TITLE PAGE

Effect of Career Management on Job Satisfaction in Banking Sector in India

Submitted to Lovely Professional University In partial fulfilment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION

Submitted by: Group No______ Sanskriti Jaya Jamwal Harpreet Kaur Pooja Vaid A03 A05 A07 A10

Supervisor: Miss Geetika Designation: Asstt. Prof.(School of Busines&Arts)

TABLE OF CONTENTS

CONTENTS NO. Chapter 1 Chapter 2 Chapter 3 INTRODUCTION LITERATURE REVIEW NEED AND SCOPE OF THE STUDY

PAGE

2.1 Need of the study 2.2 Scope of the study Chapter 4 Chapter 5 OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY

4.1 Research nature 4.2 type of data collection 4.3 Sample size 4.4 Sampling techniques 4.5 data analysis tool

REFERENCES:

Chapter I
INTRODUCTION Globalisation and reforming of the Industrial policies by Indian government has led Indian Business organisations to adopt and make changes in their business environment by adopting new strategies such as restructuring, merging, acquiring etc. With the increased competition and complexity of business due to globalisation, a major challenge faced by business organisation was to manage their employees. One of the challenges associated while managing employees was to understand and face the changing nature of Career Management, which is needed to maintain organisation growth. Traditional organisations that used to pay the salaries on the basis of employees seniority and designation have changed themselves by offering good salaries, rewards and incentives on the basis of performance and skills. Psychological contracts and bonds have been replaced by new career rules depending majorly on the situations, performance, skills and ability of an employee. Earlier Career Management was used to be a responsibility of the employer but with changing trends & environment, Career Management is required to be taken care by employees as they are been responsible for managing their own career. On the other hand, organisations are helping their employees to develop their skills to increase their marketability. Therefore, Career Management can be referred as the process through which employees become aware of their own interests, values, strengths and also weakness, obtain information about job opportunities within the company, identify career goals, establish action plans to achieve career goals. Career management is important from both employees perspective and the companys perspective. From the companys perspective, the failure to motivate employees to plan their career can result in short age of employees to fill open position, in lower employees commitment, and in inappropriate use of monies allocated for training and development

programs. From the employees perspective, lack of career management can result in frustration, feeling of not being valued in the company, and being unable to find suitable employment should a job change (internal or with another company) be necessary due to mergers, acquisitions, restructuring, or downsizing.

BANKING SECTOR IN INDIA The Banking Sector in India has always been one of the most preferred avenues of employment. In the current decade, this has emerged as a resurgent sector in the Indian economy. As per the McKinsey report India Banking 2010, the banking sector index has grown at a compounded annual rate of over 51 per cent since the year 2001, as compared to a 27 per cent growth in the market index during the same period. It is projected that the sector has the potential to account for over 7.7 per cent of GDP with over Rs.7,500 billion in market cap, and to provide over 1.5 million jobs.

HUMAN RESOURCE DEVELOPMENT IN BANKIING SECTOR IN INDIA The core function of HRD in the banking industry is to facilitate performance improvement, measured not only in terms of certain financial indicators of operational efficiency but also in terms of quality of financial services provided. The skill level, attitude and knowledge of the personnel play an important role in determining the competitiveness of a bank. Banks have to understand that the capital and technologyconsidered to be the most important pillars of banking -are replicable, but not human capital, which needs to be viewed as a valuable resource for the achievement of competitive advantage. The primary concern of the bank should be to bring in proper integration of human resource management strategies with the business strategies. It should faster cohesive team work and create commitment to improve the efficiency of its human capital. More than operational skills today's banking call for these `soft skills' to attend the needs and requirement of the customers at the counter. The need to adopt global best practices to financial sector regulation and supervision and adopt them to the domestic environment, places a premium skills and expertise of the bank human resources.

HR ISSUES IN THE BANKING SECTOR

The impact of globalization and privatization has affected the work culture of both the public sector and private sector banks. These are witnessing a fundamental shift in the work attitude and style due to open economy and increased competition. With the entry of new private sector banks and foreign banks, the public sector banks have been forced to adopt a new customer-centric work environment. And due to the reliability of the public sector bank private banks have to make certain changes to face the challenge received by the Public bank. These challenges faced by both private and private banks have arisen some of the HR issues in Banking Sector in India, they are:

Talent Acquisition: Majorly public sector banks are seriously affected by this problem because of resistance of Union on one side and existence of a mammoth organization like Banking Services Recruitment Board (BSRB) for so-called common entrance process. There is very little flexibility and freedom for such banks to attract right talent from market place at market price.

HR policies are prone to generalization of skills and expertise in handling the banking business. Talent Management: Talent management involves the following steps:

1. Placement of right person at right place 2. Induction of human resource in the organizational culture 3. Talent recognition 4. Talent appreciation & feedback mechanism 5. Creation of congenial climate for talent nurturing

Unfortunately, many of the above issues lack serious consideration in public and private sector banks. HR in the public service banking bank is still considered as a support service and not integrated with its strategic vision, mission and goals /

objectives. As a result, placement of personnel in a given place is primarily driven by the criteria of vacancy fulfilment and nothing beyond that.

Talent development: Apart from having right climate, the other important issue that one looks into before giving a medium to long-term commitment for a career, is satisfaction arising from job enrichment /rotation, getting recognition for doing a god job, expectation of performance-based payment, flexibility in terms of job hours & other related aspects, both monetary and non-monetary incentives and a fast track promotion process though which one can look for prospects of a good career ahead.

System for objective measurement of individual performance is not established. Adaptation of Traditional Vs. Contingent Pay Structure: Majorly Public banks are still following traditional approach to pay the salaries i.e. on the basis of the seniority and designation although in the competitive scenario when most of the privates and foreign banks adopting contingent pay structure i.e.Rewards, pay or incentives on the basis of performance skills and attitude of employees.

Lower level of transparency in the HR policies. Banks do not pay much attention to identifying the core competencies of their staff; Lack of skilled and professionally qualified employees to ensure efficient conduct of the business; Most of the public sector banks and the old private sector banks have employees with 30-35 years of service. With the proliferation of banking products, the managements of these banks started to recruit young people who could market them and increase their business turnover. This has provided a new issue for the promotion criteriaseniority or merit (performance).

CHAPTER II

LITERATURE REVIEW Abraham Susan (2011), in the research Individual career management and career satisfaction among employees in Indian banks, aimed at finding the impact of Individual Career Management strategies on the Career Satisfaction of the respondents in the Indian banking sector. Individual employees had a set of career enhancing strategies that were matched with the organizations activities. Employees experienced maximum satisfaction with their career with maintaining good relationship with their superior. Rashid Uzma and Rashid Sadia(2011), in the research The effect of job enrichment on job satisfaction a case study of faculty members aimed to provide empirical evidence to the job satisfaction levels of academic faculty in Pakistan and to determine whether job enrichment factors are reliable predictors of their job satisfaction. The study concluded with the fact that faculty members overall job satisfaction increases through enriching their jobs. Further, it has been found that responsibility and achievement contributes more to the satisfaction level of faculty. Whereas, career development was found to be insignificantly contributing to the job satisfaction of teaching staff. HalepotaA.Jamshed (2011), in the study An empirical investigation of organization antecedents on employee job satisfaction in a developing country, shows employee motivation is an important and critical issue specifically for health organization where they relate to patients. The purpose of this paper is to focus on the employee perception regarding procedural justices, on job training, esprit de corps, and job clarity variables towards job satisfaction in a developing country.

Abdulla Jassem, DjebarniRamdane and MellehiKamel (2011), in the study Determinants of job satisfaction in UAE:A case study of the Dubai police, aims to identify the factors affecting job satisfaction in the UAE. Specifically, the study seeks to examine the relative effects of demographic and environmental factors on job satisfaction among Dubai police employees. Ali MohinRaza and Mussarrat Muhammad Nawaz(2011), in the research Impact of Job Enlargement on Employees' Job Satisfaction, Motivation and Organizational Commitment: Evidence from Public Sector of Pakistan, purposes to identify the factors which determine the level of public employees' job satisfaction and as result help to have effective and efficient management system in the public sector in developing countries. Ahmad Uaman and AsvirNaved (2011),they in the research paper, Promotion: A Predictor of JobSatisfaction A Study of Glass Industry of Lahore, purposes to investigate whether promotion can predict jobsatisfaction or not in employees of glass industry in Lahore (Pakistan). This study investigates whether promotion can predict jobsatisfaction or not in employees of glass industry in Lahore (Pakistan). A questionnaire is designed to find the predictability of jobsatisfaction due to promotion. PadalaRaoShanmukha (2011), in the study, Job satisfaction and organizational commitment in Nagarjuna fertilizers and chemicals limited, India, purposes the overall job satisfaction level of employees. The greater satisfaction level of employees appears to be more as a function of the good social and cultural background of employees. The results of analysis of the organizational commitment levels indicate that the employees are inclined positively in their commitment to their organization. Rehman Muhammud Safdar and Waheed Ajmal(2011), in the research paper An empirical study of impact of job satisfaction on job performance in the public

sector organization, has purposed of this descriptive-correlational study was to test link between job satisfaction, job retention and job performance. NawabSamina and BhattiKomal Khalid (2011), in the research Influence of employee compensation on organization commitment and job satisfaction, examines the influence of employee compensation on the job satisfaction and organizational commitment among university teachers in Pakistan. It recognizes the effectiveness of employee compensation in fostering organizational commitment and enhancing jobsatisfaction. Chengilad and Anderson Neil (2011), in the research paper Significant aspects regarding career management Means for a better career planning and development, offers a new theoretical perspective on the unique nature and function of job satisfaction change, or systematic improvement or decline in job satisfaction over time. Further, they show that future-oriented work expectations partially mediate this relationship, and organizational tenure moderates the relationship between job satisfaction change and future-oriented work expectations. YeokRoband and Li Jessica (2011) , in the research Working out the quality of work life: A career development perspective with insights for human resource management, aims to examine the importance of the quality of work life and its impact on career development from an organizational perspective, and provides insights into human resource management (HRM) practice. Gupta SenSantoshi (2011), in the research An exploratory study on job and demographic attributes affecting employee satisfaction in the Indian BPO Industry, aims at determining what and how job-related and demographic variables are associated with employee satisfaction of the BPO employees.

CaykoyluSinan and EgriP.Carolyn (2011), in the research Key organization commitment antecedents for nurses, paramedical professionals & non-clinical staff, purposes to develop a causal model that explains the antecedents and mediating factors predicting the organizational commitment of healthcare employees in different work roles.
Palade Adelina (2010), in the research Significant aspects regarding career management Means for a better career planning & development states that developing the professional career is regarded as a means to address both the requests of the employees and of the organization, opposed to the old strategies to address only the institutional needs. The objective of career development is thus the professionalization of individuals and their personal wellbeing, as well as the prosperity of the organizations they are part of. An extremely important component in the career management is the career planning and development activity (2009) in the research: The purpose of the present study is to understand the degree of job enlargement in public sector of Pakistan and its impact on employees work related attitudes and behaviour. Government organizations of Pakistan are using job enlargement practices that are negatively associated with motivation, job satisfaction and organizational commitment. Kumudha A and Abraham Susan (2008), the present study provides empirical support to the organizations efforts to develop the career of employees in the banking sector. The results reveal that the programs related to self-development, information about job openings, opportunities to learn new skills and retirement preparation programs have contributed to the feeling of career satisfaction

Kumudha A and Abraham Susan (2008), the present study provides empirical support to the organizations efforts to develop the career of employees in the banking sector. The results reveal that the programs related to self-development, information about job openings, opportunities to learn new skills and retirement preparation programs have contributed to the feeling of career satisfaction. Budhwar S Pawan and Baruch Yehuda (2003), in the study Career management practices in India: an empirical study, examines and discusses the developments

in the field of career management, bringing in the international perspective. In particular, the paper explores career management practices in organizations. TzabbarDancell (1996), in the study Organizational career management in Issacel, explores some important aspects of organisational career management (OCM) in Israel. Overall, our data, obtained from 136 large firms, represented by their human resource managers (HRMs), reflect a fairly paternalistic approach to career management; careers are mostly managed by the organisation Ospen Christopher (1994), in the study The effects of organization and individual & career management on career success, explains the correlations between individual career planning and tactics, and the same indicators of career success, were also significant. Finally, individual career planning and tactics added significantly to the amount of variation in career success explained by organization career management, supporting a joint responsibility perspective of career management in organizations. Indian

CHAPTER III
Need and scope of the Study As discussed earlier about the Globalisation and Banking reforms adopted by Indian Government which has increased competition in the Banking sector and forced private and public banks to make changes in their work style to sustain themselves in the competitive market. And due to lack of skilful workforce, banks have to give importance to enhance the Talent and skills of their existing employees therefore banks require to adopt proper Career Management and Talent Management System to retain their

employees. Career Management adopted by the private and public Banks would help them to provide a satisfying career to their employees. And it is always beneficial to have satisfied employees in the organisation as they add value to their organisation. Therefore, Career Management research would be beneficial to tackle the issue of job satisfaction of bank employees. The study would focus on the understanding of issues associated with career management to the perspective of organisation and its impact on the job satisfaction. The comparative analyses would help to understand the difference between Career Management System adopted by private and public sector banks. The study would be helpful for HR Managers, Employees of Private and Public Sector Banks.

CHAPTER IV
RESEARCH OBJECTIVES To study the effect of organisational career management on individual Job satisfaction in Banking Sector in India. To study and analyze the technique of Career Management employed by organisations in Banking Sector In India

CHAPTER
RESEARCH METHODOLOGY The design of any research project requires considerable attention to the research methods and the proposed data analysis. Within this section, we have attempted to provide some information about how to produce a research design for a study. We offer a

basic overview of the research methods portion of a research proposal and then some data analysis templates for different types of designs. Our goal is not to answer every question, but provide a head start.

RESEARCH NATURE- DESCRIPTIVE IN NATURE DESCRIPTIVE Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic. Descriptive research is the exploration of the existing certain phenomena. The details of the facts wont be known.

TYPE OF DATA COLLECTION There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources.

PRIMARY SOURCES These include the survey or using a structured questionnaire. SECONDARY SOURCES These include books, the internet, public and private bank website, newspaper articles, magazines and journals etc.

SAMPLE SIZE- sample size of 150 individual comprising of bank employees from public and private sector banks in Jalandhar and Phagwara. SAMPLING TECNIQUE-Convenience sampling technique will be used. DATA ANALYSIS TOOL- SPSS and pie chart

References

Chen, G., Ployhart, R. E., Thomas, H., Anderson, N., & Bliese, P. D. (2011). The Power of Momentum: A New Model of Dynamic Relationships between Job Satisfaction Change and Turnover Intentions. Academy Of Management Journal, 54(1), 159-181. doi:10.5465/AMJ.2011.59215089
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Naveed, A., Usman, A., & Bushra, F. (2011). Promotion: A Predictor of Job Satisfaction A Study of Glass Industry of Lahore (Pakistan). International Journal Of Business & Social Science, 2(16), 301-305. <!--Additional Information: Persistent link to this record (Permalink): http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=66328382&site =ehost-live End of citation--> Nawab, S., & Bhatti, K. (2011). Influence of Employee Compensation on Organizational Commitment and Job Satisfaction: A Case Study of Educational Sector of Pakistan. International Journal Of Business & Social Science, 2(8), 2532.
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Palade, A. (2010). Significant Aspects regarding Career Management. Means for a Better Career Planning and Development. Petroleum - Gas University Of Ploiesti Bulletin, Economic Sciences Series, 62(2), 124-134.
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RASHID, U., & RASHID, S. (2011). THE EFFECT OF JOB ENRICHMENT ON JOB SATISFACTION: A CASE STUDY OF FACULTY MEMBERS. Interdisciplinary Journal Of Contemporary Research In Business, 3(4), 106-117.
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Raza, M., & Nawaz, M. (2011). Impact of Job Enlargement on Employees' Job Satisfaction, Motivation and Organizational Commitment: Evidence from Public Sector of Pakistan. International Journal Of Business & Social Science, 2(18), 268-273. <!--Additional Information: Persistent link to this record (Permalink): http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=66726552&site =ehost-live End of citation--> Rehman, M., & Waheed, A. (2011). An Empirical Study of Impact of Job Satisfaction on job Performance in the Public Sector Organizations. Interdisciplinary Journal Of Contemporary Research In Business, 2(9), 167-181.
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