Hrd at Sbi Essay


Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development. The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers. Organizations have many opportunities for human resources or employee development, both within and outside of the workplace.

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McLean and McLean (2001) have offered the following global definition of HRD after reviewing various definitions across the world: “ Human Resource Development is any process or activity that, either initially or over the longer-term, has the potential to develop adults’ work based knowledge, expertise, productivity, and satisfaction, whether for personal or group/team gain, or for the benefit of an organization, community, nation, or, ultimately the whole humanity”


Economic Development

* As the human resources of a country develop, the country progresses and the benefits spread all over the country.

Better skilled and well-trained human resources attract a larger foreign direct investment into the country and improve the brand image of the country internationally. HRD for an economy is dependent on the economic policy of the government and the effort by the institutions in the economy to actively participate in the development process.

Increase in Entrepreneurial Activity

* Human resource development may occur as a result of better education, training or development of vocational skills for individuals. This activity results in an increase in entrepreneurial activity due to the creative process that is encouraged by HRD. Moreover, even in an economy faced by high levels of unemployment, vocational training can generate substantial number of entrepreneurs who look for self-employment. Thus, HRD opens more options and wider avenues of success for individuals.

Increase in Productivity

* HRD leads to better and efficient utilization of the available resources. The same numbers of individuals are able to improve their performance through training or learning of more productive skills. This leads to an increase in productivity in the same company at the firm-wide level and to an increase in the overall value of goods produced at the country-wide level. An increase in productivity of employees generates high economic progress for the country.

Counteracting Social Taboos

* HRD can lead to a change in social perception of many people and can result in the development of the society. Better educated and skilled workers can think and act more constructively and result in a change of the social environment. Improved education leads to self-awareness and prevents individuals from embracing superstitions.

Human Rights

* A better trained and educated workforce is well aware of its rights and is better able to protect against human rights violations. Workplace environments improve and workers rights are acknowledged with HRD.


* At the firm-wide level, HRD leads to increased productivity and better client service. This leads to increased revenues at reduced costs for the company. Most companies today are focused on hiring a well-trained and competitive workforce in order to develop a unique selling point and enhance their profitability.

Demographic Effect

* HRD results in more households with two working parents. This provides enhanced income for the household and at the same time reduces the time available to parents for raising kids. As a result, a better educated workforce results in a smaller increase in the population of the country. For countries like India, HRD can help prevent the population from increaseing beyond control.


State Bank of India is the nation’s largest and oldest bank. Tracing its roots back some 200 years to the British East India Company (and initially established as theBank of Calcutta in 1806), the bank operates more than 15,000 branches withinIndia, where it also owns majority stakes in six associate banks. State Bank of India (SBI) has more than 80 offices in nearly 35 other countries, includingmultiple locations in the US, Canada, and Nigeria. The bank has other unitsdevoted to capital markets, fund management, factoring and commercial services,credit cards, and brokerage services. The Reserve Bank of India owns about 60%of State Bank of IndiaHuman Resources Development Department HRDD Vision

The Vision of the Human Resources Development Department (HRDD) isessentially to facilitate the Bank to carry out central banking activities, i.e.(i) To create an enabling environment to enhance the efficiency of the organization(ii) To draw out from our staff the very best by a system of proper placements,incentives, &(iii) To create an atmosphere of trust, a certain security of expectations and afeeling that the organization cares about the well being and personal aspirations of the staff. This would help align personal aspirations with professional goals andhelp enhance efficiency HRDD Mission

The Mission of HRDD is to create a facilitating environment to enhance theefficiency of the Bank; to empower the staff so as to draw out the latent potential;and to catalyze conditions for a more wholesome quality of life on the work as wellas personal front.Functions of HRDD a) To evolve HR policies on

* Recruitment: For the decade as a whole, for the SBI group, 25.4% of thestaff were officers, 51.0% were clerks, and 23.6% were subordinate staff.The composition of staff was the same for the nationalized banks with27.9% of staff being officers, 50.7% being clerks, and 21.4% beingsubordinate staff.

* Performance and Potential Appraisal : The promotion to a higher management level is best thought of through the lens of a tournament model(Lazear and Rosen, 1981) where the prize in terms of compensation for a position in the hierarchy is fixed in advance and is independent of absolute performance. In effect, an employee is promoted to the next higher level/grade not because he is good, but because he is better than everybodyelse at the current level/grade.

Placement :
Promotion and Career Progression :
Out of Turn Promotion/ Increment to Sports Person
Industrial Relations
Deputation / Secondment

Retirement and Voluntary Vacation

* Motivation
* Training Establishments
* Mobility (Transfer/Rotation)
* Remuneration and Reward Mechanism
* Staff Welfare
* Communication
* Organisational Development
* Training and Skills Upgradation (Policy and Implementation, both)
* Medical

b) Other than policy aspects
* Interface with other institutions, government, central banks, etc. on HRDissues
* To maintain up to date database on human resources in the Bank andundertake analytical studies and ongoing research on different manpower

* To make ongoing review of the appraisal system in order to make it an effective tool for HRD policy management

* To install and implement an effective counseling system

* To design career and succession plans

* To review and revitalize the training functions

* Summer Placement

* Formulate and administer the Staff Suggestion Scheme

* Publication of House Journal, Without Reserve


1.Competition in banking sector increases due to private banks. Private sector banks giving higher salaries to attract the talent. Thus it is necessary for SBIto increase its salaries. 2.Give more emphasis on training and development of employees. 3.Increase motivation by giving extra benefits.

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