A bank is a financial institution licensed to
receive deposits and make loans. Two of the most common types of banks are
commercial/retail and investment banks. Depending on type, a bank may
also provide various financial services ranging from providing safe deposit
boxes and currency exchange to retirement and wealth management.
Human Resource Management is important for banks because banking is a
service industry. Management of people and management of risk are two key
challenges facing banks. How you manage the people and how you manage the risks
determines your success in the banking business
Compensation planning and remuneration
There are various rules regarding compensation and other benefits.
It is the job of the HR department to look into remuneration and compensation
planning.
Motivation, welfare, health and safety :-
Motivation becomes important to sustain the number of employees in
the company. It is the job of the HR department to look into the different
methods of motivation. Apart from this certain health and safety regulations
have to be followed for the benefits of the employees. This is also handled by
the HR department.
Industrial relations :-
Another important area of HRM is maintaining co-ordinal relations
with the union members. This will help the organization to prevent strikes
lockouts and ensure smooth working in the company.
Job analysis design :-
Another important area of HRM is
job analysis. Job analysis gives a detailed explanation about each and every
job in the company. Based on this job analysis the company prepares
advertisements.
Recruitment and selection :-
Based on information collected from job analysis the company
prepares advertisements and publishes them in the news papers. This is
recruitment. A number of applications are received after the advertisement is
published, interviews are conducted and the right employee is selected thus
recruitment and selection are yet another important area of HRM.
Orientation and induction :-
Once the employees have been selected an induction or orientation
program is conducted. This is another important area of HRM. The employees are
informed about the background of the company, explain about the organizational
culture and values and work ethics and introduce to the other employees.
Training and development :-
Every employee goes under training program which helps him to put
up a better performance on the job. Training program is also conducted for
existing staff that have a lot of experience. This is called refresher
training. Training and development is one area were the company spends a huge
amount.
Performance appraisal :-
Once the employee has put in around 1 year of service, performance
appraisal is conducted that is the HR department checks the performance of the
employee. Based on these appraisal future promotions, incentives, increments in
salary are decided.
Whilst having all the above mentioned practices
it is habitual that in 21st century ‘digitalization’ is taking over the world including the
banking sector, not only with the processors or servers but also with the functions which was earlier
performed by the humans.
What is digital transformation in banking?
Digital transformation in banking is
not only about using modern equipment and software but also about revising
approaches to management, communications, and corporate culture.
Examples of a digital transformation in banking are online banking applications, Fraud detection systems, virtual assistants, Website Optimization, Email Marketing, Data encryption, KYC software, and more.
Digitalization, as a
phenomenon, arose as a result of the development of information and
communication technologies. The economic sector was one of the first to feel
its influence, with the active development of the FinTech industry beginning
back in 2008. As a result of the economic crisis, financial structures were
forced to look for new ways to reduce costs while maintaining the quality of
services.
At the same time, the growth of the mobile technology market began, as well as the promotion of the concept of the Internet of Things and the blockchain, which accelerated the process. That’s where digital transformation in banking began to take hold.
Conclusion
It is something revolutionary
which has already affected the fields such as, Talent Management, Training and development and Performance management
functions within banks. Technological interventions and utilization of
Information Technology has loosen the burden of employees in the banking field while
creating a challenging environment for employees to work.
What is HRM? -
Definitions - Functions - Objectives - Importance - Evolution of HRM from
Personnel management. Human Resource[Online]. Available at https://www.whatishumanresource.com/human-resource-management .Accessed
on 21st December 2021.
Prachi Juneja.(No Date) Technology
and Banking Delivery Channels. Management Study Guide[Online].
Available at https://www.managementstudyguide.com/technology-and-banking-delivery-channels.htm .Accessed
on 21st December 2021.
As all aforementioned scopes rely on data which is the most valuable asset of nowadays businesses, we need to have accurate, timely, and dependable data fed in achieving great results. Also, the privacy of users is much important in different settings such as APEC, EU, OECD, and UN. What implementations we are looking at on ensuring this?
ReplyDeleteAPEC have privacy framework for information privacy of their members,EU also have comprehensive privacy legislation called GDPR.As well OECD & UN have information protection policies. Therefor people have to be humble & trustworthy.
DeleteAs your mentioned in the article recruitment and selection process make major role in Banking Industry. Do you think most of HR departments do it accordingly? It not what are the implementations to be done .
ReplyDeleteIsuri ,Ithink most HR departments do their best in recruitment & Selection process.Because they conduct primary screenings & interviews to select right person to right job.As well it's a process with many people.So they cannot engage with personal ethics.
DeleteThe banking sector has grown primarily involved in deposit acceptance and trade finance into a complex multi-player markets where large number of commercial banks, financial institutions and specialized banks are operating with various products and activities. With the facilities offering from banking sector like house finance and personal loans banks have become more market-based business so banks have to expand with the growing realization of proper HRM with important activities and customer care activities to thrive their business.
ReplyDeleteI agree with you Malaka.We need more sufficient framework for credit facilities.Still client have to visit many time to bank or a finance company for a credit or leasing facility.Virtual & Digitized workplans are more necessity in future.
DeleteThis is regarding the performance management process in the banking industry. Why do they actually wait till staff complete the first year of work to conduct the evaluation? It should be a proactive process whereas the evaluation should be carried out on weekly or monthly basis until they complete 3 months and then every 3 months till one year completion. So that the organization could provide the employees with relevant learning & development opportunities at the initial level after analyzing training needs of the staff.
ReplyDeleteChanika im not totally agree with you,because evaluating for a short period of time may contain many difficulties.It take sufficient time .We still have financial year,so i think its easy to evaluate once a year.
DeleteIn modern world many of the operational functions in banking sector are digitalized. There are automated systems like ATMs, CRMs, Cheque deposit machines and many more with 24x7 services. With the C-19 pandemic cutomer interaction with digital channels has increased significantly. However there are many more areas to be improved and technology can support to increase the efficiency and accuracy. Therefore it is main responsibility of HR to train the employees to face the next era of banking with good IT literacy.
ReplyDeleteI totally agree with you Oshadi.IT literacy is a must for Digitalization.Employees to be skillful with upcoming new technologies .
DeleteIn current world the organizations are looking for employees that can work well with new technologies but also display leadership, creativity, empathy and curiosity. In other words, although purely functional skills related to automation and AI are often essential for business growth, they are not enough. This is much clear in the finance sector employments with the digitalization of the work.
ReplyDeleteYes Piyumi,now we deal only with digital aspects not with sympathy.People just breathe with technology & they cannot survive without it.
Delete