Description
Efficient human resource management is one of the most essential requirements for survival in this competitive world. In this paper, an attempt has been made to test the hypothesis for administrative skills, competitive advantage and human resource development (HRD) policies.
Journal of Human Resource and Sustainability Studies, 2013, 1, 21-28
http://dx.doi.org/10.4236/jhrss.2013.13004 Published Online September 2013 (http://www.scirp.org/journal/jhrss)
Human Resource Management in the
Indian Banking Sector
Rajwinder Singh
School of Management Studies, Punjabi University, Patiala, India
Email: [email protected]
Received May 27, 2013; revised July 11, 2013; accepted July 21, 2013
Copyright © 2013 Rajwinder Singh. This is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
ABSTRACT
Efficient human resource management is one of the most essential requirements for survival in this competitive world.
In this paper, an attempt has been made to test the hypothesis for administrative skills, competitive advantage and hu-
man resource development (HRD) policies. This study reveals that Indian bank managers have good administrative
skills for industrial competitiveness. Also, they have good administrative skills to manage HRD policies.
Keywords: Administrative Skills; Banking Sector; Competitiveness; Human Resource Development; Human Resource
Management
1. Introduction
To bring out the best in a man is the essence of human
resource development. Simply speaking, Human Re-
source Development (HRD) is the process of increasing
the capacity of human resources through the develop-
ment. Human Resource Development is something that
everyone does. Individuals do it as they work to develop
themselves; managers do it as they work to support oth-
ers’ development and the Human Resource Development
staff does it, as they create the overall development tools
for an organization. Thus, it is a process of adding value
to individuals, teams and the organization as a human
system.
In a larger context, Human Resource Development re-
fers to empowering people and enabling them to use their
power for development of the organization to which they
belong, and society at large. It refers to developing pro-
activity and capacity to embrace larger issues. Consider-
ing the vital importance of human resources, they are
now being treated as assets which are most precious for
the survival of an organization. New values are being
added. There has been a shift from traditional master-
slave relationship to the modern trusteeship system (in
which employers and employees are considered as part-
ners investing their wealth and labor respectively) and
from traditional salary administration to the new Human
Resource System (HRS). With human resources being a
part of an organization, HRS is a subsystem of larger
system i.e., an organization and Human Resource De-
velopment is the center of HRS and most vital for the
organizational advancement. Human Resource Devel-
opment includes both the development of the people and
development of an organization.
In this paper, an attempt has been made to test the hy-
potheses among administrative skills, industrial competi-
tiveness and HRD policies. Pre-pilot survey was done to
improve the questionnaire. Later, a pilot survey was con-
ducted and questionnaire was improved and large scale
survey was conducted to test and validate the results.
2. Literature Survey
The literature survey was conducted on the research topic
from leading national and international journal. A brief
review of the survey conducted is as follows:
2.1. National Policy
Human Resource Development consists of all measures
calculated to improve the quality of human resources for
the nation as a whole. It embraces within its scope edu-
cation, health, welfare and such other activities, which
are concerned with efficiency and quality of life. Con-
sidering the importance of Human Resource Develop-
ment in the national context, the National Human Re-
source Development Network and Ministry of Human
Resource Development came into existence. The Na-
tional Human Resource Development is a Network of
human resource development of professionals and others
Copyright © 2013 SciRes. JHRSS
R. SINGH 22
who are basically concerned with promotion or expan-
sion of the Human Resource Development movement in
a country. It is a non-profit organization and a profes-
sional body dedicated to the advancement of knowledge,
skills, values and attitudes through education, training
and experience sharing. The main objectives of national
Human Resource Development network include dissemi-
nation of knowledge and experience and to facilitate
learning among Human Resource Development people,
line managers and all employees that have Human Re-
source Development role to perform.
2.2. Organizational Policy
Organizational policy involves the use of processes
through which the employees of an organization are pre-
pared to give their best for corporate objectives. It in-
volves setting up of a system through which human ca-
pabilities and potentials can be tapped resulting in mutual
satisfaction of the individuals and organizations. It is a
process by which employees of an organization are con-
tinuously helped in a planned way to meet the objectives
of an organization. It helps to acquire or sharpen capa-
bilities and improve organizational culture where supe-
rior-subordinate relationships, teamwork and collabora-
tion among different subunits are improved for better
organizational health, dynamism and pride of employees.
2.3. Department Policy
Department policy involves the processes through which
employees working within a department are organized to
develop and sharpen skill to meet the organizational ob-
jectives. It involves the creation of mutual trust, confi-
dence, transparency and improved process to reduce
process times in the interest of employees.
In the context of an individual: HRD deals with indi-
vidual values, behavior, action and thoughts. As such it
may be defined as the activities and processes undertaken
to promote the intellectual, moral, psychological, cultural,
social and economic development of an individual so as
to achieve his highest human potential as a resource for
the community. In other words, it means an all round
development of the person so that he can contribute his
best to the organization, the community and the nation.
2.4. Organizational Efficiency
Organizational efficiency focuses on the use of money
and other resources. Nonprofit organizations measure
efficiency based on the relationship between the effec-
tiveness of services and organizational expenditure. On
the other-hand business organizations focus on maximi-
zation of profits. The organizational performance shall be
improved through several channels, including changes in
efficiency, innovation and technological development.
The efficient HR practices combined with unions shall
influence organizational efficiency [1]. Firms can gener-
ate human capital advantage through recruiting and re-
taining excellent people [2]. This shall help to develop
competitive advantage. Also, the practices must be linked
to the characteristics of employees, including their ex-
pectations and needs [2]. Nelson, [3] suggests that fo-
cusing on scarce HR resources, providing insights into
how employees create value and employee contribution
for the success of the organization.
2.5. Individual Efficiency
Increasing personal efficiency and productivity can be a
satisfying outcome. Increasing efficiency and productiv-
ity comes from changing behaviors, not doing more
things. The positive attitude helps in improving personal
productivity more than any of the modern electronic
gadgets available today.
2.6. Technological Development
Technology is the practical application of science to
commerce or industry [4]. Human resources tasks cover a
large variety of activities requiring different skills rang-
ing from compensation and benefit administration
(highly quantitative) to employee relations (highly quali-
tative) [5]. Walker [6] suggested that HR technology
should focus on strategic alignment, business intelligence,
efficiency, and effectiveness. It must change the work
performed by HR personnel, by improving service level,
allowing more time to work of higher value, and reduc-
ing their costs. Lewin [7] found that high involvement
practices had resulted in significant positive improve-
ment on market value, rate of return on capital employed,
revenue growth, revenue-per-employee rate, productivity,
product/service quality, and even organizational survival.
Also, the use of technology by HR has proven to assist
on the improvement of business performances. Sartain [8]
clarified that, in order for this to happen, HR should
bring the customer’s voice to inside an organization, and
accomplishing that, upper management will empower
HR to reflect the customer’s value proposition.
2.7. Competitive Organization
Jack [9] quoted that in the competitive market today,
keeping the business and its people or human resource
(HR) competitive is not easy. Competitiveness is one of
the most important roles of HR professionals to play.
Competitiveness focuses on the ability to compete in the
market by learning new ways of doing business. Dave
Ulrich et al. [10] developed a model for understanding
the synergies of HR professionals for operational and
strategic jobs. The operational aspect focuses on day-to-
day activities on the other-hand strategic aspects have
Copyright © 2013 SciRes. JHRSS
R. SINGH 23
become a part of the management of the organization.
Flotter et al. [11] presented a framework and suggested
to focus on: 1) focus on desired strategic outcomes; 2)
identification and implementation of essential human re-
source management actions; and 3) enhancement of com-
petitive advantage. We need to focus on organization’s
environment, mission business strategy, and assessment
of the human resource requirement to attain competitive
advantage.
2.8. Management Commitment
It is defined as, “Engaging in and maintaining behavior
that help others to achieve a goal”. Managers always fo-
cus on the best practices for human resource manage-
ment (HRM). Sometimes this is referred to as “high per-
formance work systems” [12], “high commitment” HRM
[13] or “high involvement” HRM [14]. The ultimate ob-
jective is to improve the organizational performance by
measurement of the same. Cooper et al. [15], classified
management measurement as: directly asking questions
and monitoring. They also reveal that senior management
experts influence more on the employee motivation.
2.9. Degree of Freedom
The labor market force is one of the key factors in deter-
mining an organization’s “degrees of freedom” in HR
strategic formation [16]. The demand and availability of
particular skills, knowledge and expertise, is a key factor
to adopt an appropriate HR strategy. The developments
in the economic, political, technological and social
spheres have significantly changed the labor require-
ments. Subsequently, an understanding of the labor mar-
ket context of work organizations is essential to appreci-
ate the challenges faced by HRM in the twenty-first cen-
tury. Nike INC. [17], suggested that the focus on clarity
of position and freedom, freedom of association training,
and building trust and association to arrange and manage
labor play important role in improving organizational
performance.
2.10. Efficient Organizational Development
Bolton and Abdy, [18] quoted that organizational devel-
opment is about “strengthening organizations so that they
can better achieve their mission.” Also, it is about being
both effective achievement of objectives and efficient use
of resources. Hence, it’s about doing the right thing; but
it’s also about doing things right.
2.11. Objective Achievement
Human resource management influences many of the key
systems; business processes underpinning effective deliv-
ery as well as fosters corporate social responsibility eth-
ics, and helps to achieve a high performance corporate
culture. Human resource management can play a signifi-
cant role so that corporate social responsibility can be-
come “the way we do things around here” [19]. HR shall
be the key organizational partner to ensure that objec-
tives are achieved through and with people, treating them
as stakeholders within the organization. Hence, HR
should be poised for this leadership role as it is adept at
working horizontally and vertically across and within the
organization to compete in this competitive world.
2.12. Cultural Support
It is a set of common understandings around which ac-
tion is organized, finding expression in a language whose
nuances are peculiar to the group [20]. Becker [20] clas-
sified the culture as; weak or strong, inhibitive or facili-
tative, and consistent or inconsistent. The cultural influ-
ences show how members of an organization behave as
well perceive to a situation. Heathfield [21] quoted that it
is more difficult to change the existing organizational
culture than to create a culture in a new organization.
When an organizational culture is already established,
people must unlearn the old values, assumptions, and
behaviors before they can learn the new ones. The most
important elements for creating organizational cultural
change are executive support and training. Executives in
the organization should not only support the cultural
changes in ways beyond verbal support but also provide
the behavioral support to change the culture. Hence, de-
veloping a culture where all the employees work together
as team plays an important role to survive in this com-
petitive world.
2.13. Conflict Management
In most conflicts the different perceptions collide to cre-
ate disagreement. Conflict is natural and needs to re-
spond quickly and professionally. It can be resolved for-
mally or informally. Successful conflict resolution occurs
by listening to the problems of all the parties and provid-
ing the most viable solution. The differences shall be
mitigated by stimulating creativity, promoting innovation,
and change management. Mismanaged conflicts and dis-
agreements harm important work and workplace rela-
tionships. Hence, effectively managed conflict promotes
cooperation and builds stronger relationships.
2.14. Management Attitude
Lise et al. [22] quoted that the industrial psychology has
controversial history related to the study and understand-
ing of employee attitudes and job satisfaction. Some of
this research is very specific and aimed primarily at other
researchers, while other publications provide practical
Copyright © 2013 SciRes. JHRSS
R. SINGH 24
guidance on understanding, measuring, and improving
employee attitudes (e.g., 23 & 24). One likely future di-
rection of employee attitude research will be to better
understand the interplay between the person and the
situation and the various internal and external factors that
influence employee attitudes. In particular, a better un-
derstanding of the role of emotion, as well as broader
environmental impacts, is needed which has been over-
looked in past research. In addition, ongoing research
will provide a more in-depth understanding of the effects
of employee attitudes and job satisfaction on organiza-
tional measures, such as customer satisfaction and finan-
cial measures. Greater insights on the relationship be-
tween employee attitudes and business performance will
assist HR professionals as they strive to enhance the es-
sential people side of the business in a highly competitive,
global arena. Agarwal [25] stated that with the adoption
of HR policies, such as, periodic review of employee
performance, adequate training for the workforce and
career advancement norms for its personnel, creating
motivation, and commitment in the workforce the or-
ganization can reap the full business benefits and become
successful to the great satisfaction of all its stakeholders.
3. Research Hypotheses
The proposed research hypotheses are shown in Figure 1.
It is based on the premise that Indian managers under-
stand the relationship between administrative skills, com-
petitiveness, and HRD policies. These hypotheses are
explained as follows:
H1: Indian bank managers have good administrative
skills to for industrial competitiveness
The growth trend in the banking sector and vast op-
portunities has made this sector attractive. Nowadays,
bank managers offer vast competitive schemes to attract
customers. These schemes shall not be implemented
without good administrative skills. To face the competi-
tion, the managers have developed sufficient administra-
tive skills to satisfy customers as well as employees to
face the competition in this industry. Hence, it leads to:
H2: They have developed HRD policies for competi-
tiveness
Nowadays, the banking sector organizes many semi-
nars and development programs to take competitive ad-
vantage. The HRD policies are modified for industrial
competitiveness. Hence it leads to:
Administrative Skills
Competitiveness
H
R
D
P
o
l
i
c
i
e
s
H2
H3
H1
Figure 1. Proposed research framework.
H3: Managers have good administrative skills to de-
velop and manage HRD policies
Taken the things together, has led to the understanding
that the managers have good administrative skills to de-
velop and implement HRD policies.
4. Database and Methodology
A survey questionnaire has been used as a primary in-
strument to collect information. The pre-pilot survey was
conducted based on a strong literature survey in consul-
tation with practitioners and consultants in the field of
banking sector. Based on their responses the necessary
corrections were made. Later, pilot survey was conducted
and again necessary corrections were made in the ques-
tionnaire. In the last full scale survey was conducted in
the principal cities of state Punjab, Chandigarh and Delhi.
A total of 450 questionnaires were distributed by ran-
domly selecting respondents from; bank organization’s
web-sites, telephone directory 2010 and PROWESS data
base maintained by CMIE. The questionnaires send were
followed in response and finally 289 questionnaires were
received from respondents operating in the banking sec-
tor (CEO/President/VP/GM/AGM = 25; Managers = 104;
Field Supervisor/clerk etc. = 160) yielding a response
rate of 64.2%. The questionnaire responses were digi-
tized using SPSS software and scale reliability was done.
A 14-item Likert scale was used to understand the re-
lationship among the manager’s administrative skills,
HRD policies, and Competitiveness. The seven variables
are covered under administrative skills-Management at-
titude, cultural support, efficient conflict management,
objective achievement, efficient organizational develop-
ment, management commitment, and degree of freedom.
The three variables have been covered under HR Poli-
cies-organizational policy, department policy and na-
tional policy. The four variables have been covered under
competitiveness-competitive organization, individual per-
formance organizational performance, and technological
development.
The statements/items so developed were rated on a
five point Likert scale. Pre-pilot and pilot survey was
done to improve the questionnaire. Based on recommen-
dations and suggestions the necessary corrections were
made. Later on, large scale survey was conducted in the
principal cities of state Punjab, Chandigarh, New-Delhi
and Gurgaon.
The items were refined and purified to obtain the reli-
able scale. For this purpose corrected item-to-total corre-
lation and Cronbach’s alpha statistics were used. Item
and reliability analysis was performed to retain and de-
lete scale items for the purpose of developing a reliable
scale. Corrected item-to-total correlations and Cron-
bach’s alpha statistics were employed to conduct this
type of analysis; to know the extent to which any one
Copyright © 2013 SciRes. JHRSS
R. SINGH 25
item is correlated with the remaining items in a set of
items under consideration.
This analysis found Cronbach’s alpha to be 0.9440 and
item-to-total correlation rage from 0.8364 to 0.5872 (Ta-
ble 1) and inter-item correlation is greater than 0.3. Here,
it is pertinent to mention that Alpha value greater than
0.6 and item-to-total correlation greater than 0.5 and in-
ter-item correlation greater than 0.3 is good enough for
conducting research in social sciences [26]. The mean for
the items is shown in Table 2. If all the 14 items were
rated at 5 the total value would be 70. However, the
mean value of 50.3080 indicates that 78.186% of the
items practiced in the banking industry. The results for
scale reliability and correlation are shown in Tables 1, 2
and 3.
4.1. Factor Analysis of Human Resource
Management in the Banking Sector
Hence, the entire requirements for conducting factor
analysis were met. The factor analysis was done using
Principal component analysis with varimax rotation. The
results are shown in Table 3.
4.2. Results for Structural Model
The theoretical framework for proposed models is shown
in Figure 1. The three hypothesized relationships among
competency development, employee motivation and or-
ganizational climate are shown. The results of Figure 2
using AMOS 4.0 version showed that the model has Chi-
square = 1.227, DF = 24, P = 0.00. All the loadings are
Table 1. Corrected item-to-total correlation, alpha and
communality for items of human resource management in
the banking sector.
CD
Scale mean if
item deleted
Corrected item-total
correlation
Commonality
Extracted
A1 48.4 0.58 0.98
A2 48.4 0.57 0.99
A3 48.4 0.55 0.97
B1 46.4 0.62 0.93
B2 46.4 0.58 0.92
B3 46.4 0.60 0.90
B4 46.4 0.60 0.95
C1 46.2 0.85 0.86
C2 46.2 0.88 0.87
C3 46.0 0.83 0.89
C4 46.0 0.81 0.89
C5 46.0 0.84 0.92
C6 46.0 0.81 0.90
C7 46.0 0.83 0.93
Table 2. Mean and standard deviation for items of human
resource management in the banking sector.
Code Item (S) Mean SD
A1 National Policy 1.8685 0.7840
A2 Organizational Policy 1.8720 0.7823
A3 Department Policy 1.8720 0.7823
B1 Organizational Efficiency 3.8443 0.8333
B2 Individual Performance 3.8478 0.8193
B3 Technological Development 3.8478 0.8150
B4 Competitive Organization 3.8512 0.8304
C1 Management Commitment 4.0934 0.8302
C2 Degree of Freedom 4.1003 0.8209
C3 Efficient Organizational Development 4.2249 0.8708
C4 Objective Achievement 4.2318 0.8690
C5 Cultural Support 4.2180 0.8883
C6 Efficient Conflict Management 4.2145 0.8794
C7 Management Attitude 4.2215 0.8697
N of Cases = 289. Statistics for Scale: Mean = 50.3080; Variance = 79.0472;
Std Dev = 8.8909; N of Variables = 14. Item Means: Mean = 3.5934; Mini-
mum = 1.8685; Maximum = 4.2318; Range = 2.3633; Max/Min = 2.2648;
Variance = 0.8957. Inter-item Correlations: Mean = 0.5420; Minimum =
0.1103; Maximum = 0.9915; Range = 0.8812; Max/Min = 8.9862; Variance
= 0.0682.
Table 3. Factor analysis results for human resource man-
agement in the banking sector.
Components
Items
Administrative
Skills
Competitiveness
HRD
Policies
Management Attitude 0.93
Cultural Support 0.91
Efficient Conflict
Management
0.91
Objective Achievement 0.91
Efficient Organizational
Development
0.90
Management Commitment 0.79
Degree of Freedom 0.79
Competitive Organization 0.95
Individual Performance 0.93
Organizational Efficiency 0.93
Technological Development 0.92
Organizational Policy 0.96
Department Policy 0.95
National Policy 0.95
Eigen Value 8.2 2.96 1.8
%Variance 58.9 20.6 13.0
Cumulative % Variance 58.90 79.5 92.5
Scale Reliability 0.99 0.97 0.97
Kaiser-Meyer-Olkin Measure of Sampling Adequacy = 0.867; Bartlett’s
est of Sphericity: Chi-Square = 7538.432; DF = 91; Sig. = 0.00. T
Copyright © 2013 SciRes. JHRSS
R. SINGH
Copyright © 2013 SciRes. JHRSS
26
Figure 2. Structural relationship between competency development, employee motivation and organizational climate.
Table 4. Effect estimates for structural model (Figure 2).
different. The fit measures are RMR = 0.010, GFI =
0.989, AGFI = 0.980, NFI = 0.986, RFI = 0.979, TLI =
0.96. The model is significant as the RMR is less than
0.05. The detailed results of analysis are shown in Figure
2.
Efcts Factors HRD Pol Cmpt. Adm Skl
Competitiveness 0.084 0.000 0.000
Total
Effect
Administrative Skills 0.678 0.430 0.000
Competitiveness 0.084 0.000 0.000
Direct
Effect
Administrative Skills 0.642 0.430 0.000
Competitiveness 0.000 0.000 0.000
Indirect
Effect
Administrative Skills 0.036 0.000 0.000
The effect estimates for structural model are shown in
Table 4. The total effect estimate is 0.683 for compe-
tency development and organizational climate. It also
shows the value of 0.812 for employee motivation and
organizational climate. The total effect for employee mo-
tivation and competency development is ?0.977. All
these values are significant to prove the hypotheses H1,
H2 and H3.
Chi-square = 378.758, DF = 74, P = 0.000, RMR = 0.05, GFI = 0.82, AGFI
= 0.80, TLI = 0.84, CFI = 0.802. Model is Significant.
cultural support shall help in understanding and manag-
ing the workplace. It is also required to influence the
management attitude for the betterment of employee as
well as the organization. Hence, management of com-
mitment is also an important variable for administrative
skill development. The employees should also be given
freedom to work in the right direction for betterment of
the business.
5. Conclusions, Discussion and Limitations
This paper aims to identify the items for administrative
skills, competitiveness and HR policies. The administra-
tive skills have the loading range from 1.0 to 0.7. All the
loadings are significant. The maximum loading has been
assigned to objective achievement (1.0). It is due to the
fact that this variable is the dominating variable to prove
the administrative skills. The efficient conflict manage-
ment (0.9), cultural support (0.9), management attitude
(0.9), degree of freedom (0.8), and management com-
mitment (0.7) also play significant role in administrative
skill development. The efficient conflict management
shall help to direct the teams towards right goals. The
The competitiveness has also significant loading of all
the variables-competitive organization (1.0), individual
performance (0.9), organizational efficiency (0.9), and
technological development (0.9). All the loadings are
significant. The maximum loading for competitive or-
ganization shows that this variable is the most dominat-
R. SINGH 27
ing. It is due to the fact that to survive in this competitive
world, the organizations need to develop competitive
spirit. It is also needed to upgrade technology from time
to time for efficient return. These developments are not
sufficient without the focus on individual as well as or-
ganizational performance.
The HR policies also have significant loading—organ-
izational policy (1.0), departmental policy (0.9), and na-
tional policy (0.9). All the loadings are significant. The
maximum loading of organizational policy shows that
rules and regulations should be uniform. Also, the de-
partmental policy should be without bias. The govern-
ment should also develop a uniform national policy to
minimize conflicts and dissatisfaction.
The Total Effect estimates have been shown in Table
4. The Total Effect of Administrative Skills on HR Poli-
cies is 0.678. Hence, it proves the hypothesis (H3):
Managers have good administrative skills to develop and
manage HRD policies. The Total Effect of Administra-
tive Skills on Competitiveness is 0.430. It clearly proves
the hypothesis (H1): Indian bank managers have good
administrative skills for industrial competitiveness. Also,
the Total Effect of Competitiveness on HR Policies (0.084)
proves the hypotheses (H2): They have developed HRD
policies for competitiveness.
All the Total Effects are significant. Also, the results
of the study are in consonance with the studies quoted in
the literature review. However, despite the statistical so-
phistication of structural equation modeling, this study
has the major limitations as few of the lot of top man-
agement participated in the study. Here, it is pertinent to
mention that these people are instrumental to develop
policies and procedures for Administrative Skills, HR
Policies, and Competitiveness. Also, the microscopic
structure of the organizations is very complex in nature
due to different attitude and perception of the respon-
dents. Hence, for more detailed analysis of these, the
groups and subgroups of the people are also needed to be
studied.
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doc_703449593.pdf
Efficient human resource management is one of the most essential requirements for survival in this competitive world. In this paper, an attempt has been made to test the hypothesis for administrative skills, competitive advantage and human resource development (HRD) policies.
Journal of Human Resource and Sustainability Studies, 2013, 1, 21-28
http://dx.doi.org/10.4236/jhrss.2013.13004 Published Online September 2013 (http://www.scirp.org/journal/jhrss)
Human Resource Management in the
Indian Banking Sector
Rajwinder Singh
School of Management Studies, Punjabi University, Patiala, India
Email: [email protected]
Received May 27, 2013; revised July 11, 2013; accepted July 21, 2013
Copyright © 2013 Rajwinder Singh. This is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
ABSTRACT
Efficient human resource management is one of the most essential requirements for survival in this competitive world.
In this paper, an attempt has been made to test the hypothesis for administrative skills, competitive advantage and hu-
man resource development (HRD) policies. This study reveals that Indian bank managers have good administrative
skills for industrial competitiveness. Also, they have good administrative skills to manage HRD policies.
Keywords: Administrative Skills; Banking Sector; Competitiveness; Human Resource Development; Human Resource
Management
1. Introduction
To bring out the best in a man is the essence of human
resource development. Simply speaking, Human Re-
source Development (HRD) is the process of increasing
the capacity of human resources through the develop-
ment. Human Resource Development is something that
everyone does. Individuals do it as they work to develop
themselves; managers do it as they work to support oth-
ers’ development and the Human Resource Development
staff does it, as they create the overall development tools
for an organization. Thus, it is a process of adding value
to individuals, teams and the organization as a human
system.
In a larger context, Human Resource Development re-
fers to empowering people and enabling them to use their
power for development of the organization to which they
belong, and society at large. It refers to developing pro-
activity and capacity to embrace larger issues. Consider-
ing the vital importance of human resources, they are
now being treated as assets which are most precious for
the survival of an organization. New values are being
added. There has been a shift from traditional master-
slave relationship to the modern trusteeship system (in
which employers and employees are considered as part-
ners investing their wealth and labor respectively) and
from traditional salary administration to the new Human
Resource System (HRS). With human resources being a
part of an organization, HRS is a subsystem of larger
system i.e., an organization and Human Resource De-
velopment is the center of HRS and most vital for the
organizational advancement. Human Resource Devel-
opment includes both the development of the people and
development of an organization.
In this paper, an attempt has been made to test the hy-
potheses among administrative skills, industrial competi-
tiveness and HRD policies. Pre-pilot survey was done to
improve the questionnaire. Later, a pilot survey was con-
ducted and questionnaire was improved and large scale
survey was conducted to test and validate the results.
2. Literature Survey
The literature survey was conducted on the research topic
from leading national and international journal. A brief
review of the survey conducted is as follows:
2.1. National Policy
Human Resource Development consists of all measures
calculated to improve the quality of human resources for
the nation as a whole. It embraces within its scope edu-
cation, health, welfare and such other activities, which
are concerned with efficiency and quality of life. Con-
sidering the importance of Human Resource Develop-
ment in the national context, the National Human Re-
source Development Network and Ministry of Human
Resource Development came into existence. The Na-
tional Human Resource Development is a Network of
human resource development of professionals and others
Copyright © 2013 SciRes. JHRSS
R. SINGH 22
who are basically concerned with promotion or expan-
sion of the Human Resource Development movement in
a country. It is a non-profit organization and a profes-
sional body dedicated to the advancement of knowledge,
skills, values and attitudes through education, training
and experience sharing. The main objectives of national
Human Resource Development network include dissemi-
nation of knowledge and experience and to facilitate
learning among Human Resource Development people,
line managers and all employees that have Human Re-
source Development role to perform.
2.2. Organizational Policy
Organizational policy involves the use of processes
through which the employees of an organization are pre-
pared to give their best for corporate objectives. It in-
volves setting up of a system through which human ca-
pabilities and potentials can be tapped resulting in mutual
satisfaction of the individuals and organizations. It is a
process by which employees of an organization are con-
tinuously helped in a planned way to meet the objectives
of an organization. It helps to acquire or sharpen capa-
bilities and improve organizational culture where supe-
rior-subordinate relationships, teamwork and collabora-
tion among different subunits are improved for better
organizational health, dynamism and pride of employees.
2.3. Department Policy
Department policy involves the processes through which
employees working within a department are organized to
develop and sharpen skill to meet the organizational ob-
jectives. It involves the creation of mutual trust, confi-
dence, transparency and improved process to reduce
process times in the interest of employees.
In the context of an individual: HRD deals with indi-
vidual values, behavior, action and thoughts. As such it
may be defined as the activities and processes undertaken
to promote the intellectual, moral, psychological, cultural,
social and economic development of an individual so as
to achieve his highest human potential as a resource for
the community. In other words, it means an all round
development of the person so that he can contribute his
best to the organization, the community and the nation.
2.4. Organizational Efficiency
Organizational efficiency focuses on the use of money
and other resources. Nonprofit organizations measure
efficiency based on the relationship between the effec-
tiveness of services and organizational expenditure. On
the other-hand business organizations focus on maximi-
zation of profits. The organizational performance shall be
improved through several channels, including changes in
efficiency, innovation and technological development.
The efficient HR practices combined with unions shall
influence organizational efficiency [1]. Firms can gener-
ate human capital advantage through recruiting and re-
taining excellent people [2]. This shall help to develop
competitive advantage. Also, the practices must be linked
to the characteristics of employees, including their ex-
pectations and needs [2]. Nelson, [3] suggests that fo-
cusing on scarce HR resources, providing insights into
how employees create value and employee contribution
for the success of the organization.
2.5. Individual Efficiency
Increasing personal efficiency and productivity can be a
satisfying outcome. Increasing efficiency and productiv-
ity comes from changing behaviors, not doing more
things. The positive attitude helps in improving personal
productivity more than any of the modern electronic
gadgets available today.
2.6. Technological Development
Technology is the practical application of science to
commerce or industry [4]. Human resources tasks cover a
large variety of activities requiring different skills rang-
ing from compensation and benefit administration
(highly quantitative) to employee relations (highly quali-
tative) [5]. Walker [6] suggested that HR technology
should focus on strategic alignment, business intelligence,
efficiency, and effectiveness. It must change the work
performed by HR personnel, by improving service level,
allowing more time to work of higher value, and reduc-
ing their costs. Lewin [7] found that high involvement
practices had resulted in significant positive improve-
ment on market value, rate of return on capital employed,
revenue growth, revenue-per-employee rate, productivity,
product/service quality, and even organizational survival.
Also, the use of technology by HR has proven to assist
on the improvement of business performances. Sartain [8]
clarified that, in order for this to happen, HR should
bring the customer’s voice to inside an organization, and
accomplishing that, upper management will empower
HR to reflect the customer’s value proposition.
2.7. Competitive Organization
Jack [9] quoted that in the competitive market today,
keeping the business and its people or human resource
(HR) competitive is not easy. Competitiveness is one of
the most important roles of HR professionals to play.
Competitiveness focuses on the ability to compete in the
market by learning new ways of doing business. Dave
Ulrich et al. [10] developed a model for understanding
the synergies of HR professionals for operational and
strategic jobs. The operational aspect focuses on day-to-
day activities on the other-hand strategic aspects have
Copyright © 2013 SciRes. JHRSS
R. SINGH 23
become a part of the management of the organization.
Flotter et al. [11] presented a framework and suggested
to focus on: 1) focus on desired strategic outcomes; 2)
identification and implementation of essential human re-
source management actions; and 3) enhancement of com-
petitive advantage. We need to focus on organization’s
environment, mission business strategy, and assessment
of the human resource requirement to attain competitive
advantage.
2.8. Management Commitment
It is defined as, “Engaging in and maintaining behavior
that help others to achieve a goal”. Managers always fo-
cus on the best practices for human resource manage-
ment (HRM). Sometimes this is referred to as “high per-
formance work systems” [12], “high commitment” HRM
[13] or “high involvement” HRM [14]. The ultimate ob-
jective is to improve the organizational performance by
measurement of the same. Cooper et al. [15], classified
management measurement as: directly asking questions
and monitoring. They also reveal that senior management
experts influence more on the employee motivation.
2.9. Degree of Freedom
The labor market force is one of the key factors in deter-
mining an organization’s “degrees of freedom” in HR
strategic formation [16]. The demand and availability of
particular skills, knowledge and expertise, is a key factor
to adopt an appropriate HR strategy. The developments
in the economic, political, technological and social
spheres have significantly changed the labor require-
ments. Subsequently, an understanding of the labor mar-
ket context of work organizations is essential to appreci-
ate the challenges faced by HRM in the twenty-first cen-
tury. Nike INC. [17], suggested that the focus on clarity
of position and freedom, freedom of association training,
and building trust and association to arrange and manage
labor play important role in improving organizational
performance.
2.10. Efficient Organizational Development
Bolton and Abdy, [18] quoted that organizational devel-
opment is about “strengthening organizations so that they
can better achieve their mission.” Also, it is about being
both effective achievement of objectives and efficient use
of resources. Hence, it’s about doing the right thing; but
it’s also about doing things right.
2.11. Objective Achievement
Human resource management influences many of the key
systems; business processes underpinning effective deliv-
ery as well as fosters corporate social responsibility eth-
ics, and helps to achieve a high performance corporate
culture. Human resource management can play a signifi-
cant role so that corporate social responsibility can be-
come “the way we do things around here” [19]. HR shall
be the key organizational partner to ensure that objec-
tives are achieved through and with people, treating them
as stakeholders within the organization. Hence, HR
should be poised for this leadership role as it is adept at
working horizontally and vertically across and within the
organization to compete in this competitive world.
2.12. Cultural Support
It is a set of common understandings around which ac-
tion is organized, finding expression in a language whose
nuances are peculiar to the group [20]. Becker [20] clas-
sified the culture as; weak or strong, inhibitive or facili-
tative, and consistent or inconsistent. The cultural influ-
ences show how members of an organization behave as
well perceive to a situation. Heathfield [21] quoted that it
is more difficult to change the existing organizational
culture than to create a culture in a new organization.
When an organizational culture is already established,
people must unlearn the old values, assumptions, and
behaviors before they can learn the new ones. The most
important elements for creating organizational cultural
change are executive support and training. Executives in
the organization should not only support the cultural
changes in ways beyond verbal support but also provide
the behavioral support to change the culture. Hence, de-
veloping a culture where all the employees work together
as team plays an important role to survive in this com-
petitive world.
2.13. Conflict Management
In most conflicts the different perceptions collide to cre-
ate disagreement. Conflict is natural and needs to re-
spond quickly and professionally. It can be resolved for-
mally or informally. Successful conflict resolution occurs
by listening to the problems of all the parties and provid-
ing the most viable solution. The differences shall be
mitigated by stimulating creativity, promoting innovation,
and change management. Mismanaged conflicts and dis-
agreements harm important work and workplace rela-
tionships. Hence, effectively managed conflict promotes
cooperation and builds stronger relationships.
2.14. Management Attitude
Lise et al. [22] quoted that the industrial psychology has
controversial history related to the study and understand-
ing of employee attitudes and job satisfaction. Some of
this research is very specific and aimed primarily at other
researchers, while other publications provide practical
Copyright © 2013 SciRes. JHRSS
R. SINGH 24
guidance on understanding, measuring, and improving
employee attitudes (e.g., 23 & 24). One likely future di-
rection of employee attitude research will be to better
understand the interplay between the person and the
situation and the various internal and external factors that
influence employee attitudes. In particular, a better un-
derstanding of the role of emotion, as well as broader
environmental impacts, is needed which has been over-
looked in past research. In addition, ongoing research
will provide a more in-depth understanding of the effects
of employee attitudes and job satisfaction on organiza-
tional measures, such as customer satisfaction and finan-
cial measures. Greater insights on the relationship be-
tween employee attitudes and business performance will
assist HR professionals as they strive to enhance the es-
sential people side of the business in a highly competitive,
global arena. Agarwal [25] stated that with the adoption
of HR policies, such as, periodic review of employee
performance, adequate training for the workforce and
career advancement norms for its personnel, creating
motivation, and commitment in the workforce the or-
ganization can reap the full business benefits and become
successful to the great satisfaction of all its stakeholders.
3. Research Hypotheses
The proposed research hypotheses are shown in Figure 1.
It is based on the premise that Indian managers under-
stand the relationship between administrative skills, com-
petitiveness, and HRD policies. These hypotheses are
explained as follows:
H1: Indian bank managers have good administrative
skills to for industrial competitiveness
The growth trend in the banking sector and vast op-
portunities has made this sector attractive. Nowadays,
bank managers offer vast competitive schemes to attract
customers. These schemes shall not be implemented
without good administrative skills. To face the competi-
tion, the managers have developed sufficient administra-
tive skills to satisfy customers as well as employees to
face the competition in this industry. Hence, it leads to:
H2: They have developed HRD policies for competi-
tiveness
Nowadays, the banking sector organizes many semi-
nars and development programs to take competitive ad-
vantage. The HRD policies are modified for industrial
competitiveness. Hence it leads to:
Administrative Skills
Competitiveness
H
R
D
P
o
l
i
c
i
e
s
H2
H3
H1
Figure 1. Proposed research framework.
H3: Managers have good administrative skills to de-
velop and manage HRD policies
Taken the things together, has led to the understanding
that the managers have good administrative skills to de-
velop and implement HRD policies.
4. Database and Methodology
A survey questionnaire has been used as a primary in-
strument to collect information. The pre-pilot survey was
conducted based on a strong literature survey in consul-
tation with practitioners and consultants in the field of
banking sector. Based on their responses the necessary
corrections were made. Later, pilot survey was conducted
and again necessary corrections were made in the ques-
tionnaire. In the last full scale survey was conducted in
the principal cities of state Punjab, Chandigarh and Delhi.
A total of 450 questionnaires were distributed by ran-
domly selecting respondents from; bank organization’s
web-sites, telephone directory 2010 and PROWESS data
base maintained by CMIE. The questionnaires send were
followed in response and finally 289 questionnaires were
received from respondents operating in the banking sec-
tor (CEO/President/VP/GM/AGM = 25; Managers = 104;
Field Supervisor/clerk etc. = 160) yielding a response
rate of 64.2%. The questionnaire responses were digi-
tized using SPSS software and scale reliability was done.
A 14-item Likert scale was used to understand the re-
lationship among the manager’s administrative skills,
HRD policies, and Competitiveness. The seven variables
are covered under administrative skills-Management at-
titude, cultural support, efficient conflict management,
objective achievement, efficient organizational develop-
ment, management commitment, and degree of freedom.
The three variables have been covered under HR Poli-
cies-organizational policy, department policy and na-
tional policy. The four variables have been covered under
competitiveness-competitive organization, individual per-
formance organizational performance, and technological
development.
The statements/items so developed were rated on a
five point Likert scale. Pre-pilot and pilot survey was
done to improve the questionnaire. Based on recommen-
dations and suggestions the necessary corrections were
made. Later on, large scale survey was conducted in the
principal cities of state Punjab, Chandigarh, New-Delhi
and Gurgaon.
The items were refined and purified to obtain the reli-
able scale. For this purpose corrected item-to-total corre-
lation and Cronbach’s alpha statistics were used. Item
and reliability analysis was performed to retain and de-
lete scale items for the purpose of developing a reliable
scale. Corrected item-to-total correlations and Cron-
bach’s alpha statistics were employed to conduct this
type of analysis; to know the extent to which any one
Copyright © 2013 SciRes. JHRSS
R. SINGH 25
item is correlated with the remaining items in a set of
items under consideration.
This analysis found Cronbach’s alpha to be 0.9440 and
item-to-total correlation rage from 0.8364 to 0.5872 (Ta-
ble 1) and inter-item correlation is greater than 0.3. Here,
it is pertinent to mention that Alpha value greater than
0.6 and item-to-total correlation greater than 0.5 and in-
ter-item correlation greater than 0.3 is good enough for
conducting research in social sciences [26]. The mean for
the items is shown in Table 2. If all the 14 items were
rated at 5 the total value would be 70. However, the
mean value of 50.3080 indicates that 78.186% of the
items practiced in the banking industry. The results for
scale reliability and correlation are shown in Tables 1, 2
and 3.
4.1. Factor Analysis of Human Resource
Management in the Banking Sector
Hence, the entire requirements for conducting factor
analysis were met. The factor analysis was done using
Principal component analysis with varimax rotation. The
results are shown in Table 3.
4.2. Results for Structural Model
The theoretical framework for proposed models is shown
in Figure 1. The three hypothesized relationships among
competency development, employee motivation and or-
ganizational climate are shown. The results of Figure 2
using AMOS 4.0 version showed that the model has Chi-
square = 1.227, DF = 24, P = 0.00. All the loadings are
Table 1. Corrected item-to-total correlation, alpha and
communality for items of human resource management in
the banking sector.
CD
Scale mean if
item deleted
Corrected item-total
correlation
Commonality
Extracted
A1 48.4 0.58 0.98
A2 48.4 0.57 0.99
A3 48.4 0.55 0.97
B1 46.4 0.62 0.93
B2 46.4 0.58 0.92
B3 46.4 0.60 0.90
B4 46.4 0.60 0.95
C1 46.2 0.85 0.86
C2 46.2 0.88 0.87
C3 46.0 0.83 0.89
C4 46.0 0.81 0.89
C5 46.0 0.84 0.92
C6 46.0 0.81 0.90
C7 46.0 0.83 0.93
Table 2. Mean and standard deviation for items of human
resource management in the banking sector.
Code Item (S) Mean SD
A1 National Policy 1.8685 0.7840
A2 Organizational Policy 1.8720 0.7823
A3 Department Policy 1.8720 0.7823
B1 Organizational Efficiency 3.8443 0.8333
B2 Individual Performance 3.8478 0.8193
B3 Technological Development 3.8478 0.8150
B4 Competitive Organization 3.8512 0.8304
C1 Management Commitment 4.0934 0.8302
C2 Degree of Freedom 4.1003 0.8209
C3 Efficient Organizational Development 4.2249 0.8708
C4 Objective Achievement 4.2318 0.8690
C5 Cultural Support 4.2180 0.8883
C6 Efficient Conflict Management 4.2145 0.8794
C7 Management Attitude 4.2215 0.8697
N of Cases = 289. Statistics for Scale: Mean = 50.3080; Variance = 79.0472;
Std Dev = 8.8909; N of Variables = 14. Item Means: Mean = 3.5934; Mini-
mum = 1.8685; Maximum = 4.2318; Range = 2.3633; Max/Min = 2.2648;
Variance = 0.8957. Inter-item Correlations: Mean = 0.5420; Minimum =
0.1103; Maximum = 0.9915; Range = 0.8812; Max/Min = 8.9862; Variance
= 0.0682.
Table 3. Factor analysis results for human resource man-
agement in the banking sector.
Components
Items
Administrative
Skills
Competitiveness
HRD
Policies
Management Attitude 0.93
Cultural Support 0.91
Efficient Conflict
Management
0.91
Objective Achievement 0.91
Efficient Organizational
Development
0.90
Management Commitment 0.79
Degree of Freedom 0.79
Competitive Organization 0.95
Individual Performance 0.93
Organizational Efficiency 0.93
Technological Development 0.92
Organizational Policy 0.96
Department Policy 0.95
National Policy 0.95
Eigen Value 8.2 2.96 1.8
%Variance 58.9 20.6 13.0
Cumulative % Variance 58.90 79.5 92.5
Scale Reliability 0.99 0.97 0.97
Kaiser-Meyer-Olkin Measure of Sampling Adequacy = 0.867; Bartlett’s
est of Sphericity: Chi-Square = 7538.432; DF = 91; Sig. = 0.00. T
Copyright © 2013 SciRes. JHRSS
R. SINGH
Copyright © 2013 SciRes. JHRSS
26
Figure 2. Structural relationship between competency development, employee motivation and organizational climate.
Table 4. Effect estimates for structural model (Figure 2).
different. The fit measures are RMR = 0.010, GFI =
0.989, AGFI = 0.980, NFI = 0.986, RFI = 0.979, TLI =
0.96. The model is significant as the RMR is less than
0.05. The detailed results of analysis are shown in Figure
2.
Efcts Factors HRD Pol Cmpt. Adm Skl
Competitiveness 0.084 0.000 0.000
Total
Effect
Administrative Skills 0.678 0.430 0.000
Competitiveness 0.084 0.000 0.000
Direct
Effect
Administrative Skills 0.642 0.430 0.000
Competitiveness 0.000 0.000 0.000
Indirect
Effect
Administrative Skills 0.036 0.000 0.000
The effect estimates for structural model are shown in
Table 4. The total effect estimate is 0.683 for compe-
tency development and organizational climate. It also
shows the value of 0.812 for employee motivation and
organizational climate. The total effect for employee mo-
tivation and competency development is ?0.977. All
these values are significant to prove the hypotheses H1,
H2 and H3.
Chi-square = 378.758, DF = 74, P = 0.000, RMR = 0.05, GFI = 0.82, AGFI
= 0.80, TLI = 0.84, CFI = 0.802. Model is Significant.
cultural support shall help in understanding and manag-
ing the workplace. It is also required to influence the
management attitude for the betterment of employee as
well as the organization. Hence, management of com-
mitment is also an important variable for administrative
skill development. The employees should also be given
freedom to work in the right direction for betterment of
the business.
5. Conclusions, Discussion and Limitations
This paper aims to identify the items for administrative
skills, competitiveness and HR policies. The administra-
tive skills have the loading range from 1.0 to 0.7. All the
loadings are significant. The maximum loading has been
assigned to objective achievement (1.0). It is due to the
fact that this variable is the dominating variable to prove
the administrative skills. The efficient conflict manage-
ment (0.9), cultural support (0.9), management attitude
(0.9), degree of freedom (0.8), and management com-
mitment (0.7) also play significant role in administrative
skill development. The efficient conflict management
shall help to direct the teams towards right goals. The
The competitiveness has also significant loading of all
the variables-competitive organization (1.0), individual
performance (0.9), organizational efficiency (0.9), and
technological development (0.9). All the loadings are
significant. The maximum loading for competitive or-
ganization shows that this variable is the most dominat-
R. SINGH 27
ing. It is due to the fact that to survive in this competitive
world, the organizations need to develop competitive
spirit. It is also needed to upgrade technology from time
to time for efficient return. These developments are not
sufficient without the focus on individual as well as or-
ganizational performance.
The HR policies also have significant loading—organ-
izational policy (1.0), departmental policy (0.9), and na-
tional policy (0.9). All the loadings are significant. The
maximum loading of organizational policy shows that
rules and regulations should be uniform. Also, the de-
partmental policy should be without bias. The govern-
ment should also develop a uniform national policy to
minimize conflicts and dissatisfaction.
The Total Effect estimates have been shown in Table
4. The Total Effect of Administrative Skills on HR Poli-
cies is 0.678. Hence, it proves the hypothesis (H3):
Managers have good administrative skills to develop and
manage HRD policies. The Total Effect of Administra-
tive Skills on Competitiveness is 0.430. It clearly proves
the hypothesis (H1): Indian bank managers have good
administrative skills for industrial competitiveness. Also,
the Total Effect of Competitiveness on HR Policies (0.084)
proves the hypotheses (H2): They have developed HRD
policies for competitiveness.
All the Total Effects are significant. Also, the results
of the study are in consonance with the studies quoted in
the literature review. However, despite the statistical so-
phistication of structural equation modeling, this study
has the major limitations as few of the lot of top man-
agement participated in the study. Here, it is pertinent to
mention that these people are instrumental to develop
policies and procedures for Administrative Skills, HR
Policies, and Competitiveness. Also, the microscopic
structure of the organizations is very complex in nature
due to different attitude and perception of the respon-
dents. Hence, for more detailed analysis of these, the
groups and subgroups of the people are also needed to be
studied.
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