HRD climate in Indian Banks: a comparison between SBI & KVB.
| Author | Lakkoju, Srinivas |
| Position | Human resources development - State Bank of India - Karur Vysya Bank |
Introduction
Technology is changing the face of banking business in India. Nowadays, customers are demanding various services through traditional and internet banking systems. Consequently, there is an enormous increase in banking business. Hence, banks are using technology extensively also going for massive recruitment to face the challenge. In this context, the key issue confronting human resources development (HRD) system in banks is to align employees' attitudes, skills and knowledge with changing nature of work and growing expectations of customers. In a recent survey conducted by FICCI, banks unanimously asserted that HRD was the major issue faced by them. The survey indicates that few banks are still in the course of revamping their training programs and placing emphasis on hard skills as well as soft skills. They are keen to tie up with external training agencies for in-house training. Some have already tied up with top universities and business schools across the country to receive help in this initiative (FICCI, 2010).
HRD Climate Perspectives
HRD climate is an integral part of organizational climate. It comprises three elements viz. General Climate, OCTAPACE culture and HRD mechanisms and assumes the following:
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A supportive climate which consists of top management's and line management's commitment, good personnel policies and positive attitudes towards development of human resources is important for effective HRD.
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A successful implementation of HRD involves an integrated look at HRD mechanisms and efforts to use as many mechanisms as possible. These include training and development, performance and potential appraisal, career planning and development, performance based rewards, feedback and counseling, job-rotation, etc.
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OCTAPACE culture is essential for facilitating HRD. 'Openness' is said to be there when employees are allowed to freely express their ideas and exchange feelings with each other. 'Confrontation' is bringing out problems and issues into open with a view to solving them rather than hiding for fear of hurting or getting hurt. 'Trust' is taking the people at their face value and believing what they say. 'Autonomy' is giving freedom to let people work independently with responsibility. 'Proactivity' is to encourage employees to take initiative and risks. 'Authenticity' is the tendency on the part of people to do what they say. 'Collaboration' is to accept interdependencies, to be helpful to each other and work as teams. 'Experimentation' is to give human resources an opportunity to do experiments related to workplace activities (Rao & Abraham, 1986).
Quality HRD Climate. Why?
Since, technology ingrains in all aspects of functioning of a bank, there is a need to foster favorable HRD climate to exploit human resource potential for profiting from investments made in technology. Unlike in the past, now employees need to involve in teamwork that is interactive in nature, have system-wide understanding and specialized knowledge and possess customer assistance oriented competencies (Kamesam, 2004). When technology is becoming a great leveler, it is the people and people alone can make the difference and catapult the organization to newer and unconquered heights (Dinesh, 2012).
Following are the main reasons for which banks are compelled to carry out HRD activities:
(i) Lack of capable managerial workforce and there is a greater need for available talent due to increasing competition.
(ii) The continued growth and development of business, coupled with increased complexities such as the problems of size, technology and competition add further pressures (Mani, 1994).
Literature Review
Rohmetra (1998) reports significant variations in HRD climate between SBI and J&K bank. Particularly, she finds several inadequacies in HRD climate of the private sector bank. Similarly, Gani and Shah (2001) find a poorly perceived climate in the banking industry. They observe that the situation in private sector is worse. Riyaz (2002) finds a moderate level of OCTAPAC culture in commercial banks. Vijaya, et al. (2004) find that the performance appraisal system in SBH is designed well to address the performance needs of managerial personnel ignoring clerical personnel. Chalam and Srinivas (2005) learn that women employees perceive a favorable HRD climate in SBI, despite their subordinated working conditions. Pillai (2008) identifies a moderate degree of HRD climate in banks. In a study of service sector where banks have a larger share in the sample, Srimannarayana (2008) observes relatively a less degree of favorable HRD climate. The review finds dearth of comparative studies particularly subsequent to advancements in technology and new competition.
Objectives of the Study
Following are the objectives of the present study:
* To compare HRD climate perceptions held by the sample respondents in the two selected premier public and private sector banks i.e. State Bank of India and Karur Vysya Bank, respectively
* To discuss implications of the results.
Hypothesis
The study formulates a multivariate hypothesis and adopts one-way ANOVA technique to test it. Besides, the study conducts post-hoc analysis by employing t-Test: paired two sample for means, to verify validity of ANOVA result.
Sample & Data Source
The study depends on a HRD climate doctoral survey conducted in the State of...
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