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: san_alps2005@yahoo.co.in

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: guruspkala@gmail.com

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

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, telebanking, 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. Banks 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) (b) State Bank Group 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 1st April, 1935. It was nationalized in 1948 soon after the countrys 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) (b)

Old Private Sector Banks 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 customers 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 employees 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 eHRM (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 firms 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) organizations 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 Strongly Disagree 111 Disagree 235 Neither Agree Nor Disagree 132 Agree 119 Strongly Agree 3 Total 600 Table 1.1 Percent 18.5 39.2 22.0 19.8 .5 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 111 235 132 119 3 600

1 46 84 88 81 1 Table 1.2

2 65 151 44 38 2

Fig.1.2

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:

Employee Perception Frequency Strongly Disagree 132 Disagree 300 Neither Agree Nor Disagree 32 Agree 124 Strongly Agree 12 Total 600 Table 1.3

Percent 22.0 50.0 5.3 20.7 2.0 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 132 300 32 124 12 600

1 48 112 16 112 12 Table 1.4

2 84 188 16 12 0

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. The Bank policies like employment, public relations, and managements attitude towards the employees are not positive:

(3)

Employee Perception Frequency Strongly Disagree 44 Disagree 268 Neither Agree Nor Disagree 144 Agree 132 Strongly Agree 12 Total 600 Table 1.5

Percent 7.3 44.7 24.0 22.0 2.0 100.0

The comparative analysis between the Public and Private Sector Banks to identify whether the Bank policies like employment, public relations and managements attitude towards the employees are not positive is given in Table and Fig. 1.6:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 44 268 144 132 12

1 16 148 60 72 4 Table 1.6

2 28 120 84 60 8

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 managements 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

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:

Employee Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Total

Frequency 239 164 64 121 12 600 Table 1.7

Percent 39.8 27.3 10.7 20.2 2.0 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 239 164 64 121 12 600

1 27 97 47 117 12 Table 1.8

2 212 67 17 4 0

Fig. 1.8

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: Employee Perception Frequency Strongly Disagree 76 Disagree 240 Neither Agree Nor Disagree 32 Agree 240 Strongly Agree 12 Total 600 Table 1.9 Percent 12.7 40.0 5.3 40.0 2.0 100.0

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 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Public Banks 1 Private Banks 2

Total 76 240 32 240 12 600

0 44 16 228 12 Table 1.10

76 196 16 12 0

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:

Employee Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Total

Frequency 168 204 40 148 40 600 Table 1.11

Percent 28.0 34.0 6.7 24.7 6.7 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 168 204 40 148 40 600

1 4 100 36 128 32 Table 1.12

2 164 104 4 20 8

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:

Employee Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Total

Frequency 32 156 44 340 28 600 Table 1.13

Percent 5.3 26.0 7.3 56.7 4.7 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 32 156 44 340 28 600

1 0 4 12 264 20 Table 1.14

2 32 152 32 76 8

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:

Employee Perception Frequency Strongly Disagree 20 Disagree 168 Neither Agree Nor Disagree 80 Agree 240 Strongly Agree 92 Total 600 Table 1.15

Percent 3.3 28.0 13.3 40.0 15.3 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 20 168 80 240 92 600

1 8 52 28 120 92 Table 1.16

2 12 116 52 120 0

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:

Employee Perception Frequency Strongly Disagree 40 Disagree 275 Neither Agree Nor Disagree 57 Agree 191 Strongly Agree 37 Total 600 Table 1.17

Percent 6.7 45.8 9.5 31.8 6.2 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 40 275 57 191 37 600

1 13 113 12 141 21 Table 1.18

2 27 162 45 50 16

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:

Employee Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Total

Frequency 40 233 87 213 27 600 Table 1.19

Percent 6.7 38.8 14.5 35.5 4.5 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 40 233 87 213 27 600

1 4 104 36 140 16 Table 1.20

2 36 129 51 73 11

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:

Employee Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Total

Frequency 20 240 104 216 20 600 Table 1.21

Percent 3.3 40.0 17.3 36.0 3.3 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 20 240 104 216 20 600

1 8 168 48 72 4 Table 1.22

2 12 72 56 144 16

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: Employee Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Total Frequency 276 276 16 12 20 600 Table 1.23 Percent 46.0 46.0 2.7 2.0 3.3 100.0

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:

Employees Perception Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Public Banks

Private Banks

Total 276 276 16 12 20 600

1 96 180 8 8 8 Table 1.24

2 180 96 8 4 12

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) (iii) Bank employees feel that the bank jobs are not attractive. 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) (ii) Bank jobs should be made attractive by enhancing salary and other perks. All Indian DGM level examination on the pattern of Civil Services Examination should be introduced by a constituted Banking Recruitment Board. (iii) (iv) Introduction of young blood in the banking industry. Selection and promotion should be based on the performance of the employees by reducing the favoritism and union influence.

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