The Bank had to face a dramatic cultural change with these challenges. Presently, major task of the banks is to mobilize the savings of the people; create, spread the banking habit, and mobilize the country resources. An equally important function is to effectively utilize its human resource. Studies shows that organizational culture has a significant influence on employee performance. This study is based on secondary data and its objective is to understand the significant changes in culture in SBI in past few decades and examines various cultural drivers of bank’s performance. Key words: Banks, Culture, Globalization, Public Sector, SBI Professor, Disha Institute of Management and Technology,Satya Vihar, Vidhansabha-Chandrakhuri Marg, Raipur- 492 101 ** Assistant Professor, Disha Institute of Management and Technology, Satya Vihar, VidhansabhaChandrakhuri Marg, Raipur- 492 101 International Journal of Research in IT, Management and Engineering www. gjmr. org 131 IJRIME INTRODUCTION Volume1Issue3 ISSN: 2249- 1619 Indian banking sector is growing rapidly and is expected to enjoy a better growth opportunities in the future. Several Indian banks are pursuing global strategies as Indian companies globalize and people of Indian origin are increasing investment in India.
At the same time, a large number of global banks have stepped up their focus on India. Therefore, the purpose of this study is to create a better understanding of organizational culture in banking organizations. Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress.
The Business plan on Introduction To Indian Banking Industry
... balance comprises private sector and foreign banks. The public sector commercial banks are divided into three categories.THE INDIAN BANKING SECTOR: ON THE ROAD ... a large population and land size, a diverse culture, and extreme disparities in income, which are marked ... 191511565 1916132314 191797625 191872091 OBJECTIVES OF STUDY To study the various development banks operating in India To give glance ...
The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks.
The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centered on the customer understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. The Bank had to face a dramatic cultural change with the challenges thrown by the private sector banks which provided customer oriented services while most of the staff in SBI was not aware of the fact that the bank was losing its hold amongst the upper end market.
This study attempts to look at the culture in State Bank of India and ascertain their prevailing culture and comparing the performance due to it. According to the Society for Human Resource Management (SHRM) Change Management Survey report “the top two obstacles encountered during the major organizational changes are communication breakdown and employee’s resistance. ”Biggest challenge for the management was to convey its idea of transformation to each and every employee of the organization. LITERATURE REVIEW
The Term Paper on Wal Mart Ethics Company Employees Management
Wal-Mart Stores, Inc. is currently entangled in a legal battle that will decide if the company has engaged willfully in gender-based discrimination. Underlying causes, organizational culture and ethical issues will be examined in determining how the largest private employer in the United States could have fallen prey to unfair labor practices. "In 1999, women constituted 72% of Wal-Mart's hourly ...
International Journal of Research in IT, Management and Engineering www. gjmr. org 132 IJRIME Volume1Issue3 ISSN: 2249- 1619 In today’s business environment, organizational culture is used as a powerful tool that portrays many facets of a workplace as well as to quantify the way a business functions (Gray, Densten & Sarros, 2003).
Research has confirmed that organizational culture is not only able to change, guide and display but also give significant contributions by influencing the thought, feeling, interacting and performance in the organization (Ab.
Aziz Yusof & Juhary Ali, 2000).
Culture has long been on the agenda of management theorists. Deal and Kennedy (1982) argue that culture is the single most important factor accounting for success or failure in organizations. The importance of culture is enhanced through its impact on employee morale and work attitudes such as job satisfaction (Dose, 1997).
Culture, at the workplace, is a very powerful force, which is consciously and deliberately cultivated and is passed on to the incoming employees. It is the very thread that holds the organization together.
The importance of corporate culture is emphasized by Peters and Waterman (1999:808), who state that, without exception, the dominance and coherence of culture proved to be an essential quality of the excellent companies. The recent awareness of organizational culture theory is evidence that ‘the time has come to write meaning and emotion back into organizations’ (Gabriel 1991, p. 319).
Despite the considerable body of organisational literature that has been conducted to examine the relationship between corporate culture and employees’ satisfaction in various countries as well as industries (for example, Chow et al. 2001; Mohammad Saeed & Arif Hassan, 2000; Pool, 2000; Rashid et al. , 2003; Grifford, Zammuto & Goodman, 2002; Lund, 2003; Sheridan, 1992), there is very little literature that recognises organisational culture studies within the context of the Banking industry, particularly on how employee morale amongst employees is affected by organisational culture dimensions that have otherwise attracted considerable attention in organizational literature. International Journal of Research in IT, Management and Engineering www. gjmr. org 133 IJRIME Fig. 1 Layers of Organizational Culture
The Business plan on Organization Alignment And Performance
Alignment of organization strategy and goals is very much necessary in ensuring individuals see how their effort and performance contribute to the attainment of an organization goals. When alignment is achieved, goals are clearly seen from the top management level downwards to all hierarchical levels. Proper alignment motivates employees as they can clearly see their effort in achievement of the ...
Volume1Issue3 ISSN: 2249- 1619 Source: Schein 1992:12 Schein (1985), one of the foremost experts in the area, identifies that the fundamental assumptions constitute the core and most important aspect of organizational culture. According to him, Culture is a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, which has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems (Schein 1992:12).
A Study on the Inter-relation among HRD Practices, Organizational Culture and Employee Efficiency in Indian Commercial Banks is conducted by R. Vijila in 2007. Another study on Person-Culture Fit and Employee Commitment in Banks by Nazir A Nazir derive implication that banks, especially in the public sector, need to pay due attention to socialization practices which are expected to result in strong cultures. The recent studies on banking industry specifically catering to India have concentrated only on the efficiency measurement of banks in terms of utilization of resources (i. . operating efficiency), but the main aspects of effectiveness of banks in achieving their pre-determined policy objectives is completely ignored (Debnath and Shankar, 2008; Sanjeev, 2006; Sensarma, 2006; Ram Mohan and Ray, 2004; Shanmugam and Das, 2004; Kumbhakar and Sarkar, 2003; Sathye, 2003; Mukherjee et al. , 2002; Saha and Ravisankar, 2000;Bhattacharyya et al. , 1997; Das, 1997).
International Journal of Research in IT, Management and Engineering www. gjmr. org 134 IJRIME CONCEPTUAL FRAMEWORK OF THE STUDY Volume1Issue3 ISSN: 2249- 1619
The survey examines three cultural drivers of bank’s performance: alignment, execution and renewal. Alignment indicates a shared understanding of where an organization is headed, what is its purpose and the strategy, and how supportive is its internal environment, including culture and interactions, to help employees achieve overall vision and aspirations. Strong alignment is one of the key attribute of an effective organization. Alignment may further be measured through Direction, Leadership and Environment in an organization.
Direction is the pathway understood by people aligned with the company’s vision or strategy and how it is to be achieved. Leadership at all levels inspires employees and shapes their actions to achieve better performance. Environment and values represent the quality of interactions that employees have to foster a shared understanding of core values. This may be achieved by sufficient collaboration and transparency and process driven efficiency and consistency. Execution is all about outcomes and supporting practices. Reporting and the performance assessment process ensure that people are accountable.
The Term Paper on Indian Bank Banks Banking India
Consolidation in the Banking Industry through Mergers and Acquisitions Banking scenario since 1991 has been a process of transformation and consolidation. With financial sector reforms implementation, the micro environment of banking sector has undergone a radical change. Almost all insulations to commercial banking have been peeled off and it has been susceptible to all types of exposures now. ...
Capability of the people may be judged by considering internal skills and talent that support the company’s strategy in order to create a competitive edge. Business performance and risk are measured and reported through coordination and control. Another factor is motivation; which is determined by understanding weather employees are inspired to perform and encouraged to stay with the company. The key attribute of an organization’s performance is renewal and is revealed by how the organization understands, interacts, responds and adapts to its situation and external environment.
External orientation is determined by knowing how constant two way interaction takes place between organization and customers, suppliers, partners, or other external groups that help create value. A flow of ideas and change ensures that the organization can sustain itself, survive and grow over time through innovative practices. The secondry data is collected through avilabale literatures on the above parameters to understand the level of compliance at SBI . The analysis is done to see if there is any change of approach to these parameters.
ALIGNMENT: International Journal of Research in IT, Management and Engineering www. gjmr. org 135 IJRIME The most remarkable change that took place in the life of SBI was the change in its vision document itself along with its mission and value statements that was rewritten in July 2008 by its employees. In the past, SBI’s lending was concentrated mainly in industry, which made it vulnerable to any downturn in industry. In the last decade, economic reforms increased incomes in the economy, particularly in services.
At the same time, with increasing competition, customers have also become more demanding. Volume1Issue3 ISSN: 2249- 1619 Deregulation offered banks the opportunity to expand the frontiers of their business. All this has increased the scope for consumer finance and retail banking. To leverage its reach covering a large number of consumers all over the country and diversify its asset portfolio, the bank has made consumer finance and retail banking a key focus area. The bank will also focus on infrastructure, enlarging coverage of midcorporate, trade, housing finance, and agriculture.
The Essay on Employee Portfolio Management Plan
The suggestions include sanctions for supplemental assessments, and each employee’s traits are assessed to illustrate how they’ll be advantageous regarding the operation of the organization. The three employees selected for the assessments were Andy McClaren, Ji Li, and Khanh Lam. Andy showed a general satisfaction with his daily job. To augment job satisfaction, the management team must present ...
SBI is intended to use technology to create a new paradigm in Indian banking and change the way customers see the bank, becoming business driven with IT as enabler. Core banking solutions, networking of branches/ATMS, ALM and treasury management, Internet banking, call centers, mobile banking and e-commerce are other planks of the bank’s IT strategy. In recent years, the bank has focused on three priorities. Golden Handshake scheme, also known as Voluntary Retirement Scheme was launched. Second initiative was mass computerization of its operations.
The third initiative was introducing ‘Parivartan’; a program to change the attitude of its largely rude staff. As per the corporate governance report, the SBI’s philosophy on code of governance is to ensure accountability for performance and customer service and to achieve excellence at all levels. There has been well defined organizational structure and a clear system of accountability and control system, which also take into account the RBI/CVC guidelines. International Journal of Research in IT, Management and Engineering www. jmr. org 136 IJRIME Fig. 2 The components of performance culture Volume1Issue3 ISSN: 2249- 1619 EXECUTION: The staff in the Bank is divided into three hierarchical levels Executives, Clerical and sub staff, with clerical staff as most populous. At the end of March 2009 executive staff accounted for 31%, clerical 47% and Sub staff as 22% of the total workforce. The officers are recruited through an all India Probationary Examination and the successful candidates join the bank at the Assistant manger level.
The bank is characterized by the strong hierarchy and a long chain of corporate ladder between the executives and Chairman namely Deputy Manager, Manager, Chief Manager, Assistant General Manger, Deputy General Manager, General Manager, Chief General Manager, Deputy Managing Director and Managing Director. For managing purposes the bank is divided into fourteen circles. Each employee is assigned a circle for HR purposes. International Journal of Research in IT, Management and Engineering www. gjmr. org 137 IJRIME The bank officers have certain financial and administrative powers depending on their position.
The Essay on Remote Bank Digipass Istrobanka Banking
. ": : -0, 2011 No 4: . Banking on security Slovakia - Istrobanka a. s. , has specified Vasco's Digipass security technology to safeguard its customers' remote access transactions made via the Internet and wireless devices. Digipass security allows the bank to strictly control account access, with dynamic passwords and two-factor authentication used to identify customers, while a digital signature ...
The delegation of financial powers of various officer grades has been decided by the Central Board, which is revised from time to time as per Government/RBI guidelines. A number of documents like manuals, book of instructions, codified circulars, scheme of delegation of powers, proceedings of the board etc. are used by the employees for discharging various functions. Volume1Issue3 ISSN: 2249- 1619 Fig. 3 Top Management Organizational Structure at SBI Financial decisions are taken at various levels by different officials depending upon their position and committee approach.
Centralized credit processing cells are being formed at some centers for sanctioning personal segment loans and loans under SBI segment. Branches source the applications and forward the same to the respective credit processing cells, for consideration. Regarding the loan sanction, officers consider the loan proposals and take decision on the basis of written schemes of delegation of powers, on the basis of merit of the proposals. For making any kind of purchases of equipments like computers or software etc. , branch manager has to take permission from the higher authority.
Thus, it is often noticed in organizations that in absence of clear cut instructions, people often tend to overlook even important issues under the presumption that others are taking care of. To obviate it, a welldrafted mechanism of monitoring loan accounts with a clear demarcation of roles and responsibilities of branches and administrative offices on the following lines. International Journal of Research in IT, Management and Engineering www. gjmr. org 138 IJRIME SBI has a dual role of earning a profit and expanding banking services to the population throughout India.
Therefore, the bank built an extensive branch network in India that included many branches in lowincome rural areas that were unprofitable to the bank. Nonetheless, the branches in these rural areas bought banking services to tens of millions of Indians who otherwise would have lacked access to financial services. Volume1Issue3 ISSN: 2249- 1619 RENEWAL: The advantages in products and efficiency of the private-sector banks became increasing evident in the late 1990s as SBI lost existing customers and could not attract the rapidly growing middle market in India. In fact, this echnology-savvy market segment viewed the public-sector banks as technology laggards that could not meet their banking needs. As a result, action sought to have the SBI modernize their core banking systems. In response to the competitive threats and entreaties from the government, SBI engaged KPMG Peat Marwick (KPMG) in 2000 to develop a technology strategy and a modernization road map for the bank. To bring about a mindset change in employees who have for decades worked in a non-competitive, monopolistic, public sector environment, State Bank of India (SBI) has launched ‘Parivartan`.
It was launched as a team thinking platform but was not a regular exercise, aggressive enough to have a tremendous effect on the employees. It touched the core of every employee forcing them to think about the way they behave, their attitude towards work. SBI had undertaken a massive computerization effort in the 1990s to automate all of its branches, implementing a highly customized version of Kindle Banking Systems’ Bank-master core banking system. However, because of the bank’s historic use of local processing and the lack of reliable telecommunications in some areas, it deployed a distributed system with operations located at each branch.
Although the computerization improved the efficiency and accuracy of the branches, the local implementation restricted customers’ use to their local branches and inhibited the introduction of new banking products and centralization of operations functions. For the first time ever in the history of public sector bank State Bank of India introduced the concept of Employees Stock Purchase Scheme to motivate its employees. Beside it the employees are provided various benefits by the bank to make their life easy. Another initiative to handle the employee’s grievances was to conduct an open house hour every week.
The staff was encouraged to give their suggestions about the bank and its working under the staff suggestion scheme. International Journal of Research in IT, Management and Engineering www. gjmr. org 139 IJRIME In a move to measure and improve customer satisfaction in the branches, the State Bank of India (SBI) has launched an over the counter Customer Feedback System (CFS).
CFS is an electronic feedback system, which would be given by the customers in a real time basis at the point of the transaction. The practice of customers meeting with the Regional Managers to know about their expectations from the bank is already on floor.
The move is taken to let them know about the expectations of the customers directly, creating more transparency in the system. Volume1Issue3 ISSN: 2249- 1619 CONCLUSION Organizational culture is apparently unifying and this strongly appeals to management’s concern with projecting an image of the organization as a community of interests. Perhaps most importantly culture penetrates to the essence of an organization. At SBI, people from a wide range of cultural, educational and geographic backgrounds who are able to challenge conventional thought, offer unique perspectives and generate innovative ideas.
The diversity of backgrounds, experiences and perspective of our employees creates a competitive advantage in serving clients and creating win- win situations. There’s a well defined system in SBI regarding decision making. In an all India survey conducted by Business Toady it was found that The State Bank of India figured in the list of the top ten employee friendly organization. It was recognized as the ‘employer of choice’. Though it is a surprise for a public sector organization to get such a title as the pay structures in the bank is only a fraction of what the competitors could pay.
The public sectors units are always at constraint as far as financial incentive are concerned but the SBI adopted a unique method to provide incentives to its employees, probably why it is an employee friendly organization. At SBI, people from a wide range of cultural, educational and geographic backgrounds who are able to challenge conventional thought, offer unique perspectives and generate innovative ideas. The diversity of backgrounds, experiences and perspective of our employees creates a competitive advantage in serving clients and creating win- win situations.
International Journal of Research in IT, Management and Engineering www. gjmr. org 140 IJRIME • • • • • • • • • REFERENCES Volume1Issue3 ISSN: 2249- 1619 Ahmed, Masood, Masood Ahmed Khan(2003), Banking in India, Anmol Publications, 13 Chatterjee, Debojyoti (2002), “The Great SBI Makeover,” Business Today, August 4 p. 56 Guha, Krishna(1998), “State Bank of India Faces a Bumpy Ride,” Financial Times, January 14, p. 38 Nazir A Nazir(2005), Person-Culture Fit And Employee, Commitment In Banks, Vikalpa Volume 30, No 3, July-September, p. 3 Narsimhan C R L(2002), ‘A Vision for the largest Bank’, The Hindu, Online edition of India’s National Newspaper, Thursday, Jan 24, p. 3 Mohan Prasad Shrivastava, Pradeep Kumar Pandey, V. P. Vidyarthi (2007), Banking reforms and globalization, APH Publishing, pp. 339-342 Singh Sampat (2004), Leadership in Indian Banking, ICFAI Books, pp. 117-124 Sharma Manoranjan (2008)), Dynamics of Indian Banking; views and vistas, Atlantic Publishers, pp. 160 State Bank of India(2009), World’s Largest Centralized Core Processing Implementation; website http://www. cs. com/sitecollectiondocuments/case%20studies/bancs_case_sbi. pdf accessed on 27th June, 2011 • Veni P & Sree Devi P (2011), ‘Credit Risk Management in State Bank of India – A Study on Perception of SBI Manager’s in Visakhapatnam Zone’, International Journal of Research in Commerce, Economics and Management, Volume No: 1 (2011), Issue No. 2 (June), pp. 31-37 • Verma Virenda(2004) , “SBI Stays a Star Performer,” Business Line, January 10, p. 77 International Journal of Research in IT, Management and Engineering www. gjmr. org 141
