bANK z (A HYPOTHETICAL CASE)
the theme of “sustained profitable growth” or “diversified and balanced business portfolio” during two different fiscal years. The bank has responded by evolving three different forms of Strategic Responses lately to retain the leading position among the private sector banks. These three Strategic modes are;
N Strategic responses related to portfolio management
N Strategic responses related to Process management
N Strategic responses related to Structure in the Bank.
Strategic responses related to portfolio management:
Diversification: By 2002 the bank proposes to diversify into the following areas of business:
N Consumer Finance
N Mutual Funds
N General Insurance
Joint Venture: In order to expand its operations the bank is trying to form joint ventures with some international players.
Collaboration: In order to launch insurance operations in India, the bank is negotiating with major European Insurance Company.
Strategic responses related to Process management
Its process related strategies consists of giving increased services to its customers such as introduction of ATM, extension of business hours at Tele Banking Counters (TBCs), Rejuvenation of customer service committee etc. Similarly it also includes marketing strategies like brand building, advertisements, up gradation of skills etc.
It also aims at providing various information technologies like email facility to 200 locations, CMS to 50 locations, Automating Forex Services etc. It also has a cost reduction strategy and the bank also has a quality strategy, which includes good inspection system, adherence to customer service manual and customer satisfaction.
Strategic responses related to Structure in the Bank
The Bank has introduced flat structure in place of its hierarchal structure and also has introduced a profit centre concept, which means that each region is a profit centre and is accountable for its business performances.
Identification and Assessment of HRD Responses:
The Bank has a wide array of HRD process and responses provided to its employees which are identified as hereunder;
N Compensation is according to IBA’s guidelines and also consistent with Consumer Price Index rate. A wide range of allowance and perks has been arranged. They are also entitled to receive soft loans, such as house building advance, vehicle loan, various policies and holiday advance. They also get statutory benefits like bonus, social security schemes etc.
N Working Conditions is excellent with no compromise made on any aspect. The bank emphasize on the congenial physical environment in the bank to attract the customers and to provide a comfortable working place.
N Family welfare Employees are well taken care of with the Family Welfare provision The bank provides medical aid to the dependent family member. The employees are also paid education allowance and each employee along with the dependent family members is entitled for leave travel concession and has also introduced a pension scheme.
N No proper written HR Policy inspite of having full-fledged HR Department: However it has a few booklets containing rules and regulations governing the sanction of advances and service rules.
N