Human Resource Management (MBA 537)

MBA in Finance Program Semester II First Half (2010/2012)

Individual Assignment

By

Human Resource Management (MBA 537)

In order to fulfill the academic requirement under the Master of Business Administration (MBA) - Finance degree program in the course of Human Resource Management (MBA 537), learning partners (individually) were required to present 5 topics of Human Resources Management (HRM) together with other two readings and apply in to the organization where learning partner works.

In my assignment, I chose following 5 topics and applied to Bank of Ceylon (BOC) where I work. 1. Selection 2. Hiring 3. Induction 4. Pay Management 5. Training and Development

Content Page Number

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1.0

Introduction to the organization

04

2.0

Selection

06

3.0

Hiring

12

4.0

Employee Induction

16

5.0

Pay Management

20

6.0

Training and Development

25

7.0

Conclusion

30

References

31

1.0

Introduction to the Organization

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Bank of Ceylon (BOC) is a state bank, established in 1936, which has a 72 year history. Further, BOC is a commercial bank, which operates, in a highly competitive environment. Bank has focus on Retail, Corporate, International, Treasury, Investment, Development banking, Credit Cards, Trade Services, Safe Deposits, Pawn Broking, Custodian and Islamic banking. Further, bank owns 12 subsidiaries and 6 associate companies. Bank has over 9 Million customer base and has its presence in London, Chennai and Male. Further it has relationships with 800 foreign correspondence banks. Bank has over 309 branches, 218 extension offices which all are fully automated service points. Further, bank has 352 Automated Teller Machines (ATM) in 329 locations. Bank employed 9352 employees on full time together with 1148 outsourced employees. Banks human capital is a blend of majority of experienced aged employees and young qualified employees. The diversity of employees is really high as the BOC has spread across the country. The retirement age is usually age 55 and with the approval of the management employee can work till age 60. Being a state bank, BOC has to follow the government procedure in many functions including in Human Resource Management (HR). Transparency is a must every aspect and some time one could see it trade off the quality.

BOC has a separate Deputy General Manager (HRM) supported by Assistant General Manager (Personal) and Assistant General Manager (Training). Further, separate HRM Department is established at head office and nearly 80 people work in the said department. Figure 1 shows the organizational structure of BOC. Also, BOC divided its branch network in to 11 provinces and at the province level respective Assistant General Manager has considerable control over HRM function. Currently, many HR function in BOC is computerized and runs on a system namely IHRM. The system includes, pay management, employee performance appraisal, employee history, etc. Further, BOC spends on HR

development and quite often conducts training sessions for existing staff thorough its own training institute and number of employees are send for training in abroad as well.

Human Resource Management (MBA 537)

Further, has a strong Trade Union called Ceylon Bank Employee Union (CEBU) which has a membership of roughly 8000 members and also it has a Officer Association where consists of officers. In addition there are small numbers of union with few members.

Figure 1

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2.0

Selection

Opatha (2009) defined selection as the process of making the choice of the most appropriate person from the pool of applicants recruited to full fill the relevant job vacancy. Dessler (2004) defined selection as process of finding the best candidate to the job. Pattanayak (2006) defined selection as is the process of discovering the qualification and characteristic of the job applicant in order to establish their likely suitability for the job position. This is to find out the applicant who has the highest potential to produce the desired job performance. This involves using various techniques, methods to find out the person who is suitable to perform the duties and responsibilities of the job successfully. There could be several outcome of a selection decision either positive or negative and Opatha (2009) defined following. Predictor Criterion Measure of Job Performance Success Fail Failed Predictor False Negative Error True Negative (Low bit) Success Predictor True Positive (High bit) False Positive Error

Source: Opatha, H. H.D.N.P (2009). Human Resource Management, p212

False Negative Error

You did not select a person but later found that person is really doing well in some other organization.

True Positive

You select a person and he has been very successful in your organization after years.

True Negative

You did not select a person and later found that person is not doing well in some other organization.

False Positive Error

You select a person but later found that person is not doing well in your organization.

In selection, we must avoid both False Negative Error and False Positive Error. There could be an opportunity cost for wrong selection and the outcome may visible so many years later even. Pattanayak (2006) defined those errors as Reject Error (rejecting candidates who would have performed successfully on the job) and Select Error (selecting candidate who later perform poorly on the job).
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Dessler (2004) stated selecting the right employees is important for three main reasons and they are given below. 1. Your own performance is always depends in part on your subordinates. Employees with right skills and attributes will do a better job for you and the company. 2. It is costly to recruit and hire employees 3. Legal implications of incompetent hiring

Requirement for successful selection Good Selection Ratio Selection ratio is the proportion of job allocations selected and hired to the number of job application received for a certain job. It is the relationship between actual job applicants hired and job applicants considered. Small the ratio is better and it shows that many high quality job applicants were there.

Good Selectors The selection panel should be competent enough to carry such exercise. They should be ready to put effort and time for selection process and posses necessary technical skills and professional skills in context of the job they are going to select the candidate.

Good Ethical Standard There should be a common equitable method of selection and selectors have to follow high moral and ethical standards. All candidates should be selected using a common tool or technique. There should be no discrimination in the selection method.

Good Budget To select best people, an organization has to spend and there should be a reasonable budget to spend on selection. Any budget constraint in selection will compromise the choosing the best candidate for the job. Pattanayak (2006) defined following stages in selection process which shows in Figure 2.
Screening of Application Form Test Selection Interview Figure 2 Slection Decesion

Human Resource Management (MBA 537)

In contemporary world there several methods of employee selection and organization has to select one or more methods which is they believe suitable in par with the industry. Some methods have greater human involvement with high subjectivity and some have less human involvement with high objectivity. According to Opatha (2009) following methods can be found. Application Evaluation Employment Test Interview Background Information Medical Examination Assessment Center

Application Evaluation Here organization evaluates the applications received and select employees who meet the requirement of the vacancy. There is no subjectivity in here and this very impersonal as organization will not be able see the behavioral aspect of the candidate. However, this method is use by some organization to refine the employees or narrow down the candidate for further selection.

Employment Test Here organization conduct a test to select employee and get the chance to see the abilities, skills, knowledge and competencies they posses. Again this is highly impersonal and objective. This method again is used to narrow down the candidate applied. According to Dessler (2004), a test must have the following qualities in general.

Validity Reliability

- Does this test measures what is suppose to measure? - The consistency of scores obtained by the same person when retested

with the identical or equivalent test

Interview This is a commonly use method and organization can get an idea of the behavioral aspect of the candidate and it is very interactive. However, the interview tends to be subjective and one could see halo effect, personal prejudice, pseudo scientific premises and over emphasis on
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one criterion.

There are several foams in interviews and this method is the least

recommended method of selection.

Individual No of partcipants Panel Structured Unstructured Types of interviews Nature of questions Mixed interviews Problem solving Stress First (Prelimanary) Timing Second (Final) Figure 3 Format II Format III Format I

Background Information Employers try to check and verify the job applicants background information and references. They can do it by calling or even now can go to social sites like LinkedIn.com and get the references. Gray Dessler (2004) said there are two main reasons to conduct a background investigation and/or reference checks to verify factual information previously provided by the applicant and to uncover damaging information such as criminal records and suspended driving license.

Medical Examination For certain jobs physical fitness is a must and more or less for any organization need healthy employees. Therefore, certain organization requests from its candidates to undergo a medical examination from a designated place.

Assessment Center Gray Dessler (2004) defined assessment centers as two or three day simulation in which 10 to 12 candidates perform realistic management tasks (like making presentations) under the
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observation of experts who apiaries each candidates leadership potential. There are several simulated exercises such as, The in basket Leadership group discussions Management games Individual presentations Objective tests The interview

Selection Process in BOC

BOC recruits candidates for following vacancies only and it does not hire people for various positions like a private sector bank. Staff Assistants (Clerical) Management Trainees IT Personal Minor Staff Employees Positions like Chief Financial Officer, Chief Risk Officer

Staff Assistants/Management Trainees BOC used following methods in selection of staff assistants to perform normal banking activities. BOC called applications from applicants with appropriate qualification and those who possess the minimum qualification will be required to sit for a written examination where they test the IQ skill, English, Mathematics, etc. However, depends the on the position called, the complexity and of the paper will change (staff assistants get a less complex paper). This examination is conducted by Department of Examination (DOE) and they set the paper based on the bank requirement. Later DOE mark the papers and send the list of candidates with the highest marks. Then there will be an interview and the interview panel consists of Deputy General Manager, Assistant General Manager and a Chief Manager. It is a mixed interview and more like a interactive session just to understand that the candidate has right attitudes, soft skills, etc. BOC then shot list the candidates and request them to produce a police certificate and once they produce the police certificate then they are required under go through a medical test. Once they produce those certificates they will be hired by bank.
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IT Personal/ Minor Staff Employees/ Positions like Chief Financial Officer, Chief Risk Officer When recruiting for above positions, bank use application evaluation and interview method. However, depend on the position, the panel gets changed. For example, when CFO is interviewing even General Manager will be in the interview panel. It will be mostly unstructured interview and there will be a second interview from the Board of Directors as well. BOC will do a background check from former employer of the candidate.

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3.0 Hiring
Opatha (2009) defined hiring as the process of appointing the candidate selected to the post/job which is vacant. After the selection process, the job candidate will be an Appointee, where as he/she become a New Employee after hiring only. Figure 4 shows the process as described by Opatha (2009).

Before Recruitment

At Recruitment Job applicant

At Selection

After Selection

At Hiring

Job seeker

Job candidate

Appointee

New Employee

Figure 4

Source: Opatha, H. H.D.N.P (2009). Human Resource Management, p306

Hiring Process Opatha (2009) described following (figure 4) hiring process though many organizations do not follow the exact flow.

Figure 5

Source: Opatha, H. H.D.N.P (2009). Human Resource Management, 307

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Preparation of appointment letter This is a formal letter sent by the organization to the appointee and this include following details such as date of appointment, job title, rewards, probationary period, terms and conditions, person to report, etc.

Notification to appointee The HR department should formerly notify the appointee that has been selected and appointment letter will convey the information needed by the appointee. Usually this sends by registered post or courier and appointee has the option to get clarify the doubts they have. The letter of appointment has a deadline where appointee has to accept the appointment.

Follow Up After sent the appointment letter, HR department has to closely monitor it and get ready to accept the new employee if he accepted it. HR department may need to contact the division where he/she going to work and inform them too and has to provide facilities such as computers, desk, chairs, etc. etc.

Entering in to the contract of employment Once the appointee accepts the appointment and formal employment contract will be sign between appointee and employer and appointee becomes an employee of the organization.

However, there could be a situation after sending the appointment letter, an appointee may be not willing to accept the job and HR department has to pick another one from the waiting list, the next best person and has to follow the same process.

In Sri Lanka, most organization issues a letter of offer first and request appointee to come on a specific date and accept the appointment letter.

Probationary Period In some organizations, employees not directly appointed as real permanent employees and instead they will be treated as probationary employees. A real permanent employee is an employee who has confirmed on the post. During probationary period, the new employee has

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to prove that he is capable of doing the job and during probation employer has the right to terminate the employment contract without any reasoning.

Principal of managing probationers Evaluate job performances Performance appraisal has to be done at least one time before making any decision (either confirmation or termination). There should be a objective performance evaluation scheme.

Inform progress to the probationer Employer should always give the feed back to the employee reading his performances specially weakness as he could have a chance to work on it to minimize the weakness.

Give confirmation if job performance is good At the end of the probation period, if he/she performance is good/excellent and if he full fill other requirement stipulated by the employer, confirmation must be given.

Extension of probationary period At the end of the probation period if the employees performance is not up to the standard, if possible another chance should be given to improve. Even, after the extension if his performances are not good, employer has no option other than terminate his employment.

Inform the probationer about performance review/violation of discipline in writing Always employer must give performance review, warnings in writing to avoid future denial by the probationer.

Hiring Process in BOC

In BOC, once selected, send a letter of offer to appointees and request to present at HR department on a specific date. As when appointee reported employment agreement signed between appointee and BOC. Appointees are given a time to read and understand the employment contract and a copy is given once signed. There is no formal letter of appointment and all information is in the employment contract. All employees except special positions like CFO, Consultant must go two years probationary period and after two years period they are confirmed to the permanent carder if they full fill the condition in the
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employment contract. For example, a management trainee to be confirmed, they have to complete the Certificate of Banking and Finance (CBF) which is conducted by Institute of baker of Sri Lanka (IBSL). Though bank evaluate the performance of new employees through performance potential appraisal, for confirmation mere submission of the appraisal will be sufficient together with moderate evaluated marks of 3 or above.

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4.0

Employee Induction

Opatha (2009) said after hiring new employees to the organization it should be done that they are made understood with regard to organizational philosophies, goals and objectives, policies, procedures, rules and regulation and practices. The new employees to be oriented so they are feel more comfortable in work place. Opatha (2009) further, defined induction as systematically and formally introduces new employees to the organization, the job, the work groups to which they will belong and the work environment where they will work. Dessler (2004) stated why orientation important and stated employee orientation provides new employees with the basic background information required to perform their job satisfactorily, such as information about company rules, programs may range from brief, informal introduction to lengthy formal courses. Pattanayak (2006) defined orientation as process of acquainting the new employees with the existing culture and practice of the new organization Opatha (2009) stated benefits of induction as describe in Figure 6

Figure 6

Source: Opatha, H. H.D.N.P (2009). Human Resource Management, p334

Building Confidence Job performances highly depend on confidence and induction help to boost the confidence and new employee might feel comfortable about computer systems, his job security, growth etc.
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Low waste and accidents Induction helps to reduce the wastage and due to familiarity and industry accidents might reduce.

Reduce cultural shock This mainly applied to expatriates where they could expose to different culture where alien to them. They might struggle to cope up with the values and standard of the new country and induction help to minimize the cultural shock.

Reduce start up cost When there is common induction is done, most will be able to perform from the very first day onwards. It saves the time and cost of the department, where employee reported and minimizes the repetition of introduction.

Speeding up socialization Some job need to work as a team and induction help to get socialize with the exiting tem members and new member will start to perform straight away.

Induction Process Induction is a well organized process and Opatha (2010) defined three sub processes and Figure 6 shows them.
Prepaeration Conduct
Figure 7

Evaluation

Source: Opatha, H. H.D.N.P (2009). Human Resource Management, p335

Preparation The HR department should ready to welcome employee and there should be an induction program crafted and the relevant department where employee supposed to work should be notified about the arrival. Induction should give the impression that new employees are a part of the family now. In preparation, HR department should decide followings 1. About what information a basic understanding should be given? 2. Who should give the information?
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3. How to give the information? 4. Within what period of time should the information be given? 5. Where should the information given?

Conduct Conducting the induction program in a professional manner is important and it has to be interactive. This may be performed by initially general manager or CEO. Further, sufficient supervision is needed during the implementation to achieve the objectives.

Evaluation Evaluation of the induction program is also important. The evaluation should be taken from new employees as well as other existing employees who participated in the induction program. Basically here organization tries to get the feedback regarding the induction program.

Opatha (2009) defined principal of employee induction and they are in simple general rules should follow by manager in formulating and implementing a system of employee induction.

1. Meeting of business needs 2. Customer focus 3. Involvement of senior management 4. Direct relevant information 5. Higher involvement of the immediate superior/manager in induction 6. Concern of the human side of induction 7. Gradual introduction

Pattanayak (2006) identified 3 orientation processes for new employees.

General Orientation Here the basic objective is to make the employee feel comfort and make him motivated to go through the orientation process seriously for a better adaptability of the organization. This may about the history of the organization, business goals and processes etc.

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Departmental Orientation Here, new employee is oriented to his department where he is going to work. This may be about his role, responsibility and departmental operating practices, etc.

Specific Job Orientation Here specific assignments with job description may be given to new employee. New employee need to get adapted to new methodology of the particular job.

Induction Process in BOC

In BOC, when they hired staff assistant or management trainees, there is an induction program which is conducted by Central Training Institute (CTI) of BOC. Usually when hiring BOC hires at least 500 staff assistants and CTI conducted induction in groups of 50 employees. The resource persons will be from the bank and they are given a brief introduction about rules, regulations, system and procedures. After the induction, new employees are straight away put to branches where they will get on the job training. CTI of bank doing a considerable on structuring the induction program and it have a main focus on the branch operations.

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4.0

Pay Management

Opatha (2009) defined pay management as a function that deals with development, implementation, and maintenance of a base pay system that is fair. Here base pay means basic wage or salary paid to the employee and it does not consists of allowances or other payments. According to Dessler (2004), employee compensation refers to all forms of pay or reward going to employees and arising from their employment. It has to main components and they are; Direct Financial Payments Indirect Financial Payments

Pay in the form of wages, salaries, incentives, Pay in the form of financial benefits such as commissions and bonuses. insurance, employee share option schemes (ESOPS) Pattanayak (2006) said compensation is what employee receives in exchange for their contribution to the organization. Compensation management helps to the organization obtain, maintain and retain a productive workforce.

Equity issue in pay management This refers how much a pay is reasonable and it has four dimensions. A reasonable pay will cover all aspects of equities.

Figure 8

Source: Opatha, H. H.D.N.P (2009). Human Resource Management, 573

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Primary Equity This is to degree to which a pay is capable of meeting primary needs of the employee. Primary needs/physiological needs such as hunger food, water, shelter, etc. is coming under this. Every organization should be able to pay a salary at least matching with cost of living.

Internal Equity This is within the organization scenario and there should be equal pay for equal employees. Unequal pay should exist for unequal jobs. However, inequality of pays must be equal to inequality of the jobs.

External Equality This refers to degree to which pay received by an employee in an organization is related to pay received by similar employee in other organization. Further, you could relates this to industry average if you want.

Input Equality This is degree to which pay received by a employee in an organization is relates to his inputs used to perform the duties of the job. Usually employees contribute to an organization by putting their physical, mental, time, energy and payment should be able to compensate these efforts.

Pattanayak (2006) sated objective of compensation management as follows. Acquire qualified personnel Retain present employee Ensure equity Reward desired behavior Control costs Comply with legal regulation Facilitate understanding Further administrative efficiency

In addition, Dessler (2004) defined determinants of pay rates which could further shape up a pay of an employee.

Legal consideration in compensation Minimum wage rates imposed by governments, minimum number of working hours per week will determine the pay rate.
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Union Influences The bargaining power of trade union has s huge impact on pay rates hen decide by organizations.

Corporate policies and Competitive strategies In many cases the firm strategic focus will shape up the pay rates. For example when a company has an aggressive growth strategy they may need to keep the best people in the industry and may pay more.

Consequences of pay dissatisfaction There are negative consequences of improper pay management and it has a greater effect on employee as well as towards the organization. Employee dissatisfaction Higher labour turnover High absenteeism Union strikes Less efficient/lower performance Mental stress

Pay Management Process To avoid above adverse scenarios, a company need a sound pay management process and Opatha (2010) suggested following framework.

Figure 9 Source: Opatha, H. H.D.N.P (2009). Human Resource Management, p576

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Human Resource Management (MBA 537)

Job evaluation This to find out jobs relative worth. Its a systematic comparison of jobs to examine the worth of one job to another and later determine the pay gaps. In normal circumstances job need more qualification, has more responsibility and complex in nature needs more salary. Gray Dessler (2004) defined following job ranking method could be used in job evaluation. Ranking Job classification/ Job grading Point method Computerized job evaluation (CAJE software Computer Aided Job Evaluation)

Pay survey Pay survey is a type of research which involves date gartering and analysis of salaries, pay rates being paid to similar or competitive organizations employees who are doing similar jobs. This exercise could be done to ensure external equity of pay management.

Job pricing After, job evaluating and ranking in terms of their value to the organization, the process of assigning pays to this hierarchy of jobs is referred as job pricing. Adjustment of individual pay After pay and pay ranges are determined, the amount to be paid for each employee is determined by few factors such as sonority, merit difference among individuals or mixture of it.

Monitor and update pay system Pay management is a continuous process and constant feedback will help to fine tune the system.

New trends in pay management Gray Dessler (2004) described several contemporary pay management tools.

Skill Based Pay Here company pays employees range, depth, and type of skill and knowledge rather than for the job title. As more companies work on team based approach, employees required to rotate
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among different jobs and are expected to have multiple skills. Also, demarcation of jobs has become difficult and we seen many overlapping of jobs. These factors promote organization to think about alternative pay management scheme which is more realistic in present context.

Broadbanding Here companies develop pay plans that consist of multiple classes or grades, each within its own vertical rate range.

Pay management process in BOC In BOC salaries are fixed for grades and every three years a salary revision is there and trade union bargain up to chief manager levels. For consultant, salary is determined by the time of offering the employment. The BOC employee gross salary has two major components, the basic salary and cost of living allowance. The cost of living component is common

irrespective of the grade and the grade difference is reflected through the basic salary component. The salary of a BOC employee is comparatively low with a private bank employee. However, employees get indirect financial benefits like comprehensive medical reimbursement schemes, low interest loans. In BOC pay management, we can see primary equity and internal equity is there. But sometimes we dont see input equity in pay system. People who do risk transaction and people who do non-risky get the same salary. In addition, pay is equal irrespective of the work load. Further, some see an external inequality in the pay system of BOC. In BOC sometime we have seen people with good qualification work for the same salary like who do not posses qualification. So, person with good qualification might see a pay gap between him and another employee with same qualification in another bank. We have seen some of the qualified employees are not happy with the existing salary.

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5.0

Training and Development

Opatha (2009) defined training and development as formal process of changing employee behavior and motivation in then way that will enhance employee job performance and then organizational overall performance. Training and development helps to enhance the employee capabilities so then his current job performances as well as future performances will be improve. According to Dessler (2004), training refers to the methods used to give new or present employees the skills they need to perform their jobs Pattanayak (2006) defined training as planned programs designed to improve performance and to bring about measurable changes in knowledge, skills, attitude and social behavior of employees for doing a particular job There is a significant difference between training and development and they are as follows.

Training It is a program Focus is organization

Development It is a ongoing process Focus is employee

Concentrates on short term needs of the Looks after long term goals of the organization Often takes place in groups Easy to quantify outcome organization. Mostly one to one Difficult to quantify the outcome

Purpose of training and development Creating a pool of replacements to meet any future turnover of employees Enhance the company ability to adopt and use advances in technology Building more efficient, effective and highly motivated team Ensuring adequate human resource available for future expansion

Learning Learning is the process of acquiring Knowledge, Skills and Attitudes and it helps to create a relative permanent change in learners behavior. There should be a significant positive difference between learners previous state (before learning) and present state (after learning) for learning to be effective. Further, employees performance is function of motivation and ability). Ability could be improved by training.
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Employee Performance = f(motivation, ability)

Further, training and development fills the gap between job demand and employees capability of deficiency. In many cases, most employees has this gap and every organization should try to fill this gap hence it will increase the contribution of the employee towards the organization. Learning curve has become a very important factor in training as the success of the training determine by the learning curve as well. Learning curve indicates speed of learning of individuals. According to Hodgetts (1985) there are 3 aspects of learning curve. Each employee has its own learning curve. Negatively Accelerated Learning Curve Though learning increase, it is increasing in a diminishing rate. Here learners motivation to learn get reduces over the period. Positively Accelerated Learning Curve Here learning increase and it is increasing in a increasing rate. Learner get motivated the more and more he learns. Skill Acquisition Learning Curve Here learners motivation gets reduced to some point and there is period though time pass he does not absorb anything. Later his motivation gets increase and learning happens at an increasing rate. This is the most common curve in reality. A trainer must have two goals when shaping an employees learning curve. 1. Each trainees learning curve should touch the satisfactory level of performance 2. To reach the satisfactory level of learning curve as quickly as possible

Guidelines to be followed when crafting a successful training program By following these guidelines, a training program could be more effective hence will help to reach the satisfactory level of learning.
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Participation Reception Relevance Transference

Feedback Practice Motivation Reinforcement

Intensity Follow-up

Further, Dessler (2004), defined three things to improve learning and they are 1. Make learning meaningful 2. Make skill transfer easy 3. Motivate the learner

Opatha (2009) stated 7 competencies which could be developed as shown in figure 10. However, Dessler (2004) defined competences as demonstrable characteristics of a person that enable performance of a job. It is believe all theses competences will help employee to perform his job more effectively and efficiently.

Figure 10

Source: Opatha, H. H.D.N.P (2009). Human Resource Management, p504

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Systematic Training Process Opatha (2010) defined a systematic training process as describe in Figure 9. Identify training needs This could be identified through performance

evaluation, discussion with the employee, observation, due to customer complaint, etc. Task analysis for new employees Performance analysis for existing employees Prioritize training needs Here you have to find out which the most significant training need of the organization or which area is needed to be improved. This may be done by a committee based on the business needs and budget available. Can use Nominal Group Technique (NGT) method. Establishing training objective What is the expected change in the trainees behavior after training? Determining training evaluation criteria These are the factors of identifying success of the training program. Derived from training objectives. Make other related training decision Here organization has to decide when, where training is going to be held and other logistics necessary and method of training.

Implementation Carrying out the training program as planned. Evaluation success of the training Here we evaluate the success of the training program as Figure 11 Source: Opatha, H. H.D.N.P (2009). Human Resource Management, p474
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well as the trainer. This could be effectiveness and efficiency of the training program.

Human Resource Management (MBA 537)

Traditional training methods available On the job training Apprenticeship training Lecture method Business games Action learning Programmed learning Case studies In basket training Computer based training

Training & development process in BOC BOC has a separate Training Department under HR division headed by a Assistant General Manager (Training) and BOC has a Central Training Institute at Maharagama has well. BOC send employees who are confirmed in the service for foreign and local training. Basically in respect of foreign training respective Assistant General Manager can nominate the employee who should send for training and many treat this practice as highly subjective. BOC has performance appraisal method and it too had a section for training and development. However, when deciding training requirement, bank give less priority for this. However, BOC allocates a considerable amount for training and development annually and training decided based on the budget in many cases. In respect of foreign training, employee also consider it as way of going abroad and sometimes the content of the training programs were questioned by the participant themselves. Many training programs are conducted in Central Training Institute at Maharagama and it covers mostly internal bank operations where as resources persons are the bank staff itself.

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6.0

Conclusion

BOC has identified that HRM is no longer a function of the bank and it has become a strategic tool of achieving organizational objective. However, as 72 year old bank with a long history, it still carries the legacy of old bureaucracy and ted tapes. Further, the strong trade union forced BOC to refrain using best practices in HR. BOC had shown greater transparency some aspect in HR function where as some areas to be changed fundamentally. Further, being a state bank BOC has some restrictions to use the best practices in HR. However, BOC still suffering of from lack of HRM skill and to fill that gap, BOC recruited several HR consultants time to time. Further, the over 9000 staff also is huge in numbers and the dispersion of branches put bank in tremendous pressure as all 9000 staff has different aspiration. In contemporary dynamic world, if bank to perform well it need capital in cash form as well as human capital. The human capital is capable of delivering the service to its customers and the growth of the bank is depending how good we treat our customer. It is a known truth that to satisfy the external customer we should satisfy our internal customers, i.e. employees. Sound HRM system will help bank to keep the employee happy as well as get the required service in effective and efficient manner.

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References

Bank of Ceylon Annual Reports from 2000 to 2010 Cole, G.A., (2002). Personnel and Human Resource Management: Gary, D (2004). Human Resource Management: Pearson Education (Singapore) Ltd., India Opatha, H. H.D.N.P (2009). Human Resource Management: Personal Department of HRM, University of Sri Jayawardenapura, Sri Lanka. Pattanayak, B (2006). Human Resource Management: Prentice Hall of India (Pvt.) Ltd., New Delhi Scott, S & George, B (2007), Human Resource Management: Thomson Higher Education, 5191 Natorp Boulevard, Mason, OH 45040, USA

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