THE CHANGING BANKING ENVIRONMENT OF HRM
Owing to the changing banking environment HR department should call for appropriate response in equipping people who have to perform in the new environment. People should be prepared to 'accept changes. The upgraded technology in banks might create fear among the staff regarding their adaptability to the new environment.
It is the responsibility of the HR department to properly counsel people and prepare them to face the challenges before them. Their mind should be fine - tuned to work in the new technological environment.
The main function of HRM is to build up capabilities in people working in banks and intensify their sense of belonging to the organization. To improve their performance and increase the bank's productivity HR must incorporate challenges in routine work. Team spirit has to be inculcated in the branches and greater focus should be on customer care. This would be possible only through the unprecedented efforts to be put forth by the HR department.
HUMAN RESOURCE RISK
The banking HR risk is another important aspect to be managed by the HR and Planning department.
In certain situations the departure of an employee with specialized skills and knowledge due to resignation, retirement or removal may bring certain systems to a halt and may even create chaos. This is called HR risk.
In this process, the-bank may have to pay multiple individuals with similar knowledge and experience to ensure protection against this risk.
Similarly, the bank may have to face the risk of loss of key personnel, which is called the risk of inadequate motivation among staff who manage the situation. If the management offers inadequate incentives or doesn't, give any incentive at all, or wrong incentives, it may lead to disastrous financial results, provided the incentives are linked to individual performance.
In such a case, the personnel will not co-operate in combating the risky situation. In case a group incentive is given, individual motivation will be affected. Therefore in such "HR risk" Situations incentives should be linked to short-term results and not to long-terms ones.
It is the responsibility of the HR department to formulate proper policies to prevent such situations, where "HR risk" may crap up due to the exit of skilled personnel from banks.
Owing to the changing banking environment HR department should call for appropriate response in equipping people who have to perform in the new environment. People should be prepared to 'accept changes. The upgraded technology in banks might create fear among the staff regarding their adaptability to the new environment.
It is the responsibility of the HR department to properly counsel people and prepare them to face the challenges before them. Their mind should be fine - tuned to work in the new technological environment.
The main function of HRM is to build up capabilities in people working in banks and intensify their sense of belonging to the organization. To improve their performance and increase the bank's productivity HR must incorporate challenges in routine work. Team spirit has to be inculcated in the branches and greater focus should be on customer care. This would be possible only through the unprecedented efforts to be put forth by the HR department.
HUMAN RESOURCE RISK
The banking HR risk is another important aspect to be managed by the HR and Planning department.
In certain situations the departure of an employee with specialized skills and knowledge due to resignation, retirement or removal may bring certain systems to a halt and may even create chaos. This is called HR risk.
In this process, the-bank may have to pay multiple individuals with similar knowledge and experience to ensure protection against this risk.
Similarly, the bank may have to face the risk of loss of key personnel, which is called the risk of inadequate motivation among staff who manage the situation. If the management offers inadequate incentives or doesn't, give any incentive at all, or wrong incentives, it may lead to disastrous financial results, provided the incentives are linked to individual performance.
In such a case, the personnel will not co-operate in combating the risky situation. In case a group incentive is given, individual motivation will be affected. Therefore in such "HR risk" Situations incentives should be linked to short-term results and not to long-terms ones.
It is the responsibility of the HR department to formulate proper policies to prevent such situations, where "HR risk" may crap up due to the exit of skilled personnel from banks.