow’ sought, based on a survey of 59 CEOs and HRM professionals, the rankings of various HRM challenges faced by banks. The following were the major challenges found:

1. Creating a high performance culture
2. Talent retention
3. Recruiting in to-day’s context
4. Managing mindsets
5. Training for growth
6. Compensating knowledge workers
7. Building interpersonal relationships
8. Going global
9. Implementation of technology-based HRM systems
10. Human capital building practices

The present study identified key HRM-related strengths, weaknesses, opportunities and threats. In brief, these were:

Key HRM-related Strengths of Indian Banks
Of Small Banks
 Family feeling in staff.

Of Large Banks
 Large, skilled manpower, especially a large set of skills in the younger executives.
 High staff commitment and loyalty.

Key Weaknesses
Small Banks
 Inadequate remuneration for attracting talent.
 Relatively low skills base.
 Inadequate professionalization of HRM systems.

Large Banks
 Skewed age profile – too many over 50 in PSBs.
 Too many clerical and subordinate staff members in PSBs.
 High superannuation at senior levels in PSBs.
 Leadership deficit at senior levels in a time of rapid change and modernization.
 Inadequate IT skills, resistance to IT in PSBs.

Opportunities
Small Banks
 Fast promotion possibility for the qualified/talented.

Large Banks
 Large and qualified staff that can service many market segments and growth initiatives.
 Lot of leadership potential in youngsters that can drive growth, if harnessed properly.
 Bank’s operating autonomy can facilitate induction of high quality, multi-specialist staff at all
levels; also improved promotion prospects because of rapid growth in banking business.

Threats
For small Banks
 High attrition/poaching of skilled, quality staff.
 Difficulty in hiring highly qualified youngsters aspiring to high remuneration.
Large Banks
 High staff costs – overheads may be a problem in a downturn or in intense competition.