Indian banking sector – a study of innovative hr practices and challenges

HRM function in a bank is being increasingly recognized as a strategic business partner with responsibility of managing key corporate resources. Indian Banking sector is making efforts to adopt international best standards in HRM with local customs and sensibilities. Due to globalization, public sector banks are facing tough competition from the private sector banks, both domestic and foreign. To improve employee efficiency and to excel in performance, they have realized the significance of innovative HRM practices, which were earlier being used largely by private sector banks. Innovative HR practices are an effort to ensure employee survival in a highly competitive environment. This approach to HRM is likely to firm as well as the economy as whole. Innovative HR practices are proposed to enhance effectiveness and efficiency in different organization and to retain talented workforce in the organization for a longer period of time. The level of implementation of innovative practices may not be satisfactory, yet the implementation has been started and favorable results in the productivity.