AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

Training and Development of Managers A Comparative Study of SBI and ICICI Bank

*R. Christuratnam
**Dr. S. Vijaya Raju
*Research Scholar, Acharya Nagarjuna University, Guntur Dist. A.P
**Principal & Professor, Department of Commerce and Business Administration, Anu, Guntur
Abstract:

522510, AP, India.

In todays competitive world, no employers can afford to carry staffs that are not efficient.
Yet, many organizations still appear reluctant to invest in training the members to be efficient
ones. The primary interest in a study about the future is in looking for a group of characteristics
shared by the better banks that might serve to predict the future success for others. That
common trait is an emphasis on training. Ongoing development is todays new form of job
security. People need to learn continuously. By developing, stretching and continually
challenging themselves, employees can build a skill base; reputation and a network of contacts
which will make them fit to be always employ Able. It was suggested to the training authorities
of the selected banks consider the experience pattern, Number of training opportunities availed,
time lag between the two training opportunities etc., in prior to selection of executives for training
programs. The study found that there is a difference between the opinions of the respondents in
objectives for attending the training and development programs are acquired new skills,
improving problem solving skills. So the concerned authorities are required to identify the causes
and make a necessary action for erective functioning of training and development program in
banks. It is suggested to the training departments of Banks to understand the reasons for
arousing the differences in training centers, in terms of training components like infrastructure
facilities, course duration, library facilities, training methodology and training materials etc.
Key words: Training, Development, Administration, Banking industry, Employer,
Employee etc.
Introduction:
Generally HRM refers to the management of people in organizations. It comprises of the
activities, policies, and practices involved in obtaining, developing, utilizing, evaluating,
maintaining, and retaining the appropriate number and skill mix of employees to accomplish
the organizations objectives. The goal of HRM is to maximize employees contributions in
order to achieve optimal productivity and effectiveness, while simultaneously attaining
individual objectives (such as having a challenging job and obtaining recognition), and societal
objectives (such as legal compliance and demonstrating social responsibility). The scope of
HRM is indeed vast. All major activities in the working life of a worker from the time of his or
her entry into an organization until he or she leaves the organizations comes under the
purview of HRM. The major HRM activities include HR planning, job analysis, job design,
employee hiring, employee and executive remuneration, employee motivation, employee
maintenance, industrial relations and prospects of HRM.
Indian banking is the lifeline of the nation and its people. Banking has helped in
developing the vital sectors of the economy and usher in a new dawn of progress on the Indian
horizon. The sector has translated the hopes and aspirations of millions of people into reality.
But to do so, it has had to control miles and miles of difficult terrain, suffer the indignities of
foreign rule and the pangs of partition. Today, Indian banks can confidently compete with
modern banks of the world. Before the 20th century, usury, or lending money at a high rate of
interest, was widely prevalent in rural India. Entry of Joint stock banks and development of
Cooperative movement have taken over a good deal of business from the hands of the Indian
money lender, who although still exist, have lost his menacing teeth.
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AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

The industry is currently in a transition phase. On the one hand, the PSBs, which are
the mainstay of the Indian Banking systems, are in the process of shedding their flab in terms
of excessive manpower, excessive non Performing Assets (Npas) and excessive governmental
equity, while on the other hand the private sector banks are consolidating themselves through
mergers and acquisitions. PSBs, which currently account for more than 78 percent of total
banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000),
falling revenues from traditional sources, lack of modern technology and a massive workforce
while the new private sector banks are forging ahead and rewriting the traditional banking
business model by way of their sheer innovation and service. The PSBs are of course currently
working out challenging strategies even as 20 percent of their massive employee strength has
dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes.
Literary reviews:
A literature review is a text of a scholarly paper, which includes the current
knowledge including substantive findings, as well as theoretical and methodological
contributions to a particular topic. Literature reviews are secondary sources, and do not
report new or original experimental work. Most often associated with academic-oriented
literature, such reviews are found in academic journals, and are not to be confused with book
reviews that may also appear in the same publication. Literature reviews are a basis for
research in nearly every academic field.
Nadler (1979) made a distinction between human resource utilization and human resource
development. He state that human resource utilization covers traditional functions of
personnel administrations, whereas human resource development includes mainly training,
education and development. He further identifies three main roles for the human resource
development managers with some sub roles.
Rao (1982) studied and assessed 45 organizations HRD practices and observed that:
1. Performance appraisal system is for regulatory purpose mostly and less for HRD
development;
2. Salary increment used as a reward mechanism,
3. Potential appraisal system is not well practiced, and
4. Training is well attended by employees.
Annandale-Massa and Bertrand, 1990; Piesse, 1991:.In response to a progressive
saturation of the traditional markets, an important diversification in the offering of
services and products has appeared; intensive competition, particularly linked with the
exclusion of intermediaries which occurred around the mid-1980s, has progressively affected
services to the general public. The 'liberalization' of financial markets, almost concomitant
with these evolutions, has increased these trends, which have given a whole new insight into
the environment of banking firms These new conditions have already had very precise effects
on human resources in banks (Hendry, 1987; Bertrand and Noyelle, 1988;Hiltrop, 1992).
Arahunasi U.H (1992) in his M.Phil Dissertation A Critical Evaluation Of Performance
Appraisal In Selected Industrial Organization stated that favorable attitude of the
employees towards the appraisal system should be created, the performance appraisal (P.A.)
system should be treated as problem solving system, every promotion should be made purely
on performance basis, organization must bring the participative approach of employees in the
P.A. system, training to appraiser and appraise should be given about the P.A. system, proper
feedback system need to be installed for the employees, and good performance should be
linked with special increment, promotion and rewards.
Gupta K.C. & Singh Tej (2005-06) in the article captioned as Effectiveness of Training in the
Banking sector: A Case Study have divided the study into four variables i.e. induction
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AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

training, need-based training, planned training and utilization, with the objective to explore
empirically the extent of their effectiveness, in PNB and SCB. The study also aimed at a)
comparison of Indian and Foreign banks in terms of training effectiveness and b) to find out
whether there is any relationship between the various dimensions of HRD and training
effectiveness in PNB and SCB. On the basis of analysis and result, the authors have inferred
that the training aspect of HRD in both the banks does not differ significantly. However, the
two dimensions of training effectives viz need-based training and planned training are found
different in PNB & SCB. The authors observe that the performance of SCB is better than that
of PNB in regard to need based training and planned training. Authors on the basis of
correlation analysis reveal that there is a positive correction between HRD climate and
training effectiveness, training effectiveness and performance appraisal and training
effectiveness & counselling attitude of managers in both the banks.
Reddy A. Jagan Mohan (2006) in HRD : Origin, Concept and Future has dealt with origin,
concept of HRD, emerging challenges and the right steps to be taken so that employees can
contribute their best for achieving organizational as well as individual goals. He concludes
that change is here to stay and we need to understand that all the practices that are working
today may not necessarily work tomorrow. Customers expectations, market changes and
strategic decisions will drive the management of human assets.
Objectives of the study:
1. To evaluate the training needs identification methods practiced by the State Bank of India
and ICICI Bank.
2. To ascertain and compare the training areas and the adequacy of the training
infrastructural facilities in the State Bank of India and ICICI Bank.
3. To evaluate and compare the adequacy of training and the training practices followed in
the State Bank of India and ICICI Bank with special reference to the opinion of the selected
Managers responses.
4. To elicit the views of respondents employers and Training and Development Programmes of
selected Banks (SBI and ICICI Bank Managers.)
5. To analyse the views of managers and various issues related to implementation of Training
and Development of selected Banks.
Hypothesis
1. State Bank of India and ICICI Bank differ significantly as per as the training, policy,
philosophy and objectives are concerned.
2. State Bank of India and ICICI Bank has significantly different views as far the training
needs identification methods are concerned Managers.
3. State Bank of India and ICICI Bank has significant difference in relation to the training
areas and as far as the availability of training infrastructural facilities are concerned.
4. State Bank of India and ICICI Bank vary significantly regarding training evaluation
practices and Managers attitude to training.
5. State Bank of India and ICICI Bank disagree significantly regarding adequacy of training
and in the area of training practices.

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AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

Data Analysis:
Table 1: No of training programs attended

ICICI
SBI

More
than 3

Total

35

23

20

80

43.8%

28.8%

2.5%

25.0%

100.0%

28

29

17

18

92

30.4%

31.5%

18.5%

19.6%

100.0%

63

52

19

38

172

36.6%

30.2%

11.0%

22.1%

100.0%

Explanation:
From the table it can be observed that in SBI 31.5% attended 2 training programs, 30.4%
attended 1 program, 19.6% attended more than 3 and 18.5% attended 3 programs. In ICICI
43.8% attended 1 program, 28.8% attended 2 programs, 25% attended more than 3 programs
and 2.5% attended 3 programs.

35
30
25
20

ICICI

15

SBI

10
5
0
1

More than 3

Graphical Presentation for the Attended Training Programme

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AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

Table:- 2 Chi - square test between ORGANIZATION and the NEED of Training.

To Acquire new skills

To Avoid the problems of poor
administration
To improve the
accuracy in work
To avoid
records

delay

speed
in

ICICI

SBI

Total

17

12

29

21.3%

13.0%

16.9%

26

26

52

32.5%

28.3%

30.2%

13

7.5%

7.6%

7.6%

21

39

60

26.3%

42.4%

34.9%

10

18

12.5%

8.7%

10.5%

80

92

172

and

updating

Others

100.0% 100.0% 100.0%

Explanation:
From the table it can be observed that in SBI 42.4% agreed with the argument To
avoid delay in updating records, 28.3% are with the argument To Avoid the problems of poor
administration, 13% are with the argument To acquire new skills, 8.7% has other views and
7.6% are with the argument To improve the speed and accuracy in work. In ICICI 32.5% are
with the argument To Avoid the problems of poor administration, 26.3% are with the
argument To avoid delay in updating records, 21.3% are with To acquire new skills, 12.5%
are with other views and 7.5% are with To improve the speed and accuracy in work.
A Chi square test has been conducted between the variables organization and need of training
and the results are tabulated below.
Chi Square Test

Pearson
Square

Chi-

Value

df

5.752a

Asymp. Sig.
(2-sided)
.218

The calculated Chi square value is 5.752. The table value at 4 degrees of freedom at 5% level
of significance is 9.488. Since the calculated value is less than the table value at 5% level of
significance it can be concluded that there is no significant difference in the need of training
between the two organizations (ICICI and SBI).

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AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

Table 3:-Chi-square test between ORGANIZATION and the METHOD followed for
selection

Seniority
Based on annual training schedule
Based
needs

on

pre-determined

training

No. Of times training opportunities

availed previously
Others
Total

ICICI

SBI

Total

21

11

32

26.3%

12.0%

18.6%

22

21

43

27.5%

22.8%

25.0%

10

19

11.3%

10.9%

11.0%

17

33

50

21.3%

35.9%

29.1%

11

17

28

13.8%

18.5%

16.3%

80

92

172

100.0% 100.0% 100.0%

EXPLANATION:
From the table it can be observed that in SBI 35.9% are with the argument No. of times
training opportunities availed previously, 22.8% are with Based on annual training
schedule, 18.5% are with other views, 12% are with Seniority, 10.9% are with Based on
pre-determined training needs. In ICICI 27.5% are with Based on annual training schedule,
26.3% are with Seniority, 21.3% are with No. of times training opportunities availed
previously, 13.8% are with other views and 11.3% are with Based on pre-determined training
needs.

35
30
25
20
15
10
5
0

ICICI
SBI
Seniority

Based on
Based on preannual training
determined
schedule
training needs

No. Of times
training
opportunities
availed
previously

Others

A chi square test has been conducted between the variables organization and methods
followed for selection of training and the results are tabulated below.

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AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

Chi-Square Tests

Pearson
Chi-Square

Value

df

Sig.

8.812a

.066

The calculated Chi square value is 8.812. The table value at 4 degrees of freedom at 5% level of
significance is 9.488. Since the calculated value is less than the table value at 5% level of
significance it can be concluded that there is no significant difference in the method of selection
for training between the two organizations (ICICI and SBI).
Table 4:-Chi square between Organization and Objective of Training and development
Org.name

Improving
skills

problem-solving

Improving
promotion

prospects

Acquired
new
skills, attitudes

for

knowledge

Enriching
the
knowledge
through interaction with other
people
Others
Total

Total

ICICI

SBI

19

13

32

23.8%

14.1%

18.6%

29

16

45

36.3%

17.4%

26.2%

16

21

6.3%

17.4%

12.2%

17

35

52

21.3%

38.0%

30.2%

10

12

22

12.5%

13.0%

12.8%

80

92

172

100.0% 100.0% 100.0%

Explanation:
From the table it can be observed that In SBI 38% agree with the argument Enriching the
knowledge through interaction with other people, 17.4% are with Improving prospects for
promotion, 17.4% are with Acquired new knowledge skills, attitudes, 14.1% are with
Improving problem-solving skills and 13% are with other views. In ICICI 36.3% agrees with
the argument Improving prospects for promotion 23.8% are with Improving problem-solving
skills, 21.3% are with Enriching the knowledge through interaction with other people,
12.5% are with other views and 6.3% are with Acquired new knowledge skills, attitudes.

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AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

35
30
25
20
15

ICICI

10

SBI

5
0
Improving
problem-solving
skills

Improving
prospects for
promotion

Acquired new
knowledge
skills, attitudes

Enriching the
knowledge
through
interaction with
other people

Others

A chi square test has been conducted between the variables organization and objectives of
training and the results are tabulated below.
Chi-Square Tests

Pearson
Square

Chi-

Value

df

Sig

16.297a

.003

The calculated Chi square value is 16.297. The table value at 4 degrees of freedom at 5% level
of significance is 9.488. Since the calculated value is greater than the table value at 5% level
of significance it can be concluded that there is significant difference between the objectives of
training and development between the two organizations (ICICI and SBI).
Table 5:-Chi square test between organization and the benefits derived from training
Improved knowledge of companies systems and
procedures
Improved self-confidence
Improved public relations
Promotion
promotion

opportunities

improved

prospects

for

Provides a sense of being recognized and wanted by

the organization
Total

ICICI

SBI

Total

18

12

30

22.5%

13.0%

17.4%

21

20

41

26.3%

21.7%

23.8%

11

15

26

13.8%

16.3%

15.1%

24

30

54

30.0%

32.6%

31.4%

15

21

7.5%

16.3%

12.2%

80

92

172

100.0% 100.0% 100.0%

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AEIJMR Vol 4 Issue 10 October 2016 ISSN - 2348 - 6724

Explanation:
From the table it can be observed that in SBI 32.6% are with argument Promotion
opportunities improved prospects for promotion, 21.7% Improved self-confidence, 16.3% are
with Improved public relations, 16.3% are with Provides a sense of being recognised and
wanted by the organization and 13% are with Improved knowledge of companies systems
and procedures. In ICICI 30% are with Promotion opportunities improved prospects for
promotion, 26.3% are with Improved self-confidence, 22.5% are with Improved knowledge
of companies systems and procedures, 13.8% are with Improved public relations and 7.5%
are with Provides a sense of being recognised and wanted by the organization

30
25
20
15
10

ICICI

SBI

0
Improved
knowledge of
companies
systems and
procedures

Improved selfImproved
Promotion
Provides a
confidence public relations opportunities sense of being
improved
recognised and
prospects for wanted by the
promotion
organisation\

A chi square test has been conducted between the variables organization and benefits derived
from training and the results are tabulated below.
Chi-Square Tests

Pearson Chi-Square

Value

df

5.553a

Asymp. Sig.
(2-sided)
.235

The calculated Chi square value is 5.553. The table value at 4 degrees of freedom at 5% level of
significance is 9.488. Since the calculated value is less than the table value at 5% level of
significance it can be concluded that there is no significant difference between the facilities
provided at training between the two organizations (ICICI and SBI).
Findings:
1. Male respondents dominated the survey in case of both banks on in evident from the data
collected and analysed.
2. In case of both banks, majority of respondents had their Educational Qualifications as
graduation as in evident from the analysis.
3. The area wise analysis reveals that in case of ICICI, majority of respondent belongs to
urban areas, while in case of SBI; the majority of respondent managers belong to semi urban
areas.
4. Majority of respondents from ICICI Bank attended one training programme while the
majority of respondent managers from SBI attended two Training Programmes.
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5. It was also noticed that there are no significant differences in the method followed for
selection of managers for training. If the methods, seniority, annual plan schedule, no of
training programmes attended previously etc. are the important methods followed for selection
of managers for training.
6. It can also conclude that there is significant difference between the sample respondents of
two banks on the objective of training and development related to two banks.
7. It was observed that there is significant difference between the samples respondents of two
banks on the facilities provided at training centers of respective banks.
8. There were no significant differences which were observed between the samples managers
of selected banks on the aspect related to benefits received from training. This was concluding
from the analysis of the table presented.
9. It was also observed that there is significant difference between the samples mangers of
select banks on the issues related to the problems faced during training. Some of the
problems include training material is inadequate and training period is lengthy.
10. It was observed that there are significant difference in the views of respondents relating to
organization and need of training and development assessment.
Suggestions:
1. In case of experience it was observed that in case of SBI majority of respondents are
having 5 10 years of experience while in case of ICICI majority of respondents are having 10
15 years of experience.
2. The analysis relating to qualification wise show that the majority of respondents of ICICI
are degree holders and of SBI are pre- degree holders. The respondent in the other
qualifications are less in number.
3. The observation relating to area wise analysis reveals that most of the respondents of both
banks belongs to urban and semi urban only. Those respondents who belong to rural areas
are less in number.
4. There are no significant differences which are observed in the views of respondents
relating to expectations from training and development program organized for them.
5. There are significant differences which are observed in the views of respondents relating to
impact of training and development programs on job performance.
6. It was observed that there are no significant difference in the views of respondent clerks
relation to impact of training and development programme on self development in case of two
banking organizations.
7. It was concluded that there are no significant difference in the views of respondents of
both banks relating to the opinion on training and development programme.
8. It was concluded that there are no significant difference in the views of male and female
respondents on the impact of training and development programme on behavioral changes
Conclusion:
There is enough evidence to show that employees who were trained on a regular basis are the
ones who provide a higher quality services to the customers. To develop an integrated and
proactive training and development strategy there is requirement of coherent corporate culture
rather than ad-hoc programs. In a service oriented industry such as banking, people are
among the most important assets and a bank must efficiently manage its employees during
every phase of employment in this competitive arena. It is concluded that public sector banks
undertake training and development programmes for their employees to increase their
efficiency. Banks provide training programmes to enhance their knowledge and skills to satisfy
the customers. Growth of banking sector in India is the result of skilled manpower which is
the outcome of training and development.

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References:
Sangwan D. S. (2009),Human Resource Management in Banks National Publishing
House.
2. Rao P.L. (2004),Human Resource Management Excel Publishing House.
3. Shah et.al.(1984))Human Resource Management in Banking Industry South Asian
Publisher NewDelhi,.
4. Purohit Manisha (2012), An Evaluation of HRD Practices Followed in Co-operative Banks
in Pune Region, ACADEMICIA: An International Multidisciplinary Research Journal, Volume
2, Issue 8, pp 186-195.
5. Bourgeois, L. J. III. 1985. Strategic management and determinism. Academy of
Management Review 9: 586-596.
6. Broadbent, D. E. 1977. Levels, hierarchies, and the locus of control. Quarterly Journal of
Experimental Psychology 29: 181-201.
1.

Websites
www.iba.org
www.rbi.org
www.bis.org

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