CHAPTER - 1

kfl
RESEARCH DESIGN &
REVIEW OF LITERATURE
v_y
1.1 INTRODUCTION
The Financial System is the most important institutional and
functional vehicle for economic transformation of a nation. The Banking
sector is reckoned to be the heart of an economy and the finance it pumps
into it is its life blood. The Banking sector is also considered as the hub
and barometer of the financial system of a country. The geographical
pervasiveness of the banks coupled with the range and depth of their
services make the system an indispensable medium in 'Payment
Mechanism' which touches the lives of millions of people every day and
everywhere. As a pillar of the economy, this sector plays a predominant
role in the economic development of a country. Although banks create no
new wealth, their borrowing, lending and related activities facilitate the process
of production, distribution, exchange and consumption of wealth. In this way,
they become very effective partners in the process of economic development.
Thus the banking sector has been playing a significant role as a growth
facilitator.

Banking system in India is an important service sector of the economy, and

has developed itself into an effective instrument of socio-economic change in
consonance with the national goals. Network of banks has expanded
geographically, and diversified into complex and challenging areas. Banks are
growing in size and entering into new areas of business viz. merchant banking,
mutual funds, venture capital, factoring services, single window banking,
banknet, core banking, universal banking, net banking, phone banking etc. All
these require technical and managerial human power for the future. The long-
term vision for India's banking system to transform itself from the domestic
level to the global level may sound far-fetched at present. To take up this
industry to the heights of international excellence requires combination of new
technologies, better processes of credit and risk appraisal, treasury
management, product diversification, internal control, external regulations and
human resources at the best. The future needs of banking sector can only be
met if the present human resources are properly and effectively developed and
utilized.
Awareness about the importance of the human side of an organization is a
functional necessity for any dynamic and growth oriented enterprise. The future
of any organization is detennined by the dynamism, competence and
effectiveness of its employees. Unlike other resources, human resources have
rather unlimited potential capabilities. The capabilities needed for the job have
to be identified, acquired and utilized for efficiency. Need based development
of human resources in a systematic and planned manner has become the prime
objective of any organization. Planned development of human resources is
needed for its effective utilization and for higher level of economic growth in a
country.
Banking sector being a service sector industry, is highly labour intensive
and therefore its growth and development is wholly dependent on its quality of
human resources, which in turn, is dependent on the quality of HRD practices
for enhancing, sharpening, refining the capabilities of its employees, and their
motivation. An effective implementation of HRD activities would result in
excellent organizational climate for the people to help them become competent
and productive. Nevertheless, it is not only the implementation of HRD
practices but also their review from time to time that helps the banking
institutions maijitain their status in today's competitive environment.
HRD is an important area for managers, administrators, social scientists
and policy makers. HRD is not a set of mechanisms and techniques but a
continuous process of developing an organizational culture. It aims at helping
employees acquire capabilities needed for attainment of present and future
goals. It is the responsibility of every organization in general, and executives in
particular to ensure development and utilization of its employees in a healthy
and motivating work environment. The productivity and performance of an
organisation mainly depends upon the HRD system. Basically, the need based
training, on the basis of performance appraisal and career planning, can
motivate employees and give job satisfaction. Various welfare measures and
the quality of work-life programmes generate a sense of belonging that benefits
the organization in the long run and helps in improving the employer-employee
relations. Rewarding employees plays an important role in developing
personnel and encourages them to develop positive attitude skills.
1.1.1 Present Study
The present study concentrated on the comparison of Human Resources
Development Policies in State Bank of India and ICICI Bank. HRD in banks is
a growing need in view of expansion and diversification of Public Sector Banks
and Private Sector Banks. The choice of comparison of HRD policies of both
the banks is justified on various counts. Both the banks under study realized a
laudable performance of business and have substantially contributed to the
realization of corporate and national goals. SBI is the largest bank in India
while ICICI Bank is the second largest bank in India and the largest in the
private sector. India has made remarkable progress during the last 60 years and
continues to be one of the fastest growing economies in the world. These banks
have contributed to a large extent to it. Today, Indian Financial Service
Companies are much more efficient in terms of processes, quality and
financing than they were a decade earlier.
The need of HRD is more in service based organizations like the banking
sector as they are labour intensive sectors. Human Resource Development
seeks to bring about overall development of employees by enabling them to
improve their knowledge, skill and behaviour. It also helps them develop better
awareness about their roles in the work situations, and contributes to the
process of integration of the employees with the organization. An efficient and
effective commercial banking activity is the result of effectively motivated
employees. A banking institution is said to be functioning efficiently, if its
objectives are achieved effectively. However, these objectives can be achieved
flilly only when the employees are trained, committed and motivated. Thus, the
efficiency and effectiveness of commercial banking will depend upon how well
the management has taken care of the development of their employees in these
institutions. It has been widely recognized that improving human skills through
well-tailored HRD programs can enhance the productivity of any organization.
State Bank of India, the largest bank in India, is a pioneer in many
activities, and is committed to implement all the development policies of the
Government of India. This bank has contributed significantly to the
development of the trade and industry in the country. It is the largest provider
of infrastructure debt and the largest arranger of external commercial
borrowings in the country. It is expanding its Rural Banking base. Looking at
the vast untapped potential in the hinterland, it is planning to expand its rural
banking base and proposes to cover 100,000 villages in the next two years. SBI
has undertaken several banking and non-banking activities to serve the
community at large, thereby meeting its social responsibility. These include
financial assistance to women, physically handicapped persons, slum dwellers
and to under-privileged children. State Bank of India has a great story in the
field of Human Resource Development also. It has a well-structured HRD
setup and a wide spectrum of HRD activities. The training system of SBI is
now recognized as one of the best systems in the country.
It is indeed a matter of pride that ICICI Bank has emerged as an important
global player and has developed the ability to drive innovations and change the
dynamics of the existing market place. ICICI Bank has been a market leader
over the past decade and has redefined the banking landscape through a deep
understanding of customers' needs. It has leveraged technology and introduced
several innovations to make banking simple and convenient for the customers.
It provides essential elements for inclusive growth: primary health, elementary
education, and comprehensive access to financial services. ICICI Bank stresses
on empowering the poor to participate in and benefit from the Indian growth
process. In addition to this, ICICI Bank is participating in the development of
agricultural and allied activities, small-scale industry and loan facilities to
customers. It is India's second largest bank with total assets of? 473647. Icrore
and profit, after tax, of? 6465.26 crore for the year that ended on March 31,
2012. The bank has a network of 2752 branches in India. It has 9225 ATMs in
India. It has its headquarters at Mumbai. The total number of employees of
ICICI Bank is more than 80,000. It is the largest lending bank in the private
sector in India.
1.1.2 Problem Area
The areas of HRD are selected because of growing job dissatisfaction,
disturbed industrial relations, flight of talent, lack of professional skills, low
productivity and low return on investment. The present study shall help in
locating causes of these problems and shall help in suggesting the remedies.
The study shall not only help the organization and its executives, but also guide
policy makers in various ways. The study is expected to suggest new areas of
research in the subject for the researchers.
1.1.3 Need for the Study
In the wake of deregulation, liberalization and globalization of the Indian
economy, the banking system is also getting gradually internationalized. The
process of globalization of Indian economy has become irreversible and will be
further intensified. In such an environment, Indian commercial banks have to
equip themselves to meet the challenges of competition within the country as
well as outside. And as they proceed to do this, they have to ensure that their
human resources remain sound in order to face such challenges. The image of
the bank and its overall effectiveness, to a large extent depends upon the
performance level of its employees. Performance of employees can be
enhanced only through the implementation of HRD programs. The more the
implementation of HRD programs the better the performance of employees.
HRD is the basic requirement of any dynamic organization. Success of any
organization depends on the development of its human resources. In an ever-
changing environment, HRD is indispensable. HRD is a new and emerging area
of knowledge that has fascinated the interest. Various studies have been
conducted on HRM in the public sector, but no study has been conducted to
examine the developmental aspects of human resources in detail.
1.1.4 Scope of the Study
The study has covered the existing mechanisms and practices in HRD in
the SBI and the ICICI bank. The comparison of various HRD mechanisms in
the development of human resources and in the growth of the organization has
been assessed. These banks have been selected because SBl is the largest bank
in the Public sector and ICICI Bank is the largest in the Private sector. The
scope and the coverage of the study is limited to Punjab only, in view of the
objectives of the study.
The study includes not only the theoretical framework of reference but the
practical aspect also. The theoretical framework includes concepts, philosophy
and evolution of HRD process. It covers various mechanisms in HRD system
with their inter-relation. The practical aspects cover an analysis of data,
contribution to HRD system in terms of the goals of the organization and the
objective of the study.
1.1.5 Objectives of the Study
The principal objectives of the present study are:
1. To study the existing system and practices of HRD in the State Bank
of India and the ICICI Bank.
2. To compare the contribution of various HRD mechanisms in the
development of human resources in both the banks.
3. To compare the various dimensions of organizational climate and the
role of the management in building HRD climate in both the banks.
4. To compare the extent of job satisfaction among officers in relation to
the HRD system in the SBI and the ICICI Bank.
1.2 RESEARCH DESIGN AND METHODOLOGY
1.2.1 Universe
The officers of the State Bank of India and the ICICI Bank from Punjab
form the universe of the study. The staff position of officers in the SBI is 2058
out of total strength of employees of 5088 in Punjab. The staff position of
officers in the ICICI Bank is 7200 out of the total strength of 12000 employees
in Punjab.
1.2.2 Sample
The sample size is of 100 officers each from all grades of the SBI and the
ICICI Banks of Punjab. The sample consists of officers from all grades selected
on the basis of random sampling.
1.2.3 Variables and Indices
Data in respect of age, educational qualifications, work experience etc. has
been gathered to see the socio economic status of the respondents. As the study
covers HRD policies in the SBI and the ICICI Bank, the various indicators such
as appraisal systems, training techniques and facilities, career planning,
organization development and interventions were considered and analyzed.
To study the appraisal system of the organization, indicators like
satisfaction of the appraisal system, how it helps in identifying training needs,
the awareness regarding career path and the procedure followed for
advancement in career, and the basis of placement decisions were studied.
Respondent were asked about the basis for evaluation of performance and were
asked to rank their criteria in order of their preference. Respondent were also
asked to give suggestions for the improvement of the existing appraisal system
to enable the researcher to throw light on the weaknesses of the system and to
furnish suggestions for the management and the organization as a whole.
In respect of training, the respondents were asked various questions on
satisfaction and preference for method of training and how training helps in job
enrichment so as to analyze the relation between training and development.
To see the extent of organization development and the various steps taken
to improve the organizational climate, questions were asked in the form of
statements where respondent were to say 'yes' or 'no' or to give the extent of
their agreement. The statements were designed to conclude the belief of the
management about the nature of human resources, the management's concern
for HRD and its satisfaction as regards to HRD department. Four statements
were designed and used to measure the relationship of work and job
satisfaction.
To study the organizational climate, six dimensions viz. work conditions,
training, rewards, worker's participation in management, discipline and
communication pattern were analyzed on the basis of the responses of the
respondents. Lastly to examine the role of the management in building HRD
climate, eight statements were used. The respondents were to show the extent
of their agreement or disagreement on a five-point scale.
1.2.4 Data Collection

The data was collected from both the banks under the study from primary
and secondary sources. The primary data for the purpose was collected through
questionnaires, interviews and observations. The questionnaire was prepared
with utmost care keeping in view the objectives of the study. Before finalizing
questionnaire it was shown to experts in the field and was altered and
reformulated a number of times. Pre-tests were conducted on ten persons and a
few questions and statements which were not clear enough to get a proper
response were altered, and then the final questionnaire was prepared.

The primary data has been supplemented by secondary data available from
the published reports, manuals, circulars, notifications, publications and other
literatures related to the topic under study. The relevant information from
various research journals, books etc. have also been considered.

1.2.5 Tabulation and Analysis of Data

After the collection of data it was categorized. The coding of numbers was
done and a code design was prepared before tabulation. The collected data was
edited and tabulated before any statistical treatment was given. Various
statistical tools viz. averages, percentages, weighted ranks, chi-square tests etc.
were applied to derive results and findings.

Chi-square is calculated as

^^ = Sif.'f.f
where fo= frequency of occurrence as observed

and f^ = frequency of occurrence as expected.

Degree of Freedom ( df) is calculated as df= ( k-\), where k = number

of classes.

The significance is tested at 5% level for various degrees of freedom to

interpret the data and to arrive at the conclusion.
1.2.6 Hypothesis
Hypothesis refers to the assumptions made about a population which may
or may not be true and which is to be tested on the basis of evidence from a
random sample.
Null Hypothesis: There is no significant difference in perception regarding
HRD policies amongst officers of the SBI and the ICICI Bank.
Alternate Hypothesis: There is significant difference in perception regarding
HRD policies amongst officers of the SBI and the ICICI Bank.
Following hypothesis have been set for the purpose of testing:
Hoi: There is no significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank.
Hal: There is a significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank.
Ho2: There is no significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank
below the age of 45 years.
Ha2: There is a significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank
below the age of 45 years.
Ho3: There is no significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank
above the age of 45 years.
Ha3: There is a significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank
above the age of 45 years.
Ho4: There is no significant difference in satisfaction with the Performance
Appraisal System amongst the Graduate officers of the SBI and the
ICICI Bank.
Ha4: There is a significant difference in satisfaction with the Performance
Appraisal System amongst the Graduate officers of SBI and ICICI
bank.
Ho5: There is no significant difference in satisfaction with the Performance
Appraisal System amongst the Post Graduate officers of the SBI and
the ICICI Bank.
Ha5: There is a significant difference in satisfaction with the Performance
Appraisal System amongst the Post Graduate officers of the SBI and
the ICICI Bank.
Ho6: There is no significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank
with a work experience of less than 10 years.
Ha6: There is a significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank
with a work experience of less than 10 years.
Ho7: There is no significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank
with a work experience of more than 10 years.
Ha7: There is a significant difference in satisfaction with the Performance
Appraisal System amongst the officers of the SBI and the ICICI Bank
with a work experience of more than 10 years.
Ho8: There is no significant difference in perception regarding the
satisfaction with the training activities amongst the officers of the SBI
and the ICICI Bank below the age of 45 years.
Ha8: There is a significant difference in perception regarding the
satisfaction with the training activities amongst the officers of the SBI
and the ICICI Bank below the age of 45 years.
Ho9: There is no significant difference in perception regarding the
satisfaction with the training activities amongst the officers of the SBI
and the ICICI Bank above the age of 45 years.
Ha9: There is a significant difference in perception regarding the
satisfaction with the training activities amongst the officers of the SBI
and the ICICI Bank above the age of 45 years.

10
Ho 10: There is no significant difference in perception regarding the
satisfaction with the training activities amongst the Graduate officers
of the SBI and the ICICI Bank.
HalO: There is a significant difference in perception regarding the
satisfaction with the training activities amongst the Graduate officers
of the SBI and the ICICI Bank.
Holl: There is no significant difference in perception regarding the
satisfaction with the training activities amongst the Post Graduate
officers of the SBI and the ICICI Bank.
Hall: There is a significant difference in perception regarding the
satisfaction with the training activities amongst the Post Graduate
officers of the SBI and the ICICI Bank.
Ho 12: There is no significant difference in perception regarding the
satisfaction with the training activities amongst the officers of the SBI
and the ICICI Bank with a work experience of less than 10 years.
Hal2: There is a significant difference in perception regarding the
satisfaction with the training activities amongst the officers of the SBI
and the ICICI Bank with a work experience of less than 10 years.
Hoi3: There is no significant difference in perception regarding the
satisfaction with the training activities amongst the officers of the SBI
and the ICICI Bank with a work experience of more than 10 years
Hal3: There is a significant difference in perception regarding the
satisfaction with the training activities amongst the officers of the SBI
and the ICICI Bank with a work experience of more than 10 years.
Ho 14: There is no significant difference in the overall perception in respect to
HRD practices in the SBI and the ICICI Bank.
Hal4: There is a significant difference in the overall perception in respect to
HRD practices in the SBI and the ICICI Bank.
Ho 15: There is no significant contribution of the top management in building
the overall HRD climate in the SBI.

11
Ha 15: There is a significant contribution of the top management in building
the overall HRD climate in the SBI.
H0I6: There is no significant contribution of the top management in building
the overall HRD climate in the ICICI Bank.
Hal6: There is a significant contribution of the top management in building
the overall HRD climate in the ICICI Bank.
1.3 LIMITATIONS
This study has the following limitations:
1. HRD is a wide field of study with a large number of factors contributing
towards the development of people in any organization. It has been
difficult to study all indicators contributing to the HRD.
2. The scope of the study has been kept limited due to the scarcity of time
and resources.
3. The study has been conducted in the present scenario and is subject to
change in the future.
1.4 PLAN OF THE STUDY
In all, the study has seven chapters including the present one.
Chapter I Entitled "Research Design and Review of Literature"
comprises of the need, scope, objectives, limitations and research methodology
of the study and a review of literature.
Chapter II Entitled "HRD Policies - A Theoretical Framework" includes
the conceptual analysis of Human Resources and their importance, Human
Resource Management, and Human Resource Development. It attempts to find
out the suitable and comprehensive meaning and definition of the concept of
HRD and its significance in an organization with special reference to banks.
Chapter III Entitled "State Bank of India and ICICI Bank- an
Overview" covers evolution of banking, history of banking in India,
importance of HRD in banks in the present environment and an overview of the
State Bank of India and the ICICI Bank, their creation, growth and present
position. This chapter also covers the main business areas, management and
organization of the SBI and the ICICI Bank.

12
Chapter IV Entitled "Presentation, Analysis and Interpretation of
Findings Regarding Performance Appraisal in SBI and ICICI Bank"
includes comparison of the results of the SBI and the ICICI Bank on the basis
of data collected in the course of the survey regarding the satisfaction level
with the Performance Appraisal System, how far it helps in identifying the
training needs, awareness regarding the career path and the procedure followed
for advancement in career, and the basis of placement decisions.
Chapter V Entitled "Presentation, Analysis and Interpretation of
Findings Regarding Training and Development in SBI and ICICI Bank"
is devoted to a comparison of the training facilities and the contribution of
training as one of the important mechanisms in the HRD process in the SBI and
the ICICI Bank on the basis of the data collected in the course of the survey.
Chapter VI Entitled "Presentation, Analysis and Interpretation of
Findings Regarding Organization Development in SBI and ICICI Bank"
contains various aspects of organization development in the SBI and the ICICI
Bank. In this chapter comparison have been made regarding human nature,
satisfaction from work, the management's concern for HRD activities, the
working of the HRD department, environment at the work place (interpersonal
relationships, recognition of work etc.), work conditions and other facilities,
worker's participation in the management, and the role of the management in
building the HRD climate of the SBI and the ICICI Bank. On the basis of the
data collected and studied in the course of the survey,findingswere reported in
respect of the respondents' perceptions regarding the above. Various
dimensions of organizational climate were analyzed to arrive at the
conclusions. Comparison of relationship between work and job satisfaction was
also examined on the basis of the scores of the respondents of the SBI and the
ICICI Bank.
Chapter VII Entitled "Summary, Findings, Conclusions and
Suggestions" includes summary, findings, conclusions alongwith suggestions
of the study.

13
1.5 REVIEW OF LITERATURE
The empirical studies available in India and abroad having direct and
indirect bearing on the objectives of the present study are reviewed under some
prominent area namely the concept of Human Resource Management, Human
Resource Development, Human Resource Development in Banks etc.
Leon C. Megginson (1977)' opines that the quantity and quality of human
resources are the functions of the number of productive individuals, their
inherent abilities, and the extent to which those abilities are modified through
environmental factors such as education, training and development. Those
productive factors are realized in the abilities of employees to produce within
the limitations imposed by existing organizations, technologies, and other
resources. They also manifest themselves in the individual's abilities to
generate new ideas, develop new and improved capital goods, and otherwise
modify the available physical and financial resources in order to achieve
greater productivity and human satisfaction.
Unfortunately, these resources are often wasted through under-
employment, obsolescence of skill, lack of work opportunities for the older and
younger workers, and for minority groups and women, poor personnel
practices, and the difficulties of adjusting to change. Also, an organization
rarely "buys" employees' productivity in the sense that they are paid in direct
proportion to what they produce. Instead, it buys their time for the period they
are on the job, and hopes that productivity will result. Thus, as human
resources account for such a large proportion of economic output, there are
tremendous possibilities for increasing productivity through the intelligent
development of employee abilities in the industrial, commercial, governmental
and service complexes of our economic system.
Jack Halloran (1978)^ stating the Hawthorne experiment, opined that the
employees themselves provide a clue to the changes in the output. He also
stated that it was easier to work faster, because work in the test room was fun
and there was little regular supervisory control.

14
 Basavaraj Rudra (1989)^ opined that an organization is the rational co-
ordination of the activities of a number of people for the achievement of some
common explicit purpose or goal through a division of labour and functions,
and through a hierarchy of authority and responsibilities. He further observed
that the organization is perhaps one of the most important innovations of man
in society to deal with the affairs in a company, a community, a relation, a
state. Since no man can achieve his ends by himself in isolation, he has sought
to harness the resource of man, machines, materials, markets through some
kind of organization to reach his goals. The problem of how to organize is as
ancient as man himself
Stating the importance of top management M.N. Basavaraj Rudra (1989/
expressed his views saying that it was Napoleon who had said that there were
no bad soldiers but only bad officers. Similarly, it all depends on the top
management to get the best out of their men. Great organizers have always had
great faith in their men and their abilities. As was rightly pointed out by Alferd
P. Sloan Jr. M. "No organization is sounder than its men. In other words, an
organization is as sound as its men."
Stating the principles of a formal organization Basavaraj Rudra (1989)^
opined that one of the principles of formal organization is that the organization
is structured around task, not men. The formal organization is based on rational
and logical analysis of activities, decisions and relations.
Urwick (1989)^ opined that the problems of organization should be
handled in the right order. Personal adjustments must be made, in so far as they
are necessary. But fewer of them will be necessary and they will present fewer
deviations from what is logical and simple. If the organizer first makes a plan, a
desire to which he would work, if he had the ideal human material, he should
expect to be driven from it here and there. But he will be driven from it far less
and his machine will work much more smoothly, if he starts with a plan. If he
starts with a motley collection of human oddities and tries to organize to fit
them all in, thinking first of their various shapes and sizes and colours, he may
have a patch work quilt; he will not have an organization.

15
 Davis Keith (1989y stated that the Hmited usefulness of the classical
concepts and also the need for improvement saying, "Classical organization
theory may be compared to a road map. It gives a static picture of an ongoing
situation. A map does not tell where the road repairs will be, whether a bridge
will be washed out." Likewise we cannot criticise an organization structure for
all the details of politics and informal power that it leaves out. Neither does a
road map tell a driver what destination to seek, what car to drive, which
restaurant serves the best food, or how fast to drive. Likewise, we cannot
criticize organization structure because it does not tell us how to manage.
"We would be foolish to condemn a road map because some driver was not
motivated to drive safely or drive more slowly than his capabilities allowed.
Yet, organization structures are condemned because a worker is not motivated
or does not grow as fast as his capabilities permit. This kind of faulty reasoning
and scapegoating blocks the understanding of how structures work."
"Organisation structure can support people as well as suppress them. It can
help as well as harm and condemnation of structure in general diverts attention
from this fact. Classical structure itself provides much task support such as
specialized assistance, aggregates of resources focused on a particular problem,
security, fairly dependable conditions of work, and so on."
"On the other hand, classical structure can be improved upon. Though
strong in task support, it is weak in psychological support. If we try to throw it
out in order to get psychological support, we will then be weak in task support.
What we need is structure which provides both task and psychological
support."
Expressing his views regarding hierarchy, "Argyris" (1989)^ stated that
organizations co-ordinate their various functions through some kind of
hierarchy of authority. Within defined areas a person must be willing to obey
the dictates of some other person or some written directives or rules and to curb
his own inclinations, even if they are contrary to the dictates. Authority is not
the same thing as pure power. Pure power implies that by manipulation of
rewards or the exercise of naked strength you can force someone else to do

16
something against his will. Authority, by contrast, implies the willingness on
the part of a 'subordinate' to obey because he consents, he grants to the person
in authority or to the law the right to dictate to him. For such consent to be
meaningful in a group or an organization, it must rest on a shared consensus
concerning the basis of the legitimacy of the authority.
Prasad and Rao (1989)^ in their study on "Systematic Approach Towards
Human Resource Management" concluded that it is a known fact that many of
the enterprises are suffering from labour unrest, indiscipline, over staffing, lack
of morality and apathy to work. All these are mainly due to the absence of a
clear and systematic policy on human resources. The public enterprises of the
country should prepare clear guide lines on human resource management
covering all important aspects like manpower planning, recruitment and
selection, compensation, training and development, motivation and evaluation.
If care is taken to design and implement a suitable policy incorporating the
above issues, the problems like indiscipline, lack of commitment and apathy to
work among employees would be solved automatically. A systematic
accounting and recording procedure followed by fixation of responsibility on
the staff would go a long way in curbing misappropriation and dishonesty
among employees.
P. Subha Rao (1989)"^ stated that a variety of terms have been used to
designate the subject industrial relations or human resource in an organization
e.g. labour-management relations, employee-employer relations etc. However,
the term 'industrial relations' appear to be comprehensive. The term industrial
relations, in its broader sense, include the relationship among employees, their
unions, management and government.
Stating the importance of human resource development P. Subha Rao
(1989)" said that the shift from manufacturing to service and the increasing
pace of technological change are making human resource the key ingredient to
the well being and growth of an industry. Heftirtherobserved that the objective
of maintenance of harmonious employer-employee relations is not only to find
out ways and means to solve conflicts or to settle differences but also to secure

17
the unreserved co-operation between the employee and the employer.
Congenial relations between the employer and the employee are highly
essential not only in the organized sector but also in unorganized sector as
human resource is quite a significant resource wheresoever it is.
On concept of human: assets, Abdul Aziz Tarmoom, (1989)'^ revealed that
the concept of human assets, as it is widely used in the accounting system of
business organization, coincides with the economic concept of human capital in
its limited sense, that is, of acquiring skills and knowledge. This is not, in fact,
accidental. A business organization will not be motivated to invest in people's
rearing and nurturing expenses, simply because such investments will not
directly affect its own activities. However, it will be willing to make an
investment in skills and knowledge of people that will ultimately have an
impact upon its own productivity.
He further expressed the view that those who claim that man is a capital by
virtue of his existence will argue that the costs of human capital will comprise
all expenses of bringing and rearing a child until he grows up into a man and
becomes a member of a labour force. The others will not go along with this
approach and will look upon costs of a human being as those limited to his
acquirement of skill and knowledge.

The author also expressed his views regarding the cost of training and the
cost of production approach to human capital formation in the following
manner:

The costs of training borne by firms are those related to specific training.
These costs are not recouped from the trainees but are fully charged to the
firms as investment in their human capital. The reason for this is quite obvious.
Benefits derived from specific training are fully reaped by firms providing it.
Hence, these firms will have the incentive to bear the costs of such training.
The costs of specific training also comprise of direct costs as well as costs of
output for gone during the period of training. These costs are recorded as
investment in the books of the firms providing it and are depreciated over the
useful life of investment.

18
 The 'cost of production approach' to human capital formation contains
many expenses that cannot be considered as augmenting the quahty of a man
and his productive capabilities. Expenses such as feeding, clothing and
sheltering which the 'cost of production approach' purports to include as
human investment have nothing to do with raising the skills and talent of the
people. These expenses are, in fact, essential for every human soul living on
this earth irrespective of his productive abilities.
Lallan Prasad and A.M. Bannerjee (1990)'^ observed that the formal
organization structure shows prescribed roles and relationship. The informal
groups which are the result of the interaction of people at work are never
shown in an organizational chart. The group consists of members knit together
by common interests, beliefs and faiths and objectives. Such a group may cut
across the formal structure and the line of communication. It may have its own
leader, customs and norms. Normally, the number of members is limited to
make face to face communication and interaction possible.
They further opined regarding informal organization that managers should
not ignore informal groups. At times they may take advantage of using these
groups for speedy communication of certain policies or plans, and for knowing
the reaction of the people. The group may be taken into confidence by
understanding their problems and meeting their genuine aspirations. Informal
groups with which supervisors have good relations may help them to overcome
difficult situations at the place of work. Informal grouping at managerial levels
are also not uncommon. Much of the organizational politics is directed through
such groups.
Expressing their views about human resources and productivity, Lallan
Prasad and A.M. Bannerjee (1990)''' stated that a productivity drive by itself
cannot load an organization to higher productivity. This urge has to be accepted
by all employees. Then only will human efforts aim towards excellence. Once
the employees accept the organizational goals, they will be self motivated to
achieve excellence. They would ensure that it does not remain a onetime
activity but becomes a continuous on-going process. Thus higher productivity

19
will be attained. It is also a collective effort and cannot be left in the hands of a
select few. They further stated that some managers believe that output is given
by machines, and it is the modernity of machines that governs productivity,
while others feel that it is the man behind these machines that governs
productivity. Other feel that productivity is primarily an attitude of the mind, a
welcome change for the better, a willingness to accept and explore scope for
improvement making an optimum use of the available resources and keeping
rejections to the minimum. It is the man who creates and drives the machines.
Man is intelligent and creative but slow whereas a machine is uncreative but
fast. Both must work in harmony and in unison to supplement the efforts of
each other in order to maximize productivity.
Expressing their views on the status of workers in an organization and the
public sector, Prasad and Bannerjee (1990)'^ opine, "A worker of today is not a
mere input of production like material or money or machinery. He is primarily
a human being endowed with intelligence and knowledge as also lapses and
shortcomings. He is a member of a free society with political leanings. As such,
he expects a realization of his economic, social, political and cultural rights for
the free development of his personality and dignity."
Further, they suggest that an industrial worker of today is different from
his predecessors. He is better educated, better trained and more refined in his
tastes and outlook. He is also conscious of the laws and institutional back-ups,
social, economical and political rights, security of job, union backing and
promotion aspirations. His economic demands have increased and he has
turned to unions and associations for the fulfillment of his needs.
On the other hand, they said, "Public sector undertakings are a fertile
ground for trade unions of all hues owing allegiance to various political parties
with each polifician trying to carve out for himself, and the feuding trade union
owning allegiance to him, a position of influence. Managements were often
caught in the cross fire of these trade unions. The over-tones of political
infighfing are imported into the functions of the union. Even simple issues are
politicized, defying straight forward solution." c30-3 <f ^ ^ _ _ -

fiPR^-171005
20
 Clarifying the concept of public sector, Rao and Rao (1991 )'^ stated that
while purely economic considerations are very important, public enterprises are
not just business concerns in the sense in which it is understood by private
enterprises. The vast expansion of public sector in India has not come just by
chance but it is the result of planned development, and behind this planned
development, there is a social and economic philosophy. In fact, the two major
instruments envisaged for establishing a socialist society in our country are, on
one hand, a very large increase in the facilities in social services, education and
equalization of opportunities and, on the other hand, a very large extension of
the public sector.

Regarding the concept of organizational structure, Rao and Rao (1991)

opined that the organizational structure is the process of systematic and logical
grouping of activities, delegating authority and responsibility and establishing
working relationships that will enable both the company and the employees to
realize their mutual objectives. Organizational structure can be designed to
minimise human friction by reducing the number of levels in the organizational
hierarchy, without reducing the total number of employees.

M.L. Bhasin (1992)'^ focused upon the problems and policies of managing
people in organizations. He presented eighty case studies in human resource
management drawn from Indian industries and businesses. The cases included
in the book cover all the areas of human resource management, such as, an
overview of HRM, role of personnel frinction, human resource planning,
promotion and transfer policies, retirement, resignation and termination of
employees, performance appraisal, training and development of human
resources, wage and salary administration and human behaviour at work.

Sivaprakasham (1993)'^ dealt with various aspects of personnel

management in co-operative sector. His research is a macro level empirical
study, which examines the critical issues relating to personnel management
functions in central co-operative banks. The major areas covered in this include
manpower planning, recruitment and selection, training, promotion, transfer.

21
welfare measures, work conditions, employees' unions, management relations
etc.
Nayak (1996)^ in his study on HRD Management observed that the
fundamental objectives of human resource organization is to ensure that every
aspect of the organization - employment, motivation and management of
people - is integrated with the strategic objectives of the business and
contribute to the successful achievement of those objectives. Human resource
organization, as considered in this part, provides the base and the framework
for all other aspects of HRM. The base is the enterprise itself- what it is there
to do and how it does it.
Nazir A. (1998)^' attempts, in the study to measure overall job satisfaction
of bank clerks, to identify some determinants of job satisfaction, and evaluate
the perceived importance of some jobs as well as the background factors on
their overall job satisfaction. Data were collected from a sample of a private
bank in Srinagar district of J & K state. The result of the study revealed that the
employees perceive various job factors as sources of satisfaction and
dissatisfaction, thereby mollifying the unidirectional factors as proposed by
Herzberg et al. Barring income and level of education no other personal factor
was found to be related to the overall job satisfaction of the model respondents.
Dr. Ram Rautrao and Dr. Jaywant Sawarkar's (1998)^^ study on HRD in
Cooperative Bank came out with the need for comprehensive manpower
development, a training institute with modem training facilities, effective
coordination between HRD and cooperative education, and training centres
enabling members to be partners in productivity effort.
Dr. A.K. Chaudhary and S.P. Sahu(1998)" have identified steps to convert
slow starters and non starters as self starters. The aim of the study is not only to
make the workers knowledgeable and full of skill but also to make them
"WISDOM WORKERS". They are of the view that management should create
an atmosphere, a healthy environment, where there is spontaneous willingness
to work. For this, it is important to find out what motivates people, in order to
make them committed towards work. They have laid stress on the policy of

22
promotion from within to an extent possible even after providing an
opportunity for educational development andfiirthertraining.

Annette J. Czech, (1998)^'' concluded that planning for organizational

growth and the need for qualified, competent employees that comes with that
growth is a problem which most personnel managers must face at one point in
their career. The problem usually occurs in newer organizations or in those that
have introduced new products or services which require the use of skills,
education or experience previously not needed.

Ramana and Jeelan Bhsh's (1999)^^ study attempts to know the most
important human resource management practices such as employee training
and development programmes, wage and salary administration practices,
employee welfare measures and also employer-employee relations prevailing in
the Bank. Studies indicated that the majority of selected personnel stated a
favorable opinion about training methods, materials, quality of faculty in
institutes where the employees underwent training. However, the physical
facilities at different training centres were hot upto the expectation of a few
people. In case of the opinion about method of salary fixation, majority of
respondents were under dilemma, and hence expressed that method of salary
fixation was neither too good nor too bad.

A Selvaraj, (1999)^^ has made a thorough study of existing Human

Resource Management Policies in banks in the selection process. His paper has
pointed out the fact that in the present scenario, conventional method of
selection procedure doesn't produce expected result. So it is suggested that all
the banks need to strengthen their capabilities for selection, evolving
appropriate and effective techniques for application in administration for
development.

Locke (1999)^' states that job satisfaction results when a job fulfils or
facilitates the organizational attainment of individual values and standards. On
the other hand, dissatisfaction occurs when the job is seen blocking such
attainment.

23
 Madan, Thomas Cangan & Rao, (1999)^^ have observed that after
successful completion of an assignment at the work place, the ambition of the
employee goes high. Most of the companies believe that the key to loyalty from
the employees is motivation. The aim of a learning organization is to mobilize
intelligence, wisdom and the collective experience of the entire work-force to
meet the organizational goals. It has been the experience that learning
organizations definitely have a competitive edge over their counterparts. The
adoption of the concept of learning, adaptability, flexibility and the loyalty of
the people is very essential for the survival of the organization. In a case study,
the company almost involved each person and equipped them with the latest
technical know-how, and it was found that whenever there were problems, the
employees themselves came up with a solution.

B.S. Bhatia (2000) , in his work on Human Resource Development, has

clarified that dynamic and growth oriented organizations do require HRD to
succeed in the fast changing environment. Organizations may flourish through
the efforts and competencies of their human resources. Personnel policies of
organizations do keep the morale and motivation of employees high but these
efforts are not enough to make the organization dynamic and to take it in a new
direction. He further emphasizes that employees' capabilities must
continuously be acquired, sharpened and used. When employees use their
initiafive, task risk, experiment, innovate and make things happen, the
organization may be said to have a good culture.
L.P. Singh (2000)^ has given a beaufillil definition of HRD. To quote him,
HRD refers to an improvement in the capacities and capabilities of the
personnel in relation to the needs of a particular sector. It involves the creation
of a climate in which flowers of human knowledge, skills and capabilities can
bloom. Human Resource Development seeks to provide a package of systems
through which these can be cultivated and enhanced among the people forming
a part of the network.

Kumar and Sharma (2000)^' in their study on 'Personnel Management-

Theory & Practice' observe that in industry, human relafions are in evidence in

24
two spheres: in that of administration, and that of welfare. In the field of
administration, it is the relations between the authority and the worker which
are important, A labourer is not a machine, nor a cog in a wheel. He is human
and has elements as motives, feelings, hopes, desires and aspirations. He wants
as much as any other person that his good work be praised, and that his efforts
should bring him additional gain.
A worker should be praised for any extraordinary effort that he may put in.
He should also be made to benefit in some manner or the other if he does
something unusually good. His salaries should be given a higher position.
Conditions of work should be improved and the workers of a high caliber be
transferred to good places. Such factors inspire the workers in their work
continuously, and also inculcate enthusiasm. Without these incentives, no
industry can achieve much good result.
Jyoti D. Nayak (2000)^^ has discussed in his paper entitled, "Human
Development Strategy in 21^' century", that there is a need for proper HRD
strategy in the organization to maintain competitive edge through operations
like recruitment and selection, grooming, succession, career planning, appraisal
systems, job design, performance management and much more. A human being
is an important organizational resource. "People" is the key to work. So treat
the man as he is, and he will remain as he is. Treat as he can and should be, and
he will become as he can and should be, and will best be utilized by investing
more on human capital.
Abdul Wahid Farooqui (2000)^^ discussed that in the present, fast changing
environment, urban cooperative banks are facing dual challenges of
competition from private and public sectors. In this paper it is discussed as to
how to face these challenges, cooperative banks have to develop a functional
model for HRD which should incorporate integrated approach to train, direct
and motivate the leaders, members and employees.
Dr. Pinakin R. Sheth (2000)^'' in his research paper "HRD through
OCTAPACE culture" said that change is the essence of life. In any process of
change, the temptation to examine the macro and micro level issues in the light

25
of the current situation always exists. In the 2l" century, an environment has
been created that almost compels Indian industries to re think their vision and
mission about HRD processes, practices and perspectives. OCT APACE implies
Openness, Collaboration, Trust, Authenticity, Proaction, Autonomy,
Confrontation and Experimentation. This research paper highlights this
OCTAPACE culture.
P.B. Singh and L.K. Singh (2000)-^^ in "Human Development: Accounting
for Human Capital" discussed that human capital and structural capital are an
indication of a company's future value and its ability to generate financial
results. Skandia, a Sweden based international financial services company, uses
a new systematized approach to make tangible hidden intellectual values not
recognized by generally accepted accounting principles. Two major benefits of
the disclosure regarding intangibles are the capital markets' improved
understanding of the company, and the possibility of reusing knowledge.
However, one major stumbling block in reporting for the intangible assets is the
authenticity of the existing valuation tools.
S. Husain Ashrof (2000)^^ "Human Development Perspecdves in 21^'
century Indian Scenario." In this research paper it is discussed that human
development is a subject of great importance. Human development is the
process of improving the quality and efficiency of the people. It helps people to
acquire competencies. Human development is concerned with different issues
of the society such as economic growth, trade, employment, political freedom
and cultural values. In this paper some peculiar and disturbing trends of human
development front in India are discussed.
P.K. Yadav and P.B. Singh(2000)^': "Value-added Human Development-
Reorienting and Reengineering HR." In this paper, they discussed that in the
face of competition and resource shrinkage all staff functions are under
pressure to demonstrate their value-addition and refocus their resources. In this
paper it tries to discuss that there are three unique ways in which HR can
contribute to business success-building organizational capabilifies, enhancing
employee satisfaction, and shaping customer satisfaction. Instead of being

26
activity oriented, new HR measures should be impact-oriented. For this, three
HR measures are considered: internal organizational measures, internal
strategic measures and external strategic measures. For full utilization of these
measures, accurate data on desirable HR measures should be collected as
ongoing and timely basis, analyzed with feedback to stimulate change and
improvement, and both HR and line managers be made accountable for it.
Riozual Hasan Siddiqui (2000)^^: "Measures for Making Training and
Development Programmes More Effective and Efficient in Human Resource
Development." In this paper, he discussed that the most valuable asset of an
organization consists of its human resources. Every aspect of a firm's activities
is determined by the competence, motivation and general effectiveness of its
human organization. Of all the tasks of management, managing etc. recruiting,
maintaining and developing the human component is the central and most
important task, because all else depends upon how well it is done. In this paper,
an attempt is made as to how to ensure the right kind of people at the right
place, at the right time through proper selection and training, to do the things
which result in, both the organization and individual, receiving the maximum
long range benefit.

Vijay. K. Gangal and Satpal Singh Saluja (2000)^^ "Training for

Cooperative Organization Challenges an Opportunity of New Millennium." In
this study an attempt has been made to know the expectations of cooperative
organizations and the remedies to make the training programme a success
meant for their employees. According to a survey, 95% training programmes
fail due to the failure of the trainers to know the expectations of participants,
and their sponsoring organizations. Employees should undertake a task to
upgrade skills, knowledge and effectiveness; and how to develop the
consciousness and change the attitude of cooperative organizations and their
employees will be the main challenge for training progranmie.
Indrajit PD Roy (2000)": "HRD perspective in 21'' century." The objective
of this research project is to identify approaches, systems, weaknesses, and
accordingly to suggest the remedy. First part of this article relates to the

27
conceptual approach to be adopted by different countries of the world in the
21" century. In the second stage supportive, contingency, productivity and
systems approaches, and their applications are discussed. The Third stage deals
with the ground reality which creates a base and will lead to perspectives of
HRD in the 21" century. Grounds are globalization of the market, technological
revolution, forms of organization and other new strategies that will be impetus
to HRD. Then it relates to the beliefs and assumptions under which unlimited
potentiality of competence and ability of human beings, and their personality,
skills and expertise can provide the best to the organization.

Husain Ashraf and Imran Siddiqui (2000/': "Challenging for HRD in

Changing Millennium." The present study is concerned with HRD at
organizational level. The emphasis is more on approaches which are result
oriented and employee oriented, rather than purely mechanical and employer
centered, integrating the HRD strategy with that of the organization and
developing the problem solving competencies of the employees.

Nafeesa Khan and Anju Singla (2000)''^: "Management of Human

Resources in Hotel Industry." The paper aims to assess the growth in
productivity of the Hotel Industry in India. It also prescribes a package of
recommendations meant for the Government and the industry to make HRD
more effective and viable. Further, the purpose of this was to study some of the
tools and techniques that are used in modem organizations in order to develop
and improve human resource effectiveness.

Dr. B.L. Vaishnaw (2000/^: "Human development index in economic

development of nation." The discussion of the paper is that to achieve a
targeted Human Development in India, its policies have to be adequately re-
oriented. It was already decided that the entire programme of family welfare
should be under plan expenditure. Human development should focus on
material care. Population control has to be planned and implemented. Finally, a
National Population Commission, that will be a political-cum-administrative-
cum-policy making body, is the immediate need.

28
 Gabris and Ihrke (2001/'' studied the relationship between employees'
perceptions of performance appraisal and experienced both employee burnout
and job satisfaction, and suggested that performance appraisal and merit-pay
systems can contribute to heightened burnout, but also that, with reasonable
management attention to procedural fairness, the worst effects can be
mitigated.
Dawra (2001)'*^ thinks that, of all the factors of production, man is by far
the most important. In fact, the success of every business enterprise depends
upon its human element. Materials and machines are inert factors, but man,
with his ability to feel, to think, to conceive, and to plan is the most valuable
and at the same time the most difficult to inspire, control and motivate. Further,
he describes that the prosperity of any business depends on the performance of
its manpower. The manpower asset in an organization has the potential to
appreciate the value of the organization. So the success of any organization
mainly depends upon the quality of its manpower and its performance. Thus,
any forward looking management would always be concerned with and strive
to evolve suitable policies for procuring, allocating, utilizing and developing
adequate talent for managing various positions in the organization.

David & Jennifer (2001)'*^ expressed their views, saying that thinking
about HRD has to precede any substantive action. There has to be an
understanding of what should and can be done before managers commit
resources, and introduce changes to people's responsibilities.. This critically
important diagnostic stage in the development of a new way of perceiving and
managing HRD needs to be as simple or complex as the situation demands.
How long it takes, who is involved, and the issues that have to be raised, must
reflect the particular needs and circumstances of each individual organization.
There is no prescriptive methodology appropriate to all organizations, no
ready-made solutions and no quick fixes.
Mukherjee, et al. (2002/^ concluded that the public sector banks cater to a
much larger number of customers across the country and are much more
widespread in their operations.

29
 Kandula (2003)"^ in an article portrayed the various facets of behavioural
training. The article emphasized that behavioural training is set to play a major
role in organizations, given the challenges of relationships. In the modem era,
the new methods of work, in particular, and changing social fabric of
organizational environment, in general, are adding up to the behavioural
complexity.
T.P. Maitin, (2003)''^ in his article 'Dynamic Human Resources' stated that,
of a wide variety of resources which participate in the process of organizational
growth, human resources are the most dynamic element of efficiency and
productivity. In the context of modem information age, manpower owns the
responsibility of information mobilization and their profitable utilization. This
means performance, mobilization and their profitable utilization. The
dynamism of human resources in the promotion of profitability is an
established truth. Productivity of participation in managerial responsibilities is
mainly governed by the quality and contents of people who man the
organization. It is a sincere sense of loyalty and trust in the operative system,
therefore, which largely govems efficiency, economy and effectiveness of
performance. The role of human resources as great intellectual assets in
management is highly valuable in accelerating the rate of economic progress.
Dessler (2003)^ discussed various aspects of human behaviour in his
views, "Intercountry Differences Affect a Company's Human Resource
Management Process." Cultural factors such as individualism versus
collectivism suggest difference in values, attitudes and therefore behaviour and
reactions of people from country to countiy. Economic and labour cost factors
help to determine whether Human Resource emphasis should be on efficiency,
commitment building, or some other approach. Industrial relations and
specifically the relationship between the worker, the union and the employer
influence the nature of a company's specific HR policies from country to
country."

Further he opines that strategic human resource management is "the linking

of HRM with strategic goals and objectives in order to improve business

30
performance and develop organization cultures that foster innovation and
flexibility."
A. Smith and W. Rupp (2004)^' described that one major purpose of
performance appraisal is to determine an individual's merit especially where
pay-for-performance systems are employed.
Goyal (2004) concluded in his study that human resources play an
important role in development and growth of any organization, and for that
matter of any economy. Among all the factors of production only human
resources are living beings and have unlimited capacity and potentials. Such
capacities and potentials of human beings can be developed for the benefit of
an organization by applying proper strategies. Human beings are not only an
active factor of production in itself, but also activate other inactive and inert
factors of production like money, materials, machines and methods. In this
present age of globalization, survival and growth of any organization depends
on the proper development of its human resources.
Sury (2004)^^ observed that, the public sector, as envisaged by Jawahar Lai
Nehru, was to contribute to the growth and development of the nation by
providing surplus reinvestible resources. This has not happened as it should
have. Many PSUs incurred substantial losses and have become a continuing
drain on the exchequer, absorbing resources which are withdrawn from sectors
where they are desperately needed to achieve other developmental goals. Apart
from the fact that the present fiscal situation does not permit any more
accumulation of unsustainable losses, there is also the fact that many loss
making PSUs do not serve the goal for which they were set up.
Green and Skinner (2005)^'' stated that in an increasingly competitive
business environment, organisations have sought to increase productivity and
reduce costs. The consequences of this, for many employees, include increased
workloads, longer work hours and greater time pressures which, in turn, results
in stress, high rates of absence and turnover.

Dr. C.Vethiranjan (2005)^^ in his article "Role of Commercial Banks in

Developing Economy" describes the various ways in which commercial banks

31
contribute to the development of an economy. He explains that through
mobilizing savings for capital formation, acting as financier for the industry,
for industrial agricultural and consumer activities and following monetary
policy of Central Bank, Commercial Banks help in substantial growth of an
economy.

Anderson (2006)^^ found that the management practices and the

employees' perception of those practices lead to positive or negative customer
outcomes. Specifically, relational efforts by a manager are suggested to lead to
a specific behaviour of the employees that seems to have a direct relation to
customer outcome.

Sreenivas (2006)^^ stated that the road map calls for an appreciation of the
potential value of the organizational human capital and readiness of the
organizational leadership to commit itself to continuous improvement in the
area of human competition as the essential imperative for survival and growth.
CO

Sharma and Jyoti (2006) , in an article on 'job satisfaction', concluded that

job satisfaction is an effective reaction to an individual's work situation, and
has been described as a positive emotional response resulting from appraisal of
one's job. It is the function of the degree to which one's needs can be satisfied
and operationalised as a discrepancy between 'how much is there now' and
'how much there should be'. One of the aspects that can lead to dissatisfaction
is one's attitude towards one's job. Job attitude can be defined as an overall
feeling about one's job or career or in terms of specific facet of the job or career
(e.g. compensation, autonomy, coworkers) and can be related to specific
outcomes, such as productivity. While some studies indicate that employees
generally want stable employment, higher promotion opportunities and
satisfactory salary, others show that social satisfaction, attitude of the superiors
and a flexible work schedule also affect the job satisfaction level of the
employees.
Thus, job satisfaction is a multidimensional concept, that breaks down into
several dimensions including intrinsic task satisfaction, attachment to people at

32
work, the behaviour of superiors, and satisfaction with security, income and
chances of promotion.
Maniraman and Sundar (2007)^^ stated that the job stress in business
organizations has lead to reduced efficiency and higher attrition rate among the
employees. They found out that job stress can lead to larger issues like health,
psychological and behavioural problems of the employees.
Dewakar Goel (2008)^ stressed on the view that manpower management is
the most crucial job because managing people is the heart and essence of being
a manager. Personnel management is concerned with any activity relating to
the human element or relations in the organizations.
Singh, et al. (2008)^' conducted a study to examine the impact of Human
resource policies and practices on organizational performance. For the study,
they used multi item instruments. For example, they suggested that if
employees are motivated through higher than industry - average wages,
performance linked wages and stock option schemes, and if human resource
policies are updated on a regular basis, there is a high likelihood that the
organization will be high on morale, adaptability, quality of product and
services, learning and growth and impact on industry. Their study reveals that
empowering people through extensive information sharing, job rotation, and
multi-tasking, and decentralizing decision making powers is more likely to help
improve the various dimensions of performance. Also good human resource
practices contribute to high performance, and thus organizations can take
initiative to introduce best human resource practices for er\hancing the
organizational performance.
Alexandros & Bouris (2008) , in the article titled "Employee Perceived
Training Effectiveness Relationship to Employee Attitudes", concluded that the
results of the study indicate that there is a significant correlation between the
employee perceived training effectiveness and their commitment, job
satisfaction and motivation.
L. B. Zane, (2008)^^, in his article titled "Why it is So Hard to Evaluate
Training in the Workplace", found that, essentially, training sometimes lacks

33
planning, sponsorship, budget, or because training is done for the wrong
reasons. Evaluation of training is also difficult because operating unit managers
are looking for increased performance and not necessarily the increased
learning on which trainers usually judge the success of their training.
Additionally, in almost all cases, the lack of performance is only partially due
to the need for training. Even when training is needed, a deficit of skills and
knowledge is often a small part, 15 percent to 20 percent perhaps, of the overall
lack of performance. Training's effectiveness in helping to increase
performance is reduced even further since training is often wasted because the
skills and knowledge gained in training are not applied to the job and thus have
no impact. Add to these things, the antiquated accounting methods used to
measure and evaluate training, and it becomes easy to understand why
evaluation of the impact of training within the organization is difficult.

D. Antonio & C. Sastre, (2009)^^ in the article titled "The Effects of

Training on Performance in Service Companies", indicated that the results
obtained in their study have shown that training has a positive, significant
coefficient. Consequently, they observed that training is a worthwhile
investment for the companies in the service industry.

Saiyadain (2009/^ emphasized that the main objective of performance

counselling is to help the employee to overcome his weaknesses and to
reinforce the strengths. In this sense, it is a developmental process where the
supervisor and the subordinate discuss the past performance with the view to
help the subordinate to improve and become more effective in future.

D.S. Mann (2009)'''' stated that staff development is extremely important, ft

is driven by three conditions: the rate of change in health care, the introduction
of new technology into the workplace, and the increased demand for
maximizing productivity.

Soumendra Narain Bagchi (2010)*'^ has discussed the scope and

significance of performance management and stated that an appropriate
performance appraisal system is essential for performance management and

34
explained how human resource management practices contribute towards the
performance of employees.

K. Aswathappa (2010)^* has discussed the role of HR Managers in a slack

period and has explained various problems faced by them in the corporate
world by examining and analyzing the actual situations. He further states that
HRM must become the most happening department in the organization. The
HR manager should play a proactive role. Be it maintaining employee morale,
cutting down on overheads, encouraging innovation, enhancing skills of
employees or saving jobs, the role of HR professional should become critical.

Rolf P. Lynton and Udai Pareek (2010)^^ have discussed the problems
which are faced by the organization regarding taking the right decisions as to
how and when training should be imparted. Determining the relevance of the
content of training is also very important.

Tony Edwards and Chris Rees (2011) have discussed the concept of
globalization in the present scenario: what does it imply and how it affects the
economies and, in turn, organizations and their management. According to
them, technological, psychological, political and economic universalism is
affecting the human resources and their management as these factors effect
transport and communication which have direct effect on mobility of human
resources. All these have effect on the management of human resources.

Gary Dessler and Biju Varkkey (2012)^' stated that HRM is acquiring
training appraising and compensating employees, and attending to their labour
relation , health and safety and fairness concerns. He should know about
employment law, industrial law equal opportunity and affirmative action,
employee health and safety, handling grievances and labour relations. He
stresses that to avoid certain mistakes such as hiring the wrong persons, high
turnover, people not doing their best, employees having feeling that they are
not getting proper salaries, human resourse managers' tasks are important and
should be handled by an expert.

35
 Gary Dessler and Biju Varkkakey (2012)^^ have stated that the idea that the
employees effort should be goal directed is central to performance management
and appraisal. Managers should appraise employees based on the specific
standards by which the employees are expected to be measured. And, the
employees' goals and performance standards should make sense in terms of the
company's strategic goals.
Christian Harteis (2012) stated that there is a consensus in educational,
managerial, and business debates that economic and societal changes in
globalisation demand knowledge-based enterprises and employees who
permanently develop and actualise their competences. Hence, workplace
learning has become a crucial aspect of a business organisation. However, the
mainstream perspective in literature focuses on the individual's demand and
responsibility for his or her own success in developing the necessary
competences. This contribution focuses on observing the current debates on
responsibility in work life and investigates individual and organisational
limitations of workplace learning. Taking into consideration two studies on
workplace learning, oppositional findings are to be discussed: on the basis of
aggregated quantitative data favourable conditions for workplace learning
appear. However, qualitative analyses on the level of individual respondents
show a somewhat different picture. Employees experience limited participation
in crucial aspects and experience limited rewards for individual competence
development. This article concludes that successful workplace learning is not
only an individual's responsibility but also a crucial task for the management of
a business and its workplaces.
 REFERENCES
1. Megginson, C. Leon, "Personnel and Human Resources Administration
Richard D. Irwin Inc., Home Wood, Illinois 60430 Irwin-Dorsey Ltd,
Georgetown, Ontario LTG-483,1977, p. 4.
2. Halloram, Jack, "Applied Human Relations and Organisational
Approach," Prentice Hall of India Pvt. Ltd., New Delhi, 1978, p. 11.
3. Rudra Basavaraj, M.N., "Human Factor in Management," Himalaya
Publishing House, Bombay, 1989, pp. 52 and 56.
4. Op. cit.,p. 190.
5. Op. cit., p. 56.
6. Urwick, L., Quoted by Rudra Basavaraj, M.N.
7. Keith Davis, Quoted by Rudra Basavaraj, M.N. p. 63.
8. Argyris, Quoted by Rudra Basavaraj, M.N. p. 62.
9. Prasad, G. and Rao, K.V., "Financial Management in Public Sector
Enterprises," Ashish Publishing House 8/81, Punjabi Bagh, New Delhi,
1989, p. 440.
10. Rao, P. Subha, "Human Resource Management - Environmental
Influence," Chugh Publications, Allahabad, 1989, p. 4.
11. Op. cit. p. 245.
12. Tarmoom, Abdul Aziz, "A Conceptual Structure for Human Resource",
Himalaya Publishing House, Bombay, 1989 pp. 19, 21 and 39.
13. Prasad, Lallan and Bannerjee, A.M., "Management of Human Resources,"
Sterling Publishers Pvt. Ltd., New Delhi, 1990, pp. 45-46.
14. Op. cit., pp. 172 and 176.
15. Op. cit. pp. 193 and 195,
16. Rao, M. Gangadhar and Others, "Human Resource Management in Public
Sector," Himalaya Publishing House, Bombay, 1991, p. 18.
17. Op. cit., p. 21.
18. Bhasin, M.L., "Human Resource Management-The Case Studies," Anmol
Publications, New Delhi, 1992.

37
19. Sivaprakasham, P., "Personnel Management in Central Cooperative Banks
in India", Kanishka Publications, New Delhi, 1993, pp. 74-75.
20. Nayak, A.K., "HRD Management: A Strategic Approach", Common
Wealth Publishers, New Delhi, 1996, p. 1.
21. Nazir, A. Nazir, "Perceived Importance of Job Factors and Overall job
satisfaction of Bank Employees," Indian Journal of Industrial, Vol.33,
April, 1998.
22. Dr. Rautrao Ram and Dr. Swarkar Jayant, " Rapporteurs Reports on HRD
Perspectives in 2P' Century," The Indian Journal of Commerce, Vol. 51,
No.4, Oct-Dec. 1998, P. 165.
23. Dr. Choudhary, A.K. and Sahu, S.P., "Human Resource Development in
Co-operative Banking," Indian Commerce Bulletin, Vol.3, No. 2, Sept.
1999, pp. 64-68.
24. Czech, Annette J., "Modernizing Your Personnel Management System",
Alexander Hamilton Institute, Inc. 70 Hill top Rd., Ramsey, NJO 7446
USA, 1998, p. 155.
25. Dr. Ramana, A.V. and Jeelan, Bhsha V., "Human Resource Management
Practices in Regional Rural Banks- A case study of Tungabhadra
Grameena Bank, Bellary, Kamataka State". Indian Commerce Bulletin,
Vol.3, No.2, Sept. 1999, pp.73-77.
26. Selvaraj, A, "Human Resource Development in Co-operative Banks: Need
for positive and practical approach in selection process", Indian
Commerce Bulletin, Vol.3, No.2, Sept. 1999, pp. 69-72.
27. Locke E , A Theory of Goal Setting and Task Performance, Prentice Hall
of India Pvt. Ltd., 1999, pp. 248-254.
28. Madan, B.R., Cangan Thomas, Rao G.P., "Human Resource
Development", Pointer Publishers, Indian Institute of Rural Management,
Jaipur, 1999, pp. 155-156.
29. Bhatia, B.S. and Batra, C.S., "Human Resource Development," Deep and
Deep Publications Pvt. Ltd, New Delhi, 2000, p. 243.

38
30. Singh L.P., "HRD Perspective for Agricultural Marketing Sector in
India," Indian Journal of Commerce," Vol. 52 No.l, Jan-March, 2000.
31. Kumar Arun & Rachna Sharma, "Personnel management-Theory &
Practice," Vol. II, Atlantic Publishers and Distributors, 2000, p. 557.
32. Nayak, Jyoti D.,"Human Development Strategy in 21^' century," The
Indian Journal of Commerce -Vol. 54 No.4, Oct.-Nov., 2000 p. 176.
33. Farooqui, Abdul Wahid,"Human Resource Management and Urban Co-
operative banks," The Indian Journal of Commerce -Vol. 54 No.4 Oct.-
Nov. 2000.
34. Dr. Sheth, Pinakin R., "HRD through OCTAPACE culture" The Indian
Journal of Commerce -Vol. 54 No.4 Oct.-Nov,2000.
35. Singh P.B. and Singh L.K., "Human Development: Accounting for
Human Capital," The Indian Journal of Commerce -Vol. 54 No.4, Oct.-
Nov.2000.
36. Ashrof, S.Husain, "Human Development Perspectives in 21^' Century
Indian Scenario" The Indian Journal of Commerce -Vol. 54 No.4, Oct.-
Nov.2000,p.l77.
37. Yadav,P.K. and Singh, P.B., "Value Added Human Development-
Reorienting and Reengineering HR" The Indian Journal of Commerce
Vol. 54 No.4, Oct.-Nov.2000 p. 178.
38. Siddiqui, Riozual Hasan, "Measures for Making Training and
Development Programmes more Effective and Efficient in Human
Resource Development" The Indian Journal of Commerce -Vol. 54 No.4,
Oct.-Nov.2000.
39. Gangal, Vijay. K. eind Saluja, Satpal Singh, "Training for Cooperative
Organization Challenges an Opportunity of New Millennium," The Indian
Journal of Commerce -Vol. 54 No.4, Oct.-Nov.2000 p. 179.
40. Roy, Indrajit PD, "HRD Perspective in 21" century," The Indian Journal
of Commerce -Vol. 54 No.4, Oct.-Nov.2000.

39
41. Ashraf, Husain and Siddiqui, Imran, "Challenging for HRD in Changing
Millennium," The Indian Journal of Commerce -Vol. 54 No.4, Oct.-
Nov.2000.

42. Khan, Nafeesa and Singla, Anju, "Management of Human Resources in

Hotel Industry" The Indian Journal of Commerce -Vol. 54 No.4, Oct.-
Nov.2000.

43. Dr. B.L. Vaishnaw, "Human development Index in Economic

Development of Nation" The Indian Journal of Commerce -Vol. 54 No.4,
Oct.-Nov.2000.

44. Gabris G and Ihrke D , "Does Perfomiance Appraisal Really Contribute

to Heightened Levels Of Employee Burnout?" Publ Personnel Mgmt 30,
2001, pp.157-172.

45. Dawra, Sudhir, "Human Resource Development and Personnel

Management", Radha Publications New Delhi, 2001, pp. 1 and 388.

46. Matthews, Jennifer Joy and Megginson David, "Human Resource

Development," Crest Publishing House, G-2, 16 Ansari Road, Darya
Ganj, New Delhi, 2001, p. 9.

47. Mukherjee A, Nath P and Manabendra N P , "Indian Banks", International

Journal of Bank Mktg" 20(3), 2002, pp. 122-139.

48. Kandula R S, " Sharpening Behavioural Training. HRD" 19(2): pp. 10-11.

49. Maitin, TP., "Dynamic Human Resources," The Indian Journal of

Commerce, Vol. 56, No. 283, April-September, 2003, p. 85.

50. Dessler Gary, "Human Resource Management," Prentice Hall of India

Pvt. Ltd., New Delhi, 2003, pp. 484-485.

51. Smith A and Rupp W, "Knowledge Workers' Perceptions of

Performance Ratings". Journal of Workplace Learning, 16, 2004, pp. 25-
27.

52. Goyal, K.C., "The Indian Journal of Commerce", Vol. 57, No. 3, July-
September 2004, p. 234.

40
53. Sury, M.M., "Indian Economy in the 21^' Century Prospects and
Challenges, Indian Tax foundation," New Century Publications, New
Delhi, India, 2004, p. 63
54. Green P and Skinner D, "Does Time Management Training Work? An
Evaluation." International Journal of Training and Development, 9(2),
2005, pp. 124-139.
55. Dr. Vethirahan, C. Article on "Role of Commercial Banks in Developing
Economy in Third Concept". International Journal of Ideas December,
2005.
56. Anderson J R, "Managing Employees in the Service Sector: A Literature
Review and Conceptual Development," Journal of Business Psychology,
20, 2006, pp. 501-513.
57. Sreenivas, T., " Banking Sector And Human Resources; Changing
Scenario", Discovery Publishing House, 2006, p. 280.
58. Sharma, R.D. & Jeevan Jyoti, "IIMB Management Review," Dec. 2006,
pp. 349-350.
59. Maniraman,S. and Sundar, H.G.,"Job Stress in the Business
Organisations: Causes, Consequences and Coping Strategies.", Journal of
Service Responsibility, 4, 2007, pp. 23-27.
60. Goel D., "Performance Appraisal and Compensation Management; A
Modem Approach," PHI Learning Pvt. Ltd., 2008, p. 4
61. Singh, S., Singh, K.N & Bhattacharya, A., "High Performance
Organizations: Relationship with Human Resource Policies and
Practices," The Indian journal of Industrial Relations, Vol. 43, No. 4,
April 2008, pp. 508-520.
62. Alexandros G. & Bouris, J. "Employee Perceived Training Effectiveness
Relationship to Employee Attitudes ", journal of European Industrial
Training, 32 (1), 2008, p.63-76.
63. Zane, L.B.(2008),"Why it is so Hard to Evaluate Training in the
Workplace" Journal of Industrial and Commercial Training, 40(7),
pp.390-395.

41
64. Antonio, D. & Sastre, C. (2009). "The Effects of Training on performance
in Service Companies" International Journal of Manpower, 30 (4), 394-
407.
65. Saiyadain, M. S.(2009), "Human Resource Management," Tata McGraw
Hill, 2009, p. 250.
66. Mann D.S.(2009), "Resource Management: An Alternative View of the
Management Process", Global India Publications Pvt. Ltd., 2009, p. 28.
67. Bagchi,Soumendra Narain, "Performance Management," Cenage
Learning India Pvt. Ltd.,2010 pp. 1-116.
68. Aswathappa, K., "Human Resource Management-Text and Cases," Tata
McGraw Hill Publishing Co. Ltd., New Delhi, 2010, p. 1.
69. Lynton, Rolf P. and Pareek, Udai, "Training for Development" Sage
publicatios India Pvt. Ltd., 2011, p. 3.
70. Edwards, Tony and Rees, Chris, "International Human Resource
Management," Pearson Education Ltd., 2011, pp.25-26
71. Dessler, Gary and Varkkey, Biju, "Human Resource Management,"
Pearson Education Ltd., 2012, pp. 1-2.
72. Op. cit., p.340.
73. Harteis, Christian, "When Work Place Training Fails: Individual and
Organizational Limitations - Exemplarily Demonstrated by the Issue of
Responsibility of Work Life", International Journal of Human Resource
development & management, vol. 12 No.1/2, 2012, pp 92-107.

42