Project Report
Project Report
Project Report
ON
Submitted To:
Roll No.:2001160700163
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CERTIFICATE
I, Ms. Vanshika Arora, Roll no. 2001160700163 certify that the Project Report entitled
The matter embodied in this project work has not been submitted earlier for the ward of any
Certify that the project report entitled “Comparative Analysis of HR Practices in BFSI Firms”.
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CERTIFICATE
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TABLE OF CONTENT
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ACKNOWLEDGEMENT
It is not possible to prepare a project report without the assistance & encouragement of other
people. This one is certainly no exception. On the very outset of this report, I would like to
extend my sincere & heartfelt obligation towards all the personages who have helped me in
this endeavour. Without their active guidance, help, cooperation & encouragement, I would
not have made headway in the project. I am extremely thankful and pay my gratitude to my
faculty Dr. Sadananda Prusty for his valuable guidance and support on completion of this
me this opportunity. I also acknowledge with a deep sense of reverence, my gratitude towards
my parents and member of my family, who has always supported me morally as well as
economically.
At last, but not least gratitude goes to all of my friends who directly or indirectly helped me to
Thanking You
VANSHIKA ARORA
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DECLARATION
I, Vanshika Arora, hereby declare that the report titled, “Comparative Analysis of HR
Practices In BFSI Firms” submitted in fulfilment for the award of Degree of Master of
of work done by me under the guidance of Dr. Sadananda Prusty, Dean Academics of Jaipuria
This report has not previously formed on the basis for the award of any degree, diploma, or
This is to certify that the statement made by the candidate is true to the best of my knowledge
and belief.
Signature of guide
(Dean Academics)
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EXECUTIVE SUMMARY
AIM India has three ventures and is basically a wealth management and
consultancy firm which delivers a one stop solution/ service to achieve financial
independence. Our principle is to deliver high returns to our clients through our
network of government sector banks in India. Talking about its other ventures
Insplore and Finamigo is dedicated to empower people with 7 relevant jobs and
development opportunities.
We serve small, medium & large organizations across all industry sectors. We
companies. Our Sole objective is to bridge the gap between the Talented
sector which included a life cover security scheme, a medical insurance policy
The Methodology used is both secondary, that is, the backend work which
insurance policy in which we were supposed to perform a direct sale, i.e. B2C.
The learning experience I gain from the internship is immense. Till now, I am
survey on the same. The Limitations of the project was firstly the field work
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INTRODUCTION OF THE COMPANY
My experience with AIM India Pvt Ltd has been an eye opening one in terms of
AIM India Pvt Ltd is a third-party agent company which provides the insurance
plan of “INDIAFIRST LIFE CO.” to the potential consumers. The whole work
methodology of the organization rotates on the shifts and all year hiring of the
interns. The main work of the firm is “Wealth Management” i.e., “Helping the
individual reach the state of financial independence”. To do this they provide the
In brief, AIM India Pvt Ltd provides exemplary insurance service extension to
• Lock in Period
• Goodwill
• Privacy statement
• USPs
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• Market Stability
• NRI Applicability
AIM INDIA Pvt Ltd deals with consumer on the sale of India first Life Insurance
company’s products. The various financial products that company sells are
We were briefed with the history of India First Life Company which is actually
JOINT VENTURE between “Bank of Baroda” & “Andhra Bank” & “Dena Bank”
& “Vijaya Bank” & “Union Bank”. India First life co. on its independent
spanned over by 2.4 lakh service distributors due to the presence of the bank
branches of its ventured banks. Hence, it actually works on the principle of “Bank
assurance.”
The major competitors for our company are LIC, HDFC Life Insurance, Aviva
1. Mahajeevan PLAN:
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This is actually a traditional plan i.e., non-linked insurance plan which offers both
deaths as well as maturity benefits to the insurer. It offers life protection plus
saving and equally provides revisionary bonuses to enhance the policy holder’s
offered. In case the time period is over, the maturity benefits are offered. The
II. The maturity benefit is equal to the guaranteed sum assured plus the
bonuses.
III. The death benefit is the assured sum i.e., equal to sixteen times the first
premium paid plus accrued revisionary bonus and terminal bonus. But
usually this “sixteen time” index is also dependent on age. The younger the
life insured is higher is the probability to receive the sum closer to sixteen
times.
IV. Under the sections of Income Tax of Indian Constitution, the specific tax
benefits are offered via Income Tax Act 80C and full tax saving on the
V. The Entry age is 5 years of life assured and policy term is 15 years.
VI. The lock in period of the plan is 3year. However; the co has provided a
loan feature for utilization of cash invested in case of any work. Post two
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year, the proposer can take 90% of the sum money as loan, which would
VII. EMI feature is available to proposer to put in the premium from second
VIII. Any person with Indian passport can buy this product.
X. Types of death covered include suicide as well but only after lock in period
• Child Category
• Youngster Plan
• Retirement Plan
The child pitching actually consists of the age benefit whereby the proposer can
continuously keep investing even after the maturity occurs via taking out some
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For the youngsters, the pitching could involve “Good return”, “Tax benefit”, “and
For the elderly, the plan could be rolled out to someone around 40-45 year. There
is provision of investment for 15 years and at the end the maturity amount could
be either blocked for 8 years which would give double money at end or the
premiums.
2. Term PLAN:
This is the second plan we have been introduced to. Just like any motor insurance,
it only comes into existence if any accident occurs else it expires. It covers the
clause that if the person smokes, the premium is slightly higher than non-smoker.
So, for the elderly people and one with medical histories and serious backgrounds
such as diabetes, genetic problems etc. There is no maturity benefit, it only has
death benefit. The term plan can’t be extended. The benefit is really less as
This is the third plan, which is actually of “Star Health” Company. The plan
covers the disease and medical emergencies, surgeries cover up for the person
and family insured under certain acceptable terms and conditions. This is a
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comprehensive plan. There is no capping. There is provision of Floater system,
and one can effectively change premium each year leading to change in the
coverage span.
The main aim of the undergone Summer Internship Program is to make the
students experience the work culture and the procedures of the Corporate World.
company as intern and understands the facts of the company as well as to make
the project on the work done by the students in the Company allotted to them for
an intern in the company is to study and understand the company’s product and
sell it. I need to have an in-depth knowledge of entire financial sector and know
our product’s special feature which may differentiate it from others. I also have
to lure and convince the customers for our investment plan (Mahajeevan). And
also I have worked for other two verticals of the company that is a consultancy
firm and a coaching institute which were at the initial stage of the business.
➢ HR Training
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➢ Roles of HR
➢ Recruitment Process
➢ Pay slips
➢ Role plays
➢ Taxation module
➢ Tax slabs
➢ Tax calculations’
➢ Portfolio management
The reporting time for the interns was 10:00 AM in the morning till 5:30 PM
which includes a break of 30 minutes for the lunch. During my internship I was
given training of Fifteen days by my mentor Mr. Chinmay Dev Tiwari in which
he taught me about all the market sectors as well as the various financial sectors
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After this training I was on 30 days field work in which I need to perform sales
of the new products launched by the company dealing with insurance plans and
medical claims. It was a great experience as well as a good exposure given by the
PRODUCTS:
MAHAJEEVAN:
plan. Under this plan, you can choose how much you would like to insure yourself
based on your requirements. We suggest you make sure this amount is what your
family needs to avoid cash flow problems in case of the untimely demise of the
Life Assured. This is a regular premium plan with the option of choosing from
15 to 25-year plan term. This plan may include the ‘Life Assured’, the
KEY FEATURES:
• Plan your future needs by deciding exactly when you need the assured
• The plan offers a death benefit equal to the sum assured in case of the life
assured’s untimely demise. Enhance your life cover through India First
• Under Section 80C you can enjoy tax benefits on the premium you invest.
You can also get tax benefits on the benefits you receive at maturity of your
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COMPANY PORTFOLIO
advisory in India and Abroad, AIM India delivers a one stop solution/
client's money and plan for their own and family's current and future needs.
• Vision is to deliver high rate of returns to our clients and to move towards
financial independence.
• Compliance services
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• Accounting services
• Taxation services
• Recruitment services
• Consulting services
• Insurance services
• Mutual funds
• Retirement planning
• International expansion
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COMPETITORS OF INDIA FIRST LIFE INSURANCE
COMPANY
• National Insurance
• Oriental Insurance
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• Reliance Life Insurance
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The objectives of our profile were as under:
• Doing the basic market analysis for all the three verticals.
• To bring about changes in the product as per the current market situation
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MARKETING STRATEGY FOLLOWED BY THE COMPANY
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PORTER’S FIVE FORCES MODEL
Porter's five forces analysis is a framework for analysing the level of competition
products or services, the threat of established rivals, and the threat of new
entrants; and two forces from 'vertical' competition: the bargaining power of
there are great chances of new competitors to enter the market, though it has no
such risk because our company has tie up with the government banks that makes
Threat of substitutes:
Insurance nowadays is more than a cover but an investment as well, the other
substitutes that are available are fixed deposits, share market, gold etc. which are
Degree of Rivalry:
The rivals mainly are the other insurance companies and the major one is LIC,
talking about the private players, till date Indian customers prefers govt. over
private for security of funds, and now talking about LIC it has schemes that are
outdated and no assured, though it takes a little more effort and research but it is
a better option.
Bargaining power:
Insurance is a sector that requires lots of convincing and patients because people
have to invest their money for a quite long duration, in most of the cases it is little
difficult as the customers bargain a lot. Thus, customers have a great say in this
field.
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SWOT ANALYSIS OF THE COMPANY
Strength:
• Corporate collaboration
• Global presence
• Business growth
Weakness:
• Less promotion
Opportunity:
• Rise in income
• Spread awareness
Threat:
• Economic crisis
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INTRODUCTION OF THE TOPIC
recourse practices play the very important role. Human Resource practices in
organization describe about the perception of the employee towards the job,
performance appraisals.
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ways to minimize negative impacts on the environment. Perception is not
their perception of what reality is, not on reality itself; the world as it is perceived
is the world that is behaviourally important. Human nature can be very simple,
leadership. there is a known fact that without perception, nothing can be done in
an organization and for doing any task we need a perception which is accepted
by all the employees in an organization. It is the key for the manager to make her
team work and get the better output for the organization. The perception helps
each and every individual in the organization to carry the things in different ways
This study will be helpful to know the perception and satisfaction level of
employees about HR practices and policies in the organization and also this
would be a chance for them to give suggestions for the improvement in them.
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This study exhibits on the methodologies adopted by the organization to different
HR practices based on the requirements and also certainly includes the procedures
It is to be noted that all the existing HR practices of the organization are not
studied and are being assessed for various HR practices analysed wherein special
The HRM practices in banks are steadily forging ahead. Majority of the banks
have set up separate HRD Departments (HRDDs) within a decade of their coming
a fact that functioning in a majority of the banks is far from satisfactory. Instances
have been reported from within banks where HRDD discharged personnel
training.
The functioning of the HRDD in many banks shows a transition towards HRD
manpower planning and performance appraisal have been introduced. Yet, a few
other banks have made rapid strides as far as the introduction of new HRM
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activities and sub-systems are concerned, e.g. quality circles, staff meetings &
banks have also taken appreciable efforts in perfecting functions like training and
performance appraisal.
Nevertheless, there is a widespread feeling in the banking sector that there are no
sufficient pay offs from the HRM functions and the system at the operational
level are relegated to mere rituals. The linkages between HRD systems and other
related such systems in HRM are also not very obvious. There is a need to make
Indian Banking System stronger, efficient & low-cost. This can be achieved by
& processes; strengthening the prudential norms & market discipline; adoption
the cultural aspect in the Banking sector. The success of today's banking business
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will depend on how effectively and efficiently the human resources of the
The evolution of the whole banking system in India has affected the human
within a bank are discussed along with the employees, to build & plan their own
the primary strength of the industry is the human capital that is why the efforts to
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LITERATURE REVIEW
INTRODUCTION
Review of related literature serves as the base for any researcher to understand
his or her research problem clearly and to design the methodology by which the
to the current research problem are included in the literature. It gives an idea for
the researcher to determine the research problem and to frame the objectives. It
also enables the researcher for the smooth conduct of the present study. The
literature includes books, journals, magazines, reports, etc. These studies have
REVIEW OF LITERATURE
Banking is delivering variety of services to its ultimate customer right across the
counter in the service sector. The activities of banking industry are all about
customers with a smile to built and sustain long term bank-customer relationship.
The technology is merely an aid to the human face but cannot be substituted by
and learning processes in banking sector is the key to success and reward as
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human resource is supreme than all other resource in any organization. According
Human resource has substantially enhanced its value as the "Core Resource"
According to Schuler (1994), in a worldwide IBM study, 67% of the CEOs and
72% of the executives believed that the HR is critical to the success of business
today. Similar concern regarding the HR role and effectiveness in the new
business context has been articulated across the world (Shandur & Teo, 1999;
Schular, Dowling and Decieri, 1993; Scarpello, 1994; Ulrich, 1998; Wright and
McMahan, 2001; Bowen, Galang & Pillai, 2002; Mitsuhashi, Park, Wright &
Chua, 2000; Tung-Chun Huang, 2002; and Agarwala, 2002. Empirical studies
have also found that efficient use of HR has been instrumental in forging larger
gains.
between investment in the HR and the firm performance. It was in line with the
past research findings. Some of the studies conducted in the recent past have
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shown encouraging results. (Kleiner, 1990; Boudreau, 1991; Johnes and Wright,
1992; Dyer and Reeves, 1995; Becker and. Gerhart, 1996; Guest, 1997; Delery
and Doty, 1996. In their study of the HR practices, Huselid and Becker (1997)
and Bilmes et al. (1997), found that differences in HR practices are associated
resolved that reasonable changes in an HR system can affect a firm's market value
Welbourne and Andrews (1996). Sharif, Dowling and Liesch (1998), found that
Similar results were found by Huselid, 1995; MacDuffie, 1995 and Huselid and
Becker, 1995. According to Bandarker (2003), "some of the global giants (ABB,
GE, IBM and Motorola) who underwent transformation, made specific efforts at
According to Miejia, Balkin, & Cardy (2003), HR mean the "people who work in
individuals involved."
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According to Pal (1997) ,"it includes the various facets of human energy and
physical and mental strength, capacity for growth, etc. The people working in an
industry. It may be mentioned here that very limited research has been conducted
The following review of literature will unfold a broader canvas of empirical and
practices in the banks and its positive impact on individual behavior, performance
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Schematic view of definitions of variables used from literature perspective
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OBJECTIVES OF THE PROJECT
Objectives: -
Employee retention & Training practices in public sector and private sector
banks in India.
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HYPOTHESIS OF THE PROJECT
performance.
banking sector.
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STRUCTURE OF THE INDIAN BANKING
Banks in India can be classified into two categories, commercial banks and
are two types of Banks, namely scheduled commercial banks and non-scheduled
1. Public sector banks which includes SBI (State Bank of India) & its associates,
2. Private sector banks, consisting of Indian private sector banks (which can be
sub divided into two i.e. banks existing prior to 1991 and banks established after
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RESEARCH METHODOLOGY
The research design is the arrangement of conditions for collection and analysis
of data. The research design is undertaken for the study in descriptive. In which
collected data from the employee in the company by asking the open-ended
questions.
Sources of Data: -
1. Primary Data
Primary data is collected for the first time by the employees of the company
while working hour of the employee and collect a primary data from them.
2. Secondary Data
• Journals
• Research Papers
• Company Websites
• Brochures
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Secondary data is based on information gleaned from studies previously
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METHODOLOGY OF DATA COLLECTION
Research Techniques: -
1) Interviews
2) Tests
3) Surveys
4) Observation
In this project the research technique which is used to gather data is published
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DATA ANALYSIS AND INTERPRETATIONS
Since each of the organization does possess certain unique characteristics, the
results are bound to differ from each other. Table 1.1 and 1.2 depicts the overall
includes PNB and SBI. The results of public sector and private sector differ, but
also the results of the organization within the same sector differs. It is clear from
the table 5., that the highest percentage of 32.5% of managers from PNB strongly
agree that general climate of an organization is good that plays important role to
improve the performance of an organization while SBI with 34.9% of agree and
leads all the organizations with the perception the OCTAPACE culture has direct
The result from the table shows that 62.1% of managers of PNB perceives that
bank has good selection process and techniques that leads to effective
(p- value ≤0.0001). The table shows that 63.6% of PNB managers agree with the
statements of Job definitions followed by SBI with 37.0% . It is clear from the
result that if job description and job specifications will be clear to the employees
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that will directly improve performance of an employees and leads to the increase
The majority of the managers from all the sample study organizations either agree
or strongly agree that career planning is clear to all the employees and is
statistically significant. The table also depicts that the employee's participation is
and SBI agree with the performance appraisal variable of HRM practice with the
highest percentage of 50.6% in PNB and SBI (40.5%) which implies performance
appraisal and organizational performance are closely linked with each other.
57.6% of PNB managers agree with the training variable of HRM practice
followed by the managers of SBI with 50.9% .The results shows that 29.1% of
PNB managers strongly agree that company takes care of employees while setting
statistically significant.
After analyzing the above table 1.1, we can accept all alternate hypotheses that
HRM practices are closely related with organizational performance and HRM has
also clear from table 1.2 that overall perception of subordinates varies from PNB
and SBI. For general climate, OCTAPACE culture and selection the highest
and 26.8%) and are statistically significant with p-value ≤0.0001. In job definition
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the highest percentage of strongly agree is shown by the subordinates of PNB
The respondents from both the banks agree in the following order PNB (38.1%),
and SBI (33.3%) towards the career planning of HRM variable .It was observed
appraisal and SBI (25.7%) and is statistically significant with p-value ≤0.0001.
The highest percentage of agree for training variable is shown by the subordinates
The table depicts that 34.5% of PNB subordinates agree with compensation
statistically significant with p-value ≤0.0001. From the table 1.2 it is clear that
HRM practices are positively related with organizational performance and HRM
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Table 1.2. Index of overall perception of subordinates towards Human resource
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Comparing the organizations within the public sector, it is amply clear from the
results presented in the table no. 1.3 that mean values of all HRM practice
variables among managers in case of PNB are higher than the mean values of
The table under reference depicts that the overall satisfaction/ perception of
managerial staff fall in the satisfactory range of scale. The overall mean values,
of managerial group are > 70% except for employee participation and
compensation. The table also depicts that the overall mean values of
of mean score >60 in PNB except for the employees participation and
compensation.
The table also shows that managerial staff recorded highest mean and scored
>85 % against selection with the mean score 4.44. On the other hand
career planning.
The table also reflects the lowest mean score 3.05(51.25) of managerial staff
recorded against the compensation variable. The rest of the variables scored by
manager's shows reasonably good response. When we look at the table 5.30, the
interesting observation comes into light that subordinates express positive view
to subordinates. The table amply that the overall mean values of managers
Recorded >60 % for HRM variables except for employees participation and
compensation.
The table also shows that managerial staff recorded highest mean and scored
>70 % against job definition with the mean score 4.07. On the other hand
subordinates of SBI shows the highest mean score of 3.44(61.00) against job
definition . The table also reflects the lowest mean score 2.54(38.50) of
managerial staff recorded against the compensation variable. The rest of the
at the table 5.31, the interesting observation comes into light that subordinates
subordinates is concerned.
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It is clear from the table that overall mean score or its percentage linked across
all the HRM practice variable of the employees both managers and subordinates
in SBI are less satisfied as compared to the employees of PNB. Thus it is clear
from the table 5.30 that contradictory statements among the managers and
subordinates in both the organization are observed. Managers claim that top
management goes out of their way to make sure that employee enjoy their work.
Managerial personnel also claim that they always help their subordinates and
The situation in case of PNB is comparatively better than SBI which is clearly
reflected from overall mean values and their respective percentage ranging
in case of subordinates of PNB. While in SBI overall mean values and their
managers are more satisfied than subordinates towards the HRM practices in the
sample study organization. We can also conclude that satisfaction level of PNB
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employees towards the HRM practices is higher than SBI employees. Higher
alternate hypothesis is accepted the HRM practices are closely related with
Table 1.3. Perceptions of managers and subordinates towards the overall HRM
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FINDINGS OF THE PROJECT
Job analysis
to Dessler (2020), Job analysis is the procedure that determines the duties
for them.
After job analysis, the next part is recruitment and selection. Recruitment
and selection involve the process of encouraging people to apply for the
position and finding skilled and talented people for the position.
Compensation
workplace flexibility.
defined as "a set of energetic forces that originate both within as well as
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Building employee relations and engagement
Taylor, 2014).
workplace and domestic violence are all covered under the umbrella
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CONCLUSIONS AND SUGGESTIONS
Most of the researchers and the human resource practitioners agree that
performance of employees is the key to success for any organization. The better
the employees perform, the more the successful the organization is. If the
organizations do not focus on its human resource management, not only the goals
their goals. The study of HRM practices and its impact on organizational
review the HRM practices in the sample study organization and d) to provide
some relevant measures that can enhance the organizational performance of the
sample organizations under study . The results also indicate that the employees
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of PNB are more satisfied than the employees of SBI In order to achieve and meet
with the worldwide standards and to sustain in a competitive market banks need
to create such an organizational climate and implement HRM practices that has
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LIMITATIONS AND DIRECTIONS FOR FUTURE
RESEARCH
SBI. The research study made number of limitations. The main limitation of this
research study is about sampling issue as the small sample size was small that
may have affected the research results. Even our research findings might have
Nonetheless, this model has provided insight into possible reasons for
the employees. Hence it is subject to common source and common method bias
as perception varies from person to person. The study did not cover all the
fruitful for future research emerged from this present study. In order to validate
the findings of the study, case study, focus groups and longitudinal studies are
Additionally, the research model of this study can be tested in other service
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sector like education, airlines,hotels, hospitals and tourism with the large
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REFERENCES
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Billmes, L., Wetzeker, K., & Xhonneux, P. (1997). Value in Human Resources,
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Bowen, D. E., Galang, C., & Pillai, R. (2002). The role of FIRM: An
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Chiang, C. F., Back, K., & Canter, D. (2005). The impact of employee training
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