HR Practice in Cooprative Bank

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A
RESEARCH PROJECT REPORT
ON
H R P r a c t ic e in C o -o per at iv e B a nk
DISSERTATION REPORT SUBMITTED IN
PARTIAL FULFILLMENT FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION
(2012)
F a c u l t y S up er vi s o r : S u b m i tt e d
B y : MRS. RITU TIWARI KAVITA
NEGI (Assistant Professor) MBA IVSEMDEPARTMENT OF ROLL NO: 14
MANAGEMENT STUDIES
AMRAPALI INSTITUTE OF MANAGEMENT & COMPUTERAPPLICATION(AFFILIATED TO UTTARAKHAND TECHNICAL UNIVERSITY, DHERADUN)
SHIKSHA NAGAR, LAMACHAUR, HALDWANI

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Kavita Negi, MBA- AIMCA
ST UD E N T D E C L ARA TI ON
This is to declare that project titled HR Practice in Co-
operative Bank.
The project was executed during the winter after the fourth semester of
M.B.A. under the supervision ofMrs. Ritu Tiwari.
Further, I declared that this project is my original work and the analysis and
the findings are for academic purpose only. This project has not been
presented in any seminar or submitted elsewhere for the award of any
degree or diploma.
KAVITA NEGI
MBA V SEMROLL NO.:
(i
)

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AC KN OWLE D GE M E N T
Hard work and dedication is the key to any successful completion of any
job and this project is no different. Although strenuous, yet it is interesting.
However, our success to this project report cannot be accounted for by onlythese factors.
During the course of this study, many useful suggestions and constructive
criticism came across which really helped a lot in giving this project a
professional look. I extend my heartiest thanks to all those persons whose
willing cooperation led to the timely completion of the project.
In completing this study, I did my level best correcting my
shortcomings to possible extent and I sincerely hope that this report will
serve its purpose for the Life Insurance Corporation of India.
Although I am thankful to all those who have contributed towards the
completion of this report. I would be failing in my duty if I do not
mention the warm help extended to me by the Staff of Co-operative Bankfor providing me an opportunity to work in the esteem organization and
without whose willing cooperation and encouragement the accomplishment
of this project would have become impossible.
Also I would like to thank all those who have helped me directly or
indirectly in completing the present project.
(ii
)

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P R E F AC E
"Banking Sector and Human Resources-Changing Scenario' presents a host
of themes relevant for understanding the Indian experience in the period of
economic reforms, when the country is fast becoming an integral part of
globalization, and when international best practices and standard patterns
are being adopted in a phased manner. The influence of economic reforms,
and the phases in which specific measures have been adopted in a cautious
way, making sure that social objective of service to the vulnerable sections
and less developed regions is paid special attention, enable us to refer to this
as human face of economic and financial sector reforms. Under the broad
heads of banking and finance, and human resource management,
specialists examine a number of specific topics. The critical look at
progress in recent years, lessons learnt, and directions for the future are all
spelt out on each topic based on the research endeavors of contributors.
(iii
)

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CON TE N T S
Collage certificate
Student Declaration i
Acknowledgement iiPreface iii
C H A P TER 1
1 Introduction 1
1.1 Purpose Of Research Work 2
1.2 Chapter Arrangement 2-3
1.3 Objectives of Study 4
1.4 Period of Study 4
1.5 Research Methodology 5
1.6Scope of the Study 6
1.7 Limitations of Study 7
C H A P TER 2
2.1 Industry Profile
2.1.1 Banking Sector: 8-9
2.1.2 Economic functions 10-11
2.1.3 Origin of the word 11
2.1.4 Banking channels 11-
12
2.1.5 Indian Banking Industry 13-
14
2.2 Profile of the Company
2.2.1 The Co-operative Bank: Background 14-
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Kavita Negi, MBA- AIMCACCCCCCCCCCCCCCCCCC

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2
C H A P TER 3
This part of project report contains
summary of Findings.
C H A P TER 4
This part of the project report I finally concluded the project
with some recommondation.

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3
OB JE C TI V E OF ST UDY :
The objectives of my study are:
To get an idea about HR function in banking industry with special
reference to the cooperative sector
To study and get knowledge about the development of
Human Resource Management (HRM) in the Co-operative Bank
like management strategy and employee relations in banking
To get an idea about the possible relationship between uses of strategic
human resource practices of cooperative banking firms.
P E R I OD OF ST UD Y
The project was executed during the fourth semester.

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S C O P E OF S T UD Y :
The aim of the study is to explore the possible relationship between uses of
strategic human resource practices of banking firms. The study assumes
that there is a link between the business strategy pursued by the firm and
its human resource policies and practices. It is also assumed that there is a
'fit' aspect (external and internal) between the business strategy and the
human resources policies. The 'external fit', is the extent the human
resource planning and implementation process is part of the strategy
process in the bank organization. Data was collected using a structured
questionnaire from firms representing banking sectors.
The firms pursuing different business strategies have different degree of the
'external- internal fit' of human resources. Also, firms pursuing different
business strategies use different levels of strategic human resource
practices.

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LIMIT A TI ON S OF ST UD Y
The researcher has to face certain difficulties while he carries out the
research work. He knows the limitations before hand. Some of them are
uncontrollable and some others are controllable. Some important
limitations, which were faced, are as follows:
1.Time was the major limiting factor during the research.it is quite
impossible to collect the sufficient data.
2. Limitation of funds: Availability of funds was another limitation
owning to shortage of money..
3.Limitation of human
behaviors:
4.Some of the respondent was not honest and genuine in their
approach. Some of the respondents could not understand
certain queries
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I nd us tr y P r of ile :
B a nki ng Sect or :
The definition of a bank varies from country to
country.
Under English law, a bank is defined as a person who carries on the
business of banking, which is specified as:
Conducting current accounts for his customers
Paying cheques drawn on a him, and
Collecting cheques for his customers.
In most English common law jurisdictions there is a Bills of Exchange Act
that codifies the law in relation to negotiable instruments, including
cheques, and this Act contains a statutory definition of the term banker:banker includes a body of persons, whether incorporated or not, who carry
on the business of banking' (Section 2, Interpretation). Although this
definition seems circular, it is actually functional, because it ensures that
the legal basis for bank transactions such as cheques do not depend on how
the bank is organised or regulated.
The business of banking is in many English common law countries not
defined by statute but by common law, the definition above. In other
English common law jurisdictions there are statutory definitions of the
business of bankingorbanking business
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In particular, most of the definitions are from legislation that has the
purposes of entry regulating and supervising banks rather than regulating
the actual
business of banking. However, in many cases the statutory definition
closely mirrors the common law one. Examples of statutory definitions:
"Banking business" means the business of receiving money on
current or deposit account, paying and collecting cheques drawn by
or paid in by customers, the making of advances to customers, and
includes such other business as the Authority may prescribe for thepurposes of this Act; (Banking Act (Singapore), Section 2,
Interpretation).
"Banking business" means the business of either or both of the
following:
1. Receiving from the general public money on current, deposit,
savings or other similar account repayable on demand or within less
than [3 months] ... or with a period of call or notice of less than that
period;
2. Paying or collecting cheques drawn by or paid in by customers.
Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale),
direct credit, direct debit and internet banking, the cheque has lost itsprimacy in most banking systems as a payment instrument. This has lead
legal theorists to suggest that the cheque based definition should be
broadened to include financial institutions that conduct current accounts
for customers and enable customers to pay and be paid by third parties,
even if they do not pay and collect cheques.

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9
Economic
functions
The economic functions of banks
include:
1. Issue of money, in the form of banknotes and current accounts
subject to cheque or payment at the customer's order. These claims
on banks can act as money because they are negotiable and/or
repayable on demand, and hence valued at par and effectively
transferable by mere delivery in the case of banknotes, or by drawing
a cheque, delivering it to the payee to bank or cash.
2. Netting and settlement of payments -- banks act both as
collection agent and paying agents for customers, and participate in
inter-bank clearing and settlement systems to collect, present, be
presented with, and pay payment instruments. This
enables banks to economise on reserves held for settlement of
payments, since inward and outward payments offset each other. It
also enables payment flows between geographical areas to offset,
reducing the cost of settling payments between geographical areas.
3. Credit intermediation -- banks borrow and lend back-to-back on
their own account as middle men
4. credit quality improvement -- banks lend money to ordinary
commercial and personal borrowers (ordinary credit quality), but are
high quality borrowers.

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5. Maturity transformation -- banks borrow more on demand debt
and short term debt, but provide more long term loans. Bank can
do this because they can aggregate issues (e.g. accepting deposits
and issuing banknotes) and redemptions (e.g. withdrawals and
redemptions of banknotes), maintain reserves of cash, invest in
marketable securities that can be readily converted to cash if needed,
and raise replacement funding as needed from various sources (e.g.
wholesale cash markets and securities markets) because they have a
high and more well known credit quality than most other borrowers.
Origin of the word
The name bank derives from the Italian word banco "desk/bench", used
during the Renaissance by Florentines bankers, who used to make their
transactions above a desk covered by a green tablecloth. However, there are
traces of banking activity even in ancient times.
In fact, the word traces its origins back to the Ancient Roman Empire,
where moneylenders would set up their stalls in the middle of
enclosed courtyards called macella on a long bench called a bancu, from
which the words banco and bank are derived. As a moneychanger, the
merchant at the bancu did not so much invest money as merely convert the
foreign currency into the only legal tender in Rome- that of the Imperial
Mint.
Banking

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channels
Banks offer many different channels to access their banking and
other services:
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A branch, banking centre or financial centre is a retail location
where a bank or financial institution offers a wide array of face-to-
face service to its customers
ATM is a computerised telecommunications device that provides
a financial institution's customers a method of financial transactions
in a public space without the need for a human clerk or bank teller.
Most banks now have more ATMs than branches, and ATMs are
providing a wider range of services to a wider range of users. For
example in Hong Kong, most ATMs enable anyone to deposit cash
to any customer of the bank's account by feeding in the notes and
entering the account number to be credited. Also, most ATMs
enable card holders from other banks to get their account balance and
withdraw cash, even if the card is issued by a foreign bank.
Mail is part of the postal system which itself is a system
wherein written documents typically enclosed in envelopes, and also
small packages containing other matter, are delivered to destinations
around the world. This can be used to deposit cheques and to send
orders to the bank to pay money to third parties. Banks also
normally use mail to deliver periodic account statements to
customers.
Telephone banking is a service provided by a financial institution
which allows its customers to perform transactions over the
telephone. This normally includes bill payments for bills from major

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billers
Online banking is a term used for performing transactions, payments
etc. over the
Internet through a bank, credit union or building society's secure
website
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Indian Banking Industry
The growth in the Indian Banking Industry has been more qualitative than
quantitative and it is expected to remain the same in the coming years.
Based on the projections made in the "India Vision 2020" prepared by the
Planning Commission and the Draft 10th Plan, the report forecasts that thepace of expansion in the balance-sheets of banks is likely to decelerate. The
total assets of all scheduled commercial banks by end-March 2010 is
estimated at Rs 40,90,000 crores. That will comprise about 65 per cent of
GDP at current market prices as compared to 67 per cent in 2002-03. Bank
assets are expected to grow at a...