Icici Case Group4

8/6/2019 Icici Case Group4

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CHANGE MANAGEMENT @

ICICI PRESENTED BYGROUP-4

ABHAS AMAR-01

CHANDRA PRAKASH-09

GARGI PRAGYA-11PRIYANKA PATHAK-24

GARIMA-12

PANKAJ KUMAR-22


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CHANGE MANAGEMENT


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INTRODUCTION

Established in 1955

Major shareholders:- UTI, LIC, GIC

Objective:-

Assist in creation, expansion and modernization ofenterprises

encourage and promote the participation of

private capital, both internal and external take up the ownership of industrial investment

expand the investment markets.


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MAJOR MILESTONES

Started merchant banking and retailing in

1987

Co-promoted India's first credit rating agency

Promoted India's first venture capital companyTDICI Ltd. In 1988.

Set up OCTEI IN 1991 with UTI

Tied up with JP Morgan to form investmentbanking company, ICICI securities Ltd.


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MERGERS AND ACQUISITIONS

Took over ITC classic finance Ltd. On 26- nov-

1997

Acquired Anagram finance on 21st

may- 1998 Merged with SCICI

Merged with Bank of Madurai in Dec. 2000


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REACTION CYCLE

Change Introduction Expected ChangeEnhancement

Shock

Denial

Anger Effect on productivity

Bargaining

Depression


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CHANGE MANAGEMENT

Change management is a structured approach

to shifting/transitioning individuals, teams,

and organizations from a current state to a

desired future state


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FACTORS FOR CHANGE

Nature of the workforce

Technology

Economic Shocks

Competition

Social Trends

World Politics


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ICICI AND K.V KAMATH

Kamath rejoined Indias leading financial services co. in1996 as the CEO replacing Narayan Vaghul.

Aimed at making ICICI a market driven co.

Initiated a lot of Organizational changes immediately tomake ICICI a financial powerhouse.

Kamath identified ICICIs limited expertise as the biggest

problem and decided to make ICICI .

Kamath identified the main problem as the company'signorance regarding the nuances of lending practices innewly opened sectors like infrastructure


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CHANGES BY KAMATH

Creation of infrastructure group (IIG), Oil & Gas

group(O&G), planning and treasury department

(PTD), structured project groups (SPG).

Creation of Client groups like major client group

(MCG), growth client group (GCG), personal

finance group.

Change in employee reward system


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EFFECTS OF CHANGE

A majority of the work along with a lot of good

talent shifted to the corporate center

An ex-employee remarked, "The way to get

noticed inside ICICI after 1996 has been to

attach yourself to people who were heading

these departments

These groups were seen as the thrust areasand if you worked in the zones it was difficult to

be noticed

Employees leaving the organization


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CONTD

GCG employees felt the lack of

opportunity

ICICI was blamed for not putting in adequate systems inplace to develop the right people.

Feedback process was questioned

No clear demarcation between internal skill group and clientrepresentative

In many cases the appraisal scores were same but the

bonus amount was not


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Industrial Credit and

Investment Corporation of

India


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MEASURES TO CHECK UNREST

Imparting new skills to existing employees

Reviewing the compensation structure in place


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IMPARTING NEW SKILLS TO EXISTING

EMPLOYEES

Training programmes and seminars were

conducted

Overseas training programmes.

Introduced a two-year Graduates' ManagementTraining Programme (GMTP)


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CHANGING THE COMPENSATION

STRUCTURE

Rewards related to group performances and

not individual ones

Two types of remuneration were considered1. A contract basis to attract risk-takers.

2. A tenure-based compensation to attract

employees who wanted security.

360-degree appraisal system put in place


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MERGER WITH BANK OFMADURA

ICICI was almost 3 times the size of BOM

Large differences in staff strength, salaries,designations, profiles, grades and work culture

ICICI was more individual performance orientedwhile BoM concentrated on overall profitability

of the bank


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MANAGING THE CHANGE

Technological upgrading of BoM branches

Hewitt Associates was appointed to facilitatesmooth cultural integration

Employee behavioral pattern study conducted


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MANAGING HR DURING THE ICICI-BOM

MERGER

Areas Of HR Integration Focussed On :

Employee communication Cultural integration

Organization structuring

Performance management

Training

Employee relations


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KEY FOCUS AREAS DURING THE

MERGER

Employee communication

Cultural integration Organization structuring

Performance management

Training Employee relations


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'POST-MERGER' EMPLOYEE

BEHAVIORAL PATTERN

PERIOD EMPLOYEE BEHAVIOR

Day 1 Denial, fear, no improvement

After a month Sadness, slight improvement

After a Year Acceptance, significant

improvement

After 2 Years Relief, liking, enjoyment,

business development activities


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RESULTS

By June 2001, the process of integration

between ICICI and BoM was started

Promotion schemes for BoM employees were

initiated


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Icici Case Group4

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