Organization culture - Case StudyOrganization culture - Case Study

Sri Surya Kumar

Tejas D Shah

Rishabh Mandovra

Suraj Prakash

Sarthak Chopra

Palash Saraf

Presented By:

04/13/23 1

What is Culture?

Personality of the organization. Comprised of the assumptions, values, norms

and tangible signs of organization members and their behaviors.

Difficult to express distinctly, but everyone knows it when they sense it

Particularly important when attempting to manage organization-wide change

04/13/23 2

Importance :

Organizational change failure is credited to lack of understanding about the strong role of culture and the role it plays in organizations. That's one of the reasons that many strategic planners now place as much emphasis on identifying strategic values as they do mission and vision.

04/13/23 3

Lewin’s Three-Step Change Model

04/13/23 4

RefreezingMovingUnfreezing

Implementing Change :

Unfreezing: getting ready for changeMoving: making the changeRefreezing: stabilizing the change

04/13/23 5

Unfreezing :

Arouse dissatisfaction with the current stateActivate and strengthen top management supportUse participation in decision makingBuild in rewards

04/13/23 6

Moving :

Establish goalsInstitute smaller, acceptable changes that reinforce and support changeDevelop management structures for changeMaintain open, two-way communication

04/13/23 7

Refreezing :

Build success experiencesReward desired behaviourDevelop structures to institutionalize the changeMake change work

04/13/23 8

Overcoming Resistance to Change :

Education and communicationParticipation and involvementFacilitation and supportNegotiation and agreement

04/13/23 9

Case Study:-

ICICI Bank merger with Bank of Madura (December 2000)

What does it reveal ?

It reveals the importance of change management for the Bank of Madura and how effective management of change could bring out best results from the employees in the Bank of Madura.

04/13/23 10

ICICI Bank Ltd

ICICI was established by the Government of India in 1955

3 times the size of BoM

Staff strength was only 1,400

departments into individual profit centers

Bank of Madura (BoM)

Established in 1943 at Madurai, Tamil Nadu. By 2000, it was number one bank in Tamil Nadu

One third the size of ICICI

Staff strength was 2,500

management concentrated on the overall profitability of the Bank

04/13/23 11

Immediate Impact :There were large differences in profiles, grades, designations and salaries of personnel There was uneasiness among the staff of BoM as they felt that ICICI would push up the productivity per employee, to match the levels of ICICI BoM employees feared that their positions would come in for a closer scrutiny. They were not sure whether the rural branches would continue or not as ICICI's business was largely urban-oriented.

04/13/23 12

Employee behavioral pattern study

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

04/13/23 13

What is the issue ?

The Bank of Madura BoM is bankrupt (with assets which are Rs.350 crores behind liabilities) . If we needed to bring BoM up to a point where its assets were 10% ahead of liabilities

For ICICI, taking over Bank of Madura (BoM) makes sense that has been one of those dynamic private sector banks and its staff are known for quality service.

04/13/23 14

What did ICICI expect?

It could be only three aspects :

Trained manpower.Immediate asset creation. Presence.

04/13/23 15

What did BOM expect ?

Widen its horizon.Technological up gradation.

04/13/23 16

Synergies of Merger :

Financial capability.

Branch Network.

Customer Base.

Tech Edge.

Priority sector advances.

Managing client Base.

Managing rural Branches.

04/13/23 17

Steps taken to Decrease resistance of change by ICICI :

Established clear communication channels throughout.Training programs were conducted which emphasized on knowledge, skill, attitude and technology to upgrade skills of the employees. Direct dialogue with the employee unions of the BoM to maintain good employee relations

04/13/23 18

Barrier’s :

Barrier to change.

Barrier to diversity.

Barrier to acquisition and merger.

04/13/23 19

By June 2001, the process of integration between ICICI and BoM was started ICICI transferred around 450 BoM employees to ICICI Bank, while 300 ICICI employees were shifted to BoM branches. Promotion schemes for BoM employees were initiated and around 800 BoM officers were found to be eligible for the promotions. End of the year, ICICI seemed to have successfully handled the HR aspects of the BoM merger.

“The win-win situation created”

04/13/23 20

“We do put people under stress by raising the bar constantly. That is the only way to ensure that performers lead the change process.”

“Enjoy Change! Be Ready To Change Quickly And Enjoy It Again”

K. V. Kamath, MD & CEO, ICICI.

04/13/23 21

04/13/23 22

04/13/23 23