Introduction
The existence of a human resources department is vital to overall productivity and efficiency of the strong workforce in any thriving company. Most of the successful organizations have an emphasis on the role of the human resources. Human resources can be one of the most valued and respected departments in an organization it is because their job is focused on people and people are the company’s most important asset. In the field of work of human resource manager and its staff, implemented certain strategies to meet the requirements of an employee especially in most of the banks and other financial institutions.
Background of the Study and Problem Statement
There are various strategies being applied in the banking and financial institutions and those strategies remains the core function of the human resource (Lawler and Siengthai, 1997; Jalan, 2002a). Financial industry has a critical work environment and the intervention of the people is appreciated in every financial institutions. And to be successful in the industry, what is the human resource management’s responsibility in terms of planning and performance?
Research Objectives
The first objective of the study is to highlight the knowledge and experience in human resource management, especially in those areas where there is a weak function. Second is to incorporate the training and development in the planning processes. And third is to emphasize the importance of the human resource management and strategic planning to satisfy the workforce’s performance in the entire organization.
Research Questions
The study provided certain questions to identify the contribution of HR planning and its workforce’s performance in the industry. Since the financial industry is one of the important industries in the economy therefore, the success of the financial institutions is reflected on the economy.
1. What are the applied strategies of HR in banking and financial institutions?
2. What is the main focus of the HR during the financial crisis or recession?
3. What are the effects or impacts of a successful HR management in the financial institutions?
Literature Review
The HR in banking industry has a responsibility to facilitate the performance improvement among its people. Factors such as skills, attitudes and knowledge of personnel, play a critical role in determining the competitiveness within the organization or the industry (Jalan, 2002b). The quality of human resources indicates the ability of banks to deliver the value to clients or customers. From the aspects of recruitment, placement, performance management, rewards and employee relations – there is a need for a radical transformation of the existing personnel to gain the performance and attracting the best talent including the young competitive environment. However, recruitment practices as well as on-the-job-training and redeployment are considered as one of those many improvements of HR in Indian Banks that can be also applied on other financial institutions (Jalan, 2002a).
The key focus of the human resource management is highlighted in the role of staffing, performance management, training and development, and compensation that plays indifferent types of business strategies. With the acquisition and preparation of human resources, including planning, recruitment, selection, and training can affect the whole organizational performance (Noe, et al., 2006). The HR planning, the start of the strategy, illustrates the process of developing human resource plan. The strengths and weaknesses of staffing options such as outsourcing, use of contingent workers, and downsizing are involved in planning. In addition, effective training systems of the manager’s role in determining employees’ readiness for training, creating a positive learning environment, and ensuring the training is used on the job. The efforts to set the motivation on employees are based on the approach of the financial institutions that can adequately meet their objectives (Menon, 2006; Noe, et al., 2006). The best practice approach assert that certain HR practices are found to consistently lead to higher organizational performance, independent of an organization’s stated strategy. The high performance of HR practices triggers the development of innovation values, encouraging of information sharing, goal setting and appropriate training and development (Som, 2007).
Methodology
The applied method of the study is in the use of case studies. The reviewed materials or literatures is based on the banking and financial institutions and on how they gave importance on the human resource management. Through this, the study enables to generate a quality analysis and conclusion.
Conclusion
Usually the aim of the HR in an industry is to contribute in the overall success of the business. And to make the financial institutions stronger there should be an efficient and low-cost, the creation of fundamentals must include in the bank’s operations, strategies and processes, upgrading the technological infrastructure of the financial system, and continuous support on human resource development as the catalyst of the transformation.
References:
Jalan, B., (2002a). “Indian Banking and Finance”, Managing New Challenges. Accessed 05 Feb 2010, from http://www.bis.org/review/r020115b.pdf
Jalan, B., (2002b). “Strengthening Indian Banking and Finance”, Progress and Prospects. Accessed 05 Feb 2010, from http://www.bis.org/review/r030120d.pdf
Lawler, J.J. & Siengthai, S., (1997) “Human Resource Management and Strategy in the Thai Banking Industry”, Research and Practice in Human Resource Management. Accessed 05 Feb 2010, from http://rphrm.curtin.edu.au/1997/issue1/thai.html
Menon, R., (2006). “Union Bank of India”, Prospectus. Accessed 05 Feb 2010, from http://www.moneycontrol.com/news_html_files/pdffiles/mar2007/union%20bank%20of%20india.pdf
Noe, R., Hollenbeck, J., Wright, P., & Gerhart, B., (2006). “Human Resource Management: Gaining a Competitive Advantage”. Accessed 05 Feb 2010, from http://highered.mcgraw-hill.com/sites/dl/free/0070620105/392697/noepreface.pdf
Som, A., (2007). “What Drives Adoption of Innovative SHRM Practices in Indian Organization?” The International Journal of Human Resource Management. Accessed 05 Feb 2010, from http://www.ashoksom.com/8-Adoption-Inovative-SHRMpractices.pdf
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