BRAC Bank restricted, a planned profitable Bank launched underneath the Banking Company Act, 1991 and included as a communal business limited by allocates on May 20, 1999 beneath the Companies Act 1994 in Bangladesh. The Bank has initiated its act on 4th of July 2001 with a vision to be the market manager throughout provided that all types of banking works appropriate to the forceful loads of both business and individual in the spirited bazaar. The BRAC Bank has embarked with an avowed policy to offer "best-in-the-class" services to its diverse range of customers spread crosswise the country based on newest information technology. To keep in tied with its sponsor, BRAC Bank's goals, and the Bank activities to supply gathering investment particularly to centres on under-served enterprises crosswise the rural and urban area (BRAC Bank, 2011).
Building profitable and socially responsible financial institution focused on Market and Business with Growth potential (BRAC Bank, 2011).Â
Get your grade
or your money back
using our Essay Writing Service!
Sustained growth in small and medium Enterprise sector,Â and create a full controlled environment with no compromise on service quality (BRAC Bank, 2011).
Strive for profit and sound growth (BRAC Bank, 2011).
Activities and Operations
Campus accounts, Ezee accounts, Famine accounts, Probashi accounts, Prapti accounts, Aroggo Rin, Apurbo Rin, Pathshala Rin, Salary Loan, Car Loan, Study Loan, Online shopping (BRAC Bank, 2011).Â
Share holders: Number of shares are 26,769,600.
Board of Directors: Number of directors are 6.
Management committee: Number of management committees are 14.
AB Bank, Bank Asia, BASIC Bank, Dhaka Bank, Dutch-Bangla Bank, Exim Bank, Grameen Bank, Islami bank, IFIC Bank, One Bank, Prime Bank, Standard Chartered Bank.
1.2 Recent changes
Launched an ecommerce platform together with Visa card to where general consumers can purchase their favourite items online.Â
New money transfer system.
Memorandum of Understanding (MoU) for easy home loan facilities.
Agreement with Trans-Fast Remittance LLC, USA for remittance services.
Study loan for higher study.
Question (a) Identify the key factors that are driving the need for strategic change in your chosen organization.
In BRAC Bank some internal and external factors are driving the need for strategic change, are describing below:
2.1 External Change Factors
In an open market economy, according to change of an organization, competition is one of the most vital factors. There are lots of bank in Bangladesh now providing money transfer service, study loan service, remittance services with low charges.
In Bangladesh, if there is any fluctuation in the economic position there must be an effect on banking services like money transfer, remittance services, and study loan. So organization must bring some changes within the organization.
Sometimes every organization has to bring change in the organization due to the government regulation. BRAC Bank money transfer service, remittance services, loan services has to follow the government economic policy and the central bank of Bangladesh.
Throughout the world, technological improvement accelerated the business activities. Money transfer, remittance, loan services are faster than ever before using modern technology from one country to another. Therefore, to survive in the open market, organization must bring latest technological changes.
2.3 Internal Change Factors
Money transfer organization is highly concern with security of the customer and their money so they have to be updated with the security devices in the organization. BRAC Bank updates money security especially for remittance and online shopping services.
Culture is the collection of traditions, values, policies, beliefs, and attitudes that constitute a pervasive context for everything we do and think in an organization (McLean, 1993). So BRAC Bank has to adopt change according to culture of their customers and they have to employ staff so that the staff can deal easily with the particular cultural people.
Organization sometimes needs to change their internal structure or in the management bodies and also change the infrastructure.
According to the range of the business, to perform the business activities, organization provides necessary training to the employee. BRAC Bank has launched employee training program for online shopping system.
Always on Time
Marked to Standard
Question (b) Assess the resources implications of the organization not responding to strategic change.
Question (a) You are required to compare and evaluate about the change models learned in the class that are relevant to the change process based your chosen company.
Change management model is defined as a disciplined change management process for leading and managing change. It will guide from the initial good idea through to eventual institutionalization of the new way of working. To manage changing requirements in a better way many change management process models have been proposed in the literature. There are several change model discussed in the class which are Kurt Lewin's Change Model, John P Kottler's eight Steps Model, ADKAR Model, Action Research Model, and General Process Model (Organizational Development). Among these change models Kurt Lewin's Change Model seems to be most relevant with the change process of BRAC Bank ltd. In 1947 Kurt Lewin wrote: "A change towards a higher level of group performance is frequently short-lived, after a "shot in the arm",Â group life soon returns to the previous level.Â This indicates that it does not suffice to define the objective of planned change in group performance as the reaching of a different level. Permanency of the new level, or permanency for a desired period, should be included in the objective" (Lewin, 1947).
3.1 Kurt Lewin's model
One of the cornerstone models for understanding organizational change was developed by Kurt Lewin back in the 1950s, and still holds true today. His model is known as Unfreeze - Change - Freezing (or Refreezing), refers to the three-stage process of change. Many other more modern change models are actually based on the Kurt Lewin model.
The Unfreezing stage is probably one of the more important stages to understand in the world of change we live in today. This stage is about getting ready to change. It involves getting to a point of understanding that change is necessary and getting ready to move away from our current comfort zone.
After the uncertainty created in the unfreeze stage, the change stage is where people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction.
Freezing (or Refreezing)
When the changes are taking shape and people have embraced the new ways of working, the organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart, consistent job descriptions, and so on. The refreeze stage also needs to help people and the organization internalize or institutionalize the changes. This means making sure that the changes are used all the time; and that they are incorporated into everyday business. With a new sense of stability, employees feel confident and comfortable with the new ways of working.
Figure 3.1 Shows Kurt Lewin's Model
3.2 Kurt Lewin's Change Model and the Change Process of BRAC Bank
The change process of the BRAC Bank is almost similar with the Lewin's Change Model. Followings are the step by step checking of the change of the organization:
The BRAC Bank has initiated its act on 4th of July 2001 with a vision to be the market manager throughout provided that all types of banking works appropriate to the forceful loads of both business and individual in the spirited bazaar. At the beginning it followed all the traditional systems to transfer money to one country to another. But later when it realized that there are lot of technological advancement in money transfer sector and the other money transfer organization and banks are transferring money using the modern technology, then the BRAC Bank realised for remittance services and online shopping. BRAC Bank has recently signed an agreement with Trans-Fast Remittance LLC, USA for remittance services. Any Bangladeshi having an internet access now can shop online if they have a Visa card. BRAC Bank today formally launched an ecommerce platform together with Visa to where general consumers can purchase their favourite items online.Â It has a strong and powerful board of director to take the decision and to guide the change.
This Essay is
a Student's Work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.Examples of our work
The BRAC Bank has strong vision in their business, but when they initiated to change some aspect of the organization, they develop and modify their vision according to the change, implemented in the organization. The BRAC Bank has communicated for change and the vision of the change with the board of director, management team, bankers, staffs so that the entire change project goes successfully, and all the stakeholder of the organization is benefited from the change.
The BRAC Bank taken project has both long term and short term centre of attention. The BRAC Bank has examined whether the change programmes have the combine achieves. BRAC Bank has attempted to synchronize the change programme with the existing culture in the organization (inside and outside).
Question (b) how would you like to involve appropriate stakeholders in the introduction of planning change?
3.3 Appropriate stakeholders in the introduction of planning change
Every change in the organization must have an effect on all the stakeholders in the organization. The following are the stakeholders of the BRAC Bank Ltd.
In BRAC Bank, shareholders are the most closet stakeholder. In BRAC Bank any change affects its shareholder. If BRAC Bank makes a single taka more profit, the shareholders would be benefited. Major change in an organization is brought for the interest of the shareholders.
Board of directors
The board of directors in BRAC Bank has taken all decision; therefore they are highly involved with the entire change programme. Regarding the decision, if there is any mistake in the BRAC Bank, the board of directors is responsible for that.
Chief Executive Officer
In BRAC Bank, chief executive officer is also highly involved with any change program. If company performance increases, the goodwill of CEO will increase. Therefore, CEO can provide suggestion to the board of director and can take feedback from the employee and management team regarding change programme.
In BRAC Bank management team is one of the most important stakeholders. The management team has to monitor and implement all the change programmes in the BRAC Bank. The management team has to keep eye on the current issues to identify what kinds of changes are required to achieve the objectives.
In BRAC BANK Employees are the main body of executing operation. If the profit of BRAC Bank increase due to any change programme than the salary of the employee may increase, but all changes does not go in favour of the employee. Employees are highly affected if the company take decision like job cut or reduce any benefits.
In BRAC Bank customers are the most sensitive stakeholder because most of the change is taken due to the customer satisfaction. The BRAC Bank changes are office decoration, increased the size of employees, and increased the modern logistic support to give the best service to the customer.
BRAC Bank has to change to follow the regulation of the government. If any government change their policy regarding money laundry then the company must follow them.
Question: Analyse and discuss the key issues of change process implementation including resistance to change. You should also clearly recommend and adopt the appropriate model for the organisation and or relevant department.
4.1 Key issues of change process implementation
Everyone says that change is complex and difficult to conceive because one must unavoidably contract with people, matters and an unclear future. The more so to implement because consequences can be difficult to predict, harder to track and therefore can create a dynamic all of their own (Carnall, 2007). Vecchio in a tone of finality submitted that all organisations (whether profit or non-profit, military or multinational corporations) have no choice but to change so as to keep up with the pressure from the environment (internal and external). It is a compelling case of "change or die" (Vecchio, 2006).
The key issues relating to change implementation can be explain by the four Cs of change that says that the management of strategic change must pay attention to:
It engages the recognition of the impacts of a strategy (internally and externally) to the organization with a view to identifying where crucial blockages may occur, and also it is important to select those issues which may help to promote the desired strategy. Using the force field analysis, the following steps are used to examining this:
Identification of planned change: The BRAC Bank has identified the technological sector to be changed
Identification of resisting forces: In BRAC Bank some old employee doesn't know how to use modern technology.
Identification of driving forces: In BRAC Bank Some of their employee and customers really appreciated the technological change.
Formulation of tactics to reduce or eliminate resisting forces: BRAC Bank trained the employees so that they can adjust with the new technology.
Formulation of tactics to encourage driving forces: BRAC Bank has also formulated the techniques to encourage the driving forces to implement their change process.
The BRAC Bank has communicated with all concern parties of the change project to manage resistance.
The BRAC Bank has introduced some induction programme for the new staffs. The BRAC Bank has updated it promotion and dismissal policies and some incentives schemes so motivate the staffs.
Compliance addresses the question of how strategic change can be achieved, perhaps in the face of opposition. Key issues for achieving compliance include: control of resources, alliance, rewards and punishments, charisma and managing of change skills. The BRAC Bank did not have to do that because there was not too much resistance in the organisation.
The BRAC Bank faces the only resistance from its employee while implementing the change projects.
Reason of Employee Resistance
The BRAC Bank faced lot of resistance from its employee because there were some old employees who don't know how to adjust with the new system the organization introduced.
Managing Resistance to Change
There are a number of model given by some scholar through which the organization can manage resistance to change. To manage resistance to change (Lewin, 1947) Freeze Cycle Approach is very effective. He suggested three steps to manage resistance these are Unfreezing, Changing and Refreezing.
4.2 Recommendation of appropriate implementation model for The BRAC Bank ltd:
Emotions such as uncertainty, frustration or fear are common reactions. It is understandable therefore that people often adopt a defensive and negative attitude, and demonstrate resistance to change. The successful implementation of new work methods and practices is dependent upon the willing and effective co-operation of staff, managerial colleagues and unions. People are the key factor in the successful management of change (Mullings, 2007).
Kotter's Eight Steps Model can be the best model for the implementation of change project in the Wall Street Forex lon ltd. The change process of the BRAC Bank is almost similar with the change model of Kotter's Eight Steps.
Establish a sense of urgency
If an organization in the modern competitive market doesn't change with the demand of customers then it can be die very soon. If BRAC Bank management team to establish the need for change to all the stakeholder of the organization, like online shopping and remittance services recently they launched, then they would be fight in future.
Create a guiding coalition
A company's org chart- is a key determinant of financial performance. In BRAC Bank family all members follow the change of command. Therefore this would be better change to build up good relationship among members to guide the change. If the battle is about innovation for example, then the CEOs duty is to create the best possible structure for channelling resources towards innovation (Blenko & AL, 2010).
Develop a clear shared vision
Without specific goal or vision no change project could be successful, therefore, it is essential for BRAC Bank to develop clear vision before implementing any change project.
Communicate the vision
If the vision or mission of the change project is not reflected among the employees and other stakeholders then there is a high possibility to unexpected result of the change and high resistance. BRAC Bank is always confident about vision.
Empower people to act on the vision:
The activities of BRAC Bank is technical based therefore the employee has to be given technical training to adjust with the technical job in the organization.
Ensure there are short term wins:
Along with the long term change project, the organization must have some short term planning so that the organization can achieve the long term success.
The BRAC Bank has to ensure the consolidate gain in the change programs. The organization must take care that it is not sacrificing any important interest of the organization for a trivial gain.
Embed the change in the culture:
Finally, the organization has to adjust the entire change programme with the existing situation. There should be harmony among the inside and outside cultural elements and the change projects.