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Organization culture programme

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					              A
           REPORT
             ON


               A

            STUDY

              ON

Organization culture programme

         Submitted By
        Jitendra Sankhla
                               A
                            REPORT
                               ON
                               A
                             STUDY
                               ON
   Organization culture programme
                           Submitted in
                       Partial fulfillment of
                    The Post Graduation Degree

                                Of

   Master of Business Administration
                                In
                            Banking
          SIKKIM MANIPAL UNIVERSITY
                  Directorate of Distance education
                            JODHPUR (Raj.)
                          (2006 - 2008)
Under Guidance:                              Submitted By:
                                             Jitendra Sankhla
                                             Enroll. No-
ABSTRACT
.
Acknowledgement :


I would like to express our gratitude to Mr.             (Faculty Guide for SIP-

ICFAI National College, Jaipur, Raj.) With whom we have gained knowledge & have

helped us in furthering our understanding of synopsis.
PREFACE
         Project is most important part of Summer Internship Program. This

study would not only help us as a management student to gain a deep

insight of how an organization works but also to put practical usage of all

the management techniques that we have learnt during the course of our

study.

         This part of project helped us to make a management view. This

part of project totally based on theory, this theory is related with our

practical knowledge which we got during project. By project, student can

put his views about company‘s marketing strategies, marketing

communication tools, market segmentation and many more topics related

with marketing, finance and human resource etc.

         This project also helped us in understanding the working/functioning

of the organization in a better way. It also taught us how to take every

experience in the right way and learn from each one.
                            :: CONTENTS ::

Ch. No.           Section                                  Pg. No.

Chapter 1   1.1   Executive summery

Chapter 2
                  Introduction
            2.1   Company profile
            2.2   Introduction of some Plans
            2.3   Introduction to project research title   .
            2.4   Culture
            2.5   Theories of culture
            2.6   Increasing importance of culture
            2.7   Organizational culture change
            2.8   Types of cultures
            2.9   Banking of tomorrow
Chapter 3

            3.1   Conclusion


Chapter 4
                  Annexure/References
            4.1   Bibliography
Chapter 1




            1.1 Executive summery
                    1.1 Executive summery

         In this project/research the main aim is to find the objective of
the project is to focus on investing what is needed and a cultural change
program. the student supposed to study the organization's structure,
cultural, communication method and employees responsibilities the
involved meetings and discussion with a wide range of employee the aim
is produce a report outlining where the organization is now in terms of
culture and produce recommendation on what needs to be changed in order
to achieve the organization goal this recommendation should be included
into organization change strategy . We should view our marketing efforts
as a continuous process of creating and cultivating relationships. As a
marketing professional, we must strive to apply an integrated marketing
approach using the many marketing tools and channels available to us to
gain not only market share but also gain a greater share of each customer.
         A name, term, sign, symbol, or design (or some combination
thereof) used to identify the products of one firm and to differentiate them
from competitive offerings. TEXT
         When deciding how to properly utilize the Brand awareness to
meet our marketing objectives, it is important to consider the relative
strengths and weaknesses of each component of the Brand.
Chapter – 2

 Introduction




2.1
      Company profile
2.2
      Introduction of some Plans
CHAPTER-2

                                                         Introduction

2.1 Company Profile:
Overview


           ICICI Bank is India's second-largest bank with total assets of Rs.
3,446.58 billion (US$ 79 billion) at March 31, 2007 and profit after tax of
Rs. 31.10 billion for fiscal 2007. ICICI Bank is the most valuable bank in
India in terms of market capitalization and is ranked third amongst all the
companies listed on the Indian stock exchanges in terms of free float
market capitalisation*. The Bank has a network of about 950 branches and
3,300 ATMs in India and presence in 17 countries. ICICI Bank offers a
wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its
specialised subsidiaries and affiliates in the areas of investment banking,
life and non-life insurance, venture capital and asset management. The
Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai
International Finance Centre and representative offices in the United
States, United Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. Our UK subsidiary has established a branch in
Belgium.
           ICICI Bank's equity shares are listed in India on Bombay Stock
Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).
         History
         ICICI Bank was originally promoted in 1994 by ICICI Limited,
an Indian financial institution, and was its wholly-owned subsidiary.
ICICI's shareholding in ICICI Bank was reduced to 46% through a public
offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank
of Madura Limited in an all-stock amalgamation in fiscal 2001, and
secondary market sales by ICICI to institutional investors in fiscal 2001
and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a
development financial institution offering only project finance to a
diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates
like ICICI Bank. In 1999, ICICI become the first Indian company and the
first bank or financial institution from non-Japan Asia to be listed on the
NYSE.
         After consideration of various corporate structuring alternatives
in the context of the emerging competitive scenario in the Indian banking
industry, and the move towards universal banking, the managements of
ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities, and
would create the optimal legal structure for the ICICI group's universal
banking strategy. The merger would enhance value for ICICI shareholders
through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in
the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital
base and scale of operations, seamless access to ICICI's strong corporate
relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based
services, and access to the vast talent pool of ICICI and its subsidiaries. In
October 2001, the Boards of Directors of ICICI and ICICI Bank approved
the merger of ICICI and two of its wholly-owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court
of Gujarat at Ahmedabad in March 2002, and by the High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking
operations, both wholesale and retail, have been integrated in a single
entity.
          ICICI Bank has formulated a Code of Business Conduct and
Ethics for its directors and employees. (Click here to view a copy of the
Code)
          *Free float holding excludes all promoter holdings, strategic
investments and cross holdings among public sector entities.
Our Management
Board Members
       Mr. N. Vaghul, Chairman

       Mr. Sridar Iyengar

       Mr. Lakshmi N. Mittal

       Mr. Narendra Murkumbi

       Mr. Anupam Puri

       Mr. Vinod Rai

       Mr. M.K. Sharma

       Mr. P.M. Sinha

       Prof. Marti G. Subrahmanyam

       Mr. T.S. Vijayan

       Mr. V. Prem Watsa

       Mr. K.V. Kamath, Managing Director &        CEO

       Ms. Chanda Kochhar, Joint Managing Director & Chief Financia
       l Officer

       Ms. Madhabi Puri-Buch, Executive Director

       Mr. Sonjoy Chatterjee, Executive Director

       Mr. V. Vaidyanathan, Executive Director
2.2 INTRODUCTION OF SOME PRODUCTS-

             ICICI Bank offers a variety of cards to suit
    your different transactional needs. Our range includes
    Credit Cards, Debit Cards and Prepaid cards. These
    cards offer you convenience for your financial
    transactions like cash withdrawal, shopping and
    travel. These cards are widely accepted both in India
    and abroad. Read on for details and features of each.


              Credit Cards
                          ICICI Bank Credit Cards give
                 you the facility of cash, convenience and
                 a range of benefits, anywhere in the
                 world. These benefits range from life
                 time free cards, Insurance benefits,
                 global emergency assistance service,
                 discounts,   utility   payments,   travel
                 discounts and much more.
             3
            Debit Cards
         The ICICI Bank Debit Card is
a revolutionary form of cash that allows
customers to access their bank account
around the clock, around the world. The
ICICI Bank Debit Card can be used for
shopping at more than 3.5 Lakh
merchants in India and 24 million
merchants worldwide.
          Travel Card
                        Presenting ICICI Bank Travel
             Card. The Hassle Free way to Travel the
             world. Traveling with US Dollar, Euro,
             Pound      Sterling or   Swiss   Francs;
             Looking for security and convenience;
             take ICICI Bank Travel Card. Issued in
             duplicate. Offers the Pin based security.
             Has the convenience of usage of Credit
             or Debit card.




                Pre Paid Cards
         ICICI Bank brings to you a complete
bouquet of pre-paid cards providing payment
solutions at your fingertips. ICICI Bank pre-paid
cards are a safe & convenient way for associate
payments, disbursements, gifting & small ticket
transactions. Pre-paid cards are available on a VISA
          platform thus providing accessibility to over 3.5 Lakh
          merchant establishments & cash withdrawal from all
          VISA ATMs in India.




2.3 Introduction of Project/ Research Title

Organizational Culture

         The literature on organizational culture is as relevant to public
science management as it is to the management of private sector business
organizations. Given a rapidly changing environment and continuing
insights into organizational effectiveness, science organizations, as most
other organizations, are seriously rethinking what they do and how they
can best define and accomplish their goals and objectives. Once goals are
defined, it is necessary to address the type of culture that is necessary to
advance these goals and objectives and ensure the successful
implementation of the necessary changes. In addition, the organizational
effectiveness literature has been increasingly emphasizing the importance
of culture in motivating and maximizing the value of its intellectual assets,
particularly its human capital.
This is particularly important in knowledge intensive organizations, such
as publicly funded scientific laboratories. This review of the organizational
culture literature makes it clear that (1) culture is essential for both
successful
          organizational change and maximizing the value of human
capital (2) culture management should become a critical management
competency, and (3) while the right culture may be a necessary condition
for organizational success, it is by no means a sufficient condition. An
important challenge for managers is to determine what the most effective
culture is for their organization and, when necessary, how to change the
organizational culture effectively


History


          Although the concept of organizational culture was popularized
in the early 1980s, its roots can be traced back to the early human relations
view organizations that originated in the 1940s. Human relations theorists
viewed the informal, nonmaterial, interpersonal, and moral bases of
cooperation and commitment as perhaps more important than the formal,
material, and
         Instrumental controls stressed by the rational system theorists
(see Chapter 3: Overview of the Management and the Organizational
Effectiveness Literatures). The human relations perspective drew its
inspiration from even earlier anthropological and sociological work on
culture associated with groups and societies (see Greets 1973; Mead 1934;
Durham 1964; Weber 1947, 1958).
         Attention to organizational culture lost ground as organizational
science, and social science in general, became increasingly quantitative. To
the extent that research on organizational culture survived, its focus shifted
to its more measurable aspects, particularly employee attitudes and
perceptions and/or observable organizational conditions thought to
correspond to employee
         Perceptions (i.e., the level of individual involvement, the degree
of delegation, the extent of social distance as implied by status differences
and the amount of coordination across units). This research, referred to as
organizational climate studies, was prominent during the 1960s and 1970s
(Denison 1990). The renewed interest in organizational culture that
emerged in the late 1970s
         and resulted in the four books mentioned above suggested that a
deeper, more complex anthropological approach was necessary to
understand crucial but largely invisible aspects of organizational life. This
renewed interest in organizational culture represented a return to the early
organizational literature but it went far beyond this literature in
contributing important new insights and ways of thinking about the role,
importance, and characteristics o organizational culture. Also, research on
the effect of culture on organizational performance and investigations into
how organizational cultures are created, maintained, and changed received
greater attention. The main difference was that organizational culture was
now viewed less as a natural, organicallyemergent phenomenon and more
as a manipulability and manageable competitive asset.
What is Organizational Culture?
Definitions of organizational culture initially focused on distinguishing
levels of organizational Culture and strong versus weak cultures.Ch 11
Organizational Culture 06.08.02.doc 3 2.20.02Levels of Organizational
Culture Many definitions of culture give primacy to the cognitive
components, such as assumptions, beliefs, and values. Others expand the
concept to include behaviors and artifacts, leading to common distinction
between the visible and the hidden levels of organizational culture –
distinction basically corresponding to the climate/culture distinction noted
above (Katter andHeskett 1992). In contrast to the distinction between the
visible and hidden levels, some theorists
         distinguished multiple levels. Schein (1985), one of the foremost
experts in thearea, identifiesthe following levels, as shown in Figure 1.
Figure 1. Levels of Organizational Culture (Adapted from Schein1980;
Schein1985)In Schein‘s view, fundamental assumptions constitute the core
and most important aspect oforganizational culture. Accordingly, he offers
the following formal definition of organizational




2.4 cultures:

         A pattern of shared basic assumptions that the group learned as it
solved its problems ofexternal adaptation and internal integration, that has
worked well enough to be consideredvalid and, therefore, to be taught to
new members as the correct way to perceive, think, andfeel in relation to
those problems (Schein 1992:12).While the deeper levels may have been
somewhat invisible in the past, this may no longer be thecase. As a result
of greater attention being directed at managing culture, organizations
arerecognizing the importance of articulating and stressing their
fundamental assumptions. This issimilar to what later happens with
knowledge management – greater attention becomes directedat making the
tacit knowledge within an organization more explicit and accessible (see
Chapter 5:Ch 11 Organizational Culture 06.08.02.doc 4 2.20.02
         ―Knowledge Management‖). This suggests a general trend
toward more explicitly managingwhat previously was considered largely
unmanageable.
         Strong versus Weak CultureAlthough all organizations have
cultures, some appear to have stronger, more deeply rootedcultures than
others. Initially, a strong culture was conceptualized as a coherent set of
beliefs,values, assumptions, and practices embraced by most members of
the organization. Theemphasis was on (1) the degree of consistency of
beliefs, values,assumptions, and practice acrossorganizational members;
and   (2)    the   pervasiveness    (number)     of   consistent   beliefs,
values,assumptions,   and    practices.   Many    early   proponents    of
organizational culture tended to assumethat a strong, pervasive culture was
beneficial to all organizations because it fostered motivation,commitment,
identity, solidarity, and sameness, which, in turn, facilitated internal
integration andcoordination. Some, however, noted that a strong culture
might be more important for sometypes of organizations than others. For
example, volunteer organizationsmay need to stressculture more than
business organizations. Stillothers noted potential dysfunctions of a
strongculture, to the point of suggesting that a strong culture may not
always be desirable. For example,strong culture and the internalized
controls associated with it could result inindividuals placing
         .




2.5 Theories of Organizational Culture
Just as there are differing perspectives on what organizational culture is,
there are differing
Perspectives regarding how it functions. Denison (1990) identifies four
basic views of
Organizational culture that can be translated into four distinct hypotheses:
♦ the consistency hypothesis – the idea that a common perspective, shared
beliefs and Communal values among the organizational participants will
enhance internal Coordination and promote meaning and a sense of
identification on the part of its
Members.
♦ The mission hypothesis – the idea that a shared sense of purpose,
direction, and strategy can coordinate and galvanize organizational
members toward collective goals.
♦ The involvement/participation hypothesis – the idea that involvement
and participation will contribute to a sense of responsibility and ownership
and, hence, organizational commitment and loyalty.
♦ The adaptability hypothesis – the idea that norms and beliefs that
enhance an
organization‘s ability to receive, interpret, and translate signals from the
environment into internal organizational and behavioral changes will
promote its survival, growth, and development. These hypotheses focus on
different aspects of culture but more importantly, they stress different
functions of culture. The first two hypotheses tend to encourage/promote
stability; the second two allow for change and adaptability. The first and
third hypotheses see culture as focusing on internal organizational
dynamics; the second and fourth see culture as addressing the relation of
the organization to its external environment. Stability/Control
Change/Flexibility
Internal Consistency Involvement/participation External Mission
Adaptability
These hypotheses about organizational culture correspond closely to
Cameron and Quinn‘s (1999) categorization of organizational effectiveness
perspectives and associated types organizations, as shown below.
Stability/Control Flexibility/Discretion Internal Focus/ Integration
Hierarchy Clan External Focus/ DifferentiationMarket Adhocracy
Handy (1995), well-known for his characterization of four dominant types
of leaders ascorresponding to gods of Greek mythology, also distinguishes
key



Types of organizational
Cultures that correspond to different organizational forms. He asserts that
clearly distinguishable organizational cultures give rise to four types of
leaders, which he characterizes as: Zeus, Apollo, Athena, and Dionysus.
These distinct cultures (just as clan-based, hierarchy-oriented, marketCh
11 Organizational Culture 06.08.02.doc 6 2.20.02
based, and adhocracy-based cultures) are associated with organizations
thecae congruent attributes across multiple technical/functional
dimensions.
In contrast to identifying distinct types of organizational cultures, there
has-been a growing tendency to recognize and emphasize cultural
complexity (Denison et al. 1995). One approach to incorporating greater
cultural complexity is to recognize that most organizations today will have
some aspects of all of these cultures. This view of culture focuses on the
need to balance and manage the mix. The problem with this view is that
culture tends to lose any sense of coherency. It is difficult to see culture, in
this sense, as providing meaning or motivating/inspiring organizational
members to behave in particular ways. There is an alternative approach to
cultural complexity that avoids the problem that culture will
fail to provide meaning and a sense of corporate identify. This approach
moves beyond differentiating cultures in terms of technical/functional
orientations (i.e., external versus internal orientation, stable versus change
orientation, control versus individual discretion, directive versus
Participative, autocratic versus democratic, task-oriented versus
relationship-oriented, integrative versus adaptive, sameness versus
differentiation, transactional versus transformational). Rather
Than seeing the role of organizational culture as balancing competing
technical needs and, thus, becoming a complicated mix of cultural types,
organizations are viewed as consisting of multiple,
differentiated cultural orientations directed at critical ways of thinking and
behaving as a member of the organization. These cultural orientations can
include ways of thinking and behaving with respect to change, diversity,
conflict, innovation, organizational learning, knowledge
management, partnership or alliance building, relationship formation, and
corporate responsibility. This cultural differentiation perspective sees
cultures being developed around various critical organizational aspects
rather than based on competing orientations. The key is to identify and
effectively manage key cultural orientations, develop synergies between
them where possible, and prevent them from conflicting with one another.
Although, in many cases, these
various orientations can be highly interrelated and mutually reinforcing,
there is not necessarily a need for a single overarching culture that
incorporates everything. Perhaps, atmost, there may be a coherent set of
shared basic assumptions and values. This notion of cultural differentiation
is similar to but not the same as the notion of subcultures. Cultural
differentiation refers to somewhat distinct, though not necessarily
conflicting, cultures associated with different organizational aspects, while
organizational subcultures refer to
different cultures developing among distinct organizational occupational
groupings or professions (such as blue collar/white collar/management
subcultures; subcultures of engineers/ production workers/ marketing and
sales/managers; and/or cultures associated with various scientific or
professional disciplines). Subcultures often refer to informal emergent
cultures whereas differentiated cultures are more likely to refer to more
formal and managed cultures, but this is a hazy distinction.




   ‗
2.6 Increasing Importance of Organizational Culture
Schein (1992) suggests that organizational culture is even more important
today than it was in the past. Increased competition, globalization, mergers,
acquisitions, alliances, and various workforce developments have created a
greater need for:
♦ Coordination and integration across organizational units in order to
improve efficiency, quality, and speed of designing, manufacturing, and
delivering products and services
♦ Product innovation Ch 11 Organizational Culture 06.08.02.doc 7 2.20.02
♦ Strategy innovation
♦ Process innovation and the ability to successfully introduce new
technologies, such as information technology
♦ Effective management of dispersed work units and increasing workforce
diversity
♦ Cross-cultural management of global enterprises and/or multi-national
partnerships
♦ Construction of meta- or hybrid- cultures that merge aspects of cultures
from what were distinct organizations prior to an acquisition or merger
♦ Management of workforce diversity
♦ Facilitation and support of teamwork.
In addition to a greater need to adapt to these external and internal changes,
organizational culture has become more important because, for an
increasing number of corporations, intellectual as opposed to material
assets now constitute the main source of value. Maximizing the value of
employees as intellectual assets requires a culture that promotes their
intellectual participation and facilitates both individual and organizational
learning, new knowledge creation and application, and the willingness to
share knowledge with others. Culture today must play a key role in
promoting
♦ Knowledge management (see Chapter 5)
♦ Creativity (see Chapter 15)
♦ Participative management (see Chapter 10)
♦ Leadership (see Chapter 12).




Effects of Organizational Culture
There has been a great deal of anecdotal evidence and some empirical
evidence regarding the Performance effects of organizational culture.
Anecdotal evidence begins Peters and Waterman's In Search of Excellence
(1982). This book basically stimulated the now familiar business school
case study approach. More recent anecdotal evidence regarding the most
successful companies in
the last several decades has also been proffered. According to Cameron
and Quinn (1999), many of the most successful companies, including
Southwest Airlines (21,775%return on investment [ROI]), Wal-Mart
(19,807% ROI), Tyson Foods (18,118% ROI), Circuit City (16,410%
ROI), and Plenum Publishing (15,689% ROI), score low on well-
established critical success factors (i.e., entry barriers that prevent
organizations from competing for the same market, nonsubstitutable
products, low levels of bargaining power on the part of buyers due to
customer dependence, low levels of bargaining power for suppliers
because they have no alternative customers, a large market share that
promotes economies of scale, and rivalry among the competition that
deflects head-to-head competition with a potential dominator). These
unlikely
winners have strong leadership that promotes unique strategies and a
strong culture to help them realize these strategies. There is also strong
anecdotal support indicating that the primary cause of failure of most
major change efforts (such as TQM and reengineering) has been the failure
to
successfully change the organizational culture (CSC Index 1994; Caldwell
1994; Goss et al.
1993; Kotter and Heskett 1992).Kotter and Heskett (1992) have attempted
to make this intriguing, but admittedly inconclusive, anecdotal evidence
more systematic and empirical. They had financial analysts identify the
firms they considered most successful and then describe the key factors
discriminating these firms from those that were less successful. Seventy-
four of the seventy-five analysts indicated that
Ch 11 Organizational Culture 06.08.02.doc 8 2.20.02 organizational
culture was a key factor. In addition, Denison (1990) found empirical
support for the participation/involvement view of culture – higher levels of
employee participation were correlated with better organizational
performance.
In contrast to this supporting anecdotal and empirical evidence, it has
become well known, and a point of great contention, that the exemplary
companies identified by Peter and Waterman (1982)
did not remain exemplary. The general explanation for this is that these
companies failed to
Change with the times – perhaps the very strength of their culture and their
past success prevented, them from quickly and successfully adapting to
new environmental requirements (Christensen 1997). This paradox
suggested the need for more longitudinal investigations of the effects of
organizational culture. Growing evidence that excellent companies do not
remain excellent for
long also suggests that the traditional notion of a strong culture may need
to be replaced with a more discerning understanding of the types and role
of culture and the need to change culture over the life cycle of the
organization. For example, perhaps a strong consistent culture is useful in
the beginning start-up phase of an organization but a mature organization
may need to become
More differentiated as well as more oriented to change and learning. What
is important for long-term organizational success may not be a particular
type of organizational culture perse but the ability to effectively manage
and change the culture over time to adjust to changes in the situation and
needs of the organization. This understanding has pointed to the need for a
more dynamic
understanding of culture and the role of organizational leaders in ensuring
that the culture contributes both to the organization‘s current and future
success.
Schein (1992) argues that leadership today is essentially the creation, the
management, and at times the destruction and reconstruction of culture. In
fact, he says, ―the only thing of importance that leaders do is create and
manage culture‖ and ―the unique talent of leaders is their ability to
understand and work within culture‖ (1992:5). Leaders must be able to
assess how well the culture is performing and when and how it needs to be
changed. Assessing and improving organizational culture as well as
determining when major cultural transformations are necessary
is critical to long-term organizational success. Managing differentiated
cultures and creating synergies across these cultures is also a critical
leadership challenge. Effective culture
management is also necessary to ensure that major strategic and
organizational changes will\ succeed. Basically, culture management is a
key leadership and management competency. ,We are all aware of
successful leaders (Her, Kelleher of Southwest Airlines, Lee Iacocca of
Chrysler, Alfred P. Sloan of G.E., General Robert E. Wood of Sears,
Roebuck & Co.) who have succeeded in transforming the culture of the
organization. In addition, a study of U.S. presidents found that charismatic
presidents had better performance on a variety of dimensions, including
economic and social performance (House, Spangler, and Woycke 1991).2
However, effective cultural management does not depend on great
individual leaders and charisma. Charisma may be an advantage in times of
crisis and change, but solid instrumental leadership can be as, or more,
effective in more normal circumstances (Collins and Porras 1994:7-8).
Criticalinstrumental mechanisms for changing and managing culture
include
♦ Strategic planning and the identification of necessarily cultural requisites
(see Chapter 3.
―Strategy‖)
♦ Ensuring consistency of culture with mission, goals, strategies, structures
and processes
♦ Creating formal statements of organizational philosophy and values
2 Charismatic leaders were not more effective in international relation,
however, indicating that charisma may be more effective at home the
abroad and/or that international relations may involve more factors outside
of presidential control.Ch 11 Organizational Culture 06.08.02.doc 9
2.20.02
♦ Establishing consistent incentives, recognition systems, and performance
measurement(see Chapter 6. ―Performance Assessment of Publicly Funded
Science‖)
♦ Maintaining appropriate error-detection and accountability systems
(Schein 1999)
♦ Coaching, mentoring, informal and formal training, and identifying role
models (Schein1999)
♦ Embracing appropriate rites, rituals, symbols, and narratives (Schein
1999)
♦ Taking advantage of the growth of subcultures (Schein 1999)
♦ Managing and promoting strong communities of practice (Wenger and
Snyder 2000, alsosee Chapter 5. ―Knowledge Management‖).




2.7 Organizational Cultural Change

Cultural change typically refers to radical versus limited change. It is not
easy to achieve; it is a difficult, complicated, demanding effort that can
take several years to accomplish. There arethree basic types of cultural
change (Trice and Beyer 1991):
♦ Revolutionary and comprehensive efforts to change the culture of the
entire organization
♦ Efforts that are gradual and incremental but nevertheless are designed to
cumulate so as
to produce a comprehensive reshaping of the entire organizational culture
♦ Efforts confined to radically change specific subcultures or cultural
components of the overall differentiated culture. Strategies for effecting
cultural change include (Schein 1999):
♦ unfreezing the old culture and creating motivation to change
♦ Capitalizing on propitious moments—problems, opportunities, changed
circumstances,
And/or accumulated excesses or deficiencies of the past
♦ making the change target concrete and clear
♦ maintaining some continuity with the past




2.8 Some Types of Culture
There are different types of culture just like there are different types of
personality. Researcher Jeffrey Sonnenfeld identified the following four
types of cultures.
Academy Culture
Employees are highly skilled and tend to stay in the organization, while
working their way up the ranks. The organization provides a stable
environment in which employees can development and exercise their
skills. Examples are universities, hospitals, large corporations, etc.
Baseball Team Culture
Employees are "free agents" who have highly prized skills. They are in
high demand and can rather easily get jobs elsewhere. This type of culture
exists in fast-paced, high-risk organizations, such as investment banking,
advertising, etc.
Club Culture
The most important requirement for employees in this culture is to fit into
the group. Usually employees start at the bottom and stay with the
organization. The organization promotes from within and highly values
seniority. Examples are the military, some law firms, etc.
Fortress Culture
Employees don't know if they'll be laid off or not. These organizations
often undergo massive reorganization. There are many opportunities for
those with timely, specialized skills. Examples are savings and loans, large
car companies, etc.




2.9 Banking of Tomorrow
I am happy to be here today amongst you at the prestigious campus of
JNIBD to share my thoughts on the emerging trends in the banking sector,
especially in the HR area. All of you as HR managers will surely agree that
HR development and management cannot be seen in isolation but in the
context of the business and operational environment. The high level of
competition in the market, increased awareness and quality consciousness
of the people, changing social values, increasing emphasis on good
corporate governance, etc. have influenced the changes in the environment
in a significant way. Yet, today, if there has been a sea change in the way
banking business, both retail and otherwise, is conducted across the
country and even beyond, it is primarily due to rapid advancement in
technology. I would, therefore, like to spend a while exploring how
technology has changed the face of banking and the shape of things to
come in the foreseeable future before identifying the HR related issues.
Over the last three decades or so, there has been a remarkable increase in
the size, spread and activities of banks in India. The number of bank
branches rose considerably during this period. The business profile of
banks has transformed dramatically to include non-traditional activities
like merchant banking, mutual funds, new financial services and products,
personal investment counseling, etc. The entry of new banks intensified the
competition to attract and retain customers. Computerisation was
inevitable both in the interest of customer service and operational
efficiency.
The Rangarajan Committee report in the early 1980s perhaps served as the
first blueprint for computerization and mechanization of banks in the
country.      Since then banks have traveled a long way through various
phases viz. from Automatic Ledger Posting Machines (ALPMs) to Total
Branch Automation to ATMs, mobile ATMs, internet banking, etc. Today,
banks are vying with each other to offer their customers not just Anytime
Banking but Anywhere Anytime Banking.            All these advancements
primarily aimed at providing better and more innovative services to
customers.
With a view to bringing about improvements in the systemic efficiency of
the banking sector, the Reserve Bank of India has taken quite a few
initiatives in the recent years.
The introduction of MICR technology for cheque processing introduced
initially in the metropolitan cities in the late 1980s was one such initiative.
The establishment of the INFINET (Indian Financial Network) was
another major initiative of RBI. This was prompted by the perceived need
for a robust means of communication not only between branches of banks
or across different banks but also with the constituents of banks. The
INFINET, which has been functional for over 3 years now, is an efficient
and cost-effective communication backbone for the Banking and Financial
Sector. It offers an exclusive, safe and secure communication network for
the use of the banking sector. The network is managed by the Institute for
Development Research in Banking Technology (IDRBT) at Hyderabad.
Today, banking requires decision making on the basis of empirical data
and it is imperative that information managers use the best available means
for information transfer on real time basis. The INFINET provides the
required infrastructure and it remains to be seen as to how best the banks
exploit its potential.
One of the areas which could derive considerable benefit from the
advances in computing and communication technology and in which the
Reserve Bank is playing a key role relates to payment and settlement
systems. As you are all aware, payments in India are largely cash based
although there are non-cash based payments as well. The usage of
electronic means of funds movement and settlement is slowly but surely
acquiring importance. The Electronic Clearing Services (ECS) – both
Debit Clearing and Credit Clearing has helped eliminate avoidable paper
instruments in respect of large volume but relatively small value payments
of repetitive nature. The Electronic Fund Transfer (EFT) system has
facilitated remittance of funds from one bank branch to an account in
another bank branch at a different centre quickly and securely
To have secured and safe transfers the Structured Financial Messaging
Solution (SFMS) – an application which would be riding on the INFINET
communication backbone has been introduced by RBI. SFMS would have
adequate security measures incorporated including that of PKI - Public
Key Infrastructure, with encryption software comparable to some of the
best implementations in the world. The message formats used in SFMS are
very similar to those used by SWIFT, resulting in ease of usage by banking
community in the country. This secure messaging backbone can be used
for a number of intra-bank applications also.
The Centralised Funds Management System (CFMS), the Centralised
Public Debt Office (PDO) project comprising the Negotiated Dealing
System (NDS) and the Securities Settlement System (SSS), the Real Time
Gross Settlement System (RTGS) are a few other products which are slated
to assume a significant role in the near future.
The initiatives that I have mentioned have a cascading effect on the
functioning of banks. It is essential that all the banks are equipped with
synchronous computer systems. The proliferation of a variety of platforms
– relating to hardware, operating systems, software and application
software has resulted in many banks having different platforms; it has thus
become essential to have interfaces, which would ensure seamless
integration across different systems. While the central inter-bank
applications developed and provided by the Reserve Bank would have well
tested Application Programme Interfaces (APIs) which would achieve this
objective, banks would have to get their internal software ready for this
purpose.
Various other forms of electronic based payments have also been slowly
making their      viz., Credit cards, ATMs, Stored Value cards, Shared
Payment Network Services (SPNS), etc. and I am sure you are aware of the
role of technology in respect of these.

Changing Scenario
The changes staring in the face of bankers relate to the fundamental way of
banking – which is undergoing a rapid transformation in the world of today
in response to the forces of competition, productivity and efficiency of
operations, reduced operating margins, better asset / liability management,
risk management, anytime and anywhere banking. The major challenge
faced by banks is to protect the falling margins due to the impact of
competition. Falling profit margins call for increasing volumes so as to
result in better operating results for banks. This will be best achieved by
exploiting the advantages of technology, which facilitates handling
increased volumes at higher levels of efficiency and enhancing customer
relationships.
It is in this context that there is an imperative need for not mere technology
upgradation but also its integration with the general way of functioning of
banks to give them an edge in respect of services provided to their
constituents, better housekeeping, optimizing the use of funds and building
up of MIS for decision making, better management of assets & liabilities
and the risks assumed which in turn have a direct impact on the balance
sheets of banks as a whole. Technology has demonstrated potential to
change methods of marketing, advertising, designing, pricing and
distributing financial products and services and cost savings in the form of
an electronic, self-service product delivery channel. These challenges call
for a new, more dynamic, aggressive and challenging work culture to meet
the demands of customer relationships, product differentiation, brand
values, reputation, corporate governance and regulatory prescriptions.
Technology holds the key to the future success of Indian Banks.
Having discussed about the changed and constantly changing scenario, and
before I focus on Human Resources & Skills that are required to cope with
these rapid changes, I would like to answer certain general questions
which are surely in your mind viz. What to change ? How to change ? and
Why to change ? Business leaders in US in one of the annual surveys done
in early 90‘s were asked as what changes they considered important for
their success in business. They came out with several aspects and out of
which they said the following fourteen are vital and crucial viz.,
    Initiating major re-organisation plans
    Improving competitiveness through implementation of total quality
      management processes
    Incorporating information systems as an integral part of business and
      production strategies
    Responding to new or increased global competition
    Rightsizing the workforce
    Initiating cost-containment mechanisms
    Adjusting to the changing profile and needs of today‘s employees
    Ensuring customer focus with emphasis on customer-service attitude
      and behaviour throughout the organisation
    Establishing new products and markets
    Dealing with the turmoil associated with mergers, acquisitions and
      leveraged buyouts
    Redefining organisational culture to be more supportive of corporate
      business objectives
    Complying with new Government regulations
    Establishing employee-involvement programmes to generate a sense
      of empowerment and commitment
    Incorporating new production / manufacturing procedures and
      machinery.

I am confident that the executives present here would imbibe these things
in their mind to look forward a bright future of Indian Banking. Indian
banks have always proved beyond doubt their adaptability to change and I
am sure it would be possible for them to mould themselves into agile and
pliant organisations by adopting fine-tuned customer relationship
strategies, revitalised recruitment, selection and placement policies,
operations based on asset-liability and risk management systems, the
required technological capabilities and developing the human resources to
meet the challenges of the paradigm shift.




HR in Banking


I am aware that the bankers are increasingly aware of the importance of
technology for their operations, and if I may add, survival. Banks are
adopting and adapting to technological tools to further their businesses.
This new technology is transforming the skill structure in banking. What
then exactly is the impact of technology on the human resources employed
in banking ? How should an HR Manager in a bank respond to this fast
changing scenario ? For the first question, we do have some answers
thanks to a study by OECD on the impact of technology on human
resources in banking and insurance companies in France, Japan, Germany,
Sweden and the United States of America. In the study, the authors
compared the old competencies with the emerging new competencies and
the findings were as follows :
                          Changing Competencies
      Old Competencies                       New Competencies
  1. Ability to operate in well              Ability to operative in ill-defined and
     defined and stable                      ever changing environment.
     environment
  2. Capacity to deal with                   Capacity to deal with routine and
     repetitive straight-forward             abstract work process
     and concrete work process
  3. Ability to operate in a                 Ability to handle decisions and
     supervised work environment             responsibilities
  4. Isolated work                           Group work, Interactive work
  5. Ability to operative within             System-wide understanding, ability
     narrow geographical and                 to operative within expanding
     time horizons                           geographical and time horizons
  6. Broad unspecified                       Specialized knowledge
     knowledge
  7. Procedural competencies                 Customer assistance oriented
                                             competencies.
    Source: Human Resource Management in Banks – Contemporary Issues by Dr. Jacob Mankidy


These new and enhanced skills would require new knowledge and
behavioral adjustments in respect of existing human resources.                        How
should an HR Manager in a bank respond to this fast changing scenario ?
In this context, the training system will emerge as an important tool of
intervention. The training system in the banking industry has a strong
structural base. However, in the past the training activities have been more
ritualistic due to absence of a strategic link between training and human
resources development. Today, it is important that the training function is
made an effective organizational intervention by establishing a clear policy
of training and development within the framework of total human resource
development. The training establishments need to be actively involved in
the total training process starting from the identification of training needs,
evaluation of training effectiveness and the benefits of training to the end-
users viz. the internal and external customers.


I thank you for the patient hearing.




CHAPTER- 3
 CONCLUSION
                              3.1 Conclusion



The core function of HRD in the banking industry is to facilitate performance
improvement, measured not only in terms of financial indicators of operational
efficiency but also in terms of the quality of financial services provided. Factors
like skills, attitudes and knowledge of the human capital play a crucial role in
determining the competitiveness of the financial sector. The quality of human
resources indicates the ability of banks to deliver value to customers. Capital
and technology are replicable but not the human capital which needs to be
valued as a highly valuable resource for achieving that competitive edge. The
primary emphasis needs to be on integrating human resource management
strategies with the business strategy. HRM strategies include managing change,
creating commitment, achieving flexibility and improving teamwork. The other
processes representing the overt aspects of HRM, viz. recruitment, placement,
performance management are complementary.
                            CHAPTER-4

                                        Annexure


4.1 Bibliography
         Books

         Websites

         Brochures & hand outs

         Company magazines
BIBLIOGRAPHY

         Book of Banking Management

         Sikkim Manipal Center for Management Research]

 2. Websites:

         Iwww.kotakmahindralifeinsurancea.com

         www.dde.smuhmts.edu



 3. Brochures & hand outs

 4. Company magazines

				
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