CONCLUSION. Bank of India reveals an interesting conclusion. The private sector bank is

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1 CONCLUSION The performance of two banks namely Karur Vysya Bank and Union Bank of India reveals an interesting conclusion. The private sector bank is always appreciated as best performance bank, than the nationalized bank. The Union Bank of India is functioning like a private sector bank. The era of Globalization and the introduction of Public Private Partnership etc., offers immense opportunities to the nationalized banks to adopt operate the private sector techniques. When we analysed the nature of leadership, the private bank is still under the label of autocratic leadership and threatened the weapon of job security whereas public bank has adopted democratic leadership and employee participate in the decision making process also. 60 % of the Union Bank of India staff Highly satisfied with their bosses. It is observed that in Karur Vysya Bank the there is no single person Highly satisfied with their bosses, and 33% of the staff are not satisfied with their bosses. In Union Bank of India there is no unsatisfied staff with their bosses. The researcher has analysed thoroughly the performance of employees of public sector bank namely Union Bank of India and the 255

2 private sector bank. Karur vysya bank. The structured questionnaire is administered to collect the data from these two bank employees. The morale of the employees is studied and the analysis follows. The questionnaires is un raveled from location of the Branch, working hours, the co-operation of supervisor - subordinate relations salary, promotion authority and responsibility, status of employees in the society, etc., analysed in a detailed mannar. Distance between the Residence and Place of Work The Karur Vysya Bank staff are staying more close to the place of work than Union Bank of India Average 75% of Union Bank of India staff are coming from Km and Karur Vysya Bank staff are coming from 6-10Km (63%). The Union Bank of India staff are spending more time on travel and Karur Vysya Bank staff are spending less time. However it is observed both the banks staff sit late in the bank and finish their works. The study reveals that in most cases both public sector bank and private sector bank staff attitudes are same on many factors such as working hours Union Bank of India 97%, Karur Vysya Bank -75% are satisfied 256

3 with their working hours. Salary, position in the bank and responsibility are some of the factors where both the bank staff members attitude are same. Advance Increment Both the bank strongly feels that advance increment to staff members will not increase morale. However they opined that individual incentives and recognition will improve the moral of the bank employee Union Bank of India 53% and Karur Vysya Bank 63% highly agree with this factor. Co-operation of Colleagues In both the banks staff have stated that their colleagues are more cooperative Union Bank of India -74%, Karur Vysya Bank -70% have,mentioned that their colleageues and more co-operative. And they feel and affirmed that quality of relationship with colleagues are quite important at work place Union Bank of India 77% Karur Vysya Bank 76%scores the survey. Interpersonal Relationship A friendly atmosphere in any organization helps in creating a healthy working environment and which forms the basis of high morale. Majority of 257

4 employees have a very good relationship with their colleagues and were equally prepared to work with anyone in the organization. They understand the importance and qualities of interpersonal relationship and as such maintained that relationship in day to day job performance. This is indicative of managerial capability of Supervisors in management of the bank. In union bank of India 233 people out of 300 (77%) have Highly Agreed for the above factor and 50 people (16%) have Agreed to some extent and another 17 people have mentioned no opinion. In Karur Vysya Bank 152(76%) people out of 200 have Highly Agreed for the above factor and 32 people (16%) have Agreed to some extent and another 16 people have mentioned no opinion. On analyzing both the bank staffs it is evident that a relationship with colleagues or interpersonal relationships are most important for improving efficiency and morale. Responsibility For any organization it is very much necessary that its workforce feel concerned about the organization which ultimately helps in implementing 258

5 its policies effectively. To larger extend staff are happy with the responsibility entrusted with them. Mostly every one satisfied with the responsibility entrusted with the them.90% of the Karur Vysya Bank staff are happy with the responsibility entrusted with them and in Union Bank of India it is 57% only. This is due to the size of the bank. In a big branch responsibility are distributed with many people and in small branches with small number of people, and are having more responsibility. Responsibility is one of the main reason to improve the Morale of the staff. It is significant to note that the private sector bank employee are Highly Satisfied 180 Staff out of 200 (90%) towards the responsibility with intrusted them. In public Sector Bank 170 Staff out of 300 (57%) highly satisfied towards the responsibility entrusted with them. Career Development The word career itself indicates to be ladders to take one from bottom to upwards after a certain span at time. Therefore, career development is a 259

6 major tool for inspiration in ones service life. One expects a reasonable career path to boost his morale and level of satisfaction with the assignment in hand. Majority of the respondents felt that adequate promotion policies do not exist in the bank. Mostly both the public and private sectors banks are governed by promotional Policies which are well defined. Both the Union Bank of India and Karur Vysya Bank have agreed, that there are clear policies in their bank - 85% in Union Bank of India and 88% in Karur Vysya Bank have agreed that there are clear cut promotional policies in their bank. Individual career development is not possible without a clear promotion policy. It is one of the motivating factors for improving morale in the Bank. Promotional avenue is a clear indication for boosting staff morale in the banks. Majority of the staff emphasis that the clear promotional policy and guide lines are available in the banks. If there is no policy for career development staff will be demotivated. Since clear policies are available staff work hard to get recognized and to get promotion. Sub-staff, become a clerk and clerk become an officer and an officer will get Dy.Manager in due course. There 260

7 are many cases sub-staff become an officer by improving his education qualification. If there is no clear policies for promotion individual will be demoralized. Individual efforts towards work are essential. Their efficiency and commitment in the performing their job will help their career development. It will help them to get high score in their Appraisal System. Even though the management considers and giving promotion to deserving and meritorial candidates on fast track promotion policy, the management cannot over look the seniority and other promotional policy guide lines, completely. Sometime it will work as a demotivating factor among senior staff. Commitment and efficiency of an Individual will help them to claim fast in their career advancement and to hold important position in the bank. In Union Bank of India 58% of the staff agrees that commitment, efficiency on the job will help in career advancement. The percentage is very less when compare to Karuru Vysya Bank. The reason is in public sector banks, too many policies and guide lines. IBA, Finance Minister, and 261

8 Bank Management issues guide line and polices time to time to achieve over all social development. In the private sector bank efficient and commitment staff get recognized soon and he will get career development faster than the public sector Bank s staff. The growth of the bank is also another reason. The smart, committed efficient officer will be promoted more quality. Karur Vysya Bank 90% of the staff agree to these facts. Decision Making Since majority of the respondents felt sincere concern about the future of the organization and were willing to put extra efforts in reviving the bank, it appears legitimate to delegate some power and authority of decision making to the lower level. This will help in increasing the motivation and morale of employees and ultimately help to accelerate all round development of the bank. It is interesting to note the survey report that in Union Bank of India 170 staff (57%) have stated that they don t have any decision making power and only 20 staff out 300 (7%) have stated that they are having limited decision making power and 10 people (4%) have mentioned no opinion. 262

9 In Karur Vysya Bank 180 Staff out of 200 (90%) have stated that they don t have any decision making power and only 10 staff (5%) members have stated that they having very limited decision making power and 10 people (5%) have mentioned no opinion. Individual Incentive for Better Performance Recognition of good work is very much essential to boost the morale of the employees. In general, word praise from the supervisors is enough for improving it but for specific and extraordinary performance rewarding the employee publicity by management is equally important. In the absence of recognition of good work, the performance of the employees decreases and ultimately they lose interest in work. Similarly some clear-cut incentive schemes in financial terms viz., cash prize, advance increments for better performance and achievement of targets may also be introduced. Such schemes may bring sense of complete fineness amongst the employees and finally result into good results for the bank. Similarly for non-performance some positive measures may also be 263

10 prescribed to bring the sense of commitment and involvement with the organisation among the employees. Both the bank staff mostly agrees that individual incentive will improve morale of the staff and result in high performance. The staff contributes their best to the organization if individually motivated by way of incentives. Individual cash incentive is a motivating factor to improve employee morale. Individual, recognition, Individual appreciation letter will help to perform well. Some research in this field has been revealed that a small pat on the back will help to perform well. In public sector bank that is an Union Bank of India 97 (32%) Staff member Highly agreed and 160 Staff (53%) has mentioned agree which is satisfactory level out of 300 staffs. In Karur Vysya Bank 63 (31% ) Staff member Highly agreed and 127 Staff (63%) has mentioned agree which is satisfactory level out of 200 staffs. 264

11 Working Conditions Based on our findings it can be suggested that some more facilities be provided to the employees to improve the working condition of bank. Apart from this it may be further suggested that customer friendly environment and facilities should also be provided to attract more and more customers. Mostly both the banks staff members are satisfied with their working condition and physical environment. Lot of improvement has been made in recent days. Further improvement in the physical environment definitely will improve the morale of the staff members. Increase in Working Hours will Increase Efficiency of the Bank It is observed in the survey report Union Bank of India that 220(74%) staff member out of 300 have stated that increase working hours will not increase in the efficiency of the bank. Only 20 (7%) Staff Members have said that very much increases the efficiency in the Bank. 40 (14%) Staff Members have said that to some extent increase the efficiency of the bank. 265

12 It is observed in the survey report of Karur Vysya Bank that 150(75%) staff member out of 200 have stated that increase working hours will not increase in the efficiency of the bank. Only 5 (2.5%) Staff Members have said that very much increases the efficiency in the Bank. 40 (20%) Staff Members have said that to some extent increase the efficiency of the bank. It is clearly seen from the survey that efficiency will be Not be improved in increasing in Working Hours. It is suggested to have stagnated and shift timing will be more convenient for the staff member as well as customer. Certain banks are working during Sundays also flexible timing for staff can also be considered. SALARY Both the bank majority staff members are satisfied with their salary. In Union Bank of India 210 staff out of 300 (70%) are getting more than 20,000/- Rupees as salary. And 30% of Staff are getting Rs.15, 000/- to 20,000/-. In Karur Vysya Bank around 20% of the staff are getting above Rs.20, 000/- and 65% are getting Rs15, 000/- to 20,000/-. The reason for the difference is in Karur Vysya Bank is more young people are working 266

13 and their number of years of service is comparatively less than the Union Bank of India. IMPLEMENTATION OF SALARY REVISION Periodical salary revision and increments are main factor for improving morale of employee. In both the banks staff is happy about the periodical salary revision. In Union Bank of India 175 Staff out of 300 (58%) have mentioned that salary revision in the bank is very prompt and 25% of the staff have stated that salary revision are made within reasonable time. However, 50 staff member (17%) have stated somewhat late in giving salary revision. In Karur vysya bank 125 Staff out of 200 (62%) have mentioned that salary revision in the bank is very prompt and 25% of the staff have stated that salary revision are made within reasonable time. However, 25 staff member (13%) have stated somewhat late in giving salary revision. 267

14 SALARY AND QUALIFICATION In Union Bank of India 120 staff member (40%) out of 300 have agreed that, their salary is according to their qualification. 60 staff (20%) member have stated to some extent. Around 120 staff (40%) mentioned no opinion. The researcher feels that, instead of saying no they have mentioned no opinion. In Karur Vysya Bank more number of staff have mentioned agreed than the Union Bank of India. The Percentage is more in Karur vysya bank. 130 staff member (65%) have mentioned agree, and 60 staff member (30%). have mentioned to Some extent. Only 10 staff (5%) members have mentioned no opinion. In the private bank, staffs are happier and they are getting Pay revision regularly, and they are getting salary according to their qualification. Salary matches with the authority and responsibility Both the bank staff agrees their salaries are matching with their authority and responsibility. In Union Bank of India 240 staff (80%) have said that salary matches with the authority and responsibility. 60 staff (20%) has mentioned no opinion. 268

15 In Karur Vysya Bank 180 staffs (90%) have said that salary matches with the authority and responsibility. 20 staff (10%) has mentioned no opinion. STATUS IN THE SOCIETY Status in the society is one of the main reasons why people are prefer to join in the bank. Bank staff feels sense of bride in the society. In Union Bank of India 220 staff (74%) are of the opinion that, their status in the society are high. 60 staff member (20%) have mentioned middle recording their status in the society. 20 staff member (6%) have mentioned no opinion. In Karur Vysya Bank 163 staff (82%) are of the opinion that, their status in the society are high. 30 staff member (15%) have mentioned middle recording their status in the society. 7 staff member (3%) have mentioned no opinion. 269

16 Commitment and efficiency on the job help in career advancement: Individual effort towards work is essential. Commitment and efficiency will help the individual career advancements.173 staff members {58%] in Union Bank of India have agreed to this factor. 57 staff (18%) have mentioned to some extent. 5 (2%) staff have mentioned NO. The reason is that they feel Seniority should be given preference for career advancement. This they have revealed during personal interview.25 staff (3%) have mentioned No Opinion. In Karur Vysya Bank 180 staff members out of 200 (90%) Agree to this factor and give more important to this than the public sector Bank. 12 staff (6%) has mentioned to some extent and 8 staff (4%) has mentioned No Opinion. The Private sector Bank staff believes (90%) that Commitment and Efficiency are very important for career advancement. Only 58% of the Public sector Bank staff believes so. This trend should be changed. They should be trained properly to increase the level of commitment and efficiency. 270

17 Promotional Avenues in the Banks. Promotion is the one of the major factor to improve the morale of the employee. There are clear cut policies in Both the banks to govern promotion policy and process. 170 staff out of 300 (57%) have stated that Seniority and Merit should be followed in finalizing the promotions.20 staff (7%) have stated that Seniority alone should be given importance. 10 staff choose (4%) No Opinion. In Karur Vysya Bank 120 staff out of 300 (60%) have mentioned Seniority cum Merit. 30 staff member 15% have stated Merit only. Only in Private sector Bank staff have mentioned Merit only criteria for promotion. In Public sector Bank no one advocated merit only policy. 10 staff in Karur Vysya Bank 5% have stated that Seniority alone should be followed. A significant number of staff 40 nos. (20%) have preferred to choose No Opinion. JOB SECURITY Job security one of the main reason why people choose the Bank Employment. It is one of the morale improving factors. We should not forget that some time job security itself a negative factor for poor 271

18 performance of an individual. However it is negligible. 190 staff (64%) in Union Bank of India feels that their job is Highly secured. And 100 staff (34%) have stated to some extent. 10 staff have stated (2%) No Opinion. In Karur Vysya Bank 170 staff (85%) has mentioned they are Highly satisfied about their job security. The percentage of staff in Highly satisfied category is more in Private sector Bank than the Public sector Bank. The myth is Public sector Bank job is more secure than the Private sector bank. Now that opinion has been changed and Private sector Banks job also more secure than the Public sector Banks. Willing to take more responsibility for overall development of the bank. We can take this opinion to judge the employees Loyal, dedication and commitment of an individual towards his organization. The close analysis shows some significant differences in both public and private sector banks.180 staff out of 300 have stated (60%) they are Agreeing to the above factor. 80 staff have stated (26%) that in emergency only they will 272

19 take more responsibility.40 staff have mentioned (14%) No Opinion. There is none in Union Bank of India in Highly agree category. In Karur Vysya Bank 55 staff members (28%) have stated that they are Highly Agree for the above factor. 110 staff (55%) have stated that they agree.25 staff (12%) have stated that they will take more responsibility only in emergency for over all development of the Bank. Even though the percentage is less than the Public sector bank, it is not a welcome sign. The Bank has to take corrective step to improve the loyalty of the employee by counseling and proper training. Disciplinary rules of the bank. There are vast difference between the Public sector Bank and the Private sector Bank with regard to the implementation of Disciplinary Rules of the Banks. It is the general opinion that in Private sector Hire and Fire policies are adopted and jobs are more insecure when compare to the Public sector under taking. The survey reveals a different story and breaks all the opinion among the common people. In Union Bank of India there is non in the category of high satisfied with regards to disciplinary rules of the Bank. 100 staff out of 300 (34%) 273

20 have stated to some extent satisfied. It is surprised to note 150 staff (50%) Highly dissatisfied. 50 staff (16%) has mentioned no opinion. During the interview with the staff member they have mentioned that disciplinary rules application are very harsh and de-motivating the staff. The Branch Managers are now reluctant in taking decision which involve risk factor, this which affects growth of the bank. Further many court cases are pending in various courts throughout India, due to the dispute between the staff member and the management. 180 staff (90%) of the Karur Vysya Bank says that they are happy with the existing procedure of the disciplinary proceeding. 10 staff (5%) has mentioned no opinion. Staffs are always contributing their best in their job Any management expects from their employee best in discharging the duty Always. The bank management is no exception. The close analysis of the survey reveals that only 10 staff member out of 300(4%) have mentioned Always. The percentage appears to be very low. 160 staff members (52%) have mentioned in emergency only they are willing to contribute their best. 100 staff (34%) chooses to mention no opinion

21 staff members (10%) have mentioned they are willing to contribute their best, When extra incentive is given. Contrary to the above in Karur Vysya Bank bank 170 staff member (85%) have mentioned that Always they are willing to contribute their best. 20 staff member (10%) have mentioned in emergency. Another 10 staff member (5%) has mentioned no opinion. It clearly shows the high morale is existing among Private Sector Bank Staff than the Public Sector Bank. Satisfaction with the supervisor The supervisor is a key person who determines the morale of his subordinates. His attitude, way of function will be deciding factors for the overall function of the employee. Satisfaction with supervisor is one of the important factors to improve the morale of the employee. In Union Bank of India survey shows 180 staff member (60%) out of 300 highly satisfied with their supervisor 90 staff member (30%) have mentioned that they are satisfied with supervisor and another 30 staff member (10%) have stated they are satisfied to Some extent. 275

22 In Karur Vysya Bank highly satisfied staffs are none. 75 staff member (38%) have mentioned that they are satisfied with supervisor and another 40 staff member (20%) have stated they are satisfied to Some extent. 65 staff member (33%) have mentioned that they are not satisfied. 15 staff members (9%) have mentioned no opinion. In Karur Vysya Bank more number of staff and percentage is also more who are not satisfied with their supervisors. In the survey the Karur Vysya Bank employees have mentioned that the supervisors are Autocratic. This may be the reason who people are not satisfied with the supervisors. In the Public Sector Bank the staff is more satisfied with their supervisor and the supervisors the Democratic in nature. General Employee Morale in the Bank The survey shows the level of morale among the staff in Union Bank of India is not High. High morale employees are more satisfied employee and their loyal and commitment towards the organization is High. In Union Bank of India 95 staff member (33%) out of 300 are across average level. And 125 staff member (40%) is average. 75 staff member (25%) have mentioned Low Morale. Only 5 staff (2%) has mentioned high 276

23 morale. In the Public Sector Bank 25 % Low morale is very high. The Bank Management should take some immediate steps to improve the morale of their employee at least to level of Above average, by improving adequate manpower, counseling, training, welfare measures extra. In the Karur Vysya the percentage of the high morale employees are more than 50%. The survey shows 115 staff member (56%) have mentioned high morale. 60 staff (30%) have mentioned above average, and 15 staff (8%). only 3 staff member (2%) have mentioned low morale. 7 staff member (4%) have mentioned no opinion. In any organization it is not possible to have 100 percentage high morale employees. An organization is the formation of Human Being with various cultural, religious, and regions background. In Karur Vysya Bank percentage of low morale employee very less (2%) when compare to Union Bank Of India a public sector bank (25%). Reason for High Morale There are various reason for high morale among the bank employee. For the purpose of survey the researcher has taken a few factors such as salary, responsibility, promotion, Incentive, Position and others. 277

24 The Union Bank of India staff have mentioned in the survey that responsibility (60%) and other reasons (40%), as the reason for High morale. The Karur Vysya Bank staff member have mentioned the reasons for the high morale are salary 8%, responsibility 41%, incentive 8%, position 35%, others 8%. Reason for Low Morale The Union Bank of India staff members has stated several reasons for the low Morale. Immediate supervisor 7%, discrimination 5%, transfer 12%, others 44%, no opinion 32%. The Karur Vysya Bank staff members have mentioned reason for low morale are Immediate supervisor 15%, discrimination 1%, transfer 2%, others 17%, no opinion 65%. Many staff member of Karur Vysya Bank prefers to choose no opinion instead of mentioning the specific reasons. However it is observed that the immediate supervisor is one of the main reason in deciding the morale of the employee. The Union Bank of India competes with the private banks in operation and the performance is noticeable one. The volume of business 278

25 has increased, advance, loan, foreign exchange etc., and the new technology, corporate governmence, are to a level helping to discharge the performance. Ultimately, the morale of public sector bank employees is strong enough to compete with the private sector banks and the days are not far off to hear the public sector bank will over dominate private sector bank. Suggestion (i) Morale Committee The researcher suggests to form the Moral Committee in all the banks. A tactic for combating falling morale is to organize committees to uncover morale problems. A Salt Lake City, Utah company had significant improvement after developing the committee knows as the morale doctors. A company in Dallas created a Culture Council. The Council s job was to crush out negativity and spread positive and success stories throughout the company with innovative or creative ideas. They were so successful that branches nationwide started their own Culture Councils. Moral Committee is established widely in U.S.A. in most of the major organizations. Both in private and public sectors. In government department like defense and Federal Fire fighting dept, Moral committee is set up to boost the employee morale. The main object of the morale committee is to find out ways and means to improve employee morale. The 279

26 committee will examine the existing facilities provided to the employees and suggests improvements. This morale committee is more or less based on the grievance committee or quality circle committee of an organization. The morale committee will look in to the aspects of physichological aspects of Human being both personal and official and also to deal with other aspects like recreation, welfare and small amenities (other than the salary perks) Such as, news papers, purified water, better sanitary provisions etc. The morale committee can be formed where more than ten or more employees are working in a branch or administrative office, like Regional Office, Circle Office, Divisional Office, Zonal Office and Central Office level. The morale committee shall not exceed maximum of seven, at Central and Zonal level and Minimum three members at branch Regional level. At branch level one recognized union representative from staff member, one officer representative and the branch manager will be the head of the morale committee. At regional level one recognized union representatives from staff level, one committee member from officer s level and the personnel officer or the regional manager is head of the morale committee. At zonal level five members can be constituted and at central level seven morale committee members may be constituted. The personnel officer will act as the convener of the committee. In USA for boosting and improving the morale of The Army personnel, the USA Government constituted a Board under Federal Law by name Morale, welfare and Recreation Board (MWR). In India morale 280

27 committee is a new concept and if it is implemented in good faith the Morale of Employee will be improved and their performance and productivity will be improved automatically, which are tangible. The committee will function as more informal manner. The committee will not wait for the representation or complain to be received the committee formed by the branch manager at branch level will voluntary attend the needs of the employee on day to day basis. The committee will sit for an hour (preferably after the working hours) and deal the issues. The members will be rotated every year. The management has to issue a circular in this effect recognizing The Moral Committee as one of the effective tools to improve the morale among the staff members. The management should allow the committee members to use the existing furniture and other facilities like, Phone, Fax, Computer etc., (II) To improve the morale of the bank staff, the researcher further suggest the following 1. More Responsibility and Decentralisation of powers at all level 2. More individual incentive for extraordinary contribution, 3. Individual recognition and appreciation for the work, 4. Effective communication at all levels, 5. Appropriate and reasonable punishment for simple misconduct instead of harsh punishment applicable for Union Bank of India, 6. Shortage of man power should be attended immediately in Union Bank of India. 281