sbi vs. mcdonalds-reasons why sbi is failing

here, we shall discuss how the operations and human resource framework at sbi and other public sector banks of india contrasts with that of mcdonalds, a prominent restaurant chain. in the end, we shall be able to comprehend why sbi is struggling to maintain its profitable operations despite being a bank of almost every indian. let us start with the recruitment process at the two establishments. to be able to work with sbi, one needs to be a graduate and clear the competitive exam that the bank conducts to fill positions of clerks and probationary officers. for a mcdonalds job, one gets selected without any such exam, however, only those with good communication and other skills can expect to be hired. do sbi and other public sector banks actually need a competitive exam to fill vacancies. the answer is ‘no’. and this is backed by the rationale that a clerk or a probationary officer would not undertake any scientific explorations

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liberalise medicine, other studies to generate employment

practicing medicine is a job, same is with practicing chartered accountancy, cost accountancy or company secretaryship. there is, however, a difference when we talk of a law practitioner. and this difference is the one practicing law does not have to fight her way out to become a lawyer, a 3 or 5 year study programme with easy enrolments enables one to do so. engineers too have the prospect of employing their skills at work after a 4 year programme. but what about practicing medicine or being a ca, cwa or cs; for these professions, one has to struggle with getting admitted into much-coveted medical colleges or appearing repeatedly in competition-styled exams where only a miniscule percentage of aspirants is awarded a pass certificate. it is a known fact that our country lacks the number of doctors as per the world health organisation norms. chartered accountants and other finance professionals, owing to their small fraternity have formed a cartel which indulges

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lower the superannuation age of state employees to use demographic dividend

india is being positively looked upon by the otherwise aging world economies owing to its ever-high proportion of population in the working age group that is expected to spur economic growth. you may find endless bonuses of this, the bottom line is this group needs work, while the sad contrasting picture is dismal job growth rate of the indian economy. while infrastructure spending spree of the current government has given the hope for some occupation opportunities in roads, railways, ports, energy and similar sectors, would this state-backed, public spending-fueled exercise be able to serve the millions staring at work in coming days? the most rational solution is freeing the government sector employment space by lowering the age of superannuation, be it in central, state, autonomous bodies, public sector enterprises or state-owned banks. from current 58 or 60 as the age of retirement, it has to come down to at least 55, or even 52, and as a compulsion, not as

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has conventional recruitment practice failed us?

if the economy could produce enough jobs on its own, the government would have been relieved of pumping funds into programmes like mgnrega and other sops to support low income groups. that sadly isn’t the case. let’s see how conservative recruitment norms inspired indian industries’ incompetence. economists and analysts will talk of low industrial growth, rising non-performing assets of banks and the losing sheen of indian information technology sector owing to lack of skill upgradation in indian engineers, but rarely does anyone talk of how human resource failures fueled these downturns. india may be inching closer towards a place amongst top 5 economies in the world, we may be the fastest growing major economy, stats including worst credit growth, dismal private sector investment, failure of indian industry in matching up with global competitiveness and technological prowess and inadequate job growth show the ground beneath is hollow and vulnerable to collapse; not to say of our so-called demographic dividend that is

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latest transaction/atm charges by banks is bad economics

customers of banks are trapped in a tight spot where the government wants them to keep as much money as possible in banks and shift to digital transactions, on the contrary, banks have united to levy transaction/ atm charges for cash withdrawals and deposits. this is an evident case of exploitation of customers who will have no other choice than to pay or reduce velocity of circulation of money, a greater evil. what is banking? someone with surplus money hands over this extra to a responsible party which can lend it to someone in need. the difference in rate of interest between these two transactions is what this responsible party – in this case the banks – can claim as legitimate profit. while indian banks may have cited operational costs as a reason to charge customers, it was upon them to maintain operational costs at such levels that the customers weren’t burdened. non-performing assets are plunging banks into losses or

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sbi’s merging with associates will only up the miseries

when do two forces combine? when one has something worthy to lend to the other party and when their working cohesively can bring economies of scale. in the merger of state bank of india with its associate banks, the concept of economies of scale has been grossly misconstrued. this merger is set to be one of the most ill-conceived ideas in the banking history of the country. in this world where financial experts and consultants come from top business schools, basics of any concept are customarily overlooked. the only intention of decision-makers seems to be their greed to let sbi enter the coveted list of banks in terms of assets. they may have achieved this goal, but if only value of assets determined viability of any enterprise, market forces would have compelled many competitors to join forces; this, however, isn’t prudent economics. what is the role of a bank? what is banking? in simple terms, borrowing from those who have

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income disparity won’t go unless indian market is redesigned

anyone thinking of bridging the income gap in indian society would be at fault unless redesigning of the market is considered. in simple words, a market comprises of a producer, the trader and the consumer. while there was utmost need of a driving force, the trader, in putting the consumption cycle at work, an unchecked market mechanism has led to income disparity. let us explain how. the producer that generates goods and employment is the primary player in any economy. the same employment generates consumers who buy different goods and thereby let the economy function. this production and purchase relationship is the key driving force in any economy, to be true, the only driving force. traders in between do facilitate purchases, however also distort the market in many ways, for a trader isn’t a producer, although he may be a consumer for some produced goods. now we need to observe how money is created in any economy. for the part of work one

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india’s information technology high is fading

the gem of india’s service sector and of country’s export constellation is in the midst of an inevitable calamity. the scene is far more alarming than it appears at its face, and if corrections aren’t introduced promptly and forcibly, the ripple effects will be felt across the economy. in short, indian it isn’t just driving the service sector and exports, it has also fueled real estate, tourism and hospitality, textile and automobiles, thanks to unprecedented salaries drawn by mid-level, top echelon and even entry level staff in some cases. factors are many, to count a few are automation that will spark a war against human resource, india’s hefty dependability on outsourced projects from united states and many european and asia-pacific countries that is slowly subsiding owing to a backlash from nationalistic fervor and diminishing globalisation, sub-standard and outdated skills of indian workforce that works more in factory-styled way. the cherry on the top is heavy pay packages of it employees

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‘design in india’ for being world leader, 5 do’s

numerous men of acumen and organisations predicted an asian advancement in 21st century, with india anticipated as leading the world. but is india all set to become the leader, or even claiming the ‘developed’ tag is hard? to script the indian chapter in gold, ‘make in india’ alone cannot suffice the need, it needs pivotal backing from ‘design in india’. hereunder are 5 crucial aspects of this scheme. one, the country needs a new body, on lines of cbse, ugc, aicte, to administer and promote innovation. let it be termed as indian council for innovation with powers granted to set up new colleges and consolidate present innovation and research programs. two, do not just ask for foreign investment in indian manufacturing, this can only make us the next china; for sustainable development and to keep a prolonged upper hand among global economies, breaking barriers is must. isro is a perfect example, pharma, it and bpo may look like gold, they

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resuscitate the bedridden global economy- manufacturing to supersede services

it is not in good shape, let alone any hopes for expansion and inclusive growth. have we reached saturation, a point from where we can merely sustain past successes and not tread into newer horizons? it’s time we stop blaming geopolitical tensions for the economic stagnation, rather find rationales. it’s simple, the economy runs on three sectors, primary, secondary and tertiary. now when we were growing our capabilities and outputs in primary – agriculture and allied activities – and secondary – industrial production of tangible goods – we made sustainable progress. we not only pulled out many from poverty but created a space of material wants, which when achieved gave meaning to life. the next stage, that saw revolutionary research and development in the tertiary sector – services like communication and information technology – was when viabilities eroded and sustainable and inclusive growth became elusive. according to the definition, development is a shift from agrarian activities to manufacturing and a

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