‘THE PERSONAL CHARACTERISTICS OF A MANAGER

WHICH LEADS TO SELECTION’

PROJECT WORK SUBMITTED IN FINAL FULFILMENT OF THE

COURSE TITLED-

FUNDAMENTALS OF MANAGEMENT

SUBMITTED TO:
Dr. Manoj Kumar Mishra
ASSISTANT PROFESSOR

SUBMITTED BY:
NAME: PULAK
COURSE: B.B.A. LLB (Hons.)
ROLL NO: 2031
SEMESTER: 1ST

CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA

NAGAR, MITHAPUR, PATNA- 800001
 DECLARATION
I hereby declare that the project entitled “The Personal Characteristics of a Manager
Which Leads to Selection” submitted by me at Chanakya National Law University is a
record of bona fide project work carried out by me under the guidance of Prof. Manoj Kumar
Mishra. I further declare that the work reported in this project has not been submitted and will
not be submitted, either in part or in full, for the award of any other degree or diploma in this
university or any other university.

(Pulak)
Roll No: 2031

2
 ACKNOWLEDGEMENT
This research work is a culmination of efforts of lots of people who gave their intense support
and helped me in the completion of this project.
First, I am very grateful to my teacher Prof. Manoj Kumar Mishra, whose guidance and
advice helped me in completing my project. He explained the topic clearly and helped me
proceed in my project work.
I am highly indebted to my parents and friends for their co-operation and encouragement
which helped me in completion of this project. I am also thankful to the library staff of my
university who assisted me in acquiring the necessary sources for the completion of my
project.
Lastly, I would like to thank my grandparents for their constant support and faith in me,
which motivated me to concentrate on my project and to complete it in time.
I thank all of them!

Pulak

3
Table of Contents
AIMS AND OBJECTIVES ....................................................................................................... 5
INTRODUCTION ..................................................................................................................... 6
1.1 Who is a manager?......................................................................................................... 7
1.2 Characteristics of a good manager ............................................................................... 8
STATE BANK OF INDIA ...................................................................................................... 10
Establishment ....................................................................................................................... 10
Business ............................................................................................................................... 11
Presidency Banks Act .......................................................................................................... 12
Imperial Bank....................................................................................................................... 13
CONSUMERS ......................................................................................................................... 14
COMPETITORS ...................................................................................................................... 16
ENVIRONMENT .................................................................................................................... 19
TECHNOLOGY ...................................................................................................................... 20
RESEARCH METHODOLOGY............................................................................................. 23
FINDING AND ANALYSIS ................................................................................................... 24
Findings................................................................................................................................ 25
Analysis................................................................................................................................ 26
SUGGESTIONS AND CONCLUSION .................................................................................. 28
BIBLIOGRAPHY .................................................................................................................... 29

4
 AIMS AND OBJECTIVES
• To understand the process of selection
• To analyse the qualities of a manager which lead to his/her selection
• To study an organisation and its selection pattern and process it follows

HYPOTHESIS
The selection process and criteria for selecting managers is different and so are the qualities
required, for different types of organisations, because of different type of work culture in
different organisations.

5
 INTRODUCTION
Selection is the step of choosing qualified and competent candidates suitable for the job from
an available pool of candidates. It can also be put as a process of differentiating between
applicants in order to identify and hire those with a greater likelihood of success in a job.
Selection is a long process, commencing from the preliminary interview of the applicants and
ending with the contract of employment. In practise, the process differs among different
organisations and between two different jobs within the same company. Selection process for
senior managers will be long-drawn and rigorous, but it is simple and short while hiring shop-
floor workers.

Selection is influenced by several factors. More prominent among them are the supply and
demand of specific skills in the market, unemployment rate, labour-market conditions, legal
and political considerations, company’s image, company’s policy, HRP and cost of hiring.
HRP, company’s policy and cost of hiring constitute the internal environment and the
remaining form the external environment of the selection process.

Recruitment and selection are two crucial steps in the management process and are often used
interchangeably. But, there is a fine difference between the two steps. Recruitment is positive
in its approach as it seeks to attract as many candidates as possible. On the other hand,
selection is negative in application as it seeks to eliminate as many unqualified applicants as
possible to identify the right candidates.

The role of selection in an organisation’s effectiveness is crucial for broadly four reasons.
First, work performance depends on managers. The best way to improve performance is to
hire managers who have the competence and the willingness to work. Second, it lends
competitive advantage to the organisation. Skilled employees and managers ensure that such
an advantage stays longer with the firm. The ripple effect of a successful organisation spread
far and wide. Third, cost incurred in recruitment of personnel speaks volumes about the role
of selection. Pepsi had gone on a crash recruitment drive. The cost of searching and training a
top-level manager, in the US, may run into $ 250,000. And fourth, costs of wrong selection
are much greater.1

1
K Aswathappa, Human Resource Management: Text and Cases (McGraw Hill Education Pvt. Ltd., 8th edition,
2017)

6
1.1 Who is a manager?
“The productivity of work is not the responsibility of the worker but of the manager”

– Peter Drucker

A manager is an executive who has overall responsibility for managing both

the revenue and cost elements of a company's income statement, known as profit & loss
(P&L) responsibility. A manager usually oversees most of the
firm's marketing and sales functions as well as the day-to-day operations of the business.
Frequently, the manager is responsible for effective planning, delegating, coordinating,
staffing, organizing, and decision making to attain desirable profit making results for an
organization.2

Larger organizations generally have three levels of managers, which are typically
organized in a hierarchical, pyramid structure:

• Senior managers, such as members of a Board of Directors and a Chief Executive

Officer (CEO) or a President of an organization. They set the strategic goals of the
organization and make decisions on how the overall organization will operate. Senior
managers are generally executive-level professionals and provide direction to middle
management who directly or indirectly report to them.
• Middle managers, examples of which would include branch managers, regional
managers, department managers and section managers, provide direction to front-line
managers. Middle managers communicate the strategic goals of senior management to
the front-line managers.
• Lower managers, such as supervisors and front-line team leaders, oversee the work of
regular employees (or volunteers, in some voluntary organizations) and provide direction
on their work.

In smaller organizations, an individual manager may have a much wider scope. A single
manager may perform several roles or even all of the roles commonly observed in a large
organization.

2
Leonard Sayles, Leadership. McGraw-Hill, 1979

7
In profitable organizations, a manager's primary function is the satisfaction of a range
of stakeholders. This typically involves making a profit (for the shareholders), creating
valued products at a reasonable cost (for customers), and providing great employment
opportunities for employees. In non-profit management, add the importance of keeping the
faith of donors. In most models of management and governance, shareholders vote for
the board of directors, and the board then hires senior managers.

Some organizations have experimented with other methods (such as employee-voting

models) of selecting or reviewing managers, but this is rare.

Selecting management-level employees can often be a daunting task. Of course, the major
challenge is to select the individual who'll best fit into both the position and the business's
culture. Before considering any candidates, however, the first decision is to determine
whether there should be internal promotion or candidates should be hired externally.

1.2 Characteristics of a good manager

Some characteristics that define a good manager and are required to be kept in mind, while
selecting a manager are:

Good managers should be able to lead the employees they manage. Leadership traits include
emotional stability, enthusiasm, and self-assurance. Managers display self-assurance by not
being overly affected by mistakes or failures of any kind.

Good managers always plan their every step. They know what needs to be done and when it
needs to be done. They know and understand the goals of your business and what the
employees they supervise need to do to achieve that goal. In most of the leading MNCs, all of
the managers set quarterly goals for their subordinates and this is the best way to plan every
step.

Good managers are able to identify and solve problems. Whether it’s a personnel issue, an
upset customer or a difficult vendor, good managers can think of creative solutions to
problems, then execute the solutions. Good managers also take responsibility for problems
that arise rather than seeing them as someone else’s responsibility and take an ethical
approach to problem-solving.

They focus on an individual’s strengths and manage around his weaknesses. They find out
what motivates each staff member and try to provide more of it in his work environment.

8
As an example, if a challenge is what your staff person craves, make sure he always has one
tough, challenging assignment. If your staff member prefers routine, send more repetitive
work in his direction.

A manager’s job is not to help every individual he employs grow. His job is improving
performance. To do this, he has to identify whether each employee is in the right role and can
do what is required of them.

And finally, being result-oriented is one of the crucial characteristics of a good manager and
it ensures that they are constantly motivated to reach their objectives. Having a competitive
nature and taking pride in their achievements drives the good manager towards obtaining
their goals.
On the other hand, managers that are highly oriented toward results tend to be more
individualistic than team players. Therefore, they tend to show superiority, and often prefer to
rely on themselves than on others.3

3
Characteristics of a Good Manager, Nascenia, 2017

9
 STATE BANK OF INDIA
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1
July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernise India's
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.

Establishment
The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock
banking in India. So was the associated innovation in banking, viz. the decision to allow the
Bank of Bengal to issue notes, which would be accepted for payment of public revenues
within a restricted geographical area. This right of note issue was very valuable not only for
the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an
accretion to the capital of the banks, a capital on which the proprietors did not have to pay
any interest. The concept of deposit banking was also an innovation because the practice of
accepting money for safekeeping (and in some cases, even investment on behalf of the
clients) by the indigenous bankers had not spread as a general habit in most parts of India.
But, for a long time, and especially up to the time that the three presidency banks had a right
of note issue, bank notes and government balances made up the bulk of the investible
resources of the banks.

10
The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed, and the rest
owned by the provincial government. The members of the board of directors, which managed
the affairs of each bank, were mostly proprietary directors representing the large European
managing agency houses in India. The rest were government nominees, invariably civil
servants, one of whom was elected as the president of the board.

Business
The business of the banks was initially confined to discounting of bills of exchange or other
negotiable private securities, keeping cash accounts and receiving deposits and issuing and
circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation
confined to three months only. The security for such loans was public securities, commonly
called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature'
and no interest could be charged beyond a rate of twelve per cent. Loans against goods like
opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also
granted but such finance by way of cash credits gained momentum only from the third decade
of the nineteenth century. All commodities, including tea, sugar and jute, which began to be
financed later, were either pledged or hypothecated to the bank. Demand promissory notes
were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank.
Lending against shares of the banks or on the mortgage of houses, land or other real property
was, however, forbidden.
Indians were the principal borrowers against deposit of Company's paper, while the business
of discounts on private as well as salary bills was almost the exclusive monopoly of individuals
Europeans and their partnership firms. But the main function of the three banks, as far as the
government was concerned, was to help the latter raise loans from time to time and also provide
a degree of stability to the prices of government securities.
A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras
occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note
issue of the presidency banks was abolished, and the Government of India assumed from
1st March 1862, the sole power of issuing paper currency within British India. The task of
management and circulation of the new currency notes was conferred on the presidency
banks and the Government undertook to transfer the Treasury balances to the banks at places
where the banks would open branches.

11
By 1876, the branches, agencies and sub agencies of the three presidency banks covered most
of the major parts and many of the inland trade centres in India. While the Bank of Bengal
had eighteen branches including its head office, seasonal branches and sub agencies, the
Banks of Bombay and Madras had fifteen each.

Presidency Banks Act

The presidency Banks Act, which came into operation on 1 May 1876, brought the three
presidency banks under a common statute with similar restrictions on business. The proprietary
connection of the Government was, however, terminated, though the banks continued to hold
charge of the public debt offices in the three presidency towns, and the custody of a part of the
government balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta,
Bombay and Madras into which sums above the specified minimum balances promised to the
presidency banks at only their head offices were to be lodged. The Government could lend to
the presidency banks from such Reserve Treasuries, but the latter could look upon them more
as a favour than as a right.
The Presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in
1921 to form the Imperial Bank of India. The triad had been transformed into a monolith and
a giant among Indian commercial banks had emerged. The new bank took on the triple role of
a commercial bank, a banker's bank and a banker to the government.
But this creation was preceded by years of deliberations on the need for a 'State Bank of
India'. What eventually emerged was a 'half-way house' combining the functions of a
commercial bank and a quasi-central bank.
The establishment of the Reserve Bank of India as the central bank of the country in 1935
ended the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to
the Government of India and instead became agent of the Reserve Bank for the transaction of
government business at centres at which the central bank was not established. But it
continued to maintain currency chests and small coin depots and operate the remittance
facilities scheme for other banks and the public on terms stipulated by the Reserve Bank. It
also acted as a bankers' bank by holding their surplus cash and granting them advances
against authorised securities. The management of the bank clearing houses also continued
with it at many places where the Reserve Bank did not have offices. The bank was also the
biggest tenderer at the Treasury bill auctions conducted by the Reserve Bank on behalf of the
Government.

12
Imperial Bank
The Imperial Bank during the three and a half decades of its existence recorded an impressive
growth in terms of offices, reserves, deposits, investments and advances, the increases in some
cases amounting to more than six-fold. When India attained freedom, the Imperial Bank had a
capital base (including reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores
and Rs.72.94 crores respectively and a network of 172 branches and more than 200 sub offices
extending all over the country.

First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of rural India was
given the highest priority. The commercial banks of the country including the Imperial Bank
of India had till then confined their operations to the urban sector and were not equipped to
respond to the emergent needs of economic regeneration of the rural areas. In order,
therefore, to serve the economy in general and the rural sector in particular, the All India
Rural Credit Survey Committee recommended the creation of a state-partnered and state-
sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former
state-owned or state-associate banks. An act was accordingly passed in Parliament in May
1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the
resources of the Indian banking system thus passed under the direct control of the State.
Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State
Bank of India to take over eight former State-associated banks as its subsidiaries (later named
Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank.
SBI’s current chairman is Mr. Rajnish Kumar.

13
 CONSUMERS
SBI is India’s largest commercial Bank in terms of assets, deposits, branches, number of
customers and employees, enjoying the continuing faith of millions of customers across the
social spectrum. SBI headquartered at Mumbai, provides a wide range of products and
services to individual customers, commercial enterprises, large corporates, public bodies and
institutional customers through its various branches and outlets, joint ventures and
subsidiaries. It has 42.42 crore customers, 22,414 total branches, Rs. 23,982 crores in
Financial Inclusion Deposits and 30.40% market share in Debit Card Spends.4

A Fortune 500 company, SBI has entered into the league of top 50 global banks with a
balance sheet size of over Rs 30 lakh crore, over 24,000 branches and 59,000+ ATMs serving
over 42 crore customers after the merger of its five Associate Banks and Bhartiya Mahila
Bank on 1st April 2017. SBI has an overseas presence through 195 foreign offices spread
across 36 Countries.

SBI has the largest Home Loan portfolio in the country, with a market share of 32.13% as on
31st March 2018, amongst All Scheduled Commercial Banks (ASCBs). Home Loan portfolio
constituted 18% of the Whole Bank Advances as on 31st March 2018. Total Home Loan and
Home Loan Related portfolio as on 31st March 2018 stood at Rs.3,41,081 crores.

The bank is helping upgrade the living standards of its customers by providing auto loans and
making owning a car affordable. These auto loan products of SBI are available in many
variants to suit the requirements of various customer segments - salaried, businessmen, self-
employed, professionals, senior citizens, NRIs, agriculturists and existing borrowers, among
others. Multi-channel sourcing of proposals and faster turn around time has made the auto
loan products highly popular. This has helped the bank in increasing its penetration in
financing cars sold by various manufacturers such as Maruti, Hyundai, TATA Motors, to
name a few. The market share of SBI in Car Loans has also gone up from 33.77% as on 31st
March 2017 to 34.97% as on 31st March 2018.

SBI is the largest Education Loan provider in the country. It has helped 56,042 meritorious
students during the financial year to realise their dreams by providing financial assistance to
the tune of Rs.4,949 crores (out of which 35% of the loans have been extended to girl
students).

4
State Bank of India-Annual Report, 2017-18

14
It provides education loans to students of 147 top-rated, premier and reputed institutions
identified by the bank at relaxed norms and concessional interest rates.

The bank has been catering to the needs of salaried class (both government and private),
pensioners and other customers. During FY2018, the bank provided personal loans to 14 lakh
customers amounting to Rs.50,971 crores. SBI’s delinquency under this segment is one of the
lowest in the industry.

As on 31st March 2018 State Bank of India has a 33.34 lakh strong NRI customer base, who
are being catered to by 150 NRI intensive branches and 95 dedicated branches across India.
With an aim of providing all the NRI related service at a single point, it has set up a
centralised back office. This major process innovation undertaken in NRI services will handle
the entire gamut of non-financial services including customer support and query
management. SBI has also introduced a mobile app-based remittance facility to the Indian
diaspora residing in USA to remit the funds to India, with a cap of US$ 10,000.

A dedicated Sales Architecture has been created to facilitate opening of salary accounts of
Corporate Employee, Armed forces and other Central/ State Government Employees. The
total salary account customer base has reached 124.07 lakh accounts registering a growth of
38% over FY2017. Under CSP, the bank offers Complimentary Accident (Death) Insurance
cover up to Rs.20 lakh. During the year, it settled 763 insurance claims amounting to
Rs.37.77 crore.

SBI also launched Wealth Management Services for Non-Resident Indians. Customers
residing in U.A.E., Bahrain, Qatar, Kuwait and Sultanate of Oman are eligible to onboard as
wealth customers. They can access services through e-Wealth Centres or through Wealth Hub
during their visit to India.

15
 COMPETITORS

These are the six main State Bank of India (SBI) competitors:

1. ICICI Bank

2. Punjab National Bank

3. Allahabad bank

4. HDFC

5. Axis Bank

6. Bank of Baroda

In the area of life insurance, the main competitors of SBI Life Insurance are:

1. ICICI Prudential Life Insurance

2. HDFC Life

3. Life Insurance Corporation

4. TATA AIA Life

5. Bajaj Allianz

6. Birla Sun Life

7. PNB MetLife

Some of the threats to the growth of the bank are:

1. Consolidation among private banks can reduce market share for SBI
2. New bank licenses by RBI can affect operations
3. Foreign banks that have sophisticated products
4. SBI operations are often disrupted by slow government decisions and red tapism
5. The changing interest rates and changing policies of RBI
6. Slowdown in domestic economy might raise a concern over credit off-take thereby
impacting earning growth
7. FDI allowed in banking sector has now increased, this can be a major threat to SBI as
people tend to switch to foreign banks for better facilities and technologies in banking

16
 8. Private banks have started entering and penetrating into the rural and semi-urban
sector, which used to be the main area of state bank
9. Bad Loans and Non-performing assets: India has a history of bad loans amounting
to a total of Rs 10 lakh crores. Non-performing assets in India are estimated at 10.2%
by March 2018, from 9.6% in March 2017 in comparison to the statistics last year
September 2016, gross NPAs were at 9.2%.
10. Cyber threats: There has been a lot of issues lately on information theft and security.
These cyber threats from a headache for the banks which can affect the image of the
bank if not managed well.

Michael Porter’s Five Forces Theory:

1. Threat of competitors

Top Performing Public Sector Bank

a) Andhra Bank
b) Allahabad Bank
c) Punjab National Bank
d) Dena Bank
e) Vijaya Bank

Top Performing Foreign Bank

a) Citibank
b) Standard Chartered
c) HSBC Bank
d) ABN AMRO Bank
e) American Express

17
2. Threat of new entrants: there have been many new entrants in banking sector like
Yes Bank.
3. Threat to substitutes: investors as a substitute can always invest into the capital
marketing instead of depositing in their capital in the bank.
4. Buying power of suppliers: changing policies in guidelines of RBI, interest rates,
CRR and SLR maintained by the banks as per norms.
5. Buying power of customers: changing scenarios, increased and decreased disposable
incomes, other attractive options available to customers.

18
 ENVIRONMENT
The external environment has become uncertain, despite a positive outlook on growth. Trade
wars, which are a sign of renegotiation of the old order, have become more acute. The
situation will continue in the same direction in 2018. Thus, across the world, banks have
revisited their foreign business strategy in line with growing risks. Such cautions prevail
among Indian banks as well. The Government of India has advised banks to rationalise their
foreign branches. However, this does not constitute a blanket withdrawal but a more realistic
strategy in line with changing trade patterns of the country. This rationalisation in foreign
business will therefore continue.

The coming year will be the last year after which general elections are due. However, SBI
does not expect that policy direction will markedly turn populist. The fiscal and monetary
conditions will continue to remain stable even if there are momentary aberrations. But the
challenge will lie in taking a decision amid growing uncertainty. Overall the NPA resolution
is in sight and the time is opportune for tough and strategic decision making.

Asset quality, resolution of stressed assets and muted credit growth in H1 continued as major
challenges for most banks during the current year. Higher NPAs impacted interest income
adversely and led to elevated provisions, thus putting pressure on the profitability of banks.
Further, some Public Sector Banks (PSBs) have been put under the Prompt Corrective Action
(PCA) framework of RBI, which puts restrictions on key areas viz. dividend payment, branch
expansion, etc.

Under the Pradhan Mantri Jan Dhan Yojna (PMJDY), banks have opened 31.4 crore accounts
with Rs.79,012 crore deposits (around 6% of the total demand deposits of the ASCBs) till 4th
April 2018 deposited in their accounts. Out of the 31.4 crore accounts, PSBs have opened
25.4 crore accounts, RRBs have opened 5.1 crore accounts, whereas private sector banks
(PrSBs) have opened only 0.9 crore accounts. This indicates that PSBs have accepted the
responsibility and have fulfilled their promises in a record time. On a positive note, zero
balance accounts under PMJDY have been continuously declining from 76.8% in September
2014 to around 20% now. PMJDY has also helped the implementation of the Mudra Yojana
with Rs.5.28 lakh crore distributed to 11.96 crore beneficiaries in the last 3-years.

19
 TECHNOLOGY
With the new changes in technology, banking has seen major changes in operations and now
has focused on customer centric approach, mobile banking, internet banking, ERP, etc. and
has improved efficiency and productivity. Banks are now focused on cashless, paperless and
hassle-free working. As per KPMG, non-cash payment comprises of 91% in value terms
compared to 88% in 2013. Also, the payments made through cheques has gone down.
Establishment of high speed internet connectivity, Real Time Gross Settlement (RTGS),
National Electronic Funds Transfer (NEFT), MICR cheques, OTP, etc. are all significant
milestones in the present. The continuous advancement in technology has changed the way
the banks interact with consumers. Now, virtual banking concept has been rolled out in
market wherein the products or services are available only on electronic mode and these are
competitively and attractively priced so as to invite consumers to non-branch banking world,
thereby reducing costs. With digitalisation of transactions, wireless transfer of funds,
paperless culture, the bank has an opportunity of improving the overall productivity, reduce
cost and provide better customer service.

Technology advancements are continuously being implemented both towards back-end

processes, as well as robust and efficient customer service delivery channels. At the same
time, its commitment to highest standards of risk management, ethics and governance
safeguard our stakeholder’s interests at all times. Through this upgraded framework, the bank
has laid a strong foundation for sustained long-term growth, and are gradually moving
towards a more transparent, cost competitive, and innovation driven organisation.

India is undergoing a digital transformation and witnessing an accelerated pace of innovation

and technology adoption. As the digital economy is flourishing, the bank is also progressing
with its technological advancements and growing its presence in multi-channel platforms,
keeping itself ahead of the curve. Consequent to its digital initiatives, SBI has improved the
share of digital transactions as a percentage of total transactions by over 600 bps during the
year. During FY2018, the bank launched an integrated omni-channel digital platform YONO
as an integral part of our digital drive.

20
YONO (You Only Need One) is one of the most ambitious, path-breaking, secure digital
offering of State Bank of India which was launched on 24th November 2017. This is India’s
first fully digital service platform designed to facilitate banking as well as lifestyle needs of
our customers through an all-encompassing B2C marketplace. Apart from banking services,
the application is designed to offer other financial products including investments, insurance
and credit cards.

SBI is also committed towards transforming themselves into a digitalised organisation,

supported by technology enabled backend operations. Along with the digitalisation of
consumer facing operations, they continue to invest in the automation of the internal
processes to improve efficiency, reduce cost of operations and re-deploy employees in
revenue accretive roles. With an all-pervasive digital transformation taking hold, SBI is
highly motivated to integrate and absorb multiple technologies into its operational culture.
The potential and the productivity of new age technologies like block chain, machine
learning, artificial intelligence and IoT with data and analytics as their foundation have been
recognised by the bank. Centres of excellence, proofs of concept and a collaborative and
definitive time bound plan with fintech companies and vendors has been put in place to
harness and harvest the benefits of these technologies for greater customer engagement,
enhancing productivity of the bank and empowering the bank’s employees.

SBI is continuously training its employees to keep them updated on the technology front, and
this enables them to deliver new-age banking for an aspiring and transforming India.

Digitalisation and excellence in operations has been core to SBI’s strategy in providing
convenience to customers. It has resulted in a reduction in turnaround time and extended
benefits to its customers.

Internet Banking solutions cater to the various payments, fund-transfers, e-Tendering, e-

Auction and bulk payments related requirements of the Government/ PSUs/ Large and
Medium Corporates as well as for Retail Internet Banking (RINB) customers. This channel
has enabled more than 159 crore transactions during FY2018.

Internet Banking Users (No. in lakh)

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

130 177 220 263 327 479

21
Samsung Pay participation for Token Service - Tap and Go Payment was introduced. It is
secured as Tokenised PAN is stored on mobile. INTOUCH Instant Card Issuance Services
have been introduced for SBI Nepal and Mauritius Customers. Many branches facilitated
with Debit Card Management System (DCMS) support functions for addressing customer
concerns with respect to debit cards.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) SOLUTION AND PROJECT

IMPACT

The entire project consists of seven releases for CRM (covering Sales, Service and
marketing modules), development of IMPACT platform, CRM for FOs and implementation
of other solutions (MDM, DLP, SAS Analytics, CRM e-Learning Solution etc.) The key
activities completed during the year are as follows:

• Lead modules for retail (PBU, REHBU, SME, Agri, MCS, NRI) and corporate
business segments (CAG & MCG) rolled out
• e-CRM Learning tool deployed and integrated with Gyanodaya
• Customer 360 for Retail, CAG and MCG rolled out
• Informatica Master Data Management (MDM) went live with Customer 360; MDM
will hold master data of Customer, Geography, Product and Service
• Non-Financial Service (NFS) request module enabled in CRM; 24 different types of
service requests can be lodged and tracked through CRM
• Deceased claim settlement request can also be lodged and tracked through CRM
• Data Loss Prevention (DLP) agents deployed in Domestic and Foreign Offices
• Work in progress towards CRM roll out for contact centre and complaint management
as part of Service Module

22
 RESEARCH METHODOLOGY
Research is a process of steps used to collect and analyse information to increase our
understanding of a topic or issue. The researcher followed both doctrinal type of sources. The
researcher studied the primary and secondary sources of data along with studying surveys not
only gain the theoretical aspect but also the practical approach of organisations. The
researcher examined the secondary sources, which included books, websites, articles, e-
articles, reports, essential for this study. The information was from both present times and
historical.

Going through the literature acquainted the researcher with the methodologies that have been
used by others to find answers to research questions similar to the one been investigated. A
literature review tells you if others have used procedures and methods similar to the ones that
you are proposing, which procedures and methods have worked well for them and what
problems they have faced with them. By becoming aware of any problems and pitfalls, you
will be better positioned to select a methodology that is capable of providing valid answers to
your research question.

23
 FINDING AND ANALYSIS
State Bank of India is focused on developing processes to attract the best talent within the
country. It has revamped the recruitment process and developed a stronger employee value
proposition to attract the right talent. During FY2018, 2,220 young tech savvy and customer
friendly probationary officers, and 600 Specialist Officers were selected through lateral and
contractual recruitment process.

A branch manager has to achieve marketing goals of the branch, create good relations with
the employees, supervise the working of all the departments and manage customer and public
dealings as well.

A good manager must possess the following skills:

• Marketing skills
• Communication skills
• Observation skills
• Leadership skills
• Critical thinking
• Problem solving skills
• Customer dealing

Great managers have the following talents:

• They motivate every single employee to take action and engage them with a
compelling mission and vision.
• They have the assertiveness to drive outcomes and the ability to overcome adversity
and resistance.
• They create a culture of clear accountability.
• They build relationships that create trust, open dialogue, and full transparency.
• They make decisions that are based on productivity, not politics.

24
Findings
The key traits managers at SBI possess, and the bank actively looks for individuals who
possess these qualities, are:
SBI prefers managers who have the willingness to learn. At SBI, managers are constantly
faced with new challenges and unfamiliar environments. The ability and eagerness to learn
quickly and grow is a crucial trait which the bank values in all of its employees.
Managers at SBI are team players and work effectively with others. They work in teams of
motivated people to achieve their goals. Hence, SBI truly values individuals who can work
effectively in team settings and encourage other team members to work towards common
goals.
The bank looks for those who have the ability to listen proactively, demonstrate proficiency
in verbal and written communication and use logic to convince others of their point of view.
This is not only important during discussions within the team but is also relevant in fostering
long term customer relationship.
SBI requires managers who will be future leaders and drive the changes in the banking
industry in India and worldwide. The future leaders should have a strong inclination for
taking initiative, driving results and producing quality output. They should have the ability to
take their teams along and steer the bank towards success.
Strong analytical ability lays the basis for sound business judgement and strategic decision
making in the future. The bank needs managers who are able to use data and logic
convincingly for all their tasks from discussions to making key decisions.
With ever changing needs of the financial world, State Bank of India needs individuals who
are adaptable and mobile, willing to adjust to variety of roles and geographies and show
responsiveness to the needs of the bank.
SBI selects manager both internally and externally. Internal selection includes promotion,
transfers and job rotations. External selection is done through a series of process, which are
very rigorous and require time and money. First, vacancy in the job position is published in
newspapers and websites. After this, applications are invited for a particular job type. These
applications are subjected to scrutiny by the recruitment and selection department (or the HR
department) and ineligible applications are rejected. Then, entrance examinations and
interviews are conducted. Finally, the selected candidates are shortlisted.

25
Analysis
There are good reasons why internal selection is better and is at times preferred over external
selection during the selection of top-order managers. First, it sets a precedent and second, it's
good for morale. Employees are often very pleased when they see that "one of their own" has
been promoted to a top management-level position. And when morale goes up, productivity
most often follows, especially when the employees like or respect the newly promoted
individual.
Secondly, other senior managers often believe that "If it can happen to that person, it can
happen to me, too!" So other managers see an internal promotion as a tangible, credible and
attainable goal for themselves.
Therefore, creating or maintaining clear and higher-level goals, and striving for increased
productivity and visibility, are important sources of motivation. And again, with increased
motivation there is increased productivity, and that often leads to increased employee
satisfaction.
Thirdly, an internal candidate is most likely already familiar with the functional aspects of
their new job. This person knows the corporate culture, the procedures, policies, processes,
employees, and internal and external customers associated with the job. Hiring an internal
candidate clearly decreases, or erases, the usual amount of time spent advertising a position,
interviewing, selecting, training and waiting for the new hire to get up to speed with the new
job and its environment.
A final reason to hire from within is that the current employee is already a "known quantity"
to both managers and non-managers. Both groups know the employee's strengths and
limitations in terms of technical skills, abilities, knowledge bases, and professional
personality.
But when it comes to hiring a middle-level or bottom level manager, however, there are also
reasons why selection of an external candidate is preferred.
First, while the internal candidate may be technically proficient or even technically superior,
their managerial competencies may not exist, may not be apparent or may not have yet been
proven. An external candidate will come with these qualities already intact. When selecting
internally, organisations often commit an error known as the "halo effect"; that is, you see an
employee doing something correct (their job) and, erroneously or without proof, assume that
the employee can succeed in another task or level, in this case, a middle-level managerial

26
position. However, the middle-level or bottom-level managerial position requires a different,
and often more challenging, skill-set that the employee may not possess. What they may
possess is superior technical skills, but technical and managerial competencies are definitely
quite different.
The second reason for hiring an external candidate is that this person comes with proven
managerial expertise, or else the company wouldn't be considering them for the job. While
these candidates may not be familiar with the company's culture, they are familiar with and
experienced in the usual procedures, policies and processes associated with being a manager.
Hiring someone who already knows the managerial ropes is a clear plus in the column of the
experienced managerial candidate against an inexperienced one.
In woefully too many cases, an internally promoted employee doesn't receive the
management training they need before starting in their new management position. So, they
fail to perform optimally in a position for which they weren't qualified to begin with.
Another reason to consider hiring from the outside is that external candidates don't bring
along any negative baggage regarding the company. Internal candidates may be affected by
situations from the past in which they didn't perform well, shirked responsibilities or angered
some co-workers. Now a manager, this person could conceivably have difficulty managing
his former peers and justifying his past performance. An external candidate would have no
such problems.
Finally, external candidates usually bring new energy, ideas, enthusiasm and perspectives to
the job. They most likely have experience doing things differently at other companies, so they
can bring a fresh perspective to their job with the new firm. Internal candidates, on the other
hand, while being a "known quantity" to their company, may not have the exposure to other
organizations, products or services that the business needs to thrive and grow.

27
 SUGGESTIONS AND CONCLUSION
Managers have to deal with numerous responsibilities and manage multiple operations at the
same time. Especially, because they deal in money matters, it is very important for managers
to have a well-organized mind and attention for details. They should not only be able to see
important things but observe any irregularities and wrongdoing as well as avoid them before
they transform into a major issue. Good organization skills also help them in maintaining and
managing bank records and documentation, which is very important for the organization.

While good communication skills have become necessary quality required in any domain, it
holds even more importance for managers. Managers directly dealing with end customers and
therefore, they need to develop excellent written and verbal communication skills to build
trust with their clients. For them, communication skills are also necessary to communicate
important policy matters to their subordinates without any confusion.

This is one of the key qualities required in any type of manager. The managers would be
interacting directly with all stakeholders, clients, and even other employees. The finance
industry is a service sector, which primarily operates on trust and confidence of customers. In
order to win the trust and confidence of clients and investors; the managers will have to adopt
a co-operative and friendly approach in their daily life.
If a person has worked their way up the ranks to a managerial position, it may be in their
nature to take on certain tasks that they have been used to previously doing. But, a good
manager should recognise that this is not their responsibility anymore and should be left in
the trusting hands of their team. Delegating jobs allows your team to see that you trust them
and gives the opportunity for them to add their own twist on certain tasks. It gives them an
opportunity to develop and allows them to thrive in a team environment. Besides this, as a
manager, there are many new responsibilities that one must take on, and by delegating, this
relieves some of the stress and doesn’t leave you biting off more than you can chew.
Overall, a manager is there to manage and lead their team to the highest standards. They need
to be the influence that is able to guide their team in the right direction and offer council and
help where appropriately needed. Linking back to giving feedback, encouraging employees to
work on their downfalls will increase the overall performance standard of the whole team,
which benefits the business as a whole.

28
 BIBLIOGRAPHY

1. The Principles of Management 2nd Edition, 2016 by Anil Kumar and Arya Bhatt
2. Human Resource Management 8th Edition, 2017 by K. Aswathappa
3. Principles of Management 5th Edition, 2012 by P.C. Tripathi and P.N. Reddy
4. http://www.managementhelp.org
5. Selecting and Developing Better Managers by Hugh McCredie
6. Dr David G. Javitch, Selecting the Best Manager; https://www.entrepreneur.com
7. Harvard Business Review e-articles
8. https://sbi.co.in
9. State Bank of India Annual Report 2018-19
10. State Bank of India Annual Report 2017-18

29