A CASE STUDY OF CANARA BANK EMPLOYEES IN ...

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International Journal of Multidisciplinary Research

Vol.2 Issue 4, April 2012, ISSN 2231 5780

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EFFECTIVENESS OF TRAINING AND DEVELOPMENT

PROGRAMMES- A CASE STUDY OF CANARA BANK EMPLOYEES IN

KURNOOL DISTRICT

DR. G. RAMAKRISHNA*; MRS. KAMESWARI**;

MR. M. GIRIDHAR KUMAR***; DR. CH. KRISHNUDU****

*In-Charge, Department of Management,

Rayalaseema University,

Kurnool, A.P. 518002.

**Research Scholar,

***Associate Professor & HOD of M.B.A.,

G. Pullaiah College of Engg. & Tech., Kurnool.

****Assistant Professor, SKIM,

Sri Krishnadevaraya University,

Anantapur, A.P. 515003.

ABSTRACT

In India the banking industry becoming more competitive than ever, private and public sector

banks are competing each other to perform well. The executives of the bank are now in the

position to modify their traditional human resources practice in to innovative human resources

practices in order to meet the challenges from other competitive banks. The Human Resource

Development department has to play a more proactive role in shaping the employees to fight out

the challenges. The banks not only have to make plans and policies and devise strategies, the

actual functionaries have to show competence and effectiveness in executing the said policies

and strategies.

In commercial organizations like banks, HRD departments have the advantages of not being

excessively burdened with day–to–day problems of running the banks or ensuring profitability of

individual transactions. They are in positions to take strategic and long term view of the

competitive advantage of the human resources as well as identify areas of professional

weaknesses to rectify well before any damage takes place in the organization. Indeed they have

the golden opportunity to implement the desired HR policies to improve and strengthen the

organization to withstand the onslaught of fierce competition in future.

KEYWORDS: Training & Development, Bank Employees, HRM in banks, HRD in banks,

Canara bank.

______________________________________________________________________________

INTRODUCTION

In India the banking industry becoming more competitive than ever, private and public sector

banks are competing each other to perform well. The executives of the bank are now in the

position to modify their traditional human resources practice in to innovative human resources

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practices in order to meet the challenges from other competitive banks. It is aimed to bring out

those innovative and best human resource practices developed and found successful that made

them more competitive in the present competitive banking environment in the various human

resource areas where they want to gain competitive advantage over the rival banks in order to

attract and retain the talents and to differentiate their human resources practice and other services

than the competitive banks.

A major challenge for many banks will be to develop the special competencies and skills

for credit appraisal and risk management in an environment of deregulation and openness. As

emphasized by Dr. Bimal Jalan, Governor of Reserve Bank of India, the recommendations of the

second Narasimhan Committee could provide useful guidance to banks particularly in recruiting

skilled manpower from the open market, including lateral induction of experts and deployment

of existing staff in new businesses and activities after suitable training. In this context, the

importance of building and reinforcing corporate vision and culture that fosters creativity and

recognizes talent and merit cannot be relegated to the behind. .

The Human Resource Development department has to play a more proactive role in

shaping the employees to fight out the challenges. The banks not only have to make plans and

policies and devise strategies, the actual functionaries have to show willingness, competence and

effectiveness in executing the said policies and strategies. In commercial organizations like

banks, HRD departments have the advantages of not being excessively burdened with day–to–

day problems of running the banks or ensuring profitability of individual transactions. They are

in positions to take strategic and long term view of the competitive advantage of the human

resources as well as identify areas of professional weaknesses to rectify well before any damage

takes place in the organization. Indeed they have the golden opportunity to implement the

desired human resources policies to improve and strengthen the organization to withstand the

onslaught of fierce competition in future.

Based on this perspective, an attempt has been made to highlight the factors which, if

implemented, may lead to substantial transformation of banks to compete in an environment of

risks and uncertainty.

REVIEW OF LITERATURE

Banking is a prime mover in the economic development of a nation and research is so

essential to improve its working results. The management without any right policy is like

“building a house on sand”. It means an effective management always needs a thorough and

continuous search into the nature of the reasons for, and the consequences of organisation. In line

with this, some related earlier studies conducted by individuals and institutions are reviewed to

have an in-depth insight into the problem and exploring the reformation of banking policy. An

overall view of a few studies is presented below.

Branch expansion is a thrust for economic development. Sharma said: “The expansion of

banking facilities was uneven and lopsided, and banks were concentrating their operations in

metropolitan cities and towns. A fairly large number of rural and semi urban centres with

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reasonable potentialities of growth failed to attract the attention of commercial banks. As far as

the deposit mobilization in the rural areas is concerned, much remains to be done.”1

The commercial banks had made a commendable progress in extending the frontiers of

banking both geographically and functionally and, as a result, cover a wider area and much

larger segment of population than did it in the pre-nationalization. ”The branching activities of

banks particularly in the rural areas are unprecedented in the banking sector of India. However,

coming to the issue of dispersion of their lending activities, we witness that the performance of

commercial banks was quite unimpressive and the urban orientation still appears to be persisting.

The credit-deposit ratio of banks in Bombay, Calcutta, Madras and Delhi cities has remained

almost at 100 percent during the period 1969-75.”2

V.N. Saxena stated that ”Improvement in the systems and procedures of inspection of

stocks, maintenance of stock register is required. Reforms should be initiated in extension of

sponsorship schemes, recovery and consultancy.” 3

S. Chandran stated that “Legal action should not be the inevitable last step in the process,

branches should be educated to evaluate this option for recovery, like any other option,

objectively before launching the same. Building up an information infrastructure at the apex

level first and at the lower tiers subsequently should be initiated.” 4

In a study on myth of viability of rural branches, it is argued that “there is nothing

inherently non-viable about banking in rural areas. Inadequate management competence in

individual bank is a major cause of the non-viability of rural branches of many public sector

bankls.”5

A.Gnanadoss, highlighted “the branch expansion statistics from 1969 to 1999 with a clear

comparison of rural branch expansion with total branch expansion. The study includes

comparison of structural deposits and credits of all scheduled commercial banks from 1950 to

2000. He has compared the performance of scheduled commercial banks in priority sector

lending during 1990 - 2000.”6

T Abhiman Das and Saibal Ghosh’s sample study conducted “to know the performance

of bank CEOs in the era of corporate governance, tried to identify the adaptability characteristics

of CEOs in terms of technology. The study also states that CEOs of poorly performing banks

are likely to face higher turnover than CEOs of well performing ones.” 7

Committee on Technology Upgradation in the Banking Sector, Constituted by R.B.I. with

Dr A.Vasudevan, as Chairman submitted report in 1999. The Committee has strongly advised to

adopt latest technology in Banking sector.8

The Government of India set up a nine-member committee under the chairmanship of

Narasimham, former Governor of Reserve Bank of India, to examine the structure and

functioning of the existing financial system of India and suggest financial sector reforms. The

report of the committee was tables in the Parliament on December 17, 1991. 9

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The Finance Ministry of Govt. of India appointed once again a committee under the

chairmanship of Sri M. Narasimhan to recommend reforms of the Indian banking sector.

Reviewing the developments that have taken place during the period 1991-98, the committee

made recommendations for reforming the banking sector. The Report was submitted in April

1998. 10

Madhu Lincoln, Rama Krishna and Venu Gopal Rao, conducted a study on “HRM

Practices in Public Sector and Private Sector Banks” and has suggested that HR policies of

Public Sector Banks should be revised there by making them more competitive in this

challenging era of globalisation”.11

NEED FOR THE STUDY

The last decade, which marks the era of liberalization and reforms in the country, has

been eventful one for the Banking industry changing the face of the industry far beyond

recognition. Technology has brought in substantial changes in banking in terms of customer

services and new product innovations. The introduction of Voluntary Retirement Scheme (VRS)

in public sector banks demonstrated the resolve of the Banking sector to take hard decisions to

gear up themselves in terms of human resources for today’s highly competitive environment.

On the other hand private sector banks are more dynamic in adopting latest Human

Resource Practices. It is in this scenario that a study on Effectiveness of Training and

Development Programmes with specific reference to Canara bank Employees in Kurnool District

is to be examined.

OBJECTIVES OF THE STUDY

The following are the objectives of the study:

To study about the training and development programmes offered for Canara Bank

employees.

To evaluate the effectiveness of the training and development programmes.

To ascertain satisfaction levels of employees on improving the present system

To seek the suggestions from by the employees on improving the present system.

METHODOLOGY

AREA SELECTION FOR PRIMARY DATA

Kurnool District of Andhra Pradesh has been selected for the purpose of primary data collection.

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SELECTION OF BANKS

Canara Bank has been selected for the purpose of study because, it is one of the oldest banks in

India.

PRIMARY AND SECONDARY DATA:

To carry out the objectives, the researcher has used both primary and secondary data. The

secondary data and information have been collected from various sources like business

newspapers, journals, magazines, RBI Reports and publications, IBA publications, NIBM

publications etc. Primary data has been collected through structured questionnaire from the

employees of Andhra Bank (public sector bank) and ING Vysya (private sector bank).

TABLE 1: DETAILS OF CANARA BANK IN KURNOOL DISTRICT

Name of the

Branch

No. of Managerial

cadre employees

No. of Officer

cadre employees

No. of Clerical

and other lower

cadre employees

Total No. of

Employees in the

branch

Adoni 1 5 2 8

Belagal 1 4 1 6

Circle Office 12 9 18 39

H. Kairawadi 1 3 1 5

Kurnool 3 11 4 18

Nandyal 2 7 4 13

Pyalakurthy 1 3 2 6

Varkur 1 4 1 6

Total 22 46 33 101

Source: Compiled from bank manuals.

SAMPLE OF THE STUDY: 85 employees covering all Canara bank branches in Kurnool

District have been considered for the study at random.

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TABLE 2: DETAILS OF SAMPLE SIZE

Designation Total No. of employees Sample size Percentage

Managers 22 19 86.36%

Officers 46 41 89.13%

Clerk and other lower

cadres

33 25 75.76%

Total 101 85 84.16%

Source: Field survey

SAMPLING TECHNIQUE

Simple random sampling technique has been employed in this study.

DATA ANALYSIS AND INTERPRETATION

The primary and secondary data collected from different sources have been tabulated and

interpreted meaningfully. The information has been represented using bar charts, pie diagrams,

graphical method etc.

SCOPE OF THE STUDY

Scope of the study has been confined to Canara bank branches located in Kurnool District

of Andhra Pradesh only.

TABLE 3: DETAILS OF NUMBER OF TRAINING & DEVELOPMENT

PROGRAMMES ATTENDED

NO. OF PROGRAMMES SAMPLE SIZE PERCENTAGE

LESS THAN 3 4 4.71

3-6 18 21.18

ABOVE 6 63 74.12

TOTAL 85 100

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INFERENCE: It can be inferred from the above table that, majority of 74.12% of the employees

have attended more than 6 training and development programmes, 21.18% of the employees

have attended more than 3 and less than 6 training and development programmes and 4.71% of

the employees have attended less than 3 training and development programmes.

TABLE 4: OPINION ABOUT THE NECESSITY OF TRAINING & DEVELOPMENT

PROGRAMMES

Opinion Sample Size Percentage

Strongly Agree 46 54.12

Agree 34 40.00

To Some Extent 2 2.35

Disagree 3 3.53

Strongly Disagree 0 0

Total 85 100

INFERENCE: It can be understood from the above table that, majority of 54.12% of the

employees strongly agreed about the necessity of training and development programmes, 40.00%

of the employees have agreed about the necessity of training and development programmes,

3.53% of the employees Disagreed about the necessity of training and development programmes

and 2.35% of the employees have agreed to some extent about the necessity of training and

development programmes.

TABLE 5: OPINION TOWARDS TRAINER’S SUBJECT KNOWLEDGE


Excellent 42 49.41

Good 42 49.41

Fair 1 1.18

Bad 0 0

Poor 0 0

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Total 85 100

INFERENCE: It can be interpreted from the above table that, 49.41% of the employees rated

trainers subject knowledge as Excellent, 49.41% of the employees rated trainers subject

knowledge as Good and 1.18% of the employees rated trainers subject knowledge as Fair.

TABLE 6: OPINION TOWARDS TRAINER’S EXPERIENCE


Excellent 38 44.71

Good 45 52.94

Fair 2 2.35

Bad 0 0

Poor 0 0

Total 85 100

INFERENCE: It can be seen from the above table that, majority of 52.94% of the employees

rated trainers experience as Good, 44.71% of the employees rated trainers experience as

Excellent and 2.35% of the employees rated trainers experience as Fair.

TABLE 7: OPINION TOWARDS TRAINER’S PREPARATION


Excellent 34 40.00

Good 48 56.47

Fair 3 3.53

Bad 0 0

Poor 0 0

Total 85 100

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INFERENCE: It can be concluded from the above table that, majority of 56.47% of the

employees rated trainers preparation as Good, 40.00% of the employees rated trainers

preparation as Excellent and 3.53% of the employees rated trainers preparation as Fair.

TABLE 8: OPINION TOWARDS TRAINER’S STYLE AND DELIVERY


Excellent 48 56.47

Good 31 36.47

Fair 6 7.06

Bad 0 0

Poor 0 0

Total 85 100

INFERENCE: It can be visualized from the above table that, majority of 56.47% of the

employees rated trainers style and delivery as Excellent, 36.47% of the employees rated trainers

style and delivery as Good and 7.06% of the employees rated trainers style and delivery as Fair.

TABLE 9: OPINION TOWARDS TRAINER’S INTERACTION WITH THE GROUP


Excellent 42 49.41

Good 38 44.71

Fair 5 5.88

Bad 0 0

Poor 0 0

Total 85 100

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INFERENCE: It can be inferred from the above table that, 49.41% of the employees rated

trainers interaction with the group as Excellent, 44.71% of the employees rated trainers

interaction with the group as Good and 5.88% of the employees rated trainers interaction with

the group as Fair.

TABLE 10: OPINION TOWARDS TRAINER ABOUT CREATING A LEARNING

ATMOSPHERE


Excellent 52 61.18

Good 29 34.12

Fair 4 4.71

Bad 0 0

Poor 0 0

Total 85 100


employees rated trainers creating learning atmosphere as Excellent, 34.12% of the employees

rated trainers created learning atmosphere as Good and 4.71% of the employees rated trainers

created learning atmosphere as Fair.

TABLE 11: OVERALL RATING TOWARDS THE TRAINER OF T&D PROGRAMMES


Excellent 24 28.24

Good 55 64.71

Fair 6 7.06

Bad 0 0

Poor 0 0

Total 85 100

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INFERENCE: It can be identified from the above table that, majority of 64.71% of the

employees given overall rating for trainers as Good, 28.24% of the employees given overall

rating for trainers as Excellent and 7.06% of the employees given overall rating as Fair.

TABLE 12: RATING TOWARDS IMPROVEMENT IN INTERPERSONAL

RELATIONS


Excellent 39 45.88

Good 42 49.41

Fair 4 4.71

Bad 0 0

Poor 0 0

Total 85 100

INFERENCE: It can be inferred from the above table that, 49.91% of the employees given

rating for improvement in interpersonal relations as Good, 45.88% of the employees given rating

for improvement in interpersonal relations as Excellent and 4.71% of the employees given rating

for improvement in interpersonal relations as Fair.

TABLE 13: RATING TOWARDS IMPROVEMENT IN PROBLEM SOLVING ABILITY

OPINION SAMPLE SIZE PERCENTAGE

EXCELLENT 25 29.41

GOOD 55 64.71

FAIR 5 5.88

BAD 0 0

POOR 0 0

TOTAL 85 100

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employees given rating for improvement in problem solving abilities as Good, 29.41% of the

employees given rating for improvement in problem solving abilities as Excellent and 5.88% of

the employees given rating for improvement in problem solving abilities as Fair.

TABLE 14: RATING TOWARDS IMPROVEMENT IN DECISION MAKING SKILLS

OPINION SAMPLE SIZE PERCENTAGE

EXCELLENT 24 28.24

GOOD 53 62.35

FAIR 3 3.53

BAD 0 0

POOR 0 0

TOTAL 85 100

INFERENCE: It can be identified from the above table that, majority of 62.35% of the

employees given rating for improvement in decision making skills as Good, 28.24% of the

employees given rating for improvement in decision making skills as Excellent and 3.53% of the

employees given rating for improvement in decision making skills as Fair.

TABLE 15: RATING TOWARDS IMPROVEMENT IN TEAM EFFECTIVENESS


Excellent 15 17.65

Good 67 78.82

Fair 3 3.53

Bad 0 0

Poor 0 0

Total 85 100

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INFERENCE: It can be observed from the above table that, majority of 78.82% of the

employees given rating for improvement team effectiveness as Good, 17.65% of the employees

given rating for improvement team effectiveness as Excellent and 3.53% of

TABLE 16: RATING TOWARDS IMPROVEMENT IN COORDINATION AMONG

THE EMPLOYEES


Excellent 35 41.18

Good 45 52.94

Fair 4 4.71

Bad 0 0

Poor 0 0

Total 85 100

INFERENCE: It can be analysed from the above table that, majority of 52.94% of the

employees given rating for improvement in coordination among the employees as Good, 41.18%

of the employees given rating for improvement in coordination among the employees as

Excellent and 4.71% of the employees given rating for improvement in coordination among the

employees as Fair.

TABLE 17: OVERALL RATING FOR TRAINING & DEVELOPMENT

PROGRAMMES


Excellent 9 10.59

Good 74 87.06

Fair 2 2.35

Bad 0 0

Poor 0 0

Total 85 100

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INFERENCE: It can be interpreted from the above table that, majority of 87.06% of the

employees given overall rating for training and development programmes as Good, 10.59% of

the employees given overall rating for training and development programmes as Excellent and

2.35% of the employees given overall rating for training and development programmes as Fair.

LIMITATIONS OF THE STUDY

In a study of this magnitude though, meticulous care has been taken in each and every aspect of

study. Certain limitations are likely to be there in the study.

1. Some respondents were not aware of certain procedures and aspects of HRM.

2. A few respondents were hesitant to give details.

3. There might be a sense of bias crept in answers given by the respondents.

REFERENCES

1. Sharma, B.P., “The Role of Commercial Banks in India’s Developing Economy”, Sultan

Chand and Company Pvt. Limited, New Delhi,1974, p.1.

2. Economic Research and Planning Department. “Concentration of Banking in Major Cities,”

Pigmy Economic Review, Vol.23, No.1, August 1977, p.1-7.

3. V.N. Saxena, “Promotion of priority sector advances :Small scale industries”, Project report,

NIBM, Pune, 1978, p.33.

4. S. Chandran, “A Study of Non-performing assets of Bank of India (A management

perspective)”, Project report, NIBM, Pune, 1989, p.139.

5. Ramappa, P., “Performance of Regional Rural Banks, with Special Reference to the

Rayalaseema Region of Andhra Pradesh”, S.K.University, Anantapur, 1996, p.12.

6. A.Gnanadoss, “Perspectives of Indian Banking system” Indian Economic Panorama, Special

Banking Issue, 2001, p.62.

7. Abhiman Das and Saibal Ghosh, “Corporate governance in Banking system - An empirical

investigation”, Economic and Political Weekly, 2004, p.1263.

8. Dr. A. Vasudevan, “Report of the Committee on Technology Upgradation in the Banking

Sector”, RBI, NewDelhi, 1999.

9. S.N. Maheshwari, R.R.Paul, “Banking and Financial Services”, Kalyani Publishers, Ludhiana,

2001, p.101.

10. S.N. Maheshwari, R.R.Paul, “Banking and Financial Services”, Kalyani Publishers,

Ludhiana, 2001, p.104.

11. Madhu Lincoln, Rama Krishna and Venu Gopal Rao, “HRM Practices in Public Sector

Banks and Private Sector Banks”, Manglam Publications, Delhi, 2008.

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