PROJECT REPORT ON

TRAINING AND DEVELOPMENT

AT
BANK OF INDIA
SUBMITTED TO BHUBANESWAR ENGINEERNING COLLEGE
MASTER IN BUSINESS ADMINISTRATION
BY
NAVEEN KUMAR DAS
REGD NO- 1806316026

UNDER THE GUIDANCE

Mr. Abhaya Kumar Satapathy

Project report submitted to Bhubaneswar Engineering College in

partial fulfilment of the requirement of 3rd semester MBA
examination of BPUT,ODISHA-2018-2020
 ACKNOWLEDGEMENT

It is a great pleasure to have this opportunity to describe the feeling of

gratitude imprisoned in the core of my heart.

I convey my sincere gratitude to Mr.P P Ramachandran manager of

Jharsuguda Branch for giving me the opportunity to prepare my project
work in Bank of India. I express my sincere thanks to all staff members of
Bank of India.

I am thankful to Mr. Abhaya Kumar Satapathy for her guidance

during my project work and spending her valuable time for same. I express
my sincere obligation and thanks to all the faculties of BEC for their
valuable advice in guiding me at every stage in bringing out this report.

I am also thankful to my family for their kind co-operation which made my

task easy.
 DECLARETION

I Naveen Kumar Das student of BEC (BHUBANESWAR

ENGINEERNING COLLEGE, BBSR) 2018-20 batch bearing Roll no-
1806316026 here by declare that the project work entitled “TRANING
AND DEVELOPMENT” is an original work carrier out in partial fulfilment of
the requirement of MBA program on BEC.

It is only for academic purpose and has not been published or presented
anywhere else .

All the information here through the project is true to the best of my
knowledge.

NAVEEN KUMAR DAS

REGD NO.- 1806316026
BEC BHUBANESWAR
 CONTENTS

Chapter 1-Introduction

Chapter 2-Industry Profile

Chapter 3-Company Profile

Chapter 4-Conceptual Profile of the Project

Chapter 5-Research Design & Methodology

Chapter 6-Finding, Analysis & Suggestions

Chapter 7-Conclusion
 CHAPTER-1
Introduction

Banks were considered as a backbone to the financial system and play an important
role in economic development of a nation. They act as intermediaries in channelizing funds
from surplus units to deficit units to the fully utilization of the funds. An efficient banking
system of nations has significant positive externalities Which increase the efficiency of
economic transaction in general. There is a Major shift in banking system in the policy
atmosphere after the introduction of Financial sector reform in 1992; these reforms impact
the working of commercial Banks. As one of the objectives of financial sector reform was to
improve the Efficiency of banking system in India economy. The financial system's
contributes to the economy depends upon the Quantity and quality of its service and
efficiency with which it provides Them. Financial System of any country consists of financial
markets, financial Intermediation and financial instruments or financial products. The term
"finance" In our simple understanding it is perceived as equivalent to 'Money'. The word
"System", in the term "financial system", implies a set of complex and closely Connected or
interlined institutions, agents, practices, markets, transactions, Claims, and liabilities in the
economy. The financial system is concerned about Money, credit, and finance-the three
terms are intimately related yet are Somewhat different from each other. Indian financial
system consists of financial Market, financial instruments, and financial intermediation. A
Financial Market can be defined as the market in which financial assets Are created or
transferred. As against a real transaction that involves exchange Of money for real goods or
services, a financial transaction involves creation or Economy.
The Indian financial system is broadly classified into two broad groups:

I) Organized sector and

ii) Unorganized sector.

"The financial system is also divided into users of financial services and

Providers. Financial institutions sell their services to households, businesses, and

Government. They are the users of the financial services. The boundaries

Between these sectors are not always clear-cut. In the case of providers of

Financial services, although financial systems differ from country to country, there

Are many similarities.

(I) Central bank

(ii) Banks

(iii) Financial institutions

(iv) Money and capital markets and

(v) Informal financial enterprises.

1. Organized Indian Financial System

The organized financial system comprises of an impressive network of Banks, other

financial and investment institutions and a range of financial Instruments, which together
function in fairly developed capital and money Markets. Short-term funds are mainly
provided by the commercial and Cooperative banking structure. Nine-tenth of such banking
business is managed By twenty-eight leading banks which are in the public sector. In
addition to Commercial banks, there is the network of cooperative banks and land
Development banks at state, district, and block levels.

2. Unorganized Financial System

On the other hand, the unorganized financial system comprises of

Relatively less controlled moneylenders, indigenous bankers, lending pawn

Brokers, landlords, traders etc. This part of the financial system is not directly

Amenable to control by the Reserve Bank of India (RBI). There are a host of

Financial companies, investment companies, and chit funds etc., which are also

Not regulated by the RBI or the government in a systematic manner.

However, they are also governed by rules and regulations and are,

Therefore within the orbit of the monetary authorities. As the word 'Bank' is an

Organization for receiving, storing providing money and other financial

Mechanism to different players within the economy and assisting them in

Deploying there funds in productive activities. The state no bank in financial sector

Could be described as a classical example of financial repression, until the

Beginning of 1990's.

Nationalization Act 1969, 14 largest public sector banks were nationalized which

Raised the Public Sector Bank's (PSB) share of deposits from 31 per cent to 86

Per cent. The two main objectives of the nationalization were rapid branch

Expansion and channelling of credit in line with priorities of the year plan to

Achieve these goals the newly nationalized bank received quantitative target for

The expansion of branch network and for the percentage of credit they had to

Extend to certain sector and groups in the economy, known as priority s sector,

Which initially stood 33 per cent. Six more banks were nationalized in 1980

Which raised the public sector's share of deposits to 92 per cent. The second

Wave of nationalization occurred because of control over the banking system

Which increasingly more important as a means to ensure priority sector lending to

Reach the poor through a branch expansion network and to raising public deposit.
 OBJECTIVES OF THE STUDY
The major objectives of the study are to assess the impact of reform

Measures on the efficiency, profitability and overall performance of SBI and ICICI

For the period 2000-2001 to 2011-2012. The specific objectives of the study are;

1. To find out some glaring reasons of lower efficiency in SBI and ICICI

Banks and suggest ways and means to improve the efficiency of these two

Banks.

2. To make comparative analysis of the financial performance of SBI and ICICI

Airier

3. To suggest future prospect for these two banks.

4. To analyse the financial performance of State Bank of India.

5. To analyse the financial performance of ICICI bank.

6. To compare State Bank of India and ICICI bank on the basis of their financial

Performance.

Importance and Significance of the study

The Indian banking industry is passing through a phase of customers

Market. The customers have more choices in choosing their bank .The

Competition has been established within the bank operating in India. With stiff

Competition and advance technology, the service provided by the bank have

Become more easy and convenient This Study will gave a base to the further

Research in this field.

 LIMITATION OF THE STUDY

1. The study is primary based on secondary data. Different tools used for the

Study may suggest different results as the approach differs. Some

Changes in accounts procedure by concern may often make financial

Analysis misleading.

2. It does not consider changes in price level.

3. The study considers data of only limited duration of time.

4. It is based on only on monetary information and non-monetary factors are

Ignored.

5. It is only study of interim reports of the concern.

6. The study is based on selected schemes therefore limiting the area of

Research.

7. This analysis is carried on certain assumptions hence the assumptions

Would be biased.
CHAPTER-2
Industry Profile

INTRODUCTION GENERAL INTRODUCTION BANKING

Banking, the business of providing financial services to consumers and businesses. The
basic services a bank provides are checking accounts, savings accounts and time deposits
that can be used to save money for future use; loans that consumers and businesses can
use to purchase goods and services; and basic cash management services such as check
cashing and foreign currency exchange. TYPES four types of banks specialize in offering
these basic banking services: 1) commercial banks, 2) savings and loan associations, 3)
savings banks, and 4) credit unions. A broader definition of a bank is any financial
institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards
money for its customers. This broader definition includes many other financial institutions
that are not usually thought of as banks. These institutions include finance companies,
investment companies, investment banks, insurance companies pension funds, security
brokers and dealers, mortgage companies, and real estate investment trusts. PURPOSE
Banking services serve two primary purposes. First, by supplying customers with the basic
mediums-of-exchange (cash, checking accounts, and credit cards), Second, by accepting
money deposits from savers and then lending the money to borrowers, banks encourage the
flow of money to productive use and investments. This in turn allows the economy to grow.
Enabling the flow of money from savers to investors is called financial intermediation, and it
is extremely important to a free market economy.

Current Scenario:

The industry is currently in a transition phase. On the one hand, the PSBs, which are the
mainstay of the Indian Banking system are in the process of shedding their flab in terms of
excessive manpower, excessive non-Performing Assets (Naps) and excessive governmental
equity, while on the other hand the private sector banks are consolidating themselves
through mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assets are
saddled with NPAs (a mind-boggling Rest 830 billion in 2000), falling revenues from
traditional sources, lack of modern technology and a massive workforce while the new
private sector banks are forging ahead and rewriting the traditional banking business model
by way of their sheer innovation and service. The PSBs are of course currently working out
challenging strategies even as 20 percent of their massive employee strength has dwindled
in the wake of the successful Voluntary Retirement Schemes (VRS) schemes.

FUTURE PLANS OF THE ORGANIZATION

To provide excellent professional services and improve its position as a leader in the field of
finance and related service, build and maintain a team of motivated and committed
workforce with high work ethos; uses latest technology aimed at customer satisfaction and
act as effective catalyst for socio-economic development. The bank is committed to its
corporate mission to provide excellent professional services and improve its position as
leader in the field of financial and related services, build, maintain a team of motivation and
committed workforce with high work ethos, use latest technology, aimed at customers and
act as an effective catalyst of socio-economic development. Punjab National Bank has
focused quite bit in rural areas, which is actually needed for our country. Their ATMs are
given the facility of English, National Language Hindi and the local language of the state.
They also provide mobile top-up facility.

Future Plans

BOI is planning to increase its presence in the EU by opening new branches and offering
complete financial services to its customers, including guidance for entering the market,
loans, remittances, etc.BOI has plans to open a branch in Antwerp (Belgium) to cater to the
requirements of diamond merchants, traders and in this segment BOI is market leader in
India. BOI will have 9 branches in the EU to service its customers.
BOI also plans to enhance its services to Indian companies that are investing in the UK. It
has plans to assist them in generating corporate and project finance for their investments
abroad. It plans to increase its focus on other diversified services, apart from banking
services such as venture capital, merchant banking. The bank also hopes to leverage IT
technology and develop quality products and services for increasing its reach and gaining
competitive advantage.

Factors for Success

Offshore Credit Services the Bank of India has a locally incorporated branch in the UK. Apart
from retail services, it also provides cross-border loans to joint ventures and wholly owned
subsidiaries of Indian companies. This helps these Indian companies to secure loans,
allowing them to increase their presence in the EU. The bank facilitates Indian companies in
raising trade finance, letters of credit or project finance for their business ventures in the
EU. This has enabled the bank’s growth, since many Indian companies are venturing in the
EU.

Technology Implementation the Bank of India has been the leading bank in India to adopt
new technologies to provide better services to its consumers.
CHAPTER-3
Company Profile

Bank of India (BOI)

Bank of India was initially a private owned bank, when in it was established in the year
1906 on 7th September. After almost 63 years from its establishment, in the month of July,
1969, this Indian bank was transformed into a nationalized bank. Starting its operation with
just 50 employees in a Mumbai based office, this bank has grown rapidly over these years.
Presently, it has got a strong national as well as sizable international presence and is
considered to be one of the premier nationalized banks in India. Apart from 3, 752 branches
with more than 800,000 machines worldwide, ATMs have made hard cash just seconds
away all throughout the day at every corner of the globe. Bank in India has even got one
joint venture and three subsidiaries abroad.

The bank has 65 branches in Coimbatore Zone and all these branches were fully
computerized. Of these 35 were connected to the 750 branches located in different parts of
the country.

Bank of India opened an ATM at its Karachi Industrial Estate branch premises. This is the
third ATM of the bank in the city.

The bank has started introducing Biometric Automatic Teller Machines (ATMs) as it seems to
be an effective way of preventing PIN theft and is also a channel to expand a bank’s reach
to the rural & illiterate masses, according to Bank net India’s Report on Indian ATMs.

Its international footprints located in London, New York, Tokyo, Paris, Singapore and Hong
Kong accounts for approximately 17.82 % of B. O. I.’s total business. This was the first
bank from India to establish a foreign branch in 1946 in London and in 1974 at Paris in
Europe. This Indian bank is associated with B. S. E. (Bombay Stock Exchange) since the
year 1921.

Products and Services of Bank of India

In spite of being a public sector bank, this bank has got all kinds of products and services,
which one can get in a modern bank. With their firm adherence to the policy of caution and
prudence, they have been one of the leaders in introducing different kinds of innovative
 banking services and solutions. Following are the different services offered by B. O. I. in
India:

Ancillary Services
Some of the popular supplementary services offered by the bank are as follows:
 Depository Services
 Gold Coin (New)
 Insurance (Domestic travel, health, education etc.)
 Mutual Fund
 Remittance
 Safe Custody
 Safe Deposit Locker
 Star Cash Management Service
Cards
Apart from the normal credit or debit cards, this bank even offers valued visa or master
cards to its worldwide customers. The names of some of the cards offered by this Indian
bank are given below:
 Bank of India Master Card
 Bank of India VISA Card
 Gift Card
 Platinum Debit Card
 VISA Electron
Deposit Schemes
This bank offers varied types of deposit schemes like savings accounts, current accounts,
salary accounts, fixed deposits, term deposits, recurring deposits, double benefit deposits,
income certificates (Both quarterly and monthly) and many more. To name a few of these
products are:
 Jai Juwan Salary Plus Accounts (New)
 Star Benefit C. D. Plus Accounts
 Star Diamond Savings Account
 Star Flexi Recurring Deposit Scheme
 Star Power Salary Account
 Star Sandhi Tax Saving Deposit Scheme
 Star Suraksha S. B. Plus Account
Bank of India Loans
The following are the names of the loans provided by the different branches of B. O. I.
located all over the country:
StarAuto fin
The Scheme provides loan for purchasing 2/4 wheeler vehicles (like car, scooter, motorcycle
etc.). Maximum amount of loan is ` 25 lacs, depending upon cost of vehicle & income of
proponent, at attractive rates of interest and easy repayment plans.
Star Educational Loan
the Educational Loan Scheme aims at providing financial support from the bank to
deserving/ meritorious students for pursuing higher education in India and abroad.
Star Holiday Loan
To meet the expenses (like airfare/Train/Bus charges, expenses for accommodation,
 sightseeing, etc.) for going for pilgrimage/tours/excursions etc. undertaken/to be
undertaken by Self/spouse/children/ parents/family members/close relatives of proponent
within India or abroad.
Star Home Loan
This type of Bank of India Loans provides loans to purchase a Plot for construction of a
House, to purchase/construct house/flat, as well as for renovation/repair/alteration/addition
to house/flat, furnishing of house, Takeover of customer's Housing Loan extended by other
Banks/F.Is /NBFCs at highly flexible and liberal terms and conditions.
Star I. P. O.
To subscribe to Initial Public Offerings (IPO) including through book-building.
Star Mortgage Loan
This scheme provides loan/overdraft facility against mortgage of property at low rate of
interest. The scheme is for people engaged in trade, commerce & business and also
professionals &self-employed, Prop. Firm, partnership firm, companies, NRIs and individuals
with high net worth including salaried people, agriculturists and staff members. The product
provides an opportunity to customers to borrow against a fixed asset (mortgage of
property) at a short notice without much paper work/attendant hassles.
Star Mitre Personal Loan
The objective of this type of Bank of India Loans is to help Physically Challenged persons to
function independently and the purpose is to purchase durable and sophisticated aids /
appliances that promote their physical and social rehabilitation.

Star Pensioner Loan Scheme

The target Customers of this type of Bank of India Loans are the Regular Pensioners or
Family Pensioners drawing regular monthly pension through the branch and the eligibility is
retired employees (other than dismissed/compulsorily retired).

Bank of India Personal Loans

 Star Personal Loan :
Under the Bank of India Personal Loan system the Star Personal Loan Scheme provides
loans to meet various Personal requirements of customers and their family.
Bank offers loans for marriage expenses, medical expenses, educational expenses,
purchase of consumer durables etc. Maximum quantum of advance is Rs.10.00 lakhs,
depending upon the income, with very attractive interest rate and easy repayment plan.

 Star Mitre Personal Loan

(A SPECIAL LOAN SCHEME FOR THE PHYSICALLY CHALLENGED)
Under this scheme of the Bank of India Personal Loan system the following are
stated:
 Objective: To help physicallychallenged persons to function independently.
 Purpose: To purchase durable and sophisticated aids / appliances that promote their
physical and social rehabilitation.
 Eligibility: All Physically Challenged Individuals-both salaried and self-employed, All
Physically Challenged Minors through their Parents/Legal Guardians. (No advances to
middle-men and NGOs).
 Type of Advance: Demand / Term Loan - Secured.
 Amount: Max. ` 1 lac (No minimum stipulation).
 Eligible Amount: 10 times of net salary for salaried persons and 50% of net annual
income as per latest Income Tax Return for Self-employed/Professionals.Net take home
income should not be less than 40% after availing this loan. (In case of Minors, the income
of the Parents/Legal Guardians would be the deciding criteria for eligibility).
 Margin :10%
 Repayment: 12 to 60 months, commencing one month after full disbursement/three
months after first disbursement, whichever is earlier.
 Rate of Interest: At 9% p.a. (Fixed Rate compounded monthly, on daily reducing balance
basis).
 Security :Hypothecation of the Equipment purchased out of Bank Finance
 Insurance: Waived. However, borrower is advised to obtain insurance at his own cost.
 Processing Charges: Waived.
 Other Terms and Conditions :
1. Doctor's Certificate to be obtained regarding the extent of handicap and the need for the
equipment.
2. Quotation/Invoice in respect of the equipment to be purchased.
3. Stamped receipt to be submitted after purchase of the equipment.
Bank of India Home Loans
Bank of India Home Loans system is quite varied. There are various types of Loans that are
provided by the Bank of India.

Star Home Loans

 Provides loans to purchase a Plot for construction of a House, to purchase/construct
house/flat, as well as for renovation/repair/alteration/addition to house/flat, furnishing of
house, Takeover of customer's housing loan extended by other Banks/F.Is /NBFCs at
highly flexible and liberal terms and conditions.
 Under the Bank of India Home Loans services the maximum loan amount is ` 300 lacs and
repayment ranges up to 20 years, with a very reasonable margin and nominal processing
charges. No commitment /administrative charges.
 The Home Loans are provided at very Competitive Rates of Interest, currently available in
the industry.
 In the Bank of India Home Loans system there are options for different EMI amounts for
different periods during tenure of loan to suit the customers' repayment capacities.
Prepayment of Loan permitted
 Option for Floating as well as Fixed Rate of Interest.
 Interest is calculated on daily balance basis which is of great advantage to customer as it
results in lower interest amount.
 Home Loans are given to NRIs as well as Persons of Indian Origin.
 Simplified application form/procedures for convenience of customers, and speedy
approvals.
 Free Personal Accident Insurance Cover
 Life Insurance Cover to borrowers for Loan Protection(optional)
The Bank's corporate personality and philosophy are fully reflected in the emblem, which is
a five-pronged Star a harmonious blend of traditional and the functional. The elongated
prong pointing upwards, conveys the Bank's drive to achieve ascending goals. The Star is a
beacon and guide to those in need of direction.
 N.R.I. Banking of BOI
Besides the different deposit schemes for N. R. I.s, this bank in India offers varied other
types of international banking services, some of which are mentioned below:
 F. C. N. R. (Foreign Currency Non-resident) Accounts
 Forex Card
 Integrated Treasury
 N. R. E. (Non-resident External) Accounts
 Star e-Remit
NRI Deposit Schemes:
Non Resident Indians (NRIs) have a choice of two schemes for depositing their savings with
Bank of India, which are: -

 Foreign Currency Non Resident (FCNR) Accounts

 Non-Resident External (NRE) Accounts

Foreign Currency Deposit Schemes:

 Eligible Depositors: All individual Indian Residents will be allowed to open such account.
However, the facility will not be available to corporate/partnership firm/trusts, HUF etc.
registered / based in India.
 Currency of the account: Account will be maintained in GBP, USD and EURO Currencies.
 Nature of Account: Fixed Deposit for a period of 1 month (minimum) 3 months, 6
months and 1 year (maximum).
 Minimum amount of Deposit: Minimum amount of deposit will be as follows: USD -
5000/- GBP - 5000/- Euro – 5000/-.
How Can An Open an NRI Account?
The easiest way of Opening an Account for an NRI would be to contact the nearest branch
of Bank of India who would gladly assist in fulfilling the required formalities and opening an
account. If Bank of India branch is away, then following documents may be sent to the
branch where account is desired to be opened :-
 Account may be introduced by an existing customer of the branch or may be verified by
present banker or by Embassy Officials abroad.
 Copies of important pages of passport (containing name, signature, birth-date, place/ date
of issue, expiry date etc.) duly authenticated by Notary Public/ Officials of Indian Embassy.
 Two passport size photographs with signatures on reverse
 Remittance for opening an account.
Online Services
The different kinds of online services offered by B. O. I. are as follows:
 Bill Payment
 Fund Transfer (Inter-bank)
 Internet Banking
 Mobile Banking
 Share Trading
 Tax Payment
 Ticket Booking
Bank of India USA
Bank of India is a premier and one of the oldest Commercial Banks in India, with presence
all over India as also in the world. The Bank was established in September 1906 and has
been maintaining a position of pride among the top 5 commercial banks in the country.
Today the Bank has over 2594 branches spread all over India and 23 branches/offices
overseas - in 10 countries, spanning all time zones.
The Bank of India USA branches, New York Branch and San Francisco Agency have been
operating in the USA since December 1978 and December 1977 respectively. Bank of India
has been established in 1906 and is headquartered in Mumbai (Bombay), India with global
assets of about USD 22 Billion.

It has a network of over 2524 branches spread over the length and breadth of India.
Besides this, Bank of India has branches in international commercial centres like London,
Tokyo, Singapore, Hong Kong, Paris, etc. and is well-versed in international trade.

Services available at the San Francisco Agency to Send Money in India:

Export/Import Trade Services
 Import/Export Bills for Collection
 Standby & Commercial Letters of Credit
 Trade Finance
Financial Assistance for Business
Commercial Loans
 Lines of Credit
 Participation/Syndication of Loans

Our Vision
"To Become The Bank of choice for Corporate, Medium Business And Upmarket Retail
Customers And Developmental Banking For Small Business, Mass Market And Rural
Markets."

Our Mission
"To provide superior, proactive banking service to niche markets globally, while providing
 cost effective, respective, responsive service to others in our role as a development
bank, and in doing so, meet the requirement of our stakeholders."

Quality Policy
"We, at Bank of India, are committed to become the bank of choice by providing
SUPERIOR, PRO-ACTIVE, STATE-OF-THE-ART Banking services with an attitude of care
and concern for the customers and patrons."

Bank of India was founded on September 07, 1906 by a group of eminent businessmen
from Mumbai. The bank was under private ownership and control till July 1969 when it was
nationalized along with 13 other banks. Beginning with one office in Mumbai, with a paid–up
capital of Rest 50 lakh and 50 employees, the bank has made a rapid growth over the years
and blossomed into a mighty institution with a strong national presence and sizable
international operations. In business volume, the bank occupies a premier position among
the nationalized banks.
.
The bank's association with the capital market goes back to 1921 when it entered into an
agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is
an association that has blossomed into a joint venture with BSE, called the BOI
Shareholding Ltd. to extend depository services to the stock broking community.

International Operations
The bank has presence across 4 continents and 18 countries covering all the major financial
centres such as London, New York, Paris, Tokyo, Singapore and Hong Kong. As on March
31, 2011, bank has a network of 29 branches and offices abroad, including 5 representative
offices.
The bank has also received permission from RBI to expand its overseas operations in
Bangladesh, Canada, China, Egypt, New Zealand, Madagascar, Qatar, South Africa, UK
(Leeds and Coventry), UAE and Vietnam. In New Zealand, the subsidiary Bank of India
(New Zealand) Limited has been registered as a bank by the local regulators RBNZ on March
31, 2011. The bank has a Global Processing Centre (GPC) at Singapore with identical IT
systems at Bank? Foreign branches, thereby improving the Management Information
system and the customer service.

Products & Services

Bank of India provides a wide range of products and services in deposits, loans, NRI
banking, cards, and online services such as Internet banking. Following are the new
products and services introduced:

 Kits introduced for NRI Customers opening NRE/ NRO accounts at foreign centres
 Calculation of interest on Savings Bank account, from April 01, 2010, has been changed
from monthly product basis to daily product basis
 Launched Marathi version of the Bank?óÔé¼Ôäós website
 As per Finance Ministry guidelines and recommendations, the bank? Corporate web–site
(English) has been enabled for persons with Disabilities.
 The bank introduced issuance of instar–pin for Debit–cum–ATM Card. This will address the
customer grievance for non–receipt of Re–pin and also save the effort and expense in
generating and mailing Re–pins.
 As a fraud prevention measure, SMS alerts – Star Sands are generated and provided to all
customers who have registered their mobile number with the bank for all Debit
transactions from delivery channels
 Enabling internet banking customers to make online Fixed Deposit
 Star trade – Online share trading – Integration with Gupta Equities Extended the facility of
online e–Payment to the customers holding Bank? Debit–cum–ATM card. This will enable
the customers to use their Debit–cum–ATM cards for e–payments in addition to credit
card and Internet banking account.
 Mobile Banking facility is introduced as the latest alternate delivery channel which allows
customers to do banking activities virtually from the convenience of the Mobile phone at
any time and from anywhere. This facility is extended to all Retail internet banking
customers.

 The major objectives of development banks in India are as follows:

 Development Banks are those financial institutions that provide funds and financial
assistance to new and upcoming business enterprises. Development bank helps in
According to William Diamond, "development bank is a financial institution to promote
and finance enterprises in private sector."

 Development banks like IDBI, SIDBI, and IFCI etc. were set up to meet long term
and short term capital requirements of the industry. Development banks coordinate
the activities of those institutions, engaged in financing, promoting and developing
industries. They help in accelerating industrial and economic growth.

Objectives of development banks:

1. Rapid Industrial growth:

 Industrial sector is the dynamic sector of the Indian economy. This sector contributes
to the generation of employment and income in the country. Funds are provided by
 the development banks to start a new business venture, expansion and diversification
of the business in new sector etc.

These funds are utilised to achieve several objectives that leads to accelerate
industries and economic growth. Development banking supports the programmes of
industrialisation of the country, by promoting entrepreneurial activities.

2. Encouraging entrepreneurs:

Industrialisation helps in curbing economic and social problems thereby making

economies progress. Emerging entrepreneurs are encouraged to give shape to their
ideas. Development bank helps those entrepreneurs by providing funds for
commencing new business.

Government has recognised the importance of entrepreneurs in the industrial

development and thus providing number of facilities and incentives to motivate them
for undertaking industrial projects.

3. Balanced regional development:

There has been always an issue related to regional disparities. Development bank
helps in curbing these regional disparities by providing funds to the entrepreneurs at
low rate of interest if the organisation is planned in the backward areas. This would
lead to the development of all areas thereby making balanced regional development.

4. Filling gaps:

It is not possible for the commercial banks to fulfil all financial needs of all the
customers. Absence of organised capital market, absence of adequate facilities for
financing industries arise the problem of slow development of industrialisation. Such
development banks can fulfil the credit gap. They provide long- term funds for
industries where gestation period may be longer.

5. Helps government:

Government formulates financial policies with the help of development banks. They
also help in implementing these policies. For example, NABARD bank is set up as an
apex development bank for extending support to the rural areas. It helps the
government in matters relating to the rural development, offers training and research
facilities for banks working in the field of rural development, and acts as a regulator
for co-operative banks and RRB's

SWOT Analysis of Bank of India

About:

Bank of India (BOI) is one of the prominent public sector banks (PSB) in India. The bank is
involved in banking and financial services for individuals and businesses. The bank operates
in India, UK, USA, Singapore, Japan, Hong Kong and France. The bank is headquartered in
Mumbai, Maharashtra, India.

The bank generated a revenue of INR157, 428.9 million during FY 2015 growing at 3.1%
year on year.

Strengths in the SWOT Analysis of Bank of India:

1. Strong Branch Network: Bank of India, being one of the PSBs has one of the
strongest domestic branch networks. The bank added 1918 branches from the year
2008 to 2015 to reach 4,892 branches in the domestic market. Strong branch network
enabled Bank of India to increase its total deposits by 11.5% in FY 2015.
2. Capital position: Bank of India has a string governmental shareholding at about
70% and about 30% non-government shareholding. BOI’s total capital ratio is
10.73% well above the regulatory mandated. Strong Capital position can strengthen
the bank to face any adverse market developments.
3. Increasing Profits: From FY 2011 to FY 2015, Bank of India’s revenues increased at
a CAGR of 11%. Also, BOI’s operating profit increased an incredible 113% in the same
duration. String financial conditions strengthen the business.

Weaknesses in the SWOT Analysis of Bank of India:

1. Decreasing asset quality: As measured by Non-Performing Assets, the asset quality

of BOI has deteriorated during the last few years. The banks NPAs grew from INR
48,110 million in FY 2011 to INR 221932.4 million in FY 2015. As a result, the bank’s
return on average assets has declined even after string revenue growth.
2. The absence of good financial products / services: Bank of India lacks
insurance, brokerage and investment-banking services. The bank totally depends on
its wholesale banking operations, retail banking operations and treasury operations.
This shows that BOI is heavily dependent on the few streams it is present in.

Opportunities in the SWOT Analysis of Bank of India:

1. International Business: BOI’s international business is on the rise over the years
with NRIs finding Indian banks remunerative. In FY 2015, the bank’s business grew at
13.7% in the international market. This situation is likely to sustain and hence
guarantees more growth for BOI.
2. UID/Andhra based customer base: The financial services companies stand to gain
about 125 million new customers with the government’s plans to collate UID and bank
accounts for direct benefits transfers. This creates a positive outlook for the banking
industry.
3. Growth in Indian Banking Industry: In the last 7 years, the total lending and
deposits increased at a CAGR of 20.7% and 19.7&% respectively. Total asset size of
 the banking sector is expected to reach $28,500,000 million by FY 2025. This allows
the bank to introduce new financial services and also to expand its market.
4. Improving products and services: Bank of India can improve its overall product
portfolio thereby providing better and more number of products with very good
services for the products. However, it seems to be mediocre at best where products
and services are concerned.

Threat in the SWOT Analysis of Bank of India:

1. Intense Competition: After the RBI allowed 74% FDI in the banking sector, other
banks have aggressively expanded. Various banks have been issued banking and
payment banks licenses in the last 2 years. This allows new entrants to enter the
market and also an older player to disrupt the market share.
2. Burden of NPAs: The Indian banking sector’s NPAs collectively have grown from
INR539, 170 million in FY 2008 to INR3, 416,410 million in 2015. The gross NPAs as a
ratio of total loans have also increased for all the banks from 2.11% to 5.08% in the
same period.
3. Declining brand equity – Players like Bank of Baroda are moving forward of Bank of
India in pockets because of their strong marketing and service teams. As a result, the
brand equity of Bank of India is declining and people are preferring regional players
more than a centralized bank.

Functional Profile

A. Primary Functions of Banks ↓

The primary functions of a bank are also known as banking functions. They are the main
functions of a bank.
These primary functions of banks are explained below.
1. Accepting Deposits
The bank collects deposits from the public. These deposits can be of different types, such as:-
Saving Deposits
Fixed Deposits
Current Deposits
Recurring Deposits
a. Saving Deposits
This type of deposits encourages saving habit among the public. The rate of interest is low. At
present it is about 4% p.a. Withdrawals of deposits are allowed subject to certain restrictions.
This account is suitable to salary and wage earners. This account can be opened in single
name or in joint names.
b. Fixed Deposits
Lump sum amount is deposited at one time for a specific period. Higher rate of interest is paid,
which varies with the period of deposit. Withdrawals are not allowed before the expiry of the
period. Those who have surplus funds go for fixed deposit.
c. Current Deposits
This type of account is operated by businessmen. Withdrawals are freely allowed. No interest is
paid. In fact, there are service charges. The account holders can get the benefit of overdraft
facility.
d. Recurring Deposits
This type of account is operated by salaried persons and petty traders. A certain sum of money
is periodically deposited into the bank. Withdrawals are permitted only after the expiry of certain
period. A higher rate of interest is paid.
2. Granting of Loans and Advances
The bank advances loans to the business community and other members of the public. The rate
charged is higher than what it pays on deposits. The difference in the interest rates (lending rate
and the deposit rate) is its profit.

The types of bank loans and advances are:-

a) Overdraft
b) Cash Credits
c) Loans
d) Discounting of bill of exchange
a. Overdraft
This type of advances are given to current account holders. No separate account is maintained.
All entries are made in the current account. A certain amount is sanctioned as overdraft which
can be withdrawn within a certain period of time say three months or so. Interest is charged on
actual amount withdrawn. An overdraft facility is granted against a collateral security. It is
sanctioned to businessman and firms.

b. Cash Credits

The client is allowed cash credit up to a specific limit fixed in advance. It can be given to current
account holders as well as to others who do not have an account with bank. Separate cash
credit account is maintained. Interest is charged on the amount withdrawn in excess of limit. The
cash credit is given against the security of tangible assets and / or guarantees. The advance is
given for a longer period and a larger amount of loan is sanctioned than that of overdraft.

c. Loans

It is normally for short term say a period of one year or medium term say a period of five years.
Now-a-days, banks do lend money for long term. Repayment of money can be in the form of
instalments spread over a period of time or in a lump sum amount. Interest is charged on the
actual amount sanctioned, whether withdrawn or not. The rate of interest may be slightly lower
than what is charged on overdrafts and cash credits. Loans are normally secured against
tangible assets of the company.

d. Discounting of bill of exchange

The bank can advance money by discounting or by purchasing bills of exchange both domestic
and foreign bills. The bank pays the bill amount to the drawer or the beneficiary of the bill by
deducting usual discount charges. On maturity, the bill is presented to the drawer or acceptor of
the bill and the amount is collected.

B. Secondary Functions of Banks ↓

The bank performs a number of secondary functions, also called as non-banking functions.
These important secondary functions of banks are explained below.
1. Agency Functions
The bank acts as an agent of its customers. The bank performs a number of agency functions
which includes:-
Transfer of Funds
Collection of Cheques
Periodic Payments
Portfolio Management
Periodic Collections
Other Agency Functions
a. Transfer of Funds
The bank transfer funds from one branch to another or from one place to another.
b. Collection of Cheques
The bank collects the money of the cheques through clearing section of its customers. The bank
also collects money of the bills of exchange.
c. Periodic Payments
On standing instructions of the client, the bank makes periodic payments in respect of electricity
bills, rent, etc.
d. Portfolio Management
The banks also undertakes to purchase and sell the shares and debentures on behalf of the
clients and accordingly debits or credits the account. This facility is called portfolio management.
e. Periodic Collections
The bank collects salary, pension, dividend and such other periodic collections on behalf of the
client.
f. Other Agency Functions
They act as trustees, executors, advisers and administrators on behalf of its clients. They act as
representatives of clients to deal with other banks and institutions.

2. General Utility Functions

The bank also performs general utility functions, such as:-
Issue of Drafts, Letter of Credits, etc.
Locker Facility
Underwriting of Shares
Dealing in Foreign Exchange
Project Reports
Social Welfare Programmes
Other Utility Functions
a. Issue of Drafts and Letter of Credits
Banks issue drafts for transferring money from one place to another. It also issues letter of
credit, especially in case of, import trade. It also issues travellers' cheques.
b. Locker Facility
The bank provides a locker facility for the safe custody of valuable documents, gold ornaments
and other valuables.
c. Underwriting of Shares
The bank underwrites shares and debentures through its merchant banking division.
d. Dealing in Foreign Exchange
The commercial banks are allowed by RBI to deal in foreign exchange.
e. Project Reports
The bank may also undertake to prepare project reports on behalf of its clients.
f. Social Welfare Programmes
It undertakes social welfare programmes, such as adult literacy programmes, public welfare
campaigns, etc.
g. Other Utility Functions
It acts as a referee to financial standing of customers. It collects creditworthiness information
about clients of its customers. It provides market information to its customers, etc. It provides
travellers' cheque facility.

CHAPTER-4
Conceptual Profile of the Project
Concept of Training & Development:
“Training & Development is any attempt to improve current or future employee performance
by increasing an employee’s ability to perform through learning, usually by changing the
employee’s attitude or increasing his or her skills and knowledge.”

MEANING OF TRAINING & DEVELOPMENT: –

The need for Training and Development is determined by the employee’s performance
deficiency, computed as follows.
Training & Development Need = Standard Performance – Actual Performance
We can make a distinction among Training, Development and Education.

Distinction between Training and Education

Training Education

Application oriented Job Theoretical Orientation

experience Classroom learning
Specific Task in mind Covers general concepts
Narrow Perspective Has Broad Perspective
Training is Job Specific Education is no bar

Training: Training refers to the process of imparting specific skills. An employee

undergoing training is presumed to have had some formal education. No training program is
complete without an element of education. Hence we can say that Training is offered to
operatives.
Education: It is a theoretical learning in classrooms. The purpose of education is to teach
theoretical concepts and develop a sense of reasoning and judgment. That any training and
development program must contain an element of education is well understood by HR
Specialists. Any such program has university professors as resource persons to enlighten
participants about theoretical knowledge of the topics proposed to discuss. In fact
organizations depute or encourage employees to do courses on part time basis. CEOs are
known to attend refresher courses conducted by business schools. The education is more
important for managers and executives rather than low cadre workers. Anyways education
is common to all employees, their grades notwithstanding.
Development: Development means those learning opportunities designed to help
employees to grow. Development is not primarily skills oriented. Instead it provides the
general knowledge and attitudes, which will be helpful to employers in higher positions.
Efforts towards development often depend on personal drive and ambition. Development
activities such as those supplied by management development programs are generally
voluntary in nature. Development provides knowledge about business environment,
management principles and techniques, human relations, specific industry analysis and the
like is useful for better management of a company.
 Objectives of (MDP) Management Development Programs OR Advantages of
Development

1. Making them
 Self-starters
 Committed
 Motivated
 Result oriented
 Sensitive to environment
 Understand use of power
1. Creating self-awareness
2. Develop inspiring leadership styles
3. Instill zest for excellence
4. Teach them about effective communication
5. To subordinate their functional loyalties to the interests of the organization

Difference between Training and Development

Training Development

Training is skills focused Development is creating

learning abilities
Training is presumed to Development is not
have a formal education education dependent
Training needs depend Development depends on
upon lack or deficiency in personal drive and
skills ambition
Trainings are generally Development is voluntary
need based
Training is a narrower Development is a broader
concept focused on job concept focused on
related skills personality development
Training may not include Development includes
development training wherever
necessary
Training is aimed at Development aims at
improving job related overall personal
efficiency and performance effectiveness including job
efficiencies
What are the Training Inputs?
 Skills
 Education
 Development
 Ethics
 Problem Solving Skills
 Decision Making
 Attitudinal Changes
 Importance of Training & Development
 Helps remove performance deficiencies in employees
 Greater stability, flexibility and capacity for growth in an organization
 Accidents, scraps and damages to machinery can be avoided
 Serves as effective source of recruitment
 It is an investment in HR with a promise of better returns in future
 Reduces dissatisfaction, absenteeism, complaints and turnover of employees

Need of Training Individual level

 Diagnosis of present problems and future challenges
 Improve individual performance or fix up performance deficiency
 Improve skills or knowledge or any other problem
 To anticipate future skill-needs and prepare employee to handle more challenging tasks
 To prepare for possible job transfers
Group level
 To face any change in organization strategy at group levels
 When new products and services are launched
 To avoid scraps and accident rates

Identification of Training Needs (Methods)

Individual Training Needs Identification
1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales

Group Level Training Needs Identification

1. Organizational Goals and Objectives
2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey

Benefits of Training Needs Identification

1. Trainers can be informed about the broader needs in advance
2. Trainers Perception Gaps can be reduced between employees and their supervisors Trainers
can design course inputs closer to the specific needs of the participants
3. Diagnosis of causes of performance deficiencies can be done

Methods of Training
 On the Job Trainings: These methods are generally applied on the workplace while
employees is actually working. Following are the on-the-job methods.

Advantages of On-the-Job Training:

It is directly in the context of job
It is often informal
It is most effective because it is learning by experience
It is least expensive
Trainees are highly motivated
It is free from artificial classroom situations

Disadvantages of On-the-Job Training:

Trainer may not be experienced enough to train
It is not systematically organized
Poorly conducted programs may create safety hazards

On the Job Training Methods

1. Job Rotation: In this method, usually employees are put on different jobs turn by turn
where they learn all sorts of jobs of various departments. The objective is to give a
comprehensive awareness about the jobs of different departments. Advantage – employee
gets to know how his own and other departments also function. Interdepartmental
coordination can be improved, instills team spirit. Disadvantage – It may become too much
for an employee to learn.
2. Job Coaching: An experienced employee can give a verbal presentation to explain the
nitty-gritty’s of the job.
3. Job Instruction: It may consist an instruction or directions to perform a particular task or
a function. It may be in the form of orders or steps to perform a task.
4. Apprenticeships: Generally fresh graduates are put under the experienced employee to
learn the functions of job.
5. Internships and Assistantships: An intern or an assistants are recruited to perform a
specific time-bound jobs or projects during their education. It may consist a part of their
educational courses.
6. Off the Job Trainings: These are used away from work places while employees are not
working like classroom trainings, seminars etc. Following are the off-the-job methods;
Advantages of Off-the-Job Training:
Trainers are usually experienced enough to train
It is systematically organized
Efficiently created programs may add lot of value

Disadvantages of Off-the-Job Training:

It is not directly in the context of job
 It is often formal
It is not based on experience
It is least expensive
Trainees may not be highly motivated
It is more artificial in nature

Off the Job Training Methods

1. Classroom Lectures: It is a verbal lecture presentation by an instructor to a large
audience. Advantage – It can be used for large groups. Cost per trainee is low.
Disadvantages – Low popularity. It is not learning by practice. It is One-way
communication. No authentic feedback mechanism. Likely to boredom.
2. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc.
Advantages – Wide range of realistic examples, quality control possible, Disadvantages –
One-way communication, No feedback mechanism. No flexibility for different audience.
3. Simulation: creating a real life situation for decision-making and understanding the actual
job conditions give it. Following are some of the simulation methods of trainings
4. Case Studies: It is a written description of an actual situation and trainer is supposed to
analyze and give his conclusions in writing. The cases are generally based on actual
organizational situations. It is an ideal method to promote decision-making abilities within
the constraints of limited data.
5. Role Plays: Here trainees assume the part of the specific personalities in a case study and
enact it in front of the audience. It is more emotional orientation and improves interpersonal
relationships. Attitudinal change is another result. These are generally used in MDP.
6. Sensitivity Trainings: This is more from the point of view of behavioral assessment, under
different circumstances how an individual will behave himself and towards others. There is
no preplanned agenda and it is instant. Advantages – increased ability to empathize,
listening skills, openness, tolerance, and conflict resolution skills. Disadvantage –
Participants may resort to their old habits after the training.
7. Programmed Instructions: Provided in the form of blocks either in book or a teaching
machine using questions and Feedbacks without the intervention of trainer. Advantages –
Self paced, trainees can progress at their own speed, strong motivation for repeat learning,
and material is structured and self-contained. Disadvantages – Scope for learning is less;
cost of books, manuals or machinery is expensive.
8. Computer Aided Instructions: It is extension of PI method, by using computers.
Advantages – Provides accountabilities, modifiable to technological innovations, flexible to
time. Disadvantages – High cost
Barriers to Effective Training:
1. Lack of Management commitment
2. Inadequate Training budget
3. Education degrees lack skills
4. Large scale poaching of trained staff
5. Non-coordination from workers due to downsizing trends
6. Employers and B Schools operating distantly
7. Unions influence
 How To Make Training Effective?
1. Management Commitment
2. Training & Business Strategies Integration
3. Comprehensive and Systematic Approach
4. Continuous and Ongoing approach
5. Promoting Learning as Fundamental Value
6. Creations of effective training evaluation system

Importance of training and development

It is an accepted fact that besides money, materials and machines, the success of any
organization depends upon the quality of its human resource. In the wake of increased
competition, opening of the Indian economy, development of global village concept, people
have become pivot around which successful organizations rotate. In the light of these, the
training and development function in organizations gained momentum and recognized as a tool
to help people to grow within the organization and retain them. To be productive and profit
making, organizations need efficient and effective workforce. To manage and maintain this
workforce, organizations require skilled and knowledgeable executives. Skilled and competent
executives can direct the efforts in right direction and reach the organization objectives. The
impact of innovations, technological advances, market driven economy, and consumerism has
forced many organizations to opt for modernization, diversification and organization
restructuring. The liberalization of economy has changed the environment for our managers and
workforce. The protective layer has gone, and the world is now in the age of competition not
only from within but also from the technologically advanced and capital rich organizations of the
developed countries. The organizations opting for this change have to prepare its team to
accept the challenges posed by the change process. They have to be prepared, developed and
updated, accordingly. Their effectiveness would largely be determined by success of the
organizations on the following counts; the redefining of the objectives and the mission of their
organization, appraisal of the existing activities, phasing out those with low or negative returns,
or rendered irrelevant, unless required for strategic reasons; increasing productivity of all the
resources developed in the organization, shifting to new markets, new products from selling to
marketing, all with customer satisfaction.

Scope of training and development

Training has existed from the inception of human being in different forms in the society. It is a
medium to pass different skills from one generation to another. But with change in time, the
magnitude of training has undergone sea change. Growth and development in technology has
developed variety of methods and techniques in the way of training. These changes have added
new dimensions to training and influenced the requirement of training. Training of human
resource is carried out at macro and micro level. At macro level training is necessary for
generating awareness among people on social issues, educating people and spreading literacy
in society for giving people an opportunity to live a better life. Training activities at micro level
are oriented towards development of people working in the organization to perform better in
their job and develop their competency on the job for growth of the organization. Thus everyone
takes training in some or other form for survival and sustenance on this planet. Scope of training
has also shifted from technical skill based to knowledge and interpersonal skill covering a wide
zone ranging from manufacturing industries to service sector at micro level. The emphasis and
awareness on quality of products manufactured and service provided has increased the need
for training of all those involved in this process. Growing quality consciousness among
customers and competition in market is forcing organizations to have quality employees to give
quality products and services. Inability to provide training and development opportunities can
have grave consequences for society, organization and the individual. Poor training and lack of
facilities for self-development can be a great impediment to growth of the society and shall lead
to greater disparity among haves and have not's. In an organization poor or no training shall
mean its slow death due to obsolete people. Also for any individual it shall mean stagnancy in
career-life and demoralization

Need of training and development

The objective behind transfer of knowledge is broadening and influenced by social, political,
economic and technological trends in the environment. It develops a more realistic
understanding of the causes and effects. Managers' work involves getting the job done by
diagnosing problems, acquiring and interpreting data, and testing alternative solutions. To deal
with employees in organization, managers should have good social interaction skills, to help him
in coordinating activities. Giles (1977) recommended that a manager's training needs may be
divided into three categories, Intellectual knowledge, Problem solving, and Skills of social
interaction also referred as changing attitudes. Singh (1989) attributes rapid technological
development as the reason behind the necessity for managers to update their knowledge and
skills. Managers are often made to handle areas of responsibility that are radically different from
their academic specialization. There has been a basic change in the style of management in
recent years. Managers have become more and more behaviourally oriented. They have to be
sensitive, to the needs and aspirations of their subordinates and colleagues. The main reason is
that managers are critical for success of the company and play crucial role in giving direction to
the activities implemented in the organization. profits by continually improving sales and service
with today's customers and products.

Objectives of training and development

Many experts have suggested different objectives for training of managers. But all of them
agree on the following points. The common objectives of are:
i. To improve the job performance of managers currently in post.
ii. To provide adequate 'cover' in the event of unexpected short-term changes such as deaths,
transfers, resignations or any other unanticipated developments.
iii. To raise the general level of management thinking and understanding in all branches and at
all levels in the organization.
iv. To provide supply of managerial talent which will fulfil the anticipated needs of the future
development of the organization in terms of environmental change and growth.
v. To extend the frontiers of knowledge in the understanding of the management function.
vi. To give the specialists an overall view of the functions of an organization and equip them to
coordinate each other's efforts effectively.
vii. To increase the morale of the members of the management group.
viii. To improve thought process and analytical ability.
ix. To broaden the outlook of the executive regarding his role/position and responsibilities.
x. To understand the conceptual issues relating to economic, social and technical areas.
xi. To understand the problems of human relations and improve human relations skills.
xii. To stimulate creative thinking (Rao, 1992).
Setting clear objectives of training is necessary to give a right direction to designing of training
programs, selection of methods and materials for training and for evaluation of training
effectiveness.

Role of learning in training and development

Learning has been described as a relatively permanent change in behaviour that occurs as a
result of insight, practice or experience. Learning has been defined by Kim, (1993) as the
process of increasing one's capacity to take action. Learning takes place more readily in some
circumstances than in other and hence can be influenced. Reynolds, Caley and Mason (2002)
distinguished it from training as learning is the process by which a person acquires new
knowledge, skills and capabilities whereas training is one of several responses and organization
can take to promote learning. Pedler, Boydell and Burgoyne (1989) opine that learning is
concerned with increase in knowledge or a higher degree of an existing skill, but development is
more towards a different state of being or functioning. An operational definition of learning refers
it to change in a subjects behaviour or behaviour potential in a given situation brought about by
the subjects repeated experiences in that situation, provided that the behaviour change cannot
be explained on the basis of the subjects natural response tendencies, maturation or temporary
states. It emphasizes the relative permanency of learning. Learning of knowledge and skills
imparted during training and management development can be increased through various task.
Aspects of learning

Learning has been described as a relatively permanent change in behaviour that occurs as a
result of insight, practice or experience. Learning may be simply an addition (new information): it
may be a subtraction (unlearning a bad habit): or it may be a modification (adjusting new
knowledge to old). Learning as change may be for the better or for the worse: we learn bad
habits as well as good ones. Learning may be conscious or unconscious: we take courses in the
English language but we unconsciously acquire styles of speech and gesture from family and
friends (ILO, 1972). Learning is such a complicated process that no one can really claim to
know how it occurs. Learning takes place more readily in some circumstances than in others,
and that it can go to a great extent. To facilitate learning, a trainer needs to understand the
various factors which bear upon the learning process.

Motivation for learning

Perhaps the most important factor in learning is motivation to learn. Experimental evidence
indicates that little learning takes place in the absence of motivation. What motivates one
person to learn may, of course, be quite different from what motivates another. For some
people, it is the interest or challenge of the task (intrinsic motivation): for others, it is the
anticipated reward or punishment (extrinsic motivation, e.g., money, certification): for still others,
it is the need for recognition or status. Up to a point, the stronger the motivation, the more
learning takes place, but beyond a critical level, the learner becomes too anxious and tense to
learn effectively (some of the energy that has been aroused is spilling over in tension, which
disturbs learning)

The views of Ulrich &Brockbank on training and development

In high-performing firms, individual training and overall organization development activities are
integrated into a cooperative whole. Conceptually and practically, they are linked as a single
comprehensive agenda. Elsewhere, they often turn into a tug-of-war between psychologists who
emphasize individual training (classroom and on the job) and organizational development (OD)
specialists who focus on team or organizational interventions and tend to ignore individuals.
One-up-man ship between the two groups—each trying to outdo the other in importance,
impact, and image—can become as dysfunctional as to undercut performance.

Strategy of training and development

For successful outcomes of training and management development program, it is necessary to

have clear goals, a possible strategy for attaining them, and precise specifications for each part
of the training task including the resources of time, skill and facilities. Lynton and Pareek (2004)
suggested four key issues for training strategy. They are: the need for a action perspective in
establishing a training strategy; setting goals; planning the specifications; and programming the
resources and their sequences for these requirements. Action perspective in training is a
systematic attempt to develop the human resources - individual, group and organizational
competencies required to manage some present tasks and situations as well as those in the
future. It is followed by setting of goals or objectives.

International HRD (Training & Development)

The notion of international human resource development is a relatively new development within
the maturing field of HRD (Woodall et al., 2002; Evarts, 1998). In cost-competitive markets, the
standardisation of HRD practices across overseas operations has the potential for producing
significant financial and human capital savings, improving productivity -and streamlining
operational procedures (Lunnan et al., 2002). In addition, the increasing use and application of
e-learning and computer-based training has resulted in the delivery of HRD solutions that are
timely, current and immediately accessible worldwide (Russell et al., 2003; Lytras et al., 2002).
However, in spite of technological advances fuelling standardisation of HRD offerings and
increasing structural configurations across global organisations, individual behaviour within
these organisations continues to manifest nationally culturally-based dissimilarities (Adler et al.,
1986). Furthermore, an outcome of globalisation has been the identification of 'uneven' patterns
of economic and social development, making more visible the disparities that exist in education
and skill levels (Metcalfe and Rees, 2005). Consequently, HRD has a dual role to play; firstly in
developing economic and social well-being and secondly as a means of leveraging calve from
human capital (Woodall, 2005). The lack of emphasis on international HRD stems directly from
the origins and early development of the field. Both Jankowicz (1999) and Weinberger (1998)
argue that academic research in HAD is primarily western and uni-cultural in orientation and
strongly influenced by the perspectives of US scholars. Indeed, several calls have been made in
the literature for academics to move beyond foundational issues, such as defining the
boundaries and scope of HRD towards demonstrating the true value of HRD to the
organisation's bottom line and its applicability in different cultural contexts (McGuire 2006;
Ruona et al., 2003). Metcalfe and Rees (2005) argue that current international HRD scholarship
that is genuinely international in design and focus remains sparse and fragmented. For their
part, Littrell et al. (2006) identify the lack of a unifying theoretical framework as a key factor
inhibiting cross-cultural and international HRD endeavours. They advocate the need for greater
empirical research to establish the efficacy of current theoretical frameworks.

Human capital approach

In economic terms, human resource development in the early years (1950s and 1960s) was
equated with human capital formation. Even this was recognised only after the economists in
early years pointed out the importance of human capital. Human capital consists of various
activities. Schultz (1961) analysed five areas relating to health, on-the-job training, formal
education, adult literacy programmes and migration. One may add nutritional status to this.
These are all investments in human resources which have been not given due importance by
traditional economists. Rather, investment in non-human resources was given greater emphasis
due to ostensible direct, proportionate and immediate returns accrued out of such investment.
He opines that an economy’s aggregate stock of entrepreneurial ability can also be increased
by the immigration of people with particular entrepreneurial experiences and skills. Further
comparing the advantages gained by developed economies, who invested in human capital
formation over the developing and under developed countries who did not do much headway in
this regard, Schultz (1961) argued in favour of investing in education, health, nutrition,
employments and such other primary sectors.

Social psychological approach

McClelland(1961) in his book the “The achieving Society” has propagated this approach. The
high achievement motivation among the developed economies was associated with the way the
young generation are groomed socially and psychologically. To do consistently better than
before is a motivation their characterizes the high achiever’s language and culture. Socialization
process, inclusive of degree of challenge offered by the environment, child-reaming practices,
language used and interaction pattern of parents in families, interactive factors associated with
religion, social classes and social values influence achievement motivation contributing to
economic entrepreneurship and concomitant development. While giving importance to
government intervention in the issues of education, health and employment aspects; McClelland
highlighted the significance and long standing role played by values, motives and attitudes

The poverty alleviation approach

This approach came to focus with the World Development Report of 1980. This highlights the
absolute poverty of underdeveloped nations, and the relative poverty every where as a great
problem to be addressed by HRD. Improving primary health, primary education, quality of life
along with livelihood programs are considered crucial for poverty alleviation. This approach
focus on the marginalized groups in different societies and their up liftmen through a self help
and empowering process in strategically planed with segmented goals to be achieved over a
period of time
The world human development approach
As a sequel to globalization, this approach attempts to focus on grass root level policies for the
down trodden poor who are suffering from low quality of life; and are deprived of basic life
subsisting needs like food, clothing and shelter and suffer from endemic low life expectancy
rates, malnutrition and unemployment. UNDP has been harping at this since 1990 as policy
goals.
Current context and approaches to HRD
The current approaches to human resource development incorporate many of the key
dimensions of the earlier approaches and some aim to fuse the economics-dominated and
social welfare-dominated concepts. The belief is that there is a need to reconcile and link
approaches which emphasise the role of human resources as inputs into the development
process and their contribution to economic growth and development, with those which see
people as consumers and the beneficiaries of social development.
Process of training and development
Training and management development activity has to be properly planned and the first priority
for anyone designing training programs is to figure out how the proposed training enhances an
organizations ability to deliver quality and thereby stay in business. According to Richard D.
Miller (1969) assessment of training needs, objectives setting, design implementation and
evaluation are various phases in the process of training. For every training strategy, main focus
is on people and the difference training brings in terms of more effective behaviour and
performance.
The need of analysis (determination) and assessment in training
A training need may be described as existing any time an actual condition differs from a desired
condition in the human, or “people,” aspect of organization performance or, more specifically,
when a change in present human knowledge’s, skills, or attitudes can bring about the desired
performance (James H. Morrison, ASTD Hand book, 1976).
There are three ways to get at training needs:
1. Assuming a performance problem has been identified with a particular group, survey that
group for whom training may be needed, their supervisors, the receivers of the product or
services provided by that group, and their subordinates, if any. Here the focus is on the group
responses which, when analyzed properly, can lead to the preparation of training for individuals,
usually in groups.
2. Conduct organizational audits that review production financial, personnel, and other
operational data from records and reports to uncover problem areas susceptible to correction
through training and/or development. A full functional audit of an area may need to be
conducted to get a thorough analysis of the situation. Here the focus is on “results” of activities,
and work backward to the causes to identify training needs.
3. Assess an individual’s achievement levels, knowledge’s, potentials, behaviours, skills, and
performance; prepare a needs analysis; and plan development and training specifically for that
individual. Similar techniques may be used with groups of individuals, but the focus is on the
individual, and the outcome should include individual development plans. The approaches
techniques are:
Survey techniques
Survey techniques range from one-page “yes” or “no” response sheets to highly sophisticated
methods requiring a multidisciplinary approach-from the “felt-needs” response of the participants
to the carefully constructed questionnaires which scientifically cross-check the responses two or
more timers.
Problem survey
The problem inventory is usually administered to a group of people for whom training is to be
provided. It is therefore a “problem-cantered” approach that leads to practical, specifically
targeted program planning. A training needs assessment is the diagnostic X-ray film for the
training analyst. Figure 1.3 presents a model of the components of the needs assessment
process (Goldstein, 2007). Need analysis refers to an investigation into whether training or
some other organizational intervention can solve a performance problem or enable a desirable
new performance in the workplace. Need assessment is the process of determining what
knowledge, skill and attitudes (K.S.As) employees need to perform their jobs. Rummler (1990)
describes four training assessment approaches. These are Performance Analysis; Organization
and Workgroup Analysis; Task Analysis; Process and Individual Analysis; Competency study;
and Training needs survey. Allison Rosette (1987) defines needs assessment as consisting of
two kinds of activities: Gap analysis: Identifying gaps between what is happening and what
should be happening. Cause analysis: Identifying causes for the gaps. For this she also
suggests three phases of need assessment.

Performance analysis

It involves studying and analyzing job performance. Scientific approach in this direction has led
to development of human performance technology (H. P. T.). It has evolved over the past
decade as a powerful new system for addressing performance issues in the workplace. HPT
was coined in 1990's by International Society for Performance Improvement (ISPI), defined it as
a set of methods and process for solving problems or realizing opportunities related to the
performance of people. It may be applied to individuals, small groups or large organizations
(Stolovitch and Keeps, 1992). Another influential definition appears in the American Society for
Training and Development's Model for human performance improvement. Human performance
improvement is a systematic process of discovering and analyzing important human
performance gaps, planning for future improvements in human performance, designing and
developing cost effective and ethically justifiable interventions to close performance gaps
implementing the interventions and evaluating results (Rothwell W., 1996).

According to Rosenberg and Deterline (1992), model of HPT occurs in five major stages, these
are Performance Analysis, Cause Analysis, Intervention selection, Change management, and
Evaluation. Performance analysis centres on analyzing an organization performance
requirements and capabilities in order to identify gaps between actual performance and desired
performance. The tools of performance analysis include assessment of customer needs and
requirements of organization mission and strategy, organizational capabilities and key
competencies and measures of current organizational performance. The data obtained through
these tools forms the basis for defining an organizations current performance capacity and
identifying gaps between current performance and desired performance in the future. Causal
analysis is the process of examining all the possible underlying causes for a performance gap in
order to choosing a comprehensive intervention that will address all the causes.

Job analysis
Job analysis is the process of determining how work should be organized and performed. It
includes activities such as determining the optimal organizational structure, management
reporting relationships, division of labour, job roles and responsibilities, job descriptions,
required knowledge, skills and attitudes, compensation and rewards. Job analysis may be
conducted at many levels and with many purposes in mind. Swanson (1994) has identified three
basic types of job performance analysis: Present performance problems, Performance
improvement opportunities, and Future performance requirements. Many job analysis models
are suggested by Campbell (1988); Hammer and Chanipy (1993); Dunnette and Hough (1991);
Nadler, Gernstein, and Sahw (1992). Competencies are the underlying capabilities required for
performing jobs to establish competencies for jobs. Analyses rely on direct observation of work
and interviews with incumbents. Competency studies have become particularly popular to
document managerial and professional jobs (Dubois, D.,1993). For a corporate executive, the
competencies required to perform the job include strategic vision, customer focus, decisiveness,
communication abilities, perseverance, emotional intelligence, analytical abilities, and credibility.

Task analysis

Task analysis is the process of breaking a given job down into its component tasks, discovering
the relationships among the tasks, and the prerequisite knowledge and skills required to perform
the tasks. Task analysis is typically used by training designers to determine the knowledge
Skills and attitudes that must be learned in order to perform the job under investigation typically
uses task analysis. Training on job specific skills is always based on a task analysis of the job.
Therefore, it is one of the core skills of training design. It also serves as a map of the job and the
skills needed to perform it. Task analysis varies in scope from job to job, despite this variation, a
standard approach to task analysis is followed.

Learner analysis

Learner analysis is the investigation of the current and future audience for training. It is
conducted to understand the prerequisite knowledge; skill and experience of the training
audience to better target the intended training. It also includes examining the culture, learning
styles, background, values and beliefs of the learners so as to match the training design and
methodology to the learners. Knowles, Holton and Swanson (1998), identified the following
general characteristics of adult learners. They are self directing, motivated by self interest, life
cantered and pragmatic, rely on change as the primary driver to learn and rely on experience to
learn. Knowles, et. al., believed that training designers could capitalize on these traits to create
more effective training programs. Methodologies used for learner analysis are interview and
survey research.

Context analysis

Context analysis examines the environment in which the trainee learns. It includes training
environment on the job. It also helps to identify barriers that prevent learning and ways to
mitigate these problems.

Skill-gap analysis

Skill-gap analysis is a specialized form of need assessment that examines and documents the
gap between employees' current skill and the skills needed to perform the job successfully. It is
especially used when the basic skills of employees appear inadequate for the job they hold.
Significant gap between the current performance of employees and the desired or required
performance helps the training designers to demonstrate a need for training depending on the
skill areas the gaps point at. These skill gaps also help in formulation of objectives and content
of training. There are a number of techniques to document the existing skills of the workforce.
Among the most common tests, performance appraisals and documents, quality assurance
data, customer feedback data and self-perceptions are important.

Design of training

Once the need of training has been analyzed, designing phase starts with carefully crafting of
training objectives. These form the goals of the training design and shape its content.

Training objective

Objectives are statements of the specific outcome to be achieved by training. Training objective
has been defined by Taylor (1967) as a change in the behaviour of the learner. Need
assessment helps to identify or select what tasks, procedures, concepts and principle need to
be learned. These would then become the training objectives guiding the development of a
program. Training objectives denote two aspects of training quantity and quality. Quantitative
objective is concerned with the number of persons to be trained during a particular period of
time. Qualitative objective is associated with the standard of competence to which the learner
will be trained. In most training programs, objectives do not exist in isolation. To help
instructional designers to sort out objective of a complex training program a hierarchy of
objectives is constructed according to Manager (1975). The hierarchy consists of the following
elements: Prerequisite objectives, Enabling objectives, Terminal objectives, Application
objectives and Results objectives.

Training deliverables

Training deliverable may be defined as any end product of an instructional design process.
These training deliverables such as course, workshop or seminar may further be sub-divided
into workbooks, manuals, lesson plans overheads, audio-visuals, tests and teaching aids.
Before selecting the options available for training deliverables, the training needs are classified
into: Communication skills, Business skills, Analytical skills and Technical skills. Sah (1991)
suggested that the design of training session can be divided into following components:
Deciding learning topic and sequencing its contents, Selecting suitable training techniques and
equipments, Allocating time for learning session, preparing training materials and preparing the
final session guide.

Training techniques/methods

There are different training methods to direct the growth of learners in terms of knowledge, skills
and attitude enabling them to perform their jobs efficiently and effectively. During a training
program variety of training techniques are used in combination. Choice of training techniques
depends on the following: Learning objectives, Size of the target population, Learning styles and
interest of learner, Course contents and duration of training program, and Training interest and
capacity. The training techniques available for management development can be categorized
mainly into two types: On-the job techniques and Off-the job techniques. On the job techniques
are learning or training on the location or workplace. Transfer of learning is very fast in such
techniques. They consist of: Coaching, Job Rotation, Understudy and Multiple Management. Off
the job techniques are learning given in a place away from workplace of the person. Due to
limitations attached on the job techniques and off the job techniques are used satisfying the
requirements of different training objective. These consist of Case Method, Incident Method,
Role playing, In Basket Method, Business Game, Sensitivity Training, Simulation, Grid training,
Conferences and Lectures.

CHAPTER-5
Research Design & Methodology

RESEARCH METHODOLOGY
The research methodology is the specification of method of acquiring the information
needed to structure or solve the problem. It is not considered to be the decision of facts but
also building up the data knowledge and to discover the new facts involved through the
process in the dynamic change in the society. This chapter describes the research
methodology adopted to achieve the objectives of the study. The research is aimed to
study the scope of management education in India, its ranking process, the opinion of
faculty, HR Executives and students. This chapter explains the scope, research design, data
collection, sampling technique; methods followed in carrying out the research, the
techniques used and the limitations of the study.

Scope of the Study

The scope of the study is to get the first-hand knowledge about the management education
system in India. All B-Schools of India form the scope of study.

Research Design

The research design is the structure with in which research is conducted. A research design
is the arrangement of conditions for the collections and analysis of the data in a manner
that aims to combine to the research purpose. It constitutes the collection, measurement
and analysis of data. Research design gives an outline of everything from defining the
problems in terms of objectives to final analysis of data. We have adopted single cross-
sectional descriptive design as our population is the people of India and only one sample is
drawn from the population. Present study enquires and brings forward the results of the
specified objectives, which relates to the comparison of opinions expressed from viewpoint
of students, faculty and HR Executives. As a result it clearly states that it is a descriptive
study which includes surveys and fact-finding enquiries of different kinds.

Data Collection

The present study incorporates the collection of both primary and secondary data for an in
depth investigation.

Primary data has been gathered through structured unbiased questionnaire. The
questionnaire was pre- tested on 20 respondents and minor modifications were made to the
questionnaire on the basis of pre- testing. Secondary data was gathered through, the
information received from the magazines like outlook, Business world, Business Today,
journals and online sources.

Sample Design

Universe

It refers to all the eligible respondents of a particular research around the world.

For Objective 2: Various B- Schools in India forms the universe for the second
objective

For Objective 3: The universe for my research is students and faculty of B-schools and
executives in India.

Population

The population for the study consists of all the faculty and students who are teaching and
studying management education in India.

Sample Unit

Single most unit of the population it is the single person from whom questionnaires will be
filled up to fulfil the target. The sampling unit in this study is any student or faculty or HR
Executive who is studying or teaching management education in India respectively.

Sampling Frame

For the study, 2 IIM’s, 7 Private B-Schools and 7 University Departments have been taken
into consideration. The institutes were selected on the basis of survey done by Outlook and
Business World in year 2007. On the basis of the ranking in that year, the institutes were
selected. The questionnaire was mailed to a total of 180 faculty members, 50 HR Executives
and 360 students of these B-Schools.

Sample Size

• Out of the questionnaires mailed to 180 faculty members of selected B-schools, 120
responded back, therefore the sample size for the faculty stands at 120.

• Out of the questionnaires mailed to 50 HR Executive of selected B- schools, 22 responded

back, therefore the sample size for the faculty stands at 22.

• Out of the questionnaires mailed to 360 students, 220 students responded back. (12 from
IIMs,116 from Private Colleges , 92 from University Departments)

Sampling Technique

Non-Probability Sampling :( Convenience Sampling)

• The sampling technique for the survey is Snowball Sampling Technique (reference based
method) and convenience-sampling method. This method is selected by considering time
factor for the survey and population.

Analysis of Data

In the study, an attempt was made to understand the factors that determine the choice of a
particular B-School based on various selected parameters. Data analysis is an attempt to
organize and summarize the data in order to increase results’ usefulness. For the analysis of
primary data, the statistical tools, which are used, are percentage method, mean scores and
ANOVA. Also pie charts and bar diagrams are used.
While studying the comparative analysis of ranking of different B- schools in India, Business
World and Outlook Magazine were taken into consideration. These magazines give different
weight ages to various parameters. For the comparison, the Outlook survey has been taken
for years 2008, 2009 & 2010.In the below tables parameters taken by outlook for rating
Business schools has been mentioned with the weight ages assigned to them.61Also, the
Business World survey has been taken for years 2008, 2009 & 2010.

Limitation of Research
Some of the respondents can hide the real information.

Some time people did not have time to fill questionnaire, so they tick option without even
reading the question.

A sample size cannot always represent the whole population.

Time and money was one of the constraints while conducting the research.

As the questionnaires were got filled through mail, therefore 100% response was not got
despite several requests and reminders.

DATA ANALYSIS

Data Analysis is the process of systematically applying statistical and/or logical techniques
to describe and illustrate, condense and recap, and evaluate data. According to Shamoo and
Resnik (2003) various analytic procedures “provide a way of drawing inductive inferences
from data and distinguishing While data analysis in qualitative research can include
statistical procedures, many times analysis becomes an ongoing iterative process where
data is continuously collected and analyzed almost simultaneously. Indeed, researchers
generally analyze for patterns in observations through the entire data collection phase
(Savenye, Robinson, 2004). The form of the analysis is determined by the specific
qualitative approach taken (field study, ethnography content analysis, oral history,
biography, unobtrusive research) and the form of the data (field notes, documents,
audiotape, videotape).

An essential component of ensuring data integrity is the accurate and appropriate analysis
of research findings. Improper statistical analyses distort scientific findings, mislead casual
readers (Shepard, 2002), and may negatively influence the public perception of research.
Integrity issues are just as relevant to analysis of non-statistical data as well.

Considerations/issues in data analysis

There are a number of issues that researchers should be cognizant of with respect to data
analysis. These include:

 Having the necessary skills to analyze

 Concurrently selecting data collection methods and appropriate analysis
  Drawing unbiased inference
 Inappropriate subgroup analysis
 Following acceptable norms for disciplines
 Determining statistical significance
 Lack of clearly defined and objective outcome measurements
 Providing honest and accurate analysis
 Manner of presenting data
 Environmental/contextual issues
 Data recording method
 Partitioning ‘text’ when analyzing qualitative data
 Training of staff conducting analyses
 Reliability and Validity
 Extent of analysis

Having necessary skills to analyze

A tacit assumption of investigators is that they have received training sufficient to

demonstrate a high standard of research practice. Unintentional ‘scientific misconduct' is
likely the result of poor instruction and follow-up. A number of studies suggest this may be
the case more often than believed (Nowak, 1994; Silverman, Manson, 2003). For example,
Sica found that adequate training of physicians in medical schools in the proper design,
implementation and evaluation of clinical trials is “abysmally small” (Sica, cited in Nowak,
1994). Indeed, a single course in biostatistics is the most that is usually offered
(Christopher Williams, cited in Nowak, 1994).

A common practice of investigators is to defer the selection of analytic procedure to a

research team ‘statistician’. Ideally, investigators should have substantially more than a
basic understanding of the rationale for selecting one method of analysis over another. This
can allow investigators to better supervise staff who conduct the data analyses process and
make informed decisions.

Interpretation
After collecting and analyzing the data, the researcher has to accomplish the task of
drawing inferences followed by report writing. This has to be done very carefully, otherwise
mi conclusions may be drawn and the whole purpose of doing research may get vitiated. It
is only through interpretation that the researcher can expose relations and processes that
underlie his findings
 In case of hypotheses testing studies, if hypotheses are tested and upheld several times,
the researcher may arrive at generalizations. But in case the researcher had no hypothesis
to start with, he would try to explain his findings on the basis of some theory. This may at
times result in new questions, leading to further researches. All this analytical information
and consequential inference(s) may well be communicated, preferably through research
report, to the consult of research results who may be either an individual or a group of
individuals or some public private organisation.

Meaning of Interpretation
Interpretation refers to the task of drawing inferences from the collected facts after an
analytical and or experimental study. In fact, it is a search for broader meaning of research
findings. The task of interpretation has two major aspects viz.,

1. the effort to establish continuity in research through unlinking the results of a given
study with those of another

2. the establishment of some explaflat concepts. “In one sense, interpretation is concerned
with relationships within the collected data, partially overlapping analysis. Interpretation
also extends beyond the data of the study to inch the results of other research, theory
and hypotheses.” Thus, interpenetration is the device through which the factors that
seem to explain what has been observed by researcher in the course.
METHODOLOGY
1. Introduction

In recent years many new management concepts have been created, e.g. benchmarking,
Business Process Reengineering (BPR), lean management, TQM, strategic alliances, network
organizations, virtual organizations, and many more. They have been subject to extensive
analysis, both theoretical and methodological, in a number of countries. However, relatively
little broad empirical research has been devoted to this subject despite the fact that among
companies operating in various sectors of the economy we can observe a number of
practical examples of entities that have successfully implemented the presented concepts.
Such concepts are also increasingly used by Polish companies. It is facilitated by deep
relationships between the Polish economy and the global economy, and the presence of
global companies in Poland, especially in the central and southern parts of the country.
Therefore, based on the results of aforementioned

3.Methodology

This research aims to identify the scale and scope of the use of modern management
concepts in selected sectors of the Polish economy. It was conducted in several main areas
use of modern management concepts, factors inducing companies to apply the management
concepts benefits from the application of modern management concepts, competences
obtained through the use of modern management concepts, competences needed for the
implementation of modern management concepts, measurement of the effectiveness of the
concepts. The research subject included a group of 125 companies operating in five
traditional sectors of the Polish economy: metallurgy and steel-related sectors such as
machinery, coke, mining and energy. Questionnaires were sent to the companies which,
under the Pareto rule, represent a minimum 80 percent (and in some sectors even 100
percent) of the production potential of the given sector. It was assumed that the
questionnaires - if possible – should be completed by managers representing at least middle
or, where possible, the highest management levels.

4.Analysis of the results

The companies surveyed represent various entities inters of employment, annual sales and
markets served. Employment up to 100 people - 5 companies; 101-200 people - 4
companies; 201-500 people - 4 companies; more than 500 people - 16 companies.

Markets served

local - 2 companies; regional - 1 company; national - 6

companies; international - 19 companies.

Annual sales in PLN

1 - 10 million - 1 company; 11 - 20 million - 2 companies;

21 - 50 million - 6 companies; 51-100 million - 2 companies;

Not all companies responded regarding employment, scope of operations or annual sales. In
turn, not all of the surveyed companies indicated the markets on which they were active,
from local to international. Notwithstanding these limitations, it should be noted that the
vast majority of surveyed companies are very large entities (both in terms of employment
size and annual sales) which operate internationally

Human Resource Management in the Indian Banking Sector

To bring out the best in a man is the essence of human resource development. Simply
speaking, Human Resource Development (HRD) is the process of increasing the capacity of
human resources through the development. 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 others’ 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 refers 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 proactively and capacity to embrace larger
issues. Considering 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- nears
investing their wealth and labour 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 Development is the centre of HRS and most vital for the

Corporate Social Responsibility

Bank of India believes that it is its foremost duty to contribute towards impacting the lives
of various stakeholders like customers, employees, shareholders, communities and
environment in a positive manner through all aspects of its operations, thereby serving the
interest of the society at large. The Bank intends to be in step with the new thought of
measuring performance on the basis of economic impact, social impact, and environmental
impact in the task of inclusive growth, through Banking operations, towards the larger
canvas of Nation building. It was the dream of our eminent Statesmen that every individual
Indian should be free from hunger, malnutrition, and should have basic necessities and be
entitled to affordable education, healthcare facilities, equal opportunities in an enabling
environment thereby resulting in reduction of social and economic disparity. Towards this
larger goal, Corporate as major players in the economic development are also required to
share this Social Responsibility, and Bank of India contributes its share to this worthy cause.
Bank of India has a policy to give back a part of what it has received from the environment
and society and is contributing / participating on a sustainable basis in activities.
BOARD OF DIRECTORS

Shri G. Padmanabhan ( Non-Executive Chairman )

Shri G. Padmanabhan (DOB 29.05.1955), is a post graduate in

Economics (First Class- First) from the University of Kerala and an
MBA (International Banking and Finance) from the Birmingham
University, UK.
He joined Reserve Bank of India in March 1979 and was elevated as
Executive Director on 4th July, 2011, the position from which he
superannuated on 31st May, 2015. During his successful career in
RBI, Shri Padmanabhan has handled various challenging
assignments including Regional Director of a major regional office of
RBI from November 2003 – April 2005 and Head of Department of
Payment & Settlement Systems in the Bank.
As Executive Director in Reserve Bank of India, Shri Padmanabhan
was looking after Department of Information and Technology,
Department of Payment and Settlement Systems and Foreign
Exchange Department.
Shri Padmanabhan has been appointed as Non-Executive Chairman
of Bank of India on 14th August, 2015 for a period of three years.

Shri DinabandhuMohapatra(Managing Director & CEO)

MrDinabandhuMohapatra, a post-graduate in Economics and

holding a degree in Law, joined Bank of India as a Direct Recruit
Officer in the year 1984. During his career spanning over three
decades, he has headed various Branches, Departments, Zones and
National Banking Groups in Eastern, Western, Northern and
Southern parts of the country.
He carries with him vast knowledge and multi-dimensional banking
experience including Treasury Operations, International Banking,
Priority Sector Lending, Corporate Lending, Marketing, Recovery,
Human Resources, spanning over thirty three years, including his
stint as Chief Executive Officer of Hong Kong and Singapore Centres
of Bank of India.
As Executive Director of Canara Bank, he was overseeing
International Operations, Overseas Credit, Strategic Planning &
Development (including Economic Intelligence & BPR), Retail
Resources, Marketing, Selling & Cross-selling, Government
Business and Fee Income Vertical, Corporate Credit, PAG &
Syndication, CDR & Stressed Accounts, Financial Management &
 Subsidiaries.
He was Director on the Boards of Canara Bank’s Subsidiaries –
CHOICe, Canbank Factors &Canbank Computer Services Limited.
He has taken charge as Managing Director & CEO of the Bank on 05
May, 2017.

Shri R A SankaraNarayanan(Executive Director)

Shri R A Sankara Narayanan, 55 years, is a post graduate in

Public Administration. He holds an MBA Degree and acquired
Certified Associate of the Indian Institute of Bankers (CAIIB). He
also has a Diploma in Treasury & Investment Risk Management and
P G Diploma in Personnel Management and Financial Management.

He has joined the Bank as a Direct Recruit Officer in 1983. He was

elevated as a General Manager of the Bank in September, 2011 and
was overseeing the International operations of the Bank, covering
59 offices in 22 countries and contributing 29% of the Bank’s
business. He has worked as Head of Treasury operations, Zonal
Manager, General Manager, National Banking Group and at
Corporate Office etc. besides 2 foreign stints at Tokyo and
Singapore.

He has taken charge as Executive Director of the Bank w.e.f. 15th

May, 2015.

Shri NeelamDamodharan(Executive Director)

Shri Neelam Damodharan has taken over charge as Executive

Director of Bank of India on 16th February, 2017.

Prior to his elevation as Executive Director of Bank of India, he was

Chief Executive, US Operations, Bank of Baroda.

Shri Damodharan is a Science graduate, CAIIB and Diploma holder

in Financial Management. He joined Bank of Baroda as Direct Recruit
Officer in the Year 1983 and rose to the position of General Manager,
overseeing International operations and in-charge of international
projects. He has been a part of several important positions at foreign
centers of Bank of Baroda. He has 34 years of banking experience
which involves both policy and operational exposure at various levels.
Shri Atanu Kumar Das(Executive Director)

Shri Atanu Kumar Das is a post graduate in Applied Economics and

NET holder from UGC. While pursuing a doctoral degree at IIT,
Kharagpur, Shri Das joined the Banking Industry as Economist in the
year 1994.

In his 23 years of banking experience, he has been involved at both

policy and operational levels. Prior to assuming charge as Delhi
Regional Head in January 2015, he was heading Vijaya Bank's
Lucknow Region for more than 3 years. While at a Vijaya Bank's
Corporate Office, Shri Das has handled key Departments as Planning
& Development & also was posted as Executive Secretary to C&MD for
more than 2 years.
He has been part of several important training programs/workshops
conducted at premier institutions like IIM (Kozhikode), IIM
(Ahmedabad), ASCI, NIBM, BTC and Frankfurt School of Business
Management.
He has taken charge as Executive Director of Bank of India on
17.02.2017.

Shri Girish Chandra Murmu(Govt. Nominee Director )

Shri Girish Chandra Murmu, 56 years, is an MA and MBA. He is a

1985 batch Indian Administrative Service Officer of Gujarat cadre and
was Principal Secretary to CM of Gujarat. Shri Murmu held key
administrative positions in the State Government. Subsequently, with
his posting in Central Government, he was appointed Joint Secretary
in Department of Expenditure in Ministry of Finance. Presently, Shri
Murmu is holding the charge as Additional Secretary, Department of
Financial Services, Ministry of Finance, Government of India.

Shri Girish Murmu has been appointed as Government Nominee

Director on the Board of Bank of India w.e.f. 14th June, 2016 or until
further orders.
Smt.R.Sebastian(RBI Nominee Director)

Smt. Rosemary Sebastian is the Chief General Manager of the

Reserve Bank of India at its Central Office in Mumbai. In her career
with the Reserve Bank of India, spanning over three decades, she has
worked in various capacities in the functional areas of Banking
Supervision, Internal Debt Management, Foreign Exchange regulation,
Rural Credit, Government and Bank Accounts and Consumer
Protection. She was a member of several Committees appointed by
the Government of India and the Reserve Bank of India. She served as
the Banking Ombudsman for Maharashtra and Goa from May 2012 to
February 2016.
Smt. Rosemary Sebastian is a post graduate from Osmania University
and has a Diploma in Treasury Investment and Risk Management
(DTIRM). She is also a Certified Associate of the Indian Institute of
Bankers(CAIIB).
Smt. Rosemary Sebastian has been appointed as RBI Nominee
Director on the Board of Bank of India w.e.f. 26th April, 2016.

Ms. VeniThapar(Part-time Non-official Director)

Smt. VeniThapar, 45 years, is a Chartered Accountant from ICAI and

also holds the degree of a Cost Accountant from Institute of Cost and
Works Accountants of India. She is a Certificate holder from
Information Systems Audit and Control Association. Her areas of
interest are RBI & FEMA matters, Banking matters, International
Taxation, Income Tax, Company Law and Associated fields.

Smt. VeniThapar has been appointed as Part-time Non-official Director

under Chartered Accountant category on the Board of Bank of India
w.e.f. 21st June, 2016 for a period of three years from the date of
notification of her appointment or until further orders, whichever is
earlier.
Shri Neeraj Bhatia (Shareholder Director) (From 25.10.2014)

Shri Neeraj Bhatia, 45 years, is a Science Graduate. His area of

knowledge is Banking & Finance. He is a Fellow of the Institute of
Chartered Accountants of India. He is also the member of European
Corporate Governance Institute, Belgium and member of Information
Systems Audit and Control Association, USA.

He is the partner in M/s. Samsand & Associates, Chartered

Accountants which handles various audit of public sector
undertaking, banks, financial institutions including public limited
companies.

He has served Bank of India as Chartered Accountant Director

nominated by the Government of India, for a period of 3 years from
17.10.2011 to 16.10.2014.

He is elected as Shareholder Director of the Bank for a term of 3

years w.e.f. 25.10.2014.

Shri Sanjiv Kumar Arora(Shareholder Director) (From 25.10.2014)

Shri Sanjiv Kumar Arora,52 years, is a Commerce Graduate. He is

a Fellow of the Institute of Chartered Accountants of India. His area of
knowledge is Banking & Finance.

Shri Arora served as a Director on the Board of Punjab & Sind Bank
for a period from 15.7.2011 to 14.7.2014. He was on the panel of
Arbitrators maintained by the Registrar Co-operative Societies, New
Delhi. He was also a member of Steel Consumer Council for a period
of two years. The Department of Revenue, MOF, Govt. of India has
appointed him as a member of National Committee for Promotion of
Social & Economic Welfare for a period of 3 years w.e.f. 1.2.2011 and
again re-nominated him as a member of the said Committee for next
3years w.e.f. 1.2.2014.

He is elected as Shareholder Director of the Bank for a term of 3

years w.e.f. 25.10.2014.
CHAPTER-6
Finding, Analysis & Suggestions

FINDINGS

The present findings from the interpretation of the results regarding factors considered for
adopting e-banking / internet banking services by bank customers, functional /
psychological barriers, and usefulness and benefits of e-banking services are enumerated
here.

(1) Internet centre in the study area is the place for using internet for around 50 per cent of
the respondents.

(2) Though majority of the bank customers perceive the ATM usage as important, the
importance of ATM usage is significantly related to location, education and occupation of the
bank customers based on the present study.

(3) The perceived importance of Tele-banking is independent of the location and income but
depends upon sex, age, education and occupation of the bank customers.

(4) The internet banking is important for bank customers and at the same time the
importance of internet banking is significantly related to their age, education, occupation
and income.

(5) The extent of services like Online Enquiry, Online Payment, Credit Card and Telephone
Banking has been at “Fair” level whereas the extent of services such as ATM Card, Debit
Card, Internet Banking, Depository Service, and Investment Advisory Service, e-Transfer of
Funds, Core Banking and Anywhere Banking has been “good” by the banks.

(6) There is significant difference in the extent of services as provided by both public and
private sector banks.

(7) The preference to manual banking is little more than that of e-banking and preference
towards manual banking and e-banking is largely associated with location, age, education
and occupation of the bank customers.

(8) There is significant relationship between adoption of e-banking and location, age,
education and income of the bank customers.

(9) The adoption of e-banking is significantly associated with the number of banking
transactions per month among bank customers.

(10) The bank customers consider “Like to use new technologies”, “IB has made banking
easy” and “Use IB for better rate offers and charges only” as the primary reasons for
adoption of e-banking.
 SUGGESTIONS

The following suggestions are recommended for enhancing e-banking / internet banking
services of banks to the customers

1) Banks should take necessary steps to create awareness among rural people about the
advantages of e-banking / internet banking services available in the banks.

2) The e-banking / internet banking system should be enhanced to make the online
enquiry and online payment much more easier to the customers.

3) Public sector banks should improve their e-banking / internet banking services to
compete with their private sector counterparts.

4) Most of the customers have not availed of the e-banking / internet banking services
because they do not trust the internet channel presuming it as complicated. So banks
may set up a team of personnel to train the customers to get acquainted with internet
channel.

5) The bank customers have perceived the risk of getting wrong information from e-
banking / internet banking services. These illusions should be removed from the minds
of the customers by bank people as these factors are the barriers for most of the
customers for not adopting these services.

6) Though e-banking / internet banking is convenient and easy to use, customers are
afraid of adopting these services because they think that using these “services are
difficult and complicated”. So, on-site training can be provided to the bank customers
who intend to use e-banking / internet banking services.
 CHAPTER-7
CONCLUTION
Based on this study, the opinion of the sample respondents among the bank customers the
various aspects of e-banking / internet banking services provided by public and private
sector banks are evaluated using appropriate statistical techniques such as Cross tabulation
analysis with Kruskal-Wallis test, t-test in addition to descriptive statistics like mean and
standard deviation.

It is concluded from the results of the study that the usage of ATM, Telebanking and
Internet banking are perceived as important and the use of these services is associated with
socio-economic and demographic characteristics of the respondents. Though, most of the
customers prefer manual banking over e-banking, the customers tend to use e-banking /
internet banking and adoption of e-banking and internet banking services among the bank
customers is significantly influenced by the number of times visiting the banks as well as
the number of banking transactions per month.

Most of the services through e-banking / internet banking performed by both public and
private banks are beyond the expectation of the customers. Similarly the various services
provided by both public and private sector banks are more than adequate for customers. It
is concluded finally that there is significant difference between public and private sector
banks in respect of both services provided and services performed via e-banking / internet
banking. From the results regarding functional / psychological barriers and benefits, it is
noted that there are four underlying aspects (dimensions) of functional / psychological
barriers (two aspects related to barriers such as “Complications and Difficulties in using IB
initially” and “Risk of getting wrong information”) and benefits (two benefits namely,
“Convenient & Easy to Use” and “Good option next to traditional banking”) are identified
using factor analysis. It is also concluded that there is significant difference in the perceived
status of functional / psychological barriers / benefits dimensions by socioeconomic
characteristics and the perceived status of functional / psychological barriers/benefits is
related to importance of using ATM, internet banking, preferred type of banking, availing e-
banking services, period of using e-banking, number of times visiting banks in a month,
number of internet transaction in a week and number of banking transaction in a month.

From the evaluation of the customers’ opinion with regard to the benefits and usefulness of
e-banking / internet banking in addition to “intention of using e-banking / internet banking
in the future”, it is identified that there are four major benefits, namely “Save time & Cost
Less”, “Provide accurate, relevant and up-to date information”, “Flexible and easily
accessible with convenience” and “Assists to share the experience with bank and other
customers more efficiently” from e-banking / internet banking. It is found that “flexibility
and easy accessibility with convenience” is the most desirable benefit followed by “Providing
accurate, relevant and up-to date information” and “Saving time & Cost Less” and the
perceived status of the above benefits is associated with education and family income of
the respondents
 It is further concluded that the bank customers may also continue to use e-banking /
internet banking in the future” as it is useful in getting account details and balance
statements as well as for transferring funds. Moreover, bank customers tend to strongly
recommend to others to use e-banking / internet banking as it is useful for loan transaction,
paying bills using available cash in the accounts, making order to buy and sell shares and
generating latest reports of banking transactions.

Suggestions further Research

The following areas need further research in this field for the effective implementation of
various e-banking/internet banking services in future for the benefit of all the people.

1. A Study on Importance of e-Banking /internet Banking in financial inclusion.

2. A study on need of e-Banking / Internet Banking for next generation.

3. Strategies for successful implementation of e-Banking/internet banking service in the

Indian landscape.

4. A study on status of e-Banking in the development of co-operative Banks in Tamil Nadu.

5. A study on evaluation of e-Banking / Internet Banking websites in India.

6. A study on Banker’s attitude towards e-Banking service.

7. A comparative study on Indian and foreign customers perspective towards e-Banking

services.

8. A study on uses of Information Technology in identifying financial Products.

9. A Study on Role of e-Banking /Internet Banking in cost reduction and Cost Control.

10. A study on impact of e-Banking services adopted by Indian customers.

11. A study on impact of information Technology Act in safeguarding the customers using e-
Banking services.