Tag Archives: management

Business and Management

LEADERSHIP IN MANAGEMENT


As you know, management involves getting work done through the people and by virtue of their positions, managers can issue orders and instructions to their subordinates to get the work done, but it is also necessary to ensure that subordinates put in their maximum effort in performing their tasks and hence managers have to regulate and influence the subordinates behaviour and conduct at work and it is through the leadership role of managers that employees may be induced to perform their duties properly and maintain harmony in group activities. A manager, having formal authority, can direct and guide his subordinates and command their obedience by virtue of his positional power but as a leader, a manager can influence work behaviour by means of his leadership ability to get the cooperation of all members of the group. Leadership may be defined as a process of influencing group activities towards the achievement of certain goals. Thus, the leader is a person in a group who is capable of influencing the group to work willingly and he guides and directs other people and provides purpose and direction to their efforts and according to eminent writers Hodge and Johnson Leadership is “ Leadership is the ability to shape the attitude and behaviour of others whether in formal or informal situations” and According to Livingston Leadership is “ Leadership is the ability to awaken in others the desires to follow a common objective”.

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CHARACTERISTICS OF LEADERSHIP

Managerial leadership mainly possess the following characteristics:

  1. Leadership is needed in all walks of life, such as economical, social, political and industrial spheres.
  2. It is the duty of the leader to maintain proper discipline among his subordinates.
  3. It is a continuous process whereby the manager influences, guides and directs the behaviour of subordinates.
  4. A true leader is responsible for including encouragement and confidence among employees of any organization.
  5. The success of a manager as a leader depends on the acceptance of his leadership by the subordinates.
  6. The manager-leader is able to influence his subordinate’s behaviour at work due to the quality of his own behaviour as a leader.
  7. The leader leads his group with authority and confidence.
  8. The leader establishes the relationship between an individual and a group around some common interest.
  9.  A true creates a bond of friendship between organization and subordinates.
  10. Leadership helps others in choosing and attaining specified goals to the maximum satisfaction of both the leader and the follower.
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SOME IMPORTANT QUALITIES OF LEADERSHIP

1. Knowledge and intelligence

 A leader, to be effective, must have knowledge of group behaviour, human nature and activities involving technical and professional competence. He must have an intelligent perception of human psychology and the ability to think clearly and argue cogently on points of dispute.

2. Integrity and Honesty

A leader should possess a high level of integrity and honesty and he should be a role model regarding ethics and values.

3. Motivation Skills

A leader should be an effective motivator and he should understand the needs of the people and motivate them through satisfying their needs.

4. Self-confidence

Confidence about one’s leadership ability makes it possible for a leader to analyse and face different situations and adopt a suitable style and Lack of self-confidence often prevents managers to adopt a participative style and repose trust in their subordinates.

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Business and Management

MOTIVATION IN MANAGEMENT


The term motivation is derived from the word motive and motives are expressions of a person’s needs and hence they are personal and internal and in this context, the term need should not be associated with urgency or nay pressing desire for something and it simply means something within an individual that prompts him to action and motives or needs are ‘whys’ of behaviour and they start and maintain activity and determine the general direction of the person and motives give direction to human behaviour because they are directed towards certain goals which may be conscious or sub-conscious. Motives are directed towards the achievement of certain goals which in turn determine the behaviour of individuals and this behaviour ultimately leads to goal-directed activities such as preparing food and a goal activity such as eating food and in other words, unsatisfying needs result in tension with an individual and engage him in search of the way to relieve this tension.

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INTERRELATED TERMS

While discussing motivation, we need to understand three interrelated terms- Motive, Motivation, and Motivators.

1. Motive- A motive is an inner state or desire which energies an individual to move o to behave towards the achievement of goal and motive arises out of needs of an individual and it causes restlessness as he wants to fulfil his motive.

2. Motivation- It is a process of inducing people to perform to their best ability to accomplish a goal and it is a psychological phenomenon which arises from the feeling of needs and wants of individuals and it causes a goal-directed behaviour.

3. Motivators- Motivators are the incentives or techniques used to motivate the people in an organization and common motivators used by the mangers are increment, bonus, promotion, recognition, respect etc. 

 Motivations may be defined as the complex of forces inspiring a person at work to intensify his willingness to use his maximum capability for the achievement of certain objectives. According to Koontz and O’Donnell “ Motivation is a general term applying to the entire class of drivers, desires, needs, wishes and similar forces and to say that managers motivate their subordinates is to say that they do those things which they hope will satisfy drives and desires and induce the subordinates to act in the desired manner”

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FEATURES OF MOTIVATION

1. Motivation is an internal Feeling/ instinct

Motivation is a psychological phenomenon which generates from within an individual and needs are the feelings arising in the mind of a person that he lacks certain things and such feelings affect the behaviour of that individual and causes him to do work and hence, motivation is the process of making an individual feel his needs.

2. Motivation produces goal-directed behaviour

Motivation is a power which leads the employees to the achievement of their goal and the behaviour of the motivated employees clearly shows that they are inclined towards the achievement of their goal.

3. Motivation can either be positive or negative

Positive motivation provides positive rewards like an increase in pay. Promotion, recognition etc. Negative motivation uses negative means like punishment, stopping increments, threatening etc., which also may induce a person to act in the desired way. 

Business and Management

SUPERVISION OF MANAGEMENT

Supervision is an important aspect of the directing function and it involves the managerial task of observing the subordinates at work to ensure that they are working according to plans and policies of the organization, keeping the time schedule and supervision also includes helping subordinates to resolve their work problems. Managers at all level are in direct contact with subordinates and oversee their work performance and the top management supervises the work of middle-level managers, who in turn supervise the first-line managers or supervisors and the first-line managers are in direct contact with the operatives and thus, all levels of management are generally engaged in supervising the work of their immediate subordinates. According to R.C. Davis “Supervision is the function of assuring that the work is being done in accordance with the plan and instructions”. Supervision includes the following three elements:

  1. Commanding
  2. Guiding
  3. Controlling

This is the reason why, “Supervisors are known as a friend, philosopher, and Guide of workers”.

ROLE OF SUPERVISORS

Supervision has special importance only at the lower management level and the question which is now required to be discussed is to what role does a person working at the managerial level, the supervisor play in the organization.

1. Supervisor as a key man

 In every organization, the work of putting the plans into action is done by non-managerial staff who works under the guidance of a supervisor but however, at this level, even a little carelessness may cause the closure of the organization and that is why the supervision is referred to as the key man in the organization.

2. Supervision as a middle man

   In the organization, the supervisor plays the role of a middle man and he acts as a link between the higher-level managers and him workers, and his main job is to prepare a co-operative atmosphere among the two parties in order to facilitate the achievement of the goal of the organization.

3. Supervisor as a human relation specialist

A supervisor is likely to face a number of problems related to human behavior, for which one has to try and find out solutions and he can do so only if he is a human relation specialist.

FUNCTIONS OF SUPERVISOR

1. Planning the work or schedule activity

The supervisor is a low-level manager and he is required to study and analyze the work of his department and decide what, where, which, why, and by whom the work is to be performed. He has to chalk out daily and weekly program and he has also to arrange the raw materials, machines, tools, and equipment and the successful supervisor is an efficient planner.

2. Achieving the target

It is the most important duty of the supervisor to achieve the target prescribed for his department by the management and this can be achieved if the supervisor enables the best possible use of the available resources of the department towards the desired goal.

3. Enbaling standardized output through instruction and guidance

It is the supervisor, who ensures that the actual performance corresponds to the norms and standards laid by the management and the supervisor must satisfy himself as to the quality of the output and he should concentrate on both quality and quantity of goods. 

Business and Management

STAFFING


Staffing may be defined as the managerial function of employing and developing human resources for carrying out the various managerial and non-managerial activities in an organization. The function is concerned with attracting, acquiring and activating the human resources for achieving organizational goals and staffing also involves upgrading the quality and usefulness of members of the organization with a view to getting higher performance from them and in other words the policy of selecting ‘right man for the right job’ should be adopted. The staffing function includes such activities as manpower or human resource planning, recruitment, selection, placement, training and development, remuneration, performance appraisal, promotion, transfers, and so on. Staffing is a continuous function of managers and this is because the organization’s need to retain and maintain its personnel is a need ending process and managers have to keep a regular watch on the size and composition of personnel needed by the organization. As said by Weihrich and Koontz “The managerial function of staffing involves the filling and keeping filled, positions in the organizational structure”.

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NATURE OF STAFFING

Staffing is related to people not with goods and it is a human factor related to people and staffing is also influenced by the social, economical, political, and educational environment of the country. Speaking, staffing is a function of far-reaching consequences and the reason is that managers are not shown as an asset in the balance-sheet of the organization whatsoever money we may have to spend on their selection, education, training and development and hence, we may conclude that staffing is a function of a for reaching consequences. According to Theo Haimann “Staffing is also a liability of the management like its other functions which is to be done by a manager continuously”. Recruitment, selection, training, and development of employees is a continuous process and with the increase in the size of the organization, continuity in staffing also increases. Staffing is influenced by the internal and external environment of the organization and the internal environment includes policies regarding promotion, retirement, etc., while the external environment includes the social, economic, political, and educational environment of the country and speaking both internal and external effect the staffing function.

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In management selection, training, development, and evaluation of manpower are interlinked and hence convert staffing into a system and it is treated as a sub-system of management system because it is linked with organizational structure. Staffing is done not only to fulfill the present vacancies but also to fulfill the future vacancies and here we have to forecast the number and type of vacancies in near future and the level of the educated and trained people required for fulfilling these vacancies and arrange for the fulfillment, education, and training for these vacancies in advance. Staffing is not a phase of organizing but a separate managerial function and staffing is the responsibility of the managers. Staffing helps in determining and securing qualified and capable personnel for various jobs and it places round pegs in round holes and square pegs in square holes and it aims at economical and better employee performance.

Business and Management, Education

How to manage personal finances

Finding out “why”


This is the first step in planning your budget. The reasons could be you want to minimize your spending habits or you have a debt repayment plan and to be debt-free or want to save for any of your long term goals. This step is very necessary because without deciding the purpose of your financial budgeting you can’t plan a proper budget.

Priorities setting


After deciding your whys you need to set your priorities according to your priorities. It is about finding out what’s important to you then controlling the habits of spending and saving to achieve the “why”.
These include your long term and short term goals and syncing them in the order of your priorities. Like you are going to marry soon so you want to buy a house in the future or if there is a couple who wants to plan their children’s higher education expenses, so priorities should be decided at this level.

Track your spending habits


This is the most important step while planning a budget. Spending habits as if you are spending on the unnecessary things in your life. Check your monthly expenses yearly expenses and try to figure out which is unnecessary for you and cut out them.

Choosing the method

with the 50/30/20 rule, 50 % of your take-home pay goes towards your needs. 30% should go towards your wants or discretionary income. Remaining 20% of your take-home pay should go to your savings. for example, if your income is 50000 then 25000 should go towards your need like housing utility, insurance, groceries. 15000 should go towards your wants and the remaining 10000 should go towards your savings.

There are various methods of budgeting like zero-sum budget, anti budget, money flow, etc. Find out which one is best for your according to your spending and priorities.

live with your Budget


There is no use of the method you have decided if you don’t implement it in your life. create a spreadsheet use pen and paper for creating the spreadsheet or you can use many digital tools that are available online for the same like Mint, Clarity money, Tiller money, You need a budget, Digit, Qapital, etc.

Updating the Budget regularly


Review, Revise, Improve
There is no rule for improving your budget. It is up to you your personal satisfaction with your spending habit.
You pick up a budget applied and then not satisfied with the can savings then you can revise your budget again make it do some improvements accordingly again apply and see the result.
Here are a few helpful things to keep in mind while updating the budget-
Slash expenses- If in your budget you are finding yourself overspending then see where you can cut those expenses.

Create seasonal budgeting-

Besides the main budget, a seasonal budget for holiday and summer season should also be maintained.

Link existing habits with new ones-

If you have added some more new spending habits then link that with your existing ones.

Set dates to review and tweak-

You should always review your budget whether you are happy with it or not.

Get help if you need–

MMI offers free budget counseling to anyone struggling with the management of the budget.

Business and Management, Education

Entrepreneurship

What is Entrepreneurship?


Entrepreneurship is an activity which is done by a person to bring out the social change in the world, by innovative technologies, services, products, etc.

In a more formal definition, Entrepreneurship is the activity of setting up a business or businesses, taking on financial risk in the hope of profit.

Hence, entrepreneurship is an act by which a person became independent and lives a life on his/her terms and conditions. Entrepreneurship is about being your boss.

Who is an Entrepreneur?

An entrepreneur is a person who brings about changes for the betterment of society.

An entrepreneur is someone who sees the world from a different angle. An entrepreneur is a risk-bearer, organizer, and innovator.

Entrepreneur as a risk-bearer–

As a risk-bearer, an entrepreneur is the one who buys certain factors of production changes them into a product and sells them at uncertain prices in the future. There is uncertainty about the prices, which is not an ordinary risk that can be insured therefore the entrepreneur is a risk-bearer.

Entrepreneur as an organizer-

As an organizer entrepreneur combines the labor, land, capital other resources to make a product. After selling this product in the market and subtracting all the receipts which remained is the profit.

Entrepreneur as an innovator–

As an innovator entrepreneur is the one who introduces a product, a service or a technology in the existing one to improve the lives of the people.

Example of Entrepreneurs–


Every entrepreneur has a different vision to see the world to find out the best opportunity for them as well as for the improvement of society.

Many successful entrepreneurs influence the world in different ways because as every individual is different, every entrepreneur is different.

Steve Jobs will always be the most famous and successful entrepreneur in the world. He formed an apple computer company. Jobs’ inventions have been a boon in technology. He passed away with a net worth of over $8.3 billion.

Oprah Winfrey is one of the most successful lady entrepreneurs in the world. She is the richest African-American woman. Despite having a past full of thorns she never gave up in life. Now she owns a cable network company named OWN meaning Oprah Winfrey Network. She acquired the name “queen of all media”. She is the only multi-billionaire in American history possessing a net worth of 2.9 dollars.

Elon Musk, who doesn’t know about him. He is one of the most influential South African born American. He launched his first company Zip2 Corporation, in 1995 with his brother, Kimbal Musk and X.com in 1999 which later became PayPal.
In 2002, he founded SpaceX which is a huge success.

These are some of the examples of the most influential entrepreneurs, who are trying to bring a revolution into the world.

Traits of the entrepreneurship–

• Creative thinking– creativity is an important characteristic of an entrepreneur. A creative mind thinks about new ideas. Instead of blaming the situation, they find a solution to a particular problem. They have amazing imagination power. They think that every product, service has a scope of improvement.

• Embrace changes– successful entrepreneurs are very flexible about the changes. They are always ready for the changes and take the advantages out of the situations.

• Hard work vs smart work– Entrepreneurs know when to work hard and when to work smart. They know that neither of the two can substitute each other.

• Use money wisely– Money management skills of the entrepreneurs should be very good. They should know where, when, how much to invest.

• Vision – successful entrepreneurs know everything about their business- why the organization exists, how a product or a service will bring a difference to the existing one, in which market is to be launched.

• Maintain the consistency– successful entrepreneurs are always consistent with their work. They know that success can’t be achieved overnight. They should not give up on the tough situations.
There is a famous saying by an entrepreneur –
“Tough times never last, but tough people do.”- Robert H. Schuller.

Business and Management

SCIENTIFIC MANAGEMENT


The origin of scientific management dates back to the year 1832 when Charles Babbage discussed the principles of scientific management in his book “The economy of manufactures”. In real sense, scientific management owes its origin to Frederick Winslow Taylor, who is commonly regarded as the father of scientific management.

MEANING OF SCIENTIFIC MANAGEMENT

Scientific management may be regarded as a set of scientific techniques that are supposed to increase the efficiency of an enterprise. Under scientific management, the selection of men, machines, materials is made by a scientific approach. Here, all the organizational activities are performed by rationality and proper discipline, this scientific management is a logical approach towards the solution of management and it assumes that the methods of scientific inquiry, analysis and experimentation can be applied to the activities of managers. It means approaching the problems of management in the manner and spirit of scientific research using tools such as definition, analysis, experiments, etc. It is ‘Scientific Management’ as opposed to ‘Traditional Management’ based on the rule of thumb, trial, error. As said by Peter F. Drucker “The cost of scientific management is the organized study of work, the analysis of work into its simplest elements and the systematic management of the worker’s performance of each element”.

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We can summarise scientific management as:

  1. Scientific study and analysis of work.
  2. Scientific selection and training of employees.
  3. Standardization of raw material, equipment, and working conditions.
  4. Reasonable remuneration to employees.
  5. Scientific management is an economical method that makes the best possible use by integration and coordination of available resources.
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MAIN CHARACTERISTICS OF SCIENTIFIC MANAGEMENT

1. A definite plan: To achieve predetermined definite objectives, management needs a definite plan, and the plan should be goal-oriented.

2. A definite objective: In scientific management, every organization has to establish the basic objectives and efforts are to be made by applying physical and human resources to achieve these predetermined objectives.

3. A set of rules: To make scientific management more effective, a set of rules are framed and these sets of rules are tested and verified as regards their effectiveness in the real business situations by a group of persons.

4. Economy: The main aim of scientific management is to achieve the economy of time, money, and labor, and the technique of economy is used for producing maximum at a minimum cost.

5. Scientific analysis and experiment: Before starting any work, the utility, effectiveness, and suitability of plans are to be tested and analyzed, and thus by scientific analysis and experiment, we can choose the best course of action.

6. Increase in efficiency: The techniques of scientific management help in increasing the efficiency of workers and new techniques and improved tools are used for increasing efficiency.

7. Time study: Time study is concerned with labor productivity and according to it, an estimate is made of the amount of work required to be done to perform a job.

8. Cooperation: In the present competitive situation, efforts should be made to establish a cordial relation between labor and capital. Cooperation is essential for efficient management and group efforts for group benefit can be the active cooperation of each individual. 

Business and Management

MANAGEMENT

Management has become an important “Economic organ” of the present industrial society. Every person in the world from the family head to the prime minister of the country or from the worker to the Managing director of a Joint-stock company is busy in managing different types of affairs that he has to perform in discharging his/her entrusted duties. Management is the coordination of human and physical resources towards the attainment of objectives. By managing different activities, we can best utilize our available scarce resources. As the mind of a person controls his activities, similarly management controls the business organization, men, machines, and materials in getting the work accomplished.

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TRADITIONAL AND MODERN CONCEPT OF MANAGEMENT

Management is related to the dynamic process of establishing objectives of the organization, harnessing and coordinating its human as well as other resources, and ultimately to the attainment of goals. It is a process of creating a creating conducive environment for humanitarian efforts, to reach the organization’s goals effectively and efficiently. According to  C.S George who describes management as “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources” Traditional concept of management restricted management to getting things done.

According to the modern view, management covers a wide range of business-related activities. According to modern thinkers, “Management is a process of an activity a discipline and an effort to coordinate, control and direct individuals and group efforts towards attaining the cherished goal of the business”. Another aspect of management is presented by Harold Koontz and O’ Donnell, “Management is the art of getting things done through and with the help of a formally organized group”. To be more specific, to manage is to forecast and to plan, to organize, to command, and to control.

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CONCEPT OF MANAGEMENT

Management is a set of functions directed at the efficient utilization of the resources in the pursuit of organizational goals. To be more specific, to manage is to forecast and to plan, to organize, to command, to coordinate, and to control. To foresee means examining the future and drawing up the plan of action. To organize means building up the dual structure, material, and human of the undertaking. To command means maintaining activity among the personal. To coordinate means binding together, unifying, and harnessing all activities and efforts. To control means seeing that everything occurs in conformity with the established rules and expressed command. By efficient utilization of resources using resources wisely and in a cost-efficient manner. By effectiveness, we mean making the right decisions and successfully implementing them. Efficiency and Effectiveness are interrelated, for instance, it is easier to be effective if one ignores efficiency. The effect of good management is nothing short of remarkable. Take an under-performing-even chaotic-organization and install a skilled manager and him/she soon can have the enterprise humming like a well-tuned machine. Studies have shown that 90 percent of the business fail generally due to poor management.

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Research Paper

HRD and Management in Banking Sector

BHARTI VIJ

Abstract: Management of an organization plays an important role in designing Human Resource policies and their execution. It reflects the attitude of the top management about the ‘people’. Human Resource Development (HRD) has assumed considerable importance in the recent years. Be it a business organization, or a bank or an office, the development of human resources is necessary for its efficient and effective working. In an evolutionary process when developing economy struggles to attain higher levels of living. It can hardly over look the need of developing its human resources to meet bigger and developing new challenges of raising the quality of life of the masses. Human Resource development is a continuous process to ensure the development of employee competencies, dynamism, motivation and effectiveness in a systematic and planned way. HRD has been given due importance by all the organizations in India as it aims at developing all the employees of an organization in a planned manner to acquire and apply their existing capabilities as well as their inner potentials. The present study has been made to analyse and interpret HRD and Management in Banking Sector Industry in India. Major public sector bank SBI has been chosen for the study. The results show that the relationship between management and HRD quite good in this bank and improve in efficiency.

Key Words: HRD, management, People as Assets, Willingness, Commitment, Trust etc.

INTRODUCTION

‘People’ is the most important and valuable resource every organization or institution or institution has in the form of its employees. Dynamic people can build dynamic organizations. Effective employees can contribute to the effectiveness of the organization. Competent and motivated people can make things happen and enable an organization/institution to achieve its goals. Therefore, organization should continuously ensure that the dynamism, competency, motivation and effectiveness of the employees remain at high levels. Human Resource development is thus a continuous process to ensure the development of employee competencies, dynamism, motivation and effectiveness in a systematic and planned way.

T V Rao  (1991) in his work on Human Resource Development has defined HRD in organizational context as a process by which the employees of an organizational are helped in continues planned way to a) acquire or sharpen capabilities required to perform various functions associated with their performance or future expected roles b) develop their general capabilities as individuals & discover & exploit their inner potentials for their own and/or organizational development purposes and c) develop an organizational culture in which superior – subordinate relationship, teamwork & collaboration among the sub-units are strong & contribute to the professional well-being, motivation & pride of the employees.

HRD is concerned with the development of human resource in an organization. Development means improving the existing capabilities & helping them to acquire new capabilities required for the achievement of the corporate as well as individual goals.

Leonard Nadler of George Washington University (USA) who is acclaimed as the originator of the concept of HRD sometimes in the early seventies  defines it as a series of organized activities (such as training, education & development) conducted within specified period of time & designed to produce behavioral change.

HRD in Banking Sector

The core function of HRD in the banking industry is to facilitate performance improvement. Factors like skills, attitudes and knowledge of the human capital play a crucial role in determining the competitiveness of the financial sector. The quality of human resources indicates the ability of banks to deliver value to customers. HRM strategies include managing change, creating commitment, achieving flexibility and improving teamwork. Liberalisation has not only triggered changes in the whole economy, including the banking sector, but has also thrown up challenges for banks, in general, and public sector banks, in particular. Whether Human Resource Management (HRM), an important element in the business process evolution, post-liberalisation, has given a strategic telescopic focus is subject to debate. The primary emphasis needs to be on integrating human resource management strategies with the business strategy. HRM strategies include managing change, creating commitment, achieving flexibility and improving teamwork.

‘State Bank of India (SBI), with a 200 year history, is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. SBI provides a range of banking products through their vast network of branches in India and overseas, including products aimed at NRIs. The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. The Government of India is the single largest shareholder of this Fortune 500 entity with 61.58% ownership. SBI is ranked 60th in the list of Top 1000 Banks in the world by “The Banker” in July 2012.

Review Of Literature

A number of studies have been conducted with respect to Large Scale Industries on HRD practices in this bank. However, little effort has been made to study HRD practices in state bank of india.

Abraham 1988: 48-64, in his studies on HRD practices have been made in the past. A review of literature has been made to highlight the type of practices, other organizations are making so that a linkage could be established. HRD climate is an integral part of organizational climate.

Raman (1989:342-365) in his study on HRD experiences in State Bank of India underlines the main objectives of HRD for the bank is to create a climate of openness and trust, build a collaborative culture whereby everyone is an important member of an effective team, promote human capabilities and competencies in the organization, bring integration of individual and organizational goals, improve quality of life.

Usha Krishna (1986) explores the HRD sub-systems in the Sundram Fasteners Ltd. (SFL). The HRD unit there started working on organizational structure (focusing on clarifying reporting relationships, outlined key responsibility areas), manpower planning, placement, development oriented performance appraisal system, training and development, rewards and career planning.

Rao (1989: 210-25), Discussing the HRD initiatives in Steel Authority of India Ltd (SAIL) has mentioned that the areas were identified as ‘Priority of Action’ include- improvement in work culture, optimum use of installed capacity, increase in productivity, generate profits through control of costs, customer satisfaction.

Rao (1992: 350-371), in his analysis of 14 organizations, mentioned that L & T was the first to start integrated HRD system, inspiring other organizations to do so. Several organizations, however, made some innovations in the HRD Sub-systems. A Study conducted by XLRI centre for HRD in 1984 shows that HRD climate data was available for 6 organizations including Voltas , Jyoti Ltd. SBI, L& T , CGL, SBP and ICC. Examining the results, Rao and Abraham (1986: 73-85) reveal that L & T and Voltas have HRD climate to the extent of 60 per cent on 100 point scale and remaining 5 are in the middle range (around 50 percent).

Objectives of the Study

The study aims at achieving the following objectives.

  1. To study HRD and management in public sector bank in India i.e., State Bank of India.
  2. To study the subsystem relation to management and HRD.
  3. To study the role of management in developing human resources of their organizations.

Research Methodology

Banking sector is large one spread ever length and breadth of the country so we are constrained to limit our study to public sector banks i.e., State Bank of India.

For the purpose of the study the date has been collected on the basis of questionnaire which included questions on the perception of top management about its human resources and creating HRD climate in its organization. A sample of 120 respondents on random basis includes employees from both the selected banks. For the present study respondents were drawn from the various branches of the banks located at Ambala, Kurukshetra and Panchkula.

Statistical Analysis

The data was converted into scores by using 5- point scale. The data was tabulated and summarized by adding the scores of all the respondents and classified in two parts: The perception of the top management about its human resources and HRD Climate of the organization resulting there from. For the 1st part i.e. perception of the top management about its human resources, the opinions of the respondents have been presented on the 5 point scale by converting the respondents for each point of the scale into percentage. For the second part i.e. HRD Climate, the opinions of the respondents were sought on 13 parameters were added together to observe as to what type of developmental climate existed in the public sector undertakings under study. The opinions were converted into scores on 5 point scale. Average scale of 3 and around indicated a moderate tendency on that dimension existed in the organization where as score around 4 denotes „good‟ HRD climate on htat dimension. To make the interpretation easier, the mean score was converted two percentage score by using the formula: (Mean Score -1) x 25 = Percentage Score (Rao, 1991: 39). This was done by assuming that a score of 1 represents 0 percent, a score of 2 respondents 25 percent, a score of 3 respondents 50 percent, a score of 4 respondents 75 percent, and a score of 5 residents 100 percent. The percentage score thus indicated the degree to which the particular dimension existed in the company out of 100.

Limitations

As the study is limited to one public sector bank, its results cannot by generalized due to different management perception and HR practices in different organizations. Despite these limitations, the study provides insight into perception of the management about HR which can be used for further research in this area and can help the bank employees to improve HRD in their organizations and thereby increase their productivity and efficiently.

Analysis and Interpretation

The policy and philosophy of the management plays an important role in the development of Human resources in any organization. Effective management policy is, therefore, viewed as a subsystem of HRD. As indicated earlier, the opinions of the respondents have been analyzed to study the Perception of the Management about its Human Resources.

1 The Perception of the Top Management about its Human Resources

The opinions of the respondents on this subsystem on a number of variables including the importance given to Human Resources by the top management, management’s commitment to ensure employee development, willingness of the management to invest their resources for employee development, readiness of the people to help each other, team spirit, developing employee potentials, using employee potentials for career planning, enhancing inter-group competence, encouraging people to improve their capabilities, creating climate of trust, openness, collaboration, pro-activity, its commitment to bring in organizational change, and its awareness to the environment changes were obtained and analyzed as under:-

  1. A) Importance given to Human Resources by the Top Management

Top Management believes that human resources are extremely important and are needed to be treated more humanly in the organizations. Opinions of the respondents on this variable (Table-1: a) indicate that more than 33.83 per cent of the respondents sometimes true with the statement whereas 19.83 per cent of the respondents mostly true and rarely true with the statement. It indicates that the managements of this public sector undertaking consider the human resources in their organization to be extremely important to them. Further, 15.70 per cent of the respondents partially mostly true and partially not at all true with the statement indicating that some of the employees or the departments are not fully aware of the management policies or do not agree with them.

  1. B) Management gives importance to Human Resources

Top Management in State Bank of India believes that human resources are extremely important and are needed to be treated more humanly. More than 27.27 per cent of the respondents described the statement (Table-1: b) as almost always true; whereas 31.40 per cent of the indents expressed the statement to be sometimes true’.

  1. C) Development of Subordinates by the Superiors

Top Management in State Bank of India believes that human resources are extremely important and are needed to be treated more humanly. More than 27.27 per cent of the respondents described the statement (Table-1: c) as almost always true; whereas 31.40 per cent of the indents expressed the statement to be sometimes true’.

  1. D) Willingness of the Management to Invest their Resources for Employee Development

The management of State Bank of India seems to be willing to invest their time and resources for employee development. This view has been confirmed by 31.40 per cent of the respondents expressing it to be ‘sometimes true’(Table-1: d) where as 36.36 per cent of the respondents considered it to be ‘Mostly true’.

  1. E) Management helps juniors to learn their job

from the opinion of the respondents (Table-1: e), in State bank of India, seniors in this bank take active interest in their juniors and help them learn their job. There was good relationship between senior and juniors and they help each other in their job. 31.40 per cent of the respondent viewed this statement as ‘mostly true’ and 14.05 per cent of the respondents considered it to be ‘almost always true’.

  1. F) Creating Atmosphere of Trust and Openness

  From the opinion of the respondents (Table-1: f) it can be inferred that management of the organizations are creating an atmosphere of trust and openness. The employees in State bank of India are not afraid to express or discuss their feeling with their superiors. It appears that superior and subordinate relationships are good. 13.23 per cent of the respondents fully agreed with this view point where as 30.16 per cent the respondents considered the statement to be ‘Mostly true’. . In the opinion of the respondents of this bank, 56.44 per cent considered the statement to be ‘mostly true’, whereas 23.76 per cent considered is to be sometimes true and another 11.57 per cent felt it to be rarely true.

  1. G) Freedom to take Initiative (Pro-activity)

“Pro-activity” seems to exist in these units as evident from the opinions of the respondents State Bank of India, it appears that the organization partially allows the employees to take initiative and do things on their own without having to wait for instructions from superiors as 25.62 per cent of the respondents considered this statement(table-1: g) to be ‘mostly true’ and another 30.58 per cent of the respondents considered it to be ‘sometimes true’ indicating that in some of the departments there is lesser degree of freedom to take initiative. It may be due to the nature of work requiring precision and quality in these departments.

  1. H) Identification of Employee Potentials for Career Planning

The top management of Punjab National Bank makes efforts to identify and utilize the potential of the employees. In the opinions of the respondents of State Bank of India, were divided as 19.83 per cent of the respondents considered the statement (Table-1:h) to be ‘almost always true’ whereas 33.06 per cent of respondents considered the statement to be ‘sometimes true’. It can be inferred that employee potentials play an important role in their career development.

  1. I) Management guide and prepare for future responsibilities

In the opinion of the respondents, managers guide their juniors and prepare them for future responsibilities/roles they are likely to take up as 37.19 percent mostly true and 25.62 percent sometimes true in this statement(Table-1:i). The management helps them to find proper path for their role play in the future.

  1. J) Enhancing Inter-group Competence

A study of the Table-1(j) shows that a sizable number of respondents about 36.36 per cent of the respondents of State Bank of India were of the opinion that ‘manager’ in this organization believe that employees behaviour can be changed and people can be developed at any stage of their life by viewing the statement to be ‘mostly true’ whereas 26.45 per cent of them were of the opinion that the statement is ‘sometimes true’ (Table-1: j). This view indicating that management does not pay attention to the developmental needs of all the employees in the organization.

  1. K) Encouragement to Improve Employee Capabilities

  Employees are encouraged to improve their capabilities by the managements of the public sector undertakings. The managements believe that this will result in enhanced employee competencies, better performance and achievement of organizational goals. Employees are encouraged to experiment with new methods and try out creative ideas in State Bank of India. In the opinion of the respondents of this bank, 27.27 per cent considered the statement to be ‘mostly true’ where as 30.58 per cent considered is to be sometimes true and another 21.49 per cent felt it to be rarely true.(Table-1:k)

  1. L) Creating Team-spirit

‘Team spirit’ is of high order in State Bank of India as evident from the seems to be in the opinions of 34.71 per cent of the respondents who termed it as ‘mostly true’ another 17.36 per cent considered it to be ‘almost always true’. However, 27.27 percent of the respondents ‘sometimes true’ (Table-1:L) to it indicating that more efforts are needed in some of the employees or departments in these organizations.

                                                                        Table-1

From the above discussion, it can be inferred that in the present economic scenario of globalization, the public sector undertakings seem to be quite aware of the changes taking place in the world market. The increasing competition from the MNCs has necessitated improving employee competencies, efficiency and professionalism in their approach. The public sector undertakings are trying to develop employee potentials and creating a climate of change and development in their organizations. Much more is needed on their part to cut costs and build quality and efficiency. In the succeeding discussion efforts have been made to analyse the existing HRD in this organizations.

Conclusion

The following conclusions can be drawn on the basis of above analysis and discussion:

  1. Management policy is an important sub-system of HRD in both banks. In view of the respondents, the management of both public sectors in general believes that its human resources are important to them. In SBI, management policy is better than PNB. Further, it is evident from the opinions of the respondents that the management makes efforts to ensure that employees enjoy their work. It appears that development of subordinate is considered to be an important part of the job of the superiors in most of the cases. Further, management also invests its time and money for employee development to some extent as evident from the views expressed by the respondents.
  2. More than 60 per cent of the respondents in general agreed that the managements are making efforts for identifying and developing employee potentials. Further, these potentials are used for career planning of the employees. Employees are also encouraged to improve their competencies and management enables them to enhance their inter-group competence.
  3. The management is trying to build up developmental climate as evident from the opinions of the respondents. Nearly 65 per cent of the respondents stated that there exists climate of trust, co-operation, proactivity, openness and team work. It indicates that the HR development practices in these organizations are picking up due to the philosophy of the management.
  4. A study of the parameters indicates that the opinions of the respondents are closely associated on all these aspects which again strengthen conviction of the top management about its commitment for the development of its human resources.
  5. Existence of good HRD was observed in this public sector undertaking. It indicates that the management is building congenial atmosphere for all round development of the employees.

On the whole, the study reveals that the top management has a strong perception about the importance of its human resources that the organization cannot grow without the development of the people working in it and therefore, it is committed to invest its resources for their development. However, there is still a good scope for improvement as indicated earlier. The changing paradigms in HR need to be incorporated for better development of the HR and the organization. New concepts are to be practiced and new policies need to be framed for further growth of the organization.

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