HR practices in banking sector-A literature review

“The name you can bank upon” is the right maxim for the concept of human relations. Employer employee relations are the backbone of any organization. Tata group concerns are the appropriate examples of the same. Better Human relations leads to better understanding. Better understanding enthuse to work better. Trust creates trust. This is the heart of human relations in its simple form. The same applies in banking too while framing rules, duties and its implementations in various activities. Complex rules create complex problems. Not easy to solve. But, creating unhealthy human relations, causing hardships to both, employee and employer. Hence, aim of any organization must be to frame simple, workable rules within the ambit of law of the land. Framing of rules and practicing are two different things. Even, Banking law and practice has been depicted clearly in Negotiable Instruments act, 1881 (amended up-to-date). It means the HR rules and practices adopted in the banking must have the concept of welfare, efficiency, integrity and ultimately TRUST. But, is it possible to have perfect rules, perfect implementation, objectivity and congenial environment thereof for smooth functioning of a bank? No, it is not. Then what could be our motive and actions to achieve better human practices in the bank? But, the economic orders of world is fluctuating promptly and bringing out of a desire to increase affordability and efficiency and thus organizations are facing tough competition. This aspect can be achieved if Human resources are properly taken care of by the organizations. Redefining and reengineering their business strategies shall have far reaching effect on service industry like banking. Hence, an effective HR practices lead to better performance, productivity and name and fame of an organization in the business world and improvement in the bottom line of balance sheet. By getting the knowledge of this reality, many enlightened business institutions in all over the world started to redesign their human resource.s role so to have best output from the available wealth and even our country (India) is not an exemption to all this concept. Hence in this present competitive world, crucial determination of success of banking industry totally depend on the management of human resources. Therefore, as compared to previous decades, today systematic management of human resource has been more intensely felt as a vital because social as well as monetary environment has been changing all over the world which framed an optimistic attitude is being made towards globalization of the economy. Thus, with a view of inevitability of Human Resource in banking sector, the researcher has tabled this to examine HRM Practices followed by public & private sector banks & will end up with suggestions to advance the effectiveness of HR Practices in banking sector. And if it was not taken into consideration, organizations not only have low yield but also fail to retain skills and capabilities of efficient employees which can be advantageous to their firm.s itself.