Overview on Human Resource Management (HRM) HRM in Commercial Banks Comparative Study Of HRM with Reference to Citizen Bank and Nabil Bank Human Resource Planning Recruitment Selection Socialization Training & Development Performance Appraisal Compensation Management

1. HRM PRACTICES IN
COMMERCIAL BANKS IN
NEPAL
WITH REFERENCE TO CITIZEN BANK AND NABIL BANK LTD
Prepared by
Dilisha Shrestha
Lalita Shrestha

2. Overview on Human Resource
Management (HRM)
• Process concerned with the management of human energies and
competencies for achieving organizational goal through acquisition,
development, utilization and maintenance of a competent and committed
workforce in a dynamic environment
• Involves all management practices that directly affect or influence the
people or “Human Resource” of the organization.
“HRM is the process consisting of the acquisition, development,
motivation, and maintenance of human resources.”
DeCenzo/Robbins

3. HRM in Commercial Banks
• More important because bank is a service industry.
• Bank’s success depends on customer satisfaction.
• Banks depend on their HR section for delivering employees that will work
towards attaining customer satisfaction.

4. Comparative study Of HRM
Nabil Bank
• Started on 12th July 1984
• Registered on 11th May 1984
• Paid-up capital of NPR 30 Million
• First private commercial bank
Human Resource Planning
Ensures that it has the right number and
kind of people, at right place, at right time
to achieve the organizational objective.
Profile
Citizen Bank
• A-class commercial bank
• Founded June 21, 2007
• Paid up capital of 20 Million
• One of the 30 A-class commercial
bank
HR
P
Citizen and Nabil Bank
Demand of the employees is forecasted through
visible analysis and information obtained from
the related department heads.

5. Recruitment
Internal source
• Promotions
• Transfers
• Former employees (rehire
and recall)
External source
• For lower level position,
Outsourcing company
• Local residents
Methods of Recruitment
Internal method
• Job posting
External method
• Newspaper
• Online advertisement
Art of identifying and attracting pool of
qualified candidates to fill the vacancy
Selection
Art of selecting the right job matching
candidates from that pool.
Citizen Bank
• Conduction of the selection test
• Interview
Nabil Bank
• Written exam
• Group discussion
• Interview
• Medical report, Police report
and reference check

6. Socialization• No special socialization system
• Formal introduction of the employees
among each other
• Orientation of job and the working culture
of the organization
• annual picnics and programs are held
phase whereby the new employees are adapted
with the norms and culture of the organization
Training &
Development
Training - for the non-managerial staffs to learn
knowledge and skill.
Development programs - for managerial staffs.
Nabil Bank
• 3% of net profit goes for training of employees
• Has a separate training unit and has been providing
trainings based on leadership skills, interpersonal skills,
communication skills and behavioral skills.
• In-house training after accessing gap between Human
Resource.
Citizen Bank
On the job:
• Job trainings from the experienced
employee
Off the job:
• Anti money laundry training
• Operation of the new software training

7. Citizens Bank
• Done by the immediate senior
• Done monthly for the staff working during
their prohibition period & yearly for the staff
with the permanent position
Performance
Appraisal
Comparing the actual performance with the standard &
correcting under performance if occurs at right time
Nabil Bank
• Annual performance appraisal system
• Every week senior management
committee meeting
• Annual Branch manager meeting
Compensation Management
All forms of pay or rewards going to employees and arising from their employment
Citizens Bank
Direct
• Bonus Scheme
• Salary Revision
Indirect
• Insurance Facility
• Fuel Facility
• Home Loan Facility
• Overdraft Facility
Nabil Bank
Direct
• Bonus Scheme
• Salary similar to the
counterpart banks
Indirect
• Insurance Facility
• Allowance for children’s
education
• Transportation Benefits
• Force leave

8. Conclusion
• Practicing HRM within the organization
is no more a luxury rather a necessity.
• The organization’s benefits, integrity,
organizational structure, etc. marches
arm-in-arm with HRM.
• To strengthen an organization, HRM is
a must.