Major Organizational Development Interventions used in Banking…

Implementation of Organization Development (OD) in an organization is done with a set of structured or planned activities to adopt across all departments, groups and individuals.

The overall purpose of these interventions is to increase the effectiveness and efficiency of the organization.

Seven considerations in choosing OD Interventions to implement in the Indian Banking sector in recent years:

Leadership Change:

World economies are passing through tough times as global slowdown in prominent industries and across every part of the world. 

The significant impact of global slowdown is on the Banking sector at large. 

Similarly, the Indian Banking Industry is also passing through tough times, wherein the NPA’sNPA’s are increasing.

Banks are facing a challenge in reporting NPA’s and other side having the pressure to post profits, leading to wrong or under-reporting.

With interventions from Reserve Bank of India (RBI), Banks have undergone Leadership change including all Senior level positions like MD, CEO, senior Directors and Group Heads, influencing Bank’s Business and Decision Making.

Strategic Change:

Strategic change is necessary to trigger significant disruptions in the organization, such as technology and regulatory reform. 

As the Banking and Finance sector is passing through crucial time, and Reserve Bank in recent past has awarded Licences to NBFC’s to start Payment Bank / Fin-tech Companies. 

With the entry of these new Banks, Payment Banks and Fin-tech companies, entire market ergonomics are changing, and competition is getting immense in the payment solutions business. 

Therefore Banks are changing their strategies and coming up with new solutions to be competitive in the marketplace.

Technological Change:

With the changing world, consumer demands are changing, and they need faster and timely services with the ease of their fingertip.

Therefore Banks are spending more and deploying technology to generate insights into customer behaviour patterns and preferences. 

New ATMs are getting installed, which are faster, easy to operate and collect cash as well.

Net Banking, Corporate Banking, Mobile Banking, Smart Cards are getting more advanced and safe to use.

Training Interventions:

As part of People development, organizations are continuously working on Training and Development activities and investing heavily on the same. 

These training are related to Product, Process, Regulatory, Compliance, Anti-Money Laundering, Sales, Strategy and Skills Development. 

These are organized for organizations at all levels of hierarchy depending upon the nature of the job. 

This help the organization in fewer errors and more effectiveness which leads to better profitability and results.

Product and Process Change:

With the change in demand and requirement of the customer, environment and competition due to new entrants in the markets:

New Small Banks, Payments Banks and Fin-tech Companies, we have witnessed, many changes and betterment in existing products and processes.

The overall objective of product development and process betterment is to be more cost-efficient, faster, better as compared to competition as to cater to the changing demand.

Customer is getting the best of the products and services at ease and lower cost.

Organizational Cultural Change:

As Banking is passing through a vast transition, the staff is getting more empathetic, polite and service-oriented in providing better services. 

On the other side, Banks are getting more digital and more works are getting passed to digital platforms, comparing to earlier times.

Human Resource Development (HRD) Interventions:

With the changes in the Banking sector,

The role of HR is getting more critical, and are coming up with better solutions to engage with people in organizations. 

They are coming up with better models and methods for Goal Setting of employees

, Appraisal and Reward systems, Carrier planning and development, employee engagement, Employee wellness and more.

Seven Successful Organizational Development Interventions in Banking…

As part of the Organization, OD Interventions stated above directly or indirectly create a positive impact within the organization.

These positive outcomes reported below:

  • Leadership change happened in many Banks recently, helping the organizations in cleaning their books and started their another innings with a better and clean image.
  • Strategic change and improvement helped Banking to be more advanced, competitive, faster and customer-oriented.
  • The technological changes helped the organizations improve on their efficiencies and advancement, which further contributed to lower the cost and increase productivity and ease.
  • Training’s helped the employees in enhancing their skills, which further leads to better productivity, profitability and efficiencies.
  • Product and Process change leads to better and advanced product and services.
  • Organizational cultural change leads to better coordination and cooperation, which further leads to betterment as a whole.
  • HRD Interventions leads to motivated employees with better work-life balance.

Seven Unsuccessful Organizational Development Interventions in Banking…

On one side below, interventions became advantageous to the organization. 

On the other hand, they have a negative impact also. 

The Negative outcome of the above responses stated below is:

  • Leadership change initially leads to massive negativity in the entire organization, which further leads to uncertainties at all levels.
  • Strategic change at initial level came with massive resistance as people saw it as a threat to their jobs and which leads to negative response from organizations and employees.
  • Technological changes were a significant threat to the jobs and organizations initially for its cost, as upgrading it involves huge cost.
  • Training Interventions, when launched, faced massive resistance from all supervisors; when their subordinate got nominated as they free the employee for sessions for days impacting the business and operations.
  • Product and Process change needs vast research and development cost involved and hiring of learning resources, and both cost high. Therefore most banks are following copy and paste strategy in most product and process designing.
  • Organizational cultural change faced tremendous resistance as people following specific rules and regulations are not willing to change to new rules and regulations instantly.

HRD Interventions initially faced massive resistance to the following:

Tools and techniques used in these interventions are bit complicated and new, which most people are resisting to follow instantly.

Conclusion:

OD Interventions are Effective Tool in Business Development, and they can be both positive and negative at the same time.

It’s up to the organizations how effectively and positively they implement the OD Interventions and take the best advantage out of them.

About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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