HR Practices in Public and Private Sector Banks

Presented by:

Group 6

Introduction• Global competition forced organizations to

build global capabilities.

• Banking sector is the most effective instrument for economic development, so developing Human Resources for this sector is essential to achieve the national development.

Contd… Banking activities are highly regulated

both by the social value systems and monetary considerations. Due to globalisation, public banks have to equip themselves along with private banks to meet the challenges of competition within the country as well as outside.

They will have to build an employee infrastructure for hiring, maintaining, training and developing that takes a global perspective.

Private Bank

Private banks are the banks that are not incorporated. These are owned by either an individual or a general partner (with limited partners). The creditors can look to both the “entirety of the4 bank’s assets” as well as the entirety of the proprietor’s assets.

Public Bank A public Bank is that which there are numerous

partners or shareholders, and they elect from their own body a certain number of people, who are interested with its management.

They are classified as national and state banks.

Public Vs Private Banks

Capital Technology Government policy Average age Business strategy Opportunities

Public sector Private sector(Unioun bank of India) (YES Bank)

The Union Bank of India has more than 2,000 branches

ensured complete customer delight, living up to its image of, “Good people to bank with”.

YES BANK, India’s new age private sector Bank, is an outcome of the professional competent top management team, to establish a high quality, customer centric, service driven, private Indian Bank 

Vision ‘Responsible Banking’

Public sector Private Sector(Unioun bank of india) (Yes bank)

A logical extension of the Vision Statement is the Mission of the Bank, which is to gain market recognition in the chosen areas

Vision is to build an organisation where all YES BANK’ers truly partner to direct, manage and accelerate the development of YES BANK as the Young and Dynamic Bank of“Emerging India

Recruitment and Selection

The recruitment is done on the basis of forecasting by HR department.

Internal recruitment & external recruitment

The promotional exams are taken for all levels in management and subordinates.

HR department gets news on current and future requirements from each departmental head.

Contd…

One more feature is that the promotion is also given on the basis of seniority 

Both internal and external sources are taken in account for the purpose. In external sources they go to consultancy, institutions, advertisement , reference, and web-based hiring to source talent

Promotion is given on the basis of performance

Training and Development

has one of the best training systems in India. The training system of Union Bank has been awarded the Golden Peacock National Training Award .

exposed periodically to update skills and awareness in leading institutions in the country.

If the trainees need training in a specific technical skill, which the bank cannot provide economically, it sends the employee to institutes .

training programme may be conducted at other branches of bank.

Remuneration The wages & salary

are decided by banking authority generally

Rank within organization and facilities provided accordingly

Scale in management level

Comparative remuneration method to decide the salary

Calculation of worth of a job

Performance Appraisal

a fundamental process

appraisal results are used to identify the poor performers

appraisee and manager ‘s mutual awareness, understanding and relationship

resolving confusions and misunderstandings

process of aligning individual and organizational goals.

Main objective was to encourage the employees to think innovatively.

Contd… delegation, additional

responsibilities, employee growth and development

counselling and feedback

The bank also aim at building a culture to inculcate professional entrepreneurship to make themselves and the shareholders prosperous

Conclusion Private banks have better role clarity as

compared to public sector banks which is clearly visible on the basis of their level of performance.

Private Banks have the high extent of Induction Training imparted.

Private Banks have the highest extent of Performance Appraisal and Performance Counseling practiced.

Contd…

The Public sector banks possess more transparent and standardized promotion policy.

Public Banks have a better Quality of Work Life as compared to Private Banks .