snehal project 2

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A

PROJECT

on

A Critical Analysis Study Of Training And Development In StateBank Of India

A PROJECT SUBMITTED IN PARTIAL FULFILMENT

For

THE DEGREE OF BACHELOR OF BUSINESS

ADMINISTRATION IN RASHTRASANT TUKDOJI MAHARAJ

NAGPUR UNIVESITY, NAGPUR

SPECIALIZATION IN

HUMAN RESOURCE MANAGEMENT

SUBMITTED BY

Miss. Snehal K. Lokhande

UNDER THE GUIDANCE OFMr. Ajinkya G. Deshpande

R. S. MUNDLE DHARAMPETH ARTS & COMMERCECOLLEGE, NAGPUR

Department of BBA & BCCA

2011- 12

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R. S. Mundle Dharampeth Arts & Commerce College,

Nagpur

ACKNOWLEDGEMENT

It is my pleasure to complete the project A Critical

Analysis Study Of Training And Development In State Bankof India for the requirement of BBA III, RTM Nagpur

University, Nagpur.

I am also very thankful to Mr. Ajinkya G. Deshpande for

their kind support and guidance.

I am also very thankful to all the teaching and non teaching

staff for their kind cooperation and support.

Thanking you

Place: - Nagpur

Date:-

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Nagpur

DECLARATION

I hereby declare that this project titledA Critical Analysis

Study Of Training And Development In State Bank Of India

is the work done by me under the guidance of Mr. Ajinkya G.

Deshpande, during the academic session 2011- 12.

The work presented here is not duplicated from any other

source and not submitted earlier for the award of any Degree/

Diploma to any other University.

Snehal K. Lokhande

Place: - Nagpur

Date:-

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Nagpur

CERTIFICATE

This is to certify that this project A Critical Analysis Study

Of Training And Development In State Bank Of India is the

work carried out and development by Miss. Snehal K. Lokhandein the partial fulfillment for the award of the Degree of Bachelor of

Business Administration during the academic session 2011- 12

submitted to RTM Nagpur University under my guidance and

supervision.

To the best of my knowledge the matter presented in this

project report has not been submitted earlier for any Degree/

Diploma to any other University.

Dr. Sandhya Nair Mr. Ajinkya G. Deshpande

Principal Project Guide

Internal Examiner External Examiner

Date:

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INDEX

5

Sr. No. Particular Page no

1 Introduction 1- 13

2 Research Methodology

a)Primary data

b)Secondary data

c)Limitations of Study

d)Objective of the Study

e)Hypothesis

14- 18

3 Company Profile 19- 48

4 Data Collection and analysis 49- 58

5 Finding and conclusion 59-

6 Suggestion 60

7 Appendix

a)Questionnaire

b)Bibliography

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CHAPTER 1

INTRODUCTION

TRAINING ANG DEVELOPMENT

Training and development plays a vital role in translating management

philosophy in to reality. Training can be used as effective tool to obtain the desired

results and proper training at all level in the organization can greatly enhance the

productivity level. An organization with well-defined training programs creates a

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positive work environment where there is a systematic learning and application in work

place. Lack of training at appropriate time can be major deterrent and de-motivating

factors for the employees.

The aim of this project is to Check the effectiveness of the training function at

Radisson Hotel. The project also aims how to identify the training needs of the

employees, which would be immensely useful for identifying the training programs,

which were needed by the employees. As the project also studies the effectiveness of

training and perception of employees on training, it acts as effective tool for achieving

the desired goals efficiently.

You are a DIY person and you want to find out everything about starting and

operating a business. There are so many resources out there and you are overwhelmed

by the amount of information you need to absorb. Besides, which sources are reliable?

After you swim through a sea of useful tips, how do you put them into action?

The quality of employees and their development through training and education

are major factors in determining long-term profitability of a small business. If you hire

and keep good employees, it is good policy to invest in the development of their skills,

so they can increase their productivity.

Training often is considered for new employees only. This is a mistake because

ongoing training for current employees helps them adjust to rapidly changing job

requirements. We offer seminars and workshops to help you start, or improve your

business operations. We focus on issues that impact small business operators from high

level business plan writing to daily operational issues such as customer retention.

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Attendance is limited to 10 15 people each. Employee training workshops are also

offered.

The model below traces the steps necessary in the training process:

Organizational Objectives

Needs Assessment

Is There a Gap?

Training Objectives

Select the Trainees

Select the Training Methods and Mode

Choose a Means of Evaluating

Administer Training

Evaluate the Training

Every organization needs to have well-trained and experienced people to

perform the activities that have to be done. So it is necessary to raise skill levels and

increase the versatility and adaptability of employees. Inadequate job performance or a

decline in productivity or changes resulting out of job redesigning or a technological

break-through require some type of training and development efforts. As jobs become

more complex, the importance of employee development also increases. In a rapidly

changing society, employee training and development is not only an activity that is

desirable but also an activity that an organization must commit resources to if it is

maintain a viable and knowledgeable workforce.

Training is a process of learning a sequence of programmed behavior. It is

application of knowledge. It gives people an awareness of the rules and procedures to

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guide their behavior. It attempts to improve their performance on the current job or

prepare them for an intended job. Development is the related process. It covers not only

those activities, which improve job performance, but also those, which bring about

growth of the personality; help individuals in the progress towards maturity and

actualization of their potential capacities so that they become not only good employees

but also better men and women. Training a person for a bigger and higher job is

development.

Human Resource Management (HRM), a relatively new term, that emerged

during the 1930s. Many people used to refer it before by its traditional titles, such as

Personnel Administration or Personnel Management. But now, the trend is changing. It

is now termed as Human Resource Management (HRM). Human Resource

Management is a management function that helps an organization select, recruit, train

and develops.

Scope of HRM without a doubt is vast. All the activities of employee, from the

time of his entry into an organization until he leaves, come under the horizon of HRM.

The divisions included in HRM are Recruitment, Payroll, Performance Management,

Training and Development, Retention, Industrial Relation, etc. Out of all these

divisions, one such important division is training and development. Training and

development is a subsystem of an organization. It ensures that randomness is reduced

and learning or behavioral change takes place in structured format.

TRADITIONAL AND MODERN APPROACH OF TRAINING AND

DEVLOPMENT

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Traditional Approach Most of the organizations before never used to believe in

training. They were holding the traditional view that managers are born and not made.

There were also some views that training is a very costly affair and not worth.

Organizations used to believe more in executive pinching. But now the scenario seems

to be changing.

The Modern approach of training and development is that Indian Organizations have

realized the importance of corporate training. Training is now considered as more of

retention tool than a cost. The training system in Indian Industry has been changed to

create a smarter workforce and yield the best results

TRAINING DEFINED

It is a learning process that involves the acquisition of knowledge, sharpening of skills,

concepts, rules, or changing of attitudes and behaviors to enhance the performance of

employees.

Training is activity leading to skilled behavior.

Its not what you want in life, but it knows how to reach it

Its not where you want to go, but it knows how to get there

Its not how high you want to rise, but it knows how to take off

It may not be quite the outcome you were aiming for, but it will be an outcome

Its not what you dream of doing, but its having the knowledge to do it

It's not a set of goals, but its more like a vision

Its not the goal you set, but its what you need to achieve it

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Training is about knowing where you stand (no matter how good or bad the current

situation looks) at present, and where you will be after some point of time. Training is

about the acquisition of knowledge, skills, and abilities (KSA) through professional

development.

IMPORTANCE OF TRAINING AND DEVELOPMENT

Optimum Utilization of Human Resources Training and Development helps in

optimizing the utilization of human resource that further helps the employee to achieve

the organizational goals as well as their individual goals.

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Development of Human Resources Training and Development helps to provide an

opportunity and broad structure for the development of human resources technical and

behavioral skills in an organization. It also helps the employees in attaining personal

growth.

Development of skills of employees Training and Development helps in increasing

the job knowledge and skills of employees at each level. It helps to expand the horizons

of human intellect and an overall personality of the employees.

Productivity Training and Development helps in increasing the productivity of the

employees that helps the organization further to achieve its long-term goal.

Team spirit Training and Development helps in inculcating the sense of team

work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn

within the employees.

Organization Culture Training and Development helps to develop and improve

the organizational health culture and effectiveness. It helps in creating the learning

culture within the organization.

Organization Climate Training and Development helps building the positive

perception and feeling about the organization. The employees get these feelings from

leaders, subordinates, and peers.

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Quality Training and Development helps in improving upon the quality of work

and work-life.

Healthy work-environment Training and Development helps in creating the

healthy working environment. It helps to build good employee, relationship so that

individual goals aligns with organizational goal.

Health and Safety Training and Development helps in improving the health and

safety of the organization thus preventing obsolescence.

Morale Training and Development helps in improving the morale of the work

force.

Image Training and Development helps in creating a better corporate image.

Profitability Training and Development leads to improved profitability and more

positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e. Organization

gets more effective decision making and problem solving. It helps in understanding and

carrying out organizational policies

Training and Development helps in developing leadership skills, motivation,

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loyalty, better attitudes, and other aspects that successful workers and managers usually

display.

TRAINING AND DEVELOPMENT OBJECTIVES

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The principal objective of training and development division is to make sure the

availability of a skilled and willing workforce to an organization. In addition to that,

there are four other objectives: Individual, Organizational, Functional, and Societal.

Individual Objectives help employees in achieving their personal goals, which in

turn, enhances the individual contribution to an organization.

Organizational Objectives assist the organization with its primary objective by

bringing individual effectiveness.

Functional Objectives maintain the departments contribution at a level suitable to

the organizations needs.

Societal Objectives ensure that an organization is ethically and socially responsible

to the needs and challenges of the society.

IMPORTANCE OF TRAINING OBJECTIVES

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Training objective is one of the most important parts of training program. While

some people think of training objective as a waste of valuable time. The

counterargument here is that resources are always limited and the training objectives

actually lead the design of training. It provides the clear guidelines and develops the

training program in less time because objectives focus specifically on needs. It helps in

adhering to a plan. Training objectives tell the trainee that what is expected out of him

at the end of the training program. Training objectives are of great significance from a

number of stakeholder perspectives:

1. Trainer

2. Trainee

3. Designer

4. Evalua

Trainer

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The training objective is also beneficial to trainer because it helps the trainer to

measure the progress of trainees and make the required adjustments. Also, trainer

comes in a position to establish a relationship between objectives and particular

segments of training.

Trainee

The training objective is beneficial to the trainee because it helps in reducing the

anxiety of the trainee up to some extent. Not knowing anything or going to a place

which is unknown creates anxiety that can negatively affect learning. Therefore, it is

important to keep the participants aware of the happenings, rather than keeping it

surprise.

Secondly, it helps in increase in concentration, which is the crucial factor to

make the training successful. The objectives create an image of the training program in

trainees mind that actually helps in gaining attention. Thirdly, if the goal is set to be

challenging and motivating, then the likelihood of achieving those goals is much higher

than the situation in which no goal is set. Therefore, training objectives helps in

increasing the probability that the participants will be successful in training.

Designer

The training objective is beneficial to the training designer because if the

designer is aware what is to be achieved in the end then hell buy the training package

according to that only. The training designer would then look for the training methods,

training equipments, and training content accordingly to achieve those objectives.

Furthermore, planning always helps in dealing effectively in an unexpected situation.

Consider an example; the objective of one training program is to deal effectively with

customers to increase the sales. Since the objective is known, the designer will design a

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training program that will include ways to improve the interpersonal skills, such as

verbal and non verbal language, dealing in unexpected situation i.e. when there is a

defect in a product or when a customer is angry. Therefore, without any guidance, the

training may not be designed appropriately.

Evaluator

It becomes easy for the training evaluator to measure the progress of the trainees

because the objectives define the expected performance of trainees. Training objective

is an important to tool to judge the performance of participants

Distinction between Training and Development

Training:

It is a short term process

It utilizes systematic and organized procedure

Managerial personnel acquire Skill of training sub-ordinates.

Non Managerial personnel acquire technical skill and knowledge for a definite

purpose

It is primarily related with the job and technical skill learning

Development:

It is a long term process

It too utilizes systematic and organized procedures

Managerial personnel get conceptual and theoretical knowledge and skill or

managing. It is rarely used.

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Non-Managerial personnel acquire technical skill and knowledge for a long-term

purpose.

It is mainly useful for long-term management development process.

Typical Reasons for Employee Training and Development

Training and development can be initiated for a variety of reasons for an employee or

group of employees, e.g.:

a.) When a performance appraisal indicates performance improvement is needed

b.) To "benchmark" the status of improvement so far in a performance improvement

effort

c.) As part of an overall professional development program

d.) As part of succession planning to help an employee be eligible for a planned

change in role in the organization

e.) To "pilot", or test, the operation of a new performance management system

f.) To train about a specific topic

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CHAPTER 2

RESEARCH

METHODOLOGY

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Research methodology

This report is based on primary as well as secondary data, however primary data

collection was given more importance since it is overhearing factor in attitude studies.

One of the most important users of research methodology is that it helps in

identifying the problem, collecting, and analyzing the required information data and

providing an alternative solution to the problem. It also helps in collecting the vital

information that is required by the top management to assist them for the better

decision making both day to day decision and critical ones.

Primary Data

Questionnaire and Interviews of 50 executives

Observation

Secondary Data

Referring broachers and papers

Referring Office Files and Records

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SAMPLE SIZE

The students are highly benefited as the purpose if this research is to get

acquainted with the practical side of training and development Research. This research

not only gives theoretical / practical aspects of the subject but also gives a chance for

application and testing of the theoretical study on the real work Situation. The student

got the lessons of experience by meeting various section of people conducting onInterview knowing opinion of people Tabulating interpreting and analyzing the data

collected and this will help the researcher in future for career building. The suggestions

that were given by the employees are great it help to bank to look the real drawback of

the product. The study is restricted to Nagpur city.

TOOLS OF ANALYSIS

To know the response. I have used the questionnaire method in sampling survey.

If one wishes to find what people think or know, the logical procedure is to ask them.

This has led subject researchers to use the questionnaire technique for collecting data

more than any other methods. In this method questionnaire were distributed to the

respondents and they were ask to questions in the questionnaire. The questionnaire

were structured non- disguised because the questions, which the questionnaire

contained, were arranged in a specific order besides every question asked was logical

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for the study; no questionnaire can be termed as irreverent. The questionnaire was non-

disguised because the questionnaire was constructed so that the objective is clear to the

respondent. The respondents are aware of the objectives. They knew why they were

asked to fill the questionnaire.

DATA COLLECTION

Source of data for this project primary and secondary. In reference to thetheoretical concept as well s for information are collected through secondary sources.

From paper, published material i.e. news paper, journal and magazine and from printed

electronic media i.e. Internet website.

LIMITATION OF THE STUDY

There are certain limitations that cannot be ruled out after taking all possible

precautions. These are as mentioned below:

The sample chosen doesnt fully represent the total workforce.

There are naturally many misunderstandings and inaccuracies between the

respondents and interviews, editing error, etc.

Some of them needed help in answering the questionnaire since they found

difficulty in understanding the literal meaning of the questions. Which I had to

explain and get it filled.

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Time constraint was there as we had to cover the whole project within stipulated

time-frame.

OBJECTIVES

To study the result of existing training and development programmed in

State Bank of India.

Secondary data

On the job training is more important in the efficiency development in

SBI.

Off- the job training is more beneficial to SBI to improve its

organizational development.

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HYPOTHESIS

1. Both the training programs i.e. on the job and off the job have equal importance

in SBI. On the job training aids to resolve the daily functional problems at the

working place it.

2. The Institutional training programmer helps to brings latest awareness among its

work force.

3. The efficiency of the employees increases due to training programmer.

4. The number of complaints reduced due to a proper training programmer.

5. Training and development reduces absenteeism and labour turnover.

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CHAPTER 3

COMPANY PROFILE

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PROFILE OF THE ORGANIZATION TABULATION AND

DEFINITION OF BASIS TERM

HISTORY OF SBI:-

The origin of the State Bank of India goes back to the first decade of the nineteenth

century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.

Three years later the bank received its charter and was re-designed as the Bank of

Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of

British India sponsored by the Government of Bengal. The Bank of Bombay (15 April

1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three

banks remained at the apex of modern banking in India till their amalgamation as the

Imperial Bank of India on 27 January 1921.

Accordingly, SBI was formed as a state partnered and state sponsored bank. It took

over the imperial bank of the India. The former state-owned/state-associated banks

were integrated with it. The S.B.I. was formed under the state bank of India act 1955.

The S>B>I was established with the objective of taking banking to the interior and

remote parts of India.

Primarily Anglo-Indian creations, the three presidency banks came into existence either

as a result of the compulsions of imperial finance or by the felt needs of local European

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commerce and were not imposed from outside in an arbitrary manner to modernize

India's economy. Their evolution was, however, shaped by ideas culled from similar

developments in Europe and England, and was influenced by changes occurring in the

structure of both the local trading environment and those in the relations of the Indian

economy to the economy of Europe and the global economic framework.

The three banks were governed by royal charters, which were revised from time to

time. Each charter provided for a share capital, four-fifth of which were privately

subscribed and the rest owned by the provincial government. The members of the

board of directors, which managed the affairs of each bank, were mostly proprietary

directors representing the large European managing agency houses in India. The rest

were government nominees, invariably civil servants, one of whom was elected as the

president of the board.

Later under the state bank of India (subsidiary banks) act 1959 the former state

associated banks were taken over by the S.B.I. as its subsidiaries (currently designated

as associate banks)

The banks registered office is in Calcutta. The central office is in Mumbai. The central

accounts office is in Calcutta. In terms of SBI act, RBI should have a minimum of 55

% of the capital of the bank. (There are proposal to reduce the same). The Central

Office is now redesigned as Corporate Centre.

Presently there are 7 Associate banks

SBI has 7 international subsidiaries/ joint venture. (As at mar 2008). These are as

under:

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SUBSIDIARIES:

SBI European bank PLC (SEBAL) HQS; to access European common market, SEBAL

has been wound up in 2011. The existing branch set up in UK and Europe is considers

adequate to meet the needs of the customers.

SBI (Canada) Toronto, Canada.

SBI (California), Los Angeles

SB international LTD (Mauritius) (very recently, it has become the banks subsidiary;

earlier it was a joint venture company)

JOINT ventures:

Indo-Nigerian Merchant bank Ltd (Lagos), Nigeria.

Bank Bhutan

Nepal SBI Ltd, Nepal

SBI has 7 associate banks and one banking subsidiary SBI commercial and no. of

Indian non-banking subsidiaries (8):

SBI capital markets ltd (SBICAP)

SBI funds management LTD (SBIFML)

SBI home finance Ltd (Affiliate) it has made losses.

SBI factors and commercial services Pvt. Ltd (new name since 1.4.2001)

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SBI gilts Ltd (Engaged in buying /selling govt. securities; it is a primary dealer).

SBI securities Ltd. not an active company (referred to as shell company); since

merged with SBICAP.

SBI cards and payments services Pvt. Ltd,

SBI is the first public sector bank to issue fresh capital to the public and staff in Dec.

93/Jan 94 pursuant to narasimham committee recommendations. Recently, SBI has

floated its share in capital market in March, 2008 .The banks capital structure as at

31.03.01 is

A.C.Rs. 1000 Cr.P.C. Rs. 526Cr. Reserves & surplus Rs. 12935 Cr.

Also, the bank issued bonds to public and staff as well as rights shares to the existing

shareholders simultaneously. The SBI shares have since been dematerialized. The

present organizational structure:

The bank has a 4 tier structure- The central office is the bank's apex policy-making

body. The central office is now called corporate center. The management of the bank

vests with the central board consisting of a chairman & 2 managing directors and other

deputy directors. The term of office of a director is 3 years. At the local head office, a

local board is constituted. The board members elected by the local shareholders holding

together not less than 2.5% of the issued capital and others nominated by the

government in consultation with the RBI. Recently, SBI has adopted the new

restructuring in its Organization set up as recommended by McKinsey.

This move was taken purely to adopt modern technology to render efficient customer

service and to meet stiff competition raised by private/ foreign sector Banks.

Recruitment: SBI has its own set up /Boards for recruiting the staff. At present SBI has

more than 2, 50,000 staff members working in 13500 outlets of SBI and its associates.

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The recruitment is carried out once/twice in a year. The competitive exams constitute

written Examinations followed by Personal Interviews.

TRAINING AND DEVELOPMENT IN STATE BANK OF INDIA:

Somebody told that service gives opportunity to a person. Training makes them perfect.

Training is the starting point of development. In Mahabharata also the Arjun could

develop the perfect archery skill through the perfect training received from Guru

Dhronacharya. On scrutiny of Training policies of some major banks, we can make

following statement.

'Training in nationalized banks is a proactive, planned, and continuous Process as an

integral part of organizational development. It seeks to impart Knowledge, improve

skills and reorient attitudes for individual growth and Organizational effectiveness'.

The training in banks is classified in two groups:

a) Institutional Training

b) On the job training.

INSTITUTIONAL TRAINING:

The banks are having the Training Colleges and Centers at various places. -These

colleges well equipped with full technology, experienced Teaching staff and huge

knowledge based materials. These colleges cater the needs of in-house trainings. Some

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Colleges are also providing needs of banking knowledge to other banks. In SBI Staff

colleges at Gurgoan and Hyderabad are famous in providing in-house as well as

outsourcing trainings. These colleges hold several programs on banking related topics

and impart valuable knowledge to trainees. The expert trainers explain various topics

and discussed on several aspects of banking. Well equipped technology provides on

spot practical trainings to the participants. These equipments not only grow the

knowledge base of the Participants but also help the bank to adopt new restructuring' at

grar? Root levels based on modern technology.

In SBI, the bank could convert its Bank-master technology to Core Banking Solutions

successfully only due to availability of strong institutional training houses. Due to this

conversion, the customer in SBI branch becomes the customer of the bank. The bank

runs their R&D through these colleges. Various volumes on deposits, advances, IT,

Customer services are being published/ updated at these centers. For further convinces,

some banks are running their own sights through these colleges to bring in full

awareness/ transparency among their customers. The SBI has its own Internet Sight

viz. 'Online SBI'. These colleges not only fulfill their role to equip theirManpower withbetter knowledge but also ensuring smooth functioning of their branches, These

colleges are generally situated in outskirts of the cities. They impart knowledge and

also trying to bring in good discipline among the Participants. Game facility, good

food, scenery atmosphere augment the purpose of training effectively. The Participants

of various corners of the country with different regions/ languages gather together for

definite periods. This helps to build national integrity and the Participants canunderstand the banking situations at various places. The outgoing results are tested by

conducting on-line examination based on the knowledge gained by the Participants

during the course of training. In short the silent features of the institutional trainings

are as under:

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Well situated surroundings.

Periodic and topic wise training.

Expert Teaching Staff.

Fully equipped with modern technological facility.

Unlimited availability of study materials.

Good facility of food, game and hostel.

The Participant can devote their time to concentrate on their Study materials.

These centers also run the sights to provide full details of their banks products to

the general people.

These are playing very important role in human as well as Organizational

developments.

ON THE JOB TRAINING:

The banks like SBI also know the importance of the on the job training. Under this

system some experts from their training centers visited their branches. They provide on

the job training to the operating staff. This type of training not only gives on spot

solutions to their working staff but also ensuring smooth functioning of their

transactions at the grass root levels. The expert trainer moves from desk to desk to

solve day- to-day problems or he requests all staff members to gather together and

display his solutions on the Board/screen. This type of training is proved more

effective because of following reasons.

On the desk training facility.

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The on spot solution on day-to-day related problems.

This improves the customer service and ensuring reduction in pending work was due to

lack of adequate Knowledge in working staff.

It proved very effective in big banks like SBI, PNB etc.

Daily transactions become smother and their pilling up reduced significantly.

A time tested training program not only improves the skill of worker but also help to

strengthen organizational Commitments. In the big banks like SBI the both training

programs are having equal importance to fulfill their HRD Philosophy as mentioned

under.

'HRD in Nationalized Bank is a continuous movement and direction to enable every

individual as a member of an effective team and its banking community, to realize and

activate his potential so as to contribute to the achievement of Bank's goals and derive

maximum satisfaction thereof. These aspects can be fulfilled only on availability of

strong Training base in the bank.' These are the reasons due to which the big banks like

SBI could retain its premiership position even after the period of 20 decades.

ABOUT SBA GURGOAN

The State Bank Academy (SBA), formerly known as State Bank Staff College was set

up at Gurgaon, on the 18th November, 1982. It is a key institutional resource and is

recognized within the Indian Banking fraternity as a reputed centre for training middleand senior management officials of the State Bank group and other organizations in

India and abroad.

SBA MISSION

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"To be a professionally excellent, techno-saw centre for training and research,

facilitating overall development of customer-centric and market oriented professional

managers and providing research-based support in strategy formulation for

achievement of corporate goals."

PROGRAMMERS'

The programmers' at SB a Gurgaon have attained a steady - stream maturity over the

years. SB A has imparted training to over 19,000 managers during the past five years

(see table below). SBA's significant training throughput is testimony to its overarching

goal to offer an unparalleled service promise to its vast base of customers. SBA,

Gurgaon visualizes an unfolding opportunity in the use of new, technology enabled

training methods as a supplemental training medium. To this end, it has designed and

launched institution-wide e-learning programmer to be used by managers at various

branches of the bank. This endeavor is intended to deepen and lengthen the collective

training exposure of SBI managers. Technology today offers a hitherto unparalleled

cost effective training solution for an institution as large and as diversified in dispersed

locations as the State Bank of India. SBA delivers on SBI's promise of serving the

needs of savers in villages, small towns, cities and in every corner of India.

The State Bank Academy with its dedicated high bandwidth network will integrate

instructional excellence with contemporary contact curricula to take SBI's skill-

building and behavioral training programmers to new pinnacles of service delivery.

2005-06 2006-07 2007-08 2008-09 2009-10

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No. of

Programmers184 229 253 235 274

No. of

Participants6172 7725 8590 9880 10, 750

ROLE, TASKS & OBJECTIVES

In harmony with the Vision and Mission statements as well as the Bank's trainingphilosophy, thrust areas have been identified for the Academy. The State Bank

Academy will serve as a (n):-

I. Institution for advanced learning:

To provide state-of-the-art training in financial products to middle level and

senior level executives, and to re-equip them with contemporary skills and

reorient their attitudes in tune with market realities.

II. Internal Consultant/Change Agent:

To act as a catalyst for change in attitudes and orientation of banking staff and to

provide expertise and consultative support to the State Bank community and the

Corporate Office.

III. Feedback supplier:

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To capture and structure feedback from trainees and from the market on the

Bank's policy and business processes and to validate and transmit structured

feedback to the Corporate Office for use in the formulation of both policy and

strategy.

IV. Think Tank:

To provide expert and informed suggestions, model business strategies, analysis

of market developments from a Banker's perspective and to leverage its unique

position and capability as a repository of senior bankers' experience drawn from

their diverse exposure profile.

V. Research & Development Role:

To carry out research (by in-house faculty and research officers) on

contemporary subjects who are relevant to the Bank's short-term and medium-

term business and operational needs and policy formulation?

VI. Over viewing Staff Training Centers:

To liaise validate and closely monitor the Staff Training Centers in seven Circles

attached to the Academy so as to ensure the quality of inputs and the efficacy

and relevance of training provided at these Centers, as also to extend support in

the form of trainers' kits, reading material and other training aids.

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MAJOR ACTIVITIES OF THE ACADEMY

*Formulating of training curricula and pedagogical approaches.

* Administering training programmers covering Middle and Senior

Management Officials on Management Development, International Banking,

Credit Management and other major banking topics. For a complete listing of

programmers, please see "Training Streams" further on.

* Conduct research of operational relevance in banking related subjects. To geta complete listing of recent research titles, please refer to the section on

Research and Development.

LOCATION

State Bank Academy has its own sprawling premises in Sector 18, Gurgaon,

near the IFFCO crossing on the road

State Bank Academy,

Plot No 77,

Connecting NH-8 and the old Delhi-Gurgaon road,

About 17 Kms. from the domestic terminal of Indira Gandhi International

Airport and 29 kms.

From New Delhi Railway Station Sector 18, Gurgaon.

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FACULTY

SBA is managed by a Chief General Manager (Principal) and General Manager

(Vice Principal) and has a Faculty of 24 well trained officers (Chief Managersto Dy. General Managers) having rich operational experience in the State Bank

Group. The faculty are handpicked after a rigorous selection process and

trained before taking up instructional positions at the SBA. The Academy also

draws support from experienced senior executives of the Bank and

professionals from other institutions. To enhance their effectiveness, faculty

are regularly deputed to the various IIMs, XLRI Jamshedpur, NIBM Pune and

other premier management institutions in India to attend intensive functional

training and management development programmers.

TRAINING

Bank's Training Philosophy

"Training in State Bank is a proactive, planned and continuous process as an

integral part of organizational development. It seeks to impart knowledge,

improve skills and reorient attitudes for individual growth and organizational

effectiveness".

TRAINING STREAMS

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i) International Banking

* Export / Import Finance

* Advanced International Banking Programmed for BM /MODs; Branch

Inspectors & Trainers

* Forex Risk Management

* Forex Regulations-Compliance and Reporting to F.D.

* Programmed on Documentary Credits

* Foreign Currency Funding

* Programmed for Dealing Officers

ii) Credit Management

* Fundamentals of Credit Analysis

* Advanced Credit Appraisal

* Project Appraisal and Risk Analysis

* Corporate Business Marketing

* Financing Trade and Services

* Industry Specific Credit Programmer in areas such as education, hospitals,

construction.

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* Programme on post sanction Credit Processes.

*NPA Management.

* Trade Finance

* Programme on Derivatives

* Rehabilitation & Restructuring of Assets

* Role Specific programmes for AGMs & CMs of (CNW), CM (CSC),

Manager (Credit) of CNW, Manager (DBD) of RNW, Trainers and Branch

Inspectors.

iii) Human Resource Management

* Executive Development Programme

* Management Development Programme

* Programme for Probationary/Trainee Officers

* Programme on Preventive Vigilance

* Stress Management

* Integrated Leadership Development

* Programme on Communication Skills

* Role based programmers for Branch Managers, AGMs, Chief Managers

(GB), Concurrent Auditors, Manager (Accounts) and Branch Inspectors.

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* HRM Programme for CMs / Manager (Per &HRD)

* Retirement Counseling Programme for Senior Officials

* Leadership Renewal Programme for BMs

* Counseling Skills for AGMs

* Personal Development for Specialist Officers

* Programme for DGM (Module)

* Programme for Women Officers

Faculty Development

* Faculty Development (in two phases)

* Behavioral Science (in two phases)

v) PMIR

* Personnel Management and Industrial Relations

* Disciplinary Proceedings

vi) Functional Hindi

* Computer Assisted Functional Hindi for Senior Executives

vii) Marketing

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* Marketing programme for Regional Managers, Branch Managers and

Divisional Managers and Business Planners, with focus on Retail Banking.

* Customer Relationship Management

viii) Workshops & Seminars

The Academy organizes and/or conducts workshops seminars and

conferences on various issues / topics as per the requirements perceived by

us and on the basis of Corporate Centre / Circles demands made from time

to time.

TRAINING HELPLINE

Helpline facility is available as a support tool to our branches /offices. State

Bank personnel are invited to send us their queries by letter/ fax or e-mail at

[email protected] endeavor to respond to the query within 48 hours.

ON-SITE PROGRAMMES

The on-site programmer are designed to flexibly bridge the gap between

training and operations and are customized for the users. A team comprisingdomain specialists is put together and assigned to the indenting branches

typically for two to three days. The period is extendable to full week if need be.

On-site programmer focus on team training by allowing a larger number of

participants to benefit from the training course developed to meet their specific

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needs. The Academy has conducted on-site programmer at a number of

branches in both the networks.

COURSE MATERIAL

Programme course material undergoes due process of careful scrutiny and is

validated for adequacy, relevance, completeness and quality by domain

specialists drawn from within the Bank and is dynamically reviewed at regular

intervals.

COURSE DESIGN

Apart from exchanging ideas with SBSC Hyderabad, the course design is

tested on the basis of express needs of the participants and changes brought

about.

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EXTERNAL USERS

On the strength of the excellent training facilities and the build-up of training

momentum, the Academy, at the request of other organizations, has conducted

Programmers for Middle / Senior Management personnel for the following

institutions :-

Name of the Institution

Indian Oil Corporation

Coal India Ltd.

Allahabad Bank

Paktha Bank & Promostory Bank, Uzbekistan

Corporate

United Bank of India

State Bank of India

Small Industry Development Bank of India (SIDBI)

Bank Dhofar AL-Omani AL Fransi Oman

State Bank Of Travancore

CSIR< New Delhi

Oriented Bank of Commerce

Bank of Bhutan

UFG Bank, Delhi Branch

Nepal SBI Bank Ltd.

Overseas Banking Unit, Bahrain

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COLLABORATIONS

To achieve its objective of becoming a techno-saw centre, the Academy has

signed a Memorandum of Understanding with Indian Institute of Information

Technology, Bangalore. The Academy has also entered into an MOU with the

Indian Institute of Management, Lucknow. We are in dialogue for a similar

arrangement with the Management Development Institute, Gurgaon and

ICFAIAN Business School, Gurgaon

Advisory Council

The Academy has set up an Advisory Council by co-opting specialists from

premier institutes/ organizations as members for guiding its activities and

programmers. The Members are: -

i) Dr. Abad Ahmad,

Professor in Faculty of Management Studies, Delhi University.

ii) Dr. Pritam Singh,

Director, Management Development Institute, Gurgaon

iii) Dr. T V Rao,

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HR expert & consultant.

iv) Prof MR Rao,

Former Director, IIM Bangalore.

v) Maj. General D N Khurana,

Director General, All India Management Association, New

Delhi.

vi) Prof S Prasanna Chandra, Centre for Financial

Management Bangalore

vii) Prof S Sadagopan, Director, Indian Institute of Information Technology,

Bangalore.

viii) Chief General Manager (Per & HRD), State Bank of India, Corporate

Centre, Mumbai.

ix) Chief General Manager, SBI, Delhi

x) Chief General Manager & Principal, SBSC, Hyderabad

xi) Chief General Manager & Principal, SBA, Gurgaon

RESEARCH & DEVELOPMENT ACTIVITIES

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Research projects. Studies on topics relevant to the Bank's operational

concerns recommended by various departments at Corporate Centre and

Chief General Managers of Circles.

Book condensations

Development of CBT packages

Publications

Management of Computer Learning Centre/ Video Conferencing

Review of Research Projects/ Studies done at Staff Training Centers

Presentations on issues of topical interest.

RECENT RESEARCH STUDIES / PROJECTS

Interest Rate Elasticity of Deposit Growth

Study on implementation of Single Window Delivery

Competency mapping of different Role Holders in the Bank

Study of Loss making bank branches

Marketing to Rural India

Comparative Study of Internet Banking

Tapping creativity in Staff in a more productive way

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Impact of implementation of Bank's agreement with staff federation on

productivity of staff, increase in business and enhancement in customer

satisfaction

HRD practices in the Bank and other organizations

Financing of Infrastructure Projects

Floating Rate Deposits

Long Term Liability Product

5th Pay Commission Report

Factoring services in India

Voluntary Retirement Schemes

Credit Risk Assessment techniques

Training Efficacy in State Bank of India

New NPAs.

Avenues for improvement in Customer Service & Lost Market Share

Customer Complaints and Grievance Redressal system.

Competitiveness of SBI Housing Finance Scheme and causes of poor off

take of Housing Finance to Pvt. Builders.

Role of Community Services Banking in the image building of the Bank

Effect of Pricing on Business Growth & Profitability along with the

following issues:-

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Fixed Rate - Term Loan's & Working Capital

Finance,

Multiple Prime rates

Price sensitivity of client's forex products.

Mergers & Acquisitions (financial & non-financial parameters) with

special reference to suggested merger of Associate Banks with SBI.

Role of International Service Branch.

Priority Sector Lending - their impact on profitability of the Bank and loan

losses.

Management of AUCA & Cost-benefit analysis.

Future of readymade garments industry after de-reservation

Staff Motivation: Attitude of workmen/officers

Enhancement as a product

Effectiveness of representative offices

Remuneration for Rupee drawing arrangements with non managed

exchange companies

Synergy between domestic branches at Foreign Offices

Creation of Equitable Mortgage

Banking scenario in the next five to seven years

Pricing strategies. Cost benefit analysis, study of large accounts

The pricing of Bank Credit- correlation between rates of

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Prime lending

Call market

Bank Rate

Commercial Papers

New Export Finance Package

Customer satisfaction survey-Quantitative Rating Index

Interest Rate Sensitivity to Corporate Deposits

Loyalty retention programmed

Effectiveness of SSI branches

Shifting Age profile of Personal Banking Customers (Survey with Clients

of New Generation Banks)

Emerging opportunities in Banking Sector

An in depth study of sick / weak companies (non-BIFR) and the recovery

for delay in finalization of rehabilitation package in respect of such

companies

Study of large advances where Development of LCs and / or Invocation of

BGs has resulted in accounts turning Non-Performing

Study of NPA accounts of NBFCs financed by our Bank

Feasibility study for handling the lending and investment activities in

respect of project funding under single outfit in our Bank

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Compliance of regulatory requirements

Structure of Products for raising long term resources to facilitate funding of

infrastructure sector

SBI lacks aggressive marketing where lies the problem?

General scenario of non acceptance of compromise proposals

To suggest methods of factoring other business canvassed like Mutual

Funds, Insurance etc., into the Annual Appraisal

Focus on Business development

Sluggish growth in SSI advances.

Migration of Business from CNW Branches.

Financial Products - Supermarket

Effectiveness of returns

Impact of Dumping of Chinese goods on Indian Economy

Impact of Globalization on SSI sector

Banking Scenario in the next 5-7 years

Challenges & opportunities

Impact on the bank

post-VRS

RESEARCH PROJECTS IN THE AREA OF NPA MANAGEMENT53


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1) Imparting knowledge and awareness about the concepts, systems etc.

2) Classification for facilitating early identification of credit risk (early

identification of migration trend).

3) Sectoral classification of NPAs to help credit managers stake better

decisions and also building data base for migration and default trend

matrices.

4) Conducting studies on causative analysis on the lines done by RBI - (July

99 Bulletin of RBI) to identify major factors zone/region wise - leading to

better credit management policies.

5) Linkage of delegation of powers to credit risk levels of the branch/region

etc.

6) Studies on Impact of NPA on

a) Pricing (Loading default risk premium).

b) Profitability (Impact on ROA - 6-8 basis points for every 1% of

gross NPA.)

7) Creating awareness about skewed structure of branch resulting in in-built

imbalance of attention between credit (risky) and non-credit (less risky)

portfolios of the branch.

8) Servicing as Exchange house for collection and disseminating recovery

strategies and techniques adopted in the bank.

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9) Assessing the correlation between success rate of recovery and sacrifice

(compromise/write off) levels offered (19-28-53).

10) Assessment of the experience of specialized recovery branches - both style

and performance.

11) Exclusive Programmes on negotiating skills.

12) Special programmes imparting skills on loan workouts involving cash flow

discounting techniques.

13) Assessment of effectiveness of LokAdalats

14) Advances against export bills for collection

15) Impact of miscellaneous advances with special reference to DDP16) Spot Study - Exercise of sanctioning powers by AGMs / DGMs

17) Credit Enhancement as a Product

OTHER ACTIVITIES

The Academy is represented on the North Eastern Institute of Bank

Management Academic Advisory Council and is a member of a sub-

committee set up by Bureau of Indian Standards (BIS) for preparation of

Quality Assurance Standards for Banking and Financial Services. We

have made useful contribution on the adoption of various International

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Standards relating to Financial Services in India.

PUBLICATION

GURUKUL

A quarterly journal covering subject of topical and presenting new ideas and

thought in a condensed manner.

Books/ Booklets Published by the academy

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Credit Management

NPA Management

Human Behavior at Work

Case Studies

Infrastructural Facilities

Corporate Learning Center with latest software package

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Library with more than 8000 books, on a variety of subjects and 120

periodicals, both national and international, and 100 video cassettes.

Indoor/ outdoor games ; gymnasium ; jogging track

Excellent Catering facilities

Video conference enable in two conference hall with a seating capacity of

40 and 80 person respectively.

An auditorium with a seating capacity of more than 300

Recreation rooms with TV facility

Audio visual room

Medical, banking, travel agent, laundry arrangement

Bus facility for shopping at Delhi once in a week

Pick up and dropping facility from/ to Delhi airport state

BANK ACADEMY, GURGAON

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The campus, sprawling over 11 acres of land in Sector- 18, Instructional Area,

Gurgaon a capacity to conduct 6 training program simultaneously with

residential facility for 180 participants. The facility of the State Bank Academy

thus mirror its role, responsibilities and task as State Banks most modern

training institute for banking professionals in India.

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SBI Academy

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Hostel Room

In addition to 76 double occupancy rooms, 28 single rooms are also available.

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CHAPTER 4

DATA COLLECTION AND

ANALYSIS

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1) What type of training facilities are in SBI?

Option No. of respondents Percentage of

respondents

Integrated 22 41.51

Work related 12 22.64

Customer related 08 15.09

I.T. related 08 15.09

Explanation

Out of 50 respondents 41.51% respondents are in the favor that the trainingfacility in SBI is integrated, 22.64% said it is work related, 15.09 says it customer

related and I.T related.

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2) What is the concept of training in SBI?

Option No. of respondents Percentage of respondentsA) Keep away staff

from office

06 12%

B) Provide knowledge

related to work

12 24%

C) Grow staff work

quality

22 44%

D) To ensure smooth

functioning of the

branches

10 20%

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3)Which types of training is more use full?


respondentsOn the job training 30 60%

Training by supervisor 5 10%

Classroom training 5 10%

Practical training 10 20%

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4) How often do you undergo training module?


respondents

Every 3 months 15 30%

Every 6 months 10 20%

Y Once a year 25 50%

5)

5)

5)

5)

Response regarding training program?


respondents

Very good 12 24%

66

Training module

Every 3 months

Every 6 months

Once a year


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Good 17 34%

Average 11 22%

Poor 10 20%

6) Availability of core-based training?


respondents

Yes 35 70%

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No 10 20%

Dont know 5 10%

7) Training improves skill of human force and adequate?


respondents

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Correct 30 60%

Incorrect 10 20%

Partially correct 5 10%

No comments 5 10%

8) Do you find training and development programmed is motivational and

beneficial?

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Option 25% 50% 75% 100%

No. of

respondents

5 10 15 20

9) Do you find training and development is must for growth of any

institutional development?

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Option 25% 50% 75% 100%

No. of

respondents

5 8 15 22

10) For providing training which type trainers are available?


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respondentsA) Experienced 4 8%

B) Professional 10 20%

C) Both 30 60%

D) Others 6 12%

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CHAPTER 5

FINDING AND

CONCLUSION

FINDING AND CONCLUSION

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From the captioned research work of an esteemed organization State Bank Of

India some conclusions were drawn which are as follows:

Training and Development in SBI: Training : The training in SBI an plays

an important role. It not only provides on the job training to its workforce

but also ensure smooth fuctioning of their branches.

Off the job training (institutional Training) make their staff more

knowledgeable and also provides knowledge of International/domestic

banking as under.

Training in State Bank is a Proactive, planned and continuous process as an

integral part of organizational development. It seeks to impart knowledge,

improve skills and reorient attitudes for individual growth and

organizational effectiveness.

Development : The training and development in SBI are the two sides of the

same coin. The Trainng is the source of development in SBI. The bank has

arrangement of training for lower class of staff members to its executiveclasses.

The concrete concept of training and development in SBi helped

organization to keep its premier position in the banking industry since last

two centuries.

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CHAPTER 6

SUGGESTIONS

SUGGESTIONS

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Training is necessary in SBI for its skill and institutional development.

The nature of training should be compact included work/IT/ customer

related programs.

Training is the source of improvement in work quality and efficiency in

human resource.

The on the job training has played very vital role in re-design in SBI.

The bank has to keep minimum one professional at its very branch to

deliver prompt customer service.

The post training result are not very encouraging. The bank should bring in

new/modern concept to make its more attractive.

The cadre-based training is required and need to be continued.

Training to lower strata/low income group staff members is result-orientedand required to be continued.

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CHAPTER 7

ANNEXURE

QUESTIONNAIRE

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1) How often do you undergo with the training module?

a) Every 3 months

b) Every 6 monthsc) Once a year

2) Do you find training is must for any institutional development?

a) 25%

b) 50%

c) 75%

d) 100%

3) Response regarding training program?

a) Very good

b) Good

c) Average

d) Poor

4) There is an availability of core based training?

a) Yes

b) No

c) Dont know

5) Which type of training is more useful?

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a) On-the job training

b) Training by supervisor

c) Classroom training

d) Practical training

6) Which type of training facility you most like in SBI?

a) Integrated

b) Work related

c) Customer related

d) I.T. related

7) For providing training which type of trainer are available?

a) Experienced

b) Professional

c) Both

d) Others

8) Do you find training and development programme is motivational

beneficial?

a) 25%

b) 50%

c) 75%

d) 100%

BIBLIOGRAPHY

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1) BOOKS

a) Banking guide by G. Subramaniam

b) Personel Management and Human Resource Management

c) Dr. P. Subbarao.

2) Survey Report

3) WEB-SITES

a) www.google.comb) www.sbiindia.com

c) www.sbi.co.in
http://www.google.com/http://www.sbiindia.com/http://www.google.com/http://www.sbiindia.com/

snehal project 2

Documents