Assessing the subsidiaries of DFCC Bank

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Synapsys Ltd is a fully owned subsidiary of the DFCC Bank and it was created by spinning out DFCC Group IT into a separate entity. Synapsys was established in 2006 as a Technology & Business Consulting company. It is positioned to provide services to a Global clientele.

They began the company as the shared services IT business unit which provide consulting, IT outsourcing and business process outsourcing services to DFCC Group and other outside organizations. Synapsys enjoys the backing of DFCC's 50 year heritage in the financial services industry combined with the vibrant culture of a technology company.

Synapsys business is to while them having a strong interest in providing solutions to the financial services industry as well as for other industries such as Retail and Travel & Leisure industries.

Synapsys's aim is to provide "cost effective" solutions while delivering with "excellence". Stability, security and quality are inherent in their culture and this is a guarantee that they offer to their customers.

1.1 Values of the Organization

Accountability

We shall assume responsibility for all our decisions and actions

Be Ethical

We shall maintain the highest standards of personal and professional conduct

Passion for Innovation and Excellence

We shall innovate and add value to our clients through continuous improvement in our business practices

Respect for the Individual

We shall respect the opinions, ideas and rights of individuals

Team Work

We shall scale greater heights by working as a cohesive team towards common goals with a shared vision

2. Current market contest of the company

2.1 Target Market

Synapsys Ltd is a Technology & Business Consulting company, they are mainly focused on providing consulting, IT outsourcing and business process outsourcing services to DFCC Group and other financial institutions with in Sri Lanka and outside of the country.

2.2 Products and Services

Synapsys Ltd mainly provides consulting, IT outsourcing and business process outsourcing services and it can be categorized as follow.

Consulting

Synapsys Ltd Provide consultancy services in following areas.

Technology consulting

Process consulting

QA consulting

BPO consulting

BI consulting

Business Solutions

Business Solutions can be categorizing as follow.

Mobility Solutions

Lifecycle Management

Application Engineering

Implementation

Support and Maintenance

Managed Services

Under Managed Services Synapsys Ltd provides following services

BPO

Managed datacenter

Disaster recovery and BCP

Managed Infrastructure

2.3 Competition which faced by the company

Synapsys Ltd operates in an oligopolistic market which has small number of suppliers. Firms in the market are aware of others actions and decisions of one firm can influence the decisions of other firms.

As per the interview Synapsys does not have a major competitor but they have different competitors for each service which they provide.

Example

For the Consultancy services they have competitors such as KPMG and for the Oracle they have competitors such as DMS.

2.4 Future plans for the expansion

According to the Head of Operations their main focus is to establish a strong client base in Sri Lanka and then start few overseas offices in South Asia.

And Fist overseas office will be in Maldives since they are currently providing consultancy and application support services to Maldivian clients.

3. Key Milestones and Achievements of the Organization

Established in year 200

In year 2006 as a fully owned subsidiary of the DFCC Bank, Synapsys Ltd launched its business.

Synapsys Ltd established business partnerships with internationally reputed IT infrastructure and Software development companies.

Entered in to partnership with Motorola in late 2006

This was their first partnership with international organization and with this partnership Synapsys Ltd started to build a range of commercial mobile applications supporting the Motorola Platform.

Entered in to partnership with Oracle and Microsoft in early 2007

With Microsoft, Synapsys Ltd Positioned primarily as a Value Added Services Provider and Custom Solutions Development Partner.

Entered in to partnership with SunGard in late 2007

Currently Synapsys Ltd have a primary focus on Ambit Integrated Risk Management Solutions, Ambit Treasury Solutions, Loan Origination Solutions and Core Banking Solutions from SunGard and a wide range of other financial products to cater to the financial institutions.

Entered in to partnership with Fisrev in year 2008

Became a partner with Blackberry in late 2008

Currently Synapsys Ltd provide a range of custom developed applications and value added services and solutions around the Blackberry platform

Awarded the ISO quality standards in year 2008

Synapsys is an ISO 2008 certified company providing consulting, business solutions and managed services to the Financial Services Industry. And Synapsys Ltd adopt ISO 2008 certification with the aim to ensure consistent quality and predictability

Synapsys won the Best Quality Software Awards (NBQSA) competition's Silver Award in October, 2009 and won the category of In‐House for their MarginX, automated margin trading application

Synapsys' MBanx Received Multiple Accolades at the NBQSA 2010 also

4. Structural changes of the Organization

At the beginning of the Synapsy Ltd there were four business units, but most of the employees were under the DFCC banks payroll. And also some units had to report to the DFCC bank management as well as to the Synapsys management in the same. The software development unit was entirely controlled by the Synapsys management but other units had to report to the DFCC management also.

From the following diagram it shows the Organizational structure of Synapsy Ltd at the beginning.

Figure 4.1 Organizational Structure

With the expansion of the organization they have added a new business unit to the structure; it was the sales and marketing division.

With the addition of the new business unit, Synapsys named a new Head of operations and Sales and Marketing unit, Software engineer and QA unit was put under his supervision.

After the changes organization structure had shown as below.

Figure 4.2 Organizational Structure

In year 2009 Synapsys started their own Accounts and HR departments separate from the DFCC group's Accounts and HR departments. And those two departments also put under supervision of the Head of Operations.

With the expansion of the business, to monitor and supervise the software engineers and QAs, Company appointed project managers. Project managers had to report to the Head of Operations.

Figure 4.3 Organizational Structure

Following diagram shows the latest organizational structure of the Synapsys Ltd. With the expansion of the business they have recruited new consultants to their consultant unit and they are under direct supervision of the head of operations.

And also there are some software development units which reports to consultants to support their work.

Figure 4.4 Organizational Structure

5. Human capital profile of the organization

Synapsys Ltd is still a growing organization and it's still in its initial stage. When examining its Human capital profile, we can identify its growth year by year. As at 1st of May 2011 Synapsys had 65 employees.

In the following chart it shows the growth of the human capital of the organization.

Figure 5.1 Numbers of Employees

At the beginning of the organization, in year 2006 there were only eight employees who employed by Synapsys Ltd. They were attached to Application Support Unit, System Administrators and Software Engineer Units. At that time there were more than eight employees in the IT department but others were under the DFCC bank's payroll.

At the end of year 2007 number of employees increased to 15. Reason was they recruited more staff to Application Support Unit and System Operator Unit. From this year onward all the IT recruitments are done through Synapsys Ltd.

With the beginning of the year 2008, Synapsys launched its in-house software developments. With that they recruited more staff to their software engineering unit and they launched their marketing unit in the same year.

In year 2009 all the employees who were attached to DFCC banks IT department were asked to join Synapsys Pvt Ltd. With them number of employees was increased from 32 employees to 45 employees. And until year 2009 Finance and Human Resource Management activities were carried out by the DFCC bank behalf of the Synapsys Ltd, and Synapsys established their own Finance and Human Resource Management units as different business unit in the same year.

With the expansion of the organization in year 2010, Synapsys recruited more software engineers, project managers and consultants and at the end of the year there were 64 employees under the synapsys payroll. By 1st May 2011 total number of employees was 65.

5.1 Analysis on Human Capital of Synapsys Ltd

This analysis can be divided in to five categories

Analysis according to the Gender

Analysis according to the Business unit

Analysis according to the Grade of the employee

Analysis according to the educational level of the employee

Analysis according to the age of the employee

5.1.1 Analysis according to the Gender

According to the gender analysis 56 out of 65 employees are male and there are only nine female employees. As per the HR manager of Synapsys that most of the software developers and system operators are male because of the long working hours and night shifts. In the system operator unit all the members are men and only three female members in the software development unit. And all other females are in the office administration category.

Figure 5.2 Analysis according to the Gender

From the following diagram one can see the percentages of the gender analysis. There are 86% males and only 14% females in the organization

Figure 5.3 Analysis according to the Gender

5.1.2 Analysis according to the Business unit

According to the business unit analysis majority of the employees are Software developers and QAs. They does not work as a single unit, they are assigned to different projects.

There are 12 system operators and they work according to a shift basis. In the application support unit there are eight employees and in the system administrators unit there are four employees, all of them providing services to DFCC bank and the DFCC Vardhana bank.

Accounts, HR and Marketing units are newly established units and there are only 11 employees in all three departments.

Figure 5.4 Analysis according to the Business unit

In the following diagram it shows the percentage wise comparison of the business units.

Figure 5.5 Analysis according to the Business unit

5.1.3 Analysis according to the Grade of the employee

According to the data 61 out of 65 employees are in executive or above positions. The reason is Synapsy recruit all the employees to system operator, application support and software development units as junior executives.

There are only four non-executive sta ff members at Synapsys who work as office assistants.

In the following diagram it shows the number of employees in each level.

Figure 5.6 Analysis according to the Grade of the employee

Percentage comparison as follows

Figure 5.7 Analysis according to the Grade of the employee

5.1.4 Analysis according to the educational level of the employees

According to the analysis majority of the employees at Synapsys holds a degree or above educational qualification. The reason is when they recruit employees to the software development unit; a degree from a recognized university is a must.

And most of the employees in System operator unit and the application support unit are a diploma holder in the field of IT or have a professional qualification in IT or Banking.

There are three undergraduates at Synapsys who works shift basis in application support unit. And only six employees are in the process of completing their diploma or professional examination which they are following.

Following diagram shows the employee comparison according to the educational level.

Figure 5.8 Analysis according to the educational level of the employees

Figure 5.9 Analysis according to the educational level of the employees

5.1.5 Analysis according to the age of the employee

At Synapsys Ltd minimum age of an employee is 18 years and their retirement age will be 55. With the approval of the CEO of the company one can work beyond his or her retirement age and currently Synapsys does not have employees whose age is over 55 years.

At Synapsys over 58% of employees are between ages 18-30. The main reason for that is Synapsys looks for young people who willing to work long work hours and with fewer commitments. Majority of the employees between ages 18 - 30 works as software developers and Application support officers.

There are 16 employees between ages 30 - 40. And most of them work at the system operator unit and the system administrator unit, few of them works as Junior Consultants and Project Managers.

Between ages 40 - 55 there are 11 employees and most of them are senior Consultants and Project Managers, few are in the top management level.

In following diagram it shows the age comparison of the employees

Figure 5.10 Analysis according to the age of the employee

Percentage wise age comparison of the employees at Synapsys Pvt Ltd

Figure Analysis according to the age of the employee

6. Current Human Resource challenges in Sri Lanka

According to the Financial Times news reporter Mr. Dinesh Weerakkody there are several key Human Resource Challenges for Sri Lanka to overcome.

Short supply of good talented candidates for current job vacancies

There are huge numbers of CV's receiving for job vacancies. But selecting a talented and well skilled candidate is a challenge for an organization. For some extend this is due to the Brain drain of talented and qualified people.

The perspective of the CEO of the company

Still in some organizations CEOs consider employees as a cost and it should be cut down or managed, but employees should be considered as assets of the organization and should have a plan to retain and develop them.

Lack of Government role to attract talent and retain talent with in the country

Government should have a plan to attract and retain talent with in the country, and it will be a key to development of a country.

Example: A best program for attracting good human capital was initiated in the '80s by the Singapore government. The initiative helped Singapore to attract some of our best brains and even today continues to go out of its way to attract and import foreign talent.

To attract talent and retain talent with in the country Sri Lanka also can do:

Easing restrictions on the entry of qualified people

Government should focus on wooing our professionals working abroad by making it very attractive for them to come back

Need to introduce attractive incentives that can entice them to return and also to retain our existing talent

Lack of industry experience among University graduates

In the Sri Lankan universities there are no proper programs to give industry experience to their students. For that government can initiate a program in consultation with the private sector to equip university graduates with the required skills set which private sector needs.

7. Current HR issues and challenges of the organization

According to the interview had with Ms. Nilupa Wanniarachchi there are several key human resource management issues at Synapsys Ltd, and they can be listed as follow.

Retaining the existing staff members and managing high staff turnover

The biggest problem currently they are facing is retaining their existing staff members. Presently their staff turnover ratio is also in the high end.

They have identified recruiting of their trained employees by competitive firms as the biggest reason for this high staff turnover ratio.

Prepare and to forecast the future labour requirements

There is an issue in forecasting the labor requirement at Synapsys. As soon as they receive projects they have to increase the labour force and keeping additional staff is an extra cost for the company.

Providing and showing the employees a clear carrier path

Providing a clear currier path is also a biggest issue which they are facing and it is a one of the reasons to their high staff turnover ratio.

Example: a person who joins as a junior application support officer can go up to Application support executive within four to five years. But after that to become a junior application support consultant or an application support consultant he or she has to wait for a long period.

And a person who joins as system operator, highest position he can become is a team leader.

Adopting new recruits from DFCC Group IT to Synapsys environment

Recruits from DFCC IT department enjoyed all the facilities which receive by the DFCC bank employees and after joining Synapsys they are not entitled to same facilities. Because of that most of those employees are frustrated and unsatisfied.

Recruiting right people to the organization

Lots of CVs are received for an advertised vacancy. But selecting the most appropriate employee is a challenge for the organization.

Lack of a proper grievance handling mechanism

Currently all the employee grievances are handled by Operations manager, and they are planning to have a proper mechanism to handle this issue.

Language skills of the employees

As an organization which trying to cater the Sri Lankan as well as overseas markets the language skill of the employees is one of the key issues which they are currently facing.

Recruiting business consultants

Recruiting business consultants is another issue. As business consultant they should need banking and financial industry experience. And such people do not like to give up their carrier in financial industry and joining a consultancy firm.

8. Outline plan to address the issues and challenges at Synapsys Ltd

Retaining the existing staff members and managing high staff turnover ratio

In current labor market in Sri Lanka there is a shortage of talented and skilled workers. If you found one retaining him is one of the biggest challenges which face by the HR managers and Synapsys Ltd also facing this.

As per the financial times article

"At present motivating and retaining people is very different to what it was some years ago, because nowadays, overseas assignments, stock options, casual dress and free gyms are just as important to attracting and retaining talented employees as salaries, job security and careers once were."

In the Hand book of Human resource management by Michael Armstrong, he list out reasons for high staff turnover and they are as follow.

More pay;

better prospects (career move);

More security;

More opportunity to develop skills;

Better working conditions;

Poor relationships with manager/team leader;

Poor relationship with colleagues;

bullying or harassment;

Personal - pregnancy, illness, moving away from area

To address this staff retention and high staff turnover issue organization can adopt following methods.

By having exit interviews can aim to elicit opinions on any specific reasons to leave the organization

By knowing the exact reason to leaving the organization they can provide a solution to the staff member or they can prevent similar situation resulting on staff turnover.

By reviewing employment and reward policies and practices periodically

Periodical surveys on industry standards of employment and reward policies should be done and according to them organizational policies should be reviewed.

The rewards should include not only the salary of the employee but also the other facilities and benefits such as medical facilities, overseas assignments, stock options and performance base incentives.

Identification of high performing employees and rewarding them based on their performance

By conducting periodic performance apparels organization can identify and reward high performing employees.

By becoming an employer of choice organization can retain existing staff and minimize the staff turnover ratio.

In the Hand book of Human resource management by Michael Armstrong, provides a list how to become an employee of choice and they are as follow.

Interesting and rewarding work;

Opportunities for learning, development and career progression;

A reasonable degree of security;

enhanced future employability because of the reputation of the organization as one that employs and develops high quality people, as well as the learning opportunities it provides;

Better facilities and scope for knowledge workers, eg research and development scientists or engineers and IT specialists;

Employment conditions that satisfy work-life balance needs;

A reward system that recognizes and values contribution and provides competitive pay and benefits.

Prepare and to forecast the future labor requirements

Matching the demand for labor with the supply of labour is one of the important activities which Human Resource department has to do. Excess labour will result high overhead expenditure and lack of labour will result incompletion of work on the dead line.

Therefore forecasting future labor requirements is very important In the Hand book of Human resource management by Michael Armstrong provide check list to provide solutions to the sourcing strategy.

In the light of the business plan, how many people are we likely to need in each of our key operational or functional areas in the short and longer term?

What skills are we likely to need in the future?

Will we be able to meet the needs from our existing resources?

If not, where will we be able to find them?

What do we need to do to develop or extend our skills base?

What should we do about identifying people with potential and developing their abilities?

Do we have a problem in attracting or retaining key staff? If so, what do we need to do about it?

Is there scope to make better use of people by increasing employment flexibility?

Is there any danger of downsizing? If so, how are we going to deal with it?

As a solution to this problem organization can use following solutions

Demand Forecasting

Demand forecasting is the process of estimating the future numbers of people required and the likely skills and competences they will need. The ideal basis of the forecast is an annual budget and longer term business plan of the organization. By doing this organization can have a idea on their annual staff requirements.

Managerial or expert judgments

This is the most typical method of forecasting .It simply requires managers or specialists to sit down, think about future workloads, and decide how many people are needed.

Supply forecasting

Supply forecasting measures the number of people likely to be available from within and outside the organization at a specific time period.

Use of part-time workers and Subcontracting

If the organization cannot fulfill their labour requirement on time they can use part-time workers and Subcontracting as a solution.

Providing and showing employees a clear carrier path

synapsys currently having a problem providing a clear carrier path to its employees. This is also resulting staff turnover.

As a solution for this Synapsys can adopt staff rotation among departments and identify talents of the employees and provide them an opportunity to go up in the ladder of the organization.

Example: Job rotation can be done with in Application Support unit, System Operator Unit and System Administrator units.

From this employees can have an overall knowledge about the functions and such employees can be promoted as project managers or consultants.

Adopting recruits from DFCC group IT to Synapsys environment

Most of the employees transferred from DFCC Group IT are unsatisfied with their current remuneration package.

To provide a solution to their problem management can negotiate with them and can enter in to an agreement than both parties will end up in a win-win situation.

Recruiting right people to the organization

When a vacancy is advertise so many CV's are received. From those CV's organization has to select the most suitable person for the vacancy and he or she should match the job profile.

Currently Synapsys conduct a selection test as the first step of their selection process and the candidates who pass the selection test have to go through two more interviews and a medical test before getting the job. Though candidates go through this selection process some cannot handle the work pressure in the real working environment. And this is a big challenge for the HR manager.

For this issue Synapsys can use following methods

Targeted recruitment and selection

The first step is to identify what sort of people the organization needs with regard to their qualifications and experience and the extent to which they are likely to fit the culture of the organization - its values and norms.

For this selection process Hand book of Human Resource Management by Michael Armstrong provide two models

The seven-point plan:

1. Physical make-up of the employee - health, physique, appearance, bearing and speech;

2. Attainments - education, qualifications, experience;

3. General intelligence - fundamental intellectual capacity;

4. Special aptitudes - mechanical, manual dexterity, facility in the use of words or

5. Interests - intellectual, practical, constructional, physically active, social, artistic;

6. Disposition - acceptability, influence over others, steadiness, dependability, self-reliance;

7. Circumstances - domestic circumstances, occupations of family.

And

The fivefold grading system

The fivefold grading system covers:

1. Impact on others - physical make-up, appearance, speech and manner;

2. acquired qualifications - education, vocational training, work experience;

3. Innate abilities - natural quickness of comprehension and aptitude for learning;

4. Motivation - the kinds of goals set by the individual, his or her consistency and determination in following them up, and success in achieving them;

5. Adjustment - emotional stability, ability to stand up to stress and ability to get on with people.

Conclusion

Human Resource Management is one of the most important factors for an organization and it is essential for the success if the company. Human Capital should always consider as an asset of the company, not as an extra cost that they should cut down. It should be developed as a competitive advantage over other firms.

With the dynamic environment the importance of the Human Resource Management also increased. In an organization "every line manager should be a Human Resource Manager". Managing human resources effectively and efficiently plays a critical role in ensuring that a satisfied, motivated work force delivers quality services.

As an organization in its initial stage, Synapsys Ltd identified Retaining existing staff members and managing high staff turnover, Prepare and forecast future labour requirements, Providing and showing employees a clear career path, Adapting new recruits from DFCC group IT to synapsys environment and Recruiting right people to the organization as their major issues in Human Resource Management.

From the outline plan provided in this report Synapsys Ltd can overcome above mentioned issues.

References

Armstrong, M. (2006 10th Edition) "A Handbook of Human Resource Management", Kogan Page Limited.

Synapsys Ltd, About Us. (Online). Available From: http://www.synapsys.sg/about_us/index.html (Accessed 08 May 2011)

Synapsys Ltd, Managed Services. (Online). Available From : http://www.synapsys.sg/managed_services/index.html (Accessed 08 May 2011)

Synapsys Ltd, Business Solutions. (Online). Available From: http://www.synapsys.sg/business_solutions/index.html (Accessed 08 May 2011)

Synapsys Ltd, Consulting. (Online). Available From: http://www.synapsys.sg/consulting/index.html (Accessed 08 May 2011)

Synapsys Ltd, News. (Online). Available From: http://www.synapsys.sg/media/news_01.html (Accessed 08 May 2011)

Wanniarachchi, N (Operations Manager, Synapsys Ltd). Interviewed by: Serasinghe, C (Author). (06 May 2011).

Weerakkody, D (Reporter). (22 May 2007) "Human resources challenges for Sri Lanka. Financial Times". Available from

http://sundaytimes.lk/070422/FinancialTimes/ft334.html (Accessed 08 May 2011)

Daily Financial Times, (22 April 2011) "SYNAPSYS debut's flagship products in Malaysia". Available from: http://www.ft.lk/2011/04/22/synapsys-debut%E2%80%99s-flagship-products-in-malaysia/

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