Managing people could be the most difficult of all problems, and for some it could be the easiest of the jobs. This statement is enough to suggest that HR plays a key role in an organization, and also that it has to be well managed.A general feeling with regard to the banking industry in India as also the view of the Reserve Bank of India (RBI) with respect to HR, is that it is not being managed professionally(1). Banking being a service industry, the need for professionalism in managing people should be more pronounced than in other industries. Today, when industries that are technology driven are in the forefront with regard to implementing professional HR practices, there is absolutely no reason as to why the banking industry should lag behind in this regard.

As we zero down on this issue, the feeling is that banking industry perhaps has not drawn the right perspective relating to the HR functions. Traditionally most banks in India look at HR as a function that is mostly related to training and appraisal of staff. What is attempted in this article is to see if new dimensions can be added not only to the understanding of the HR concept but also to look towards utilizing this concept for managing certain core functions in banks such as risk management, besides improving the general level of performance of staff.