Hrm Case

Introduction

The main purpose of this project is to discuss the facing problems as well as possible solutions for the National Bank of Oustia.

Since the above mentioned bank is currently in a situation which demands for some changes that will increase its overall efficiency and effectiveness of doing business, I, as an externally engaged consultant in the following pages of this paper will try to provide some answers to their concrete problems.

The key areas that are being considered for taking changing actions are:

* NBs' present structure which is designed in a non proper way,

* Its culture and employees' behavior and

* The NBs' general performance management

Case Overview

The arguing subject of this specific case study is the challenging situation of National Bank of Oustia. NB is a retail bank with headquarter stated in Capia and 552 branches operating over the country. The bank has a staff of 8654 people.

It is stated that this particular bank is facing several problems due to the fact it is first of all inadequately structured with a poorly developed span of control. Even though the structure itself is one of the main sources of troubles for NB, there are also mentioned some others such as their current performance management program as well as the personal management style of one of their crucial managers- the Sales Director Stanislav Dimitrov.

Provoked by their own unsuccessful results, the CEO Gala Miteva decided to consider some proper changes and to apply them quickly within a period of 6-12 months. Her main objective is to increase the overall banks' efficiency and effectiveness.

Analysis and recommendations

The impression I got after I faced the NB case was that this particular bank is caught in a situation where its total performing results are being below their own expectations and goals. From what is being presented I can easily find that the reasons for this situation are first of all their organizational structure that does not support its functions in a best way (Appendix, figure 1). There are some functions and departments which seem to be positioned in a kind of confusing manner- impression that could be got both from an external and internal observer. Then, there is a problem with one of their managers' authority, delegation and control. NBs' Sales Director, which is being responsible for both sales and marketing department, even though is respected from his subordinates and holds his position proudly, he doesn't play his role and responsibilities in a way that will enhance the overall wellbeing of the company. Besides that, the banks' performance appraisal is also a subject of critics since a lot of things are not being properly measured and there is no any realistic feedback within it.

Although it is hard without getting actually involved in their everyday doing of business to find out some specific trouble sources, I will try to present my own recommendations for solving these, above mentioned, main problems.

Organizational structure

It is a functionally structured bank, but without appropriate design and alignment of positions. There is a general insurance consultant unit placed within the HR department, thus creating a dual responsibility problem or a situation where HR director is supposed to report to the same line director- Sales Director. On the other hand we have a General Insurance Director positioned as a subordinate of, again their Sales Director. My recommendation in this case would be to separate this function as an own General Insurance department with GI consultants taking part of it. In that way this section of the bank can specialize and develop more deeply and their own performance and effort will rise since in the eyes of the staff new, higher career path are opened.

Another functional separation can take part also. I would strongly recommend that the marketing and sales department should be divided. In practice it is shown that these two are working much better on they own, however still collaborating with each other. Here once again we are opening the paths for career development and by that the motivation and performance of the concerned staff.

When looking at the sales department, I would advice a change first of the executives' position name and role. From being Sales Director, it can change into a National Sales Director, the one that will be responsible for all areas sales directors. This course of action will enlarge the span of control of the Sales Director. It is also how the general operating over the country will be more divided by leaving space for more individualistic and also more competitive performing of the branches which will in the end result in better overall performance of the bank. (Appendix, figure 2)

The suggested structural intervention will be accompanied by the necessary organizing tasks, jobs and roles as the activities to collect and configure resources in order to implement plans in a highly effective and efficient fashion. This will include:

* Task and Job Analysis

* Job Description

* Employee Performance Planning (the overall process ensures ongoing, effective organizing)

* Time Management

Due to the fact there have been several departments separated, new managing positions will be opened. In order to fulfill these jobs properly, new recruitment program will begin. The advantage for getting these positions will be given to current staff since they already are familiar with the functions, but if there are not any ones who could do the job by practicing good and effective managing skills or they are simply not willing to take over the responsibilities, new staff will be included.

Despite these changes to the organizational structure are minor and their outcomes would be mostly likely and desired, still we must have in mind that some sort of resistance will occur. Shift of the staff, changed relationships, responsibilities and delegations would certainly be the cores for different discussions.

In order to prevent and overcome the potential resistance, I would advice all of these modifications to be done openly by promoting and clearly discussing them with the whole staff. From the very beginning it must be clarified:

* How