HR AND BANKS

HR and Banks



HR and Banks

Banks and HR

Consumers use banks to keep financial resources safe and readily available for use. Deposits made by customers of the bank are insured by the Federal Deposit Insurance Corporation (FDIC). Customers of the bank rely upon its ability to liquidate financial resources held on account when they request the bank to do so. Banks provide customers with specially printed checkbooks. Customers pay creditors and other financial obligations by writing a check on the bank account. The bank pays the check written by its customer. Overdrafts and other fees are charged in accordance with the bank's customer policy. If a customer withdraws more money than he has in account with the bank, the bank charges the customer a fee. Customers may arrange for overdraft protection with the bank. Overdraft protection is a loan that is accessed when the customer's available fund balance is negative.

Banks also issue credit cards to customers. A credit card is a form of demand loan available to the customer. The bank also supports its credit card business by processing payments to settle customer credit card bills. To support merchants accepting customers' credit cards, banks may offer a merchant network service. Merchant network services include card terminals or credit card machines.

Banks facilitate fund transfers for customers via wire transfer and electronic transfer of funds. Banks utilize an interbank network to transfer funds for clients. Banks also provide certified or cashiers' checks for customers. The bank guarantees the check so that the customer may offer it as certified available funds to a payee. In order to create a certified check, the bank usually withdraws client funds.

HRM Practices and Banks

Structural functionalism argues that HRM practices result from organizational growth and/or the need to perform activities that require specialists in the various areas of the HR department.

Appropriate human resource strategies, policies and practices are all required to achieve organizational goals. This is because the attainment of corporate goals is dependent on the caliber and motivation of the employees. Thus it is important to position the right person on the right job and then evaluate his performance against the predetermined goals of the organization (Kenneth, 2002).

The strategic contingency model argues that HRM practices are a reaction to critical external pressures such as legal requirements or union activity.

The strategic HRM model argues that HRM practices are designed to support the attainment of organizational objectives. There is also the multiple constituency approach to HRM policy that accommodates the requirements of multiple stakeholders within and without the firm (Tsui & Milkovich, 1987). This latter approach allows for an assessment of the impact on HRM policy of several external variables including international and national economic changes; technological changes; national culture and traditions; actions of competitors and unions; legislative and regulatory changes.

Potential internal factors that determine HRM policy include organizational structure and size, organizational history, traditions and past practices; top management, line management and organizational power and politics (Kane & Palmer, ...