Serandib Bank

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CONTENT
Page
1. Introduction……………………………………………………………………….1

2. Executive Summary……………………………………………………………….2

3. Problem Statement………………………………………………………………. .3

4. Alternatives……………………………………………………………………….5

5. Conclusion………………………………………………………………………...8

6. Implementations…………………………………………………………………..9

Introduction

This is the fourth assignment which I am forwarding as a case study for module 4 examination of Professional Qualification in Human Resource Management 75th Batch at the Institute of Personal Management Sri Lanka (IPM).

The case is about the SerendiB Bank which was playing a successful monopoly game in the Bankers field where only two other local banks were held due to the Government regulations towards the implementation of foreign banks in the country. The SerendiB Bank was leading the country with a staff of 9,800 at the branches operating in each leading town island wide.

Very recently; on its 50th anniversary, a new chief executive officer, Mrs. Maya Perera was appointed on her post who was just returned back to the country after serving 20 years at two foreign Banks as a Top Executive. With the arrival of new CEO, many senior executives of the bank were unhappy with her new approach which is emphasized on followings. Cooperate vision and strategies/ businesses objectives for next five years Creating customer friendly process

Introduction of latest technology
Motivating internal staff through extrinsic motivation
Promoting team work and achieving goals through team dynamics.

The bank was delighting its success for next two years till the time of arriving two foreign banks and with that, suddenly it faced a narrow drop in all aspects. The bank lost its customers by 50% and the employee turnover was 22%. Finally the bank has close down its 22 branches and divest it two overseas operations.

Executive Summary

SerendibB Bank was practicing the seniority based promotions, non-financial rewards for individual efforts and also staff enjoyed the traditional banking activities. But, new CEO emphasized the impotency of introduction of latest technology while motivating the staff through extrinsic motivation and promoting team work and achieving goals through team dynamism. Also, CEO wanted to encourage people more towards the monetary rewards and as a result management introduced nearly a dozen of group incentives whilst statutory payments were paid in double over and above the legalized criteria.

Although Bank achieved a higher growth rate in financial terms during the first two years tenure of new CEO, many senior executives were extremely unhappy with the CEO’s new approach.

With launching of two new foreign banks, many senior staff members left from the SerendibB and joined with this new banks for better prospects and relieve with the newly introduce reward schemes. Within first six months, SerendibB lost over 50% of customer base and also drop in revenue. Further, SerendibB had to close down 22 branches and divested two overseas operations.

This case study demonstrates the employee reward systems can help organizations to achieve their goals. However, Employers must first identify each objective clearly before developing tangible and intangible reward systems. Important goals such as employee retention and job satisfaction, performance improvement and employee motivation can be achieved by identifying the desired outcome of employee reward programs.

2.Problem Statement

1. The newly introduced reward management system does not fit to the requirements of the employees in the organization. The effectiveness of reward package is impacted by internal and external factors and it is important for employers to continually monitor, evaluate and adjust their rewards and benefits packages to ensure that they continue to meet employees' needs. Changes in the competitive landscape,...
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