Public Sector Banks In India Commerce Essay

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The banking sector is crucial to the economic development of a country. India, prior to the economic boom in the 1990's had a poor banking system. The banks were all state owned or nationalised banks and there were very few private banks or multinational banks. The economic boom saw the doors of Indian market being open and investors started to pour in. The private and the multinational banks started to enter into the market and in a short span of time started doing very good business. Their staffs were friendly, management approachable, less waiting time for people (que) and they bought the use of technology with them (computers). Compared to them the state owned and the nationalised banks were lagging a lot behind. It was at that point that the management of state and nationalised banks started to look into being more customer friendly and compete with the private banks. "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 technology-considered 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" (S. Bhatt 2005). This project aims to look into the Human resource development (recruitment and training) in public sector banks of India. The project thereafter researches the case study of SBI and identifies the means and examples of Human Resource development that has helped SBI to compete with other banks to remain as the leading bank in India.

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There used to be very less emphasis on human resource management till the mid nineties in the state owned and nationalised banks in India. The staffs were less customer-friendly, they were not properly trained and management was less approachable. The work ethic and the attitude of the people who used to work for those banks were poor. It was important for the banks to realise the importance of recruitment and training of staff.

Recruitment was mainly kept to a written exam and then a viva voce (oral) exam which was kept to more than getting to know the candidate than to assess his/her skills. Training was organised like once a year for staff which again in this fast paced world

Research Objectives

The objective of this research is to identify the need of Human resource development in the public sector banks in India (SBI case related) and the methods of its implementation, highlighting on the recruitment, training and development processes. As part of this research an investigation and analysis is performed on the recruitment process and training and development in State Bank of India, the existing HR in SBI and how strategic HR planning can benefit SBI.

Research Purpose

The purpose of this research is to identify the importance of the role of Human Resource development towards success of an organisation. An organisation with proper HR planning and strategy builds competitive advantage over its rivals in business.

Research Scope

The competition among banks in India is very intense these days. It is paramount that the Human resource development strategy that is adopted is keeping in mind the current business requirements and the trends. From a personal point of view, this research will be really helpful to the researcher to build on a career in Human Resources. This research when completed might interest other public sector banks in India about HRD and HRM and its strategies in SBI and also might look to reproduce them to achieve their strategic HR goals.

Research Questions

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What are the existing Human resources in PSB in India (SBI case related)?

Why is the need for HRD in public sector banks in India (SBI case related)?

What are the HR challenges facing SBI?

How can HR be developed in SBI?

How can strategic HR planning benefit SBI?

How HR is implemented in SBI?

How HR applications improve banking operations?

Steps of Dissertation

The dissertation will be structured in the form of chapters. Chapter 1 will contain the introduction part with the research objectives and the research questions that arise out of research objectives. The purpose and scope of the research will also be discussed.

Chapter 2 will contain the review of the literature that will be required for the dissertation and the case study for the dissertation (State bank of India).

Chapter 3 will contain the research methodology. The research approach and the nature of the approach, the research methods and the reasons for it, the data collecting methods and data sampling will be discussed in it. Validity and reliability of data will also be looked at. Primary data collected will be analysed and conclusions will be drawn from it in Chapter 4.

Chapter 5 will contain the recommendations and Chapter 6 the references.

Chapter 2: Literature Review

2.1 Human Resource Development (HRD)

"Human Resource development is concerned with providing learning and development oppurtunities, making training interventions and planning, conducting and evaluating training programmes" (M. Armstrong 1999).

"HRD is essentially a business led approach to developing people within a strategic framework" (M. Armstrong 1999).

Human resource development should act according to the business needs of the organisation and its strategies should be in response to the business strategies of the organisation.

2.2 Human Resource Development Strategy

Human resource development strategy is "initiated by the strategic plans of the enterprise/organisation which define where it is going, the resources it needs to get there and the levels of performance required to achieve business goals" (M. Armstrong 1999).

The resources it needs are the number of people and the qualification, skills and expertise needed.

The human resource development strategy should closely look at the relationship between learning, development and training with business needs and how it can be used to attain competitive advantage.

The strategy must be communicated throughout the organisation for the successful running of a business.

Human Resource development policies are closely associated with the Human Resource management policies.

Human Resource Development plan

It is very important to draw out a HRD plan. This will show the number of new and existing staff that requires training or retraining and the training programmes required. It will also show whether there needs to be changes made to the existing programme and courses or new courses are needed. This HRD plan is drawn up keeping in mind the business requirements of the organisation.

2.3 Human Resource Management (HRM)

Definition of HRM

"Human Resource Management is a distinctive approach to employment management which seeks to obtain competitive advantage through the strategic deployment of a highly committed and skilled workforce, using an array of cultural, structural and personnel techniques" (Storey 1995).

Human Resource Management (HRM) is "a strategic and coherent approach" to the management of people working in an organisation who "individually and collectively" contribute to the attainment of the organisation goals (M. Armstrong 1999).

Its common conception of 'people management' is one that focuses on the creation and sustainment of a committed, loyal and capable workforce required to deliver significant competitive benefits for the organization (K. Legge 1978).

Human Resource involves people (staff/workers), supervisors/team leaders, line managers and higher management in the organisation (this includes the Human Resource team in the organisation). Human resource involves with anything and everything to do with staff in the organisation. As a matter of fact supervisors, line managers and higher management are also staff of the organisation. HRM deals with managing people and also looks into the relationship that exists between the management and the workforce to ensure a pleasant working environment for all concerned for the success of an organisation and to give the organisation competitive advantage over its rivals in business.

2.4 Organising Human Resources

2.4.1 Human Resource Planning

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Human Resource planning systematically plans an organisation's future demand for and supply of employees (W.B Werther Jr, K Davis, 1996). Human resource planning is required to achieve an organisation's 'strategic goals (M. Armstrong, 1999)

HR Planning is normally a long term planning that determines how to obtain the best return from the resources available at the moment and in future. However it does from time to time addresses short time requirements. HR planning enables management to develop staffing plans that support an organisation's strategic goals. HR planning will also enable to management of the organisation to look for the right people at the right place at the right time and at right cost (Source: http://www.interior.gov/hrm/WFPImanual.pdf)

(US Department of the Interior Office of Personnel Policy, August 2001)

2.4.2 The Labour Market

The labour market is an important context in the Human Resource Planning process. The labour market can be classified into external labour market and internal labour market (M. Armstrong 1999).

The external labour market is the labour market that is outside of the organisation workforce. This may include the local, regional, national and international labour markets (M. Armstrong 1999). The type of market that the organisation may venture out for the required qualities, skills or competencies that they are on the lookout for will depend on which of local, regional, international are able to provide them with the best possible resource.

The internal labour market is the market that is inside the organisation. The internal labour market is developed through training and continuous professional development by the firm. Ideally a firm would love to develop or train from within to fulfil its requirements but such is the market competition these days that specialists are often sought that come with the requisite skills.

India is a country with a high percentage of educated people and getting the right skills and the expertise does not pose that much of a problem there with resourcing. But there are sometimes scenarios where there might be requirements for skills from international boundaries especially in the case of cutting edge technology and specific management skills.

2.5 Forecasting Human Resource requirements

It is very important to estimate the human resource need/requirements of an organisation. That will help the organisation plan better for future. It is forecasting the demand of business needs with supply available.

Demand Forecasting

"Demand forecasting is the process of estimating the future numbers of people required and the likely skills and competences they will need" (M. Armstrong 1999). Demand forecasting plays part in the case of expanding business, opening of new departments, branches or retirement of staff or advancement of new technology (calculates the number of skilled people required for the job).

Supply Forecasting

"Supply forecasting measures the number of people likely to be available from within and outside of the organisation" (M. Armstrong 1999).

2.6 Recruitment Process

The recruitment process is a fairly long process and starts with the process of filling up of vacancies (recruitment) and ends with the right candidate being offered the job (selection).

A job in a bank is highly regarded in India. It is a job that requires attention to detail and a trustworthy person. It is quiet challenging in recruiting the right kind of people for this industry. "Thus an understanding of labour market forces, people's motivation and their interest level can assist a great deal in deciding how to approach recruitment" (L.V.D. Wagen 2006).

2.6.1 Recruitment

"Recruitment is a process of attracting potential candidates to the organisation" (L.V.D. Wagen 2006).

A recruitment campaign involves identifying the human resource needs of the company, placing advertisements, job specification and details to source candidates. The number of potential candidates to a large extent depends on the job description, education and skill levels the job role demands. It is very important to specify the job requirements as much as possible as that filters the unwanted applicants from applying. The ones applying are thus the core group who partially or wholly satisfies the job requirements. One of the most important part of HRD is attracting the right candidates for the job.

2.6.2 Sources of Recruitment

Internal Recruitment

Internal recruitment is undertaken when a manager or an organisation believes that the best candidates for upper level positions will be found among those employees who are currently employed by the organisation (Hayes & Ninemeier 2009).

This is quiet often followed by some organisations with success. For example a vacant position of branch manager of a bank can be filled by elevating the assistant manager of the branch. The assistant manager has the expertise and knows the branch employees and the culture of the branch better than any other third person.

Referral by employees

The most cost-effective method of recruitment is to invite employees to make referrals (L.V.D. Wagen 2006).

External Recruitment

"When organisations seek candidates externally they rely on a variety of strategies including advertisements, employment agencies", newspaper advert, website advert, job search engines etc (Hayes & Ninemeier 2009)

Newspaper advert

Website advert

Job search engines

Employment agencies

Outsourced Recruitment

An outsourced search is one in which an organisation chooses an executive search firm to find potential candidates for a job (Hayes & Ninemeier 2009).

There are however no fixed sources of recruitment that a HR Manager goes to. The main thing is to recruit the best possible candidate for the job. In some cases they may also use a combination of sources to find the right candidate.

2.6 Selection

"Selection is the process of choosing the most suitable candidates" (L.V.D. Wagen 2006). This process starts when the candidate is interviewed for the post (in India in most jobs in banks the first stage in selection is a written test) and the process ends with the candidate being offered the contract of employment.

The main selection methods are the interviews, assessment centres and psychological tests (M. Armstrong 1999).

Training and Development

Training Definition

"A planned process to modify attitude, knowledge or skill behaviour through learning experience to achieve effective performance in an activity or range of activities. Its purpose, in the work situation, is to develop the abilities of the individual and to satisfy the current and future manpower needs of the organisation" (Manpower Services Commission 1981).

The world of business is fiercely competitive. Training of staff is very important part of HRD to stay competitive and for sustainable competitive advantage in business.

Why training?

Training is given to people (staff in this case) to make them up to date with the market demands of business competitiveness, to maximise their potential and to make them perform better.

"Training can help people to grow from within the organisation for future human resource requirements". It also can "improve individual, team and corporate performance in terms of output, quality, speed and overall productivity" (M. Armstrong 1999).

The process of training

Systematic training

"It is training which is specifically designed to meet defined needs. It is planned and provided by people who know how to train and the impact of training is carefully evaluated" (M. Armstrong 1999).

Planned training

It is a "deliberate intervention aimed at achieving the learning necessary for improved job performance" (Kenny & Reid 1994).

Identifying learning and training needs

Learning and training needs depends on the needs of an organisation. If the need of the time is to better train the staff so that they be more customer friendly and customer focussed, then training or a workshop must be organised for the staff. If management needs training to better manage the staff or to maximise productivity from staff then there is a need to train the managers. If staff and management need to get used to the latest software or technology then there is a need to train them.

Training is "partly concerned with defining the gap between what is happening and what should happen, i.e the difference between what people know and can do and what they should now and be able to do" (M. Armstrong 1999). That gap is filled by training.

Training also needs to identify the areas as pointed out in the paragraph above. It is to be analysed whether individuals need training or a certain department needs training (a group) or the organisation as a whole (staff and management) needs training.

2.7 SBI Overview (Case Study for the dissertation)

2.7.1 Introduction

State Bank of India is the nation's largest and oldest bank. The origin goes back about two hundred years. It was first established as the Bank of Bengal in 1806. Then it was redesigned as the Bank of Calcutta via a charter in 1809. Then the Bank of Mumbai and the Bank of Madras were also established. These three banks remained at the helm of banking in India till their amalgamation as the Imperial bank of India in 1921. On 1st July 1955 via an Act in Parliament it was called the State Bank of India as it is today. Today the bank operates more than 15,000 branches within India, where it also owns majority stakes in six associate banks. State Bank of India (SBI) has more than 80 offices in nearly 35 other countries, including multiple locations in the US, UK, South Africa and Canada (Source: www.statebankofindia.com)

2.7.2 Mission Statement

Develop into a top rate, nimble footed banking institution committed to excellence in services to its customers, enhancing stakeholder's value though care and competence, employee satisfaction and fulfilling obligations to the community at large.

Source: http://www.sbici.com/mission.htm

2.7.3 Vision Statement

Attain high standards of efficiency and professionalism and core institutional values comparable to the best in the field.

Possess world-class standards of efficiency and professionalism rooted in the core institutional values of the State Bank Group.

To be a committed, caring and responsible corporate citizen

To provide a satisfying work environment with opportunities for learning, self-development and self-actualization.

Source: http://www.sbici.com/mission.htm

2.7.4 Organisational Structure (HR)

2.7.5 SWOT Analysis

A SWOT analysis of SBI

Strength

SBI is a brand name. It is the oldest bank in India dating back to the year 1806. It is a market leader being ranked 380 in the world in Fortune Global 500 list in 2008 and ranked 219 in 2008 in Forbes Global 2000. It has an asset of around $126 billion and its customer base it is a giant in market leader. SBI is majority government owned, around 60%, so has edge over private banks in customer security. In India people tend to trust government owned banks more then private banks. SBI has also a wide distribution network with approximately 15,000 branches all over India (including branches of subsidiaries). SBI offers its customers diversified portfolio including retail banking, car loans, home loans, business loans, personal loans, insurance etc.

Weakness

The management structure of the bank is sometimes cold to changes, i.e possess a barrier to changes. In most cases SBI is reluctant to make first use of new technology that makes its way into the banking sector and hence fall behind on fall behind on facilities and services. SBI is also rigid to modernisation of its processes, infrastructure and centralisation which can lead to competitive advantage to its rivals.

Opportunities

Merger of its associate banks like State Bank of Hyderabad, State bank of Maharashtra etc will create a mega bank and streamline operations. SBI already has office in about 35 countries and still want to strengthen its global operations further by opening more branches in those countries and also has plans to expand in other global market. SBI has plans to add more branches with ATM facilities in the coming years. With India's economic and technological boom there is always going to be higher business demands and more customers.

Threats

The private and the MNC banks in India are a major threat to SBI's organisation goals. They have benefitted from the open market of India, have increased competition and are turning out to be stiff competitors with their increased facilities and services. The expectations of the customers have grown over the years and customers have showed their willingness to go for SBI's rivals if expectations are not met. The advent of private banks and MNC banks into the semi-rural and rural areas have conflicted SBI's business interest in a potentially monopoly business area. Also presence of trade union, which is absent in private and MNC banks. RBI's changing interest rates and policies.

2.7.6 Need for HRD in SBI

The banking sector in India has undergone a massive reform over the last decade. The use of technology in ATM banking, mobile banking and phone banking has driven a certain percentage of people from the long queues of banks. But the majority of Indian people still prefer using the conventional branch banking over the counter which they consider less 'error-free' and 'risk-free' banking service (Dr N. Ramu, Co-operate Banks in India: issues and challenges, Lecturer, Department of Commerce, Annamalai University, Tamil Nadu). With market competition intense, specially in customer services it has become inevitable for SBI to concentrate on increased staff productivity at a reduced cost.

SBI along with other public sector banks till the 1980's were more concentrated on expanding the number of branches rather than on increased profits.

A SWOT analysis of SBI shows that while it is the largest and the oldest bank in India, it still faces stiff competition from its competitors in India's fast growing economy. As a researcher I feel the two main areas in which SBI lacks from the private banks and the MNC banks is in the customer service area and in the use of technology area. To provide top class customer service SBI needs to resource/recruit young and energetic staff and also the right skills available in the market for the use of technology. It also needs to train its existing staff to the demands of new technology and efficient customer service. Hence the need for HRD and a proper HR plan to gain competitive advantage.

2.7.7 Existing Human resources in SBI

An analysis of existing human resources is very important to plan the human resources for the future. It is important to know how many people with specialists skills are with the organisation and if the market demand arises how many would be needed. It may be equally important to know how many

people exist who can be potentially be elevated to higher post with promotion and where they can be found. Similarly employee segmentation by age, length of service is also an important tool to analyse the existing human resources. If it is known that there are a good number of people that are over a certain age (say 55) then there is a good chance of vacancies arising from retirements. If existing human resources are analysed on the length of service, the longest survivors will help the HR planner in predicting future resources.

At present there is not much shortage of skills in SBI as the Indian population as always is educated and now with the education and training establishments in the market they are fine tuned before they are recruited. People with knowledge of using a computer are in abundance, almost everyone knows it.

But there may be specialist sectors where there maybe a need for skilled people. People with knowledge about the latest banking domain software in the market, people with knowledge about SAP ERP are still in demand and there is a market shortage of them, primarily due to the extensive cost of training staff in that software.

Before Re-structuring and liberalisation of Public Sector Banks

There was a shortage of specialist skilled people in SBI before the liberalisation of the public sector banks. There were less people with knowledge about computers and the way to use them. With the advancement of the private and the multinational banks and the customer friendly quality of their staff, it was felt that the focus of the staff of Public sector banks needed to change and certain skills on customer service was required to be inculcated among their staff.

The personnel department of SBI used to be the face of Human resources at SBI. During those days the recruitment of staff and clerical posts in public sector banks in India were used to be filled through "Banking Service Commission Exams". The banking service commission used to then place the candidates in the respective banks. SBI was also a beneficiary of the banking service commission exam, recruiting bright talents through a written and viva voce assessment. The main HR activities used to be concerned with the once in a while training programme for staff and managers.

The State Bank Academy (SBA), formerly known as State Bank Staff College was set up at Gurgaon, on the 18th November, 1982

(Source: http://www.iift.edu/iift/MDP/SBA_11112008.pdf).

SBI like other public sector banks in India concentrated more on expansion from the 1970's to the end of the century. The problem is with increased competition the role of HR has become very important. It is not merely recruitment that they are restrained to. The face of HR has changed massively in India over the last decade. They design the training and development programme for staff, old and new and also management. It has become paramount for banks to recruit the right person with the right skills for the job.

2.7.8 Restructuring of HR policies

Innovative HRM shifts from an uni-dimesional to a multi-dimensional approach

"The new concept of HRM calls for segmenting the work force according to different criteria like age, educational background and business background. Policies need to be tailor made according to the needs of each group, in order to optimally utilize the resources offered by each segment. In the wake of liberalization, the State Bank of India, India's largest public sector bank decided to undertake an intensive restructuring program. With the entry of foreign and private sector banks, it needed to make itself more competitive. Hence it turned to business consultants, McKinsey for suggestions and improvements. Accordingly the business was divided into 8 major functions, out of which Personnel and HRM were among the five most important divisions. Furthermore, HR was divided into four branches in order to serve the needs of the organization and the employees closely and precisely. The four levels included, Corporate Office, Local Head Office, Zonal Branch and Individual Branch. Although the Corporate Office handled most of the HR activities, each branch was delegated specific responsibilities which made the management and decision making process in the firm, simpler and more effective. The overall HRM strategy placed special attention on the policies carved for middle managers as they are the ones who implement the strategies devised by the top management. Care was taken to ensure that the strategies designed for the middle managers correspond to their needs" (A. Som 2003).

2.7.9 HR Challenges

The revolution in the Indian banking system with the advent of the private and the multinational banks have made the public sector banks in India aware of the changing face of banking. They have to realise that they need to look at the most important aspect of their business, those who are the face of their business, i.e their staff. A revamp of their Human resource infrastructure and way of managing staff need to be looked at to stay competitive. The private sector and the multinational banks have not only bought in new and fresh young generation staff, but they also have better trained staff who go through continuous professional development from time to time. Their training methods are much more focussed, innovative and new technologies before As the largest and most popular PSB in India, SBI faces challenge from its competitors. It needs to streamline its recruitment process, devote more time on staff training, motivate staff towards being customer friendly and need to bring in more skilled people especially in the technology sector to remain as the leading bank in India.

3.3.8 HR Focus

With competition among businesses these days, big firms need to focus more on getting the right kind of people to work for them. For banks it is no different. Keeping products and offers constant, there are banks who will perform better than others. The main difference here is the staff. The bank whose staff who are more customer friendly are bound to bring in more business. The focus for SBI thus must be on development of old staff and getting the right staff for the right kind of job. The culture needs to change. The focus need to be more on using the most powerful resources, the staff.

2.8 Implementing HR practices to gain Competitive advantage

Recruitment

Recruitment at the public sector banks in India and the SBI normally used to happen through their regional or zonal headquarters or country head office. Usual practice of recruitment was a recruitment process called the "Banking Service Commission", which was a centralised recruitment for all public sector banks in India. This was one type of external recruitment, but it was not tailor made for the individual public sector banks. With the market entry of the private and multinational banks in India, these public sector banks began to feel the heat of competition. All these banks have their own vision and the best way to inculcate that vision among its employees is to first choose the right employee. Thus there was a need to streamline the recruitment process.

Internal Recruitment

These types of recruitment are very rare except for the cases of promoting a staff to the level of assistant manager in a branch or elevating an assistant manager to the role of a manager in a branch. The people who are elevated by internal recruitment always do come from within the bank/branch.

External Recruitment

In order to be more market competitive State bank of India these days conduct their own recruitment of officers and clerical cadres for SBI and its associate banks through Central Recruitment and Promotion Department in Mumbai (done in-house). SBI advertises the recruitment through its website and other job sites like naukri, yuvajobs, union public service commission portals, newspaper advertisements and so on. The internet is one of the most powerful, cost-effective and fastest way to reach people (candidates here).

Every year SBI recruits 50-60 graduates from management institutes.

Outsourcing Recruitment

These are mainly done for the case of a high profile position or executive position for which the bank feels that it has got not enough resources from within itself to promote/hire.

"In a departure from the usual practice of direct recruitment, State Bank of India (SBI) plans to use the services of headhunters for engaging talent for senior specialist jobs in areas such as information technology and risk management" (A. Lele 2008)

State bank of India is hoping to cash onto talented Indian professionals who might be looking to relocate to India as part of its recruitment plans.

"While the country's largest commercial bank has infrastructure and expertise in place for recruiting persons for the clerical and officers category, it finds it difficult to scan for persons suitable for high skilled jobs in areas such as treasury, IT and risk assessment" (A. Lele 2008).

As the bank has to some extent certain limitations in accessing talent for specialist position, it was decided by the bank to outsource the executive search to placement consultancies. Most of these high skilled jobs are contractual appointments. Ideally the bank wants to have a panel of 10-15 such search firms to submit bids for selecting those talents.

In the matters of outsourcing it is always an advantage to have a selection of search consultants or recruitment agencies to choose from. These recruitment firms maintain a database of persons with varied skill sets and expertise and depending on the job requirements, the skill sets, the package etc the bank can then zero in on one or two candidates.

Training and Development

Parivartan

State Bank of India (SBI) initiated parivartan, "a mass communication programme, for its staff in 2007. The idea was to bring cultural changes among its employees and energize them through incentives, training and motivation" (D. Chaudhuri 2007). This kind of a mass training programme is first of its kind in SBI. It was designed towards "transformation and multi-level communication programme" among employees and "energising the employees towards focus on customer delight" (Bureau Reporter 2007).It also explains why there is a need for change.

This programme is for employees at all levels to undergo training and motivate themselves to better tackle competition and change at the market place

The two-day programme is expected to cover all the 1.8-lakh staff across the country in a span of 100 days.

Reward

The response from staff participating in Parivartan was very encouraging and the bank plans to institute an award for the best employee in every branch as part of this project.

Citizen SBI

"The country's largest lender, State Bank of India (SBI), today launched a new programme, Citizen SBI, aimed at attitudinal change and transformation of its employees through a series of human resources activities. The project which was designed by Illumine Knowledge Resources over the last 18 months will be implemented across all SBI staff over the next 2 years"(Business Standard Reporter 2009)

Source: http://www.business-standard.com

Citizen SBI is a training programme in four stages, citizen orientation, customer fulfilment, market engagement and a vision programme. The vision programme is specially designed to train senior management of the bank. The citizen orientation was launched on September 2, 2009. It seeks to bring behavioural transformation by engaging employees to be proactive and demanding a more active role.

Outsourcing Training and Development

State Bank of India sought the help of V2LearnTech to adopt their e-learning mode to impart knowledge, improve skills and reorient attitudes of its large workforce for their individual growth and organizational effectiveness

"State Bank of India commissioned a two-day workshop to educate the bank staff, and bring the bank and the vendors on the same page. V2LearnTech's training enabled SBI staff to understand Bloom levels and helped in categorizing training modules as per bank's classification norms" (Source: http://www.v2learntech.com/sbi_casestudy.htm)

The result is that the bank staffs are better equipped to understand Bloom levels. Not just that, as an outcome of the training provided by V2LearnTech, a glance at the course objective is sufficient for them to advise what level the course should be at.

This has resulted in setting of better expectations for vendors and has minimized the risk of a course not mapping to training needs.

Centralised Core Processing Implementation

Source: http://www.tcs.com/sitecollectiondocuments/case%20studies/bancs_case_sbi.pdf

"The State Bank of India (SBI), the largest and oldest bank in India, had computerized its branches in the 1990s, but it was losing market share to private-sector banks that had implemented more modern centralized core processing systems" (R. Hunt 2009).

In order to be competitive in the market with the private and multinational banks, SBI in 2002 began the implementation of a centralised core system.

The State Bank of India appointed TCS (Tata Consultancy Services) to "customize the software, implement the new core system, and provide ongoing operational support for its centralized information technology" (R. Hunt 2009).

Initially though it was decided to convert only 3,300 of its branches with the core system implementation, such was the success story that it expanded the project to include all of the more than 14,600 SBI and affiliate bank branches.

Implementation of SAP & ERP

State Bank Group aims to respond faster to market demands, enable real-time information access and assign the right people to the right positions at the right time.

On Implementation of my SAP ERP help State Bank Group drive advancement and innovation in areas of human capital management and enterprise resource planning such as e- learning, virtual classrooms, career development and successing planning, competency assessment, performance management and property management

Chapter 3: Research Methodology

Introduction

Research Philosophy and Approach

Research Methods

Data Collection

Validity and reliability

Critical Conclusions

Chapter 4: Conclusions

Chapter 5: Recommendations