What is an organization ?

An organization is nothing but a common platform where individuals from different backgrounds come
together and work as a collective unit to achieve certain objectives and targets. The word organization
derived from the Greek work organon is a set up where people join hands to earn a living for
themselves as well as earn profits for the company. An organization consists of individuals with
different specializations, educational qualifications and work experiences all working towards a
common goal. Here the people are termed as employees.
The employees are the major assets of an organization and contribute effectively in its successful
functioning. It is essential for the employees to be loyal towards their organization and strive hard in
furthering its brand image. An organization cant survive if the employees are not at all serious about it
and treat their work as a burden. The employees must enjoy whatever they do for them to deliver their
level best.

What is culture ?
The attitude, traits and behavioral patterns which govern the way an individual interacts with others is
termed as culture. Culture is something which one inherits from his ancestors and it helps in
distinguishing one individual from the other.

What is organization culture ?

Every human being has certain personality traits which help them stand apart from the crowd. No two
individuals behave in a similar way. In the same way organizations have certain values, policies, rules
and guidelines which help them create an image of their own.
Organization culture refers to the beliefs and principles of a particular organization. The culture
followed by the organization has a deep impact on the employees and their relationship amongst
themselves.
Every organization has a unique culture making it different from the other and giving it a sense of
direction. It is essential for the employees to understand the culture of their workplace to adjust well.

Organization A
In organization A, the employees are not at all disciplined and are least bothered about the rules and
regulations. They reach their office at their own sweet time and spend their maximum time gossiping
and loitering around.

Organization B
This organization follows employee friendly policies and it is mandatory for all to adhere to them. It is
important for the employees to reach their workplace on time and no one is allowed to unnecessarily
roam around or spread rumours.
Which organization do you feel would perform better ? Obviously organization B

The employees follow a certain culture in organization B making it more successful than organization
A.
No two organizations can have the same culture. The values or policies of a non-profit organization
would be different from that of a profit making entity or employees working in a restaurant would follow
a different culture as compared to those associated with education industry or a manufacturing
industry.
Broadly there are two types of organization culture:

Strong Organization Culture: Strong organizational culture refers to a situation where the
employees adjust well, respect the organizations policies and adhere to the guidelines. In
such a culture people enjoy working and take every assignment as a new learning and try to
gain as much as they can. They accept their roles and responsibilities willingly.

Weak Organization Culture: In such a culture individuals accept their responsibilities out of
fear of superiors and harsh policies. The employees in such a situation do things out of
compulsion. They just treat their organization as a mere source of earning money and never
get attached to it.

Importance of Organization Culture

A common platform where individuals work in unison to earn profits as well as a livelihood for
themselves is called an organization. A place where individuals realize the dream of making it big is
called an organization. Every organization has its unique style of working which often contributes to its
culture. The beliefs, ideologies, principles and values of an organization form its culture. The culture of
the workplace controls the way employees behave amongst themselves as well as with people
outside the organization.

The culture decides the way employees interact at their workplace. A healthy culture
encourages the employees to stay motivated and loyal towards the management.

The culture of the workplace also goes a long way in promoting healthy competition at
the workplace. Employees try their level best to perform better than their fellow workers and
earn recognition and appreciation of the superiors. It is the culture of the workplace which
actually motivates the employees to perform.

Every organization must have set guidelines for the employees to work accordingly. The
culture of an organization represents certain predefined policies which guide the
employees and give them a sense of direction at the workplace. Every individual is clear
about his roles and responsibilities in the organization and know how to accomplish the tasks
ahead of the deadlines.

No two organizations can have the same work culture. It is the culture of an organization
which makes it distinct from others. The work culture goes a long way in creating the
brand image of the organization. The work culture gives an identity to the organization. In
other words, an organization is known by its culture.

The organization culture brings all the employees on a common platform. The
employees must be treated equally and no one should feel neglected or left out at the
workplace. It is essential for the employees to adjust well in the organization culture for them
to deliver their level best.

The work culture unites the employees who are otherwise from different back grounds,
families and have varied attitudes and mentalities. The culture gives the employees a sense
of unity at the workplace.
Certain organizations follow a culture where all the employees irrespective of their
designations have to step into the office on time. Such a culture encourages the employees to
be punctual which eventually benefits them in the long run. It is the culture of the organization
which makes the individuals a successful professional.

Every employee is clear with his roles and responsibilities and strives hard to accomplish the
tasks within the desired time frame as per the set guidelines. Implementation of policies is
never a problem in organizations where people follow a set culture. The new employees also
try their level best to understand the work culture and make the organization a better place to
work.

The work culture promotes healthy relationship amongst the employees. No one treats
work as a burden and moulds himself according to the culture.

It is the culture of the organization which extracts the best out of each team member. In
a culture where management is very particular about the reporting system, the employees
however busy they are would send their reports by end of the day. No one has to force
anyone to work. The culture develops a habit in the individuals which makes them successful
at the workplace.

Factors Affecting Organization

Culture
Culture represents the beliefs, ideologies, policies, practices of an organization. It gives the
employees a sense of direction and also controls the way they behave with each other. The work
culture brings all the employees on a common platform and unites them at the workplace.
There are several factors which affect the organization culture:

The first and the foremost factor affecting culture is the individual working with the
organization. The employees in their own way contribute to the culture of the workplace. The
attitudes, mentalities, interests, perception and even the thought process of the employees
affect the organization culture.
Example - Organizations which hire individuals from army or defence background tend to
follow a strict culture where all the employees abide by the set guidelines and policies. The
employees are hardly late to work. It is the mindset of the employees which forms the culture
of the place. Organizations with majority of youngsters encourage healthy competition at the
workplace and employees are always on the toes to perform better than the fellow workers.

The sex of the employee also affects the organization culture. Organizations where male
employees dominate the female counterparts follow a culture where late sitting is a normal
feature. The male employees are more aggressive than the females who instead would be
caring and softhearted.

The nature of the business also affects the culture of the organization. Stock broking
industries, financial services, banking industry are all dependent on external factors like
demand and supply, market cap, earning per share and so on. When the market crashes,
these industries have no other option than to terminate the employees and eventually affect
the culture of the place. Market fluctuations lead to unrest, tensions and severely demotivate
the individuals. The management also feels helpless when circumstances can be controlled
by none. Individuals are unsure about their career as well as growth in such organizations.

The culture of the organization is also affected by its goals and objectives. The
strategies and procedures designed to achieve the targets of the organization also contribute
to its culture.
Individuals working with government organizations adhere to the set guidelines but do not
follow a procedure of feedback thus forming its culture. Fast paced industries like advertising,
event management companies expect the employees to be attentive, aggressive and hyper
active.

The clients and the external parties to some extent also affect the work culture of the place.
Organizations catering to UK and US Clients have no other option but to work in shifts to
match their timings, thus forming the culture.

The management and its style of handling the employees also affect the culture of the
workplace. There are certain organizations where the management allows the employees to
take their own decisions and let them participate in strategy making. In such a culture,
employees get attached to their management and look forward to a long term association with
the organization. The management must respect the employees to avoid a culture where the
employees just work for money and nothing else. They treat the organization as a mere
source of earning money and look for a change in a short span of time.

Role of Employees in Organization

Culture
A place where individuals from different backgrounds, religions, communities come together on a
common platform to work towards a predefined goal is called an organization. Every organization has
set of principles and policies mandatory for all the employees to follow.
The beliefs, ideologies and practices of an organization form its culture which gives a sense of
direction to the employees. The work culture goes a long way in creating the brand image of the
organization and making it distinct from its competitors. The employees are the true assets of an
organization. They are the ones who contribute effectively towards the successful functioning of an
organization. They strive hard to deliver their level best and achieve the assigned targets within the
stipulated time frame.

The employees play an important role in deciding the culture of the workplace. Their behaviour,
attitude and interest at the workplace form the culture.
Let us understand how employees affect the work culture.
Please go through the below cases:

Organization A
The employees are least bothered about the policies of the organization and attend work just to
sustain their job. For them the workplace is nothing but a mere source of earning money. In such a
scenario, people seldom get attached to their organization and thus move on in a very short span of
time.

Organization B
In organization B, employees are particular about the rules and regulations of the organization and
adhere to the set guidelines. The individuals focus on their work and look forward to achieving it well
ahead of the deadlines. People stay away from unnecessary gossips and prefer sitting at their
workstations rather than loitering around.

Organization C
Organization C is a male oriented organization where male employees dominate their female
counterparts. Frequent late sitting is a regular feature of the organization culture. Employees prefer
staying back late to finish off their pending work. No organization expects its employees to stay back;
it is the employee who according to his own convenience adjusts the timings and makes it the culture
of the workplace.
In all the above situations it is the style of working and the behaviour of the employees which
form the culture of the workplace. The thought processes and assumptions of the members of
the organization contribute to its culture. A motivated and a satisfied employee would promote a
healthy culture at the workplace as compared to a demotivated employee.
There are certain organizations where the employees willingly accept challenges and learn something
new each day. The roles and responsibilities are delegated as per the interest and specialization of
the employees and thus each one tries hard to perform better than the fellow workers. Such
organizations follow a strong culture as employees are serious about their work and abide by the
policies. However there are certain organizations where things need to be imposed on the employees.
They somehow have to be forced by the management to perform their duties. Team leaders have to
be appointed to monitor their performance and make them work. In such cases organization follow a
weak culture.
Some organizations have aggressive employees who promote healthy competition at the workplace.
Such organizations follow a culture where every individual tries hard to win the appreciation of the
management. Recognition hungry employees encourage a positive culture at the workplace as
compared to organizations where people have nothing innovative to do.
Constant disputes, disagreements, leg pulling lead to a negative ambience at the workplace.
Employees find it difficult to concentrate in such a culture and look for a change.

Threats to Organization Culture

What do you understand by Organization culture?
Organization culture reflects the working conditions, behaviour of employees, their thought processes,
beliefs and so on. Organization culture in a laymans language is often called as work culture and
plays an essential role in extracting the best out of employees. Work culture needs to be healthy for
employees not only to enjoy their work but also deliver their level best and develop a feeling of loyalty
and attachment towards their respective organizations.

Let us go through the threats to organization culture:

Negative attitude and ego are in fact two biggest threats to organization culture. Individuals who
find it difficult to look at the brighter sides of life often crib and complain and spoil the entire work
culture. They themselves hardly work and on top of it also influence others. Problems are in fact
everywhere. Can you name one organization where there is absolutely no tension or stress? Believe
me, you would find peculiar characters in every organization. You just need to know how to deal with
them. How many organizations would you change? Employees who think that fighting is the only
solution to solve issues are sadly mistaken and in fact pose a major threat to organization culture.
Remember, strikes, unions, mass bunking not only spoil the organization culture but also bring a bad
name to the organization. Develop a positive attitude and learn to ignore things if you really want your
organization to do well and outshine its competitors.
There is no place of ego at workplace. Employees who carry their ego to work find it difficult to adjust
with their fellow workers eventually affecting the work culture. In todays business scenario, people
expect you to drop Sir, Maam or Boss attached to a name in both written as well as verbal
communication. Corporate culture gives you the liberty to address individuals by their first names only
irrespective of position and age. Now, there are some individuals who would really not appreciate their
juniors calling them by their names. You need to understand that there is nothing which is more
important than your work and output. No individual would like to work in an environment where juniors
are not treated with respect and care. Would you ever like to leave an organization where all
employees are treated as one? Ask yourself.
Favouritism is another big threat to work culture. Problems arise the moment you start giving
special treatments to few employees. Do not favour someone just because he/she is your friend or
you like the other person. Such behaviour is absolutely unacceptable and unethical .Favouritism not
only spoils the work culture but also demotivates those who genuinely want to work and carve a niche
for themselves. Employees who work hard need to be motivated and appreciated irrespective of their
position in the hierarchy.
Lack of communication among employees is another major problem faced by organizations.
Employees need to communicate with each other to discuss work, various issues and also reach to
innovative solutions. Employees need to work as a single unit for better results. Bosses need to
communicate effectively with their team members. Do not always expect your secretary to pass on
information to your subordinates on your behalf. Let employees feel special. Treat them as
indispensable resources of the organization.
Individuals taking their organizations for granted also spoil the work culture. You need to genuinely
feel for your organization. A feeling of loyalty is essential. Dont work for anyone else but for yourself

and obviously your organization. Things would never improve unless and until employees take pride
in representing their respective organizations.

http://www.managementstudyguide.com/organizationculture.htm

Defining Organizational Culture

Organizational culture works a lot like this. Every company has its own unique personality, just
like people do. The unique personality of an organization is referred to as its culture. In groups of
people who work together, organizational culture is an invisible but powerful force that influences
the behavior of the members of that group. So, how do we define organizational culture?
Organizational culture is a system of shared assumptions, values, and beliefs, which governs
how people behave in organizations. These shared values have a strong influence on the people
in the organization and dictate how they dress, act, and perform their jobs. Every organization
develops and maintains a unique culture, which provides guidelines and boundaries for the
behavior of the members of the organization. Let's explore what elements make up an
organization's culture.
Organizational culture is composed of seven characteristics that range in priority from high to low.
Every organization has a distinct value for each of these characteristics, which, when combined,
defines the organization's unique culture. Members of organizations make judgments on the
value their organization places on these characteristics, and then adjust their behavior to match
this perceived set of values. Let's examine each of these seven characteristics.

Characteristics of Organizational Culture

The seven characteristics of organizational culture are:
1. Innovation (Risk Orientation) - Companies with cultures that place a high value on
innovation encourage their employees to take risks and innovate in the performance of
their jobs. Companies with cultures that place a low value on innovation expect their
employees to do their jobs the same way that they have been trained to do them, without

looking for ways to improve their performance.

2. Attention to Detail (Precision Orientation) - This characteristic of organizational culture

dictates the degree to which employees are expected to be accurate in their work. A
culture that places a high value on attention to detail expects their employees to perform
their work with precision. A culture that places a low value on this characteristic does not.

3. Emphasis on Outcome (Achievement Orientation) - Companies that focus on results,

but not on how the results are achieved, place a high emphasis on this value of
organizational culture. A company that instructs its sales force to do whatever it takes to
get sales orders has a culture that places a high value on the emphasis on outcome
characteristic.

4. Emphasis on People (Fairness Orientation) - Companies that place a high value on this
characteristic of organizational culture place a great deal of importance on how their
decisions will affect the people in their organizations. For these companies, it is important
to treat their employees with respect and dignity.

5. Teamwork (Collaboration Orientation) - Companies that organize work activities around

teams instead of individuals place a high value on this characteristic of organizational
culture. People who work for these types of companies tend to have a positive
relationship with their coworkers and managers.

6. Aggressiveness (Competitive Orientation) - This characteristic of organizational culture

dictates whether group member

 ROLE OF ORGANISATIONAL CULTURE

AND DESIGN IN THE CHANGE PROCESS
The process of choosing and implementing a structural configuration is referred to as
organisational design. Some particular factors will have impact on the choices made when
designing the organisation: scale; technology; environment and strategy. Organisational
design involves the choices made about how to structure the organisation, and the
implementation of those choices.10
An effective organisational design reflects powerful external forces as well the desires of
employees and managers. In time of change, investments quickly become outmoded and
internal operations no longer work as expected. The obvious organisational design response
to uncertainty and volatility is to opt for a more flexible structure. However, these pressures
may run counter to those that arise from large size and technology and the organisation may
continue to struggle while adjusting its design a little at a time. In a change process, it is
imperative to consider the organisational design for an effective organisation.
Based on Flood4, it has been argued that organisational change2 can be classified into four
types of which changes in organisational functions, their organisation co-ordination and
control are one of them. For example, there may be changes in horizontal and vertical
structures; in the decision systems or policy and resource allocation mechanisms; and in the

criteria used for recruitment, appraisal, compensation and career development3.

In developed industrial societies, for example, there is evidence that organisational forms
tend to be changing from the rational bureaucratic structures to a flexible, network-based
configuration, characterised by a flat authority structure and multiple horizontal linkages
between the inner core of a firm and its outside suppliers, contractors and customers.6
Organisation Culture
Organisational culture refers to a system of shared meaning held by members that
distinguishes the organisation from other organisations. This system of shared meaning is a
set of key characteristics that the organisation values.7 Culture performs a number of
functions within an organisation.
First, it has a boundary-defining role; that is, it creates distinction between one organisation
and others. Second, it conveys a sense of identity for organisation members. Third, culture
facilitates the generation of commitment to something larger than ones individual selfinterest. Fourth, it enhances the stability of the social system. Finally, culture serves as a
sense-making and control mechanism that guides and shapes the attitudes and behaviour of
employees.
Culture is a liability when shared values are not in agreement with those that will further the
organisations effectiveness. This is most likely to occur when an organisations environment
is dynamic.8 Historically, the key factors that management looked at in making acquisition or
merger decisions were related to financial advantages or product synergy. In recent years,
cultural compatibility has become the primary concern.1
The merging of distinct cultures also presents challenges for an organization implementing a
merger. When a cultural change is pervasive, permanent, and implemented suddenly, the
transformation for people in the organization can be troubling.9 While a favourable financial
statement or product line may be the initial attraction of an acquisition candidate, whether
the acquisition actually works seems to have more to do with how well the two organisations
cultures match up. Fulop et. al 5 in their study of the context and processes of provider
mergers in the NHS in England found that the difficulties in the merger process included
perceived differences in organisational culture and perceptions of takeover which limited
sharing of good practice across newly merged organisations. Merger policy was based on
simplistic assumptions about processes of organisational change that do not take into
account the dynamic relationship between the organisation and its context and between
the organisation and individuals within it.

ORGANISATIONAL DESIGN
Organizational design is a step-by-step methodology which identifies dysfunctional
aspects of work flow, procedures, structures and systems, realigns them to fit current
business realities/goals and then develops plans to implement the new changes.
The manner in which a management achieves the right combination of
differentiation and integration of the organization's operations, in response
to the level of uncertainty in its external environment.

Differentiation refers to the subdivision of functional or departmental

units, each concentrating on a particular aspect of the organization's
operations. Integration refers to the linking of differentiated units to
achieve unity of effort in working toward organization's goals. In times of
high uncertainty, greater organizational effectiveness is achieved through
high differentiation coupled with high integration. In times of low
uncertainty, low differentiation and low integration are more effective. See
also organizational structure.
Read more: http://www.businessdictionary.com/definition/organizationaldesign.html#ixzz3meVdCdUe

WHAT IS ORGANIZATIONAL DESIGN?

BY DR. ROGER K. ALLEN 3 COMMENTS

Organizational design is a step-by-step methodology which identifies dysfunctional aspects of work

flow, procedures, structures and systems, realigns them to fit current business realities/goals and then
develops plans to implement the new changes. The process focuses on improving both the technical
and people side of the business.
For most companies, the design process leads to a more effective organization design, significantly
improved results (profitability, customer service, internal operations), and employees who are
empowered and committed to the business. The hallmark of the design process is a comprehensive
and holistic approach to organizational improvement that touches all aspects of organizational life, so
you can achieve:

Excellent customer service

Increased profitability
Reduced operating costs
Improved efficiency and cycle time
A culture of committed and engaged employees
A clear strategy for managing and growing your business

By design were talking about the integration of people with core business processes, technology and
systems. A well-designed organization ensures that the form of the organization matches its purpose
or strategy, meets the challenges posed by business realities and significantly increases the likelihood
that the collective efforts of people will be successful.
As companies grow and the challenges in the external environment become more complex,
businesses processes, structures and systems that once worked become barriers to efficiency,
customer service, employee morale and financial profitability. Organizations that dont periodically
renew themselves suffer from such symptoms as:

Inefficient workflow with breakdowns and non value-added steps

Redundancies in effort (we dont have time to do things right, but do have time to do them

over)
Fragmented work with little regard for good of the whole (Production ships bad parts to meet

their quotas)
Lack of knowledge and focus on the customer
Silo mentality and turf battles
Lack of ownership (Its not my job)
Cover up and blame rather than identifying and solving problems
Delays in decision-making
People dont have information or authority to solve problems when and where they occur
Management, rather than the front line, is responsible for solving problems when things go

wrong
It takes a long time to get something done
Systems are ill-defined or reinforce wrong behaviors
Mistrust between workers and management

10 Principles of Organization
Design
http://www.strategy-business.com/article/00318?gko=c7329

Although every company is different, and there is no set formula for

determining the appropriate design for your organization, we have identified
10 guiding principles that apply to every company. These have been developed
through years of research and practice at PwC and Strategy&, using changes in

organization design to improve performance in more than 400 companies

across industries and geographies. These fundamental principles point the
way for leaders whose strategies require a different kind of organization than
the one they have today.
1. Declare amnesty for the past. Organization design should start with
corporate self-reflection: What is your sense of purpose? How will you make a
difference for your clients, employees, and investors? What will set you apart
from others, now and in the future? What differentiating capabilities will allow
you to deliver your value proposition over the next two to five years?
For many business leaders, answering those questions means going beyond
your comfort zone. You have to set a bold direction, marshal the organization
toward that goal, and prioritize everything you do accordingly. Sustaining a
forward-looking view is crucial.
Weve seen a fair number of organization design initiatives fail to make a
difference because senior executives got caught up in discussing the pros and
cons of the old organization. Avoid this situation by declaring amnesty for the
past. Collectively, explicitly decide that you will neither blame nor try to
justify the design in place today or any organization designs of the past. Its
time to move on. This type of pronouncement may sound simple, but its
surprisingly effective for keeping the focus on the new strategy.
2. Design with DNA. Organization design can seem unnecessarily
complex; the right framework, however, can help you decode and prioritize the
necessary elements. We have identified eight universal building blocks that are
relevant to any company, regardless of industry, geography, or business
model. These building blocks will be the elements you put together for your
design (see Exhibit 1).

The blocks naturally fall into four complementary pairs, each made up of one
tangible (or formal) and one intangible (or informal) element. Decisions are
paired with norms (governing how people act), motivators with commitments
(governing factors that affect peoples feelings about their work), information
with mind-sets (governing how they process knowledge and meaning), and
structure with networks (governing how they connect). By using these
elements and considering changes needed across each complementary pair,
you can create a design that will integrate your whole enterprise, instead of
pulling it apart.
You may be tempted to make changes with all eight building blocks
simultaneously. But too many interventions at once could interact in
unexpected ways, leading to unfortunate side effects. Pick a small number of
changes five at most that you believe will deliver the greatest initial
impact. Even a few changes could involve many variations. For example, the
design of motivators might need to vary from one function to the next. People
in sales might be more heavily influenced by monetary rewards, whereas R&D
staffers might favor a career model with opportunities for self-directed
projects and external collaboration and education.

3. Fix the structure last, not first. Company leaders know that their
current org chart doesnt necessarily capture the way things get done its at
best a vague approximation. Yet they still may fall into a common trap:
thinking that changing their organizations structure will address their
businesss problems.
We cant blame them after all, the org chart is seemingly the most powerful
communications vehicle around. It also carries emotional weight, because it
defines reporting relationships that people might love or hate. But a company
hierarchy, particularly when changes in the org chart are made in isolation
from other changes, tends to revert to its earlier equilibrium. You can
significantly remove management layers and temporarily reduce costs, but all
too soon, the layers creep back in and the short-term gains disappear.
In an org redesign, youre not setting up a new form for the organization all at
once. Youre laying out a sequence of interventions that will lead the company
from the past to the future. Structure should be the last thing you change: the
capstone, not the cornerstone, of that sequence. Otherwise, the change wont
sustain itself.
We saw the value of this approach recently with an industrial goods
manufacturer. In the past, it had undertaken reorganizations that focused
almost solely on structure, without ever achieving the execution improvement
its leaders expected. Then the stakes grew higher: Fast-growing competitors
emerged from Asia, technological advances compressed product cycles, and
new business models appeared that bypassed distributors. This time, instead
of redrawing the lines and boxes, the company sought to understand the
organizational factors that had slowed down its responses in the past. There
were problems in the way decisions were made and carried out, and in how
information flowed. Therefore, the first changes in the sequence concerned
these building blocks: eliminating non-productive meetings (information),
clarifying accountabilities in the matrix structure (decisions and norms), and
changing how people were rewarded (motivators). By the time the company

was ready to adjust the org chart, most of the problem factors had been
addressed.
4. Make the most of top talent. Talent is a critical but often overlooked
factor when it comes to org design. You might assume that the personalities
and capabilities of existing executive team members wont affect the design
much. But in reality, you need to design positions to make the most of the
strengths of the people who will occupy them. In other words, consider the
technical skills and managerial acumen of key people, and make sure those
leaders are equipped to foster the collaboration and empowerment needed
from people below them.
You must ensure that there is a connection between the capabilities you need
and the leadership talent you have. For example, if youre organizing the
business on the basis of innovation and the ability to respond quickly to
changes in the market, the person chosen as chief marketing officer will need a
diverse background. Someone with a conventional marketing background
whose core skills center on low-cost pricing and extensive distribution might
not be comfortable in that role. You can sometimes compensate for a gap in
proficiency through other team members. If the chief financial officer is an
excellent technician but has little leadership charisma, you may balance him or
her with a chief operating officer who excels at the public-facing aspects of the
role, such as speaking with analysts.
As you assemble the leadership team for your strategy, look for an optimal
span of control the number of direct reports for your senior executive
positions. A Harvard Business School study conducted by associate professor
Julie Wulf found that CEOs have doubled their span of control over the past
two decades. Although many executives have seven direct reports, theres no
universal magic number. For CEOs, the optimal span of control depends on
four factors: the CEOs tenure thus far, the degree of cross-collaboration
among business units, the level of CEO activity devoted to something other
than working with direct reports, and whether the CEO is also chairman of the

board. (Weve created a C-level span-of-control diagnostic to help determine

your target span.)
5. Focus on what you can control. Make a list of the things that hold your
organization back: the scarcities (things you consistently find in short supply)
and constraints (things that consistently slow you down). Taking stock of realworld limitations helps ensure that you can execute and sustain the new
organization design.
For example, consider the impact you might face if 20 percent of the people
who had the most knowledge and expertise in making and marketing your
core products your product launch talent were drawn away for three
years on a regulatory project. How would that talent shortage affect your
product launch capability, especially if it involved identifying and acting on
customer insights? How might you compensate for this scarcity? Doubling
down on addressing typical scarcities, or what is not good enough, helps
prioritize the changes to your organization model. For example, you may build
a product launch center of excellence to address the typical scarcity of never
having enough of the people who know how to execute effective launches.
Constraints on your business such as regulations, supply shortages, and
changes in customer demand may be out of your control. But dont get
bogged down in trying to change something you cant change; instead, focus
on changing what you can. For example, if your company is a global consumer
packaged goods manufacturer, you might first favor a single structure with
clear decision rights on branding, policies, and usage guidelines because it is
more efficient in global branding. But if consumer tastes for your product are
different around the world, you might be better off with a structure that
delegates decision rights to the local business leader.

6. Promote accountability. Design your organization so that its easy for

people to be accountable for their part of the work without being
micromanaged. Make sure that decision rights are clear and that information
flows rapidly and clearly from the executive committee to business units,
functions, and departments. Our research underscores the importance of this
factor: We analyzed dozens of companies with strong execution and found that
among the formal building blocks, information and decision rights had the
strongest effect on improving the execution of strategy. They are about twice
as powerful as an organizations structure or its motivators (see Exhibit 2).
A global electronics manufacturer was struggling with slow execution and lack
of accountability. To address these issues, it created a matrix that could
identify those who had made important decisions in the past few years. It then
used the matrix to establish clear decision rights and motivators more in tune
with the companys desired goals. Sales directors were made accountable for
dealers in their region and were evaluated in terms of the sales performance of
those dealers. This encouraged ownership and high performance on both
sides, and drew in critically important but previously isolated groups, like the
manufacturers warranty function. The company operationalized these new
decision rights by establishing the necessary budget authorities, decisionmaking forums, and communications.

When decision rights and motivators are established, accountability can take
hold. Gradually, people get in the habit of following through on commitments
without experiencing formal enforcement. Even after it becomes part of the
companys culture, this new accountability must be continually nurtured and
promoted. It wont endure if, for example, new additions to the firm dont
honor commitments or incentives change in a way that undermines the
desired behavior.
7. Benchmark sparingly, if at all. One common misstep is looking for best
practices. In theory, it can be helpful to track what competitors are doing, if
only to help you optimize your own design or uncover issues requiring
attention. But in practice, this approach has a couple of problems.
First, it ignores your organizations unique capabilities system the strengths
that only your organization has, which produces results that others cant
match. You and your competitor arent likely to need the same distinctive
capabilities, even if youre in the same industry. For example, two banks might
look similar on the surface; they might have branches next door to each other
in several locales. But the first could be a national bank catering to millennials,
who are drawn to low costs and innovative online banking features. The other
could be regionally oriented, serving an older customer base and emphasizing
community ties and personalized customer service. Those different value
propositions would require different capabilities and translate into different
organization designs. The national bank might be organized primarily by
customer segment, making it easy to invest in a single leading-edge technology
that covers all regions and all markets. The regional bank might be organized
primarily by geography, setting up managers to build better relationships with
local leaders and enterprises. If you benchmark the wrong example, the
copied organizational model will only set you back.
Second, even if you share the same strategy as a competitor, whos to say that
its organization is a good fit with its strategy? If your competitor has a
different value proposition or capabilities system than you do, using it as a
comparison for your own performance will be a mistake.

If you feel you must benchmark, focus on a few select elements, rather than
trying to be best in class in everything related to your industry. Your choice of
companies to follow, and of the indicators to track and analyze, should line up
exactly with the capabilities you prioritized in setting your future course. For
example, if you are expanding into emerging markets, you might benchmark
the extent to which leading companies in that region give local offices decision
rights on sourcing or distribution.
8. Let the lines and boxes fit your companys purpose. For every
company, there is an optimal pattern of hierarchical relationship a golden
mean. It isnt the same for every company; it should reflect the strategy you
have chosen, and it should support the critical capabilities that distinguish
your company. That means that the right structure for one company will not
be the same as the right structure for another, even if theyre in the same
industry.
In particular, think through your purpose when designing the spans of control
and layers in your org chart. These should be fairly consistent across the
organization.
You can often hasten the flow of information and create greater accountability
by reducing layers. But if the structure gets too flat, your leaders have to
supervise an overwhelming number of people. You can free up management
time by adding staff, but if the pyramid becomes too steep, it will be hard to
get clear messages from the bottom to the top. So take the nature of your
enterprise into account. Does the work at your company require close
supervision? What role does technology play? How much collaboration is
involved? How far-flung are people geographically, and what is their preferred
management style?
In a call center, 15 or 20 people might report to a single manager because the
work is routine and heavily automated. An enterprise software
implementation team, made up of specialized knowledge workers, would
require a narrower span of control, such as six to eight employees. If people

regularly take on stretch assignments and broadly participate in decision

making, you might have a narrower hierarchy more managers directing only
a few people each instead of setting up managers with a large number of
direct reports.
9. Accentuate the informal. Formal elements like structure and
information are attractive to companies because theyre tangible. They can be
easily defined and measured. But theyre only half the story. Many companies
reassign decision rights, rework the org chart, or set up knowledge-sharing
systems yet dont see the results they expect.
Thats because theyve ignored the more informal, intangible building blocks.
Norms, commitments, mind-sets, and networks are essential in getting things
done. They represent (and influence) the ways people think, feel,
communicate, and behave. When these intangibles are not in sync with one
another or the more tangible building blocks, the organization falters.
At one technology company, it was common practice to have multiple
meetings before the meeting and meetings after the meeting. In other
words, the constructive debate and planning took place outside the formal
presentations that were known as the official meetings. The company had
long relied on its informal networks because people needed workarounds to
many official rules. Now, as part of the redesign, the leaders of the company
embraced its informal nature, adopting new decision rights and norms that
allowed the company to move more fluidly, and abandoning official channels
as much as possible.
10. Build on your strengths. Overhauling the organization is one of the
hardest things for a chief executive or division leader to do, especially if he or
she is charged with turning around a poorly performing company. But there
are always strengths to build on in existing practices and in the culture.
Suppose, for example, that your company has a norm of customer-oriented
commitment. Employees are willing to go the extra mile for customers when
called upon to do so. They deliver work out of scope or ahead of schedule,

often because they empathize with the problems customers face. You can draw
attention to that behavior by setting up groups to talk about it, and reinforce
the behavior by rewarding it with more formal incentives. That will help
spread it throughout the company.
Perhaps your company has well-defined decision rights, wherein each person
has a good idea of the decisions and actions for which he or she is responsible.
Yet in your current org design, they may not be focused on the right things.
You can use this strong accountability and redirect people to the right
decisions to support the new strategy.

Conclusion
A 2014 Strategy& survey found that 42 percent of executives felt that their
organization was not aligned with the strategy, and that parts of the
organization resisted it or didnt understand it. If thats a familiar problem in
your company, the principles in this article can help you develop an
organization design that supports your most distinctive capabilities and
supports your strategy more effectively.
Remaking your organization to align with your strategy is a project that only
the top executive of a company, division, or enterprise can lead. Although its
not practical for a CEO to manage the day-to-day details, the top leader of a
company must be consistently present to work through the major issues and
alternatives, focus the design team on the future, and be accountable for the
transition to the new organization. The chief executive will also set the tone for
future updates: Changes in technology, customer preferences, and other
disruptors will continually test your business model.
These 10 fundamental principles can serve as your guideposts for any
reorganization, large or small. Armed with these collective lessons, you can
avoid common missteps and home in on the right blueprint for your business.

ICICI organisation culture and values

Our Culture & Values

Brand Value

We create our brand with vitality, passion for our clients, respect for organizational values and belief in the
system. We represent our Brand in our strengths, belief and actions.

Work Environment

Our work environment fosters growth and learning of an individual fulfilling both the individual and organizational
aspirations.

Our values are reflected in the way we conduct our business and in the results that we consistently achieve for
our stakeholders. Our stakeholders benefit from us and the communities we serve.

We value ones personal growth and prosperity, and make our work place an energetic and involving area of
interest. We respect individuality, foster work life balance and promote an engaging environment at workplace.

Performance Driven Culture

We are committed to create an inclusive organization where everyone can succeed based on merit. Along with
refreshing physical work settings, we encourage work culture as evolved by enthusiastic professionals,
performance ethic, team work and positive vigor.
Learning & Development
Learning & Development is a continuous process to enhance professionals in technical, functional and softer
aspects required to succeed. We thrive by imparting skills and knowledge through various training interventions
to enhance personal & team effectiveness and overall development of capable managerial resources.

http://www.icicipruamc.com/Careers/OurCultureBeliefs.aspx

Our Work Culture

The work culture at ICICI Lombard plays a critical role in its success and ability to stand as the largest private sector
non-life insurer of India. Delivering challenging jobs, rewarding performance and providing opportunities continuously,
we ensure that the environment is growth inductive. At ICICI Lombard, your career path lies in your hands. Talent,
creativity, decisive action, and a sense of urgency are all valued.
Opportunity for all
ICICI Lombard is an Equal Opportunity Employer. Our objective is to recruit, hire, train and promote to all job levels,
the most qualified applicants without regard to race, color, religion, sex, national origin, age, disability, military service,
marital status or sexual orientation. The primary success quotient lies in your performance, aptitude and attitude.
Training & Development

ICICI Lombard believes in adding value to its human capital through various programs viz. induction program, product
training, e-learning modules and other functional training programs. This enables the employees to hone their skills,
think out of box, develop initiative and adopt a pro-active approach.
Challenges & Growth
Employees are encouraged to grow not just vertically, but also horizontally broadening the scope of their
responsibility within the organization. We offer critical and challenging roles in a wide range of industry segments and
our talent management goals are geared to creating a pipeline for potential leaders.

Organisational Structure And Cross

Cultural Management Icici Bank
Commerce Essay
This paper explores the linkage between organizational structure and cross-cultural
management. It suggests that a fluid and continuously evolving structure enables effective crosscultural management. In support of this, the paper reports on the experience of the second
largest bank in India and the largest private sector bank in India by market capitalization. The
Bank has a network of 2,509 branches and 5,808 ATMs in India, and has a presence in 19
countries, including India. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and
specialization subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. ICICI Bank is also the largest issuer of credit
cards in India. ICICI Bank's shares are listed on the stock exchanges
at BSE, NSE, Kolkata and Vadodara (formerly Baroda) ; its ADRs trade on the New
York Stock Exchange (NYSE).

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The Bank is expanding in overseas markets and has the largest international balance sheet
among Indian banks. ICICI Bank now has wholly owned subsidiaries, branches and

representatives offices in 19 countries, including an offshore unit in Mumbai. This includes wholly
owned subsidiaries in Canada, Russia and the UK offshore banking units in Bahrain and
Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and
representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the
United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian)
population in particular.
ICICI reported a 1.15% rise in net profit to Indian rupee1,014.21 crore on a 1.29% increase in
total income to Indian rupee9,712.31 crore in Q2 September 2008 over Q2 September 2007.
The bank's CASA ratio increased to 30% in 2008 from 25% in 2007.
ICICI Bank is one of the Big Four Banks of India, along with State Bank of India, Punjab
National Bank and Canara Bank - its main competitors.
Introduction
International business houses are increasingly operating with multicultural work forces. One key
to competitive advantage for these business houses is effective cross-cultural management.
Even conservative business houses such as traditional banks are finding that the thrust of
competition requires them to manage diversity in their workforces. An example of one such
traditional bank is ICICI Bank. ICICI Bank's performance and aspirations are underpinned by a
strong organizational culture of dynamism, meritocracy, excellence in execution and high
standards of professional integrity that have helped us become an industry leader. The bank runs
a leadership development program which aims to build leadership talent within the organization.
The program attempts to tap into the potential of employees and develop them into global
leaders. It has also extended its role beyond economic growth concerns to directly participate in
the pursuit of human development.

CROSS- CULTURE MANAGEMENT

Smith's Work View
Smith (ICICI MD) and his original team did well. ICICI prospered. Their 8-8 banking service set a
new benchmark in the industry BUT its grown too vast. Smith is surrounded by people who do
not present the true status of the crippling retail dissatisfaction
Smith has become risk averse and has appointed people who've been around him for years, as
heads of divisions. They do not have the same drive and enthusiasm as Smith and hence the
stagnation. The need of the hour is to expand infrastructure, bring in younger people in the top
management (people in 30s and early 40s). and ofcourse until then, ICICI can be avoided.

Work culture at ICICI Bank

It is a tech-savvy, non-hierarchical, work environment where early responsibility and independent

decision-making enable each employee to reach his/her potential. Coupled with this is a strong
performance management system that has built a meritocracy where high performing-high
potential individuals are duly rewarded.

Employee's Satisfaction
Even during recession ICICI Bank did not cut back on employees But instead announced a policy
of - No promotion & No bonus but no attrition too!! This policy is serving two purposes for ICICI
bank, cutting down employee cost and employee retention.
Employees also feel that as an employer the bank extends a lot of authority along with justified
accountability.
Employees perceived the working culture at ICICI bank to be very collaborative in nature. It can
be owed to the fact that the bank is highly segmented with a lot of overlapping and mostly distinct
roles and responsibilities.
The Employees also considered that ICICI bank offers them with a lot of financial benefits
ranging from your family health insurance to your kids school donations.
But certain concerns in terms of Lack of time for fulfilling social responsibilities And more sales
oriented culture are there.

Dress Code
ICICI Bank would issue dress to be worn by all Progamme Participants. This dress, as laid down,
would be worn for all classes and other organised activities. Till the time the participants are
issued with the dress they would abide by the following dress code: -

(a) Gentlemen
(i) Formal office trousers and shirts with a tie. Most acceptable colours for trousers would be
black, brown, blue and grey. Preferable pastel colours for shirts.
(ii) Suits for formal occasions.
(iii) Formal footwear
(iv) Well groomed.

(b) Ladies

(i) Silk or cotton (starched) sari

(ii) Formal western wear (formal trousers/skirts with a top or a jacket) or salwar kameez.
(iii) Formal footwear.
(iv) Well groomed.

Role Of Women In ICICI Bank

Chanda Kochhar knew nothing about retail banking when she took over ICICI Bank's fledgling
retail operations in 1998 at the age of 36. That made Citibank and others think ICICI was only
doing a "small flirtation," she says, and they "underestimated the growth in the market." They
also underestimated this smart, assertive woman, known for her colorful saris and carefully
matched jewelry.
Today ICICI, India's second-largest and fastest-growing bank, is the market leader in retail
banking, with more than 15 million customers, accounting for more than a third of India's total
retail credit. And Kochhar - No. 37 on this year's list of the world's most powerful businesswomen
- added corporate banking to her portfolio in April and is a leading candidate to become
managing director and chief executive of the Mumbai bank when the job becomes vacant at the
end of 2008.
That a woman should achieve such success in a male-dominated industry, in an economy where
women often play subservient roles, might be a surprise at any other Indian bank.
But ICICI (Charts) has made a name for itself by recognizing female talent. Three of the five
members of the bank's executive board are women, as are 13 of its 40 top managers and one of
Kochhar's two rivals for the chief executive job - Shikha Sharma, the 47-year-old managing
director of ICICI Prudential.
Once dubbed the "petticoat brigade" by Mumbai's chauvinistic banking fraternity, these highly
competitive women have helped build a business known for its aggressive, risk-taking attitude
and its growth from a sleepy, bureaucratic development institution into India's most diversified
and customer-oriented bank. "Almost all the leaders we have picked have succeeded, and most
have been women," says K.V. Smith, ICICI's CEO, who has been responsible for empowering
them.
Kalpana Morparia, a lawyer and the other joint managing director, retires next May. Her peers at
other banks say she has been the backbone of ICICI for the past ten years, looking after the
raising of funds and the regulatory environment. She says she stayed at ICICI, when she could
have earned far more elsewhere, "because the empowerment gives an entrepreneurial
framework, where you have all the support systems."
Sharma, another early achiever and fast learner, admits she is "fiercely competitive." When she
was 33 she headed ICICI's side of a securities joint venture with J.P. Morgan, initially knowing
little about markets. That led to a two-year stint at Morgan, after which she ran ICICI's corporate

planning department and started its retail banking operation. In 2000, knowing nothing about
insurance, she set up the joint venture with Britain's Prudential, which is restricted by government
policy to a 26% equity stake and has only a minimal management presence. That leaves Sharma
in charge of India's largest private-sector insurance company, with 12.5% of the market. She
says women are good at succeeding without prior experience because "they have smaller egos
[than men], and it's easier for me to say, 'Hey, I know nothing about this.' "

Technology Department
Very aggressive Bank in terms of adopting the best practices, technology and takng business for
a young entrant a very good opportunity to learn and grow
Extreme work pressures makes one to learn to respond quickly and efficiently and absorb
pressure a trait useful for the future
Senior management backing for new initiatves
Fairly transperant Performance Appraisal system
Open to changes in department for employees, allowing employees to grow

Very professional, Good place to work

It need only to sell product, brand awareness is high, very strong in systems, minimum
paperwork, good training opportunities, opportunities given to do different things other than the
regular job. Excellent place to learn marketing and strategy. Unearthly working hours usual. Less
involvement from HR regarding welfare of employees, some established managers tend to push
down people who don't perform instead of hand holding them, demotions in roles very common,
even if you are a good performer. Senior Management care more for your employees, they are
more than just another email id! Find ways to understand what's happening on the field, its very
different from whatever impression you have!
Flexibility in terms of changing job profiles; power and authority assigned at each level is very
motivating; employees feel very powerful in ICICI as compared with other organisations.

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ICICI BankBackground in brief

In 1955, The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of World Bank, the Government of India and representatives of

Indian industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. In 1994, ICICI established
Banking Corporation as a banking subsidiary. Formerly known as Industrial Credit and
Investment Corporation of India, ICICI Banking Corporation was later renamed as 'ICICI Bank
Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking
operations - taking deposits, credit cards, car loans etc. In 2001, ICICI acquired Bank of
Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad
Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s. In 2002, The
Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, into ICICI Bank. After
receiving all necessary regulatory approvals, ICICI integrated the group's financing and banking
operations, both wholesale and retail, into a single entity. At the same time, ICICI started its
international expansion by opening representative offices in New York and London. In India,
ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered
Bank had inherited when it acquired Grindlays Bank.
In 2003, ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it
established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in
Singapore and representative offices in Dubai and Shanghai. In 2004, ICICI opened a
representative office in Bangladesh to tap the extensive trade between that country, India and
South Africa. In 2005, ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with
about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a
branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a
branch in Dubai International Financial Centre and in Hong Kong. In 2006, ICICI Bank UK
opened a branch in Antwerp, in Belgium. ICICI opened representative offices
in Bangkok, Jakarta, and Kuala Lumpur. In 2007, ICICI amalgamated Sangli Bank, which
was headquartered in Sangli, in Maharashtra State, and which had 158 branches in
Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in 1916 and
was particularly strong in rural areas. With respect to the international sphere, ICICI also
received permission from the government of Qatar to open a branch in Doha. Also, ICICI
Bank Eurasia opened a second branch, this time in St. Petersburg. In 2008, The US Federal
Reserve permitted ICICI to convert its representative office in New York into a branch. ICICI
also established a branch in Frankfurt. In 2009, ICICI made huge changes in its organization like
elimination of loss making department and re-stretching outsourced staff or renegotiate their
charges in consequent to the recession. In addition to this, ICICI adopted a massive approach
aims for cost control and cost cutting. In consequent of it, compensation to staff was not
increased and no bonus declared for 2008-09.
On 23 May ICICI Bank announced that it would merge with Bank of Rajasthan through a
share-swap in a non-cash deal that values the Bank of Rajasthan at about Indian rupee3,000
crore. ICICI announced that the merger expand ICICI Bank's branch network by 25%.
On 18h October 2010, ICICI will inaugurate I-Express, an instant cross-border money transfer
option for Non-Resident Indians (NRIs). This service will be available through the ICICI Bank's
select partners in the Gulf Cooperation Council.

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion)
at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended
March 31, 2010. The Bank has a network of 2,509 branches and 5,808 ATMs in India, and has a
presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialised subsidiaries in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our
UK subsidiary has established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock
Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New
York Stock Exchange (NYSE).

Controversies over time

ICICI Bank has been in focus in recent years because of alleged harassment of customers by its
recovery agents. Listed below are some of the related news links:
ICICI Bank was fined Indian rupee55 lakh for hiring goons (known coloquially as "goondas") to
recover a loan. Recovery agents had ,allegedly, forcibly dragged out a youth (who was not even
the borrower) from the car, beaten him up with iron rods and left him bleeding as they drove
away with the vehicle. "We hold ICICI Bank guilty of the grossest kind of deficiency in service and
unfair trade practice for breach of terms of contract of hire-purchase/loan agreement by seizing
the vehicle illegally,""No civilised society governed by the rule of law can brook such kind of
conduct" said Justice Kaleem, who was born in Laddhawala, Muzaffarnagar is the president of
the consumer commission. [11], [12], [13], [14], [15], [16], [17], [18]
Four ICICI loan employees arrested on theft charges in Punjab. [19]
ICICI Bank told to pay Indian rupee1 lakh as compensation for using unlawful recovery
methods. [20]
RBI warns ICICI Bank for coercive methods to recover loans. [21]
ICICI Bank drives customer to suicide - Four men including an employee of ICICI Bank booked
under sections 452, 306, 506 (II) and 34 of IPC for abetting suicide. According to the suicide note
they advised him, "If you cannot repay the bank loan, sell off your wife, your kids, yourself, sell
everything at your home. Even then if you cannot not pay back the due amount, then it's better if
you commit suicide." India biggest private bank has compensated the life by money. [22], [23],
[24]

ICICI Bank on huge car recovery scam in Goa - ICICI Bank invest in car-jackers to recover loans
in Goa. A half an hour investigative report on CNN-IBN's 30 Minutes. The under cover report was
executed by CNN-IBN's Special Investigations Team from Mumbai, led by Ruksh Chatterji. [25]
Family of Y. Yadaiah alleged that he was beaten to death by ICICI Bank's recovery agents, for
failing to pay the dues. Four persons were arrested in this case. [26]
A father while talking to Times of India, alleged that "ICICI Bank recovery agents visited his
house and threatened his family. And his son Nikhil consumed poison because of the tension".
[27]
Oppressed by ICICI Bank's loan recovery agents, Shakuntala Joshi (38), committed suicide by
hanging. The suicide note stated that she was upset with the ill-treatment meted out by ICICI
Bank's recovery agents and had thus decided to end her life. [28]
In another case of a suicide it is alleged that 'goondas' sent by ICICI Bank abused Himanshu and
his wife in front of the entire residential colony before taking away his vehicle. Feeling frustrated
and insulted, he reportedly committed suicide. [29]
C.L.N Murthy, a scientist with the Hyderabad-based Indian Institute of Chemical Technology, was
allegedly tortured by recovery agents of ICICI Bank after he defaulted on his loan."They
humiliated me no end. They ripped my shirt, shaved my moustache, cut my hair and gave
electric shocks on my chest and even spat on my face" adds Murthy. [30]
A dozen recovery agents of ICICI Bank, riding on bikes, allegedly forced a prominent lawyer,
Someshwari Prasad, to stop his car. They held Prasad at gunpoint and also slapped him to force
him. A manager of the ICICI Bank branch, Rakesh Mehta, along with four other employees were
arrested. [31]
In a landmark case, Allahabad High Court had ordered registration of an FIR against ICICI
Bank's branch manager, President, Chairman and Managing Director on a complaint of 75-yearold widow Prakash Kaur. She had complained that "goondas" were sent by the bank to harass
her and forcibly took away her truck. When the Supreme Court wanted to know about the
procedure adopted by the Bank, ICICI Bank counsel said notice would be sent to a defaulter
asking him either to pay the instalments or hand over the vehicle purchased on loan, failing
which the agents would be asked to seize it. When the Bench pointed out that recovery or
seizure could be done only legally, ICICI Bank counsel said, "If we have to go through the legal
process it would be difficult to recover the instalments as there are millions of defaulters". [32],
[33]
Taking strong exception to ICICI Bank's use of 'goondas' against a defaulter, the president of
Consumer Disputes Redressal Forum said, "The fact leaves us aghast at the manner of
functioning and goondaism in which the bank is involved for a petty amount of Indian
rupee1,889... such attitude is deplorable and sends chills down the spine....The bank had the
option to recover dues through legal means. They have no legal right to snatch the vehicle in
such a manner which amounts to robbery,". In this case recovery agents pointed a pistol at a
defaulter when he tried to resist. ICICI bank argued that they had taken peaceful possession of

the vehicle "after due intimation to the complainant as he was irregular in remitting the monthly
instalments". But the court found out that the records proved otherwise. [34]
Two senior ICICI Bank officials were booked for abducting one Vikas Porwal from his house and
keeping him hostage in the Bank's premises. [35]
The credit card division of the ICICI Bank allegedly threatened a senior citizen in Chandigarh with
a fictitious arrest warrant on account of a default that never was. [36]
A Consumer Commission has asked ICICI Bank MD K V Smith to appear before it in respect a
complaint. A borrower on protesting against the forceful dispossession of his car, as seen in the
post-incident photographs, was roughed up and sustained injuries. [37]
An 18-year-old boy was allegedly kidnapped and detained at the Pune branch of ICICI Bank. [38]
There have been several other minor legal cases accusing harassment by ICICI Bank. [39], [40],
[41], [42]
A consumer court imposed a joint penalty of Indian rupee25 lakh on ICICI Bank and American
Express Bank for making unsolicited calls.[43]
The truth is the ICICI Bank cannot serve you. Its branches are crowded, its staff has become
incompetent and its ATMs resemble municipal water pipe queues in early morning Mumbai
slums. They started with a good strategy. With Smith as the CEO, ICICI executed his plans very
well. Unlike the dominant government owned banks, ICICI's branches are located on the main
commercial streets of cities and towns. These are well decorated, glass and steel type of
buildings and very spacious (by Indian standards). Of late, ICICI has added more retail
customers in proportion to its existing branch infrastructure.
The already overcrowded branches are now packed with people of all backgrounds and colour.
ICICI staff is still 10% better than say Union Bank of India's but they are not as efficient as they
used to be. A lot of ex- government bankers have get into ICICI working culture and with them
they have brought their 'more excuses than work' attitude. Account opening is a meticulous
process for want of unwanted documents. Cheque clearance delay is more than normal. Small
talk and ICICI staff are clueless. The culture is taking over the go-getter young attitude that once
reigns.
Home loans are rejected for no concrete reasons, credit verification is done by bunch of bullies
and collection has probably been outsourced to the mafia or the underworld...

Conclusion & Suggestions

Now on the basis of above observations the functioning of ICICI bank can be concluded as
follows:

 ICICI bank is following Value based model using the strategy of empowering employees as
workers and as owners. The aim being to creates a corporate culture where work can be more
satisfying and economically rewarding. Thereby principles of Value-Based Management, is being
used by ICICI bank as an ethical mantra resulting into greater customer and employee
satisfaction From which can flow increased cost savings, increased sales, and increased profits.
Talking about the Bareilly District ICICI bank has two branches covering the entire district.
Although ICICI bank has appointed a number of agents on commission basis for the same.
Consumer also disclosed that there are many hidden costs involved in the services provided
by ICICI bank which defies the image of private bank and hinders the common man to approach
them for other business activities. A specific case that comes to mind pertains to the housing
finance sector.
Although the customers seemed to be satisfied with ICICI Bank they felt in recent years the
services of the bank have been drastically affected due to the newly appointed employees who
seemed to learn at the cost of customers.
They also felt that employees at ICICI bank seemed to be stressed resulting in detoriation of
service quality.
It has also been analyzed that ICICI bank has shown the tendency to cater its services to
classes rather than masses in the district. This has prevented them to give loans to priority
sector, direct agricultural advances and loan for entrepreneurship.
But it was analyses that Customers perceive ICICI bank as a one stop solution (Universal
Bank) for all financial need of individuals and institutions alike. Attributing to its vast network,
probably the largest among private sector banks.
ICICI has more than 5,808 ATMs. By Indian banking standards its a big number, but by ICICI
Customer figures, it's too low. Most ATMs ALWAYS have a queue. ATM screen interface is user
friendly but the network is often slow which kills the enthusiasm to withdraw your money and run.
One Has to wait as long as 16 minutes to withdraw his/her OWN cash from ICICI.
It is a Very professional, good place to work, As it need only to sell product, brand awareness is
high, very strong in systems, minimum paperwork, good training opportunities, opportunities
given to do different things other than the regular job. Excellent place to learn marketing and
strategy.
Flexibility in terms of changing job profiles; power and authority assigned at each level is very
motivating; employees feel very powerful in ICICI as compared with other organisations.

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The changing face of ICICI Bank

The changing face of ICICI Bank
Anita Bhoir & Baiju Kalesh
Share
First Published: Sun, Aug 22 2010. 11 08 PM IST

Updated: Sun, Aug 22 2010. 11 08 PM IST

Mumbai: When ICICI Prudential Life Insurance Co. Ltds managing director and
chief executive V. Vaidyanathan resigned on 28 July, he became the fourth highprofile executive to quit the ICICI Group since Chanda Kochhars rise to the top at
Indias largest private sector bank.
Also See Talent Pool (PDF)
He joined his predecessor Shikha Sharma, Sanjoy Chatterjee, executive director
at the bank; and Renuka Ramnath, who had been heading ICICI Venture, Indias
largest private equity firm, in leaving the group.
Vaidyanathan has moved to Kishore Biyani-promoted Future Capital Holdings Ltd.
Sharma heads Axis Bank Ltd; Chatterjee is co-head of Goldman Sachs in India;
and Ramnath has set up her own fund, Multiples Alternate Asset Management.
ICICI Bank Ltd took just 24 hours to identify Vaidyanathans successorSandeep
Bakhshi, an executive director who had helped Kochhar consolidate the banks
retail book. The organization doesnt seem to have a leadership vacuum; it has a
healthy talent pipeline of 2,000 people.

While a section of the analyst community says that people movement is a

concern for the bank, Kochhar, 49, and the youngest chief executive officer
(CEO) in the banks 55-year history, is unfazed by such exits.
Historically, ICICI Bank has been a talent pool for the Indian financial sector. In a
high-growth, progressive organization, people are given large responsibilities at a
very young age and the experience and expertise that they gain become very
valuable for other organizations. she said in an interview. This is a recognition
of our work culture and our ability to nurture talent and build a leadership pool.
To be sure, high-profile exits are not a new phenomenon in ICICI Bank. Kishor
Chaukar, former head of ICICI Securities Ltd, the banks investment banking arm,
and a batchmate of its chairman K.V. Kamath at the Indian Institute of
Management-Ahmedabad, had left the organization early this decade to head
Tata Industries Ltd.
Talent suppliers
Kochhars former colleague, Kalpana Morparia, now heads JPMorgan Chase and
Co.s India operations. The long list of others who left the bank in the past for
other organizations include Ajay Srinivasan (CEO of Aditya Birla Financial
Services Group), Vedika Bhandarkar (managing director and vice-chairman, India,
and head of the investment banking department and global markets solutions
group in India at Credit Suisse India), Bala Swaminathan (with Bank of America
Merrill Lynch).
Even Rashesh Shah, founder and chairman of Edelweiss Capital Ltd, used to work
for ICICI Bank. Vaidyanathan aspires to start his own organization someday.
You cannot do much to stop people if they want to do something different, says
K. Ramkumar, executive director of the bank who is in charge of human
resources. Highly talented people put on the bench for (a) long time will leave.
You should not grudge (that).

Entities such as ICICI Bank, HDFC Bank Ltd and State Bank of India will have to
come to terms with the fact that they will be suppliers of talent to the industry,
he says.
Neeraj Swaroop, head of Standard Chartered Bank in India, was heading
consumer banking at HDFC Bank until 2005. Another HDFC Bank executive,
Samir Bhatia, head of corporate and SME (small and medium enterprises)
banking, had left for Barclays Plc in India in 2006 to head its retail and
commercial banking operations in India.
The churn in senior management following a change of guard is not unique to
ICICI Bank alone.
Proven track record
After Sharma took over the reins at Axis Bank, Hemant Kaul, a close confidant of
its former chairman and managing director P.J. Nayak, and head of retail banking,
quit. Similarly, after the merger of Centurion Bank of Punjab with HDFC Bank, its
CEO Shailendra Bhandari quit even though he was made an executive director at
HDFC Bank. Bhandari now heads ING Vysya Bank Ltd.
Too many senior-level exits in a short span of time does not augur very well for
an organization. In case of ICICI Bank, they have found replacements within the
group who have been equally competent and have had a proven track record,
said A.S.V. Krishnan, senior research analyst at Ambit Capital Pvt. Ltd.
There will be churn of talent, but its not a cause of concern for analysts and
investors once the performance gets demonstrated... For instance, when P.J.
Nayak quit Axis Bank, there was a blip in sentiments, but that lasted only until
Sharma demonstrated the same consistency in performance at Axis Bank, he
added.
Kochhar, too, seems to have convinced investors that she could deliver. In the
past one year, the banks stock has advanced 38.23% against a 22.58% rise in
the Sensex, Indias bellwether equity index.

Kochhar took over as managing director and CEO in May 2009, but the
succession plan had been drafted in late 2007 when the bank appointed Wayne
Brockbank, a professor at the University of Michigans Ross School of Business
and a human resources consultant, to evaluate the leadership qualities of senior
ICICI Bank executives.
Brockbank spent a year during which he zeroed in on Kochhar after talking to
peers, bosses and subordinates of at least six other senior bank executives.
Growth pangs
Kochhars job was cut out. Chasing growth, thousands of bank agents sold
mortgages, car and consumer loans, but in the absence of adequate retail
deposits, the banks dependence on high-cost wholesale deposits grew, raising
its cost of funds.
The high-growth business model also forced it to raise equity from the market
frequently. Between fiscal 2004 and 2008, when the global financial system was
awash with liquidity and interest rates were low, a growth-hungry ICICI Bank
borrowed short and lent long.
So when the rate cycle suddenly changed and the financial system was hit by an
unprecedented liquidity crunch in late 2008, the bank found it difficult to sustain
its business model. Kochhar had to consolidate the balance sheet and fight
public perception about the quality of the banks assets. She also had to bring
down the cost of deposits aggressively.
Her formula is working. A 35.2% growth in net profit in the June quarter is
testimony to that. After a long pause to put its house in order, the balance sheet
expanded by 2% in the June quarter and the bank is in a position to reap the
opportunity presented by the economic recovery.
It has reduced the cost of deposits and raised its current account and savings
account deposits as a proportion of total deposits to a high 41.7%.
Kochhar has also brought in a change in the focus of the bankfrom product
innovation to customer care. Its new slogan khayal aap-ka demonstrates that

change. Post the merger of Bank of Rajasthan Ltd with itself, it has 2,500
branches.
The objective is to garner low-cost deposits and increase customer interaction. To
do that, it is hiring executives from public sector banks, something ICICI Bank
had done in early 1990s when it was set up (subsequently, its parent institution
was merged with it).
The other salient business features in the Kochhar regime is shrinking the
portfolio of unsecured loans. If such loans go bad, banks take a direct hit as there
is no collateral to back them.
Ready for competition
The bank is preparing itself for the competition that will intensify on the human
resources front once the Reserve Bank of India allows new private companies to
open.
It has tied up with Manipal University for supply of talent and is running many
programmes to ensure that the pipeline does not dry up. Post the acquisition of
Bank of Rajasthan, ICICI Bank has 49,000 employees. It has brought 9,000
relationship managers who were working on contract onto its pay roll, the largest
one-shot recruitment the bank has ever done.
Indian companies choose a reactive strategy rather than an integrated one to
create a pipeline of leaders, says Anita Belani, India head at talent and career
management firm Right Management, which advises Fortune 500 companies.
The business paradigm has changed and as companies expand to capture
growth, both in India and abroad, lack of leadership pipeline is a risk to
business.
Ramkumar does not want to take any risk and insists that the bank has an
adequate number of replacements for leaders at every level. At the highest
level, we need a 200% cover. This means for every person we should have a
cover of two possible replacements, he says.

It has identified 750 among 2,500 branches as A class branches in terms of

business and wants to have a 60% cover at the branch banking level. It is also
hiring people for treasury and expanding the legal team. For commercial
banking, it has recruited around 75 public sector bankers and plans to scale up
this number to 200.
ICICI Bank measures attritions at two different levelsone is the overall attrition
and the other is talent attrition. If the talent attrition number goes to double
digit then we would get worried. For sometime now it has been in the range of 57% for ICICI Bank, says Ramkumar. The overall attrition level for the bank is
around 20%. In a high-growth economy this number does not bother me.
Room for growth
What is important for an organization is whether it builds adequate depth of
talent to fill up any slot that comes up due to someone leaving, and whether it is
able to attract talent from outside when required. We are doing both successfully.
In the recent past, we have had a senior person coming back to the organization
at the board level, says Kochhar.
She was referring to Rajiv Sabharwal, who returned to the bank after a brief stint
at Sequoia Capital India, a private equity firm.
In an internal communication with employees, Kochhar has envisaged ICICI Bank
among the worlds top 20 banks in terms of market capitalization by 2015. There
is still a long way to go; its current world ranking is 56 in terms of market value.
While it is back on the path of growth, a former ICICI executive says the story of
high-profile exits is not yet over. There could be more. But every time a senior
executive quits, its wrong to interpret that somebody is leaving. It could be that
the organization wants to get rid of the person, he says.
Kochhar refuses to be dragged into any controversy.
At times, an individuals career objectives may differ from the organizational
view; or the fit of a person for the emerging strategy may be misaligned. In such

cases it is best for the individual to move on. This keeps the organization vibrant
and creates room for people to grow, she says.

http://www.icicibank.com/aboutus/about-us.page?#toptitle
ICICI company profile
ICICI Bank is India's largest private sector bank with total assets of Rs. 6,461.29 billion (US$ 103
billion) at March 31, 2015 and profit after tax Rs. 111.75 billion (US$ 1,788 million) for the year ended
March 31, 2015. ICICI Bank currently has a network of 4,050 Branches and 12,921 ATM's across
India.

History
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was
its wholly-owned subsidiary.

ICICI Group Companies

ICICI Bank offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its group companies.

Board of Directors
ICICI Bank's Board members include eminent individuals with a wealth of experience in international
business, management consulting, banking and financial services.

Investor Relations
All the latest, in-depth information about ICICI Bank's financial performance and business initiatives.

Career Opportunities
Explore diverse openings with India's second-largest bank.

Awards
Time and again our innovative banking services has been recognized and rewarded world over.

News Room
Catch up with ICICI Bank's latest business and social initiatives, as well as innovative product
launches.

Corporate Social Responsibility

ICICI Bank is deeply engaged in human and economic development at the national level. The Bank
works closely with ICICI Foundation across diverse sectors and programs.