Human capital management in banking sector-a conceptual framework

This paper investigates the background, current status and practice adopted by banks for development of their human capital.
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Human capital management in banking sector-a conceptual framework International Journal of Management (IJM) Volume 8, Issue 6, Nov–Dec 2017, pp. 44–55, Article ID: IJM_08_06_005 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=6 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication HUMAN CAPITAL MANAGEMENT IN BANKING SECTOR-A CONCEPTUAL FRAMEWORK Sudershan Chadha Senior Manager, Union Bank of India Dr. Daleep Parimoo Professor, School of Business Studies, Sharda University, Greater Noida, India ABSTRACT The issue of human resource management has been a long-debated topic for business and professional organisations. Modern view and approach see the workers and employee as human capital. So many research and studies have established the direct relationship between human capital management practices and employee performance, which finally establishes a positive relationship between human capital management practices and organisational performance. Traditionally, in banking sector, there was no such concept of human resource development and so for, human resource department was not the part of organisational structure. As professionalism and competition are increasing in banks, a need of human development initiative is much felt now. To fulfil the gap, banks are setting human resource department in their system. Now a days according to required benchmarks, the banks are also trying to establish their standard for human capital management. Although, the reports say that most of the commercial banks adopt human capital management practices to an average degree. Some reports also say that HRD department’s functioning is far from satisfactory level in majority of the banks yet. But, a positive gesture and initiative in this direction is on the flow. In many banks along with training, other activities like manpower planning and performance appraisal have also been introduced. This paper investigates the background, current status and practice adopted by banks for development of their human capital. The methodology adopted for the study includes literature review for conceptual background, theoretical perspective for establishing the relationship between human capital management practices and employee performance as well as organisational performance, and chronological presentation of empirical research done on human resource development practices in banks. Key words: Human Resource, Human Resource Management, Human Resource Development, Human Capital, Human Capital Management, Banking Sector. http://www.iaeme.com/IJM/index.asp 44 editor@iaeme.com Human Capital Management In Banking Sector-A Conceptual Framework Cite this Article: Sudershan Chadha and Dr. Daleep Parimoo, Human Capital Management In Banking Sector-A Conceptual Framework. International Journal of Management, 8 (6), 2017, pp. 44–55. http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=6 1. INTRODUCTION Present day business approaches view and express the workers in terms of resource. They are dealt with as most vital resource named as Human Capital. The expression Human Capital is in some cases utilized synonymously with human resources, though human capital regularly alludes to a more restricted view i.e. the information the individual encapsulate and add to monetary development. The human resource is, of all resources appointed to man, the most beneficial, the most flexible and the most resourceful. Human resources constitute the most essential and irreplaceable constituent in any economy. The concept of human capital as an economic asset was first given in 1960 by Theodore Schultz. Presently in the period of the most genuine economic emergency since the 1930s, policy makers and experts in governments and commercial organisation are looking at their workers as their most essential resource in recuperation of economic stability and attaining growth. Human capital is the supply of information, propensities, social and identity traits, including imagination, encapsulated in the capacity to perform work in order to deliver monetary esteem. On the other hand, Human capital is a gathering of assets—all the learning, gifts, aptitudes, capacities, encounter, insight, preparing, judgment, and knowledge had exclusively and all in all by people in a populace. These assets are the aggregate limit of the general population that speaks to a type of riches which can be coordinated to achieve the objectives of the country or state. Nowadays, we are moving towards a learning economy where interests in intangibles resources are viewed as crucial components to esteem creation in business organisation, and the development of this approach is changing the entire procedure treatment to execution in changing Human Resource work. Presently, there is a general understanding that scholarly capital, all the more particularly human capital is basic to an association's prosperity, and that the HR centre must be more considered in the new information based economy period (Afiouni Fida, 2009). For advancement of Human Capital to perform at competitive level with set benchmarks, the HRD development in banks is progressively working ahead. A lion's share of the banks have setup isolate HRD Departments inside a time of working; HRD Department in a few banks have increased certain noteworthy achievement. The thorough feedback of the displaying HRD work as garish connection can't be defended. Then again, the reality of the matter is that HRD Department's working in a greater part of ...