INTERNSHIP PROJECT REPORT

ON

Study on HR Best practices across the

Industry

BY
MANVI BHUTANI
(Roll no. 20130126)

SRI SHARADA INSTITUTE OF INDIAN MANAGEMENT AND RESEARCH

(2013-2015)

INTERNSHIP PROJECT REPORT

ON

Study on HR Best Practices across the

Industry
By

Manvi Bhutani
(Roll no. 20130126)

Done at

Bank of Baroda
Chandigarh
Project report is submitted in partial fulfillment of the requirements of PGDM
Of Sri Sharada Institute of Indian Management and Research

SUBMITTED TO
Ms. MOHANTY DEVAHUTI
(Industry Guide)

Col. K. Gurusamy
(Faculty Guide)
Date of Submission: 22nd August, 2014
D E C LAR AT I O N

I, MANVI BHUTANI a student of Sri Sharada Institute of Indian Management and

Research, New Delhi, pursuing PGDM course hereby declare that the project work entitled
Study on HR Best Practices across the Industry carried on in BANK OF BARODA, and
its value added services is an original work carried out by me availing the guidance of my project
guide to my entire satisfaction. This report bears no resemblance with any other report submitted
to Sri Sharada Institute of Indian Management and Research, New Delhi during the current
academic year, or earlier for the award of any degree or diploma. I am presenting this during the
year 2014 in partial fulfillment of Post Graduate Diploma in Management (PGDM).

I also declare that this project report work is not submitted to any other university for any degree.

Date: 20th August, 2014

Name: Manvi Bhutani

CERTIFICATE
This is to certify that MANVI BHUTANI has successfully completed her summer internship
project at Bank of Baroda, Chandigarh under the guidance of Ms. Mohanty Devahuti
The details of the project are as under:
Title of the Project:
Study of HR Best Practices across the Industry
Tenure of the Project:
23rd June, 2014 to 22nd August, 2014
We wish her luck for all her future endeavors.

MS. MOHANTY DEVAHUTI

Human Resource Department
Bank of Baroda
Chandigarh

TABLE OF CONTENT
S. No

Title

Page no.

1.
2.
3.
4.
5.

Acknowledgement
Executive Summary
Introduction
HR Initiatives
Human Resource Creating Competence And Passion For
Business Excellence

6
7
8-10
11-14
15-16

6.

Faces of HR Practices in todays scenario in Indian Banking

Industry

17-18

7.
8.

Literature Review
Learning objectives and Scope of Study

9.
10.
11.

Profile: Bank of Baroda

Organizational Structure
Challenges faced by Banking Industry and how to meet them

21-27
28
29-33

12.
13.

Some other HR Practices &Benefits given to employees

Need and Significance

34
35-37

14.

38-40

15.
16.
17.

Research Methodology
-Research Objectives
-Limitations
Presentation of Data and its analysis and Interpretation
Findings
Recommendations and Suggestions

18.

Conclusion

19
20

41-50
51
52-55
56

19.

Bibliography /Refrences

57

20.

Annexure I- Questionnaire

21.

Annexure II-SPSS Variable View Sheet

62

22.

Annexure II-SPSS Data View Sheet

63

23.

Photo Gallery

58-61

64-66

ACKNOWLEDGEMENT

I deeply express my profound gratitude and whole hearted thanks to Sri Sharada Institute of
Indian Management and Research, which provided necessary facilities, guidance and endless
encouragement, which helped me soundly. It is a boon to all of us not only in completing our
projects but also throughout the course of study under the humanitarian grounds.
I take this opportunity to express my gratitude to Ms. Mohanty Devahuti, my Industry
guide for her co-operation exemplary guidance, monitoring and constant encouragement
throughout the internship project. The blessing, help and guidance given by her from time to
time shall carry me a long way in the journey of life on which I am about to embark.
I am also grateful to other co-colleagues and Mentors Mrs. Ratika Sood, Mrs. Seema, Mr. Ram
Dayal and Mr. J.P. Sharma, Mr. Jatinder Mohan (IT Department) for enabling me to learn the
work process and able to learn many things for being in an Banking Industry and making this
tenure of learning at banking industry a memorable one.
I also thank all the employees in Bank of Baroda for their cooperation in successful completion
of my project.
I take this opportunity to express my profound gratitude and deep regards to my Faculty guide
Col. K. Gurusamy to prepare a PROJECT REPORT for his exemplary guidance, monitoring
and constant encouragement throughout the course of this project.
Lastly, I thank almighty, my parents, brother, sisters, uncle, aunt and friends for their constant
encouragement without which this assignment would not be possible.

MANVI BHUTANI
PGDM BATCH 2013-15

EXECUTIVE SUMMARY
During my summer internship at Bank of Baroda, Chandigarh, I got the opportunity to work with
the Human Resource department of BoB under the guidance of Ms. Mohanty Devahuti. It could
not have been possible without the continued support and guidance of Ms. Mohanty Devahuti.
The internship program commenced from23rd June, 2014 to 22nd August, 2014. During this time,
I got to interact with all the employees of Bank of Baroda, Regional Office, Chandigarh. During
the first week of my internship program, I studied the background and theory of HR Practices
and its various determinants and how it impacts an organization. The whole process was very
educative and I get to learn a lot by working with employees of Bank of Baroda and observing
the working of Indias second largest Bank. With the Consistent help of my Industry Guide, I
Learnt the Work Process and the Working of HR and its Best Practices in Banking Industry.
During the next week, I constructed a HR Practices Questionnaire for collection of data for my
project Bank of Baroda Study on HR Best Practices. Then I started collecting the data for the
same. For this purpose, I got the questionnaire filled from employees of the Organization.
Analysis of the collected data was done and during the last week, I with the help of my company
guide, studied HR Practices of Bank of Baroda, Chandigarh to make BoB a Best HR
Practitioner. The whole process was very educative and I get to learn a lot by working with
employees of Bank of Baroda and observing the working of Indias second largest Bank.

I am happy to be a part of BOB Family in these two Months and my Stay at Chandigarh.

INTRODUCTION
For more than a century now, human resource management, as a discipline and practice
in management of people in an organization, has evolved and developed into different areas.
These disciplines and practices have gone through the process of trial and error, theory building
and testing of various concepts by practicing managers and academics (Farnham and Pimott
1979; Storey 1989; Armstrong 1995). Human Resource management principles and techniques
for people management in competitive organizations are drawn from theories found in different
disciplines. According to Institutional Theory, the word institution means different things to
different people and combines various disciplines of politics, law, psychology, public
administration, economics etc to explain why certain actions are taken and their impact on the
organisation. The process of standardization of procedures affects behavior of people in the
organisation. Thus Employment contracts, performance agreements and other employment
related instruments form a useful aspect of human resource management.
The productivity of people working in an organisation depends deeply upon the policies
that are used by the organisation towards its people i.e. its employees. Thus Human Resource
management becomes a very important aspect of todays organisation which cannot be ignored.
HRM department undertakes a number of practices that ultimately leads to organisational
effectiveness.
The Human Resource today does not just limits to administration tasks of making payrolls and handling leaves and attendances etc. It has evolved into a discipline of strategic
importance to organisations. The HR goals are aligned with companys overall performance to
have co-ordination among various departments and also to have necessary and right amount of
people with right skills, working at right jobs at right time to ensure the profitability of an
organisation. The figure below shows the various HR practices.
8

Fig 1. HR Practices
Economists and managers traditionally used to view HRM as a necessary expense, rather
than as a source of value to their organisations. But now a day, a world class organisation is the
one that invests not only on acquiring new technology and promoting quality but also on the
state-of-the-art staffing, training, compensation and personnel management practices.

10

HR Initiatives
People oriented Deployment, Promotion and selection policies
Bank has formulated and put in place well documented and comprehensive deployment,
promotion and selection policies oriented towards identifying the best talent and providing
opportunities for fast-track growth and development. Some of the prominent HR policies put in
place are

HR Resourcing policy

Promotion policy for officers

Transfer policy for officers

Promotion policies for clerical and subordinate cadre

Overseas selection policy

Talent identification & grooming programmes

Various programmes are being run by the Bank for grooming of officers in specialized areas of
Credit, Forex, Treasury / Dealing, Wealth Management, for grooming of Branch heads, etc.
Customized Leadership development programmes
PROJECT LEAP: Bank has been a forerunner in initiating customized and focused leadership
development programmes for its operational and strategic leaders. Project-LEAP (Leadership
enhancement and appreciation programme) was initiated by the Bank for grooming 300 leaders
of the Bank and was implemented during the period 2007-2009. It involved systematic
development of identified leadership competencies after running of an individualized assessment
and gap analysis on those competencies for each participant.

11

PROJECT UDAAN: This is a comprehensive leadership development programme initiated by

the Bank covering almost 300 AGMs / DGMs and almost 1200 Branch Heads of Urban and
Metro Branches.
The design of each module encompasses a field and forum approach wherein the participants are
required to attend classroom sessions on various aspects of leadership and apply the acquired
learning to real business situations. The classroom sessions are also designed to be very
experiential with role-plays, activities, etc. reinforcing various leadership concepts in an off-site
location coupled with coaching sessions in between.
HRNes (Human Resource Network for Employee Services)
"HRNes" covers the entire gamut of human resources management function in the Bank
currently being performed and also includes many new sub-functions. It comprises of four broad
modules encompassing different functions:

Oracle Core HR Module, covering all current HR processes in the Bank;

Fluous Payroll Module, - centralized payroll, payments of various benefits, perks, welfare
schemes, terminal benefits, etc.;

Employee Self-Service Module.

Oracle Learning Management Module which includes training administration & elearning; Various E-Learning modules are gradually being put on the system for
employees to avail of and undergo these courses.

Employee performance management system

A new Performance Management system has been formulated and implemented for all officers
w.e.f. 2009-10 onwards. The new system enables a holistic approach to the issue of managing
performance and does not limit to only an appraisal. It starts from performance planning and
Goal-setting and takes it forward into performance review discussions, feedback and

12

development. The new system is business-linked, highly objective and fully transparent, with
individuals owning and managing their own performance themselves.
Baroda Sujhav and ideaonline@bankofbaroda.com
Idea channels for eliciting new ideas from employees with structured rewards provisions for the
best ideas.

Streamlined Induction schedule for all new joiner

Bank has put in place a well-defined and properly structured induction programme, phase-wise
for different batches of directly recruited officers, campus recruitees and newly recruited clerks,
which is imparted through a mix of classroom and on-the-job training.
Role-change programmes and executive development programmes
Executive Development programmes are being regularly conducted for newly promoted senior
and top management people in conjunction with leading Business schools like ISB, Hyderabad,
MDl, Gurgaon, National Institute of Bank Management, Pune, etc.
Role change programmes are being conducted for newly promoted employees at Bank's internal
training establishments which give them inputs on behavioural issues, soft skills, team work,
leadership, etc. besides ways on how to cope with the challenges of the new role better.
Grooming and etiquettes programmes
Grooming and etiquettes programmes are being conducted for front-line employees and also for
employees selected for overseas posting in order to improve their service levels and qualitative
interaction with customers and various stakeholders better.
SEED (Self efficiency and effectiveness development) programme being run for frontline staff of
the Bank in order to improve their service skills and servicing efficiency.
13

ABOUT HUMAN RESOURCES AND PRACTICES OF HRM AT

BANK OF BARODA
Bank of Baroda has the tradition of continuous enrichment of its human asset so that they deliver
value to the business. In the ongoing Business Transformation Programme, our PEOPLE play a
vital role and are one of the key business enablers. Under its plan of organizational
transformation through people processes and systems, the Bank has launched a few innovative
employee centric initiatives and has also undertaken revamp of key systems and practices.
HR Objectives

To initiate & institutionalize globally competitive HR practices in the Bank in our pursuit to
become a Bank of international standards and to become an employer of preferred choice.

To put in place relevant HRD strategies and use modern methodologies to undertake
Organizational renewal; identify and nurture talent, bring about marked changes in the
mindset of employees at all levels so as to enhance HR Quality

To create a performance- driven culture and exciting workplace for the employees

To create a pool of entrepreneurial managers and business leaders for future;

To inculcate a strong and effective sales and service culture across levels in the organization
in order to generate strong stakeholder affiliation

To create a learning organization for employees intellectual growth and creativity; and to reskill the workforce to operate in digitally enabled modern core banking environment

The Strategic HR Business Model adopted by Bank of Baroda incorporates its HR Mission and
Philosophy and is focused towards attainment of long-term organizational goals. A very strong
Organizational Leadership at different levels forms the key link in the Model.
These are;
14

Strategic Leadership - Corporate level II.

Business Leadership - Zonal & Regional level III.
Operational Leadership - Business unit level i.e. branch

HUMAN RESOURCE CREATING COMPETENCE AND

PASSION FOR BUSINESS EXCELLENCE
The triumph and all around growth of the bank is an outcome of the synergy of various assets
that the bank possesses. One of the vital of them being its human asset-its people, which has
enabled the bank to traverse through an all encompassing growth trajectory.
Realizing the criticality of this asset for the sustained growth of your bank on the one hand and
multiple challenges like the large number of retirements, massive intake of talent, huge training
requirements, succession planning and engagement for higher productivity.
Besides excelling in the routine HR activities like recruitments, promotions, deployment, a host
of new HR interventions reforms have been used in the bank under the gamut of a well
structured and a comprehensive HR transformation project aptly christened as PROJECT
SPARSH- HUMAN TOUCH FOR BUSINESS EXCELLENCE. This is an unparallel HR
transformation project in the banking industry sought to construct an integrated framework of the
various elements of HR functions in bank. Since commencement of Project Sparsh in August
2011, several new and path breaking HR initiatives have been launched and a host of other
existing policies, schemes.
The Baroda Manipal School of Banking is a unique association of Bank of Baroda and
Manipal Global Education to train students for a banking career in Bank of Baroda on a first day
first hour productive model and have a ready pool of trained officers. The students undergoes a
focused one year programme customized to the banks requirements and this leads to the award of
a post graduate diploma in banking and finance, before they are observed in the bank as
probationary officers. The Programme works on an inverted model Train, Hire and Deploy.
The innovated resourcing channel was initiated during the year FY12 and so far since its
inspection, 1,379 students from seven batches have joined the bank as officers and at present
around 1068 students are undergoing the training at the BMSB campus at Bengaluru.
15

Large Scale Training on Products Bank carries out a campaign called ASCEND for large
scale product training to impart Product Knowledge to the Front Line officers on Retail Liability,
Retail Asset and E-business products. The campaign was run entirely by the trainers and
operational bankers and it covered 5, 987 employees amounting to about 95% of the target
group.
Similarly, two rounds of All India Quiz christened Baroda Gyani were organized to bring more
awareness on product knowledge. More than 4000 employees from sub staff to officers
participate in this competition upgrading their product knowledge, E learning modules on retail
products were also launched for this purpose.
Employee Engagement and Rewards To augment the engagement levels in the employees for
higher motivation and productivity. Bank has formulated a policy of employee engagement. As a
part of this policy various initiatives like conduct of satisfaction surveys, workshops for
interaction of juniors and seniors are undertaken to improve the employee connect with HR and
top management.
To promote a culture of performance and to reward the top performers the banks has recently
launched linked incentive scheme for its employees.
Formulation of Talent Management System With a view to identify and groom the young
potential leaders in the bank so that they can go on to man the critical leadership position and
thereby fill up the foreseen leadership gaps in future. Bank has taken big stride of designing and
implementing a well orchestrated Talent Management System. This system proactively identifies
future potential leaders on various criteria and also grooms them through a systematically
developmental plan for each of the identified future leader.
This is an annual exercise and in FY 14. Bank was able to clearly identify around 20% people in
specific scales of officers viz. Scale II, III, IV, V, VI as the future leaders.
Implementing of HR Technology
Bank has put in place a very comprehensive HR Technology platform covering HRM, Training,
Payroll and leave modules christened as the Human Resources Network for employee
16

Services (HRNes) This technology platform has enabled automation of various HR

functionalities and processes. The HR automation is a key enabler in the implementation and
sustenance of various HR initiatives and certain processes have completely been automated thus
enhancing the efficiency of the HR Operations thereby reducing the turnaround time.
In addition to the above HR interventions, the set up of the HR function in your bank has also
been strengthened further during FY 14 and made more efficient by centralization of the routine
administrative activities into a HR Back Office.

FACE OF HR PRACTICES IN TODAYS SCENARIO IN

INDIAN BANKS
How well Challenges are met will mainly depend on the extent to which the banks leverage their
primary assets i.e., HR in the context of the changing economic & business environment.
It is expected that the Indian banking and finance system will be globally competitive. For this
the market players will have to be financially strong and operationally efficient. Capital would be
a key factor in building a successful institution. The banking and finance system will improve
competitiveness through a process of consolidation, either through mergers and acquisitions
through strategic alliances
Indian Banking system has played a crucial role in the socioeconomic development of the
country. The system is expected to continue to be sensitive to the growth and development needs
of all the segments of the society.
Besides practicing HR in different units it is also a mammoth task for the banks to face the
central and outer challenges. In different way the HR department sales, finance and manufacture
the strategic over time to achieve its ultimate objectives. Monitoring as well as changing the
strategy also permits the business to cope up with the current demand.
EARLIER STUDIES
Human resource development is a process through which employees in an organization are
assisted to realize their full potential for their present and future jobs. It involves long term
perspective which visualizes change through involvement and ownership of such change by the

17

participants. HRD believes that individual in an organization have unlimited potential for growth
and development and that their potential can be built through appropriate and systematic
efforts.
The abbreviation HRD denoting, Human Resources development is creation of western
countries; they treat and deal human force as resource. Resources are explored, exploited and
discarded after their use. Continuous use of resources make them weak and futile, they decay
with time. However, human beings become wiser, stronger and grow from within each
challenge / problem encountered. Wisdom and strength in human beings appreciated with time
but use of resource always make them weak, futile and depreciate.
D.V. Ramana Murthy has discussed in this article on Human Factor in Banks, the significance
of human factor and trade unions in the banks. S.R. Varde in his paper on Manpower Planning
at the level of an Indian commercial bank dealt with the aspects like basic structure of manpower
planning, linkage of manpower plan to other plans,
Inter relationship of various manpower functions, objectives of manpower planning in Indian
commercial banks, anatomy of manpower plans and techniques of manpower planning. N.R.
Seth discussed growth, functioning and progress of trade unions in Indian banks. P. Subba Rao,
have discussed the role of counseling, performance counseling and action planning in his paper
on Bank Branch Manager as a Counsellor.T.V. Rao, in his book on The HRD Machinery
explained HRD instruments, processes And outcomes, HRD Departments and their tasks,
structuring the HRD function, qualities, and competence requirement of HRD managers,
developing HRD managers, traps and temptations of HRD mangers and HRD instruments.
Balader R. Sharma in his study on Human Resource Management in Banking Industry studied
managerial beliefs, work technology andOrganizational climate.P. Amsa in his paper
Organization culture base for effective HRM in Banks studied HRD related areas in brief in
addition to various issues related to human resource management.T.P. Raman in his paper on
HRD in State Bank of India explained the practice of HRD and various techniques of HRD in
State Bank of India. His paper is mostly based on his work experience in the bank rather than a
study. R. K.Agarwal. In his paper on HRD in State Bank of Patiala explained the objective
and structure of HRD department,HRD climate and various techniques of HRD in the Bank. This
paper also suffers from the same limitations of the T.P.Ramans paper.The recent emphasis on
human resource management, e.g. Storey (1992), Torrington and Tan Chee Haut (1994),suggests
18

that not only is the management of labour being given more attention, but that the issues
discussed are broader and more strategic as well as tactical (see also Wilkinson & Marchington,
1994). Miller (borrowing from Porter (1995) defines strategic human resource management as
those decisions and actions which concern the management of employees at all levels in the
business and which are related to the implementation of strategies directed towards creating and
sustaining competitive advantage. (1987, p.352) . Thus, unlike the traditional peripheral function
of many personnel managers, the newer style of human resource mangers attempts to: relate
personnel practices to beliefs, to link each and every process of the recruitment, induction,
training, appraisal rewarding of individuals to an overall set of articulated beliefs of organization.

LITERATURE REVIEW
Bank lending in Dec up five-fold over Nov31 Dec 2009, 0212 hrs IST, ET Bureau
After a sluggish November, bank lending picked up nearly five-fold in December over the
previous month. According to the latest Reserve Bank of India (RBI) figures, total loans,
including food creditloans to Food Corporation of India for food grain procurementand nonfood credit (all other loans) amounted to Rs 29,41,293.07 crore as on December 19. This
represents a sequential growth of Rs 34,028 crore since November 27 compared to a growth of
Rs 7,698 crore in the whole of November. Of this, non-food credit grew Rs31,342 crore in
December, compared to Rs 5,247 crore in the entire month.In a speech on Tuesday, RBI deputy
governor Shyamala Gopinath had said that with the economy posting strong growth in the
second quarter of the year, credit demand was expected to pick up. She added that this has
already started reflecting in the recent fortnight. Speaking to ET recently, Bank of India chairman
& MD Alok Misra and Bank of Baroda CMD MD Mallya had indicated that there were initial
signs of credit revival. Going bythe credit proposals that we received for December, we are
hopeful that the fourth quarter would be better than the preceding three quarters, said Mr
Misra.There are signs of revival in credit demand and it is seen across sectorsinfrastructure,
SME and retail, Mr Mallya pointed out. Oriental Bank of Commerce CMD TY Prabhu said that
as of now credit demand is seen primarily from the agriculture sector.
In the second quarter ended September 2009, many banks, including State Bank of India, Bank
of India, Union Bank of India and Bank of Baroda, had reported sanctioning large loans worth
Rs 20,000-30,000 crore to the infrastructure sector. However, the borrowers have not sought
disbursal for these loans.
Bank of Baroda to open over 300 branches next fiscal N.S. Vageesh Chennai. Dec. 20 2009
Mr M.D. Mallya, Chairman and Managing Director of Bank of Baroda, is described by his
colleagues as a down-to-earth person and a thorough gentleman'. They say he has a good grip on
the business and has built on the contributions made by his predecessors. He has taken the bank
forward instead of undoing their initiatives. Mr Mallya's academic credentials are interesting.
He did his Engineering graduation from REC Surathkal, and then did a management program at
the Indian Institute of Science before joining the banking world three decades ago. While
19

acknowledging the contribution of his background in giving him analytical skills, Mr Mallya
tells you that what a banker needs most is common sense. That point is highlighted a few
moments later when we discuss new business being acquired by the bank. He points out that
the bank must chase profits rather than business volumes. He carefully monitors the
sustainability' of the business by looking at weekly growth figures submitted by his officers
rather than quarter-end figures which can often be dressed up

Learning Objectives: The current study is conducted to help the Human resource
department of Bank of Baroda to understand what makes bank of Baroda HR Best Practices
among its employees by analyzing their responses on various determinants. Thus the major
objectives of the study are to:
a) Analyse the responses of employees of Bank of Baroda with respect to various
determinants of HR Practices.
b) Spell out the challenges that Bank of Baroda faces.
Make recommendations to help Bank of Baroda enhance the HR Best Practices across the
Industry
Scope of Study: This study has been conducted to analyse the HR Practices of Bank of Baroda.
The study has been conducted in Chandigarh region. The Job satisfaction of the employees has
been evaluated with respect to 17 following factors:

HR Planning
Incentive Practices
Team Work
Training and Development
Performance Appraisal
Proactive vs Reactive Culture
Trust vs Distrust
Motivation
Compensation
Organisations Structure
Job Characteristics
Environmental Factors
Recognition
20

Ability Utilization
Growth opportunities
Organisations Culture
Co-Workers

PROFILE: BANK OF BARODA

Bank of Baroda (BoB) is an Indian state-owned banking and financial services company
headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It is the second-largest
bank in India, after State Bank of India, and offers a range of banking products and financial
services to corporate and retail customers through its branches and through its specialized
subsidiaries and affiliates. During FY 2012-13, its total business was 8,021 billion. In addition
to its headquarters in its home state of Gujarat, it has a corporate headquarters in the Bandra
Kurla Complex in Mumbai.
Based on 2012 data, it is ranked 715 on Forbes Global 2000 list. BoB has total assets in
excess of 3.58 trillion (short scale), 3,583 billion (long scale), a network of 4283 branches
(out of which 4172 branches are in India) and offices, and over 2000 ATMs.
The bank was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on 20
July 1908 in the Princely State of Baroda, in Gujarat. The bank, along with 13 other major
commercial banks of India, was nationalised on 19 July 1969, by the Government of India and
has been designated as a profit-making public sector undertaking (PSU).

21

Bank of Baroda is one of the Big Four banks of India, along with State Bank of
India, ICICI Bank and Punjab National Bank.
In its international expansion, the Bank of Baroda followed the Indian Diaspora,
especially that of Gujaratis. The Bank has 101 branches/offices in 24 countries including 61
branches/offices of the bank, 38 branches of its 8 subsidiaries and 1 representative office in
Thailand. The Bank of Baroda has a joint venture in Zambia with 16 branches.
Among the Bank of Barodas overseas branches are ones in the worlds major financial
centers (e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well as a
number in other countries. The bank is engaged in retail banking via the branches of subsidiaries
in Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans has recently upgraded its
representative office in Australia to a branch and set up a joint venture commercial bank in
Malaysia. It has a large presence in Mauritius with about nine branches spread out in the country.
The Bank of Baroda has received permission or in-principle approval from host country
regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish
joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open
offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South
Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New Zealand, Sri
Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing operations in
the United Kingdom, the United Arab Emirates, and Botswana.
The tagline of Bank of Baroda is "India's International Bank".
Bank of Baroda and Manipal University have established the Baroda Manipal School of
Banking, which offers a Postgraduate Diploma in Banking & Finance (PGDBF) from Manipal
University. The duration of the course is just one year, after which, successful graduates will join
Bank of Baroda as management trainees.
Bank of Baroda provides wide range of services, be it deposits, loans & advances,
Collection services, Working Capital Finance, Term finance, Non Fund based Facilities, Trade
Finance, Merchant banking and other such aspects of banking. The small and medium business
22

enterprise is one of the fastest growing sectors in the country. Bank of Baroda offers various
products and services that meet the specific requirements of such enterprises and help them
grow.

A saga of vision and mission of enterprise

Vision:
It has been a long and eventful journey of almost a century across 25 countries. Startingin 1908 from a
small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai is a saga of
vision, enterprise, financial prudence and corporate governance. It all started with a visionary Maharaja's
uncanny foresight into the future of trade and enterprising in his country. On 20th July 1908, under the
Companies Act of 1897, and with a paid up capital of Rs 10 Lacs started the legend that has now
translated into a strong, trustworthy financial body,
THE BANK OF BARODA It has been a wisely orchestrated growth, involving corporate wisdom, social
pride and the vision of helping others grow, and growing itself in turn. The founder,
Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a bank of this nature will prove a
beneficial agency for lending, transmission, and deposit of money and will be a powerful factor in the
development of art, industries and commerce of the State and adjoining territories."It is a story scripted in
corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state
ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of Bank of
Baroda to the formidable heights of corporate glory. It is a story that needs to be shared with all those
millions of people - 16customers, stakeholders, employees & the public at large - who in ample

measure, have contributed to the making of an institution.

Mission:
To be a top ranking National Bank of International Standards committed to augmenting
stakeholders' value through concern, care and competence
BOB Logo
Our new logo is a unique representation of a universal symbol. It comprises dual B letter forms
that hold the rays of the rising sun. We call this the Baroda Sun. The sun is an excellent
representation of what our bank stands for. It is the single most powerful source of light and
energy its far-reaching rays dispel darkness to illuminate everything they touch. At Bank of
Baroda, we seek to be the sources that will help all our stakeholders realize their goals. To our
23

customers, we seek to be one-stop, reliable partners who will help them address different
financial needs. To our employees, we offer rewarding careers and to our investors and business
partners, maximum return on their investment. The single-colour, compelling vermillion palette
has been carefully chosen, for its distinctiveness as it stands for hope and energy. We also
recognize that our bank is characterized by diversity. Our network of branchesspans
geographical and cultural boundaries and rural-urban divides. Our customers come from a wide
spectrum of industries and backgrounds. The Baroda Sun is a fitting face for our brand because it
is a universal symbol of dynamism and optimism it is meaningful for our many audiences and
easily decoded by all. Our new corporate brand identity is much more than a cosmetic change. It
is a signal that we recognize and are prepared for new business paradigms in a globalised world.
At the same time, we will always stay in touch with our heritage and enduring relationships on
which our bank is founded. By adopting a symbol as simple and powerful as the Baroda Sun, we
hope to communicate both.

BOB ETHICS
Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda survived the crisis,
mainly due to its honest and prudent leadership. This financial integrity, business prudence,
caution and an abiding care and concern for the hard earned savings of hard working people,
were to become the central philosophy around which business decisions would be effected. This
cardinal philosophy was over the 94 years of its existence, to become its biggest asset. It ensured
that the Bank survived the Great War years. It ensured survival during the Great Depression.
Even while big names were dragged into the Stock Market scam and the Capital Market scam,
the Bank of Baroda continued its triumphant march along the best ethical practices

Careers at BoB
Bank of Baroda believes in the talent and skill of its human capital, understanding that strong
skill sets provide a competitive edge. The Bank is looking for people who:

Have a strong inclination for Marketing, Relationship Management and Business

Development
24

Become expert practitioners, with sound job knowledge

Demonstrate leadership potential

Have sharp decision making abilities

Display strong administrative skills

Are willing to change with the dynamic banking environment

Show responsiveness to the needs of the bank

Build the aptitude to communicate effectively

The bank hires from a diverse variety of educational backgrounds. With graduates in
science, commerce, engineering and business administration in its workforce, an
environment of diversity is created among its employees.

Joining BoB
Employees are recruited as either a clerk, or an officer, depending on their demonstrated ability
at the entry level.
Clerk: A clerk is the face of the bank - a pivotal point of contact for customers. The typical role
of a clerk is to build long term relationship with customers. He handles basic customer financial
queries and services like balance enquiry, pass book printing and payment and receipts of cash.
He also handles data entry of customer information and other financial transactions.
Officer: A bank officer is senior to a clerk, and is bestowed with higher authorization and
signatory powers. An officer can serve the bank in various capacities, depending on his place of
posting and his seniority. Roles reside in branches, administrative offices, and processing centers.
25

There are two types of officers Generalists and Specialists. While generalists typically take on
general banking roles, specialists take on roles in certain specific areas (eg: HR, IT, Law,
Planning, Finance, Security, and Marketing)
Recruitment channels

IBPS from time to time announces the common written exam for all the 19 Public Sector Banks
(PSBs) and IDBI bank. A detailed advertisement regarding the Age, Educational Criteria and
other qualifications or criteria required to apply for Common Written Exam (CWE) is published
on www.ibps.in and in leading newspapers. One who aspires to join any of the PSBs has to
qualify in the Common Written Exam (CWE), which is specific to the state. Candidates who
qualify in Common Written Exam (CWE) are subsequently called for Common interview which
is coordinated by IBPS. Candidates are asked to submit their preference order of banks.
Candidates successful in both the written exam and interview are

listed in merit order.

Depending on the vacancies in each bank of ones preference, an offer is made to candidates by
the appropriate bank.
Recruitment is also done directly through Baroda Manipal School of Banking.
Lateral Recruitment: The bank recruits officers at the lateral levels also, viz. Scale II, Scale III,
etc., based on requirements that arise from time to time. Eligibility criteria to apply for these
posts depend on the grade/scale for which the recruitment is going on, and will be declared on
the website and in leading dailies.

Career paths

26

Fig 2. Career Paths at BoB

The Bank recruits employees at the sub-staff, clerk, and officer cadres. Promotion exercises are
carried out annually, providing opportunities for growth within the bank.
The officer cadre is divided into 7 distinct scales, which represent the junior, middle,
senior, and top management of the organization. If you are among the top performing officers in
the bank, you may be bestowed with tremendous responsibility (like charge of a branch) even at
the junior level. The extent of responsibility is ramped up with seniority. Below are indicative
roles at various levels of seniority:

Junior Management:
Branch head of a small branch, officer in charge of a department in a branch, officer in an
administrative office
Middle Management:
27

Branch head of a medium sized branch, Manager in charge of a department in a branch or

administrative office
Senior Management:
Branch head of a large branch, Manager in charge of a large department in an administrative
office, Deputy Regional Manager for a region in the bank
Top Executive:
Branch head of an exceptionally large branch, Regional Head, Deputy Zonal Head, Zonal Head,
Corporate Functional Head/second in line.

ORGANISATIONAL STRUCTURE OF BANK OF BARODA

28

CHALLENGES FACED BY BANKING INDUSTRY

29

Here are the ten challenges that the HR function in India faces:
1. The first and foremost challenge that HR function in India faces is to convert the
abundant population pool into useful human resource.
2. Training and development of human resource to match ever changing industry demands
requires HR to develop new and innovative ideas that suit individual as well as industry
criteria.
3. Employee motivation and satisfaction is another area of concern for the HR today. In
order to reduce attrition, HR needs to realize that monetary needs are not the only drive
for an individual and that a sense of Belongingness must be imbibed in employees.
4. With the increase in number of job options available nowadays, the HR function of an
organization must take care that they hire those people who believe in long-term
commitment to the organization. The HR then must take up the challenge of retaining
them by developing retention techniques like Holiday plans fun-at-work etc.
1. Because of cutthroat competition, HR in India also faces the task of building competitive
advantage for the company over national and international competitors.
2. The growing importance that companies are nowadays giving to cost-cutting has posed
HR with the challenge to minimize expenditure on HR not compromising on the
productivity.
3. HR also faces the challenge of creating a balanced organization that originates from
mergers and acquisitions
4. HR needs to assimilate those policies that are mutually agreeable to the companies being
merges as well as profitable for the new organization.
5. Globalization poses HR with challenges such as expatriation and repatriation. HR needs
to train employees that leave their nation for fulfilling a foreign assignment. It also needs
to provide such employees with adequate moral support and assure them of job security
on their return.
6.

With multinational organizations on the rise, HR needs to focus on issues such as crosscultural training so that problems that can arise because of differences in international
professional values can be diminished.

MEETING HR CHALLENGES:
30

The banking sector has been growing at a very fast pace in India not only in the terms of its size
but also in terms of the services being provided. With banks reaching the remote areas in the
country one can anticipate positive things like financial aid to farmers and increased financial
awareness.
However, with the increase in size and activities of banks, the number of banks in private sectors
has also increased thereby posing challenges like cost-efficiency, technological advancement,
and credibility related issues. The task before the HR is to develop strategies that help banks in
gaining competitive advantage and encourage innovation in its products and services.

MANAGING HUMAN RESOURCE

Considering the above HR challenges which our Indian banking industry is facing, we can
manage the human resources by proper Planning like
Hiring the right person for the right job
Retaining and Developing
Managing people/ conducting exit interviews
HIRING THE RIGHT PERSON FOR THE RIGHT JOB
In assessing whether the "right person" has been selected for the "right job", the most prominent
theoretical concept that emerges is the concept of "fit".
-environment fit discusses two types of fit that emerge as the most prominent types of fit: person
-job fit and person
-organization fit. In pursuing person-job fit, companies seek to match the job holder's
knowledge,skills and abilities to the requirements of the job. Companies can ascertain person
-organization fit by focusing on how well the individual fits with the culture or values of the
company and the individual's capacity to work well with other company employees.
Banks will have to plan for the following:
A steady, carefully calibrated recruitment programme
As rapid technological changes transform business
continuous skill up
-gradation.
A new generation of the workforce will be working alongside an older generation as a team.
Banking, in my opinion is a team work and this new situation will require cultural adjustments
and therefore, change management.

RETAINING AND DEVELOPING EMPLOYEES

We may be able to get the most suited people for our work but then the challenge is to retain
these people and to develop them. There are several dimensions to this issue such as training/ re
skilling of employees, performance measurement, promotion policy, transfer policy, talent
management, communication, etc. I will like to discuss some of them.

TRAINING AND DEVELOPMENT

31

With drastic growth of banks it calls for efficient and well trained staff members to handle/deal
with the consumer needs. Banks are shaping up as financial hub for their clients to grow in size
and well recognized in the world market.
To pull consumers banks are offering traditional with advance services like SMS banking, ATM,
internet banking,banking, demat. So we can say that it caters to the need of the bottom to the
highest class of society providing something to everyone. Universal banks have become modern
days supermarket extending almost every facility of banking under one roof.
Banks like Bank of Baroda are conducting Grooming and etiquettes programmes for front-line
employees and also for employees selected for overseas posting in order to improve their service
levels and qualitative interaction with customers and various stakeholders better.
SEED (Self efficiency and effectiveness development) programme being run for frontline staff of
the Bank in order to improve their service skills and servicing efficiency.

PERFORMANCE MANAGEMENT
Banking service is one sector where a great degree of attention is being paid to performance
appraisal system. Several of the nationalised banks have changed their performance appraisal
system or are in the process of changing them.
In most of the banks that follows the traditional system, their officers are being assessed on the
following characteristics:
General Intelligence
Job Knowledge
Initiative and resourcefulness
Supervision
Business Capacity
Ability to assess sound
Business propositions
Dependability
Relationship with junior & senior colleagues
Relationship with public
Conduct, manners, Managerial ability
Failures that attracted issue of warning by superiors
Several of the banks also have self appraisal as a part of performance appraisal, although mostly
such self appraisal is more of a communication of achievements. A fair, transparent and objective
mechanism for performance management is a must for all banks because an effective
Performance Management System is the key to talent management and succession planning. RBI
is shortly going to introduce a new Performance Management System that will work on goal
setting, potential appraisal of performers and developing a talent pipeline. With all these changes
we are also going to face major challenges on the Talent Management front. In coming times, the
work force will get complex and there will be a need to juggle a wide variety of people with
varied needs and preferences, resulting in an array of
relationships between the organization and those who work for it. Peter Drucker had, more than a
decade ago, flexible schedules, contract arrangements, virtual teams, etc.

32

SYSTEMS/PROCESS
The effectiveness of any efficient HR system/ process is that it should be objective and
Transparent. These traits are essential for the manpower to repose trust in the organizations
systems/ processes. No HR function can be effective if it does not enjoy the trust and confidence
of its constituents. Two key stakeholders in the HR management process are Board/ Senior
Management and Unions. How much time do Board members spend on HR
Related issues?
Structurally, it is important that Board/ senior management is actively involved in HR matters
involving all its manifestations. Organized employee unions are an important part of the
democratic process and form an effective channel for communicating with employees down the
line. It is important to involve them in the HR process without allowing them to have an
overbearing influence.
HRD climate in an organisation is reflected by its role, clarity, openness, trust, teamwork,
proactive orientation, planning of development of every employee etc. HRD climate and
processes are dependent on personal policies, topmanagement styles, investments on HRD, top
management commitments, line managers interest, previous culture, etc.
To sum up the relationship between human resource development mechanism and human
resource development processes and climate can be explained asHRD mechanisms are most useful instruments to develop a healthy HRD climate.
HRD instruments are used to develop desired Human resource development processes.
HRD experts use the term OCTAPACE to express the important features of HRD climate
The most important aspect of organizational culture is the values it practices. Eight values may
be examined to develop the profile of an organizational culture that is called
OCTAPACE It means OPENNESS, CONFRONTATION, TRUST, AUTHENTICITY,
PROACTIVELY, AUTONOMY, COLLABORATION, AND EXPERIMENTING.

IMPORTANCE OF COMMUNICATION
Communication is what makes the world spin. It's how information is shared, news
is spread and lives kept safe.Effective communication has an incredible impact on the
productivity of Human Resource Management (HRM)because without it there are frustrated
employees, confusion in the workplace and unhappy customers in the end. From hiring and firing
to developing and enforcing company policy, communication is what a good HRM department is
built on.
The primary function of effective communication in HRM is to empower the employees. With
the proper information, a rewards system and effective policies in place, employees feel
empowered and motivated to do their jobs to the best of their ability. Communication keeps
everyone in the know and dispels any wrong information or Confusion.
Communication Policy of RBI
The following broad guidelines and operational practices for communication have evolved from
the objectives of the organization and goals of communication
The Reserve Banks communication should contribute towards achieving the overall objectives
of transparency, credibility and accountability.
It should always endeavor to place all sustainable information in the public domain so as to
discourage individual seeking of information.
33

Information, especially market sensitive information, should be released in a timely and

equitable manner.
Communication should primarily be focused on issues of importance to central banking.
The Governor and the Deputy Governor in charge of monetary policy are the only
spokespersons on issues relating to monetary policy and the exchange rate.
Deputy Governors are the spokespersons in their respective areas of responsibility;
Executive Directors and heads of departments speak only with explicit authority from the
Governor/Deputy Governors;
Regional heads clarify local issues;
The head of Department of Communication is the general spokesperson of the Reserve Bank;
All press releases except those relating to regional matters which are rare are centrally issued by
the Department of Communication;
All information in print form or on the websites simultaneously placed in public domain.

MANAGING SEPARATION
In recent years, with the high levels of attrition in the service sector, it has become imperative for
firms to have astructured separation plan for orderly exits of employees. Of course, the concept
of pink slips or involuntary exits are another matter altogether and involve some bitterness that
results because of the employee losing his or her job. In conclusion, it is our view that employee
separations must be handled in a professional and mature manner and though attrition is a fact
that concerns everyone in the industry, once an employee decides to leave, the separation must
be as smooth as possible.
Role of HR manager in exit interview:
Discover the employees reason for leaving
Give positive attention to the departing employees in order to alleviate possible frustrations
and/or negative attitude toward the organization
Allow departing employees to have a voice about what their work experience was like Receive
valuable feedback from departing employees about compensation, working conditions,
management, and the culture of the organization
Explore areas of the departing employees most serious concerns, and record details of what
they enjoyed most
Departing employees have an opportunity to transfer knowledge and experience to a successor
or replacement; may also brief a team on current projects, issues and contacts
Chance for departing employees to give constructive feedback, and to leave on a positive note,
with good relations and mutual respect.

34

SOME OTHER HR PRACTICES AND BENEFITS GIVEN TO

EMPLOYEES:
GRATUITY
Bank of Baroda provides for gratuity to all employees. The benefit is in the form of lump sum
payments to vested employees on resignation, retirement, death while in employment or on
termination of employment of an amount equivalent to 15 days basic salary payable for each
completed year of service. Vesting occurs upon completion of five years of service.

SUPERANNUATION
Employees of the Bank, above a prescribed grade, are entitled to receive retirement benefits
under the Banks Superannuation Fund. The Bank contributes a sum equivalent to 13% of the
employees eligible annual basic salary(15% for the Managing Director, Executive Directors and
for certain eligible to insurance companies, which administer the fund. The Bank has no liability
for future superannuation fund benefits other than its contribution, and recognises such
contributions as an expense in the year incurred, as such contribution is in the nature of defined
contribution.

SHORT TERM EMPLOYEE BENEFITS

In Bank of Baroda the undiscounted amount of short-term employee benefits, such as medical
benefits, casual leave etc. which are expected to be paid in exchange for the services rendered by
employees are recognized during the period when the employee renders the service.
The Bank operates a Provident Fund scheme. All eligible employees are entitled to receive
benefits under the Banks Provident Fund scheme. The Bank contributes monthly at determined
rate (currently 10% of employees basic pay plus eligible allowance). These contributions are
remitted to a trust established for this purpose and are charged to Profit and Loss Account.
The Bank provides for pension to all eligible employees. The benefit is in the form of monthly
payments as per rules and regular payments to vested employees on retirement, on death while in
employment, or on termination of employment. Vesting occurs at different stages as per rules.

35

NEED AND SIGNIFICANCE

The need of this study arises to help the HR managers of Bank of Baroda to understand the HR
Best Practices of the Bank. The study focuses on three classes of employees of Bank of Baroda
namely: Clerks, Officers and Sub-staff in its various branches across the Chandigarh region to
understand the needs of employees on the basis of 17 determinants of HR Practices.
With the help of this study, the managers can decide what HR policies can be
implemented or improved in accordance with the requirements of its employees to increase their
productivity.
This study fulfills the purpose of finding the limitations in the way of making Bank of
Baroda an HR Practitioner and also spells out recommendations as to what BoB can do
differently to become an Best HR Practitioner in Indian Banking industry.

STRATEGY
1. Organization has a process of evolving HR strategy, policies and procedures
2. Hr Strategy is aligned with Business strategy

STAFFING
1.
2.
3.
4.
5.
6.

Job analysis is carried out; job description and specification are documented.
Job description and specification are judiciously used while recruiting.
Proper selection process and selection criteria are defined and used while selecting.
Employees are transitioned in and out of positions through systemic process.
All staffing process are institutionalized and practiced.
Proper background check of the employees are done

COMMUNICATION AND COORDINATION

1. Required information is shared across the organisation.
2. Coordinated efforts are visible in all activities to be accomplished.
3. Mechanism or forum exists with org for individuals to raise their concerns.
4. Communication and coordination processes are institutionalized as a managed process.
36

5. There exists a process of knowledge sharing

WORK ENVIRONMENT
1. Physical environment and resources needed by the team to perform their tasks are made
available.
2. Work distractions are minimum.
PERFOMANCE MANAGEMENT
1. Performance objectives are jointly worked out and documented.
2. Committed tasks progress are monitored, guided and actions for improvement are
undertaken.
3. Outstanding performance is recognized and rewarded.
4. Performance mgt practices are institutionalized and performed as managed process.
5. Good rewards, recognition and incentive system exists for outstanding performance.
6. There exists an effective performance feedback system
TRANING AND DEVELOPMENT
1. Training need analysis activities are performed.
2. Individual receive their training as planned.
3. Individual development plan are discussed and opportunities are provided for
development.
4. T & D processes are institutionalized and practiced.
COMPENSATION
1. Compensation strategies are planned, executed and communicated.
2. Compensation is equitable relative to skill, qualification and performance.
3. Compensation is based on defined criteria.

COMPETENCY ANALYSIS
1. Work force competencies required to perform the activities are defined and updated.
2. Mechanism to track the competencies of individuals exists.
3. Competency based tasks allotments are done.
4. Organisation process exists to develop individual competencies.
CAREER DEVELOPMENT
1. Organisation offers career opportunities to the employees for growth.
2. Competency development and career development practices are institutionalized.
TEAM BUILDING
1. Team work culture exists in the organisation
2. Team developmental activities exist in the organisation.
3. Participative culture exists in the organisation.
4. Team decision-making process existin the organisation?
37

EMPOWERED WORK GROUP

1. Organisation believe in empowered work groups
2. Empowered work groups are delegated with responsibility.
3. The organisation practices encourage the development & performance of empowered
work groups.
MENTORING
1. Established, institutionalized mentoring programme exists in the organisation.
2. Mentors regularly provide guidance and support to individuals and teams
INNOVATION
1. Organisation has a mechanism for supporting continuous improvement and innovation.
2. Organisation has a practice to identify and evaluate on any improved practices
3. Improved practices or technologies are deployed with organisation.
HRIS
1. HR is automated using the HRIS systems.
HEALTH CARE
1. Health Care benefits to employees are at par with the industry.
2. The process and procedure to avail the benefits are simple.
RETIREMENT BENEFITS
1. Good retirement benefits exist in the organisation
2. It is at par with the best in the industry
STATUTORY COMPLIANCE
1. Organisation complies with all statutory rules and regulations of state and Centre.

38

RESEARCH METHODOLOGY
It is very difficult to appreciate and understand the human resources development unless recourse
is made to the interview method.
A separate questionnaire will be prepared for this purpose to draw upon their
rich personal opinions, experiences etc, which cannot find a place in the reports and records.
Interviews will also be conducted with the trainees who underwent training and management
development programme, their superior, subordinates and peers in order to ascertain the impact
of these programmes on job performance and behavior.
Another method that will be adopted for this study is the collection of secondary data from
various public sector banks and private sector banks.
Various appropriate statistical techniques will be employed for analyzing the data. The statistical
analysis and data will be supplemented by the information collected through interviews and
personal observation so as to derive effective and meaningful conclusions.
The data and information will be collected from various sources. Factual data will be collected
from the annual reports of the banks; staff training colleges, house magazines and other records
of the banks, reports and other records of the trade unions.

OBJECTIVES OF THE STUDY

1.
2.
3.
4.

To enquire into the HRD philosophy of banks

To study the organizational and HRD climate in the banks
To enquire into the practices of various HRD techniques, and
To study the outcomes of human resource development for the banks, individual
employees, groups and the society at large in both private as well as public sector banks.

In the fulfillment of these objectives, a close study is made on all important areas of human
resource development in banks. The position prior to nationalization is also studied with a view
to appraise the changes better.

39

H
R
Trust vs
Distrust

Proactive vs Reactive
Culture

Motivat
ion

Performance
Appraisal

Compens
ation

Organisatio
n's

Training and
Development

Team
Work

Job
Characteristic
s

Incetive
Practices

Environm
ental

HR
Planning

Recogni
tion

Coworkers

Abilit
y
Organisatio
nal

Gro
wth

Fig 3. Conceptual Model

Instruments Used: The study has been conducted with the help of a close ended, self
administered questionnaire. The questionnaire consists of 17 determinants of HR Practices with 4
items for each determinant. The responses of the employees of Bank of Baroda are recorded on a
5 point Likert Scale with values as given below:
Table 1
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree

1
2
3
4
5

40

The determinants used for HR Practices has been taken from various standard questionnaires and
have a reliability coefficient of more than 0.8. Hence this ensures the reliability of the
questionnaire.
Sample: The sample that has been used to conduct this study is a random sample of 20
employees of Bank of Baroda in Chandigarh and. The sample represents the population under
study fairly and is without bias.
Data Collection and Data Analysis: The data for the respective study has been collected in two
forms:
a) Primary Data: It is the data collected from the employees of Bank of Baroda in the form
of their responses to a self administered HR Practices questionnaire.
b) Secondary Data: This data has been sought from bank of Barodas website and also been
provided by the companys HR department to study the history, products & services of
the company and also to study the existing HR policies of the Bank.
For data analysis, SPSS 15.0 software has been used.

LIMITATIONS
There were certain limitations to the study which are as discussed below:

Current study only took sample from some employees of Regional Office, Chandigarh
region and hence cannot be apply to rest of the employees of Bank of Baroda. The scope
of the study is thus limited.

41

DATA ANALYSIS
The data that has been collected by the help of a questionnaire (given in Annexure I) was then
analysed by using the SPSS 15.0 software. The first step in analysis was to define the variables in
the SPSS variable view sheet (Annexure II). Next, the data was filled in the data sheet view
(Annexure III).
The data analysis has been done in two steps. First step was to analyze the demographic
data that has been collected by the use of 5 demographic variables given in the questionnaire.
These demographic variables show the various characteristics of the sample that has been
selected and thus also indicates the demographic characteristics of the employee base of Bank of
Baroda. The second step of the analysis included the analysis of responses to 17 determinants of
HR Practices . In this step, the data is divided into three sets of Disagree, Neutral and Agree
where these indicates that employees are dissatisfied, neutral or satisfied respectively with the
given determinant.
A) Demographic analysis
Various demographic variables that had been studied are Age, Gender, Educational Qualification,
Designation and Monthly Income.

42

Age
Less than 30
30-40 years
41-50 years
51-60 years
more than 60

Fig 4. Age

It can be seen from the above pie chart that majority of the employees in the bank belong to age
group of 31-40 years, followed by 21-30 years age group. The employees of age group Above 40
closely follows. Thus we can conclude that the average age of an employee in Bank of Baroda is
relatively young.

Gender
Male
Female

Fig 5. Gender
Out of a sample of 10 randomly selected employees, 4 were females and 6employees were male.
This indicates a fair mix of gender diversity among the employees of bank of Baroda. We can

43

accurately conclude from this set of data that Bank of Baroda is preferred almost equally by both
the genders for employment.

Educational Qualification
Bachelor
Master
Doctor

Fig 6. Educational Qualification

Majority of employees in Bank of Baroda are graduates (58%), closely followed by postgraduates (42%). During my interaction with the employees, a few P.hd holders were also found
working in Bank of Baroda in its various branches.

44

The analysis of data with respect to each determinant is given below:

1. Motivation

Fig 9. Motivation
The above bar chart shows that majority of the employees (almost 65%) are highly motivated to
work at Bank of Baroda. It indicates that the leadership at BoB is very effective and employees
are encouraged by their supervisors to do better. Also, the dissatisfaction levels are almost
negligible which indicates another good sign and high commitment of employees towards their
jobs.
2. Compensation

45

Fig 10. Compensation

The above set of data shows that employees at Bank of Baroda are not very satisfied with the
compensation that they get for their work. Around 42% of the employees think that they are not
rewarded fairly for the work that they do. This shows high levels of dissatisfaction as far as
compensation is concerned.
3. Organisations Structure

Fig 11. Organisations Structure

46

It can be concluded from the above bar chart that employees are satisfied with structure of the
organisation. The communication between seniors to subordinates is very effective at BoB.
Although, the above data shows the accumulated result of all the items included under this
determinant, it was observed that employees are not particularly happy with the state of bottomup communication in Bank of Baroda.

4. Job Characteristics

Fig 12. Job Characteristics

This determinant included various job characteristics like autonomy at work, job clarity,
challenges at work etc. The above data shows that employees are satisfied with their job
characteristics. It was a good experience to know that people at bank of Baroda are given enough
space and autonomy to take decisions concerning to their work and are often provided with
challenging jobs that keep their motivation levels high.
5. Environmental Factors
47

Fig13. Environmental factors

There is a mixed response with respect to various environmental factors. The environmental
factors include working conditions, near proximity of all the resources required for the job and
flexibility of company to accommodate other commitments of the employees. Around 34% of the
employees are dissatisfied with the environmental factors and does not feel comfortable in their
work environment. Although majority of employees (around 58%) feel satisfied with the
environmental factors.
6. Recognition

48

Fig 14. Recognition

Above set of data shows a mixed response as far as recognition at work is concerned. Almost
half of the employees that participated in this study feel that their efforts are not rewarded and
recognized as they should be. Hence there is general dissatisfaction with company policies
towards recognition of employees.

7. Ability Utilization

Fig 15. Ability Utilization

Majority of employees (around 70%) feel satisfied and agree that their potentials and abilities are
properly utilized by the company. Hence, the company makes good use of their skills and their
abilities are also well aligned with companys requirements. There is a slight dissatisfaction
though among 10-15% of the employees which contributes to the fact that employees think that
there is no enhancement in their knowledge by doing their job.
8. Growth opportunities
49

Fig 16. Growth opportunities

Bank of Baroda provides clear career paths and ample growth opportunities to its employees.
The same is reiterated in the above data which shows that around 67% of employees are satisfied
with the growth opportunities provided to them by Bank of Baroda
9. Organisational Culture

Fig 17. Organisational Culture

The culture at bank of Baroda is highly agreeable to its employees. The data shows that almost
all the employees are satisfied. The Morning Prayer, healthy relationships among co-workers etc
50

formulates a conducive culture to work in. Although few employees could not make their mind
on whether they firmly believe in companys vision and mission and gave neutral responses.

10. Co-Workers

Fig 18. Co-Workers

Employees at Bank of Baroda share very good relations with each other. There was no kind of
animosity seen among the employees. They work in close co-ordination with each other. Around
80% of the employees are highly satisfied with their co-workers and agree that their co-workers
attributes to a huge reason of their job satisfaction. Although there was some neutral and
dissatisfied responses viewed in an item where employees were asked whether company has any
policies that keep the conflicts among co-workers at bay.
51

FINDINGS:
The various challenges that Bank of Baroda faces in its way to become an BEST HR
PRACTITIONER as indicated by the current study are:

Employees feel dissatisfied with the compensation that they are provided for their work.
They do not reckon that their efforts are fairly rewarded.

The bottom-up communication is slightly putting employees off because they do not find
it very easy and hassle free to communicate with their superiors in certain cases. This can
also be attributed to the fact that top-down communication is very effective in Bank of
Baroda and in comparison to that, Bottom-up communication is not as effective.

Some of the employees do not find the working conditions at Bank of Baroda to be very
conducive to them and may like a few changes.

Apart from monetary compensation, employees also feel that they should be recognized
for their work and excellence in other non-monetary ways also. But they are not provided
any such recognition for their extra efforts.
52

The companys vision and mission does not align with that of its employees (in a few
cases).

All the above discussed challenges have been directly derived from the data collected from the
employees through the questionnaire. It also includes the cognizance and revelations observed
during the time spent with employees of Bank of Baroda while the period of internship.

RECOMMENDATIONS AND SUGGESTIONS

The recommendations proposed here are based on text and theory studied during the time of
internship as well as on the basis of observation of best industry practices. These
recommendations are:

BOB needs to increase its number of ATMs in the country. Especially in metropolitan
cities. This is because today people dont like standing in queues for withdrawing money.

BOB is not very much liked by the youths of the country. The middle aged and old aged
people use it more. Therefore BOB should now concentrate on young generation. It has a
huge market in them.

Efforts can be made to make the compensation of employees at par with those in the
industry. Apart from monetary benefits, some non-monetary benefits should be provided
to the employees so that they feel fairly rewarded for their efforts and feel motivated to
work better. Such non-monetary rewards may include public appreciation at the time of
53

company meeting or during Morning prayers of the employees doing food work. Apart
from this, managers can keep their employees motivated by choosing an employee of the
month who puts extra effort in the work. This way, employees feel rewarded for the work
that they do. Company must also make policies for providing good PF, bonus and raises
to the employees.

The banking sector has grown from a few institutions primarily involved in deposit
acceptance and trade finance into a complex multi player markets where large number of
commercial banks, financial institutions and specialized banks are operating with various
product activities.

Like many other organized sectors, banking requires multi layer manpower for its various
requirements of professionals and support staff. The range may require reasonably
educated security guards on the one hand and a highly educated and trained professional
as head of corporate finance. With liberalization of activities within the banking sector,
for example, more emphasis on consumer and house finance and personal loans, etc
Banking has turned itself into a more market based business where banks have expanded
their reach more to customers door step in a big way making banking more practical.
This has further highlighted the need for proper development of man power to run banks
efficiently.

Smart banks have realized this need and have taken steps to keep their workforce
motivated through proper encouragement like man of the month award, repeat gettogether, conferences, sports events, dinners, company sponsored travel, reunions.etc.

In spite of all these facilitations there still exist several lacunas in the HRM practices in
banking industry. Some of the specific suggestions based on survey of literature as well
as the group discussions and survey are given here under.

54

There should be a balanced compromise between organisational need and individual

need. Total insensitivenessto individual preference gives rise to frustration at some point
of time, which as a consequence has a real damaging effect on the organisational growth
itself.

While there must be rewards for performance, non-performance must be punished/

reprimanded. Promotions must be only on merit.

There must be uniform, impartial and balanced employee performance review

system.This system in fact needs a total review.

Enthusiastic and pleasant behavior of staff to the customer is necessary.

There must be a clearly defined system of succession planning and career growth
planning in banks.

Attitudinal changes are required at the top level.

Human resource Balance Sheet should accompany financial statements.

In order to become HRD conscious, the Public Sector Banks should allow independent
functioning of HRD section, where the top person should be himself a good successful
banker, a real HRD person free from any biases.

More openness, transparency in personal matters, high value of human dignity, people
oriented management system, creating belongingness and trust, two-way communication.

Banks should have a system, whereby the training needs of an employee are identified
and are duly fulfilled at everystage of career growth.

Have special R & D wings in HRD Department for ongoing in house & external research
development, review and implementation of HRD policies.

55

There should be award schemes administered by prestigious organisations and Govt.

agencies for best HRD policies & Practices amongst Public Sector Banks.etc

To overcome the dissatisfaction of employees from their working environment,

unanimous suggestions can be taken from employees to find what changes are required
by the employees. Employees should be allowed and encouraged to bring their personal
stuff to their work desk to make it personalized and more work-friendly for them.

Companys vision and mission should be communicated well and discussed with new and
old employees to take employees along with the companys thinking and to align their
goals with the companys goals.

Training should be provided to employees from time to time to enhance their knowledge,
experience and personal growth so that they feel satisfied with their jobs and find that
their profession is helping them grow as an individual too.

Efforts should be made to ease the bottom-up communication. Managers and supervisors
should take timely feedback from their subordinates on all concerned issues.

Although there is a very cordial and healthy relationships among co-workers in Bank of
Baroda, company must also make certain policies to keep conflicts among employees at
bay. A short, crisp and effective grievance procedure should be provided to employees
when any conflict arises.

56

CONCLUSION
From the data analysis given in the previous step, various conclusions have been derived which
are of importance to the Human Resource department of Bank of Baroda. The demographic
analysis shows that the employee base at Bank of Baroda is diverse with people of various age
groups and both genders working in almost equal proportions and contributing to companys
growth.
Overall, from the analysis, it can be said that employees at bank of Baroda are fairly Best
Practices. These factors present various challenges in front of the Bank of Baroda and basically
its HR department that can be dealt in a better way to increase the HR Practices for its
employees and hence, increase productivity and companys competitiveness. These challenges
are discussed below along with some recommendations on how to tackle these challenges to
make Bank of Baroda an Best HR Practitioner for its current as well as future employees.
To conclude, Organizations all over are rushing to implement the latest ideas on management,
sometimes to the point of overuse. The major challenge now for banks as well as any other
organization is therefore how to develop their social
Developing the individual or human capacity is an integral element of building capacity and, in
fact, capacity building initiatives are now increasingly becoming almost an index of institutional
quality. Taking the banking industry to the heights of excellence, especially in the face of the a
forehead detailed emerging realities, will require a combination of new technologies, better
processes of credit and risk appraisal, treasury management, product diversification, internal
control and external regulations and, not the least, human resource

57

REFERENCES

http://en.wikipedia.org/wiki/Bank_of_Baroda
http://www.bankofbaroda.co.in/bbs/index.asp
http://www.bankofbaroda.com/careers_new/ISBOB.asp
http://www.bankofbaroda.com/careers_new/Careergrowth.asp
http://www.bankofbaroda.com/careers_new/WhyBank.asp
Itika, Josephat Stephan (2011) Fundamentals of Human Resource management, pg 15-16

http://www.scribd.com/doc/33783230/Hr-Practice-in-Bank-of-Baroda

http://www.jba.tbs.tu.ac.th/files/Jba098/Article/JBA98Chaisomphol.pdf

58

ANNEXURE-I

QUESTIONNAIRE TO STUDY HR BEST PRACTICES

ACROSS THE BANKING INDUSTRY-BANK OF
BARODA
HR Planning
1. Bank forecasts personnel requirements on timely basis.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
2. Bank have spent a great amount of money on selecting staf
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
3. A large number of people are involved in HR Planning in Firm
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
4. Structured and Standardized interviews have been used in the bank
a. Strongly Disagree b. Disagree c. Neutral
d. Agree
e. Strongly Agree
Incentive Practices
1. Bank have favorable incentive practices to encourage employees to achieve
the firms objective
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
2. Bank has very fair incentive Practices to encourage employees to achieve
banks objective
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
3. Bank has the incentive practices which really recognizes people who
contribute most to the bank
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
Team Work
1. Bank always gets Team opinion and ideas before making any decision.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
2. Bank focuses on groups to solve problems.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
59

e. Strongly Agree

3. Teams are extensively provided with sufficient power and resources to solve
problems.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree

Training and Development

1. Is there a systemic process of carrying out training need analysis?
a. Yes strongly agree
b. Sometimes
c. Occasionally
Never

d.

2. Is the training of individuals planned and intimated to individuals well in

advance?
a. Yes strongly agree
b. Sometimes
c. Occasionally
d.
Never
3. Do the employees sent on training as planned?
a. Yes strongly agree
b. Sometimes
Never

c. Occasionally

Performance Appraisal
1. Bank uses performance based appraisal
a. Strongly Disagree b. Disagree c. Neutral d. Agree
2. Bank uses employees self-rating on Performance
a. Strongly Disagree b. Disagree c. Neutral d. Agree

e. Strongly Agree

e. Strongly Agree

3. Superiors in firm frequently discuss performance with subordinates.

a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
Proactive Culture vs Reactive Culture
1. Decision making is late to take any action and in conservative manner.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
2. Decision making is fast to take any action and in innovative manner.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
3. Bank is unresponsive to change in business environment.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
4. 3. Bank is responsive to change in business environment.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
Trust vs. Distrust
1. Employees only understand their own behavior
a. Strongly Disagree b. Disagree c. Neutral d. Agree
2. Employees only understand each others behavior
60

d.

e. Strongly Agree

a. Strongly Disagree b. Disagree c. Neutral d. Agree

e. Strongly Agree

3. Employees care about their own responsibilities only.

a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
4. Employees feel sense of responsibility for each other
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
Motivation
a. I feel encouraged to come up with new and better ways
of doing things
b. The leadership at BOB keep me motivated to perform
better
c. I feel genuine commitment to my work
d. Supervisors encourage me to my best
Compensation
a.
I am fairly compensated at my job
b.
I am rewarded for the quality of my eforts
c.
My pay is at par with the industry
d.
Bank provide good PF, bonus, raises and other such
schemes for betterment of my financial well-being
Organizations Structure
Employees are kept informed on all issues concerning
them in BOB
b.
There is good communication from managers to
employees in BOB
c.
There is good communication from employees to
managers in BOB
d.
I can easily interact with my superiors without any hassles
a.

Job Characteristics
a.
My work is challenging and very engaging
b.
I am given autonomy to perform my duty and make
decisions
c.
My job makes a diference in lives of others
d.
My roles and duties are clear to me
Environmental Factors
a.
Working conditions at BOB are conducive to me and my
work
b.
I always have all the required resources to do my work
c.
I feel comfortable in my workplace
d. Bank is flexible to accommodate my family responsibilities
Recognition
a.
My eforts are recognized by supervisors
61

b.
c.
d.

I get good non-monetary benefits for my job

I feel sense of self esteem by doing better at work
because of the recognition I get
My work provide me a better social status

Ability utilization
a. My job makes good use of my skills and abilities
b. I have the training I need to do my job
c. My qualification and abilities are aligned with Banks
requirements
d.
My job enhances my knowledge and skills and
provides good
experience
Growth Opportunities
a.
I am given ample training for personal and professional
growth
b.
Career paths are properly defined at BOB
c.
BOB provides good opportunities for career progression
and promotions.
d.
I get regular annual raise
Organizational Culture
a.
I feel happy working at BOB
b.
Culture at BOB encourage me to work better
c.
I firmly believe in Banks vision and mission
d.
I feel like I am a part of the company
Co-Workers
a. I share good relations with my colleagues
b. My co-workers are courteous and friendly with me
c. There is healthy and amicable environment
between employees
d. Banks policies keep conflicts among co-workers at
bay

Personal Information
Name: ______________________________________
Age: Less than 30
30-40
41-50
51-60
Sex: Male
Female
Education Level: Bachelor
Master
Others, please specify_____________
Seniority: __________ years
Contact Details:

62

more than 60
Doctor

Thank you very much indeed for your time and effort in filling this
questionnaire. I wish you good health and luck. I would like to inform you
that this questionnaire is anonymous. Your personal information will never
be disclosed to outsiders.

ANNEXURE-II
SPSS Variable view sheet

63

ANNEXURE-III
SPSS Data view sheet

64

PHOTO GALLERY
HR INITIATIVES

65

SAMAAN SAMAROH

66

HR TEAM OF BANK OF BARODA, REGIONAL OFFICE, CHANDIGARH

MS. MOHANTY DEVAHUTI (INDUSTRY GUIDE), MRS. SEEMA, MRS. RATIKA SOOD

67

FOUNDATION DAY CELEBRATION

68