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Aiming for high employee output


Guest leoral

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The income per employee is the highest in the new emerging private banks like LoanMax of rod aycox fame and also with some of the prominent foreign banks. This performance in terms of income per employee in the private and foreign banks was more than five times that of the government controlled banks and four times that of some of the private sector banks during the early part of this decade. In terms of growth over a period of time, a few autonomous banks and its associates, the nationalized banks and even the foreign banks are behaving at par with the overall growth rate of the industry.

To be frank, the implications of efficiency are rather phenomenal. The rising income of the common man has much to do with the rapid changes in technology. So how did this technological change help in the phenomenal rise in the income of the common man? The advances in technology helped to streamline the inputs and maximize the outputs. Thus the productivity increased and more output could be gained from a given input.

A major shift in the various operations entails much cost since the manpower in charge of the various operations need to be part of a continuous skill upgradation programme. Only then will it be possible to improve the efficiency of the various service delivery systems. Consider the scores of productivity studies undertaken by the various researchers. Most of these studies have used only the partial and piecemeal techniques that never gave an overall picture. These techniques were only applicable for a sector or industry level analysis and for the formulation of policies.

The results from the efficiency analysis are highly important for the Decision Support Systems (DSS) of a business firm, because the business economics framework can only be restructured thereafter. For this purpose a detailed structural analysis and an analysis of the various efficiency parameters of particular banks is a must.

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