Information technology (IT) is offering a wide range of opportunities and great potential in the banking industry. According to Madhushree, Radhakrishnan, and Aithal (2018), IT enables the banking sectors to offer systematic, rapid, and cost-effective services to their customers. Efficient application of the IT services facilitates timely and accurate control and management of banks' large transaction that increases the customer base. Various information technologies in the banking industry include software and auxiliary equipment, which are used for storage, communication of information, input, and dealing out services (Madhushree, Radhakrishnan, and Aithal, 2018). This plan evaluates various factors in the banking industry prompting strategy changes in the human resource, elaborating on the knowledge, skills, and abilities necessary in the future employees in the new technologically developed M.J bank. More so, it includes the various techniques for aligning the human resource with the business strategy including, talent acquisition options, organizational restructuring, outsourcing options, types of positions as well as onboarding of new employees.
Factors influencing changes in M.J’s Human Resource
The new techniques in the delivery of services in the banking sector due to technological development require new changes for M.J to remain competitive. Madhushree, Radhakrishnan, and Aithal (2018) affirms that technology has led to the development of new alternative means of delivering the banking services such as the internet and ATM, which are reducing the overdependence of the branches in the main delivery mechanism. Therefore, with the increase in the substantial mechanism the delivery strategy change has been implemented thus requiring various specialists to run the various platforms to reap the full benefits of the techniques hence the need for change.
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IT is essential in the banking sector as it helps in handling data effectively, meeting the internal requirements, an extension on the customer services, end-user development, and act as creative support in the development of new products (Madhushree, Radhakrishman, and Aithal, 2018). The banking sector is becoming highly competitive with technological development. To take advantage and remain competitive in the highly demanding industry, M.J bank, works towards aligning its business strategy with its human resource to remain highly competitive.
The technological development in the banking sector is influencing the economies of scale that are posing great competitive pressure on M.J bank (Madhushree, Radhakrishnana & Aithal, 2018). M.J bank is adopting the changes seeking to benefit from the economies of scale in its bank operations. Therefore, to secure the economies of scale competitive the changes to be implemented include outsourcing, and changing the organizational structure.
Knowledge, Skills, and abilities in the Employees
M.J bank, which is at the growing phase on the organizational cycle, needs to recruit enough multi-skilled employees in building up its pool of talents. According to Madhushree, Radhakrishnan, and Aithal (2018), innovation gives any company a competitive advantage in a highly developed business environment. In resourcing, M. J bank ought to recruit and retain highly qualified individuals with innovative skills and an exemplary record in creativity and innovation. M.J will, therefore, need to encourage and develop a capability together with facilities necessary in enhancing the intellectual capital and innovative skills of the company. Retaining of the innovative skills will need M.J to offer incentives financial incentives and recognition for any successful innovations in their employees, which is a major requirement of their future employees.
Quality is another aspect likely to offer M.J a competitive advantage in the new banking era. According to Freidberg and Kao (2008), M.J bank ought to apply sophisticated selection techniques to recruit employees with the capability of delivering high levels of quality in customer services. With the bank working towards supporting total quality in the new technological era, with focused training employees who will ensure quality are necessary to support the customer care and quality initiatives.
Cost-leadership is another approach that is likely to give M.J a competitive advantage in the new environment. Freidberg and Kao (2018) affirm that M.J ought to recruit only people with the capability to add value to the organization. Employees who are likely to self-manage their learning through the application of personal development plans are the best candidates in the new M.J’s environment to cut any extra costs in the development of various organizational processes.
High competence in the various customers’ services is the new recruiting term guiding both the core and periphery employees in the M.J's environment (Freidberg & Kao, 2008). However, it may be challenging to get the perfect candidate with all the characters the organization wants. Hence, the best-fit candidate is appropriate for the position as they display a relatively stronger correlation with the company's values, expectations, and culture with a high capability of building a mutual relationship with the other team members.
Implementation Methods
A high-quality workforce in any business organization enables a firm to compete favorably on quality grounds, services differentiation, market responsiveness, and technological innovation. Cascio and Montealegre (2016) describe the first step in addressing the changes in the new talent requirement in M.J as employee planning strategies guided by the business plans that enables the future demand prediction for labor requirement. The different types of labor requirement predictions are carried out against the analysis of the existing human resource body in M.J analyzing their qualifications, age profile, gender-mix, length of service, competency data, and their training records.
Outsourcing Options
Outsourcing refers to a conscious decision in which an organization foregoes or abandons performances of certain activities in the business organization thus focusing on obtaining them from strategic allies or outside specialists. According to Moturi and Ngugi (2015), information, and communication technology outsourcing encompasses the art of letting a third party manage the organization's ICT assets, activities, and employees that are needed to meet a pre-specified performance level of certain services either remotely or onsite. Outsourcing is a practical approach in tapping a pool of talent in M.J that will allow the company to focus its limited resources on the core competencies or the different value-added abilities. Outsourcing works towards reducing overloading the organization's capacity by spreading all the resources too thinly, thus a way of ensuring quality achievement at a low cost compared to hiring a full-time employee (Moturi & Ngugi, 2015).
Resourcing Strategies and Filling Positions
Resourcing approaches in M.J works towards ensuring the firm matches the right employee with the right jobs, whenever required through careful planning on the workforce. According to Cascio & Montealegre (2016), resourcing helps to identify any changes in the skill mix necessary in the business enterprise and to ascertain the number required at every level of the business organization. Resourcing strategies assess the performance of various employees' competencies and behaviors, thus identifying the development necessary in the already existing human resource body to prepare them for future work (Cascio & Montealegre, 2016). Therefore, any resourcing strategies focus on sustaining the human resource group with the desired attitude and competency. In monitoring the turnover, the key positions are likely to be identified in which the human resource management and the line management will define the knowledge, role experience, behavior acceptable for the particular task together with the current and future challenges and expectations in performance. Therefore, ensuring every position filled is in line with the strategic needs of the organization.
Organizational Restructuring
Organizational restructuring refers to the fundamental rethinking of the business structure that is followed by the radical redesigning of the enterprise's procedures and processes and their respective functional structures. According to Cascio and Montealegre (2016), restructuring in business focuses on the internal functioning of the business to ensure the work is done efficiently and effectively as a way of making strategy practical. In the process of restructuring in M.J, it is clear that some activities in the enterprise are crucial in the business strategy. To build sustainable efficiency and effectiveness in an internal strategic focus on a short term basis while minimizing costs and maximizing profits the company will adopt the core-periphery employment structure.
Talent Acquisition and Onboarding New Employees
In reaching the various targeted talents, employee referrals will be the most adopted means in the M.J as it appears to be a good way of recruiting (Cascio & Montealegre, 2016). With the current employees who want to maintain a good reputation, they are likely to refer people with the highest qualities, which act as a form of prescreening. More so, the current employees help the new workers whom they referred to master their jobs faster. More so, they are likely to offer reference on a realistic basis, thus making the recruiting and hiring of the new employees an efficient process. Other techniques of acquiring talent include college recruiting in which the best students are tapped for their skills.
The human resource strategies in any business organization focus on the management of employees, directing them towards the achievement of the set goals and objectives. The human resource strategies focus on what any company plans to do with the human resource practices and policies on the aspects of deployment, motivation, management, and retaining that affects the business strategy implementation process. Strategy in the human resource serves the management bodies that hope to deploy, motivate, manage, and retain employees towards adding value in the implementation of the business strategy. M.J bank ought to focus on the human strategies in the highly competitive banking industry as it is unlikely for the competitors to copy the approach. To gain a competitive advantage creation of value for their consumers while still maximizing profits is necessary. Therefore, M.J can enjoy a competitive advantage in the banking industry through the provision of high-quality services, having an efficient way of offering services in which the human resource acts as the source of the unique advantage.
References
Cascio, W. F., & Montealegre, R. (2016). How technology is changing work and organizations. Annual Review of Organizational Psychology and Organizational Behavior , 3 , 349-375.
Freidberg, M., & Kao, T. (2008). The State of Talent Management: Today’s Challenges, Tomorrow’s Opportunities’. Hewitt's Human Capital , 1-37.
Madhushree, L. M., Radhkrishnan, R., & Aithal, P. S. (2018). Impact of Information Technology, (IT) on Banking Sector: Emerging areas of IT Applications in Management, Education, and Social Sciences. 14,1-8
Moturi, C. A., & Ngugi, M. N. (2015). Information and Communication Technology Talent Management Alignment with Outsourcing: The case of a Power Company in Kenya. International Journal of Services, Economics, and Management , 7 (1), 1-23.
