KNB Bank PPT

CASE STUDY 

SALES TARGETS AT KNB BANK  PRESENTED BY: Group 1 - Abhishek Kumar (R. No – 1) - Ajit Singh Yadav (R. No – 2) - Akhil Kr Chaudhary (R. No – 3) - Aman Arora (R. No – 4) - Amit Anand (R. No – 5) - Ankita Wahi (R. No – 6)

Case Summary • KNB Bank – a growing private sector bank, deals in regular banking products like loans, FDs, Credit cards & other related things • KNB Bank Plans to enter into insurance sector, with the opening of the insurance sector in India. • KNB Bank enter into a JV with UK based Secure Insurance Services to sell life insurance products to India • All the branch offices of KNB Bank were told to promote the sales of insurance products along with regular bank products. • Case is about KNB Bank’s Tirupur branch which performed badly ever since its inception 7 years ago • Mr. Raj Malhotra, a young and enthusiastic, joins the  Tirupur branch & is determined to bring about a change

Case Summary • Mr. Raj Malhotra convenes a meeting, first of its kind in the history of the branch. All employees of  the branch were there to welcome new manager.  The meeting was also to make certain crucial decision to enhance the branch performance. • The Assistant Manager, Abhiram Krishna, had made all the arrangements for the meeting. • After taking over, Mr Malhotra described bank’s foray into the insurance sector, pointed out the additional responsibility of everyone to make this diversification a success. • Mr. Malhotra emphasized the targets for the branch including its regular products and entry into insurance sector

Case Summary • Suggestions were invited from from all employees to improve the branch’s performance •  There was very little participation despite Malhotra making repeated requests to them to fearlessly voice there opinions •

In the absence of substantial inputs from his subordinates, Malhotra presented his plan of action. • Among various measures, Malhotra proposed the enforcement of sales targets even for employees dealing with routine banking operations like cash transactions, generation of demand drafts opening of  new accounts etc • Opinion about the targets were sought again from the employees

Case Summary •

Although this scheme was unacceptable to the employees, none of them voiced there objection.

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Meeting concluded after discussion on few more strategies Next day, one senior employee Anand Trivedi approached Assistant Manager Krishna, with representation of  employees. In their representation, the employees requested the management not to impose sales target on them as it’d be too stressful for them to concentrate both on processing routine transaction as well as sales of the banks product and services.

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They also claimed that of late the nos of transactions had increased tremendously.

Case Summary • Krishna was irritated after reading the representation and asked Trivedi why the employees had not opposed the decision during the meeting itself? •  Trivedi replied, during the meeting each employee had this objection but had thought that he may be the only one to oppose and hesitated to voice his opposition for fear of antagonizing the management • Employees discussed the issue after the meeting and realized that everyone is equally opposed to the decision • Krishna assured Trivedi that he would certainly make all efforts possible to make the management reconsider the action plan.

Observations Analysis •  Tirupur branch performed badly ever since its inception 7 years ago • Lack of Communication from top to bottom • Unmotivated staff & Excuses • Managerial Style • Informal Meeting with the group • Low HR involvement, Proper training ? • Approach of Employees • Averse to Risk (employees).

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Observations & Analysis • Apprehensive of taking new challenges • New work culture and challenges in the banking sector. • low confidence of employee. • employees not target oriented.

Observations & Analysis Bad Performance of  Tirupur Branch

Perhaps Over Ambitious / Unrealistic Targets

Perhaps Decisions Being Taken without taking Employees into confidence

Perhaps Not Working as a Team

Perhaps Employees weren’t Performance Oriented

Observations & Analysis Lack of  Proper Communication within the Bank

First Ever Meeting of Such Kind

 This was 1st meeting with New Branch Manager

Employees didn’t Had any idea about their New Manager & same was true for New Manager

In 1st meeting Itself  new targets, goals & new forays were discussed & fixed

Observations & Analysis No experience of involvement with the Management Not used to thinking like new manager, seeking opinion of employees

1st meeting with new boss, circumspect

Risk Aversive & Laidback attitude

Unmotivated staff 

Bad performance of the bank since its inception

Excuses like Stress to increase, transaction increased etc.

Not oriented towards target No talk of  any incentive

Apprehensive of  New Challenges, New Work Culture

Observations & Analysis Managerial Style

Open Ended

 Team Player

Or going Solo, but Pretending Involvement of Every One

No Stock  Taking Taking

No Ice

No Breathing

or Proper

Breaking with the

Space for the

Home Work

Employees

Employees

Observations & Analysis What Could Have Been Done

Stock Taking or to get to know his subordinates

Proper  Training of the Employees

Bring Sense of Security in Employees

Bring New Work Culture but only after proper Home Work

SALES TARGET AT KNB BANK  DISCUSSION •

BENEFITS OF EMPLOYEE PARTICIPATION IN DECISION-MAKING

SALES TARGET AT KNB BANK  DISCUSSION •

 THE MANAGER ATTEMPTED TO DEVELOP CONSENSUS BUT FAILED. WHICH PROCESS impeded CONSENSUS BUILDING?

SALES TARGET AT KNB BANK  DISCUSSION •

WHAT COULD THE MANAGER DO TO BUILD CONSENSUS LEADING TO COMMITMENT FOR ACTION?