Download - Barclays Report
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LETTER OF ACKNOWLEDGE
It has been a pleasure to be Dr. Kashif Mehmood students. We would like to thank him for
giving us the chance to understand and apply the theories of cross culture management in our
project. His lectures have been very informative. We are extremely grateful to him and
appreciate his efforts for providing us full support, encouragement and valuable guidance.
Sincere regards,
Lizna Tejani
Noureen Amin
Zarmeen Karimi
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LETTER OF TRANSMITAL
15th December, 2011
Dr. Kashif Mehmood
Iqra University
Respected Sir,
We are submitting this report, duly on 15-12-2011 that we are asked for. The report is entitled
Barclays Bank Communication Process.
The purpose of the report is to present the information about the cross culture management in
multi-national companies applied during the business operations worldwide.
Sincerely,
______________ _______________ ______________
Noureen Amin Zarmeen Karimi Lizna Tejani
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TABLE OF CONTENT
SERIAL
NUMBER
DESCRIPTION
PAGE
NUMBER
1 INTRODUCTION 4
2 HEIRARCHY 5
3
REGULAROTORY AND POLICIES
6
4 REWARDS AND BENEFITS 7
5 CULTURE AND DIVERSITY 8-9
6 STRATEGIES FOLLOWED AT BARCLAYS 10
7 EXECUTION PRIORITIES 10
8 CORPORATE SOCIAL RESPONSIBILITY 11-12
9 COMMUNICATION SYSTEM AT
BARCLAYS 13
10 PROBLEMS 14-15
11 SOLUTIONS 16-17
12 CONCLUSION 18-19
13 REFERENCES 20
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INTRODUCTION
Barclays is a huge multi-national bank. Now days it’s operating in over fifty countries,
providing service to protect money for customers and clients worldwide. Their services
include retail banking, credit cards, corporate and investment banking and wealth
management internationally in Europe, America, Africa, Asia and they are operating in
Pakistan since three years.
“We continue to believe the integrated universal banking model is the best one for all our
stakeholders. Our main focus is on executing our strategy and delivering on our promises to
customers and clients in everything we do, in every part of the business.”
Bob Diamond,
Chief Executive, Barclays PLC
Diversification of income by geography
41%
15%
24%
16%
4%UK
Europe
Americas
Africa and the MiddleEast
Asia
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HEIRARCHY OF BARCLAYS
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REGULATORY AND POLICIES:
English language is mandatory for all employees working in Barclays.
Employees should be formally dressed.
Employees should be punctual.
Employees should meet all deadlines given by their heads.
Head could be appointed from the host country or the home country branch.
Bonuses would be given on the basis of performance.
Internal information should not be leaked out by any employee for security reason.
Employees are allowed to take 15 days leave annually.
These policies are followed in all subsidiaries according to their countries and their
culture.
OTHER POLICIES:
Equality and Diversity:
Barclays promises to support employees, customers and client’s values and respect their
culture to maintain equality and diversity. There is no discrimination among genders, race,
religion etc. They give equal rights to every one. They maintain equality and diversity among
all employees, suppliers, community and business practices worldwide.
Human Rights:
Barclays practice human rights in their organization and encourage their employees by giving
equal opportunity. It also takes into account other universally accepted human right
principles.
They also promote human rights through their employment practices, and through their
supply chain.
Health Safety and Welfare:
Barclays provide healthy and better environment to their employees and provide them with
safety and welfare and ensure their bright future. If health and safety management would be
efficient it will have a positive effect on the services they are giving to the customers and
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clients. Effective operating environment will assist their employees to make their customer
satisfied and in return customer will generate more profits for all their employees,
stakeholders and the communities in which they are serving.
Supply Chain:
According to their operating model, they believe on doing partnerships with outsiders only for
the supply chain of products and services .they believe there is a huge indirect impact of these
partnership on environment and society.
Sometimes they outsource their requirements but they never outsource their duties and
responsibilities.
REWARDS AND BENEFITS:
Barclay’s employees have a wide range of incentives and benefits including private health
care, working flexibility and performance incentives, which are different on the basis of
regions in which they are working. Employees can also purchase shares and enjoy tax-free
share save and they are allowed to take 30 days holidays annually.
Following are some more benefits which are as given below:
Discounts
Share purchase
Remuneration
Flexibility
Health
Employee networks
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CULTURE AND DIVERSITY
Culture at Barclays:
Culture is the most important part in every organization because it’s the key to lead the
success. A true success can be identified not only where they stand but through the journey
which they have gone through. Success includes innovations and creativity which people have
made to attain their organization goals.
Collective/Individual Success:
Team work and individual work both are appreciated in Barclays. they follow winning
together strategy which leads them to success.
Focus on Customer and Clients:
They understand the needs and want of the customer and try to deliver accordingly.
Trust:
Trust is the most important part in banking sector and they have built customer relationship.
Pioneering:
The ability to innovate drive idea generation to get better operation quality.
Diversity at Barclays:
People who are talented are the basis of their success, no matter what their style, personality,
age, race, gender, sexual orientation, or disability.
Gender:
In Barclays they appreciate women representing in senior roles. While they realize that this is
a dispute in all financial sectors as a whole, they are firmed to do all they can to support
women in fulfilling their career potential at Barclays.
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Age:
Across the Group, age is part of Barclay’s global strategy on equality and diversity, defending
people from discrimination.
Sexual Orientation:
At Barclays people are treated fairly, irrespective of their sexuality. Including how they
execute equality policies and their act on recruitment.
Race and Culture:
Barclays creates an environment which appreciates and supports different cultures, beliefs
and backgrounds within the organization.
Personal Development at Barclays:
Barclays seeks new talent for getting innovative ideas to bring change and development
within the organization. They ensure that development of employees would not stop after the
completion of their learning activities.
A performance development cycle has been design to assist employees for getting a clear set
of objectives for the year and which is also important for taking the right decisions for the
company.
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STRATEGIES FOLLOWED BY BARCLAYS
They have selected best strategies to serve their customer and clients as well as they have
adjusted risk return for their stakeholders.
Customer and Client Focus:
Their first priority is to satisfy their customer’s needs and requirements for developing a long
term customer relationship.
Geographic Spread:
Their main objective is to meet the needs of their clients and build a diversified resources,
business areas and geographic exposure.
Product Breadth:
The most important thing in every business is to capture customer attention through extensive
distribution channels.
Risk Management:
While taking decisions their main focus is on risk management. Because As a universal bank
they are more focused on customer relationship and they take care of the risk involved in the
customers decisions.
EXECUTION PRIORITIES
Capital:
Working within their capital resources
Returns:
Generate returns in excess of their cost of equity
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Income Growth:
Continuous growth in targeted markets and geographies
Citizenship:
Representing their values to society globally and in every community they serve.
CORPORATE SOCIAL RESPONSIBILITY
Barclays is one of the responsible banks which work for the welfare of the society and also
train their employees to participate in it.
Barclays Make A Difference Day:
They organize a global event named as “Make a difference day”. In which they asked their
employees to share their knowledge and time and get involved in voluntarily.
SMB Fatimah Jinnah Girls College:
They did the community investment in this project in 2009, workers in Karachi were asked to
build personal ties with the students on various activities.
Understanding on Environmental Sustainability is a theme of volunteers in Karachi, and they
did a plantation at SMB Fatima Jinnah Secondary Girls School to provide a more hygienic
and healthy environment to the students.
The Citizens Foundation:
Barclays formed a relationship with TCF. Their team treated students of 2nd, 3rd and 4th
grades to a field-trip at the zoo and also had a lunch at McDonald's and at the end they took a
quiz on animals. Likewise, colleagues in Islamabad painted the walls and classrooms of the
School.
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Blood Donation Drives:
Since 2008 our workers at Barclays Pakistan have actively been indulged in Blood Donation
Drives to help charitable organizations like SIUT, Fatimid and Shaukat Khanam Memorial
Hospital. Blood donors assisted in collecting nearly 250 units of blood.
“We don’t realize how important this activity is. Thanks to the awareness created amongst us
and the ease of donating within the office premises, I am glad that at a personal level I am
now contributing in this manner which I hadn’t done ever before.”Quratullain Khalid –
Ramadan Time to Give Campaign:
Initially in the holy month of Ramadan after the launch of Barclays in 2008, workers have
been regularly contributing in the country. In 2009, the workers at Barclays Pakistan provide
food boxes to over 300 low income families. Each box provided contained Atta (flour), Rice,
etc.
Asad Ali, HR Head gave his personal views for the initiative taken by Barclays workers said:
“The Holy month of Ramadan nurtures patience, generosity and an opportunity to cleanse the
soul. Through the distribution of Ramadan packages, our Barclays colleagues extended the
bounties of generosity to the less fortunate in the spirit of this blessed month”Asad Ali - HR
Head
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COMMUNICATION SYSTEM AT BARCLAYS
Effective communication is very important in every organization. It helps in improving
organization life and organization output. In Barclays Pakistan a UK expatriate has been
appointed by the parent company so that the communication between the host and home
country branch could be improved. He conveys the queries which employees are facing in
Pakistan to parent company. After analyzing the queries parent company respond accordingly.
Board Meeting:
Board meetings at Barclays held once in a month only for the authorized people which
includes branch managers, expatriate, CEO of the company etc. In which they discuss queries
and the situations which they have gone through in a particular month. Then parent company
suggests some solutions for certain situations which totally depend on the expatriate decision
because he knows the condition of the country he is working in. after taking the final
decisions head circulate the decision to all the branch managers and then branch managers
conveys the decisions to employees which they have to follow.
Video Conferencing:
Barclays is multi-national company so the parent company is in UK and to communicate with
other subsidiaries they use the medium of video conferencing. Board meeting held through
video conferencing which is the best way now a days because through this way we can
communicate face to face, proper eye contact, non verbal communication etc.which will help
them to understand their reactions.
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PROBLEMS
Barclays as subsidiaries in Pakistan could be facing many problems which are as follows:
Terrorism Risk:
As we are aware of the worst situations Pakistan is facing now a days. People of Pakistan are
threatened by kidnapping, bomb blast, robbery, snatching etc. obviously it can also be
harmful for banking sector because in these kind of situations government usually announces
holidays because of which businesses suffer from losses. And robbery is also an uncertain
situation in which usually banks become victim.
Culture Differences:
Culture is a shared system of symbols, beliefs, attitudes, values, expectations, and norms for
behavior that we find out as we grow up. These basics of culture have been passed to us
through our parents, teachers and people around us.
As we have discussed above that Barclays have appointed UK expatriate as executive in
Barclays head office Pakistan. As he has came from different culture so he would be facing
difficulties in adjusting in new environment. Language barrier is the major problem for an
expatriate because language is the only source of communication.
Economic Risk:
Now a day’s economy of Pakistan is going down and facing recession problem because of
that Pakistani currency (rupees) is devaluing so it’s really hard for all multinational business
to attain their target profits as it always inconsistent and fluctuating. Barclays would also be
bearing risk because of economical issues in Pakistan.
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Political Risk:
Pakistan’s government is facing many challenges to its authority; it includes lawlessness,
confiscation, questionable pavements, expropriation, bribery etc.
Every foreign company has to pay certain amount for making a subsidiary in host country
same is for Barclays, as in Pakistan there is a chance of inconsistency in law so the
government could charge or may demand more fine for subsidiary and the foreigner are not
used to and unaware of these actions.
State Bank Policies:
Changing of state bank policies could create a big problem for Barclays. For example this
year state bank of Pakistan abruptly banned 500 rupees note and one of the bank in Pakistan
was unable to exchange notes on time from state bank of Pakistan. Due to this they suffer
great losses.
In past years state bank of Pakistan had announced official holiday on Sunday only, due to
this reason Barclays mentioned Sunday holiday in their policies of Pakistan subsidiary.
Recently state bank of Pakistan has also announced holiday twice in a week (Saturday and
Sunday) which brought difficulty for Barclays to meet their target which they have set before.
Religious Differences:
The state religion in Pakistan is Islam which is totally different from other religions. in uk
they practice their religion and their ceremonies and religious events are totally different from
Islamic values and ceremonies but since they have started business in Pakistan so they have to
take care about our religion and our culture. In Islamic countries government announce
official holidays on various religious occasions like Eid, Ramadan, Ashura etc. due to these
occasions those multi-national companies working with Islamic country suffer losses.
Communication Problems:
Every multi-national company which is operating subsidiary in other country should look
after their language for the convenience of customers which will help their company to grow.
Barclays is UK based so their language is British English which is very difficult to understand
by people of Pakistan because their national language is urdu so they cant understand their
language and they cant get information of new product which Barclays is launching and so
the problem is with UK also that they cant understand urdu language.
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SOLUTION
Terrorism Risk:
These problems can be tackled by high alert to the security system as recently Barclays is
using a specific system by which they can directly contact to phoenix for robbery situation.
Another problem which Barclays is facing holidays incase of uncertain situations and for this,
the solution could be overtime by employees to meet their target.
Culture Differences:
This problem has been solved by using English language as mandatory for all employees for
reducing language barrier between home and host country subsidiary. Another solution have
been made is that they organize events quarterly so that they can all get to know each other
and also mingle up with expatriate boss. By doing this he would not be degrading employees
and they would be having a strong bonding which will create a meteoritic society.
Economic Risk:
Pakistani currency (rupees) is devaluing so it’s really hard for all multinational business to
attain their target profits as it always inconsistent and fluctuating. This problem could be
solving by budgeting and forecasting according to the economic situation of Pakistan.
Political Risk:
Pakistan’s government is facing many challenges to its authority; it includes lawlessness,
confiscation, questionable pavements, expropriation, bribery etc. this problem could be solve
by building the public relations, create links and references.
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State Bank Policies:
This year state bank of Pakistan abruptly banned 500 rupees note and one of the bank in
Pakistan was unable to exchange notes on time from state bank of Pakistan. solution of this
problem could be building strong relation and contact with state bank of Pakistan so that they
can get immediate information about the changes occurred in state bank of Pakistan.
In past years state bank of Pakistan had announced official holiday on Sunday only, Recently
state bank of Pakistan has also announced holiday twice in a week (Saturday and
Sunday).Solution for this problem has been made by Barclays that now they are working on
alternate Saturdays so that they can accomplish their target.
Religious Differences:
Since they have started business in Pakistan so they have to take care about our religion and
our culture. In Islamic countries government announce official holidays on various religious
occasions like Eid, Ramadan, Ashura etc. due to these occasions those multi-national
companies working with Islamic country suffer losses. As we have discussed above that they
are working on Saturdays and doing overtime for getting rid of the losses.
Communication Problem:
Barclays is UK based so their language is British English which is very difficult to understand
by people of Pakistan because their national language is Urdu. They can’t get information of
new product which Barclays is launching. Solution for this problem has been made by
Barclays that they have opened call center in Karachi in which they have appointed those
people who knows both language (British English and Urdu) so that they can easily
communicate with Pakistani people and get to know the customers needs and requirements.
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CONCLUSION
Barclays is one of the successful leading banks worldwide. Now days it’s operating in over
fifty countries, providing service to protect money for customers and clients worldwide. Their
services include retail banking, credit cards, corporate and investment banking and wealth
management internationally in Europe, America, Africa, Asia and they are operating in
Pakistan since three years.
There are many rules and regulation followed by Barclays which are as given below:
English language is mandatory for all employees working in Barclays
Employees are allowed to take 15 days leave annually
Internal information should not be leaked out by any employee for security reason.
Their policy reflects the legal requirements valid in the UK as resulting from the
United Nations and Organization for Economic Co-operation and Development
conventions on bribery and corruption.
Equality and Diversity
Human Rights
Health Safety and Welfare
The Barclays Group Sanctions Policy is designed to ensure that the Group complies
with applicable sanctions laws in every jurisdiction in which it operates.
Culture is the most important part in every organization because it’s the key to lead the
success. A true success can be identified not only where they stand but through the journey
which they have gone through. Culture and diversity followed at Barclays include:
Team work and individual work both are appreciated in Barclays. they follow
winning together strategy which leads them to success.
They understand the needs and want of the customer and try to deliver accordingly
Trust is the most important part in banking sector and they have built customer
relationship.
The ability to innovate drive idea generation to get better operation quality.
People who are talented are the basis of their success, no matter what their style,
personality, age, race, gender, sexual orientation, or disability.
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Barclays is one of the responsible bank which work for the welfare of the society and also
train their employees to participate in it. Barclays have done many voluntary work and
charities at many places which are as given below:
SMB FATIMAH JINNAH GIRLS COLLEGE
THE CITIZENS FOUNDATION
BLOOD DONATION DRIVES
RAMADADN TIME TO GIVE CAMPAIGN
In Barclays Pakistan a UK expatriate has been appointed by the parent company so that the
communication between the host and home country branch could be improved. All medium
they are using for communication but particularly for host and home country communication
they use video conferencing as a medium in Board meeting.
Barclays as subsidiaries in Pakistan could be facing many problems which are as follows:
Terrorism risk
Culture differences
Economical risk
Political risk
State bank policies
Religious difference
Solutions for these problems are as follows:
Barclays is using a specific system by which they can directly contact to phoenix for
robbery situation
Barclays is facing holidays incase of uncertain situations and for this, the solution
could be overtime
Another solution have been made is that they organize events quarterly so that they
can all get to know each other and also mingle up with expatriate boss
Budgeting and forecasting according to the economic situation of Pakistan
Building strong relation and contact with state bank of Pakistan so that they can get
immediate information about the changes occurred in state bank of Pakistan.
They are working on alternate Saturdays so that they can accomplish their target.
They have opened call center in Karachi in which they have appointed those people
who knows both language (British English and Urdu).
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REFERENCES
http://www.barclays.pk/contact/careers/
http://www.barclays.pk/community_investments/
http://group.barclays.com/About-us/Executing-our-strategy
http://www.barclays.co.uk/PersonalBanking/P1242557947640
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