To Study the Human Resource Management Practices for Innovative Training and Development used by public and private sector banks in Indore

The need of financial services should not be overlooked, particularly in a rising nation like India. The Indian government began the process of nationalizing banks in 1969 for this reason. Since then, the nationalized banks have been essential to the nation's prosperity and to the provision of a range of financial services to the populace. [1] The banking industry's reach has expanded with the implementation of the New Economic Reforms, including globalization, privatization, and liberalization. Because of this, the labor market for bank workers and job seekers has expanded, forcing bank management to implement specific HRM practices to stay in business and retain its disgruntled staff. [2]

The people who work for a company are the focus of human resource management, or HRM. It represents a new way of thinking, a new perspective, a new method, and a new approach that sees employees as an organization's assets and resources rather than liabilities. To put it another way, human resource management is the process of managing an organization's workforce in a humane manner. [3] The management might see his employees as one of his most valuable assets thanks to the human resources approach to manpower. Developing and efficiently using the workforce is a good idea for the organization's sake as well as for the personal development and happiness of the individuals involved. Therefore, human resource management is a system that prioritizes the development of human resources on the one hand and efficient personnel management on the other, ensuring that employees are treated with dignity at work. [4]

The planned and cohesive approach to managing an organization's most valuable assets its employees who both individually and collectively help to accomplish the company's goals is known as human resource management. It is not only restricted to certain duties; it refers to the organization's overarching ideology and the proper way to manage its workforce. HRM prioritizes commitment and congruence above control and compliance. HRM encompasses all managerial choices and actions that have a direct impact on or influence the organization's human resources. The sources of long-term competitive advantage and important strategic levers are human resources. As a result, the corporate strategy should prioritize HRM practices. [5]

One of the business operations that has seen major transformation in recent decades is human resource management, or HRM. A substantial body of literature advocating for a more strategic role for human resources has emerged since the early 1980s. The belief that people and how they are handled are essential to an organization's performance and may be a source of long-term competitive advantage is the reason for the growing interest in human resources. Despite the fact that HRM is already regarded as crucial, experts and scholars concur that its significance will only increase going forward. [6]

People are often cited as an organization's most important resource. Such assertions may be found in the mission statement and annual reports of organizations. An organization is, of all, just a collection of individuals whose actions have been organized and synchronized to achieve organizational goals. If it is made up of the right people, a company that produces products and services has a strong chance of surviving and growing. [7]

This applies to every organization. Similarly, humans need organizations. Most individuals have to work to provide for their families and themselves. However, there are a variety of reasons why individuals work besides financial stability. For instance, a lot of people work to stay occupied, feel valuable, and accomplish something. They want to test and push their limits, or they want to be recognized and elevate themselves. People and organizations come together to address these diverse demands, but sadly, this union seldom reaches perfection. Organizations have a number of challenges in achieving their objectives, and similarly, every employee reports some issues in their efforts to be effective and productive at work and to be content with their work life. Reducing these issues and barriers is the task of human resource management. [8]

The study's universe consists of Indore City bank workers. According to the chief planning officer, there are 386 bank branches operating in Indore District, 283 of which are Nationalized Bank branches that serve the local population's financial requirements in Indore City. In Indore City, each branch serves an average of 25,000 people. Four banks with the most branches two from the public sector and two from the private sector have been chosen. Furthermore, no approved source has provided bank-by-bank information on the number of workers in the research region. Therefore, it has been agreed to gather opinions on a few chosen HR practices from 100 workers of each bank, for a total sample size of 400. Therefore, 400 bank workers from four chosen banks were given the pre-tested questionnaire; however, only 80 employees from each bank replied and returned the completed forms, reducing the sample size to 320, which includes 80 respondents from each chosen bank.

Data Collection

Both primary and secondary data served as the foundation for this investigation. Books, journals, and theses both published and unpublished are examples of secondary sources. A well thought-out and validated questionnaire has been utilized to gather the main data. As previously mentioned, four banks in the Madhya Pradesh state city of Indore have been identified as having the most branches and the highest level of popularity for the purposes of the study. Of these, two are public sector banks, State Bank of India (132 branches) and Andhra Bank (72 branches), and two are private sector banks, Axis Bank (10 branches) and ICICI Bank (12 branches). Eighty workers have been identified from each bank, making the total sample size 320.

Sample Design

Multi-stage stratified random sample procedures have been used to choose the sample respondents. Public sector banks and private sector banks are the two strata into which the whole banking industry has been divided in the first stage. Axis Bank and ICICI Bank from the second stratum and State Bank of India and Andhra Bank from the first stratum were chosen at random for the second stage. Eighty workers from each of the chosen banks were identified in the third step, making 320 samples in total.

Techniques Of Analysis

Simple statistical methods, such as averages and standard deviations, have been used to analyze the data. The SPSS program has been used to analyze the data.

The present study identified seven innovative practices in training and development—testing trainees, job rotation, customized training, regular training, encouragement to apply training learning, and arrangement of special projects—and presented the perceptions of respondents on these practices below.

Table 1: Respondent distribution based on their attitude towards the selection test's written component

According to their perspective on the statement "Presence of written examination procedure for trainee-selection," the distribution of respondents is provided in Table. Based on the data in the table, it is clear that the vast majority of respondents from both public and private sector banks use some kind of written test to choose trainees. The reason for this is that written exams are being used by almost all firms nowadays to choose trainees, and the banking industry is no exception.

Table 2: Respondents' views on the availability of job rotation as broken down by category

Based on their view of the statement "Provision of job rotation for giving me proper exposure of different departments," the distribution of responses is shown in the table. In contrast to private sector banks, where only around 14% of respondents felt this way, 50.60% of those working in public sector banks did. Also, looking at the data in the table, we can see that 12.50% of public sector bank respondents and 17.50% of private sector bank respondents ranked this statement as "High Extent" or "Very High Extent," respectively. It follows that, in contrast to public sector banks, private sector banks provide work rotation programs to ensure that its personnel have experience in a variety of divisions.

Table 3: Respondent distribution based on attitude toward individualized training programs

The following table shows the percentage of people who agreed or disagreed with the statement "Presence of special and separate/customized training programs for different levels of employees "based on their opinion. The data clearly shows that public sector banks do not have as many specialized and tailored training programs for various levels of staff as private sector banks. Reason being, only 17.50 percent of respondents from private banks agreed with the statement in question, compared to 58.80 percent from public sector banks. The data also shows that between 6.90 and 1.20 percent of public sector bank respondents evaluated this statement as "High Extent," while between 23.10 and 50.00 percent of private sector bank respondents gave the same rating.

Table 4: Respondent distribution based on attitude toward training needs evaluation

With respect to the statement "Presence of continuous training need assessment," the distribution of responders is shown in Table. From the data in the table, we can deduce that 16.20 percent of public sector bank employees and 3.10 percent of private sector bank employees rated this statement as "High Extent" or "Very High Extent," respectively. Table data also shows that public sector banks use continuous training need assessment on an as-needed basis (60 percent), whereas private sector banks use it less often (3.10 percent). The results show that public sector banks do not use continual training need assessment as often as private sector banks do. Regardless of whether they are public or commercial institutions, all banks are implementing ongoing training need assessment programs to boost staff productivity.

Table 5: Respondent distribution based on attitude toward formal training program arrangement

According to their perspective on the statement "Arrangement of formal training programs at regular intervals," the distribution of responses is shown in the table. According to the data in the table, public sector banks had a percentage of 30.00 for "High Extent" and 38.10 for "Very High Extent," whereas private sector banks had a percentage of 33.10 and 44.40. The chart also shows that public sector banks had a lower proportion of respondents who answered "Occasionally" (10.00%) compared to private sector banks (26.20%). Based on the data in the table, it is evident that public sector banks do not regularly schedule formal training programs as private sector banks do.

Table 6: Respondent distribution based on their attitude towards putting training information into practice at work

Based on their view of the statement "Encouragement to apply what I have learned in my training program at workplace," the table shows the distribution of responders. From the data in the table, it is clear that public sector banks do not lay as much emphasis on encouraging employees to put their training into practice on the job as private sector banks do. Table data shows that among public sector banks, 28.10 percent had a "High Extent" perception of the statement, whereas among private sector banks, that number drops to 25.60 percent and 51.90 percent, respectively. Looking at the data in the table, we can see that public sector banks had a percentage of respondents who said they felt this way "Occasionally," while private sector banks had a number 3.10 who said the same. Overall, it is observed that private sector banks are more likely to encourage their workers to apply what they learn in training to their job than public sector banks.

Table 7: Respondent distribution based on attitude toward special project teams

Based on their view of the statement "Selection of the staff for special project teams meant for bank's effectiveness," the distribution of responses is provided in Table. According to the data in the table, public sector banks had a response rate of 21.90 percent and private sector banks of 37.50 percent for the statement with a "High Extent" perception. The chart also shows that in public sector banks, 48.10 percent of respondents saw it as "Occasionalally," whereas in private sector banks, 9.40 percent said the same. It follows that private sector banks are more likely to hand-pick staff for efficiency-focused project teams than their public sector counterparts.

The study's conclusions highlight how important HRM procedures are to promoting organizational effectiveness and employee growth in the banking industry. It has been noted that private sector banks use more creative ways to training and development, such as consistent formal training programs and more support for implementing training results in the workplace. Although they excel in some areas, such job rotation and assessing training requirements, public sector banks fall short in using HRM practices to their maximum capacity. Banks, especially those in the public sector, must implement innovative HRM practices that meet the changing needs of the market in order to remain competitive. This entails funding specialized training initiatives, encouraging a culture of lifelong learning, and creating systems to encourage staff members to use their abilities efficiently.