1.

Background
o Since the mid 1980s- ICICI diversified into areas like merchant banking and
retailing
o In 1987- ICICI co-promoted India's first credit rating agency, Credit Rating
and Information Services of India Limited (CRISIL), to rate debt obligations of Indian companies.
o In 1988- promoted India's first venture capital company –to provide venture
capital for indigenous technology oriented ventures
o In the 1990s- diversified into different forms of asset financing like financing for
non-project activities,etc
2.
o In 1991- ICICI and the UTI set up India's first screen-based securities
market
o In 1992- tied up with J P Morgan of the US to form an investment banking
company
o In 1990s-, took over ITC Classic, Anagram Finance and merged the Shipping
Credit Investment Corporation of India (SCICI) with itself to develop retail business
o ICICI also entered the insurance business with Prudential plc of UK.
o ICICI known for its quick responsiveness to the changing circumstances
3. Objectives of ICICI Bank
o assist in creation, expansion and modernization of enterprises
o encourage and promote the participation of private capital, both internal and
external
o take up the ownership of industrial investment
o expand the investment markets.
4. Major Change In May 1996, K.V. Kamath replaced Narayan Vaghul, CEO of India's
leading financial services company ICICI
5.
6.
o Kamath identified the main problem as the company's ignorance regarding
the nuances of lending practices in newly opened sectors like infrastructure.
o The change program was initiated within the organization
o Organization changed - from a development bank1 mode to that of a market-driven
financial conglomerate.
7.
o Organization Divided In Groups
o Infrastructure group (IIG)
o Oil & gas group (O&G)
o Planning and treasury department (PTD)
o Structured products group (SPG)
8. Effects of change
o A majority of the work along with a lot of good talent shifted to the corporate center
o An ex-employee remarked, "The way to get noticed inside ICICI after 1996
has been to attach yourself to people who were heading these departments
o These groups were seen as the thrust areas and if you worked in the zones it was
difficult to be noticed
9. Change-resistance at ICICI Some of the people who thought did not fit in this set-up were
quick to leave the organization.
10. Operations focus on customers
o ICICI set up three new departments,
o 1) Major client group (MCG)
o A staff of about 30-40 people
o Handled top 100 customers of ICICI
11.
o 2) Growth client group (GCG)
o A staff of about 60 people
o Looked after the needs of mid-size companies
o 3) Personal finance group
12. Result of these changes
o Complaints against these changes put in continued and ICICI was blamed for not
putting in adequate systems in place to develop the right people.
o The feedback process - was also questioned
o In many cases the appraisal scores were same but the bonus amount was not
13. Imparting New Skills to Existing Employees
o Training programmes and seminars were conducted
o Overseas training programmes.
o Introduced a two-year Graduates' Management Training Programme
(GMTP)
14. ICICI also reviewed the compensation structure in place .
o Two types of remuneration were considered
o A contract basis which would attract risk-takers.
o A tenure-based compensation which would be appealing to employees who
wanted security.
15. Results
o By 2000, ICICI had emerged as the second largest financial institution in India with
assets worth Rs 582 billion.
o The company had eight subsidiaries providing various financial services.
16. Five S Implementation..
o Five S is one of the basic tenets of lean
o Manufacturing.
o It originated in Japan as a work-environment enhancing measure, but the
Japanese believe this visually-oriented exercise is useful not just for improving the physical
environment, but also for improving Total Quality Management (TQM) processes
17. Five S are….
o seiri (sorting out)
o seiton (systematic arrangement)
o seiso (spic-n-span)
o seiketsu (standardise) and
o shitsuke (self-discipline)
18.
o In the first step (sorting out), individual owners sort their belongings into needs and
wants.
o This is followed by making a systematic layout of the workplace, specifying the
storage areas and deciding where to put each item, right from files and documents down to the
stapler and pins.
o The third phase (spic-n-span) monitors whether the earlier steps (S1 and S 2).
o Next is to standardise the policies and rules.
o Finally, it is self-discipline that is required to sustain Five S
19. Outcomes..
o Best advantage is that Five S could be easily followed by everybody from the
"peon to the president.
o ICICI company claims to had saved Rs 7.5 crore.
o Five S had contributed generously, making up 50 per cent of the savings.
o The lower rung employees boast of tracing documents in record time just 30
seconds.
20.
o By 2000, it had half a million retail bank account holders. That number skyrocketed
in the next few years; and it had 10 million retail bank account holders by 2004.
o ICICI Bank claims to be the number one credit card company in the country with
2.5 million cards issued in less than five years.
o Emptying out filing cabinets and drawers and retaining only what was absolutely
essential due to which freed about 10 per cent storage space.
21. In December 2000, ICICI Bank was merged with Bank of Madura (BoM) ICICI Bank was
nearly three times the size of BoM Staff Strength: ICICI - 1,400 BOM - 2,500 The working
culture at ICICI and BoM were quite different
22. Bank Of Madura ( BOM ) Industrial Credit and Investment Corporation of India (ICICI)
management concentrated on the overall profitability of the Bank management turned all its
 departments into individual profit centers and bonus for employees was given on the
performance of individual profit center rather than profits of whole organization
23. CHANGE
o The company appointed consultants Hewitt Associates to help in working out a
uniform compensation and work culture and to take care of any change management problems.
24. 'POST-MERGER' EMPLOYEE BEHAVIORAL PATTERN PERIOD EMPLOYEE
BEHAVIOR Day 1 Denial, fear, no improvement After a month Sadness, slight improvement
After a Year Acceptance, significant improvement After 2 Years Relief, liking, enjoyment,
business development activities
25. MANAGING HR DURING THE ICICI-BoM MERGER
o Areas Of HR Integration Focussed On :
o Employee communication
o Cultural integration
o Organization structuring
o Performance management
o Training
o Employee relations
26.
o By June 2001, the process of integration between ICICI and BoM was started.
o According to a news report, "The win-win situation created by….HR
initiatives have resulted in high level of morale among all sections of the employees from the
erstwhile BoM."
o
27. CHANGE MANAGEMENT AT GODREJ
28. NEED FOR CHANGE
o Indian economy opened to global competition
o Godrej group was in a Quandary
o No exposure to competition or new technology
o Entered into two alliances
 P&G
 GE
29. NEED FOR CHANGE
o Entire distribution of Godrej transferred to P&G
o 1995-Break-up of the joint venture between Godrej & P&G
o Post breakup Godrej devoid of distribution system
o Rebuilding exercise
o 1995-TQM
30. CHANGE
o Switch from a family-run business to a professionally managed company
o Changed the earlier model of management hierarchy
o Adopted a participative management model
 team spirit
 employee improvement programmes.
31.
o "Many Indian companies have increased their emphasis on training
tremendously. I think it is absolutely essential to spend a lot of money on training and continuous
improvement. In our group every employee has to undergo at least five days of training a
year."
o Adi Godrej, Chairman Godrej Group
32. TQM
o 1995-TQM Awareness programmes conducted for all employees
o Objective
o Driving force
o Maximize quality and minimize costs.
o Total employee involvement, total waste elimination and total quality control
33. KAIZEN
o Japanese technique of continuous improvement
 o Increase in employee involvement and morale.
o Significant savings
o Flexible
34. 360-Degree Evaluation
o Assessment
o Unbiased feedback to the employee
o Self development
35. Economic Value Added Training (EVA)
o 2001-Introduction of EVA
o Extensive training program for managerial and officer levels
o Training regarding decision making of investments and trade-offs between the
income statement and the balance sheet.
o Stern Stewart, New York based management consultancy
36. GALLOP- Godrej Accelerated Learning Leadership and Orientation Programme
o 2002 -structured and organised induction-training programme
o Objective –to nurture the new recruits into leaders and dynamic performers
o The trainees were rotated in four departments other than their primary department
including a compulsory sales stint.
o Mandatory rotation helped the trainees to get a hands-on experience to
understand the market
37. Spark - Train The Trainers
o 2002-purpose was to equip the managers to become successful coaches
o GIL, in association with a Delhi-based HR consultant, conducted several
workshops to mould the managers into coaches
38. E-Gyan
o 2002 -E-Gyan was the e-learning initiative
o Transform traditional training methods of workshops and sharpen the intellect of
the employees by self- learning initiatives
39. Structural changes within HR policies
o The HR divisions have suddenly become more buoyant & are looking forward to
the participation of new joinees
o Encouragement of more participation of new joinees in the decision making
process.
o ‘ Bedhadak bolo’
40.
o Switching from a family-run business to a professionally managed company, the
management has once again embarked on a new exercise to change the outlook of the
company.
o Godrej changed its existing logo and came out with a new logo.
o A completely new corporate campaign was designed to convey this new look to
the outside world.
41.
42. RESULT
o Awarded ‘The Best Employer 2007-08’ by global human resources management
and outsourcing company, Hewitt Associates.
o Following EVA implementation, operating performance has improved significantly
o All the businesses improved their performance
43. Change, Diversification & Development in ITC
44. Spree of Diversification OLD BUSINESS FOCUSED ACTIVITY NEW BUSINESS FOCUSED
ACTIVITY TOBACCO
o Farmer relationships
o Brand Building
o Marketing
o Distribution

FOODS
 o Manufacturing expertise
o Brand Building
o Sourcing ,Distribution
o Farmer relationships

HOSPITALITY

o People management
o Customer service
o Brand Building

INFOTECH

o Technology management
o People management
o Institutional marketing

TRADING

o International marketing
o Forex management
o Sourcing

RETAIL

o Brand Building
o Distribution ,Markets
o Customer service
o Sourcing

PAPER BOARD

o Institutional marketing
o Manufacturing expertise

INTERNATIONAL TRADING

o International markets
o Farmer relationships
o Technology management
o Forex management

PRINTING & PACKAGING

o Merchandizing
o Institutional marketing

GIFTS, GREETING CARDS AND ACCESSORIES

o Marketing
o Distribution
o Manufacturing expertise
o Customer service