EFFECTIVENESS OF TRAINING AND DEVELOPMENT PROGRAMMES- A CASE STUDY OF RATNAKAR BANK EMPLOYEES IN KOLHAPUR DISTRICT

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1 EFFECTIVENESS OF TRAINING AND DEVELOPMENT PROGRAMMES- A CASE STUDY OF RATNAKAR BANK EMPLOYEES IN KOLHAPUR DISTRICT Mr. Shekhar S. Gangadhar MBA (Marketing & HRM) Assistant Professor (SGI Atigre, Kolhapur) Maharashtra ABSTRACT In India the banking industry becoming more competitive than ever, private and public sector banks are competing with each other to perform well. The executives of the bank are now in the position to modify their traditional human resources practice in to innovative human resources practices in order to meet the challenges from other competitive banks. The Human Resource Development department has to play a more proactive role in shaping the employees to fight out the challenges. The banks not only have to make plans and policies and devise strategies, the actual functionaries have to show competence and effectiveness in executing the said policies and strategies. In commercial organizations like banks, HRD departments have the advantages of not being excessively burdened with day to day problems of running the banks or ensuring profitability of individual transactions. They are in positions to take strategic and long term view of the competitive advantage of the human resources as well as identify areas of professional weaknesses to rectify well before any damage takes place in the organization. Indeed they have the golden opportunity to implement the desired HR policies to improve and strengthen the organization to withstand the onslaught of fierce competition in future. KEYWORDS: Training & Development, Bank Employees, HRM in banks, HRD in banks, RATNAKAR bank. INTRODUCTION In India the banking industry becoming more competitive than ever, private and public sector banks are competing with each other to perform well. The executives of the bank are now in the position to modify their traditional human resources practice in to innovative human resources practices in order to meet the challenges from other competitive banks. It is aimed to bring out those innovative and best human resource practices developed and found successful that made them more competitive in the present competitive banking environment in the various human resource areas where they want to gain competitive advantage over the rival banks in order to attract and retain the talents and to differentiate their human resources practice and other services than the competitive banks. It is aimed to bring out those 1

2 innovative and best human resource practices developed and found successful that made them more competitive in the present competitive banking environment in the various human resource areas where they want to gain competitive advantage over the rival banks in order to attract and retain the talents and to differentiate their human resources practice and other services than the competitive banks. A major challenge for many banks will be to develop the special competencies and skills for credit appraisal and risk management in an environment of deregulation and openness. As emphasized by Dr. Bimal Jalan, Governor of Reserve Bank of India, the recommendations of the second Narasimhan Committee could provide useful guidance to banks particularly in recruiting skilled manpower from the open market, including lateral induction of experts and deployment of existing staff in new businesses and activities after suitable training. In this context, the importance of building and reinforcing corporate vision and culture that fosters creativity and recognizes talent and merit cannot be relegated to the behind. The Human Resource Development department has to play a more proactive role in shaping the employees to fight out the challenges. The banks not only have to make plans and policies and devise strategies, the actual functionaries have to show willingness, competence and effectiveness in executing the said policies and strategies. In commercial organizations like banks, HRD departments have the advantages of not being excessively burdened with day to day problems of running the banks or ensuring profitability of individual transactions. They are in positions to take strategic and long term view of the competitive advantage of the human resources as well as identify areas of professional weaknesses to rectify well before any damage takes place in the organization. Indeed they have the golden opportunity to implement the desired human resources policies to improve and strengthen the organization to withstand the onslaught of fierce competition in future. Based on this perspective, an attempt has been made to highlight the factors which, if implemented, may lead to substantial transformation of banks to compete in an environment of risks and uncertainty. REVIEW OF LITERATURE Banking is a prime mover in the economic development of a nation and research is so essential to improve its working results. The management without any right policy is like building a house on sand. It means an effective management always needs a thorough and continuous search into the nature of the reasons for, and the consequences of organization. In line with this, some related earlier studies conducted by individuals and institutions are reviewed to have an in-depth insight into the problem and exploring the reformation of banking policy. An overall view of a few studies is presented below. Branch expansion is a thrust for economic development. Sharma said: The expansion of banking facilities was uneven and lopsided, and banks were concentrating their operations in metropolitan cities and towns. A fairly large number of rural and semi urban centers with reasonable potentialities of growth failed to attract the attention of commercial banks. As far as the deposit mobilization in the rural areas is concerned, much remains to be done. 1 The commercial banks had made a commendable progress in extending the frontiers of banking both geographically and functionally and, as a result, cover a wider area and much larger segment of population than did it in the pre-nationalization. The branching activities of banks particularly in the rural areas are unprecedented in the banking sector of India. However, coming to the issue of 2

3 dispersion of their lending activities, we witness that the performance of commercial banks was quite unimpressive and the urban orientation still appears to be persisting. The creditdeposit ratio of banks in Bombay, Calcutta, Madras and Delhi cities has remained almost at 100 percent during the period V.N. Saxena stated that Improvement in the systems and procedures of inspection of stocks, maintenance of stock register is required. Reforms should be initiated in extension of sponsorship schemes, recovery and consultancy. 3 S. Chandran stated that Legal action should not be the inevitable last step in the process; branches should be educated to evaluate this option for recovery, like any other option, objectively before launching the same. Building up an information infrastructure at the apex level first and at the lower tiers subsequently should be initiated. 4 In a study on myth of viability of rural branches, it is argued that there is nothing inherently non-viable about banking in rural areas. Inadequate management competence in individual bank is a major cause of the non-viability of rural branches of many public sector bankls. 5 A.Gnanadoss, highlighted the branch expansion statistics from 1969 to 1999 with a clear comparison of rural branch expansion with total branch expansion. The study includes comparison of structural deposits and credits of all scheduled commercial banks from 1950 to He has compared the performance of scheduled commercial banks in priority sector lending during T Abhiman Das and Saibal Ghosh s sample study conducted to know the performance of bank CEOs in the era of corporate governance, tried to identify the adaptability characteristics of CEOs in terms of technology. The study also states that CEOs of poorly performing banks are likely to face higher turnover than CEOs of well performing ones. 7 Committee on Technology Upgradation in the Banking Sector, Constituted by R.B.I. with Dr A.Vasudevan, as Chairman submitted report in The Committee has strongly advised to adopt latest technology in banking sector.8 The Government of India set up a nine-member committee under the chairmanship of Narasimham, former Governor of Reserve Bank of India, to examine the structure and functioning of the existing financial system of India and suggest financial sector reforms. The report of the committee was tables in the Parliament on December 17, The Finance Ministry of Govt. of India appointed once again a committee under the chairmanship of Sri M. Narasimhan to recommend reforms of the Indian banking sector. Reviewing the developments that have taken place during the period , the committee made recommendations for reforming the banking sector. The Report was submitted in April Madhu Lincoln, Rama Krishna and Venu Gopal Rao, conducted a study on HRM Practices in Public Sector and Private Sector Banks and has suggested that HR policies of Public Sector Banks should be revised there by making them more competitive in this challenging era of globalisation.11 3

4 NEED FOR THE STUDY The last decade, which marks the era of liberalization and reforms in the country, has been eventful one for the Banking industry changing the face of the industry far beyond recognition. Technology has brought in substantial changes in banking in terms of customer services and new product innovations. The introduction of Voluntary Retirement Scheme (VRS) in public sector banks demonstrated the resolve of the Banking sector to take hard decisions to gear up themselves in terms of human resources for today s highly competitive environment. On the other hand private sector banks are more dynamic in adopting latest Human Resource Practices. It is in this scenario that a study on Effectiveness of Training and Development Programs with specific reference to Ratnakar bank Employees in Kolhapur District is to be examined. OBJECTIVES OF THE STUDY The following are the objectives of the study: To study about the training and development programmes offered for Ratnakar Bank employees. To evaluate the effectiveness of the training and development programmes. To ascertain satisfaction levels of employees on improving the present system To seek the suggestions from by the employees on improving the present system. METHODOLOGY AREA SELECTION FOR PRIMARY DATA Kolhapur District of Maharashtra has been selected for the purpose of primary data collection. PRIMARY AND SECONDARY DATA: To carry out the objectives, the researcher has used both primary and secondary data. The secondary data and information have been collected from various sources like business newspapers, journals, magazines, RBI Reports and publications, IBA publications, NIBM publications etc. Primary data has been collected through structured questionnaire from the employees of Andhra Bank (public sector bank) and ING Vysya (private sector bank). 4

5 TABLE 1: DETAILS OF RATNAKAR BANK IN KURNOOL DISTRICT Name of the Branch No. of Managerial cadre employees No. of Officer cadre employees No. of Clerical and other lower cadre employees Total No. of Employees in the branch KOLHAPUR (TARABAI PARK) KOLHAPUR(RAJARAMPURI) RUKADI ICHALKARANJI JAYSINGPUR HUPARI NIPPANI RANGOLI TOTAL Source: Compiled from bank manuals. SAMPLE OF THE STUDY: 85 employees covering all Ratnakar bank branches in Kurnool District have been considered for the study at random. TABLE 2: DETAILS OF SAMPLE SIZE Designation Total No. of employees Sample size Percentage Managers % Officers % Clerk and other lower % cadres Total % Source: Field survey SAMPLING TECHNIQUE Simple random sampling technique has been employed in this study. DATA ANALYSIS AND INTERPRETATION The primary and secondary data collected from different sources have been tabulated and interpreted meaningfully. The information has been represented using bar charts, pie diagrams, graphical method etc. 5

6 SCOPE OF THE STUDY Scope of the study has been confined to Ratnakar bank branches located in Kolhapur District of Maharashtra only. TABLE 3: DETAILS OF NUMBER OF TRAINING & DEVELOPMENT PROGRAMMES ATTENDED NO. OF PROGRAMMES NO. OF PROGRAMMES PERCENTAGE LESS THAN 3 LESS THAN ABOVE TOTAL INFERENCE: It can be inferred from the above table that, majority of 74.12% of the employees have attended more than 6 training and development programs, 21.18% of the employees have attended more than 3 and less than 6 training and development programs and 4.71% of the employees have attended less than 3 training and development programs. TABLE 4: OPINION ABOUT THE NECESSITY OF TRAINING & DEVELOPMENT PROGRAMMES Strongly Agree Agree To Some Extent Disagree Strongly Disagree 0 0 6

7 INFERENCE: It can be understood from the above table that, majority of 54.12% of the employees strongly agreed about the necessity of training and development programs, 40.00% of the employees have agreed about the necessity of training and development programs, 3.53% of the employees Disagreed about the necessity of training and development programs and 2.35% of the employees have agreed to some extent about the necessity of training and development programs. TABLE 5: OPINION TOWARDS TRAINER S SUBJECT KNOWLEDGE Excellent Good Fair INFERENCE: It can be interpreted from the above table that, 49.41% of the employees rated trainer s subject knowledge as Excellent, 49.41% of the employees rated trainer s subject knowledge as Good and 1.18% of the employees rated trainer s subject knowledge as Fair. TABLE 6: OPINION TOWARDS TRAINER S EXPERIENCE Excellent Good Fair INFERENCE: It can be seen from the above table that, majority of 52.94% of the employees rated trainers experience as Good, 44.71% of the employees rated trainers experience as Excellent and 2.35% of the employees rated trainers experience as Fair. 7

8 TABLE 7: OPINION TOWARDS TRAINER S PREPARATION Excellent Good Fair INFERENCE: It can be concluded from the above table that, majority of 56.47% of the employees rated trainers preparation as good, 40.00% of the employees rated trainers preparation as Excellent and 3.53% of the employees rated trainers preparation as Fair. TABLE 8: OPINION TOWARDS TRAINER S STYLE AND DELIVERY Opinion Sample Size Sample Size Excellent Good Fair INFERENCE: It can be visualized from the above table that, majority of 56.47% of the employees rated trainers style and delivery as Excellent, 36.47% of the employees rated trainers style and delivery as Good and 7.06% of the employees rated trainers style and delivery as Fair. TABLE 9: OPINION TOWARDS TRAINER S INTERACTION WITH THE GROUP Excellent Good Fair INFERENCE: It can be inferred from the above table that, 49.41% of the employees rated trainers interaction with the group as Excellent, 44.71% of the employees rated trainers interaction with the group as Good and 5.88% of the employees rated trainers interaction with the group as Fair. 8

9 TABLE 10: OPINION TOWARDS TRAINER ABOUT CREATING A LEARNING ATMOSPHERE Excellent Good Fair INFERENCE: It can be understood from the above table that, majority of 61.18% of the employees rated trainers creating learning atmosphere as Excellent, 34.12% of the employees rated trainers created learning atmosphere as Good and 4.71% of the employees rated trainers created learning atmosphere as Fair. TABLE 11: OVERALL RATING TOWARDS THE TRAINER OF T&D PROGRAMMES Excellent Good Fair INFERENCE: It can be identified from the above table that, majority of 64.71% of the employees given overall rating for trainers as Good, 28.24% of the employees given overall rating for trainers as Excellent and 7.06% of the employees given overall rating as Fair. TABLE 12: RATING TOWARDS IMPROVEMENT IN INTERPERSONAL RELATIONS Excellent Good Fair INFERENCE: It can be inferred from the above table that, 49.91% of the employees given rating for improvement in interpersonal relations as Good, 45.88% of the employees given 9

10 rating for improvement in interpersonal relations as Excellent and 4.71% of the employees given rating for improvement in interpersonal relations as Fair. TABLE 13: RATING TOWARDS IMPROVEMENT IN PROBLEM SOLVING ABILITY Excellent Good Fair INFERENCE: It can be understood from the above table that, majority of 64.71% of the employees given rating for improvement in problem solving abilities as Good, 29.41% of the employees given rating for improvement in problem solving abilities as Excellent and 5.88% of the employees given rating for improvement in problem solving abilities as Fair. TABLE 14: RATING TOWARDS IMPROVEMENT IN DECISION MAKING SKILLS Excellent Good Fair INFERENCE: It can be identified from the above table that, majority of 62.35% of the employees given rating for improvement in decision making skills as Good, 28.24% of the employees given rating for improvement in decision making skills as Excellent and 3.53% of the employees given rating for improvement in decision making skills as Fair. TABLE 15: RATING TOWARDS IMPROVEMENT IN TEAM EFFECTIVENESS Excellent Good Fair INFERENCE: It can be observed from the above table that, majority of 78.82% of the employees given rating for improvement team effectiveness as good, 17.65% of the 10

11 employees given rating for improvement team effectiveness as Excellent and 3.53% of the employees given rating for improvement in team effectiveness as Fair. TABLE 16: RATING TOWARDS IMPROVEMENT IN COORDINATION AMONG THE EMPLOYEES Excellent Good Fair INFERENCE: It can be analyzed from the above table that, majority of 52.94% of the employees given rating for improvement in coordination among the employees as Good, 41.18% of the employees given rating for improvement in coordination among the employees as Excellent and 4.71% of the employees given rating for improvement in coordination among the employees as Fair. TABLE 17: OVERALL RATING FOR TRAINING & DEVELOPMENT PROGRAMMES Excellent Good Fair INFERENCE: It can be interpreted from the above table that, majority of 87.06% of the employees given overall rating for training and development programs as Good, 10.59% of the employees given overall rating for training and development programs as Excellent and 2.35% of the employees given overall rating for training and development programs as Fair. LIMITATIONS OF THE STUDY In a study of this magnitude though, meticulous care has been taken in each and every aspect of study. Certain limitations are likely to be there in the study. 1. Some respondents were not aware of certain procedures and aspects of HRM. 11

12 2. A few respondents were hesitant to give details. 3. There might be a sense of bias crept in answers given by the respondents. REFERENCES 1. Sharma, B.P., The Role of Commercial Banks in India s Developing Economy, Sultan Chand and Company Pvt. Limited, New Delhi, 1974, p Economic Research and Planning Department. Concentration of Banking in Major Cities, Pigmy Economic Review, Vol.23, No.1, August 1977, p V.N. Saxena, Promotion of priority sector advances: Small scale industries, Project report, NIBM, Pune, 1978, p S. Chandran, A Study of Non-performing assets of Bank of India (A management perspective), Project report, NIBM, Pune, 1989, p Ramappa, P., Performance of Regional Rural Banks, with Special Reference to the Rayalaseema Region of Andhra Pradesh, S.K.University, Anantapur, 1996, p A.Gnanadoss, Perspectives of Indian banking system Indian Economic Panorama, Special Banking Issue, 2001, p Abhiman Das and Saibal Ghosh, Corporate governance in Banking system - An empirical investigation, Economic and Political Weekly, 2004, p Dr. A. Vasudevan, Report of the Committee on Technology Upgradation in the Banking Sector, RBI, NewDelhi, S.N. Maheshwari, R.R.Paul, Banking and Financial Services, Kalyani Publishers, Ludhiana, 2001, p S.N. Maheshwari, R.R.Paul, Banking and Financial Services, Kalyani Publishers, Ludhiana, 2001, p Madhu Lincoln, Rama Krishna and Venu Gopal Rao, HRM Practices in Public Sector Banks and Private Sector Banks, Manglam Publications, Delhi,