Serandib Bank

CONTENT Page 1. Introduction. 1 2. executive director abstract. 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 paid Qualification in Human Resource heed 75th sight at the Institute of Personal Management Sri Lanka (IPM).The case is about the SerendiB lodgeing company which was playing a successful monopoly game in the patoisers field where wholly two other local swans were held collectable to the G everyplacenment regulations towards the implementation of alien posits in the country. The SerendiB wedge was leading the country with a module of 9,800 at the branches operating in individually leading town island wide. Very deep on its 50th anniversary, a new chief executive officer, Mrs. Maya Perera was appoint on her post who was just returned back to the country after sh atomic number 18 20 geezerhood at two foreign Bank s as a Top Executive.With the arrival of new chief executive officer, umpteen senior executives of the crack cocainet were miserable with her new approach which is emphasized on follo decoygs. Cooperate vision and strategies/ cargones objectives for nigh five years Creating customer friendly fulfill Introduction of a la mode(p) technology Motivating internal provide through extrinsic demand Promoting team build and achieving goals through team dynamics. The cuss was delighting its success for abutting two years till the time of arriving two foreign bevels and with that, on the spur of the import it faced a narrow drop in all aspects.The depose illogical its customers by 50% and the employee employee turnover was 22%. Finally the border has attached down its 22 branches and divest it two overseas operations. Executive Summary SerendibB Bank was practicing the seniority plated promotions, non-financial recognises for individual efforts and also rung enjoyed the traditional banking activities. But, new CEO emphasized the impotency of introduction of up-to-the-minute technology while motivating the lag through extrinsic want and promoting team work and achieving goals through team dynamism.Also, CEO wanted to incite people more towards the pecuniary final indemnifyments and as a result way introduced nearly a dozen of group inducings whilst statutory payments were paid in double over and above the legalized criteria. Although Bank achieved a higher(prenominal) ingathering rate in financial terms during the first two years tenure of new CEO, many senior executives were extremely unhappy with the CEOs 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 unfreeze with the newly introduce final payment schemes.Within first sextet calendar months, SerendibB lost over 50% of customer base and also drop in revenue. Further, Sere ndibB had to close down 22 branches and divested two overseas operations. This case study builds the employee return remainss butt joint sponsor schemes to achieve their goals. However, Employers must(prenominal) first distinguish each objective clearly before developing appargonnt and intangible reinforce strategys. Important goals some(prenominal)(prenominal) as employee retention and job satisfaction, performance hard currency advance and employee motivation potful be achieved by ranking the desired outcome of employee abide by computer programmes. . Problem Statement 1. The newly introduced final payment management schema does non barrack to the requirements of the employees in the organization. The tellingness of reward package is impacted by internal and external factors and it is of the essence(predicate) for employers to continually monitor, evaluate and adjust their rewards and benefits packages to operate that they continue to accumulate employee s deficiencyfully. Changes in the competitive landscape, in the economy, in employee quests and in demographics empennage all impact how effectively existing packages meet employee asks.Ongoing assessment of both internal drivers and external environmental impacts sack up help ensure that companies reward packages serve to drive retention in a positive demeanor. But, New CEO of SerendibB Has changed the existing reward management body without doing a puritanical study. Therefore, change of existing reward management governance is not suitable to entire organization and its requirement. 2. The newly introduced Reward Management system does not have the proper balance between the fiscal and Non Financial Rewards, individual and group rewards.Financial rewards and group inducements ar one way vexationes throw out show their appreciation to employees for hard work and dedication, but this should be just one piece of the compensation system. Non-financial rewards and indi vidual incentives fundament obtain just as much weight by empowering employees, as candid as giving them a sense of accomplishment and of belonging. CEO of this bank al ways promoted the monetary rewards and the team work concept among staff. Therefore, rewarding system should be balanced among financial and non-financial rewards as soundly as the diverse(prenominal) and the group incentives. . The Reward Management System is not consistent and sustainability. Employee reward systems can help employers achieve their organizational goals. However, employers must first identify each objective clearly before developing tangible and intangible reward systems. New CEO had taken a decision to pay in double the EPF,ETF and gratuity over and above the legalized criteria. But he hasnt checked whether the organization can afford such(prenominal) a huge expensein the future. At the same time legal consultants also sensible the top management not to grant excessive financial rewards.The refore, such a reward managements system doesnt have a sustainability, accord and credibility 4. The Reward Management System does not catering the purpose. Employers must offer employee rewards that the companys employees find meaningful. Well-managed employee reward management system have tangible affirmative effects on the employers bottom line results such as Attraction, retention, motivation, engagement, return on investment. Throughout the case it doesnt demonstrate the key values of reward management system.Further, Majority of the staff of the SerendibB bank left and joined with new foreign bank due to frustration. In that case SerendibB was failed to full fill the basic requirement of the reward management system. 5. The Reward Management System does not cater the requirements of the existing staffWithinfirst six months of opening the competitor banks, SerendiB lost over 50% of customer base and had to face huge drop in revenue. Also, many of the senior staff members joine d the new foreign banks. By that moment, top management of the SerendibB bank well knew the reason behind.But, nobody take steps to change or enhance the existing rewarding system so that best fit for the existing employees and retain them with the SerendibB bank. Alternatives 1. SerendibBBank should come up with incentive intents as follows for their employees in hostelry to reward staffs who contribute the most to the profitability goals of the bank. This allows employees to reap the rewards to their business acquisition activities and helps to promote a sense of self-achievement and teamwork. a) Bank need to identify those products and services that it wants to concentrate upon based on product demand, pricing and pretend analysis.For example, when a bank decides that too much of its assets are related to the condo securities industry, a shift toward other income producing real estate is made. in one case the incumbent year product and profitability goals are established, th e various departments of the bank are informed of the products that the bank is going to pursue. b) It is recommended consult with staff and trade gist and gets their ideas of a new incentive system. Also, management can conduct apprise survey to get the ideas of staff. Provide clear choices in survey in order to get clear answers.Ask questions like Would you prefer a cash reward or a personalized plaque for being employee of the month? Employee surveys should also nominate a variety of monetary and non-monetary awards and ask employees to list their preferences. c) A bank profitability system takes each product that the bank offers and classifies it according to the responsible department and customer account. The various customer accounts are depute to specific employee who manage the account and increase the business lot of the bank with the customer. The employees also acquire new customer accounts that generate profit.Therefore, a proper profitability system must be capab le of bring in the develop of existing and new customer accounts by employee in order to reward the efforts of the employee through the incentive program of the bank d) Once the various income-producing goals are established for the bank, the acquisition incentive program is communicated to the departments involved. For example, if incentive payments are being offered for acquiring new real estate business loans, the program details what the employee needs to do in order to earn an incentive payment.The typical program involves the payment of an upfront fee to the employee of two per centum for the original acquisition of new business and a five share payment after the first year of operation from the ongoing business of the customer. This type of program tends to bring the operation of the bank together e) The continual monitoring of the profit and loss goals of the bank according to customer and assigned employee must be transparent and available to the relevant employee, as w ell as to the department supervisor. This allows for total follow-up and monetary remuneration.It also shows where adjustments need to be made due to problematic relationships. Furthermore, it provides the historical base for progress and motivation. f) Measure employee satisfaction of new or improved incentive plan by obtaining ideas of employees or implementing a survey and review exit question information. In addition, analyze turnover rates before and after implementing the employee incentive program to measure the effectiveness of the new or improved rewards system. 2. monetary incentives encourage employee compliance, rather than encouraging risk-taking, since most monetary rewards consider un little employee performance.Employees may be motivated to perform in certain ways to achieve monetary rewards, rather than doing something because it is the right thing to do. This behavior can disrupt or end good working relationships among associates, since they have choke competit ors rather than co-workers, which ultimately disrupts the overall work environment. Non-monetary incentives have been used to reward employees for their good work by providing opportunities for training, flexible work schedules, improved work environments and sabbaticals.Therefore it is essential to take a good balance between non-monetary and monetary incentives as well as the group and individual incentives. Because it results in a more satisfying program to address the diverse interests and needs of employees. 3. With the lost of customer base, SerendibB bank is in a terrible finance situation. Bank is still paying the statutory payments in double to existing employees due to wrong decision taken by its CEO. Therefore, it is necessary to immediately double back such extra payment (EPF,ETF Gratuity)done by the bank to its employees and on behalf of employees. . SerendibB Bank need effective reward systems in order to rive employees to the bank support their existing employees an d maintain a satisfied workforce. The primary employee reward is usually pay. But, SerendibB has to offer a total reward system that implys good pay and other non-monetary incentives. Designing a total reward system is important task to be done by the bank to pencil lead the current problem it has faced. Therefore, bank can implement following to attract external people. a) Develop a competitive pay strategy.Benchmark (two foreign banks) the market pay scale for each compensated position in the organization. Once pay scales are determined, Deputy CEO can decide which positions should be paid at, at a lower place or above the average pay rate. hypercritical positions in the organization are often paid at higher rates to bear on valuable employees and avoid wasting resources on employee searches. b) pretend work-life rewards. These rewards include paid or unpaid sick time, paid eat and break times, childcare assistance, variable work schedules and other benefits that dont norm ally include pay, but are seen as valuable by employees.Organizations that are in a position that precludes paying traditional benefits can sometimes keep employees by offering these types of rewards c) Develop meaningful employee recognition programs. Many employees suffice to simple recognition for a job well done. This can be as easy and spontaneous as a simple thank you or more organized as a monthly or quarterly recognition lunch or dinner. Its important that people who are recognized are truly outstanding workers. Depending on the profitability of the organization employees be recognized with anything from cash to event tickets to a certificate. ) Initiate a career development program. Many employees will stay at organizations that offer fewer benefits if they can see that there is possible job improvement available in the future. Offering management training programs that truly stipulation employee a leg up on future career rise can be viewed as a valuable reward. This ca n be a very low-cost reward system that keeps employees for the long-term. Its important to single offer training to employees who truly deserve it. 5. At this crucial time, it is important to retain existing employees.Therefore it is requires to offer them a short tem rewards such as meal allowances, bonuses, transport allowances, health and life insurance, and one-year vacation in order to keep employees. Conclusion Most people work chiefly or even exclusively for the money they earn. No employee refuses more money, whether it is a one-time reward or a permanent pay increase, but employee rewards need not always be monetary. Raises and bonuses are among the most potent body of work rewards. The importance of rewards in the workplace extends beyond providing increased pay.Therefore, it is important to starta proper reward system in the bank with the aim of getting below results to the SerendibB bank and overcomeexisting problems which bank is experienced now. Staff Retention St aff turnover is expensive. It costs a company from 120 to 200 percent of an employees annual salary to replace him when he leaves. New hires often require significant time to reach peak performance. Staffs who feel that the bank recognizes their efforts are less likely to seek jobs elsewhere than those who feel that they are taken for granted. Maintaining MoraleAt this moment staffs of SerendibBsuffer from low morale. This is especially due to unhappy with CEOs new approach towards the reward system. Providing rewards can boost morale and need not be much costly. Enhancing Performance Rewarding employees often improves performance on the job. Nonmonetary rewards often let surprisingly sustained increases in staff productivity. Raises and bonuses also increase staff productivity. Carrot Versus Stick Motivation Bank staff is consisted with educated employees. winning a stick approach to bank discipline is often counterproductive in motivating staff.Punishments, in the form of negat ive public recognition, can quickly disintegrate into a finger-pointing exercise among employees eager to keep the spotlight away from themselves. Therefore, it is very vital to have a effective rewarding system in SerendibB bank to speed up the enlisting bear on and as well as to retain the existing staff . Implementation Implementing an employee reward program is a great way to charge up workers to excel. Not only does a program generate results for the people who win awards, but it also tends to increase productivity and drive staff to go along their most to the SerendibB Bank.Therefore, it is recommended to consider the below given areas when implementing and employee reward program to the SerendibB Bank. director HR should take an initiative to implement a reward insurance policy for the Bank so that it would be clear to the bank staff. Also, bank need to initiate a grievance handling system, so that staff can come up with any problem they have and look for a solution. If such is available staff might wait and see whether they can have solution before they go for drastic actions such as leaving form the bankCreate two lists of goals, one for the bank and one for the staff. Be clear on what the staff are expected to do at heart the program and what bank want to achieve by creating it. Increasing customers, meliorate staff morale or rewarding hard staff are all acceptable goals, as long as bankis clear on them. Decide on the type of prize that will be awarded. Prizes can be symbolic (an actual certificate or medal) or they can be material and focus on money rewards, special items or long-term rewards, such as more time off or a raise. Announce the timing of the reward system.It doesnt really matter bank plan on handing out awards on a monthly or quarterly basis, but it has to plan in advance. Management of SerendibBlet the staff realize what to expect and when. Once announce the program, HR department of the bank can do updates throughout the month or quarter to show where the process is going and how everybody involved is doing. Designate a leader to keep track of the system. This could be a manager, a staff who is not participating in the program. Create a schedule or a follow-up system so bank staff can track themselves and make the process easier for the leader..