Development of Human Resources: Caiib Paper 1 (Module C), Unit 2

Development of Human Resources: Caiib Paper 1 (Module C), Unit 2

Dear Bankers,
We all know that CAIIB exams are conducted by the Indian Institute of Banking and Finance (IIBF).  CAIIB is said to be one of the difficult courses to be cleared for the bankers. But we assure you that with the help of our “CAIIB study material”, you will definitely clear the CAIIB exam.
CAIIB exams are conducted twice in a year. Candidates should have completed JAIIB before appearing for CAIIB Exam. Here, we will provide detailed notes of every unit of the CAIIB Exam on the latest pattern of IIBF.
So, here we are providing “Unit 2: Development of Human Resources of “Module C: HRM in Banks” from “Paper 1: Advanced Bank Management (ABM)”.

The Article is Caiib Unit 2: Development of Human Resources


HRD and its subsystems
  • Performance Appraisal
  • Potential Appraisal
  • Career Planning
  • Training
  • Organisational Development
  • Rewards
  • Counselling
  • Quality Circle
  • Role Analysis, and others.
Goals of HRD are to develop
  • Capabilities of each employee as an individual
  • Capabilities of each individual in relation to his or her present role
  • Capabilities of each employee in relation to his or her expected future role(s)
  • Dyadic relationship between each employee and his/her supervisor
  • Team spirit and functioning in every organisational unit (department, group etc)
  • Collaboration among different units of the organization
  • Organisation’s overall health and self-renewing capabilities, which, in turn increase the enabling capabilities of individuals, dyad teams, and the entire organization

The typical systems developed to enhance achievement of these HRD goals include:

  • Training and Development
  • Performance Appraisal, Feedback and Counselling
  • Potential Appraisal, Career Planning and Counselling
  • Organizational Development
  • Human Resource Information System
Job/Role Analysis
  • Job Description: This simply records each and every component of the job which an individual has to perform in a given set-up.
  • Job Specifications:  On the basis of the job description a list of requirements is prepared in terms of educational qualification, age, work experience, specific knowledge, skills, expertise, temperament, etc.
  • Job evaluation: This is primarily used to compare similarity between jobs within an organization or between organizations or even in an industry.
  • Task: This is a basic element of a job and as such requires a person to achieve a specific product. In the process the individual is isolated from others.
  • Job: This is a complex system of tasks requiring an individual to achieve an overall product and still making the relationship irrelevant.
  • Position: Puts an individual in a hierarchical pattern, expecting those below to report or surrender to higher positions and conform to their expectations while those higher up may be led to exploit the relationship and demand conformity.
  • Role: Emphasizes on the pattern of (mutual) expectations.
  • Work: Involves a more complex pattern as it goes a step further to encompass socio- psychological relationship.

♦Training and Development – Role and Impact of Training

Training and Development system as part of the HRD efforts and this involves:

  • Identification of Training Need
  • Designing the Training
  • Conducting the training
  • Evaluation of Training
  • Selection and development of trainers
Purpose of Training and Development
  • Training is for learning related to present job;
  • Education is for learning to prepare the individual for a different but identified job; and
  • Development is learning for growth of the individual not related to a specific present or future job.

Imperatives of Adult Learning

  • It is interesting to note that though most of the people think that Adult Education is a recent phenomenon, but it is not so. In ancient times great teachers like Confucius, Lao Tse, Hebrew Prophets, Jesus, Socrates, Plato, Aristotle – were ‘teachers of  adults’. To these teachers ‘learning was a process of active inquiry on the part of the learners’; they invented ‘techniques for involving the learners in active inquiry.’
Learning Theories
  • Mechanistic or Behaviourist Theories: These theories hold that the learner is passive in the process of learning. If one introduces an input (stimulus) into a human being, you    will get a predetermined response. In other words, learning occurs only when a learner    is conditioned to give the ‘right’ response to a given stimulus.
  • Cognitive Theories: These theories equate man with his brain, based on the proposition that one thing that distinguishes human beings from other living things is that they possess brains that are capable of critical thinking and problem solving. The purpose of learning therefore is to teach the brain to engage in such critical thinking and problem solving.
  • Organismic or Humanistic Theories: These theories hold that learning occurs only when learners have the ‘freedom to learn’ what is particularly relevant to their personal life situation. The purpose of learning is to encourage each individual to develop his or her full, unique potential.

There are theories related to the variables associated with the actual Teaching-Learning situation. Decenzo and Robbins (1995) list some as:

  • Learning is enhanced when the learner is motivated: This means that the learning experience must be so organized that it should create desire to learn.
  • Learning requires feedback: Knowledge of results is necessary for learner to improve upon his mistakes. The feedback also tends to act as motivator when the learner knows that he is proceeding in the right direction.
  • Reinforcement increases the likelihood that a learned behavior will be repeated: Behavior that is positively reinforced are encouraged and therefore sustained.
  • Practice increases a learner’s performance: Learners need to practice what they learn.
  • Learning must be transferable to the job: Learning a skill just for the sake of it will not work; it must be possible to apply what is learnt.

Systematic Approach to Training (SAT)

  • Will the training to be done internally or externally? Does the organization have or intend to develop an in-house training centre?
  • How much and what kind of training will be done externally and is this also an essential part?
  • Who are the functionaries responsible for administering the training system?

SAT: The process

  • Step 1: Training Need Analysis (TNA) and Identification of Training Needs
  • Step 2: Preparation of a Training Plan;
  • Step 3: Conduct of the training which includes designing the programme in terms of the time, duration, target group, sequence of inputs and methodology;
  • Step 4: Evaluation of the Training Programmes and the Plan;
  • Step 5: Selection and Development of Trainers.
Support systems for Training and Development
  • Performance Appraisal System
  • Human Resource Information System
  • Organisational Culture

♦Attitude Development

The term ‘attitude’ is frequently used to describe people in terms of their behaviour and its impact on behaviour. More precisely, an attitude can be defined as a persistent tendency to feel and behave in a particular way towards some object.

Components of Attitudes

Attitude can be broken down into three basic components, viz., emotional, informational and behavioural.

  • The emotional component involves the person’s feelings or their affect—positive, neutral or negative—about an object.  Emotions play a very important role in organizational behaviour of employees. The expression of emotions, either positive or negative, is also important to work behaviour.
  • The information component consists of beliefs and the information that an individual has about that object. Generally, the beliefs or the information are founded on insufficient observations or opinions which may not be empirically correct.
  • The behavioural component consists of a person’s tendency to behave in a particular way towards the object.

Attitudes serve four important functions in the process. These are:

  • The Adjustment Function,
  • The Ego-Defensive Function,
  • The Value-Expression Function
  • The Knowledge Function.
Changing Attitudes

Barriers to attitude change:

  • Prior commitment to a particular thing
  • Insufficient information

Overcoming the Barriers to attitude change:

  • Use of Fear
  • Provide New Information
  • Resolving discrepancies between attitude and behaviour
  • Influence of peers, friends and opinion leaders Co-Opting – Getting the dissatisfied people involved in improvement process

♦Career Path Planning

It is relevant therefore, to examine the underlying concepts in the generic observation that:

  • Individuals desire and expect change at certain stages in life:
  • There is a (predictable) pattern in these changes; and
  • There is a feeling of frustration if things do not happen as desired or expected.
Erikson the first stage in life adulthood is:
  • Adolescence: In this stage individual’s development is to achieve an ego identity. Individual is involved in reconciliation process of what he perceives himself to be, what he thinks others perceive him to be and make an adjusted assessment to form his identity.
  • Young Adulthood: It is the next stage where he/she starts developing relationships with individuals, group or occupation. This could be establishing a close relationship, developing an interest group or a work group.
  • Adulthood: The stage is that of guiding the next generation and during this stage one is passing on the knowledge, values or sponsoring the younger colleagues and in the Maturity: A stage when person attempts to achieve ego integrity by examining whether life has been meaningful or satisfying.
CAREER ROLES given by Dalton
  • Apprentice: This is the beginning of the career. An individual does routine work under the supervision of the mentor, who helps to learn. At this stage the individual needs to accommodate himself to a certain degree of dependency.
  • Colleague: This is the beginning of making an independent contribution though still in a subordinate role. There is less dependence on superiors for advice and direction.
  • Mentors: This stage signifies the beginning of complex functions. The individual develops ideas, manages others, and must learn to assume responsibility for his subordinates’ work.
  • Sponsors: At this stage the individual needs to broaden his perspective and think long- term as he is now a part of the top management. He is required to define the direction in which the entire organization or at least a major segment of it would develop.
Career Concepts
  • Linear Career Concept: Plan for upward movement within the same profession using organisational hierarchy
  • Steady State Career: Individuals choose a profession, acquire higher skills, but do not choose to go higher up in the hierarchy
  • Transitory Pattern: Individuals shift from one job to another not necessarily related to the previous one
  • Spiral Career: Individuals take on a new job, work hard, perform well, move up in the status and rank, then move on to another type of work and follow the same pattern of development and performance
  • Plateau Career: Reaching a level higher than where one started but then continuing on the same level
Career Anchors

This has three components:

  • Self-perception of talents and abilities based on one’s performance;
  • Self-perceived motives and needs based on self-diagnosis and feedback; and
  • Self-perceived attitudes and values based on interactions with the norms and values implicit in the organization.

Schein’s Career Anchors

  • Technical or Functional Competence: Some individuals ‘fall in love’ with a particular field or function. They desire to be outstanding in the field; their self-concept is associated with their skills in that area.
  • Managerial Competence: Some individuals like to manage. Their early career experiences indicate to them that they will be able to rise in the management hierarchy.
  • Security: Some individuals seek a secure work environment and career by tying themselves to a particular organization or geographical location.
  • Creativity: There are some individuals who want to create something new. They like to start something and make it a success.
  • Autonomy: Another group of individuals finds organizational life unpleasant or difficult. They prefer to maintain their freedom.
Career Path Planning System

Main responsibilities of the organisation while developing and implementing a career plan are:

  • The policy of career planning is made explicit. It lays down the benchmarks for performance at critical stages which the employees must attain
  • It is made clear that the career path is a facility for growth and not a right for advancement
  • The career path – a sequence of job assignments, training requirements and promotion to higher level – is made known to the employees from the time of entry. Performance feedback is a part of the career path
  • The career path is followed uniformly for all employees without any bias/prejudices
  • It should be flexible to accommodate variations which may be needed to deal with the given circumstances

♦Self Development

Self can be categorized into two parts, namely, the ‘patent self’ and the ‘inner self’.

  • The patent self can also be called the external self which normally comprise individual’s identity and physical features.
  • On the other hand the ‘inner self’ signifies the behaviour patterns, values and other.

The self-development essentially refers to developing a mature personality who can handle different tasks and situations with comparative ease. and  in this  direction seeking self improvement becomes an ongoing process. It is the process of discovering and utilizing the tremendous potential within one’s individual personality.

The context of our discussion on self- development in relation to the organization, the following aspects will be discussed.

At Individual level
  • Motivational Pattern
  • Locus of Control
  •   Power Bases
At Interpersonal level
At Group level
  •   Being effective member in the Work Group


Individual level
  • Motivational Pattern: An individual has to make conscious efforts to be aware of what his life goals are. Awareness of one’s own need bases can enhance an individual’s acceptance of self- concept.
  • Locus of Control: Personal efficacy is also related to an individual’s ability to take the initiative which   closely relates to his belief that he can change things. The concept of locus of control given by Leftcourt (1969) and Levenson (1972) explains that individuals  have  beliefs about who is responsible for what happens in life. Some believe that events are determined by external forces like other influential persons in society, luck, destiny and  so on. Whereas some others believe that the  individuals can  determine  events.  Thus, we have individuals with more external locus of control and some with more internal  locus of control. These beliefs definitely have impact on the action orientation of individuals.
  • Power Bases: Another important concept related to influencing others is Power, Kotter (1979) has defined power as ‘a measure of person’s potential to get others to do what he or she wants them to do, as well as avoid being forced to do what he or she does not want to do.’ Distinction is also made in terms of fear or love being used as base of exercising  this power. Flanders (1970), Hersey and Blanchard (1982) and Pareek ( 1997) have contributed to the present understanding that coercive bases include organizational position, punishment, charisma, personal relationship, (emotional power), closeness to a source of power and withholding information on resources.
Interpersonal interactions: Dyadic relationship

Two individuals maintaining a sociologically significant relationship – Interpersonal relationship.

Interpersonal Needs: The interpersonal need to control is to establish and maintain satisfactory relationship including:

  1. a psychological comfortable relationship in controlling all behaviour of   other people,
  2. eliciting behaviour from them which controls one’s own behaviour.

Transactional Analysis:

  • A transaction is a combination of a stimulus and its response in an interpersonal interaction. The personality of an individual comprises collection of behaviour patterns developed over a period of time.

These life positions are described in terms of Okayness.

Thus the individuals are either OK or NOT OK. Four life positions can be described as:

  • I am OK you are OK (both have value)
  • I am OK you are NOT OK (I have value but you don’t have value)
  • I am NOT OK you are OK (You have value but I don’t have value)
  • I am NOT OK you are NOT OK (neither person have value)
Working in Teams

The term ‘Group Dynamics’ was coined in 1930s by Kurt Lewin It refers to the:

  • Internal nature of groups
  • How they form
  • Their structure and processes
  • How they function and affect individuals and organization

Stages in Group Formation and Behaviour

  • Forming (Awareness) Members with varied awareness get acquainted, understand the team’s goal and its role
  • Storming (Conflict) Conflict among the members helps the team in defining itself
  • Norming (Cooperation) How the task will be accomplished? Rules and regulations of the team?
  • Conforming (Adjustment) Adjusting one with the team expectations and norms
  • Performing (Productivity) Members behave in mature fashion and focus on accomplishing their goal. Full energy dedicated to work.
  • Understanding self helps in self-development and using one’s potential better. It is always useful to do the SWOT analysis of self to understand the Strength, Weaknesses, Opportunities and Threats. This may help in better use of strengths, overcoming weaknesses, capitalizing the opportunities and safeguarding against threats.  Refer to the concept of Johari Window given by Loft and Ingham  (1973).

The closed window is also referred as Private, being private to self.

 Emotional Intelligence

‘Emotional Intelligence abilities such as being able to motivate oneself and persist in the face of frustration; to control impulse and delay gratification; to regulate one’s moods and keep away distress from swamping the ability to think; to empathize and to hope’.

  • Self Awareness: Ability to recognize, understand one’s mood, emotions and drives,  as well as their effects on others.
  • Sell Regulation: Ability to control or redirect disruptive impulses and moods and propensity to suspend judgment – to think before acting.
  • Self Motivation: Passion to work for reasons that go beyond money or status and propensity to pursue goals with energy and persistence.
  • Empathy: Ability to understand the emotional make-up of others and skill to treat people according to their emotional reactions.
  • Social skills: Proficiency in managing relationships and building networks and ability to find common ground and build rapport.


Morale is an important mental state and the spirit of a person or group which is dependent on a number of intangible factors within the organization. High morale of an individual or a group contributes significantly to the achievement of organizational goals. Morale is generally exhibited by confidence, cheerfulness, discipline, and willingness to perform assigned tasks.

Employee Morale Booster
  • Welcome Ideas: Employee morale improves when staff feels they are valued. Share and implement their innovations and ideas.
  • Keep Score: Mount a large score board in the office to recognize top performers and to motivate those on the bottom of the list.
  • Inspect: The old management adage, inspect what you expect is true. Companies with a lack of focus can confuse staff and lead to less morale.
  • Thank You Note: Send a special ‘thank you’ letter to your staff’s family or spouse, praising their good work and efforts.
  • Huddle: Have a daily morning huddle to highlight tasks for the day and to cheer yesterday’s wins.
  • Open Up: Provide an open forum or one-on-one time to allow employees to express their concerns and feelings can be an easy means to boost morale.
  • Have Fun: Special events and outside work activities can take the pressure off the day- to-day grind in the office.
  • Show Charity:  Get your staff involved in a bigger cause to help them see there is more  to life than work.
  • Add Perks: Use low cost perks such as a Foosball table in the lunch room.
  • Fire Staff: Sometimes the root cause of low employee morale can be a staff member whose negativity brings down the group. Even a top performer can bring down staff behind your back.
  • Measure It: Keep tabs on the levels of morale in your business by regularly measuring employee satisfaction.

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