PERSONNEL MANAGEMENT PRACTICES IN THE KERA|.A- BASED SCHEDIHED COMMERCIAL BANKS Thesis Submitted to the Cochin University of Science and Technology for the Award of the Degree of Doctor of Philosophy in Management under the Faculty of Social Sciences Bv ANTONY K. .1. Under the Supervision of Dr. C. M. GEORGE SCHOOL OF MANAGEMENT STUDIES COCHIN UNIVERSITY OF ‘SCIENCE AND TECHNOLOGY COCHIN - 682 022 COCHIN - 682 022 KERALA, INDIA PHO N E : 0 FFfCE - 85-5310 SCHOOL or MANAGEMENT swmrs ”°' SMS‘ COCHIN UNIVERSITY OF SCIENCE _ AND TECHNOLOGY [email protected].. Dr; 0.1!. Professor CERTIFICATE Certified that the thesis ‘Personnel .Hanaganent.Pract1ces in tho xera1adbased.Schedu1ed commercial Banks‘ is the record of bonafide reseafich carried out by Shri. x.J3 Antony under my guidagbe. The thesis is worth submitting for the degree A} Doctor of Philosophy in Management. ' Dz‘.7/&¢( CJI. GEO ___,. Z‘ DECLARAIIOI I declare that the thesis ‘Personnel Ihnagcncnt Practices in the Kcrala-based Scheduled Commercial Banks‘ in the record of bonafide original research work carried out by me under the supervision of Dr.C.M.Goorgo, Professor, School of Management studies, Cochin University of §cienoe and Technology, Cochin-22. I further declare that this has not previously formed the basis of the award or any degree, diploma, associateship, fellowship or other similar title of recognition. Cochin-22. ®V“"—"—7"\"g 30~3*199. ANTGNY‘K.J. ONNELHANRGEHEHTPRACTICESIHTHKERALABASEDBEMEEULEHCOHIERCI M §2§ §EE "I! you are planning for One year, Plant Seds. It you are planning for Ten years, Plant Treeh{ It you are planning for Hundred yearn, Plant “.09 II you are planning for Thousand years, Piant Ides‘. — N.S.Ra3adhyax. ~aHmmoHen>wmazmzmo»z>zrmzzommmm ~nHmmnHan>wme2m2ma>2rzhmzzommmm PERSONNELMANRGEEENTP'~CTICESINTHEKERALAE¢SE5SCEED<5 E‘3>fiHMfiflflflZH§!Bh4UHN()hHi<53>ZWUFi§5EH3tdC1>%I3>IHFEUEHI(3UH3 3Z+4HHMC1hHi€)>¢UfiflH5lFfl3EUC3E433H3t‘RHZ=HCHh:DEVUfiflWNZ3>UH53> >'BASEDSCHEDULEDCOMMERCIALBANKSPERSONNELHANAGEMENTPRACTICEBINT 1. ACKNOWLEDGEMENTS I received all the inspiration for this work from Dr.C.MkGeorge, Professor, School of Management Studies. He has been very kind and helpful to me, guiding and supervising all my works in connection with this study. This research work was carried out with the financial assistance from the University Grants Commission under the Faculty Improvement Programme. The Management and Principal of Vlmala College, Trichur were pleased to nominate me for the assistance under this scheme. Te Government or Kerals were gracious to accord sanction to relieve me for three years, ot all my duties as a Professor of Comerce. The data used in this study were collected mainly from the files and other records of five Kerala-based scheduled commercial banks. I acknowledge gratefully my deep sense of obligation to the Managements of these banks for their kind permission to draw the necessary information from the files. I very much esteem the friendly co-operation and commendable assistance rendered to me by the officers and other personnel of these banks. It goes without saying that this study could have never been completed without the helpful attitude and devoted service of the different officials at different levels in the School of Management Studies and the Cochin University of Science and Technology. I express my most sincere thanks for the invaluable services of each and everyone of the. My thanks are also due to all my associates at home and also­ where who so patiently bore all the stress and strain imposed on them by my full-tine engagement in this study. Aurlomr K.J. 11. CONTENTS CHAPTER PAGE Aokncwledgeuants 1 List of Tables V11 Abbreviations used in the Thesis 1. mmonucrtom rm PROBLEM Arm RATIONALE OF THE sum? I.1 - 1.13 1.1 The Problem I.1 1.2 Obaeotives of the Study I.5 1.3 Hypothesis 1.5 1.4 Survey of Literature I.5 1.5 Universe and Sample of Study I.9 1.6 Limitations I.1O 1.7 Methodology 1.11 1.8 Plan of the Study I.11 References I01’ 2. COMMERCIAL BANKING IN INDIA Bgflh ’ $.32 2.1 Origin of Banking 8.14 2.2 Duvnlqpnnt of Banking in India .B.15 2.3 Bank Fhlures B.20 2.4 Regulation of Banking 3.21 2.5 Nationalization of Banks B.23 2.6 Baking in Keraln B.23 2.7 Unique Featuroe or Karel: Banking B.28 References 3.30 3. PERSONREL MANAGEMENT Me}: "" M.49 U! .1 Origin and Development M.35 3.2 Significance of Personnel Management M.35 3.3 Scope of Personnel Function M.37 3.h Personnel Hnnageent: A Line Function M.hO 3.5 Personnel Department H.42 3.6 Personnel Manager M.44 Rsterenoes M.h7 iii. RAGE 4. roancmsrmo ow mun ansouaczsz asoumnmn.-s H.9o - H.102 u.1 A J0 ANALYSIS H.5o 4.-.1-1 Definitio H. 51 14.1.2 Job Analyst £1.53 5-4-.3 The Proceee of Job Anlyeia 3.53 4.1.4 Role Analysis 3.55 4.1.5 Problems in Job Analysis 11.56 11.1.6 Organisational Uses of Job Analysis H.56 4.1.7 Job Analysis System in the Banks H.63 4.2 HUMAN RESOURCE PLANNING 11.69 4.2.1 Definitions 11.70 z..2.2 Significance of Human Resource Planning 11.72 4.2.3 Problems in Human Resource Planning 11.74 4.2.4 Human Resource Planning Process 5.76 40205 Human Resource Information System H.T9 4.2.6 Period of Plan 11.19 4.2.7 Load-time 11.60 a.2.a Review of Plans 11.81 2.2.9 Evaluating Human Resource Planning Eirectivaneae r'i.81 4.2.10 Executive Talent Planning H.82 4.2.11 Human Resource Planning in Indian Bank: H.8h 4.2.12 Hman Resource Planning Practice: in the Banks H.86 4.5 Findings H.9h h.h Suggestions H.97 References and Note H.98 5. ancaummvr AND snuscnon R.105 - R.183 5.1 Recruiting: A Personnel Function a.1oa 5.2 The Process of Recruitment R.106 5.3 Sources of Recruitment a.11o 5.4 Recruitmet Advertising H.116 5.5 Appl ioet ion Blank a.12o. 5.6 Application Fee: €3.12: iv. RAGE 507 Qualification 3.123 5,3 Age Lilitl R.139 5.9 Written test 3.141 5.10 Interview R.1h6 5.11 Check of References a.155 5.12 Selection and Ranking a.155 5.13 Time Lag in Recruitment H.160 5.14 Induction and Orientation R.163 5.15 Probation H.165 5.16 Recruitment of Women H.169 5.17 Findings R.17h 5.18 Suggestions H.177 References 3.119 6. TRAINING AND DEVELOPMENT Te‘8h "" 6.1 Importance of Training T.18h 6.2 Training and Development: A Personnel Function T.188 6.3 Position of Training in Indian Banks 1.190 6.4 The Infrastructure for Training T.192 6.5 Training Methods 2.196 6.5.1 Veetibule Training T.196 6.5.1.1 In-couany Programme: T.197 6.5.1.1.1 Faculty T.19B 605919102 Principal T.203 6.5.1.2 External Training T.20h 6.5.2 On-the-Job Training T.205 6.5.3 Publications of the Bank T9208 6.5.4 Other Facilities Provided by Banks T.208 6.5.5 Monetary and Non-monetary Incentives T.209 6.6 Identifying Training Need: 1.210 6.? Designing Training Programme: T.213 6.8 Evaluation of Training T.218 6.9 some Notable Practices T.223 601° Fifldiflfil T.22h 6.11 suggestions T4225 Reference: and Note T.230 Vs PAGE 7. PERFORMANE APPRAISAL A.235 - 4.277 7.1 The Need for Performance Appraisal A.235 7.2 Setting up a Performance gppiafisal A_235 7.3 Problems in Performance Appraisal 4.239 7.4 Position of PerformanceIndian Appraisal Banks in A_241 ' 7.5 Criteria for Appraisal 4.243 7.?7.87.6 Performance Te Review Appraiser Appraisal 4.255Forms 4.252 4.251 7.97.10 Composite Followbup Rating A.258 A.255 7.127.11 Organisational Time of UsesAppraisal of §;;¥g:::gce 4-255 A 250 7.13 Training the Rater A.268 7.157.14 Role Findingsof Personnel Department A.27O A.259 7.16 ReferencesSuggestions A.274A.2?1 8.8.1 PROMOTIONS Definition P.27B P.273 - 9.345 8.38.2 WhyPrmotion Promotion? Policy P.280P.279 8.48.4.1 Bases Seniority of Promotion P.283 P.281 8.4.38.4.2 Merit-cum-seniority Merit P.284 P.285 8.4.58.4.4 Assessment Other Criteria of merit P.289 P.287 8.4.6 Accelerated Promotions P.291 8.5 The Problem or Unpromotod Employees P.292 8.6 Promotion System in Indian Banks P.293 8.? Recommendations of CommitteesCommission and 9.295 V10 PAGE 8.8 Reeervatio P.30O 8.9 Promotion Practices in the Banks P.306 8.9.1 Promotion of subordinate staff to clerical cadre P.305 8.9.2 Promotion of clerical staff to officer cadre P.313 8.9.3 Grade-promotion or officer! P.52h 8.9.5 Fixation of pay on prootion P.333 8.9.5 Certain Notable Practices P.335 8.10 Findings P.338 8.11 Suggestions P.339 Reference: P.342 9. COMPENSATION C0346 " 9.1 Definition C.3h6 9.2 The Concept of wages C.347 9.3 Significant Faotors Affecting C.348 Compensation 9.4 Job Evaluation C.353 9.5 Wage Determination in Indian Banking C.354 9.6 wage Determination in Kerala Banks C.365 9.7 Wage Determination Practice in the Sample Bank: C.36B 9.3 Supplementary Compensation 0.372 9.9 Incetive Compensation C.375 9.10 Findings C.377 9.11 Suggestions C.377 References C.378 10.