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CHANGE MANAGEMENT @
ICICI PRESENTED BYGROUP-4
ABHAS AMAR-01
CHANDRA PRAKASH-09
GARGI PRAGYA-11PRIYANKA PATHAK-24
GARIMA-12
PANKAJ KUMAR-22
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CHANGE MANAGEMENT
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INTRODUCTION
Established in 1955
Major shareholders:- UTI, LIC, GIC
Objective:-
Assist in creation, expansion and modernization ofenterprises
encourage and promote the participation of
private capital, both internal and external take up the ownership of industrial investment
expand the investment markets.
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MAJOR MILESTONES
Started merchant banking and retailing in
1987
Co-promoted India's first credit rating agency
Promoted India's first venture capital companyTDICI Ltd. In 1988.
Set up OCTEI IN 1991 with UTI
Tied up with JP Morgan to form investmentbanking company, ICICI securities Ltd.
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MERGERS AND ACQUISITIONS
Took over ITC classic finance Ltd. On 26- nov-
1997
Acquired Anagram finance on 21st
may- 1998 Merged with SCICI
Merged with Bank of Madurai in Dec. 2000
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REACTION CYCLE
Change Introduction Expected ChangeEnhancement
Shock
Denial
Anger Effect on productivity
Bargaining
Depression
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CHANGE MANAGEMENT
Change management is a structured approach
to shifting/transitioning individuals, teams,
and organizations from a current state to a
desired future state
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FACTORS FOR CHANGE
Nature of the workforce
Technology
Economic Shocks
Competition
Social Trends
World Politics
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ICICI AND K.V KAMATH
Kamath rejoined Indias leading financial services co. in1996 as the CEO replacing Narayan Vaghul.
Aimed at making ICICI a market driven co.
Initiated a lot of Organizational changes immediately tomake ICICI a financial powerhouse.
Kamath identified ICICIs limited expertise as the biggest
problem and decided to make ICICI .
Kamath identified the main problem as the company'signorance regarding the nuances of lending practices innewly opened sectors like infrastructure
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CHANGES BY KAMATH
Creation of infrastructure group (IIG), Oil & Gas
group(O&G), planning and treasury department
(PTD), structured project groups (SPG).
Creation of Client groups like major client group
(MCG), growth client group (GCG), personal
finance group.
Change in employee reward system
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EFFECTS OF CHANGE
A majority of the work along with a lot of good
talent shifted to the corporate center
An ex-employee remarked, "The way to get
noticed inside ICICI after 1996 has been to
attach yourself to people who were heading
these departments
These groups were seen as the thrust areasand if you worked in the zones it was difficult to
be noticed
Employees leaving the organization
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CONTD
GCG employees felt the lack of
opportunity
ICICI was blamed for not putting in adequate systems inplace to develop the right people.
Feedback process was questioned
No clear demarcation between internal skill group and clientrepresentative
In many cases the appraisal scores were same but the
bonus amount was not
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Industrial Credit and
Investment Corporation of
India
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MEASURES TO CHECK UNREST
Imparting new skills to existing employees
Reviewing the compensation structure in place
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IMPARTING NEW SKILLS TO EXISTING
EMPLOYEES
Training programmes and seminars were
conducted
Overseas training programmes.
Introduced a two-year Graduates' ManagementTraining Programme (GMTP)
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CHANGING THE COMPENSATION
STRUCTURE
Rewards related to group performances and
not individual ones
Two types of remuneration were considered1. A contract basis to attract risk-takers.
2. A tenure-based compensation to attract
employees who wanted security.
360-degree appraisal system put in place
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MERGER WITH BANK OFMADURA
ICICI was almost 3 times the size of BOM
Large differences in staff strength, salaries,designations, profiles, grades and work culture
ICICI was more individual performance orientedwhile BoM concentrated on overall profitability
of the bank
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MANAGING THE CHANGE
Technological upgrading of BoM branches
Hewitt Associates was appointed to facilitatesmooth cultural integration
Employee behavioral pattern study conducted
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MANAGING HR DURING THE ICICI-BOM
MERGER
Areas Of HR Integration Focussed On :
Employee communication Cultural integration
Organization structuring
Performance management
Training
Employee relations
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KEY FOCUS AREAS DURING THE
MERGER
Employee communication
Cultural integration Organization structuring
Performance management
Training Employee relations
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'POST-MERGER' EMPLOYEE
BEHAVIORAL PATTERN
PERIOD EMPLOYEE BEHAVIOR
Day 1 Denial, fear, no improvement
After a month Sadness, slight improvement
After a Year Acceptance, significant
improvement
After 2 Years Relief, liking, enjoyment,
business development activities
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RESULTS
By June 2001, the process of integration
between ICICI and BoM was started
Promotion schemes for BoM employees were
initiated
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