HRD Climate in Indian Banks: A Comparison between SBI & KVB

Introduction Technology is changing the face of banking business in India. Nowadays, customers are demanding various services through traditional and internet banking systems. Consequently, there is an enormous increase in banking business. Hence, banks are using technology extensively also going for massive recruitment to face the challenge. In this context, the key issue confronting human resources development (HRD) system in banks is to align employees' attitudes, skills and knowledge with changing nature of work and growing expectations of customers. In a recent survey conducted by FICCI, banks unanimously asserted that HRD was the major issue faced by them. The survey indicates that few banks are still in the course of revamping their training programs and placing emphasis on hard skills as well as soft skills. They are keen to tie up with external training agencies for in-house training. Some have already tied up with top universities and business schools across the country to receive help in this initiative (FICCI, 2010). HRD Climate Perspectives HRD climate is an integral part of organizational climate. It comprises three elements viz. General Climate, OCTAPACE culture and HRD mechanisms and assumes the following: a) A supportive climate which consists of top management's and line management's commitment, good personnel policies and positive attitudes towards development of human resources is important for effective HRD. b) A successful implementation of HRD involves an integrated look at HRD mechanisms and efforts to use as many mechanisms as possible. These include training and development, performance and potential appraisal, career planning and development, performance based rewards, feedback and counseling, job-rotation, etc. c) OCTAPACE culture is essential for facilitating HRD. 'Openness' is said to be there when employees are allowed to freely express their ideas and exchange feelings with each other. 'Confrontation' is bringing out problems and issues into open with a view to solving them rather than hiding for fear of hurting or getting hurt. 'Trust' is taking the people at their face value and believing what they say. 'Autonomy' is giving freedom to let people work independently with responsibility. 'Proactivity' is to encourage employees to take initiative and risks. 'Authenticity' is the tendency on the part of people to do what they say. 'Collaboration' is to accept interdependencies, to be helpful to each other and work as teams. 'Experimentation' is to give human resources an opportunity to do experiments related to workplace activities (Rao & Abraham, 1986). Quality HRD Climate. Why? Since, technology ingrains in all aspects of functioning of a bank, there is a need to foster favorable HRD climate to exploit human resource potential for profiting from investments made in technology. Unlike in the past, now employees need to involve in teamwork that is interactive in nature, have system-wide understanding and specialized knowledge and possess customer assistance oriented competencies (Kamesam, 2004). When technology is becoming a great leveler, it is the people and people alone can make the difference and catapult the organization to newer and unconquered heights (Dinesh, 2012). Following are the main reasons for which banks are compelled to carry out HRD activities: (i) Lack of capable managerial workforce and there is a greater need for available talent due to increasing competition. (ii) The continued growth and development of business, coupled with increased complexities such as the problems of size, technology and competition add further pressures (Mani, 1994). Literature Review Rohmetra (1998) reports significant variations in HRD climate between SBI and J&K bank. Particularly, she finds several inadequacies in HRD climate of the private sector bank. Similarly, Gani and Shah (2001) find a poorly perceived climate in the banking industry. …