Hrm in Cooperative Banks in India Essay

The world of dissemble is apace changing. As a art object of fundamental law, Human Resource focal point (HRM) must(prenominal)iness(prenominal) be prep atomic number 18d to regale with effects of changing world of hammer. occupancy today doesnt name national boundaries it r apiecees around the world. In the ingenuous-enterprise(a) environment, employees of any phone line physical composition be the divulge element for finis making the supremacy of the firm, in general, and joints in particular.Indian conjunct blasphemeing movement has passed through one C years of its existence. At the uniform clipping, serviceman options focus has been a unattended field in co good banks oer a period of time and inadequate persona of accommodating bank employees in the order of magnitude affects their morale. altogether recently has in that respect been a greater recognition of this function.This paper an act has been made to analyze the expends of clement resource doment and the ch either in allenges faced in enlisting and retention of in force(p) personnel office for managing the complex affairs of concerted banks.INTRODUCTIONThe world of work is rapidly changing. As a part of organization, Human Resource Management (HRM) must be prep bed to deal with effects of changing world of work. Business today doesnt uprise national boundaries it reaches around the world. The rise of multinational corporations places new requirements on human resource managers. The HR department needs to ensure that the appropriate intermingle of employees in terms of noesis, skills and cultural adapt major power is avail commensurate to handle global assignments. In order to meet this goal, the organizations must train individuals to meet the take exceptions of globalization. The employees must produce working knowledge of the language and culture of the host country.Human Resource Management (HRM) must also develop mechanisms that allow help multicultural individuals work together. As background, language, custom or age differences become more(prenominal) prevalent, there argon indications that employee free-enterprise(a)ness allow for increase. HRM would be required to train circumspection to be more flexible in its applys.Beca physical exertion tomorrows workers entrust come in differentcolors, nationalities and so on. They must be educate in order to take risks, think innovatively, and handle new problems. In the competitive environment, employees of any business organization are the key situationor for deciding the success of the firm, in general, and conjuncts in particular. It is understood that accommodating banks commence human resource focussing (HRM) from the wrong perspective and their financial accomplishment suffers as a result. Instead of focusing on how to execute organisation through the sufficeance of the employees in many joint banks, the first antecedence is cost control and the fo cus often begins with the HR function. Indian cooperative banking movement has passed through hundred years of its existence.At the same time, human resources management has been a neglected field in cooperative banks over a period of time and poor image of cooperative bank employees in the society affects their morale. Only recently has there been a greater recognition of this function. In this paper, an attempt has been made to analyze the practices of human resource management and the challenges faced in recruitment and retention of efficient personnel for managing the complex affairs of cooperative banks.NEED FOR HRMWorld over, the technology dictated channels such as, ATM, net banking and mobile banking pee-pee reduced walk-in- nodes at the bank branches. However, in India, it is observed that the customers still find it difficult to use these technology based channels and they are more comfort up to(p) in traditional banking over the counter personally to ensure error free and risk free banking service. While struggling to provide better and efficient service at the counters, the staff is also confronted with various regulatory norms to alleviate risks in operations. This clearly undercoates that employees of cooperative banks play a vital parting in managing not tho the transaction of a customer simply also future desire-term relationship with them.HUMAN RESOURCE POLICIESAlthough all co operative banks pitch policies the manner in which they are authenticated and presented to employees varies considerably. Other than the practices explicitly required by law, there are no specific rules on how to document and implement the principles and practices by cooperative banks.thitherfore the determine substance and tone of cooperative banks policies and procedures are totally deep knock off their activities. This discreation presents both a challenge and opportunity for a cooperative institution.The challenge is deciding among al ab give away infi nite choices on how to define coordinate, implement and give out the banks rules of operation. As for the opportunity a penetrate and appropriate set of policies will lay the groundwork to support the cooperative banks business objectives, provide employees with the necessary guidance and achieve the craved organisational culture. In practice, there is no specific written document of HR policies in many cooperative banks.It is neither necessary nor desirable to have e truly rule and practice documented, but it is advisable to take the time to formalize the grave ones. In addition having definite policies in writing such as rules prohibiting illicit discrimination and harassment whitethorn save an organization a draw play of time and money in the event of a law suit. there is no uniformity in the provisions of State co-op Acts. veto a few states which have promulgated parallel State Cooperative Acts, the acts in other states have restrictive provisions which affect free functioning of cooperatives. Further there is no specific HRD policy as such and recruitment of staff is not based on virtue and competence.The Cooperative Act rules and bye- laws were created to protect the cooperative bank from certain nefarious activities prevalent in the market and also save it from the people who have vested interests. These hamper the autonomous growth of these institutions. One important had factor to be noted is that though the cooperative banks come under the financial mark of the RBI, NABARD and the Apex Bank, they enjoy autonomy in personnel matters. The cooperative banks should be committed to Equal Employment Opportunity (EEO) policies that provide a goodish work environment, free of discrimination and harassment of any kind.RECRUITMENT AND infusionOnce the human resource planning is complete, the next step is to acquire personnel necessary to ensure the continued operation of the organization. In the absence seizure of scientific recruitment and se lection procedures, the management of any organization whitethorn fail to select the right man with the right skills for ontogenesis, doing the right job, in theright environment. Moreover, the employees must have faith in the governance of recruitment and selection. Recruitment provides the opportunity to cater to changing needs of people by either repositioning current employees or injecting fresh blood into the organisational veins There are three modes of recruitment in the cooperative banks, viz.a) By direct recruitmentb) By taking persons on commission from Government or from sister cooperative institutions management towards employing women in their institutions.c) By promotionThe main sources of recruitment is newspaper advertisement but in cooperative organization, information in respect of va toleratet posts is conveyed through the system of circular to the State Employment Exchange which receives a restricted distribution. Thus, in the absence of a wide publicity of v a go offt posts, the service in cooperative banks is easily available to the persons known to the top and middle executives informal promotion ordure be a good practice if chastity is not sacrificed. Similarly, recruiting like-minded people can accrue in the future. With the evidentiary increase in the become a bad practice if it leads to organizational behaviour where diversity is resented. Cooperative banks typically follow up precise and strict guidelines to admit members but do not show the same commitment when it comes to recruiting people, despite the fact that hiring decision involves enormous costs when one takes into bet the recruitment costs, breeding costs, salary and benefit over the tenure of employee and reversal cost. Deputation of government ships officers to hold the key posts in cooperative banks is a widely prevalent practice.This practice is consequent upon the dependence of cooperative banks on the government for financial and managerial assistance. Th e practice of deputation affects the bank.employees in certain respects, particularly, the promotion prospects at the high echelons. The informal discussion with the employees of cooperative banks in Tamil Nadu revealed that they are not in favour deputation of officers by government. Further, the cooperative banks, unlike commercial banks, have topical anesthetic identity and the image and have strong banks with local community. Cooperative banks prefer to recruit local candidate particularly for managerial cadre post due to the fact that they are well-adjusted to the local environment. A drawback of cooperatives banks isthat they are not able to attract professionally qualified candidate because of the poor salary structure.The only way to attract professionals would be when requital needs to be internally consistent and externally competitive. It is observed that the in-take of women at both clerical and officer level in cooperative banks is quite insignificant. The reason fo r lower plowshare of women work-force as compared with their male counterparts might be due to lack of ingenious women in the field of cooperation and also the attitude of the At present, the pace of recruitment in Indian cooperative banking sector has slowed down and for a long time, there has been al to the highest degree negligible recruitment. The recruitment of persons in cooperative banks assumes redundant importance because, apart from being competent on the special jobs, they must also be well versed in human dealing and public relations.TRAINING AND DEVELOPMENTDesigning and implementing effective gentility and development systems is a particular challenge because all the costs are borne in the present, while all the benefits will complexity and magnitude of banking service oddly in view of the task undertaken by the cooperative banks for the socio-economic development in urban, semi-urban and rural areas, the need of the learn has been greatly felt. Realizing the sig nificance of reading, the cooperative training institutions established at different levels are imparting training to the employees of cooperative banks. The outcome of the training to any type of organization includes increased productiveness of employees, heightened morale, reduced supervision, and increased organizational stability and flexibility. Poor quality training or a focus on the wrong development areas will be a total waste of time and money. It leaves the organization in no better position than if there had been no training at all Cooperative banks provide training for many reasons1.To teach the employees perform in their initial job assignment.2. To improve the current performance of employees who may not be working as effectively as desired3. To prepare employees for future promotions or for upcoming changes in design, processes and technology in their present jobs. The operational structure and administrative set-upestablished for training of personnel in cooperativ e banks in India is inter co-ordinated and divided into three cadres viz., Senior, position and Junior. The National Cooperative Union of India (NCUI), the national level apex organization and State Cooperative Unions (SCUS), the state level apex organizations are amenable for making adequate arrangements for cooperative training. Though training is principally the office of National Council for Cooperative Training (NCCT) and State Cooperative Unions, there are certain other institutions such as College of Agricultural Banking (CAB), Bankers Institute of cracker-barrel Development (BIRD), International Cooperative Alliance (ICA), International Labour administration (ILO), National Cooperative Development Corporation (NCDC) which have training arrangements for employees of cooperative banks.The major problems found in cooperative banks are lack of knowledge of funds management resulting in acceptance of high cost deposits and their leaning in low return uses. Another problem i s lack of expertness in lending, observing capital adequacy, investment in government securities, managing non playing assets (NPAs), and other newer international rules imposed by the RBI and NABARD. In India, most persons in the cooperative banking sector sprightliness that somehow if one can get a job he/she can automatically manage the affairs of the bank. most of the training programmes organized by the cooperative training institutions impart only theoretical knowledge of the subject. Cooperative banks are localised expansion programme.Before organizing trade unions institutions with poor funds and some of the adept courses offered by the national training institutions are high cost oriented. terminology is another problem. National or state level institutions offer their training programme in common language i.e. English and majority of the cooperative bank employees are not able follow and understand the concept. work APPRAISALPerformance estimate is a systematic approa ch to bring in individual performance against the targeted objectives of the organization and identifying strength and opportunities for improvement. It involves more than giving an annual performance review. While a periodic formal review may be part of the performance appraisal process, good performance management is an ongoing process, a once-ayear event.In cooperative banks, probationersperformance has been monitored and appraised informally. clerical employees diaries, entries to the service register and review of work done periodically are the methods used for appraisal of probationers. However, appraisal is not implemented seriously for immutable employees.All the employees are in favour of introduction of performance appraisal though there is no systematic appraisal followed, right now. Generally, the cooperative banks in India are able to get self appraisal form from their employees. Each individual employee has to submit a self appraisal to the quick superior in the pr escribed format. Unlike commercial banks, cooperative banks, specially urban cooperative banks which are classified as Grade I and II by RBI, are eligible to get increments to their employees whereas the Grade triad and IV banks as classified weak banks and the employees of these banks are not able to get any increments in their salary Cooperative banks have not used any sophisticated methods to evaluate their employees performance. This is the major reason for poor performance of employees in cooperative banks.PROMOTIONAs per cooperative society rules in force, provisions have been made for promotion on the intellect of virtuousnesss and ability of the employees, their seniority being taken into account only when merit and ability are approximately equal. Recognition of employees is the most important dick for motivating and increasing performance. No organization, has been able to attract and harbor key people in the long run by throwing money at them.Recognition and rewards are important. Introduction of mergers and acquisitions process in the midst of and among cooperative banks have created focus on competencies that enable employees to self-manage work in teams, think globally, boldly, and unconventionally and deploy the power of intuition and emotional intelligence. Once the employees are promoted to high levels, improvement of their competencies is an urgent need. Employees competencies are the knowledge, skills, abilities, personality and characteristics that serve as the asylum for employees behaviour. Competencies are a foundational drive of employees as well as organization success because they only represent potential employees performance.COMPENSATIONOne of the most important issues before the cooperative banks in India is compensation in these banks vary. The salary structure of cooperative banks was different from bank to bank even for the same cadre and salary structure of cooperative banks was not uniform. Thus, seniority has account ed for the compensation administration. A remuneration system based on the skill and ability of workers is important. But the cooperative banks cannot attract the talented and motivated personnel unless they establish their image of model employee because an organization which cannot fee its personnel adequately has no right to exist in the competitive world. The salary structure in the cooperative banking sector is not as attractive as in public and private sector banks.An adequate and sound salary structure together with other working conditions is the sine qua non for the organizational efficiency and effectiveness. Therefore, pay and other reward strategies should revolve not only around business goals but also around the employees needs and aspirations, such as the opportunity to work on challenging assignments, flexible work options, work transfer to take care of personal emergencies and opportunities for training and higher studies. Most important ingredient of HRM is reward and compensation, which at present does not have any linkage to skills and performance. There is an urgent need to have the system of reward and compensation in place that will attract, recognize and retain the talent in cooperative banks on the lines comparable with other banks, particularly banks in private sector.EMPLOYER EMPLOYEE RELATIONSHIPA harmonious employer-employee relationship is immanent for the effective functioning of the cooperative banks. Since cooperative organizations consist of groups of human beings, each of whom is activated by varying motives, no cooperative administration can fulfill its obligations if it is not supported wholeheartedly by the employee at all levels. The challenge for the banks is to encourage people to unleash their power of thinking and apply it to their daily work. The employer should always encourage the employees to bring out their fullest talent for the success of the institution. Mere encouragement to generate new ideas is not enough . When people institute genuine attempts to implement their ideas and fail, they need to be encouraged, not discouraged, to try further.Otherwise, theywill never bother to think and try again they will merely follow their mangers. Success can only be achieved if staff feel they are being treated correctly by the bank and amply understand the banks objectives and rational for their achievement. It is essential, therefore, that management develops an employee relations climate which facilitates these attitudes without reducing managements ability to manage the business. The conflict between employer and employee or among the employees is inevitable in any organization. Some make out of conflict is not only desirable, its also necessary. Without a considerable range of ideas presented by persons with diverse backgrounds, experiences and points of view, innovation is virtually impossible. Conflict can also present an opportunity for personal growth.When the managers learn the skill s to work out differences and to develop approaches that take into account the needs of others, it will become more effective. There is a need to develop healthy conflict between the management and employees as not all organizational conflicts are undesirable. There is a classic management delusion that employees readily approach the higher management when they are dissatisfied with the decision of their immediate supervisor. The reality is that employees are generally apprehensive of upsetting their day-to-day relationship with their manager whose decision is most likely to be upheld anyway for the sake of managerial unity.Unfortunately, those who doubtfulness the manager are often labeled as whingers and even though the company policy might be to seek frank employee feedback, the practice might shut them up from speaking out openly. When whingers turn as whistle blowers and expose the management practice in public, it might be too late for the management to prevent the potential damage to its images Executives must set standards at the top. If middle managers feel disrespected, attracted or stifled by senior management, chances are that they will pass this negative attitude down to the employees they supervise. Since a positive relationship with the immediate supervisor is a very important element of job satisfaction, retention should be regarded as an important yardstick in measuring effectiveness.CONCLUSIONCompared with all other management functions, human resourcemanagement in cooperative banks is more sensitive, personalized, context-dependent and cannot be managed through a set of predefined techniques. HR and strategic tool for competitive advantage. In fact, it is difficult first achieving employee satisfaction. Thus, employee satisfaction is a prerequisite to customer satisfaction. Effective organization depends on having the right system of HR policies and practices in place to recruit, select, develop, appraise, compensate and place, promote or s end away employees. found on a careful analysis of the needs of the business, cooperative banks must prioritize their choices around workforce engagement. Successful HRM requires that the banks practice a sound management philosophy that respects human dignity and diversity and are committed to the growth of employees, believe in the value of employees theatrical role and involve them in decision making and share the wealth equitably and fairly.