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Training and Development in a Bank with Special Emphasis on Mentoring

CASE STUDY, HUMAN RESOURCE MANAGEMENT
ET Cases, 11 Pages
AUTHOR(S) : Mauli Bodiwala, Chief Manager at The Kalupur Comm. Co. Op. Bank Ltd

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Training and Development in a Bank with Special Emphasis on Mentoring

Traditionally banks recruited young graduates and their initial training was either long-term apprenticeship or on-the-job training or formal training in basic routine operations. During the late 1990’s , there was scarce competition among the banks, customers were less demanding and employees were less growth-oriented. Employees were much concerned with pay and less concerned with their scope for learning, growth and development. In the 21st century, for any service-oriented industry like banking, employee is the most important asset and bank must efficiently train and groom their employees during every phase of employment to provide qualitative services to customers. In such scenario, it became a challenge for the banks to retain good customers as well as employees. Opportunities for growth and development and scope of learning were also motivating factors for employees. Effective training and development programs not only enhance capabilities of employees but also increase satisfaction level of employees and reduce employee turnover ratio. Therefore, training and development was considered an investment rather than a cost to the bank.

Prime Bank: Background

The Prime Bank (Bank) is a Multi-State scheduled co-operative bank established in 1970. It was started by three grain merchants to cater to the requirements of grain merchants located in Ahmedabad. It had a policy to recruit its staff based on internal references only. Majority of its staff members were graduates. By focusing more on relationship banking, within a period of 37 years i.e., by the year 2007, the bank expanded its network to 30 branches with business mix of INR7,000 Crore with almost negligible employee turnover ratio and satisfied customer base. In the year 2007, the management of the Prime Bank had set its vision to reach a business mix of INR15,000 Crore and 60 branches in the next 10 years................

PHASE I: 2008-09 TO 2010-11

To be in sync with its set vision, in 2008, for the first time, bank recruited its staff through campus placement/newspaper advertisement. Being a co-operative bank, it was expensive for the bank to hire experienced professionals. Therefore, it hired fresh professionals like Chartered Accountant (C.A.), Company Secretary (C.S.), Cost Works accountant (C.W.A), Master of Business Administration (Finance/Marketing), etc., and planned to train them later.....

PHASE II: 2011-12 TO 2013-14

Based on suggestions received by RBI inspectors, Management of bank advised HR department to conduct training programs on credit management on continuous basis. This time, Assistant General Manager - HR (AGM -HR) planned to conduct in-house training by internal faculties’ i.e., Credit Analysts working at Head Office’s (H.O.) Credit department, who were young professionals with 3 years of banking experience..............

PHASE III: 2014-15 TO 2016-17

During the next year, 2014-2015, the Bank expanded its network and opened its branches in nearby cities of Baroda, Surat, Ankaleshwar, Anand, etc. At the same time, Bank gained popularity due to its qualitative services and performance. Customers from varied segments/sectors also started to approach the Bank to avail various types of loans. Competition in the banking industry was getting intense and customers were becoming more demanding.........

COMPARISON OF PHASE I, II AND III

In all three phases, it was observed by the Bank that there is steady growth in advances of the Bank as well as C/D ratio at satisfactory level (Exhibit I). There is constant increase in branches as well as employees of the Bank. In banking industry, apart from increase in advances, quick sanction to customers is must. In phase III, Turnaround time for sanction of credit proposal has drastically reduced from 10 Days to 4 Days. Further, bank has to comply regulatory guidelines and ensured good corporate governance........

CONCLUSION

Scope of training and development vary from one organization to another organization. Its scope and success depends on many factors like vision of organization, culture of organization, skill set..........

ASSIGNMENT QUESTIONS

I. Why training and development is important for an organisation?

II. Which are different training methods adopted by Prime Bank in Phase I, Phase II and Phase III.? What are the features of these training methods? According to you which training method was successful and what were the reasons behind its success? (Off-the-job training, On-the-job training)

III. ..........................

Exhibits

Exhibit I: Financial Position of the Prime Bank in Phase I, II and III

Exhibit II: Comparison of Training Programs Conducted by Prime Bank in Phase I, II and III

Teaching Note Preview

Training and Development in a Bank with Special Emphasis on Mentoring

 

Synopsis

The premise of this case study is to enable a discussion on various types of trainings, its special features, effectiveness and ultimate results to the bank. The discussion also highlights how training and development programs help bank in achievement of its goal, increase in satisfaction level of employees and improvement in customer service. It also emphasises importance of mentoring and its benefits to the bank. This case study highlights various types of training methods can be applied in any organisation. It highlights concepts of off the job training, on the job training and mentoring. It also focuses effectiveness of internal trainers v/s external trainers. Various type of training approaches like lectures, use of case studies, sharing of real life experiences etc. are discussed in the case. It gives insight to participants about pros and cons of various types of training.

Learning Objectives

• To understand importance of training and development needs in organisation
• To discuss various types of training methods adopted by bank, its pros and cons and its effectiveness
• To discuss importance of mentoring, selection of mentor, implementation of mentoring and its benefits to the organisation

Prerequisite Conceptual Understanding (Pcu)/ Before The Classroom Discussion

The students / participants should be encouraged to read the following mandatory reading bereft of which is a meaningful discussion and adequate analysis of this case study would not be possible.

• Sheal Peter, Handbook of staff development, 1st Indian Edition, Crest publishing house, 2004 (Chapter No: 1 Staff development, Chapter No: 3 How to provide mentoring and on the job training Chapter No: 6 How to improve performance through Off the Job training)

Case Positioning and Setting

This case study can be used in MBA, Executive MBA or Executive development programme, for the topic “Training and development”:

Sub topic: “On the job training, Off the Job training and Mentoring” To understand participants various types of trainings, its implementation its pros and cons and its results.

Assignment/Introductory Questions

I. Why training and development is important for an organisation?
II. Which are different training methods adopted by Prime Bank in Phase I, Phase II and Phase III? What are the features of these training methods? According to you which training method was successful and what are the reasons behind its success? (Off-the-job training, On-the-job training)
III...........

Preamble and Classroom Orchestration

This case study highlights various types of training methods can be applied in any organisation. Participants are required to analyse which training method was successful and what were the reasons behind the same.

This case study resembles that mentoring is the best method of training as it is a relationship where more experienced person helps and guides less experience person on continuous basis. It’s a learning and development partnership between mentor and trainee. It further concludes that internal trainers are more effective as compared to external trainers as they know internal environment of organisation as well as they have insight of trainees................

Exhibits

Exhibit (TN)-I: Classroom Orchestration

Exhibit (TN)-II: Importance of Training and Development Needs

Exhibit (TN)-III: Various Training Methods Adopted in Phase I and Phase II

Exhibit (TN)-IV: Implementation of Mentoring, Selection of Mentor and its Benefits

Exhibit (TN)-V: Comparison of Internal Trainers and External Trainers

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Abstract

Presented through a case of one of the largest multi-state co-operative bank of Gujarat, this case study enables to understand importance of training and development in the organization. The bank adopted various type of training approaches like lectures, use of case studies, sharing of real life experiences, etc., to train its employees, during the three phases of its training programs. The results, however, were different in terms of employee satisfaction level, employee turnover ratio, employee effectiveness which ultimately resulted into organizational growth. The case also highlights pros and cons of on-the-job training and off-the-job training. It emphasizes the importance of mentoring in the organization. It highlights how mentoring can be effectively implemented and how it can result into increase in skill set of employees, motivation level of employees and retention of employees. It also makes a comparison between internal trainers and external trainers.



Pedagogical Objectives

  • To understand the importance of training and development needs of an organization
  • To discuss the various types of training methods adopted by a bank, its pros and cons, and its effectiveness
  • To discuss importance of mentoring, selection of mentor, implementation of mentoring and its benefits to the organization

Case Positioning and Setting

This case study can be used in MBA, Executive MBA or Executive Development Programmes, for the topic of “Training and Development”:

Sub topic: “On-the-job training, Off-the-Job training and Mentoring” – To enable the participants to understand the various types of trainings, its implementation its pros and cons and its results.



This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
$5.48
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