HUMAN RESOURCE PRACTICES AND ITS IMPACT ON BANKING SECTOR

Abstract

The banking industry is a highly regulated powerhouse that stabilizes the financial climate o nations around the world. Banks store sensitive, personal information about their customers, and commercial banks hold more valuable inventory, cash, than other retail operations. Bank employees, from officers to tellers, must have a higher level of integrity and reliability than employees in most other industries, making the role of HR in banking even more important. HR departments must design and monitor work processes to reduce opportunities for internal theft and collusion. HR policies segregate cash receipt, storage, processing and disbursement and record all activities through video surveillance. If an employee tries to steal from a bank, the HR department must handle the necessary legal documents and administrative procedures for court proceedings. Some jobs don't really require a background check, but any bank job certainly does. HR departments in banks must go the extra mile to uncover the criminal and financial history of job applicants, for the safety of their customers and their entire organization. Banks are very unlikely to hire candidates with financial fraud on their record, for example, because of the sheer weight of temptation to place someone with such a history at a bank. Efficient human resource management is the most essential requirement to survive in this competitive world.