sanjay kumar final paper

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Shortcomings in Recruitment and Selection Practices in the

Public and Private Sector Banks

Dr. Sanjay Kumar

Department of Business Management, HNB Garhwal University

A Central University, Srinagar-246174, Uttarakhand, India

Tel: +91-9810267030 E-mail: [email protected]

Prof. S P Kala (Corresponding Author)

Ex-ICLS, Ex-Director, ICSI, & Retd. Head & Dean, Dept. of Business Management,

HNB Garhwal University, Srinagar-246174, Uttarakhand, India

Tel: +91-9012464090 E-mail: [email protected]

Abstract

This research investigates about the shortcomings in Recruitment and Selection Practices

among the Public and Private Bank. The sample size is 600 and study is based on the data

collected from Delhi, Haryana and Western U.P. Many researches were conducted on the

banks and banking industry, but, research on Recruitment and Selection specifically

examining about the shortcomings has not yet been covered fully. Thus, the result of the

study is fair enough to highlight the real banking scenario. The result is based on the

basis of questionnaire collected from Public and Private Sector Bank employees and in

order to find out the results, the “Frequency Distribution and Comparative Analysis”

statistic tool has been used. For the purpose of the study SBI, PNB and Union Bank of

India are derived among the Public Sector Banks whereas ICICI Bank, HDFC Bank and

Axis Bank as Private Sector Banks.

Keywords: Recruitment & Selection, Public & Private Sector Banks, performance

mailto:[email protected]










Introduction

The Banking Sector has made significant progress in recent years. The private owned

banks have explored their wings and giving heavy competition to the public sector banks.

Even the people of the nation attracted towards the handy services offered by the private

sector banks. The introduction of credit card, AMT-cum-Debit card, e-banking, tele-

banking, anywhere banking, 7 day banking, online transfer of funds, SIP (systematic

investment plan), CBS (core banking solution), loan facility, insurance & risk cover,

ALPM (automatic ledger posting machine), online railway ticket booking, payment of

taxes online and online trading in shares completely revolutionized the banking sector.

The 1990 saw the birth of distributed computing technology and RDBN (Related Data

Base Management System).1 Recognizing the importance of payments and settlements

system in the economy, RBI has embarked on technology based solutions for

improvement of the payment settlement system infrastructure, coupled with the

introduction of the new payment products such as the computerized settlement of clearing

transactions, use of magnetic ink character recognition technology for cheques clearing

while currently accounts for 65 per cent of the value of cheques processed in the

country.2

On 5th

July, 2002, the Union Cabinet allowed banks to conduct transactions

through electronic cheques bearing digital signatures and electronic imaging Amendment

to the Negotiable Instrument Act, 1881.3 While the banking system has done fairly well

in adjusting to new market dynamics, the changing paradigms of recruitment, and transfer

policy with performance and productivity are some challenges ahead, as well. Therefore,

the recruitment and selection process in the public and private sector banks also undergo

drastic changes with the passage of time.



Meaning of Bank

According to Oxford English Dictionary, Bank is, “An establishment for custody of

money received from or on behalf of, its customers. Bank‟s essential duty is the payment

of the orders given on it by the customers, its profit mainly from the investment of money

left unused by them.” According to Macleod, the real meaning „Bank‟ is heap and it

indicates towards a joint fund collected by many persons. Thus, it is difficult to say

which opinion is more correct.4 While defining bank, the Knneth Toft wrote, “It is not

easy to give precise definition of a bank…. for our purpose it is sufficient to say that an

organization is called a bank if its activities are normally associated with banking.”

5

According to Frederick A. Bradford, “Commercial Banking is the process of pooling and

lending or investing temporary surplus funds of the community, together with those

functions which are incidental but essential to fulfillment of that process.”6

Public Sector Banks

The public sector bank includes which are owned by the Central Government either

directly or through the Reserve Bank of India (RBI). They are divided into two classes:

(a) State Bank Group

(b) Nationalized Banks

The RBI is the Central Bank of India. It has been established as a body corporate under

the Reserve Bank of India Act, which came into effect from 1 st April, 1935. It was

nationalized in 1948 soon after the country‟s Independence. And, the state bank group

comprises of State of India and its seven subsidiaries. SBI was established under the State

Bank of India Act, on 1st July, 1955, by nationalizing Imperial Bank of India. There are

19 nationalized banks in the country. The nationalized banks were established under the

two acts, i.e., Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970



and Banking Companies Act, 1980. The nationalized banks are owned by the

Government of India and recognized as public sector banks.

Private Sector Banks

The banks were working under private sector before independence. There were many

foreign banks which were functioning under private ownership basis before 1947. After

independence the Government nationalized many banks in two phases but still there were

some banks which are operating under the private sector banks. Thereafter, RBI has

permitted for setting up private sector banks in India in January, 1993. The private sector

banks can be broadly classified into two categories:

(a) Old Private Sector Banks

(b) New Private Sector Banks

Importance of Human Resource Management in Banks

Human Resource Planning is such a process which identifies the exact number of and

kind of people an organization needs at the time and place as per the requirement.

Coleman has defined human resource or manpower planning as “the process of

determining manpower requirements and the means for meeting those requirements in

order to carry out the integrated plan of the organization.”7 Bulla and Scott (1994) have

defined Human Resource Planning (HRP) as the process for ensuring that the human

resource requirement of an organization are identified and plans are made satisfying those

requirements. Manpower planning is a “management strives to have the right number and

kinds of people at the right time and place to do things which result in both the

organization and the individual receiving the maximum long-range benefits.”8

The

banking sector in Indian economy has become an integral part of global economy. Total



quality management, cost consciousness, sophisticated equipment, high skill, latest

technology, most up-do-date know how, production with less cost and customer‟s

satisfaction have become the hallmark. In such a fiercely competitive environment, with

the liberalization and globalization of the economy, the management of banking and

other financial organizations will have to initiate radical changes within the banking

organization to enable it to compete effectively in a dynamic market. Moreover, the

managers of the organizations will have to become the catalyst of change.9

Recruitment and Selection

Effective utilization of human resources depends on the quality of people that are

employed in the organization. Therefore, selection process of capable workforce has its

own worth in personnel management. Capable employees selected for organization are

assets while incapable may prove to be liabilities. Therefore, management should give

much more time to select the people and spare little time to manage them. Recruitment

emphasis on identification of sources of potential candidates while Selection is

concerned with evaluation of potential employees.10

H.T. Graham defines, “Recruitment

is the first part of the process of filling the consideration of sources of suitable candidates,

making contact with those candidates and attracting applications from them” whereas,

“Selection is the next step, i.e. assessing the candidates by various means, and making a

choice followed an offer of employment.11

Edwin B. Flippo defined recruitment as the process of searching for prospective

employees and stimulating them to apply for jobs in the organization. According to P.

Subba Rao, “the recruitment is a process to discover the sources of manpower to meet the

requirement of the staffing schedule and to make effective measures for attracting that

manpower in adequate number to facilitate effective selection of an efficient



workforce.”12

The possible recruiting methods are “summaries into three categories:

direct, indirect and third party.”13

According to John, “Companies search for alternatives

to recruitment because of cost of recruiting. These alternatives are overtime, employee

leasing and temporary employment.”14 According to Dale Yoder , selection is the process

in which candidates for employment are divided into two classes those who are to be

offered employment and those who are not. Thus, “an effective selection programme is a

non-random process because those selected have been chosen on the basis of the

assumption that they are more likely to be „better‟ employees than those who have been

rejected.”

15

Similarly, after selection, “induction is the welcoming process to make the

new employee feel at large at home and generate in him a feeling of belongingness to the

organisation.”16

Objectives of the Study

1. To study and examine the significance of existing rules, methods and procedures

of Recruitment and Selection of manpower in the public and private sector banks

and its present status. The State Bank of India, Punjab National Bank and Union

Bank of India are the banks for study under public sector. The ICICI Bank,

HDFC Bank and Axis Bank are earmarked for the study under private sector.

2. To identify the shortcomings in the existing Recruitment and Selection Rules,

methods and procedures of Public and Private sector banks.

3. To suggest ways and means for effective Recruitment and Selection policies.

Research Methodology

An exploratory research of public and private sector bank recruitment and selection shall

be followed to carry out the study. The public sector banks depicted to carry out the study



are SBI, PNB and Union Bank of India whereas the private sector banks derived are

ICICI Bank, HDFC Bank and Axis Bank Ltd. The primary data for the study is collected

from the public and private banking industry. The data based on questionnaire and field

survey. Moreover, the internet is used for exploring the public and private banks

recruitment procedure and basic requirements. The secondary data of the study is

collected from published and unpublished records, reports of the Central and State

Government, internet search, magazines, newspapers and annual reports of the banks.

The Universe/Population of the study is earmarked from Delhi, Haryana and Western

Uttar Pradesh. The Sample Size of the study is 600 employees from all the banks. The

data is collected on the basis of Stratified random sampling.

Limitation of the Study

The study determined the adopted recruitment and selection practices and scope for

renovation in the public and private sector banks. It is therefore relevant to apprise that

the implications on employee‟s performance analysis with reference to the manpower

recruitment policies and practices in both the sectors are subject to some limitations.

Although, both public and private sector banks are serving to society but diversified into

different areas as far as recruitment is concerned because public banks are functioning

under apex control of government whereas the private banks are flourished with their

separate entity under the stipulated guidelines by the Reserve Bank of India. The

Recruitment Rules of any department is generally considered as their internal and secret

document and therefore faced problems to acquire them. However, for the purpose, the

advertisement appeared in the employment newspaper, local and national newspapers are

consulted and considered to work out the study.



Review of Literature

Banks play an active role in the economic development of a country. Their ability to

make a positive contribution in igniting the process of growth depends to a great extent

on the way the banking policies are pursued and the banking structure is resolved. It is,

therefore, no exaggeration to say that effective, efficient at disciplined banking system

greatly helps the process of economic development. It functions as a catalytic agent for

bringing about economical, industrial and agricultural growth and prosperity of the

country. The literature also indicates that some important banking issues like; impact of

job performance, technical efficiency and ranking of public sector banks in India, training

and development, e-HR concept, job satisfaction among bank employees and ways for

recruiting outstanding people have beautifully described. The reviews of the literature

are:

(1) Aswathappa, K. (2008) discussed about the barriers to effective selection. It was

stated that the main objective of the selection is to hire people having competence and

commitment but of course there are certain barriers. The impediments which check

effectiveness of selection are perception, fairness, validity, reliability and pressure.17

(2) Khandelwal, Anil K. (2005) examined about the criticality of HR Reforms for

Public Sector Banks in the New Era. It has been studied that the reforms process

embraced many components: financials, asset quality, prudential norms, technology,

opening of private sector banks and foreign banks and human resources (HR). As a part

of reforms, the autonomy was granted to the banks to define criteria and schemes like

VRS. The modern technology approach was also emphasized. Indian Banking industry

entered in the new era of technology and is in the process of up-gradating them at part

with the global banking. Although, the banks are tried their level best to up-grade them



but still behind as far as the HR Department of the Banks are concerned. To become

world class banks, it is therefore clear that PSBs have to embrace and enthusiastically

implement world class HR practices. With India emerging as a dominant knowledge

power, it is only in the fitness of things that Indian PSBs too accord high value to human

capital and take momentous steps forward to reach world class HR capital adequacy.18

(3) Saiyadain, Mirza S (2005) examined about the employees selection. The

organizational practices in selection in India vary considerably. The private and public

sector organizations differ in their selection practices. Selection for public sector

undertaking is governed by the principles laid down in 1961 and is operationalised by

Public Enterprises Selection Board, Union Public Service Commission, National Institute

of Bank Management, Subordinate Services Commission etc. The process of selection

begins with the understanding and definition of the job to be performed by those involved

in selection. These are then converted into job specifications (qualifications) which are

made public. Job opportunities should be publicized in such as way that they enable the

organization to draw upon prospective candidates from a wide cross-selection of the

society. The systematic and planned selection helps the organization to derive the

advantages such as; help to generate only relevant opportunities through a self-selection

process on the part of the potential applicants, choosing highly motivated employees,

ensures high degree of satisfaction among the employees, and image building of the

organization. The process of selection consists of three stages – recruitment, screening

and selection.19

(4) Gueutal, Hal G. and Stone, Dianna L. (2005) discussed about The e-HR. The

concept of HRM is very old but the concept of e-HR is modern enough. Although some

of the industries had adopted this modern concept whereas a huge number of



organizations are still in the process of adopting it. When the HR departments make use

of the Internet and related technologies to support their activities, the process becomes e-

HRM (where e stands for electronic). e-HRM is the complete integration of all HR

systems and processes based on common HR data and information and on interdependent

tools and processes. Fully developed e-HRM could provide the data gathering tools,

analysis capabilities, and decision support resources for HR professionals to hire, pay,

promote, terminate, assign, develop, appraise and reward employees in ways that fully

engage them in managing their own outcomes, maximize the contribution of each

employee, and support execution of firm‟s strategy.

20

(5) Joseph, Mathew; Sikhon, Yasmin; Stone, George and Tinson, Julie (2005)

studied about the use of banking technology in the UK. The study explored the ranking

of importance of selected technology on consumer perception of service delivery

performance. The introduction and growth of e-banking has been considered whilst

acknowledging that providing a quality service is viewed as a key strategic factors for

satisfaction in the UK financial sector in relation to e-banking were researched. The

importance-performance grid demonstrates that two of the factors and their underlying

attributes fall into the “Keep up the good work” quadrant and the other two factors fall

into the “Low priority” quadrant. The first two are areas the organization needs to

allocate resources in order to maintain the level of service they provide their clients.

From a strategic point of view, this grid provides a tool for strategy development as it

gives a clear picture of the factors that are critical for resource allocation.21

(6) Sureshchandar, G.S.; Rajendran, Chandrasekharan; Anantharaman, R. N.

and Kamalanabhan, T.J. (2002) investigated the Indian banking industry from the

perspective of the management. The differences between three groups of banks (public



sector banks, private sector banks and foreign banks) have been examined using ANOVA

and the post hoc Bonferroni. The quality service has become the key slogan in Indian

organizations as they strive for a competitive advantage in an atmosphere characterized

by liberalization, globalization and knowledge customers. The post hoc comparisons

reveal significant differences between public sector banks and private sector banks;

public sector banks and foreign banks, and private sector banks and foreign banks with

respect to nine out of the 12 TQS (total quality service) dimensions. These dimensions

are:22

(i) human resource management; (ii) technical system; (iii) service culture; (iv)

services capes; (v) social responsibility; (vi) union intervention; (vii) benchmarking; (viii)

customer focus; and (x) employee satisfaction.

(7) Thomas H. Stone (1989) examined about the nature of selection. Actually,

selection is the process of picking individuals from the available job applications with the

requisite qualifications and competence to fill jobs in the organization. Although, it is

true that some selection methods can be used within an organization for promotion or

transfer, but selecting applicants from outside the organization is focused area. The

recruitment and selection are the two crucial steps in the HR process and are often used

interchangeably. It has been mentioned that while the recruitment refers to the process of

identifying and encouraging prospective employees to apply for jobs, selection is

concerned with picking the right candidates from a pool of applicants. Recruitment is said

to be positive in its approach as it seeks to attract as many candidate as many unqualified

applicants as possible in order to identify the right candidate.23

(8) Heneman III, Herbert G. (1986) pin pointed about the poor recruitment. The

negative consequences of a poor recruitment process speak volumes about its role in a

firm. The failure to generate an adequate number of reasonably qualified applicants can



prove costly in several ways. It can greatly complicate the selection process and may

result in lowering of selection standards. The poor quality of selection means extra cost

on training and supervision. Furthermore, when recruitment fails to meet organizational

needs for talent, a typical response is to raise entry-level pay scales. This can distort

traditional wage and salary relationships in the company, resulting in unavoidable

consequences.24

(9) Dunn, J.D., and Stephens, E.C. (1972) examined the various techniques for

recruiting and appropriate person. They suggested and elaborated the possible methods

of recruitment comprising direct, indirect and third party. The direct include sending

traveling recruiters to educational and professional institutions, employees‟ contracts

with pubic and manned exhibits. One of the widely used direct methods is that of

sending of recruiters to colleges and technical schools. Indirect methods involve mostly

advertising in newspaper, on the radio, in trade and professional journals, technical

magazines and brochures. The third party method of recruitment includes the use of

commercial or private employment agencies, state agencies, the placement offices of

schools, colleges, recruiting firms, friends and relatives.25

(10) Yoder, D. Heneman, H.G., Turnbull, J.G., and Stone, C.H. (1968) examined

the Recruitment Policy. They observed that such a policy may involve a commitment to

broad principles such as filling vacancies with the best qualified individuals. The

recruitment policy in any enterprise played a very significant role in the sphere of

performance and optimum output of the particular organization. A good recruitment

policy must contain, (i) organization‟s objectives; (ii) identification of the recruitment

needs; (iii) preferred sources of recruitment; (iv) criteria of selection and preferences; and

(v) the cost of recruitment.26



Shortcomings in the existing Recruitment and Selection Rules, Methods and

Procedure in the Public and Private Sector Banks

The analysis has been prepared on the basis of the questionnaires collected from the

various branches of the State Bank of India, Punjab National Bank, Union Bank of India,

ICICI Bank, HDFC Bank and Axis Bank. Hence, the result of the analysis is as follows:

(1) The prospective employees do not apply for the bank job:

Employee Perception Frequency Percent

Strongly Disagree 111 18.5

Disagree 235 39.2Neither Agree Nor Disagree 132 22.0

Agree 119 19.8

Strongly Agree 3 .5

Total 600 100.0

Table 1.1

The comparative analysis between the Public and Private Sector Banks to identify

whether the prospective employees do not apply for the bank job is given in Table and

Fig. 1.2:

Table 1.2

Fig.1.2

Employees Perception Public Banks Private Banks Total1 2

Strongly Disagree 46 65 111

Disagree 84 151 235

Neither Agree Nor Disagree 88 44 132

Agree 81 38 119

Strongly Agree 1 2 3

600



Interpretation:

The Table 1.1 indicates that most of the employees in general disagree that the

prospective employees do not apply for the bank jobs. The comparison between the

Public and Private Sector Banks as shown in Table and Fig. 1.2 indicates that the Private

Bank employees disagree with the statement. As far as the Public Bank employees are

concerned their opinion is divided as 29.37%, 28% and 27% for neither agree nor

disagree, disagree and agree respectively. It revealed from the research that the bank

jobs are neither first choice for the general masses nor it is completely ignored sector.

It is felt that this is one of the most crucial factors of the banking industry that their

recruitment rules, methods and practices are not framed in such a manner that it

attracts the huge number of peoples. The banking industry needs to refrain in a manner

where the working in the banking industry attract the youths in terms of the recruitment

methods and practices so that it develop the sense of proud to be a bank employees.

(2) The Bank jobs are not attractive:



Disagree 300 50.0

Neither Agree Nor Disagree 32 5.3

Agree 124 20.7

Strongly Agree 12 2.0

Total 600 100.0Table 1.3

The comparative analysis between the Public and Private Sector Banks to identify that

the bank jobs are not attractive is given in Table and Fig. 1.4:



Table 1.4

Fig. 1.4

Interpretation:

The Table1.3 indicates that most of the employees in general disagree that the bank jobs

are not attractive which means that most of the employees considered that the bank jobs

are attractive. The comparison between the Public and Private Sector Banks as shown in

Table and Fig. 1.4 indicates that the Public Banks employees are equally agree and

disagree with the statement that bank jobs are not attractive. The Private Sector Bank

employees disagree with the statement and believe that bank jobs are very attractive in

comparison to the Public Bank employees. It emerged from the analysis that the banks

as a whole should initiate the process to make their selection criteria attractive so that

the people may feel proud on associating with the banking institutions.

(3) The Bank policies like employment, public relations, and management’s

attitude towards the employees are not positive:



Disagree 112 188 300


Agree 112 12 124


600





Disagree 268 44.7


Agree 132 22.0

Strongly Agree 12 2.0Total 600 100.0

Table 1.5

The comparative analysis between the Public and Private Sector Banks to identify

whether the Bank policies like employment, public relations and management‟s attitude

towards the employees are not positive is given in Table and Fig. 1.6:

Table 1.6

Fig. 1.6

Interpretation:

The Table 1.5 indicates that most of the employees in general disagree that the bank

policies like employment, public relations and management‟s attitude towards employees

are not positive. The comparative analysis between the Public and Private Sector Banks

as shown in Table and Fig. 1.6 indicates that Public and Private Bank employees disagree

with the statement. It has been found from the analysis that the bank management pay





Agree 72 60 132




due attention to their employees. The salary packages of the bank employees are higher

as compared to other institutions, the working environment, loan facilities etc. are the

attractions of the banks and management contributes for the same.

(4) The Trade Union influenced to consider the candidates within the bank:



Disagree 164 27.3


Agree 121 20.2


Total 600 100.0Table 1.7

The comparison between the Public and Private Sector Banks to identify that the trade

unions influenced to consider the candidates for various positions within the bank is

given in Table and Fig. 1.8:

Table 1.8

Fig. 1.8



Disagree 97 67 164


Agree 117 4 121


600



Interpretation:

The Table 1.7 indicates that most of the employees in general strongly disagree that the

trade unions influencing to consider the candidates within the bank for selections. The

comparative analysis between the Public and Private Banks as shown in Table and Fig.

1.8 indicates that the Public Bank employees in general agree whereas the Private Bank

employees strongly disagree that the trade unions are influencing in the selection process.

It has been emerged out that in the Public Banks the trade unions are affecting more

in selection or other demands, but, the Private Banks is free from any union activities.

The employees unions are registered in the Public Banks whereas the union activities are

prohibited in the Private Bank

(5) The Government policies envisaged to recruit candidates of certain

community:




Agree 240 40.0


Total 600 100.0

Table 1.9

The comparison between the Public and Private Sector Banks to identify whether the

Government policy envisages recruiting candidates of certain communities is given in

Table and Fig. 1.10:

Employees Perception Public Banks

1

Private Banks

2Total


Disagree 44 196 240


Agree 228 12 240


600

Table 1.10



Fig. 1.10

Interpretation:

The Table 1.9 indicates that equal number of employees agree and disagree that the

Government policies envisaged to recruit certain communities. The comparison between

the Public and Private Sector Banks as shown in Table and Fig. 1.10 indicates that the

Public Bank employee agree whereas the Private Bank employees disagree with the

statement. Although, it is affirmative action being accepted by the society, hence,

recruitment of reserved categories such as SC/ST/OBC is strictly admissible as per

rules. However, the Private Banks are not adhered to with the reservation policies.

(6) The recruitment process is very lengthy:



Disagree 204 34.0


Agree 148 24.7


Table 1.11

The comparison between Public and Private Sector Banks to identify whether the

recruitment process is very lengthy is given in Table and Fig. 1.12:







Agree 128 20 148Strongly Agree 32 8 40

600

Table 1.12

Fig. 1.12

Interpretation:

The Table 1.11 indicates that most of the employees in general are disagree that the

recruitment process is very lengthy in the banks. The comparison between the Public and

Private Sector Banks as shown in Table and Fig. 1.12 indicates that the Public Bank

employees agree whereas the Private Bank employees disagree with the statement. It

revealed from the analysis that the recruitment process in Public Banks is slow in

comparison with the Private Banks. In order to strengthen and make the recruitment and

selection process more transparent, the forecasting of vacancies are required. The

lengthy recruitment process in the Public Banks is one of shortcomings in the recruitment

and selection aspects.



(7) The bank suffers with acute shortage of manpower:




Agree 340 56.7


Total 600 100.0

Table 1.13

The comparative analysis between the Public and Private Sector Banks to identify that

whether the banks suffer with acute shortage of manpower is given in Table and Fig.

4.36:



Disagree 4 152 156


Agree 264 76 340


600

Table 1.14

Fig. 1.14

Interpretation:

The Table 1.13 indicates that most of the employees in general agree that the banks suffer

with acute shortage of manpower. The comparative analysis between the Public and

Private Banks as shown in Table and Fig. 1.14 indicates that the Public Bank employees



agree whereas the Private Bank employees disagree with the statement. It is emerged

from the analysis that the Public Banks are facing the huge shortage of manpower

which is a major shortcoming.

(8) The delay occurred in selection as the operating branches cannot recruit the

staff as and when required:



Disagree 168 28.0


Agree 240 40.0Strongly Agree 92 15.3

Total 600 100.0

Table 1.15

Comparison between Public and Private Sector Banks to identify whether the delay

occurred in selection as the operating branches cannot recruit the staff as and when

required is given in Table and Fig. 1.16:



Disagree 52 116 168


Agree 120 120 240


600

Table 1.16

Fig. 1.16



Interpretation:

The Table 1.15 indicates that most of the employees in general agree that the delay

occurred in selection as the operating branches cannot recruit the staff as and when

required. The comparative analysis between Public and Private Banks as shown in Table

and Fig. 1.16 indicates that both the bank employees agree with the statement. However,

38.67% Private Bank employees disagree. It revealed from the study that the operating

branches cannot recruit the staff against the resultant vacancies because the roster is

being maintained in the headquarters of the bank and the recruitment process is also

initiated there itself .

(9) The central office is not familiar with the requirement of different branches:



Disagree 275 45.8


Agree 191 31.8


Table 1.17

The comparative analysis between the Public and Private Banks to identify whether the

central office is not familiar with the requirements of different branches is given in Table

and Fig. 1.18:





Agree 141 50 191


600

Table 1.18



Fig. 1.18

Interpretation:

The Table 1.17 indicates that most of the employees in general disagree that the central

office is not familiar with the requirement of different branches. Moreover, the

comparative analysis of the Public and the Private Banks as shown in Table and Fig. 1.18

indicates that the Public Bank employees agree whereas the Private Bank employees

disagree with the statement. It is evident from the analysis that the Central Office of the

Public Banks sometimes not able to analyze the complete requirements of the branches

whereas the Private Banks are fully aware of the same. Thus, it is earmarked as

shortcoming in the existing recruitment and selection process.

(10) Frequent problems in interchangeability of staff between branches:



Disagree 233 38.8


Agree 213 35.5Strongly Agree 27 4.5

Total 600 100.0

Table 1.19

The comparison between the Public and Private Sector Banks to identify whether the

frequent problem in interchangeability of staff between branches is given in Table and

Fig. 1.20:







Agree 140 73 213Strongly Agree 16 11 27

600

Table 1.20

Fig. 1.20

Interpretation:

The Table 1.19 indicates that most of the employees in general disagree that there are

frequent problems in interchangeability of the staff between branches whereas 35.5%

employees agree the same. Moreover, the comparative analysis between Public and

Private Banks as shown at Table and Fig. 1.20 indicates that Public Bank employees

agree whereas the Private Bank employees disagree that there are frequent problems in

interchangeability of staff between the branches. It has been observed that the Public

Banks are transferring their employees from one branch to other branch. The Private

Banks are enforcing some placements, but not transferring the quantum of employees

regularly as done by the Public Banks. It is felt that the recruitment and selection

methods must clear and attracting to the youths.



(11) Favoritism in promotions and selections:




Agree 216 36.0


Total 600 100.0

Table 1.21

The comparison between the Public and Private Sector Banks to identify that whether

there is favoritism in promotions and selections is given in Table and Fig. 1.22:



Disagree 168 72 240


Agree 72 144 216


600

Table 1.22

Fig. 1.22

Interpretation:

The Table 1.21 indicates that most of the employees in general disagree that there is

favoritism in promotions and selections in the banks. The comparative analysis between

the Public and Private Banks as shown in Table and Fig. 1.22 indicates that Public Bank



employees disagree whereas the Private Bank employees are agree that there are

favoritism in the promotions and selections in the banks. It is discovered from the study

that as the Public Banks are adhering the established procedure for the recruitment,

hence, the chance of favoritism is less as compared in the Private Banks. However, the

discrimination in appointments is found more in the Private Banks. It is further exposed

that the Reporting Officer of an employee recommended the name of his/her subordinate

for promotions. As the Private Banks are promoting the employees consequent upon the

performance of the employees. Hence, the chance of favoritism is more.

(12) There is ban on new recruitment:



Disagree 276 46.0


Agree 12 2.0


Total 600 100.0

Table 1.23

The comparative analysis between the Public and Private Banks to identify whether there

is ban on new recruitments is given in Table and Fig. 1.24:



Disagree 180 96 276

Neither Agree Nor Disagree 8 8 16Agree 8 4 12


600

Table 1.24



Fig. 1.24

Interpretation:

The Table and Fig. 1.23 indicates that equal number of employees are strongly disagree

and disagree that there is any ban on the new recruitments in the banks. The comparative

analysis between the Public and Private Banks as shown at Table and Fig. 1.24 indicates

that the Public Bank employees disagree whereas the Private Bank employees strongly

disagree that there is ban on the new recruitment. It is palpable to explain that by way

back due to overstaffing there was ban on the recruitments in the Public Banks. But,

the present research study indicates that the ban has been vanished from the

recruitment. Similarly, the ban on recruitments is not found in the Private Banks.

Suggestions and Conclusion

The following are the conclusion of the study:

(i) The Banks jobs are neither the first choice of the general masses nor it is

completed ignored.

(ii) Bank employees feel that the bank jobs are not attractive.

(iii) Due influence of union is found in the Public Bank during

promotions/selections and similarly favoritism of top management in

promotions and selection in the Private Banks.

(iv) Slow recruitment process and acute shortage of manpower in Public Banks.



(v) Frequent transfers in the Public Sector Banks affected the working of the

employees.

The following are the suggestions:

(i) Bank jobs should be made attractive by enhancing salary and other perks.

(ii) All Indian DGM level examination on the pattern of Civil Services

Examination should be introduced by a constituted Banking Recruitment

Board.

(iii)

Introduction of young blood in the banking industry.

(iv) Selection and promotion should be based on the performance of the

employees by reducing the favoritism and union influence.

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