Growth Bank

Ankur BanerjeeNitesh ShahR. HarishRushikesh Malaviya

Sumit RajSuraj SinghYash Soni

Presenter

Step 1• Problem identified by Mr. Gonsalves

Step 2• Inferences from Case

Step 3• Problem Identification Diagram

Step 4• Solutions to the identified problem

Agenda

Problem idenfied by Mr. Gonsalves

• How to check unfavorable trends in the performance of the bank ?Que.1

• How to check the growing unrest among officers, borne out of the career anxieties?

Que.2

Inferences from Case

Fixed deposit ( From Others) , Saving bank deposits

, Current Accounts (From Others) are continuously decreasing

percentagewise from 1978 to 1982.

% Growth of total deposits.

In P&L a/c, “ Interest rate & Discount”, “

Commission, Excng, Brokerage” are decreasing.

Legal charges have increased by 62 % in 1982.

Decline of growth because of Behavior of bank employee

towards the customers & operational inefficiencies.

Year 1978-79 1979-80 1980-81 1981-82

% growth 24 % 22 % 15 % 22 %

Inferences for Question-1

Employees are not feeling that their efforts lead to their personal growth (exhibit ‘B’- rank 1.8 ).

Factors ‘Role Erosion’ & ‘Role Isolation’ cause towards Role stress of employee.

Inferences for Question-2

Problem Identification Diagram

Less motivation

Unfriendly behavior of employee

Poor service to customer

% decrease in growth of Deposits

Poor financial position of Business

Less vacancies for Promotion

Solution of the problem diagram

Design of performance

Appraisal System

Motivate to employee

Friendly behavior to customer

Increase in Deposit & Business

Creation in Vacancies for

Promotion

Solution -1

According top Victor Vroom’s Expectancy theory :

Expectancy Instrumentalist Valance

So, design of performance appraisal will influence to believe that their efforts will lead remove confusion regarding promotion system.

Solution -2

Performance appraisal System

Graphical Scaling Scale system will be developed.

Standardization on Job time at all branches

i.e. Clearing the cheque , Making DD, Deposit in a/c at al..

Transparency of performance appraisal and

assessment after one year.

Training to the employee according performance

appraisal expectation.

Feedback from customers.

Operationalizing Appraisal System

Opportunity for employee who does not wish to be

transferred on promotion, will be given other

incentives.

i.e. LTC, Paid Leave, Recognized

Employee will be promoted after satisfying eligibility

years of promotion and appraisal.