ASSIGNMENT

OF
MANAGEMENT PRACTICES
&
ORGANIZATIONAL BEHAVIOR
HR PRACTICES AND ITS RESULTS IN BANK
OF BARODA

Submitted To:- Submitted by:-

Miss. Silky sehdev Bikash Kumar sah 11007057,A27

Rajesh Gupta 11000194,A21

Sourabh Kr. Pandey 11005539 A13

Nitin Kumar 11006508, A02

Vineet Sanwal 11000012, A29

Submission Date: - 18th November

Bank of Baroda (BoB) (BSE: 532134) the third largest bank in India, after the State Bank of
India and the Punjab National Bank and ahead of ICICI Bank.[1] BoB has total assets in excess
of Rs. 2.27 lakh crores, or Rs. 2,274 billion, a network of over 3,000 branches and offices, and
about 1,100 ATMs. IT plans to open 400 new branches in the coming year. It offers a wide range
of banking products and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in the areas of investment
banking, credit cards and asset management. Its total business was Rs. 4,402 billion as of June
30.[2]

As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number should
climb to 90. In 2010, BOB opened a branch in Auckland, New Zealand, and its tenth branch in
the United Kingdom. The bank also plans to open five branches in Africa. Besides branches,
BoB plans to open three outlets in the Persian Gulf region that will consist of ATMs with a
couple of people.

The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in the
princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of
India, was nationalized on 19 July 1969, by the government of India.
Bank of Baroda financials 2010
Sales Rs. 17,754 crores

Profits Rs. 3,058.33 crores

Assets Rs. 2,78,316.70 crores

Bank of Baroda Building in Dubai

In its international expansion, the Bank of Baroda followed the Indian diaspora, especially that of
the Guajarati’s. It has significant international presence with a network of 72 offices in 25
countries, six subsidiaries, and four representative offices.

Among the Bank of Baroda’s 42 overseas branches are ones in the world’s major financial
centers (e.g., New York, London, Dubai, Hong Kong (which it has upgraded recently), Brussels
and Singapore), as well as a number in other countries. The bank is engaged in retail banking via
17 branches of subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. The Bank of
Baroda also has a joint-venture bank in Zambia with nine branches. The Bank of Baroda
maintains representative offices in Malaysia, China, Thailand, and Australia. It plans to upgrade
its offices in China and Malaysia shortly to a branch and joint-venture, respectively.

The Bank of Baroda has received permission or in principle approval from host country
regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish
joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open
offices in The Maldives, and New Zealand. It is seeking approval for operations in Bahrain,
South Africa, Kuwait, Mozambique, and Qatar and is establishing offices in Canada, New
Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing
operations in the United Kingdom, the United Arab Emirates, and Botswana.
 HUMAN RESOURCES PRACTICES
Bank of Baroda has the tradition of continuous enrichment of its human asset so that they deliver
value to the business.

In the ongoing Business Transformation Program, our PEOPLE play a vital role and are one of
the key business enablers. Under its plan of organizational transformation through people
processes and systems, the Bank has launched a few innovative employee centric initiatives and
has also undertaken revamp of key systems and practices.

HR Objectives
To initiate & institutionalize globally competitive HR practices in the Bank in our pursuit to
become a Bank of international standards and to become an employer of preferred choice;

To put in place relevant HRD strategies and use modern methodologies to undertake
organizational renewal; identify and nurture talent, bring about marked changes in the mindset of
employees at all levels so as to enhance HR Quality;

To create a performance-driven culture and an exciting workplace for the employees

To create a pool of entrepreneurial managers and business leaders for future;

To inculcate a strong and effective sales and service culture across levels in the organization in
order to generate strong stakeholder affiliation;

To create a learning organization for employees’ intellectual growth and creativity; and to re-
skill the workforce to operate in digitally enabled modern core banking environment.

TRAINING
To keep up with the fast changing business scenario, product profile, processes, customer
preferences, numerous technology applications and compliance & regulatory requirements,
training has become a centre- stage activity.

The bank conducted 342 training programs in the area of CBS covering 6234 employees during
the year. To provide appropriate thrust in the area of credit and risk management, 193 programs
were conducted in other functional areas covering 4595 employees during the year.

The resources of external Training Institutions and Business schools were tapped for training
employees in the functional areas where in-house expertise was not available. 741 Officers and
Executives attended training programs in specialized areas at various external training
institutions and reputed Business Schools. Also 20 Officers/Executives attended training
overseas.
A Leadership Development Program – Project LEAP

Post-2009 technology environment, competitive compulsions, entry of foreign banks, M&A will
all tend to change the course of banking necessitating new breed of leaders at different levels. So
managing & leading a financial services organization in such an environment would be a new
challenge for future leaders.

Further, One of the key drivers for market leadership is the bank’s internal leadership. It is in
response to this that the project LEAP (Leadership enhancement and appreciation process) was
conceived and launched aimed to groom the executives in leadership and capability building.

Under this program of Bank of Baroda, nearby three hundred executives has been groomed in
leadership in a phased manner. Its rigorous process involves:

To identify a competency framework for future leaders in the Bank.

Administration of psychometric instruments and 360-degree feedback for each identified

executive for building on their strength and working in the areas where development is needed.

Classroom orientation & Action Learning Projects.

Succession Planning.

Another is KHOJ-For talent Identification and grooming

KHOJ initially was initiated as an in-house talent identification and development exercise in
2005. An element of self-development and career planning is built into the system, as this is a
voluntary exercise where aspiring employees apply for selection for grooming in various areas
they perceive as their areas of strength in our operations.

Encouraged by the huge response to the initiative, KHOJ exercise has been repeated in 2006 and
in 2007.Candidates selected under KHOJ are groomed, placed in the area of operation of their
choice. As part of their development many are identified as change champions in many of the
new initiatives. Mentors are assigned for facilitating their grooming.

Exclusive Conclaves of KHOJ selectees were organized. In order to make the KHOJ selectees a
vibrant and visible group, due weight age is given to their contribution in career progression,
rewards, special assignments, etc.

HR Initiatives

Board level approved strategy paper outlining various organization wide HR reforms
interventions.
HR Steering Committee
Board Level HR Committee for piloting HR initiatives and reforms. The Committee comprises
of Directors and leading professionals as Experts from outside the Bank.

KHOJ
Organization wide Talent identification and Development Program for Officers and Clerks
(Through scientific process of identification and selection, employees with high potential to be
deployed in key business areas. Such employees to be provided with suitable grooming and
career growth opportunities)

SAMPARK
SOS Employee HELP Line (Employees in distress can directly approach the CMD for
immediate relief)

PARAMARSH
Employees Counseling Centre (Counseling centers for providing psychological assistance and
guidance to overcome their stress, complexities and conflicts in order to lead a better life. This is
totally confidential between the employee and the counselor. First such center set up at Mumbai
where services of professional Clinical Psychologist are available.

BARODA FINANCIAL REWARDS FOR BUSINESS LEADERS

Weighted Index based Model (with pre-defined weightages for different business KRAs) for
balanced assessment of efforts of Business Leaders (Branch Heads, Regional Heads, Deputy
Regional Heads and Zonal Heads).

MEP-TIKSHNA
Management Education Programs for Executives (GM, DGM, AGM, Chief Managers) in
association with top B-Schools like IIM-Ahmadabad and Management Development Institute,
Gurgaon. The specially designed program is aimed at development of strategic business leaders
for the future. So far, 213 executives have undergone the program.

HR POLICY FOR OVERSEAS SELECTION & DEPLOYMENT

Scientific and process orientation in the new revamped policy for selection and deployment of
officers at the Bank’s overseas territories.
HR RESOURCING POLICY
New HR Resourcing Policy formulates to take care of various recruitment needs of the bank
consequent upon abolition of the erstwhile Banking Services Recruitment Board (BSRB).

Performance Appraisal System for Clerical and Sub-Staff

With the objective of bringing an organization wide performance culture in the organization,
hitherto uncovered employees in the Clerical and Sub-Staff cadre brought in under a new
performance appraisal system.

Massive Recruitment of Specialist officers and also graduates from

B-Schools through campus recruitment
To take care of the Bank’s requirement in different specialized areas like IT, Treasury, HR,
Marketing & Sales, Credit, International Business etc (Around 500 officers being recruited).

A New Induction cum Grooming Program for Young Officers

With the objective of developing future managers and leaders and for deployment in key areas, a
re- vamped Officers’ Induction cum Grooming Program is launched.

Fast Track Career Growth Opportunities for Executives and

Officers
In order to provide fast track growth opportunities to aspiring Executives and Officers,
promotional opportunities have been provided.

BARODA LEADERSHIP DEVELOPMENT CENTRE

Board has taken the decision to set-up a World-Class Leadership Development Centre to be set
up to prepare future leaders for the Bank.

NEW GROUP HR STRUCTURE

A new Group HR Organization Structure is being put in place to take care of the strategic
business – HR needs of the Organization. The Structure would have balanced focus on HRM and
HRD aspects and will put in place competency based HR systems and practices.
PROMOTION

The present procedure of recruitment and promotion in the banks has evolved over the years in
an ad hoc manner.

With the objective of bringing an organization wide performance culture in the organization,
hitherto uncovered employees in the Clerical and Sub-Staff cadre brought in under a new
performance appraisal system.

To take care of the Bank’s requirement in different specialized areas like IT, Treasury, HR,
Marketing & Sales, Credit, International Business etc.

In most of the central government department there is provision for time bound promotion and
hence question of stagnation in particular scale does not arise. It is banks that even after
completing twenty or thirty years of service in a particular scale promotion is not given to an
employee. (Now-a-days Interview is a killer injection in the pocket of management, which can
be injected to any good or bad performer in promotion process as per whims, and fancies of the
interviewer).

When leaders and bank management can give relief to retired employees. In order to provide fast
track growth opportunities to aspiring Executives and Officers, promotional opportunities have
been provided. According to Anurag Khanna, chairman and managing director of Bank net India,
a banking research company, new recruitments are to keep pace with the banks’ expansion plans.
“The banks are adopting fast-track promotions to fill in any management gap,” said Khanna.

We are battling private and foreign banks with public sector tools,” said Dipankar Mukherjee,
general manager, human resources and marketing at Bank of Baroda. Low salary, tough working
conditions, frequent transfers and an opaque promotion policy deter public sector employees
from working effectively. Bank of Baroda wanted differential wages for their employees but they
could not move ahead with their plans as the unions opposed that. Titles for the officer cadre
start from assistant manager, deputy manager, manager, chief manager, general manager,
managing director and the chairman accordingly.

Though the pay scale slightly varies from bank to bank due to many reasons like the working
place viz. metros, rural areas the basic scale remains the same for every public sector bank. The
employees are promoted on the basis of their score in the exams taken by the bank. It includes
written exam and interview. It is taken time to time. There are some qualifications required for
appearing in the exam.
For example a clerk is eligible for the promotion to the Probationary Officer after one year of his
service. The promotion policy is based on two parameters

(i) Qualification,

(ii) Time

Separate marks were prescribed for each of the two parameters and, after obtaining the minimum
qualifying marks varying from cadre to cadre one could be promoted to the next higher position.
While formulating the merit-based promotion policy the consideration opinion was that separate
points should not be prescribed for qualification and length of service. The simple reason for this
thinking was that the minimum qualification stood as prescribed at induction for different levels
of hierarchy. The other consideration for such views was that in case the employee had increased
his qualification for his better performance as compared to other colleagues, then the said
qualification would be reflected on his performance and this would obviously have him rated
better than others. Views regarding the seniority of an employee were similar.

To meet the Bank’s growth requirements and to fulfill the aspirations of employees, avenues for
career progression have been numerous. Special efforts have been made to maintain relatively
younger employees manning key positions. Keeping this in view the following numbers of
employees were promoted to higher grade/scale during the year.

Conclusion OR Result

Bank of Baroda features in list of 50 India’s Most Valuable Brand 2009

The Economic Times has published the list of India’s Most Valuable Brands (2009) released out
by Brand Finance, a leading global brand valuation firm. Bank of Baroda features in the elite
club of 9 Banking and Finance companies in the list. Even though the Top 50 list points to the
declining influence of companies from the banking and finance services sector, Bank of Baroda
has achieved 34th position as against its 39th position last year. The brand is now valued at466
US million $, close to 11 % increase from last year. It is worth mentioning that the Brand
Finance IMVB study indicates that as long as brands continue to reinvent and deliver good value
for money, they will do well.

2010:-

Malaysia awarded a commercial banking license to a locally incorporated bank to be

jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank, India
BIA Bank (Malaysia), will reside in Kuala Lumpur, which has a large population of Indians.
Andhra Bank will hold a 25% stake in the joint-venture, BoB will own 40% and IOB the
remaining 35%.

Bank of Baroda financials 2010

Sales Rs. 17,754 crores

Profits Rs. 3,058.33 crores

Assets Rs. 2,78,316.70 crores