Serandib Bank

CONTENT Page 1. induction. 1 2. Executive Summary. 2 3. Problem Statement. .3 4. Alternatives. 5 5. passant 8 6. Implementations.. 9 Introduction This is the unitary-fourth assignment which I am advancement as a baptistery canvass for module 4 examination of give Qualification in Human imagination heed 75th Batch at the Institute of Personal solicitude Sri Lanka (IPM).The lawsuit is about the SerendiB entrust which was playing a successful monopoly game in the slangers field where whole deuce otherwise local anesthetic desires were held receivable to the Government regulations towards the utensilation of alien shores in the terra firma. The SerendiB imprecate was leading the country with a lag of 9,800 at the branches direct in separately leading township island wide. Very recently on its fiftieth anniversary, a revolutionary chief administrator officer, Mrs. Maya Perera was appointed on her post who was meet extraditeed back to the country after help 20 bulky duration at deuce inappropriate Banks as a out action Executive.With the arrival of clean chief operating officer, numerous superior executives of the fix were stressed with her vernal mount which is emphasized on follo progressgs. Coope roll imaging and strategies/ subscriber linees designs for next five years Creating guest friendly touch on Introduction of a la mode(p) technology Motivating internal staff through extrinsic motivation Promoting ag theme hightail it and achieving goals through team dynamics. The vernacular was delighting its success for next two years till the prison term of arriving two abroad wedges and with that, suddenly it faced a abridge drop in all aspects.The trust illogical its guests by 50% and the employee turnover rate was 22%. Finally the commit has tight run intoting down its 22 branches and divest it two overseas deeds. Executive Summary SerendibB Bank was practicing the seniority ungenerous of operatio nsd promotions, non-financial recompenses for individualist efforts and besides staff enjoyed the traditional bordering activities. notwithstanding, new chief executive officer emphasized the impotency of introduction of modish technology while motivating the staff through extrinsic motivation and promoting team work and achieving goals through team dynamism.Also, chief operating officer wanted to encourage people to a greater extent than towards the monetary pays and as a result direction introduced nearly a cardinal of group fillips whilst statutory pays were paid in picture over and above the forkalized criteria. Although Bank stimulated a higher growth rate in financial terms during the front two years tenure of new chief executive officer, many senior executives were extremely unhappy with the CEOs new approach. With entrance carriage of two new unusual trusts, many senior staff members left from the SerendibB and join with this new banks for better pro spects and relieve with the pertly introduce observe schemes.Within first half-dozen months, SerendibB anomic 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 support ashess can help arrangements to attain their goals. However, Employers must(prenominal)iness first hear each objective travel byly in the first place developing tactual and intangible return corpses. Important goals much(prenominal) as employee retention and job satisfaction, action improvement and employee motivation can be achieved by identifying the desired out tote up of employee punish syllabuss. . Problem Statement 1. The newly introduced give back vigilance dodge does non accord to the sine qua nons of the employees in the geological formation. The impressiveness of remunerate incase is shock absorbered by internal and foreign factors and it is im portant for employers to continually monitor, evaluate and mark their supports and benefits packages to ensure that they continue to meet employees involve. Changes in the competitive landscape, in the economy, in employee requirements and in demographics can all impact how effectively brea matter packages meet employee call for.On difference opinion of both internal drivers and external environmental impacts can help ensure that companies pay off packages serve to drive retention in a positive delegacy. But, radical CEO of SerendibB Has modificationd the animated abide by finaglement system without doing a squargon-toed study. Therefore, change of be riposte management system is not suitable to entire organization and its requirement. 2. The newly introduced honour Management system does not beget the proper eternal sleep amid the Financial and Non Financial Rewards, individual and group yields.Financial punishs and group incentives argon one way businesses can show their appreciation to employees for tough work and dedication, plainly this should be merely one piece of the compensation system. Non-financial rewards and individual incentives can carry just as lots weight by empowering employees, as fountainhead as giving them a sense of accomplishment and of belonging. CEO of this bank always campaignd the monetary rewards and the team work concept among staff. Therefore, honour system should be balanced among financial and non-financial rewards as good as the Individual and the group incentives. . The Reward Management System is not arranged and sustainability. Employee reward systems can help employers achieve their organizational goals. However, employers must first identify each objective clearly earlierhand developing tangible and intangible reward systems. New CEO had interpreted a close to pay in biramous the EPF,ETF and gratuity over and above the legalized criteria. But he hasnt checked whether the organization can afford such a huge expensein the future. At the same time legal consultants also advised the covert management not to grant riotous financial rewards.Therefore, such a reward managements system doesnt reserve a sustainability, consistency and credibility 4. The Reward Management System does not catering the purpose. Employers must maintain employee rewards that the elapse companys employees find substantive. Well-managed employee reward management system have tangible affirmatory effects on the employers hobo 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 join 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 breathing staf fWithinfirst 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 joined the new foreign banks. By that moment, come about management of the SerendibB bank rise knew the reason behind.But, nobody abridge steps to change or enhance the existing rewarding system so that best fit for the existing employees and refrain them with the SerendibB bank. Alternatives 1. SerendibBBank should come up with incentive visualises as follows for their employees in fiat to reward staffs who contribute the approximately to the advantageousness 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 inquire to identify those ingatherings and services that it wants to concentrate upon found on product demand, pricing and insecurity analysis.For example, when a bank decid es that too much of its assets be related to the condominium market, a shift toward other income producing real acres is make. at a time the occurrent year product and profitability goals are established, the assorted 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 compact and micturates their ideas of a new incentive system. Also, management can conduct brief pile to get the ideas of staff. Provide clear choices in canvass in order to get clear answers.Ask questions like Would you prefer a cash reward or a personalized plaque for cosmos employee of the month? Employee surveys should also list a diversity of monetary and non-monetary awards and ask employees to list their preferences. c) A bank profitability system takes each product that the bank covers and classifies it according to the creditworthy department and customer account. The various customer accounts are charge to speci fic employee who manage the account and sum up the business masses of the bank with the customer. The employees also acquire new customer accounts that generate profit.Therefore, a proper profitability system must be capable of dealing the progress of existing and new customer accounts by employee in order to reward the efforts of the employee through the incentive blueprint of the bank d) Once the various income-producing goals are established for the bank, the acquisition incentive program is communicated to the departments obscure. For example, if incentive fees are being contributeed for acquiring new real farming business loans, the program details what the employee look ats to do in order to earn an incentive retribution.The typical program involves the payment of an upfront fee to the employee of two percent for the original acquisition of new business and a five percent 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 unneurotic e) The continual monitoring of the profit and bolshy goals of the bank according to customer and assigned employee must be transparent and forthcoming to the relevant employee, as well 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 better incentive plan by obtaining ideas of employees or implementing a survey and review exit interview information. In addition, analyze turnover rates before and after implementing the employee incentive program to rhythm the effectiveness of the new or improved rewards system. 2. Monetary incentives encourage employee compliance, rather than back up risk-taking, since most monetary rewards consider only employee performance.Employees may be moti vated 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 become competitors rather than co-workers, which ultimately disrupts the boilers suit work environment. Non-monetary incentives have been used to reward employees for their good work by providing opportunities for cookery, pliant work schedules, improved work environments and sabbaticals.Therefore it is substantial 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 silent nonrecreational the statutory payments in double to existing employees due to wrong decision taken by its CEO. Therefore, it is nec essary to today stop such extra payment (EPF,ETF Gratuity)through by the bank to its employees and on behalf of employees. . SerendibB Bank need effective reward systems in order to attract employees to the bank economise their existing employees and maintain a convenient workforce. The primary employee reward is usually pay. But, SerendibB has to offer a total reward system that includes good pay and other non-monetary incentives. plan a total reward system is important task to be done by the bank to overcome the current problem it has faced. Therefore, bank can implement following to attract external people. a) slip-dance 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, below or above the average pay rate. Critical positions in the organization are often paid at higher rates to funding priceless employees a nd avoid wasting resources on employee searches. b) hand work-life rewards. These rewards include paid or inexpert sick time, paid lunch and break times, childcare assistance, variable work schedules and other benefits that dont normally include pay, but are drawn 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 another(prenominal) employees respond to simplex recognition for a job well done. This can be as lightsome and spontaneous as a simple thank you or more organized as a periodical or guidely recognition lunch or dinner. Its important that people who are accept are truly outstanding workers. Depending on the profitability of the organization employees be recognised with anything from cash to event tickets to a certificate. ) go a race development program. Many employees testament stay at organizations that offer fewer benefits if they can see that at that place is possible job advancement purchasable in the future. Offering management training programs that truly given employee a leg up on future career advancement can be viewed as a valuable reward. This can be a very(prenominal) low-cost reward system that keeps employees for the long-term. Its important to only 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 yearly vacation in order to keep employees. Conclusion more or less people work mainly 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 piece 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 get down of getting below results to the SerendibB bank and overcomeexisting problems which bank is experienced now. cater Retention Staff 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 considerable time to reach peak performance. Staffs who feel that the bank recognizes their efforts are less likely to prove 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 procedure Rewarding employees often improves performance on the job. Nonmonetary rewards often produce surprisingl y carry on increases in staff productiveness. Raises and bonuses also increase staff productivity. Carrot Versus Stick need 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 negative public recognition, can quickly rot into a finger-pointing exercise among employees impatient 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 recruitment process and as well as to retain the existing staff . Implementation Implementing an employee reward program is a great way to push 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 give their most to the SerendibB Bank.Therefore, it is recommended to consider the below given areas when implementing and employee reward program to the Ser endibB Bank. Director HR should take an initiative to implement a reward policy for the Bank so that it would be clear to the bank staff. Also, bank need to initiate a grievance manipulation 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 pass judgment to do within the program and what bank want to achieve by creating it. increase customers, improving staff morale or rewarding hard staff are all acceptable goals, as long as bankis clear on them. watch on the type of prize that will be awarded. Prizes can be symbolical (an actual certificate or medal) or they can be material and contract 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 very 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 make love 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..