jesika hrm and marketing (1)

8/20/2019 Jesika HRM and Marketing (1)

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A PROJECT REPORT ON

“HRM AND MARKETING IN BANKING SECTOR ”

Submitted in partia !u!iment "! t#e re$uirement%

&"r

BACHE'OR O& BANKING AND INS(RANCE

)*+,-.*+,/0

B1

JESIKA M(KESH GARACH

(nder t#e 2uidan3e "!

Pr"!4 MONIKA JAIN

Affiliated to University of Mumbai

S4K4SOMAI1A CO''EGE O& ARTS5 SCIENCE AND COMMERCE

A(RBINDO5 6ID1ANAGAR

6ID1A6IHAR 7EAST84 M(MBAI.-+++99

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S4K4SOMAI1A CO''EGE O& ARTS5 SCIENCE

AND COMMERCE

6ID1A6IHAR 7EAST8 M(MBAI -+++9:

CERTI&ICATE

O&

PROJECT ;ORK

This is to certify that,

M%4 JESIKA M(KESH GARACH T414B4B4I4 Semester-V R" N"< ,: has

undertaken and completed the project titled “HRM AND MARKETING IN

BANKING SECTOR” during the academic year !"#-!"$ under the guidance

of Pr"!4 MONIKA JAIN submitted on *+t# O3t"ber5 *+,- to this college in

fulfillment of the curriculum of

BACHE'OR O& BANKING AND INS(RANCE5

(NI6ERSIT1 O& M(MBAI

This is a %onafide project &ork ' the information presented is true '

original to the best of our kno&ledge ' belief(

))))))))))))))) )))))))))))))))))))))) *+./T 0U12. .3T.+4A5 .3AM14.+

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))))))))))))))))))))) ))))))))))

/U+S. /+214AT+ *+14/1*A5

DEC'ARATION

1, JESIKA M(KESH GARACH studying in Third 6ear Semester V %achelor of

%anking and 1nsurance course in the academic year !"7-!"# at S(8(SMA16A

/ollege of Arts, Science and /ommerce and hereby declare that 1 have completed

the project on “HRM AND MARKETING IN BANKING SECTOR” as a part

of course re9uirements of %achelor of %anking and 1nsurance of University of

Mumbai(

1 further declare that the information presented in this project is true and

original to the best of my kno&ledge(

2ate: Signature of Student

JESIKA GARACH

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ACKNO;'EDGEMENT

1 the undersigned, have great pleasure in giving my sincere thanks to those&ho have contributed their valuable time in helping me to achieve the success in

my project &ork( 1 &ould like to thank Prin3ipa Dr4 SANGEETA KOH'I5 S K

SOMAI1A C"e2e "! Art%5 S3ien3e and C"mmer3e for his continued support( 1

&ould like to e;press my sincere thanks t" C".3""rdinat"r for his constant

encouragement, in completion of this project successfully(

1 am indebted and thankful to my project 0uide and Motivator Pr"!

MONIKA JAIN for her valuable and timely guidance, co-operation

encouragement and time spent for this project &ork( 1 &ould like to thank our

'ibrar= Sta!! for providing me sufficient information, &hich helped me to

complete my project successfully( 1 &ould like to thank all the lecturers for their

support and guidance throughout the project(

1 also thank my family members for their continued support in completing

this project &ork and last but not least, 1 &ish to thank all my friends and &ell

&ishers &ho are directly or indirectly linked &ith the success of my project(

C"ur%e name< Ba3#e"r "! Ban>in2 and In%uran3e 7BBI8 SEM.6

C"e2e name< S4K4S"mai=a 3"e2e "! Art%5 S3ien3e and C"mmer3e

(ni?er%it= name< Mumbai (ni?er%it=4

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PRE&ACE

H(MAN RESO(RCE MANAGEMENT 7HRM8 has been talked and &ritten inrecent years( Are =+M ideas changing policies> Are policies

translated into practice> This case study seeks to critically e;amine the

development of =+ strategy in a bank( The e;perience suggests that &hilst =+

type policies are being implemented, the outcomes can by no means be taken for

granted(

This project also involves in-depth study and analysis of MARKETING and its

significance in consideration of business strategy( 1t also includes the study of

marketing &ith respect to banks, various marketing policies used by banks to

market their product( .ffective marketing strategy is necessary to implement for

every banker as the basic purpose of their business is to ?3reate and >eep a

3u%t"mer and ma>e e!!"rt% t" %ati%!= 3u%t"mer need%4”

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INDE@

N"4 T"pi3 Name Pa2e

N"4

, Ab"ut t#e rep"rt

Tite "! t#e %tud=

Obe3ti?e% "! t#e %tud=

Data and met#"d""2=

Pre%entati"n "! t#e %tud=

'imitati"n%

:.,+

* Ban>in2

,4, Intr"du3ti"n

,4* Hi%t"r=

,4 Need "! t#e ban>%

,4- &un3ti"n%

,4/ T=pe% "! ban>%

,4 G"baiati"n in ban>in2 indu%tr=

,,.,:

Human Re%"ur3e Mana2ement 7HRM8

*4, Intr"du3ti"n

*4* Nature "! HRM

*4 S3"pe "! HRM

*4- Si2ni!i3an3e "! HRM

*4/ &eature% "! HRM

*4 &un3ti"n% "! HRM

*49 Obe3ti?e% "! HRM

*4 C#an2in2 r"e "! HRM

*4: E.HRM

*+.+

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- HRM Fit# re%pe3t t" ban>%

4, Intr"du3ti"n

4* Need "! HRM in ban>%

4 R"e "! HRM in ban>%4- HR 3#aen2e% !a3ed b= ban>%

4/ H"F t" mana2e #uman re%"ur3e

4 C"n3u%i"n

,.-*

/ Mar>etin2

-4, Intr"du3ti"n

-4* Hi%t"r=

-4 S3"pe "! mar>etin2

-4- &eature% "! mar>etin2

-4/ &un3ti"n% "! mar>etin2

-4 Bene!it% "! mar>etin2

-./+

Mar>etin2 Fit# re%pe3t t" ban>%

/4, Intr"du3ti"n

/4* Mar>etin2 appr"a3# t" ban>in2 %er?i3e%

/4 C#aen2e% "! ban> mar>etin2

/4- Strate2ie% !"r en#an3ement "! ban> mar>etin2

/4/ C"n3u%i"n

/,./9

9 Bibi"2rap#= /./:

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ABO(T THE REPORT

1( T1T5. < T=. STU26:• The present study is titled as@ “H(MAN RESO(RCE

MANAGEMENT AND MARKETING IN BANKING SECTOR”&here the study of =+M and marketing &ith respect to banks is done(

11( %./T1V.S < T=. STU26:

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• To e;plain &hat human resource management and marketing is

• To e;plain nature scope and objectives of =+M and marketing

• To e;plain the need of =+M and marketing in banking sector

111( 2ATA A42 M.T=2506:


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• The figures have been taken as appro;imations

C#apter ,

BANKING

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,4, INTROD(CTION

The ord FbankG &as borro&ed in Middle .nglish from Middle


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is the State %ank of 1ndia, &hich originated in the %ank of /alcutta in une "J!L,

&hich almost immediately became the %ank of %engal( This &as one of the three

presidency banks, the other t&o being the %ank of %ombay and the %ank of

Madras, all three of &hich &ere established under charters from the %ritish .ast

1ndia /ompany(


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O To provide the security to the savings of customers(

O To control the supply of money and credit

O To encourage public confidence in the &orking of the financial system, increase

savings speedily and efficiently(

O To avoid focus of financial po&ers in the hands of a fe& individuals and

institutions(

O To set e9ual norms and conditions Bi(e( rate of interest, period of lending etcC to

all types of customers(

,4- &(NCTIONS

PRIMAR1 &(NCTIONS

T#e primar= !un3ti"n% "! a 3"mmer3ia ban> in3ude<

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,4 A33eptin2 dep"%it%<

The most important activity of a commercial bank is to mobiliNe deposits

from the public( *eople &ho have surplus income and savings find it

convenient to deposit the amounts &ith banks( Thus deposits &ith the bank

gro& along &ith the interest earned( There is also safety of funds deposited&ith the bank(

*4 Grant "! "an% and ad?an3e%<

The second important function of a commercial bank is to grant loans and

advances( The rate of interest charged on loans and advances varies

according to the purpose and period of loan and also the mode of repayment(

i4 '"an%<

A loan is granted for a specific time period( 0enerally commercial

banks provide short-term loans(

• The borro&er may be given the entire amount in lump sum or in

installments(

• 5oans are generally granted against the security of certain assets(

ii4 Ad?an3e%<

An advance is a credit facility provided by the bank to its customers(

1t differs from loan in the sense that loans may be granted for longer

period, but advances are normally granted for a short period of time(


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customer( The customer can &ithdra& this amount as and &hen he re9uires(

1nterest is charged on the amount actually &ithdra&n( /ash /redit is granted

as per terms and conditions agreed &ith the customers(

b0 O?erdra!t<verdraft is also a credit facility granted by bank( A customer &ho has a

current account &ith the bank is allo&ed to &ithdra& more than the amount

of credit balance in his account( 1t is a temporary arrangement(

verdraft facility &ith a specified limit may be allo&ed either on the

security of assets, or on personal security, or both(

30 Di%3"untin2 "! Bi%<

%anks provide short-term finance by discounting bills, that is, making

payment of the amount before the due date of the bills after deducting acertain rate of discount( The party gets the funds &ithout &aiting for the date

of maturity of the bills( 1n case any bill is dishonored on the due date, the

bank can recover the amount from the customer(

SECONDAR1 &(NCTIONS

%esides the primary functions of accepting deposits and lending money,

banks perform a number of other functions &hich are called secondary

functions( These are as follo&s:

• 1ssuing letters of credit, travellerGs che9ues, circular notes etc(

• Undertaking safe custody of valuables, important documents, and

securities by providing safe deposit vaults or lockers@

• *roviding customers &ith facilities of foreign e;change(

• Transferring money from one place to another@ and from one

branch to another branch of the bank(

• Standing guarantee on behalf of its customers, for making

payments for purchase of goods, machinery, vehicles etc(

• /ollecting and supplying business information@

• 1ssuing demand drafts and pay orders@ and,

• *roviding reports on the credit &orthiness of customer

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,4/ T1PES O& BANKS

,4 Sa?in2 Ban>%<

Saving banks are established to create saving habit among the people( These banks

are helpful for salaried people and lo& income groups( The deposits collected fromcustomers are invested in bonds, securities, etc( At present most of the commercial

banks carry the functions of savings banks( *ostal department also performs the

functions of saving bank(

*4 C"mmer3ia Ban>%<

/ommercial banks are established &ith an objective to help businessmen( These banks collect money from general public and give short-term loans to businessmen

by &ay of cash credits, overdrafts, etc( /ommercial banks provide various services

like collecting che9ues, bill of e;change, and remittance money from one place to

another place(

1n 1ndia, commercial banks are established under /ompanies Act, "$L( 1n "L,

"# commercial banks &ere nationaliNed by 0overnment of 1ndia( The

policies regarding deposits, loans, rate of interest, etc( of these banks are controlled

by the /entral %ank(

4 Indu%tria Ban>% De?e"pment Ban>%

1ndustrial I 2evelopment banks collect cash by issuing shares ' debentures and

providing long-term loans to industries( The main objective of these banks is to

provide long-term loans for e;pansion and moderniNation of industries(

1n 1ndia such banks are established on a large scale after independence( They are

1ndustrial


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the financing of agriculture and generally commercial banks do not take much

interest in financing agricultural sector(

/4 Indi2en"u% Ban>%

1ndigenous banks means Money Lenders and Sahukars( They collect deposits from

general public and grant loans to the needy persons out of their o&n funds as &ell

as from deposits( These indigenous banks are popular in villages and small to&ns(

They perform combined functions of trading and banking activities( /ertain &ell-

kno&n 1ndian communities like Marwaries and Multani even today run specialiNed

indigenous banks(

4 Centra &edera Nati"na Ban>

.very country of the &orld has a central bank( 1n 1ndia, +eserve %ank of 1ndia, inU(S(A, %

1n 1ndia, /o-operative banks are registered under the /o-operative Societies Act,""( They generally give credit facilities to small farmers, salaried employees,

small-scale industries, etc( /o-operative %anks are available in rural as &ell as in

urban areas( The functions of these banks are just similar to commercial banks(

4 E3#an2e Ban>%

=ong 8ong %ank, %ank of Tokyo, %ank of America are the e;amples of


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:4 C"n%umer% Ban>%

/onsumers bank is a ne& addition to the e;isting type of banks( Such banks are

usually found only in advanced countries like U(S(A( and 0ermany( The main

objective of this bank is to give loans to consumers for purchase of the durables

like Motor car, television set, &ashing machine, furniture, etc( The consumers have

to repay the loans in easy installments(

,49 G'OBA'IATION IN BANKING IND(STR1

1n modern time there have been huge reductions to the barriers of globalcompetition in the banking industry( 1ncreases in telecommunications and other

financial technologies, such as %loomberg, have allo&ed banks to e;tend their

reach all over the &orld, since they no longer have to be near customers to manage

both their finances and their risk( The gro&th in cross-border activities has also

increased the demand for banks that can provide various services across borders to

different nationalities( =o&ever, despite these reductions in barriers and gro&th in

cross-border activities, the banking industry is no&here near as globaliNed as some

other industries( 1n the USA, for instance, very fe& banks even &orry about the

+iegle-4eal Act, &hich promotes more efficient interstate banking( 1n the vastmajority of nations around globe the market share for foreign o&ned banks is

currently less than a tenth of all market shares for banks in a particular nation( ne

reason the banking industry has not been fully globaliNed is that it is more

convenient to have local banks provide loans to small business and individuals( n

the other hand for large corporations, it is not as important in &hat nation the bank

is in, since the corporationPs financial information is available around the globe(

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C#apter *

H(MAN RESO(RCE MANAGEMENT 7HRM8

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*4, INTROD(CTION

Human re%"ur3e mana2ement D=+M, or simply HR E is a function in

organiNations designed to ma;imiNe employee performance in service of their employerGs strategic objectives(=+ is primarily concerned &ith ho& people are

managed &ithin organiNations, focusing on policies and systems( =+ departments

and units in organiNations are typically responsible for a number of activities,

including employee recruitment, training and development, performance appraisal,

and re&arding Be(g(, managing pay and benefit systemsC( =+ is also concerned

&ith industrial relations, that is, the balancing of organiNational practices &ith

regulations arising from collective bargaining and governmental la&s(

%ehind the production of every product or service there is a human mind, effort

and man hour B&orking hoursC( 4o product or service can be produced &ithout

help of human being( =uman being is the fundamental resource for making or

constructing anything( Today many e;perts claim that machines and technology are

replacing human resource and minimiNing their role or effort( %ut even machines

and technology have been build by the human aid and besides companies have

been continuously in search for talented, skilled and 9ualified professionals to

further develop latest machines and technology, &hich again have to be controlled

or used by humans to bring out products(

Meanin2<

Human Re%"ur3e Mana2ement is the process of recruitment, selection of

employee, providing proper orientation and induction, providing proper training

and the developing skills, assessment of employee Bperformance of appraisalC,

providing proper compensation and benefits, motivating, maintaining proper

[20]

http://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Industrial_relationshttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Industrial_relations


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relations &ith labour and &ith trade unions, maintaining employeeGs safety, &elfare

and health by complying &ith labour la&s of concern state or country(

*4* NAT(RE O& HRM

=uman +esource Management involves management functions like planning,organiNing, directing and controlling

• 1t involves procurement, development, maintenance of human resource

• 1t helps to achieve individual, organiNational and social objectives

• =uman +esource Management is a multidisciplinary subject( 1t includes the

study of management, psychology, communication, economics and

sociology(

• 1t involves team spirit and team &ork(

• 1t is a continuous process(

• .;perience high turnover

• =ave your people not doing their best

• aste time &ith useless intervie&s

• =ave your company taken to court because of discriminatory actions

• =ave your company cited under federal occupational safety la&s for unsafe

practices

• =ave some employees think their salaries are unfair and ine9uitable relative

to others in the organiNation

• Allo& a lack of training to undermine your departmentPs effectiveness

• /ommit any unfair labour practices

Human Re%"ur3e mana2ement in3ude%<

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"( /onducting job analyses,

( *lanning personnel needs, and recruitment,

7( Selecting the right people for the job,

#( rienting and training,

$( 2etermining and managing &ages and salaries,

L( *roviding benefits and incentives,

K( Appraising performance,

J( +esolving disputes,

( /ommunicating &ith all employees at all levels(


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Human re%"ur3e pannin2<

=uman resource planning or =uman +esource *lanning refers to a process

by &hich the company to identify the number of jobs vacant, &hether the

company has e;cess staff or shortage of staff and to deal &ith this e;cess or

shortage(

J"b ana=%i% de%i2n<

Another important area of =uman +esource Management is job analysis( ob

analysis gives a detailed e;planation about each and every job in the

company(

Re3ruitment and %ee3ti"n<

%ased on information collected from job analysis the company prepares

advertisements and publishes them in the ne&spapers( This is recruitment( A

number of applications are received after the advertisement is published,intervie&s are conducted and the right employee is selected thus recruitment

and selection are yet another important area of =uman +esource

Management(

Orientati"n and indu3ti"n<

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http://www.whatishumanresource.com/human-resource-planninghttp://www.whatishumanresource.com/job-analysishttp://www.whatishumanresource.com/recruitmenthttp://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/human-resource-planninghttp://www.whatishumanresource.com/job-analysishttp://www.whatishumanresource.com/recruitmenthttp://www.whatishumanresource.com/pre-employment-tests


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nce the employees have been selected an induction or orientation

program is conducted( This is another important area of =uman +esource

Management( The employees are informed about the background of the

company, e;plain about the organiNational culture and values and &ork

ethics and introduce to the other employees(

Trainin2 and de?e"pment<

.very employee goes under training program &hich helps him to put up a

better performance on the job( Training program is also conducted for

e;isting staff that have a lot of e;perience( This is called refresher training(

Training and development is one area &here the company spends a huge

amount(

Per!"rman3e apprai%a<

nce the employee has put in around " year of service, performance

appraisal is conducted that is the =uman +esource department checks the

performance of the employee( %ased on these appraisal future promotions,

incentives, increments in salary are decided(

C"mpen%ati"n pannin2 and remunerati"n<

There are various rules regarding compensation and other benefits( 1t is the

job of the =uman +esource department to look into remuneration andcompensation planning(

M"ti?ati"n5 Fe!are5 #eat# and %a!et=<

Motivation becomes important to sustain the number of employees in the

company( 1t is the job of the =uman +esource department to look into the

different methods of motivation( Apart from this certain health and

safety regulations have to be follo&ed for the benefits of the

employees( This is also handled by the =+ department(

*4- SIGNI&ICANCE O& HRM

&a3iitate% pr"!e%%i"na 2r"Ft#<

[24]

http://www.whatishumanresource.com/induction-of-employeehttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-motivation-introductionhttp://www.whatishumanresource.com/healthy--safetyhttp://www.whatishumanresource.com/healthy--safetyhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/induction-of-employeehttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-motivation-introductionhttp://www.whatishumanresource.com/healthy--safetyhttp://www.whatishumanresource.com/healthy--safetyhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/employee-benefits-introduction


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2ue to proper =uman +esource policies employees are trained &ell and this

makes them ready for future promotions( Their talent can be utiliNed not

only in the company in &hich they are currently &orking but also in other

companies &hich the employees may join in the future(

Better reati"n% betFeen uni"n and mana2ement<

=ealthy =uman +esource Management practices can help the organiNation

to maintain co-ordinal relationship &ith the unions( Union members start

realiNing that the company is also interested in the &orkers and &ill not go

against them therefore chances of going on strike are greatly reduced(

Hep% an indi?idua t" F"r> in a team2r"up<

.ffective =uman +esource practices teach individuals team &ork and

adjustment( The individuals are no& very comfortable &hile &orking in

team thus team &ork improves(

Identi!ie% per%"n !"r t#e !uture<

Since employees are constantly trained, they are ready to meet the job

re9uirements( The company is also able to identify potential employees &ho

can be promoted in the future for the top level jobs( Thus one of the

advantages of =+M is preparing for the future(

• A"3atin2 "b% t" t#e ri2#t per%"n<

1f proper recruitment and selection method is follo&ed, the company &ill

able to select right person for right job( hen this happens the number of

people leaving the job &ill reduce as they &ill be satisfied &ith their job

leading to reduction in labour turnover(

*4/ &EAT(RES O& HRM

Reate% t" mana2in2 pe"pe<

=+M relates to managing people at &ork( 1t covers all levels of personnel

and their needs, e;pectations and so on( 1n this sense, it is a comprehensive

function and is basically concerned &ith managing people at &ork(

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http://www.whatishumanresource.com/promotions-of-employeehttp://www.whatishumanresource.com/strikeshttp://www.whatishumanresource.com/quality-circleshttp://www.whatishumanresource.com/promotions-of-employeehttp://www.whatishumanresource.com/strikeshttp://www.whatishumanresource.com/quality-circles


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Pe"pe "riented pr"3e%%<

=+M is concerned &ith employees, both as individuals as &ell as a group(

The aim of =+M is to get better results through their involvement,

motivation and co-operation( 1t is a people-oriented process of bringing people and organiNations together so that the goals of each are met properly(

De?e"p% emp"=ee% p"tentiaitie%<

=+M is concerned &ith helping the employee to learn and develop their

potentialities to the highest level for their benefit as &ell as for the benefit of

their organiNation( 1t is a manpo&erIemployees development oriented

subject(

Inte2ra part "! "r2aniati"n%<

=+M is an integral part of all organiNations( 1t is concerned recruitment,

selection and development of manpo&er available(

• C"ntinu"u% a3ti?it=<

=+M is a continuous activity in an organiNation as personnel problems

continue to e;ist as long as the employees are &orking in an organiNation(

They need constant attention as they may disturb normal &orking of an

organiNation, if neglected(

• Aim% at %e3urin2 emp"=ee 3"."perati"n<

=+M aims at securing &illing co-operation of employees for achieving

organiNational objectives( This is natural as industrial and other activities can

be conducted only &ith the support of human resources(

• C#aen2in2 a3ti?it=<

=+M is a challenging activity as it deals &ith the peopleIemployees &ho are

al&ays unpredictable( .mployees have emotions and sentiments and cannot be treated like machines( 1t is necessary to handle them tactfully( =ere

multidisciplinary approach is re9uired( =+ manager makes use of various

disciplines B*sychology, .conomics, Sociology, etc(C for managing

&orkforce effectively(

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*4 CHANGING RO'E OH HRM

The role of =+ is changing( *reviously considered a support function, =+ is

no& becoming a strategic partner in helping a company achieve its goals( A

strategic approach to =+ means going beyond the administrative tasks like payroll processing( 1nstead, managers need to think more broadly and deeply

about ho& employees &ill contribute to the companyGs success(

To understand the ever changing role of =+, let us have a look into ho& the =+

evolved and is evolving over a period of time or the ever changing role of =+

starting from the period of before industrialiNation(

, ,: Centur=: This period can be classified into three Q period before

industrial revolution, period of industrial revolution and post industrialiNation(

Peri"d be!"re indu%tria re?"uti"n Q The society &as primarily an agriculture

economy( 4umber of specialiNed crafts &as limited and &as usually carried out

&ithin a village or community &ith apprentices assisting the master craftsmen(

Peri"d "! indu%tria re?"uti"n Q 1ndustrial revolution marked the conversion of

economy from agriculture based to industry based( ModerniNation and increased

means gave &ay to industrial setup( A department &as set up to look into &orkers

&ages, &elfare and other related issues( This led to emergence of personnel

management &ith the major task as

• orkers &ages

• orkers record maintenance

• orkers housing facilities and health care

An important event in industrial revolution &as gro&th of 5abour Union(

P"%t Indu%tria re?"uti"n Q The term =uman resource Management sa& a major

evolution after "J$!( Various studies &ere conducted during this period &hich gave

=+M altogether a ne& meaning and importance(

*+ Centur= )unti ate ,:+%0: The post industrialiNation period continued until

late "J!Gs( .volution of scientific human resource management &as emerged(

This period &as kno&n for traditional =uman +esource Management( As a result,

=+ started handling activities like

• +ecruitment and selection of skilled &orkforce@

• Motivation and employee benefits@

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• Training and development of &orkforce@

• *erformance related salaries and appraisals@

• age uniformity@

• Statutory compliances@

*+ Centur= )p"%t ate ,:+%0: This is the continuation of traditional human

+esource Management period( This is the period &here globaliNation &as evolving

in many &ays and many organiNations started adopting the practice of operating

from various parts of the &orld Q this is in search of skilled employees and to

decrease the e;penditure( The focus started shifting to&ards employee

development( =+ started handling activities like

• +ecruitment and selection@

• Training and development@

• *erformance appraisals@• /ompensation and benefits management@

• .mployee Motivation through engagement activities, re&ards and

recognition@

• Attrition Management@

• Statutory compliances@

• 2esigning of policies@

An important event in this period is the improvement in communication systems(

*, Centur=: ith multiple organiNations entering into different countries, there are

numerous brands of similar products available in the market( And also there is a

revolution in communication system, transportation and in many other sectors( 1n

terms of communication, internet and mobile phones have become a part and

parcel of everyoneGs life(

Today, organiNations have an enormous competition in terms of people, products,

services and etc( 1n order to meet this, the traditional human resource management

approach faded and human resources started becoming a strategic human resource

management( Strategic =+M focuses on actions that differentiate the organiNationfrom its competitors and aims to make long term impact on the success of

organiNation( =+ started and continuing playing as a strategic advisor to the

management( The focus is on attracting and retaining talent through engagement(

Activities handled are like

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• Manpo&er planning, recruitment and selection@

• 5earning and development@

• rganiNational design, development and capability programs@

• 5eadership development@

• .mployee advocate@• /hange Management@

• .mployer branding@

• 1ncrease in the focus of the &ellness of employee &ith more focus on &ork-

life balance@

• /ompensation, benefits and &elfare

• .mployee engagement@

• *erformance appraisals focusing on overall development of employees@

•

2esigning of policies &hich focuses on enhancing employee e;perience at&ork place@

• Statutory compliance@

• /orporate social responsibility@

• .mployee 0rievance handling and etc(

Saying all these, =+ is still evolving, emerging and is becoming as a true

business partner( =+ plays a key role in organiNationGs success by taking the

role of an advisor to the management in terms of attracting talent, retaining

talent, differentiating an organiNation from its competitors( =+ is partnering

&ith the management to reach the organiNational goals( There are an

increased number of =+ professionals understanding the concepts of

business, finance, production, marketing, sales and other functions of

business( Also, the focus of =+ has been shifted and shifting to&ards

individual employee satisfaction, making the organiNation as ?%est *lace to

orkH or ?.mployer of /hoiceH not forgetting the fact that a happy

employee al&ays gives best in reaching organiNation goals(

*49 E.HRM

.-=+M is the use of &eb-based technologies to provide =+M services &ithin

employing organiNations( 1t embraces e-recruitment and e-learning, the first fields

of human resource management to make e;tensive use of &eb-based technology(


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evaluate labour costs, and e;amine indicators for turnover and absenteeism(

.mployees can also use a system of e-=+M to plan their personal development,

apply for promotion and ne& jobs, and access a range of information on =+ policy(

E.HRM is the Bplanning, implementation andC application of information

technology for both net&orking and supporting at least t&o individual or collective

actors in their shared performing of =+ activities(

T=pe% "! E.HRM

Operati"na E.HRM<

perational .-=+M is concerned &ith administrative functions - payroll

and employee personal data for e;ample(

Reati"na E.HRM<+elational .-=+M is concerned &ith supporting business processes by

means of training, recruitment, performance management and so forth(

Tran%!"rmati"na E.HRM<

Transformational .-=+M is concerned &ith strategic =+ activities such as

kno&ledge management, strategic re-orientation(

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C#apter

HRM ;ITH RESPECT TO BANKS

4, INTROD(CTION

The banking industry is a highly regulated po&erhouse that stabiliNes the economic

environment of nations around the &orld( %anks store sensitive, personal

information about their clients, and commercial banks often house more valuable

inventory -- cash -- than other retail operations( %ank employees, from e;ecutives

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to tellers, must have a higher level of integrity and trust&orthiness than employees

in most other industries, making the role of =+ in banking that much more

important(

4* NEED O& HRM IN BANKS

=uman +esource Management is important for banks because banking is a service

industry( Management of people and management of risk are t&o key challenges

facing banks( =o& you manage the people and ho& you manage the risks

determines your success in the banking business( .fficient risk management may

not be possible &ithout efficient and skilled manpo&er( %anking has been and &ill

al&ays be a R*eople %usinessR( Though pricing is important, there may be other

valid reasons &hy people select and stay &ith a particular bank( %anks must try todistinguish themselves by creating their o&n niches or images, especially in

transparent situations &ith a high level of competitiveness( 1n coming times, the

very survival of the banks &ould depend on customer satisfaction( Those &ho do

not meet the customer e;pectations &ill find survival difficult( %anks must

articulate and emphasiNe the core values to attract and retain certain customer

segments( Values such as RsoundR, RreliableR, RinnovativeR, RinternationalR, RcloseR,

Rsocially responsibleR, R1ndianR, etc( need to be emphasiNed through concrete

actions on the ground and it &ould be the bankGs human resource that &oulddeliver this(

1t is a common complaint among bank e;ecutives that skilled manpo&er is in short

supply( 4o t&o arguments on this, =+ resources are becoming scarce Q both in

9uality and 9uantity( And, it is 9uite elementary that any resource that is in short

supply needs to be properly managed for the benefit of society and, therefore, you

need to pay attention to the entire =uman +esource Management process( hat

does it mean> 6ou need to manage the people Q and for this you need to

discriminate bet&een the people, that is positive discrimination( The entirespectrum of =+ practice re9uires revolutionary changes if the banks have to

survive( Managing the people is the key challenge( And, discrimination is the key

&ord &hen dealing &ith people( 6ou &ill notice that this &ord is very fre9uently

used(

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4 RO'E O& HRM IN BANKS

• Appi3ant %3reenin2<

/ertain jobs do not really re9uire a thorough background check, but any job

in a bank definitely does( =uman resource departments in banks must go thee;tra mile to uncover the criminal and financial history of job applicants, for

the safety of their clients and their organiNation as a &hole( %anks are highly

unlikely to hire candidates &ith financial fraud on their records, for e;ample,

due to the sheer &eight of temptation a position in a bank &ould place on

someone &ith that kind of history(

Ban> %e3urit=<

=uman resources departments must design and monitor &ork processes to

reduce opportunities for internal theft and collusion( =+ policies separate

cash receiving, storage, processing and disbursement, and record all

activities via video surveillance( 1n the event that an employee attempts to

steal from a bank, the =+ department must handle the legal paper&ork and

administrative processes re9uired by court proceedings(

Pa= de3i%i"n%<

As &ith other industries, =+ professionals in banks have a hand in making

decisions for pay raises and promotions( %ank &orkforces are uni9ue in thatthey often have t&o methods of paying employees: salaries for back-office

and other personnel, and commissions for sales employees( *romotion

decisions for salespeople selling loans and other financial products differ

from decisions to promote administrative staff( %anksP =+ departments must

manage both e9uitably and strategically to develop the &orkforce(

Ee3uti?e re$uirement<

The banking industry is highly competitive, and banks constantly navigate alegal minefield that can devastate companies that step out of line(


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into the future( =uman resources departments in corporations must gain

approval of the board of directors before bringing someone in to fill an

e;ecutive spot, as &ell(

4- HR CHA''ENGES &ACED B1 BANKS

• The first and foremost challenge that =+ function in 1ndia faces is to convert

the abundant population pool into useful human resource(

• Training and development of human resource to match ever changing

industry demands re9uires =+ to develop ne& and innovative ideas that suit

individual as &ell as industry criteria(

• .mployee motivation and satisfaction is another area of concern for the =+

today( 1n order to reduce attrition, =+ needs to realiNe that monetary needs

are not the only drive for an individual and that a sense of belongingness

must be imbibed in employees(

• ith the increase in number of job options available no&adays, the =+

function of an organiNation must take care that they hire those people &ho

believe in long-term commitment to the organiNation( The =+ then must

take up the challenge of retaining them by developing retention techni9ues

like =oliday plans fun-at-&ork etc(• %ecause of cutthroat competition, =+ in 1ndia also faces the task of building

competitive advantage for the company over national and international

competitors(

• The gro&ing importance that companies are no&adays giving to cost-cutting

has posed =+ &ith the challenge to minimiNe e;penditure on =+ not

compromising on the productivity(

• Since right-siNing has been a gro&ing trend in 1ndian organiNation, the =+

no& faces the task of identifying and retaining the key employees of anorganiNation and letting go those that do not suit its future re9uirements(

• =+ also faces the challenge of creating a balanced organiNation that

originates from mergers and ac9uisitions(

• =+ needs to assimilate those policies that are mutually agreeable to the

companies being merges as &ell as profitable for the ne& organiNation(

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• 0lobaliNation poses =+ &ith challenges such as e;patriation and

repatriation( =+ needs to train employees that leave their nation for fulfilling

a foreign assignment( 1t also needs to provide such employees &ith ade9uate

moral support and assure them of job security on their return(

• ith multinational organiNations on the rise, =+ needs to focus on issues

such as cross-cultural training so that problems that can arise because of

differences in international professional values can be diminished(

4/ HO; TO MANAGE H(MAN RESO(RCE

BaC *lanning

BbC Ac9uiring the right people

BcC +etainingIdeveloping the people

BdC Managing people separationIe;it

)a0 Pannin2

As the economy gro&s at a steady rate of around K-J, incomes rise and

demographic dividends start accruing, the %anking industry is e;pected to take a

9uantum leap for&ard( %ut this gro&th &ill need a large number of people and

considering that there are retirements in lakhs, a defining moment is being

presented before the 4ationaliNed %anks to transform( Are the banks ready to

handle the ne& bunch of employees &ho &ill be culturally so different from their

predecessors of the post nationaliNation era> 1t all begins &ith having a manpo&er

plan( =o& many banks can claim to have a proper manpo&er plan that captures the

type of people it re9uires, the level at &hich they are re9uired, clearly defined roles

for everyone, etc( Manpo&er plans should follo& a lifecycle approach, that is, from

the time of recruitment of an employee to his retirement(


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• A steady, carefully calibrated recruitment programme,

• As rapid technological changes transform business Q continuous skill up-

gradation,

• A ne& generation of the &orkforce &ill be &orking alongside an older

generation as a team( %anking, in my opinion is a team &ork and this ne&

situation &ill re9uire cultural adjustments and therefore, change

management(

b0 A3$uirin2 t#e ri2#t pe"pe<

hat kind of talent is re9uired by the banks> 2iscrimination is the key( 2o &eneed good people> r do &e need suitable people> e re9uire good but suitable

people( 1s the mad rush to top campuses justified> ill the people recruited from

top management institutes understand the ill these

people have empathy to&ards poorest of the poor> 1t is often heard bank heads

talking about the challenge of finding people keen to &ork in rural areas( 2oes it

not indicate that there is something amiss in the &ay &e recruit people> 1s it not

better to recruit people from smaller cities>

=o& do &e get to ac9uiring people &ith the right kind of talent> Unfortunately, it

is the same limited talent pool that &ill be targeted by %anks,


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attitude to&ards the job are selected( This is &hy &e often end up &ith people

having brilliant minds but incapable of actually delivering on the tasks assigned(

%anks need to seriously look at lateral recruitment as an option to induct specialists

at various levels &ith specific skill sets and e;perience pool( hile &e have oftenheard of people leaving banks to join finance, legal, accounting firms, etc( seldom

have &e heard of people leaving these professions to join banks( This, needs to

change(

The right people &ill come only if they are paid competitive salaries( =o&ever, too

much pay also involves moral haNard issues and invites adverse attention of

e;ternal stakeholders( As &e &ill see later, the salary structure in the *S%s appears

to be distorted( There has to be discrimination in salaries of people(

)30 Retainin2 De?e"pin2 t#e Pe"pe<

e may be able to get the most suited people for our &ork but then the challenge is

to retain these people and to develop them( There are several dimensions to this

issue such as trainingI re-skilling of employees, performance measurement,

promotion policy, transfer policy, talent management, communication, etc(

Trainin2 Re.%>iin2 1n-house training facilities should be used for course&are development

on 1T I electronic platforms( The course&are should facilitate skill development(

Again, there &ill have to be discrimination in the training that each employee has

to be provided - based on his Iher re9uirements and the need of the institution, notas a routine, not as a measure of re&ard alone(

1t is also important here to understand &hy people &ork> 1n the olden times, in

agrarian societies, people &orked for livelihood( Times changed and came the

industrial age( 5ivelihood &as not the only reason of &orking( As =enry


38/60

famously said ?hy is it every time 1 ask for a pair of hands, they come &ith a

brain attached>H The people then understood that apart from livelihood, there is

something else re9uired( This something else &as termed Fob SatisfactionG( e

have moved on further and are no& in the F8no&ledge AgeG and in this age, in my

opinion, people &ork for F.mpo&ermentG more than anything else(

The best development of people is through empo&erment( *eople at all levels in

the organiNation must feel empo&ered(


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of /M2s and .2s( e need to define ?performanceH appropriately in the conte;t

of banking services today for all levels of functionaries(

A fair, transparent and objective mechanism for performance management is a

must for all banks because an effective *erformance Management System is thekey to talent management and succession planning( 1n +%1 &e are shortly going to

introduce a ne& *erformance Management System that &ill &ork on goal setting,

potential appraisal of performers and developing a talent pipeline(

e are also going to face major challenges on the Talent Management front( 1n

coming times, the &ork force &ill get comple; and there &ill be a need to juggle a

&ide variety of people &ith varied needs and preferences, resulting in an array of

relationships bet&een the organiNation and those &ho &ork for it( *eter 2rucker

had, more than a decade ago, e;pressed the need for &hat he called ?non-

traditionalH &ork relations: fle;ible schedules, contract arrangements, virtual

teams, etc(

Mana2in2 in t#e >n"Fed2e era


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&orking &ith us on variety of options Q part time I contractual I regular Q regular in

regular job I regular on fle;i-hours, etc(

A *erformance Management System should thro& up future leaders( This sounds

very simple but &e must kno& &hat &e e;pect from these leaders( hat ise;pected of a leader>

A leader is e;pected to do

• *lan Bthe taskC

• 1nspire BpeopleC

1nspire for aspiring

1nspire for perspiringAnd@

• 2eliver Bon resultsC

A leader is no leader if he I she cannot deliver(

S=%tem% Pr"3e%%e% *erhaps, not enough( Structurally, it is important that %oardI senior

management is actively involved in =+ matters involving all its manifestations(

rganiNed employee unions are an important part of the democratic process andform an effective channel for communicating &ith employees do&n the line( 1t is

important to involve them in the =+ process &ithout allo&ing them to have an

overbearing influence(

C"mmuni3ati"n<

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/ommunication &ith employees is a vital part of the =+ process as it helps

enhance transparency in =+ practices, thereby imparting credibility to them( hen

dealing &ith human beings, it is important to be objective, transparent and non-

discriminatory and this must be effectively communicated( The employee must say

that the management has all the above 9ualities( The %oard must spend time ondevising &ays and means for this communication Q lay do&n appropriate structures

for the purpose( All forms of modern communication channels including intranet,

corporate e mails, etc( can be adopted to reach out to employees( =o&ever, despite

these developments, the traditional channel of communicating through unions

continues to be relevant as employees attribute greater credibility and reliability to

messages received through their unions( The %anks have a clear cut advantage in

this respect Q they already have a participative process( +epresentatives of the

employees sit on the %oard itself and hence, it re9uires better practice of participative management in the real sense of the term(

)d0 Mana2in2 pe"pe %eparati"n eit<

.;cept maybe a last fe& years, so far most of the people leaving us &ere due to

retirements( Things &ill change, unless &e are doing all the other things that 1

spoke out earlier, properly, people &ill also leave us for other opportunities Q and

believe me, there are going to be plenty of them Q not only from competitor banks

and financial sector but also from outside the financial sector(

e need to introduce a system of e;it intervie&s to determine &hy people are

leaving our organiNation Q &hether there are any inherent systemI structure

failures> =ave &e not been able to empo&er the people enough> e should not try

to block their e;it but, as a part of the manpo&er planning process, should be able

to identify substitutes &ho can step in and ensure non-disruption of important

functions, in the event of the e;it of a key person( The place of an e;perienced

person could al&ays be filled in through lateral recruitment of a person &ith

matching skillsI e;perience(

hile &e are facing a crunch of manpo&er Q can &e use our retired people in

some &ay Q &e are paying them pension and reasonable medical benefits already Q

can some contracts not be &orked out for them> Again, can &e not provide some

empo&erment to them to leverage on their inherent loyalty> They could be useful

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in brand building efforts, or perhaps, in our financial inclusion initiatives( 1t is,

definitely, an avenue that could be e;plored(

4ationaliNed %anks are at the cusp of a uni9ue opportunity Q &ith people retiring

in lakhs making it a Fretirement decadeG, it is the best time to transform the =+ processes and implement some ne& age concepts( This kind of opportunity to

transform =+ processes is once-in-a-lifetime &indo& &hich, if properly utiliNed,

could help our banks take giant strides( n the other hand, those &ho miss the bus

&ould lag behind( The kinds of =+ changes re9uired are a tremendous challenge

and opportunity at the same time( e need some fresh ideas to make the banks

Ffuture - readyG

4 CONC'(SION

The public sector banking system in 1ndia is standing at an important cross road(

There are critical choices to be made and initiatives to be taken( The time is ripe

for leaving the old baggage and taking bold measures( These measures &ould

determine the future path of public sector banks and &hether they &ould continue

to retain their position of preeminence in the banking space or &ould they yield to

the pressure from their peers in the private sector( /onsidering the importance that

banks have in the nation building process, the choices made no& could have a bearing on the economic future of the country and on the lives of crores of our

fello& countrymen, many of &hom are yet to be touched by the formal financial

system( e must succeed not only for ourselves but also for the society and for the

nation(

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C#apter -

MARKETING

[43]


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-4, INTROD(CTION

Marketing is an important social economic activity( 1t is an essential activity for the

satisfaction if &ants and for raising social &elfare( Marketing links producers and

consumers together for mutual benefits( 1t facilitates transfer of o&nership of

goods and services from producers to consumers( *roduction &ill be meaninglessif goods produced are not supplied to consumers through proper marketing

mechanism(

Modern marketing is global in character( /ustomer is the most important person in

the &hole marketing process( =e is the cause and the purpose of all marketing

activities( Marketing is the &orldGs oldest process( The primary function of

marketing is to create a customer( Marketing is a need satisfying process( 1t

facilitates physical distribution and creates


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satisfaction to the customers at less cost than competitors( etin2 re%ear3#<

Through marketing research &ork detailed and reliable information of

different aspects of marketing is available( Such information is useful for

planning and decision making &ith regards to marketing activities(

*4 Pr"du3t Pannin2 and De?e"pment<

The products must be as per the needs and e;pectations of consumers( A

marketing company has to bring suitable modifications in its e;isting

products( 4e& products are re9uired to be added in the e;isting product line(


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4 Pa3>a2in2<

Attractive and durable packages are needed for the products( 1t must be

agreeable to consumers( 1t also acts as a sales promotion measures( 1n order

to maintain interest of consumers in the product, periodical changes in

package design, colour combination, siNe etc( is necessary(

94 Brandin2 and 'abein2<

%randing means giving suitable name or symbol to the product( 5abel is

attached to product and it gives useful information to purchasers( As

packaging is useful to the product so also branding and labeling are useful

for sales promotion(

4 A!ter %ae% %er?i3e<

This comes in the form of repairs, maintenance, and replacement of

defective components( 1t is re9uired in the case of consumer durables andcostly machinery(

:4 Te%t mar>etin2<

Test marketing refers to introducing the product or service in a small

segment of the market( 1t is an attempt to find out &hether or not the

consumers have accepted the product or service( 1f the product or service is

accepted it is marketed on a large scale(

-4- &EAT(RES O& MARKETING

,4 Mar>etin2 i% b"t# a S3ien3e and Art<

Marketing is a science as it provides some general principles to guide the

managers in their &orking( Marketing is an art as every situation re9uires to

be tackled differently and in an effective manner( 4either the science should

be over-emphasiNed nor should art be discounted( The reality is that both of

them go together and are both mutually interdependent and complementary(

*4 Re2uar and 3"ntinu"u% a3ti?it=


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4 Sati%!a3ti"n "! #uman Fant%<

Marketing activities are basically for the satisfaction of consumer needs(

1dentification of consumer needs should be the starting point of marketing

activities(

-4 Reate% t" 2""d% and %er?i3e%<

Marketing is concerned &ith e;change of goods and services &ith the

medium of money bet&een the buyer and seller of the goods(

/4 Tran%!er "! "Fner%#ip<

Marketing of goods brings transfer of o&nership and services and facilitates

physical distribution( *roduction acts as a base of marketing(

4 Create% di!!erent utiit=<

Marketing activity creates different utilities like creates


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-4/ &(NCTIONS O& MARKETING

1. Marketing Information Management:

Managing marketing information helps you understand your customersG needs(

6ou can gather information by revie&ing published market research reports,

asking your sales team for feedback or carrying out a survey using a market

research firm( 6ou should also monitor product revie& sites and social media,such as


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2. Distribtion:

6our distribution strategy determines ho& and &here customers can obtain your

products( 1f you market products to a small number of business customers, you

may deal &ith them directly through a sales team( 1f your business e;pands toother regions or countries, it may be more cost effective to deal &ith customers

through local distributors( /ompanies marketing consumer products distribute

them through retail outlets or, increasingly, via the 1nternet(

3. !ro"#t$%er&i#e Management:

Marketing provides valuable input to product and service development(

1nformation on customersG needs helps to identify the features to incorporate in

ne& products and product upgrades( Marketing also identifies opportunities to

e;tend a product range or launch e;isting products into ne& sectors(

4. !ri#ing:

*ricing plays an important role in determining market success and profitability(

1f you market products that have many competitors, you may face strong price

competition( 1n that situation, you must aim to be the lo&est-cost supplier so

you can set lo& prices and still remain profitable( 6ou can overcome lo& price

competition by differentiating your product and offering customers benefits and

value that competitors cannot match(

5. !romotion:

*romotion makes customers and prospects a&are of your products and your

company( Using promotional techni9ues, such as advertising, direct marketing,

telemarketing or public relations, you can communicate product benefits and

build preference for your companyGs products(

6. %e''ing:

Marketing and selling are complementary functions( Marketing createsa&areness and builds preference for a product, helping company sales

representatives or retail sales staff sell more of a product( Marketing also

supports sales by generating leads for the sales team to follo& up(

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7. (inan#ing:

Successful marketing provides a regular flo& of revenue to pay for business

operations( Marketing programs that strengthen customer loyalty help to secure

long-term revenue, &hile product development programs open ne& revenue

streams( et<

1t &idens the market through large scale movement of goods to the country(

.ven advertising and sales promotion techni9ues are useful for &idening the

market(

/4 Impr"?e% %tandard "! i?in2<

Marketing facilitates production as per the needs of consumers and supplies

such production to consumers( This raises the standard of living of people(

4 Brin2% e3"n"mi3 2r"Ft#<

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1t brings industrial economic gro&th( 1t also facilitates utiliNation of

available natural resources( 1t creates ne& demand for goods and thereby

encourages production activities(

94 Create% neF n"rm% !"r %"3ia e3"n"mi3 be#a?i"r<

1t develops ne& &ays of life in the society and make society progressive

dynamic( The national economic policy is successfully implemented through

marketing(

4 Pr"?ide% 3#anne% "! 3"mmuni3ati"n t" bu%ine%% !irm%<

The marketing firms receive continuous feedback of information about

demand for products and services through marketing( Three mail elements of

marketing, namely, concentration , e9ualiNation and dispersion &ith their sub

processes such as buying, storage, transport, standardiNation etc( facilitates

9uick communication bet&een traders and consumers(

:4 De?e"p% %"3ia %i2ni!i3an3e<

1nternational marketing facilitates international movement of capital,

machinery and technical kno&-ho&( .ven domestic marketing gives various

benefits to consumers, businessmen and society at large(

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C#apter /

MARKETING ;ITH RESPECT TO BANKS

/4, INTROD(CTION

2ifferent *roducts and Services

• 2eposits Q %anks accept the deposits of the public( 1n order to attract the

savings of the people, the bank provides every sort of facility and inspiration

to them and collects the scattered savings of the society( The bank opens an

account of those people &ho deposit their savings &ith the bank( Thesedeposit accounts can mainly be of three types and people can open any of

these three types of accounts according to their &ish( These accounts are

current account, saving bank account, fi;ed deposit account(

• 5oans Q The bank just donGt keep &ith themselves the deposited amount of

the people, rather they advance them in the form of loans to the businessman

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and entrepreneurs, just to earn profits for their partners( The loanee keeps

some gold, silver, fi;ed and variable assets in the form of security &ith the

bank( The bank can advance loan to their customers in three &ays:

overdrafts, money at call, discounting bills of e;change(

/4* MARKETING APPROACH TO BANKING SER6ICES

• 1dentifying the customerGs financial needs and &ants(

• 2evelop appropriate banking products and services to meet customerGs

needs(

• 2etermine the prices for the productsIservices developed(

• Advertise and promote the product to e;isting and potential customer of

financial services(

• Set up suitable distribution channels and bank branches(

•


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(ntrained Sta!!<

ften it happens that &hen a prospective customer approaches the branch,

the employees seem to have very little kno&ledge about the scheme( This

reflects an ugly picture of our bankGs image( %anks are not losing one

prospective customer but "! more customers &ho &ould be touch of thisman( Attitude of the employees to&ards customers is also not very &ell(

Thus, it is a need of time to reorient the staff(

Rura Mar>etin2<

This is a big challenge before the 1ndian banks to enhance rural marketing to

increase their customers( %anks should open their branches not only in the

urban and semi-urban areas but also in the rural areas(

Tru%t "! Cu%t"mer%<

Marketing can be enhanced only by increasing the customers( /ustomers

can be increased or attracted only by &inning the trust of the customers(

Cu%t"mer AFarene%%<

/ustomer a&areness is also a challenge before the banks( %ank can market

their products and services by giving the proper kno&ledge about the

product to customer or by a&arding the customer about the products( %ank

should literate the customers(

/4- STRATEGIES &OR ENHANCEMENT O& BANK MARKETING

1n the fierce competitive market, needs of customer keep changing( =ence, our

marketing strategy must be dynamic and fle;ible to meet the changing scenario(

=ere are steps that form successful and effective marketing strategy for bank

products(

Emp#a%i% "n dep"%it%<.mphasis, though in a discrete manner, should be given to mobiliNe more of

term deposits as they are more profitable for the bank in comparison to

demand( 1ntroduction of products comparable to ?8isan Vikas *atraH of post

office and product &ith the facility of ta; rebate under section JJ of 1ncome

Ta; Act &ill of much help in this regard(

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&"rm a %aeabe pr"du3t %3#eme<

%ank should form a scheme that meets the needs of customers( A bunch of

such schemes can also form a product( A bank product may include deposit

scheme, an account offering more fle;ibilities, technically sound banking,teleImobileInet banking, an innovative scheme targeted to special group of

customers like children, females, old aged persons, businessman etc( 1n

short, a bank product may consist of anything that you offer to customers(

E!!e3ti?e Brandin2<

Man is a bundle of sentiments and emotions( This can effectively be helpful

in branding our products( /onsidering the features of products and target

group of customers, the product can be effectively branded so as to sound it

catchy and appealing( Some proven e;amples are Apna 0har, 2han 5a;mi,

8uber,


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regulations and procedures of the bank and bankers preserve them for

themselves and do not take interest in educating the customers( 1t is a need

to educate the customers from the grassroots of banking( 1t is time that each

bank branch takes steps to educate the customers on all banking function,

&hich &ill facilitate gro&th of banking on healthy lines both 9ualitativelyand 9uantitatively(

Ad?erti%ement<

Advertisement is an eminent part of marketing of bank products(

Advertisement should be such that appeals to people( 1t should not follo&

the orthodo; pattern of narrating a product(


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marketing, and the bank should undertake all such steps to motivate and

reorient its staff(

Sae "! Pr"du3t% and Ser?i3e% t#r"u2# E.dei?er= C#anne%

Sae "! Pr"du3t% and Ser?i3e% t#r"u2# ;eb.%ite%<

1nternet is a net&ork of net&ork &hich connects the &orld( Thus, banks

should sale their products through &eb-site( This &ill enhance the marketing

of the products not only at the national but also at the international level(

/4/ CONC'(SION

%anking sector reforms have changed the traditional &ay of doing banking

business( Mainly technology is the outcome of banking reforms( /ustomer is no&

the king and customer focus or satisfaction of customer is the main aim of the

banks( ith the introduction of ne& products and services competition has gro&n

up among the banks( nly those banks &ill survive &ho face the competition &ith

the effective &ays of marketing(

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BIB'IOGRAPH1

?%ig goals re9uires the accomplishment of many little goalsH

Thus to accomplish my project 1 have referred many other secondary data sources(

They are as follo&s:

RE&ERENCE RE'ATED TO BOOKS<

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=uman +esource

ManagementDT6%MSE

%anking and


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jesika hrm and marketing (1)

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