The incremental change which they started slowly but forcibly put a lot of pressure on the traditional way of their banking system. Traditionally, the bank functional relationship was strong and was fully based on mutual understanding and trust amongst their employees regardless of the hierarchical structure.
The hierarchical structure was rigid but very efficient where morale of the employee was very high and employee turnover was very low. These were the basic hurdle which made it difficult for the organization to bring the changes.
"Survival is always of the fittest and who survive the change, Rules."
The driving factors of the changes were very strong as compare to its stability like the rapid changes in the business environment, globalization era and the evolving latest technology.
EBL analyzed carefully its strength and its weaknesses inside its organization and studied/ evaluated the macro environmental elements for its threats and opportunities.
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The new structure which was the outcome of change was more effective and efficient. The change was not that easy and got a lot of resistance from employees whom they overcome by having regular meetings and training and development.
The purpose of this review is to analyze the changes which EBL Private Bank gone through within the last two decades. The catalyst of this change is believed to be globalization, technological advancement innovation, competition and other macro environmental factors which stirred this organization.
This organization not only survived but also expanded its operation nationally and internationally on a large scale. From study and survey we found out that it's hard for the competitors to imitate its services and embedded culture which makes this organization strong in its core capabilities. Â
I try to analyze the forces which provide me view of change problems that need to be rectified and also by identifying forces for and against the change.
The forces which pushed
Against Force / Resisting
Organization working hard ðically to deliver perfect result
Loyalty and commitment of employees
Choosing alternate requirements and potential flexibilities
Motivation and encouragement
Working on the feedback from staff survey - staff want changes in how they are treated
Pushing staff to work in a new ways
Participation in a change process
Pressure of work during phase of changes
Communication problem inside the organization
3.2 Scope Â Â Â Â Â Â Â
The scope of the review will be from the point of decision to make its stand against its rival private competitors which were not only fully equipped with modern technology but also with full monitory funds. Due to strong unfavorable circumstances this EBL not only worked on its core values but also build its long term strategy in which they fully succeeded.
They changed their view of seeing the business from profit oriented (i.e. by not caring for the customer but the money) to customer oriented which the private banks were doing. Not only they changed this culture but also introduced the latest innovative technology.
The objective of this review will be to:
1.Â Â Â Investigate and explore the flow of this organization's survival and expansion keeping in mind the globalization period.
2.Â Â Â Research and detail the positive and negative effect and changes in its culture and organizational structure.
3.Â Â Â Finding the advantages and disadvantages of this change process.
4. What were the outcome of these changes and how small changes led to the big changes?
5. The method and strategy decision they have opted to bring these changes?
6. What were the barriers to changes, was that the hierarchical management structure of the bank?
4. ORGANIZATIONAL OVERVIEW
During the process of liberalization in 1991, banking has gone tremendous amount of changes. The main motive of these changes was to take the organization into profitable efficient and competitive side. These reforms become the fundamentals of the bangladesh economy and transferred the operating environment of the banks and financial institution in the country.
During the tenure of pre-liberalization banking system were majorly handled by government fiscal and development polices. It open the opportunities for the bank to diversify into credits cards, insurance, investment banking, mortgage financing and depository services etc.
4.1 Company's Background.
Always on Time
Marked to Standard
Eastern Bank Limited was founded in 1992 and is headquartered in Dhaka, Bangladesh. the company makes investments, placements, and borrowing in money and capital markets; and deals with foreign exchange business, as well as provides Internet banking, corporate banking, and Hajj remittance services, such as handling foreign demand drafts and foreign telegraphic transfers in Saudi Arabian and local currency. As of December 31, 2008, it had 34 branches, 36 owned automated teller machines (ATMs), and 118 shared Q-cash ATMs.
Today, Eastern Bank of Bangladesh has spreads its arms around the world and has became the second largest bank in the world. EBL's international banking group delivers the full range of cross-border finance solutions. They have not stopped yet but have got further strategy to become the world's no. 1 bank. These competitions open the door for the customers to their great satisfaction and also technology path in Indian banks. Banks started themselves to look into the mirror of global competition which increased their efficiency growth.
4.2 ORGANIZATIONAL STRUCTURE (BUREAUCRATIC)
Present profile of this organization
A)Â Â Organizational structure
B) It has spread its branches all over nationally and internationally collaborating with subsidiaries and non-subsidiaries.
Eastern Bank of Bangladesh credit card
Eastern Bank Of Bangladesh Online
Eastern Bank Of Bangladesh USA
Eastern Bank Of Bangladesh Services
Eastern Bank Of Bangladesh Mutual Funds
Eastern Bank Of Bangladesh Branch
Eastern Bank Of Bangladesh NRI Account
Eastern Bank of Narayanganj (EBN)
Eastern Bank of Sylhet (EBS)
Eastern Bank of Chittagong (EBC)
Eastern Bank of Barisal (EBB)
Eastern Bank of Rajshahi (EBR)
Eastern Bank of Khulna (EBK)
Eastern Bank of Ishwardi (EBI)
Eastern Bank of Bangladesh International (Mauritius) Ltd.
Eastern Bank of Bangladesh (California).
Eastern Bank of Bangladesh (Canada).
INMB Bank Ltd, Lagos.
Non- banking subsidiaries:
EBL Capital Markets Ltd (EBLCAP)
EBL Funds Management Pvt. Ltd (EBL Funds)
EBL DFHI Ltd (EBL DFHI)
EBL Factors and Commercial Services Pvt. Ltd (EBL Factors)
EBL Cards & Payments Services Pvt. Ltd. (EBLCPSL)
EBL Life Insurance Company Ltd (EBL Life).
Eastern Bank of Bangladesh administrative structure is well equipped to oversee the large network of branches in Bangladesh and abroad. The State Bank of India has 14 local head offices and 34 zonal offices which are located at important cities spread throughout the country. Eastern Bank Of Bangladesh has 52 foreign offices in 34 countries across the globe. The corporate accounts group is a strategic business unit of the bank set up exclusively to fulfill the specialized banking needs of top corporate in the country.
The main activities of are into-
Eastern Bank Of Bangladesh offers the following services to its customers -
SBI Vishwa Yatra Foreign Travel Card.
Revised service charge.
Safe Deposit Lockers.
Foreign Inward Remittances.
My research is an academic activity which deals with the long term changes happened in the Eastern Bank of Bangladesh which is the largest public financial institution in Bangladesh.
My research comprise of studying the company's history and analyze its banking system which reveals many driving force and hindering force for its transitional change on large scale.
My analysis is further backed by quantitative analysis using the latest PESTAL and other relevant models which we are going to reveal further in our project as I proceed.
To make sure what I am presenting, the case of change is viewed from outside the organization and also from its outside macro environment. I am not actively involved in this change but are observing and gathering all the information and data from very significant resources and also from the people who were/ are employee or other words anyhow directly or indirectly involved in this organization during the whole tenure of happening of these changes.
I understand the concept of this topic and going to take all major approaches to make my project successful and knowledge worthy. The question and the guidelines are carefully chosen and sentenced so that we can get accurate information required for our project.
This Essay is
a Student's Work
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The following methods are chosen for gathering information:-
Electronic media( TV, radio, internet, online journal articles)
Mail and e-mail
Newspaper, articles, business magazines
Observation and experience
Unit lecturer MR. LLANDIS BARRAT-PUGH
We are generating a debate in a class to find out more on this subject of change in SBI. Argumentative discussion is most welcome. We want our proposal to be challenged.
Â 5.2 Limitations of this Proposal
My research is basically concentrated on the EBL banks and its alliances which is the largest private sector bank of Bangladesh. So we cannot analyze all about the other banking system on the basis this research.
Being such a great organization which has spread its arms nationally and internationally, it's hard for the research to take into account all the variables of its different branches at different locations.
6. SELF SYNOPSIS
Being a passive leader, i understand the drawback of not involving actively in the organization. But as a customer, i observed the trends and culture from its prevailing environment. We put lot of effort to find out, why and how they brought the changes in the system and what are the impacts of the changes on society and on the organization. Being a leader, we evaluated these changes and drawn a conclusion of its advantages and disadvantages.
Leader always back up the changes for its positive effect and keep him focused and involved in the core values of the changes. He is solely responsible for his own behavior and actions. Detailed approach has been taken to each and every point of this proposal and studied the concept in depth.
Based on our personnel research and observation we found that private sectors are not that much efficient in comparison with the public sector. Still they have to go a long way to improve their capabilities.
They also need to put into practice the training requirements for the existing and new employees to make the system more efficient and increase the knowledge to use the new technology changing with time.
They should also need to create a culture of sharing knowledge among the other colleagues so that they would be able to build trustworthy and strong team. Therefore, the private sector banks must emphasize on change management.
This whole proposal state that EBL has emerged as a bright leader who has rectified its weakness and worked on its strength and reduced its threatÂ and grab the opportunities.
Focus on key issues
What are the driving forces behind these changes?
How EBL gone has undergone the transformational change or otherwise would have gone out of business/ dead?
What is the reason of these driving forces which made EBL to take big step (is it because of globalization, technology, political, economical or the social)?
After carefully considering the diagnosis of the organization which has gone through the tremendous change, we concluded that it was necessary to do so and they have done it very carefully after analyzing the whole situation which involved its major competitors, political, economical, legal, environmental, social and technological and its own structure and culture.
We also felt proud to do this proposal of this great organization because it not only survived during the critical transformational change as we know where most of the organization at that point went out of business/site but his organization was lucky and well kept on its strategic change decision by which not only survived but also came out with flying colors. It is one of the largest network organizations in the present time giving edge of competition to its competitor and new entrants.
Its capabilities, capacity and diversity are the focus of this whole change which was not only about the top managers but also about the junior employees who showed the enthusiasm towards this structural and cultural change. The company, not only, empowered the top level but also the lower level employees to bring this effective change.
The size and complexity was a major concerned of this change in which the organization didn't show any sign of reluctance to invest and understand the lack of urgency.
We also put our efforts to see its culture web which include stories like celebrating its success, spreading the good news about people and what they are doing, thanking and rewarding people and the mistakes they have made and learn from them. The paradigm of this organization show us valuing diversity, learning culture, strong work ethics, loyalty commitment and outward looking / forward thinking/ innovative.