The State Bank of India Vrs

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December 2000, a report by FICCI said Indian banking industry overstaffed by 35% •February 2001, SBI came up with VRS aimed mainly at clerical staff and sub-staff •Evoked strong protests from its employees who alleged it would lead to acute shortage of manpower •35,000 applications received out of which 19,295 applications from officer’s cadre •SBI modified eligibility criteria to opt for VRS for which it faced discriminatory allegations •Around 8,000 officers eligible for VRS after the modification •SBI’s total staff strength expected to fall by 15% after the VRS •SBI reduces its regional offices from 10 to 1-2 in each circle and faces shortage of manpower as anticipated by the union •SBI senses intense dissatisfaction and lack of motivation in its employees due to its feeble HR policies

Lack of effective HR policies with respect to ‘Manpower Planning’ •Bureaucracy with respect to ‘Performance Management System’ •Lack of innovation and laggard in technology
HR policies lacking strategic outlook – not in sync with their objective of diversification and •expansion of the business

Evaluation Criteria:
Retaining talent and enhancing expertise
Regaining its core strengths – customer base and reach •Adopt modern techniques and be at par in technology with other banks

Plan of action:
Appoint a Strategic HRM team to align the HR policies with long term business objective of the bank (Diversification needs increased manpower) •Job enlargement and job rotation is required to increase expertise in the employees. This can help in promoting clerks to officers which is the need of the hour •Analyse the demand- supply gaps in various regions and reorganize staff to meet demand •Develop a more efficient recruitment process to make sure that there is no shortage of manpower •Nominate existing and new employees for contemporary training, so that they can be use technology more efficiently •‘Compensation and reward...
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