Antczak Zbigniew, Ranking Analysis of Human Resources Management in a Bank. Results of Research [art]

Zbigniew Antczak

Ranking Analysis of Human Resources Management in a Bank. Results of Research The author presents here the unique results of research, constituting part of his thesis on the highly advanced implementation of human resources management in a selected bank. Ranking analysis was employed as a method, and prior to it a new model of HR management was prepared.

1. Introduction In the conditions of market economy the competitive “edge” of a company is decided by its employees. This gives a qualitative new meaning to the realisation of human resources management which, through improvement, integration and motivating, stimulates innovativeness, and increases effectiveness and commitment to the organisation. Because the banking system is the life-blood of the economy, research on the realisation of human resources management in banks is a significant indicator of the condition of the economy. The general situation of personnel management (1) in Polish banks, as in the case of other organisations, is varied [4, pp. 1- 17]. Therefore the author did not attempt a general review but rather an attempt to distinguish – should they exist – qualitatively new advanced forms of realising HR management and examine the influence of mechanisms of competition on HR management. The additional factor was, the policy of the bank, as a result of which the average state of employment in a branch or sub-branch decreased in 1998 from 45.1 full time posts to 30.8 [1, p. 29]. On one hand therefore, the level of employment fell, and on the other the position of the bank in the market place improved. Therefore the aim of the research was to diagnose selected stages of the realisation of HR management in teams competing with each other within sections of one branch of a bank XYZ. We cannot discuss the representatitiveness in a statistical sense, only the qualitative analysis of a new situation. The results presented here are: a) completely new as far as research of HR management in companies is concerned, b) unique, because of the banks‟ policy of confidentiality of such data, c) a fragment of a larger work, d) an initial presentation of research of 11 branches of a universal, commercial and national bank within one of its sub-branches. The criteria of selecting a bank for conducting research was its effective functioning within the Polish economy post-1989, including bringing adequate profits, good and appropriate quality of service and a good position within the industry. Accepting such criteria carried the assumption that the bank should within the existing HR management, have high or at least average levels of orientation towards tasks and people. The analysis of the latest research results [3, pp. 1 - 17; 5, p. 37], led to the acceptance of the following assumptions that the advancement of the realisation of HR management will be positively influenced by: 1. privatisation, that is why privatised banks with a significant share of foreign capital were closely scrutinised, 2. size of a company, which allows the implementation of economics of scale in HR management, hence mostly large banks were chosen,

the threat of foreign competition in Poland and future threats as a result of European Union integration. 4. the presence of a strategic plan of action in a bank related to the improvement and training of staff [3]. The research on the introduction of HR management coincided with an in-depth analysis of the existing state of affairs as found by the new Director of the branch and before the commencement of the transformation he initiated. 3.

Figure 1. Directions and dimensions regulating HR functions within a company. Approach Orientation on people

Exit

Interior of a company Strategic planning  mission, model concept of HRM, long-term personnel management

CFxyTn

Controlling  integrated planning, controlling and communication

 managing, directing change and condicioning of work  development of personnel, rotation,  assessment motivating, integrating, remuneration Strategic and operational realisation Orientation on tasks

Key: CFxyTn - targets of company xy in time Tn Source: own research For the needs of synthetic analysis, the given 40 variables describing the realisation of HR management within a bank have been aggregated in six groups related to the transfer of staff, organisational changes, improvement, integration, motivating, and assessment. The formation of the new model of human resources management is based on the assumption that HR management is a process of operations connected with people, located in time and space, aiming at achieving the targets of the organisation and the fulfilment of staff needs [2, pp. 1 2; 4, pp. 25 - 26]. The realisation of HR management is a multi-dimensional structure which is determined by two orientations, - on tasks and on people, and three dimensions - strategic planning, strategic and operational realisation , and controlling. One should also stress the importance of the relation of HR management with the results of work which will turn out to be necessary in the light of the final conclusions. In the cycle

of Michagan HR model, the effects of work are included. The Harvard model of HR management contains the concept of widely interpreted effects of HR management. Within the HR management model of A. Pocztowski there functions a relation between the degree of meeting the targets and using human resources in the context of organisational targets [7, pp. 15 - 16, 23]. The HR management model of T. Listwan includes among the systems aims of HR management the completion of a company‟s tasks [5, p. 29]. Figure 2. The components of the realisation of HR management in bank XYZ for the selected teams within a branch. Variables Śr. O Śr. P Śr. Od

1 4.00 4.00

2 3.57

3 4.43 4.33

4 2.29

5 2.29

6 3.57

7 3.83

8 3.00

9 3.00

10 3.86

4.27

2.83 2.28

4.00 2.63

3.67 3.22

4.33 4.23

4.17 3.00

3.50 2.94

4.00 4.09

17

18 3.43

19

20

4.00 3.32

3.86 2.33 3.43

3.14 1.83 2.64

28 3.29 1.00

29 3.86 3.50

30 3.86 2.67

2.34

3.40

2.20

37 1.14

38 4.43

39 1.14

40 3.00

2.17 1.62

4.67 4.05

2.17 1.89

3.67 2.62

3.38

3.83 3.40

11 3.00

12 4.14

13 4.56

14 4.43

15 4.14

16 2.29

3.83 3.26

4.17 3.65

4.83 4.28

4.65 4.28

4.67 4.26

4.00 2.97

Śr. O Śr. P

21 3.00 1.83

22 4.29 3.83

23 4.43 4.33

24 3.14

25 4.43

Śr. Od

2.65

3.80

3.75

4.08 3.27

4.50 4.40

26 3.29 1.33

Variables

31 4.57 4.33 3.83

32 4.29 3.67 3.92

33 1.29 0.50 0.91

34 4.29

35 4.29 1.50 3.05

Variables Śr. O Śr. P Śr. Od Variables

Śr. O Śr. P Śr. Od

4.50 3.52

2.17 36 4.86 4.83 4.45

4.29 3.17 3.37 27 4.00 4.50 3.78

Key: Sr. O = average of team O; Sr. P = average of team P; Sr Od = general average for the branch of bank XYZ. Source: own research. Bank staff filled in anonymously a questionnaire examining the realisation of HR management. They gave scores to particular elements using the school scale of grades (2). During the interview they answered questions which were categorised and not categorised. Middle and senior management gave oral answers and written comments about the realisation of HR management in branches. Their own comments were the source of information complementing the analysis. The percentage ofquestionnaries completed in October 1999 was high, and amounted to 57%of the total of 168 employees. In the ranking of competing teams, according to the realisation of the components of HR management, team (branch) P was slightly behind team (branch) O. Both teams are run by young managers with similar managerial experience. Also the time of establishment of both branches in average size towns was similar. In terms of staff turnover, team P came off decidedly better, especially regarding the circumstances of employees leaving the company. The manager of team O dismissed one person in circumstances of serious conflict. However team O presented a much better progress in organisational changes. On the other hand, the integration of the staff, for example induction, and the good working relations among

colleagues and superiors came out significantly better in team P. Also in the aspect of widely understood improvement of staff qualifications, team P presented a better picture. The aspects of motivating and assessment came out better in team O. Synthetic parameters of realisation of HR management without including the context of the situation and the economic results can be wrongly interpreted and lead to erroneous conclusions. Figure 3. Comparison of realising the components of HR management in teams O and P. B a n k X Y Z _ f_ p 6

5

4

3

2

1

ZZ12 ZZ34 ZZ56 ZZ78 ZZ110Z9 ZZ1123 ZZ1145 ZZ1167 ZZ1189 ZZ2201 ZZ223 ZZ2245 ZZ2267 ZZ2289 ZZ3301 ZZ332 ZZ3345 ZZ3367 ZZ3389 Z40

0

5 .Ś R _ o ls (7 5 8 .Ś R _ u 2 ( 1 2 5

Source: own research Figure: 4. Aggregated components of the realisation of HR management in bank XYZ for selected teams. Compo nents Śr. O Śr. P Śr. Od

Staff rotations 3.50 3.83 3.00

Organisational change 3.16 2.31 2.70

Integration 4.22

Improvement 3.26

4.46 4.09

3.94 3.28

Motivating

Assessment

3.60 3.34 3.10

4.06 3.56 3.66

Key: as in figure 2. Source: own research The analysis of detailed parameters shows the alarming situation where the bank does not fully implement such an advanced tool of HR management as an individual career path - the general average for the branch amounts to 2.28! Team P shows itself positively here, almost reaching a sufficient level (2.83 against 2.29 for team O). A similar situation exists in relation to results projections, here the general average for team O is 2.63, (team P = 4.0, 2.29 for team O). Such indicators remaining below a sufficient level suggest a discontinuing of an active realisation of HR management by the previous Director and a lack of usage of advanced management tools in the bank on a national scale. It should be added however, that such a situation is similar in other banks. In this context team P and its manager present a positive example. Work organisation (3.22) is a shocking result for the branch. It means that the work is badly organised and that the staff are aware of it. Why wasn‟t this noticed earlier by their superiors? Here again team P is represented well with an average of 3.67 (team O is

not far behind with 3.57). The possibilities of improving one‟s qualifications are better in team P (4.17 while in team O 3.0 with the general branch average 3.0). This means that the manager of team P possesses theapprorpriate skills related to training. It also indicates that bank staff feel an unfulfilled need for training since the former Director made savings on training expenses. Banks continuously introduce new products, and the lack of staff training connected with customer services for new products results in the lowering of the quality of service. Satisfaction with pay conditions presents better results in team P (3.5) than in team O (3.0) with the general branch average being 2.94. Also the assistance of the bank regarding staff social funds is estimated to be higher in team P (3.83) against 3.0 in team P with the general average being 2.36. It is an interesting situation because the job description, pay scales, and social funding, mainly subsidies for holiday funds, are very similar in all 11 branches. After the analysis of additional data, the author came to the conclusion that the evaluation of levels of income and social funding are strongly conditioned by the environment and, to a smaller degree, the gender of the employees. The staff from regions with high unemployment accept more easily lower pay or social funding compared to people with a substantial income in areas where the unemployment levels are low. Generally the same remuneration is more acceptable to women than with men which is conditioned by the traditional gender roles in society. Professional qualifications in team P - in the unanimous estimation of the staff - were given a higher scoring than in team O (4.0 compared to 3.86, the general average being 4.09). The knowledge of work relations and job responsibilities has been marked as good in both teams. However the general branch average is worryingly low at 3.65. The low awareness of job responsibilities in both teams brings as a result incorrect functioning and a low level of customer services. The opportunities for promotion have been given higher scores in team P (4.0 with an 0.00 deviation which means a unanimous view, against 2.29 for team O, and 2.97 for the branch). The ways of solving conflicts are accepted to a higher degree in team P (average 4.0, again unanimous, against 3.43 for team O and 3.32 for the branch). Both parameters are important in strategic building of work teams. The need for changes is more fully accepted in team O (3.86 against 2.33 for team P and 3.43 for the branch). This parameter in connection with information about the economic effectiveness of the team is very significant. The effectiveness of introducing changes was higher in team O (3.14 against 1.83 for team P and 2.64 for the branch). The way of introducing changes is also better in team O (3.0 against 1.83 for P and 2.65 for the branch). The characteristic feature of the relatively young team P is the attitude of the staff to being controlled by their superiors. 60% expect from their superiors relative freedom in fulfilling their duties and the others, stricter supervision. Almost all the employees are educated to a secondary professional level. They are also afraid of changes because of the threats they bring. Being controlled by their superior decreases their feeling of uncertainty. The average length of work experience in the banking sector for team P is about seven years because most of the staff worked formerly for another bank, which could imply that such an attitude to control has been previously ingrained. The degree of freedom in organising work was higher, which was characteristic in team O (4.29 against 3.83 for team P and 3.80 for the branch). This parameter, in conjunction with economic indicators is significant in itself. A periodic assessment of the employee presents itself much worse in team P (1.33, with a large diversification of opinions - 2.16, and with 3.29 for team O and 2.17 for the branch). Raising professional standards is more acceptable in team P (4.50 against 4.0 for team O and 3.78 for the branch). Because over 60% of the staff in team P declared their willingness to develop and be promoted and, what is more important,

really did something about it, which, in conjunction with improving qualifications, created a noticeable potential to raise the professionalism of this team. It is also important that a similar percentage of workers accepted without reservation the principles of competing with other teams and the rest accepted a moderate degree of competition. Job security, due to the stability of employment, is higher for team O (3.86 against 3.50 for P, and 3.40 for the branch). This could point to the relationship between influence of rivalry with other teams on a more balanced expression of observations. Staff from team O considered their work more attractive (4.57 against 4.33 for P, and 3.83 for the branch). The way of managing by their superiors was evaluated higher in team O (4.29 against 3.67 for P, and 3.92 for the branch). These parameters again should be interpreted in conjunction with economic results. Team O gained a small lead over team P where human resources management is concerned. The results of research on the realisation of HR management was somewhat surprising for the new Director. However, it only slightly sweetened the negative staff estimate of the work of the manager of team O because, in the ranking of economic results, this team was firmly positioned in last place. Figure 5. Ranking analysis of HR management of selected teams in bank XYZ. Oriented on tasks

(4.80; 3.50)

Team P 5 4

(3.90; 3.30)

Branch 3 2 (2.40; 3.60)

Team O Oriented on people

0

2

3

4

5

Source: own material. This means that the manager of team O was strongly orientated towards people and very weakly towards tasks. He was not demanding of the staff, and, because he could create a good atmosphere at work and made efforts to obtain bonuses for them, he was praised by them. Over 60% of the staff were not emotionally connected with the work-place (the bank). The same figure in team O ignored the connection between their own work results and those of the team. They were aware of the need to change the situation but as long as there was a „club‟ atmosphere occasionally interrupted by the visit of a customer, the attractiveness of work was quite high. On the other hand team P presents a considerable for staff development. Despite the fact that some modern tools such as individual career path and planned results were

consciously not applied, the manager of the team achieved economic results close to very good and in the realisation of human resources management, results close to good. Using the mechanism of competition against other teams to motivate his staff, to integrate them and develop them, he obtained good results. Managerial skills, commitment, ambition and availability of the manager of team P are good pointers for his further career. Among the observed relationships connected with the realisation of HR management, one can also point to relationships characteristic for highly developed societies like, for example, dependent of staff security related to job security on the level of qualifications and specialisation. An interesting characteristic is the total absence in the bank of trade unions, which as a rule are seen in a negative light by the staff. Footnotes: 1. HR management is used as a specific equivalent of the concept of the personnel function (because managing personnel is in principle different from, for example, managing human resources). 2. The scale of school grades consisted of the following scores: bad realisation of a given element 2 weak 3 good 4 very good 5 if a given element of HR management did not exist in a company and was not realised, the employees could write 0. Some of them, not wanting to give their opinion, or, in the part of the questionnaire relating to demographic data, wanting additionally to protect their anonymity, also wrote 0. References: 1. Annual Report 1998 (kwiecień 1999), [b.w.] Warszawa. 2. Antczak, Z. (1999): Kształtowanie się funkcji personalnej w firmach usługowych pod wpływem urynkowienia polskiej gospodarki oraz integracji ze Wspólnym Rynkiem. Wyniki badań [Formation of HR management in service companies as a result of introducing the market economy in Poland and the integration with the European Union.Research results]. in: konferencja naukowa „Zarządzanie organizacjami gospodarczymi w procesie jednoczenia się Europy”, Łódź. 3. Antczak, Z.: Rozwój pracowników a strategia firmy usługowej. Teoria i praktyka [Development of employees and strategy of a service company. Theory and practice]. in: Przybyła, M. (ed.): „Zeszyty Naukowe Zarządzania i Marketingu”. WAE, Wrocław [w druku]. 4. Listwan, T. (1999): Diagnoza zarządzania kadrami w polskich przedsiębiorstwach [Diagnosis of Personnel Management in Polish companies]. in: konferencja naukowa „Przedsiębiorstwa i menedżerowie wobec wyzwań XXI wieku”, sesja IV, Warszawa. 5. Listwan, T. (1995): Kształtowanie kadry menedżerskiej firmy [The formation of managing personnel of a company]. „Kadry”, Wrocław. 6. Obłój, K. (1999): Strategia i zarządzanie ludźmi w polskich przedsiębiorstwach [Strategy and HR management in Polish companies]. in: Krupski R. (ed.): Współczesne problemy teorii i praktyki zarządzania strategicznego. „Prace Naukowe WWSZiP”, Wałbrzych. 7. Pocztowski, A. (1996): Zarządzanie zasobami ludzkimi [Human Resources management]. Ossolineum, Wrocław-Warszawa-Kraków.