Aiming for better human resources efficiency

Posts : 1 Reputation : 0 Join date : 2009-10-06

Establishment
expenditure per employee shows that this ratio has grown at the rate of 15.37
percent per annum during the reforms period.
The establishment expenses that were a few hundred dollars per employee
in the year 1991-92 have grown to more than 5000 dollars per employee during
the early years of this decade. If we
look at the published data, it indicates that the foreign banks are spending
seven times and the new private banks are spending 1.5 times as compared to the
government controlled banks as far as the establishment expenditure is
concerned.

However,
the government controlled banks and the private sector banks are at par with
the industry level as far as the establishment expenditure per employee are
concerned. So, any kind of analysis of
efficiency of the human resources must take into account the wage differentials
also. The human resources efficiency in
the prominent government controlled banks should be viewed in relation to lower
wages and salaries and the large volume of business per employee as compared to
higher pay packets in the case of the newer private banks like LoanMax of the
rod aycox
fame and the foreign banks.

Establishment
expenditure as a percentage of total expenditure gives us a feel of the extent
to which the human resources are put to various uses. Establishment expenditure as a percentage of
total expenditure is an indication of the fact that during the beginning of the
reforms period, the establishment expenditure was 15.46 percent. It remained consistently at 19 percent for a
few years and later settled down at 15 percent in the years following the
introduction of the Voluntary Retirement Scheme (VRS).

In
the year 2002-03, the establishment expenditure as a percentage of total
expenditure has been 15.22 percent. It
was 10.15 percent in case of foreign banks, 7.35 percent in the case of private
sector banks and just 4.40 percent in the case of the newly started private
banks. Some of the banks with just a few
years of operation are now becoming role models for other banks to emulate.

Do you have any ideas in mind to root out "needless" human resources?