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ICICI1

The document discusses change management at ICICI bank under CEO KV Kamath in the late 1990s. [1] Kamath initiated major organizational changes to transform ICICI into a market-driven financial powerhouse, including creating new business groups and changing reward systems. [2] However, Kamath's rapid changes initially led to confusion, unrest and lack of training among employees. [3] Over time, ICICI overcame these challenges through training programs, consultants, and a new appraisal system, resulting in improved employee morale and the company's increased success.

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953 views14 pages

ICICI1

The document discusses change management at ICICI bank under CEO KV Kamath in the late 1990s. [1] Kamath initiated major organizational changes to transform ICICI into a market-driven financial powerhouse, including creating new business groups and changing reward systems. [2] However, Kamath's rapid changes initially led to confusion, unrest and lack of training among employees. [3] Over time, ICICI overcame these challenges through training programs, consultants, and a new appraisal system, resulting in improved employee morale and the company's increased success.

Uploaded by

kaushal12
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Change

Manageme
nt @
What is Change??

Change is a structured approach


to transitioning individuals,
teams, and organizations from a
current state to desired future.
Factors for Change..
• Nature of the workforce

• Technology

• Economic Shocks

• Competition

• Social Trends

• World Politics
ICICI & KV Kamath
• Kamath rejoined India’s leading financial
services co. in 1996 as the CEO replacing
Narayan Vagul.

• Aimed at making ICICI a market driven co.

• Initiated a lot of Organizational changes


immediately to make ICICI a financial
powerhouse.

• Kamath identified ICICI’s limited expertise as


the biggest problem and decided to make ICICI
Changes by Kamath..
• Creation of infrastructure group (IIG), oil &
gas group (O&G), planning and treasury
department (PTD), structured project groups
(SPG).

• Creation of Client groups like major client


group (MCG), growth client group (GCG),
personal finance group.

• Change in employee reward system.

• ICICI-BoM Merger.
Consequences of Changes..
• Kamath’s ‘too fast too soon’
approach created a lot of confusion
and unrest among the employees.

• Employees found creation of groups


unacceptable.

• Lack of proper training and expertise


for various groups.
Consequences (contd.)
• No relationship between
performance and reward.

• BoM merger lead to huge cultural


differences in the organization.

• BoM employees feared regarding


their positions coming under
scrutiny.
Organization Culture

Culture is a system of shared


meaning held by members that
distinguishes the organization
from other organizations.
Characteristics of Culture
• Innovation and risk taking.

• Attention to detail.

• Outcome orientation.
Characteristics (contd.)
• People orientation.

• Team orientation.

• Aggressiveness

• Stability.
How employees learn
culture.
• Stories

• Rituals

• Material Symbols

• Language
Overcoming challenges &
ICICI’s culture
• ICICI organized training programmes
for existing employees.

• The company appointed consultants


to handle the change management
problems and work culture.

• A 360-degree appraisal system was


put in place.
(contd.)
• The HR issues were successfully
handled by ICICI, which resulted in
high morale of the employees.

• ICICI’s employee strength and


profitability kept on increasing over
the years.

• By the end of 2000, ICICI emerged as


one of the largest financial institution
of India.
Thank
You !!!

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