Pan Asia Bank is one of the leading commercial bank in Sri Lanka. But after two years of it’s started, in year 1997 bank face serious financial and management issues. Due to this, bank went to collapse and “Valuable One” PLC acquires the bank and they did a massive change in order to overcome financial and management difficulties.
In this Assignment I discuss how the change management happened in PABC and how it effects to organization’s design, culture, individuals and team working and how we can explain the change by theories and how to improve it towards positive.
List of Abbreviations
* PABC -Pan Asia Bank Cooperation
* PR - Personal Relations
* CFO - ...view middle of the document...
1 John P Kotter's 'eight steps to successful change' 12
In order to satisfy the requirement of People and Organizations course unit in the UWIC MBA program, we are require to critically examine the management practices which regards to the organizational change process, including cultural change, organizational design and individual and team working.
We have selected Pan Asia Banking Corporation (PABC) to study the management practices and changes that they have been used and how it’s affected to the organizations’ design, culture and group and team behavior.
1.1 Company Profile
Pan Asia Bank was established in 1995 as a Public Limited Liability (PLC) company and it has been re-registered as a licensed commercial bank and listed in Colombo Stock Exchange in year 2008.
It is now one of the most outstanding banks in Sri Lanka, which is focused on medium sized corporate and consumers.
As a bank which is intended to meet all their customer’s financial service needs, they expanded their branch network up to 70 branches at the end of 2011, which covers most of the capitals in Sri Lanka. The bank is strengthened by 1076 human capital and now being able to open nine branches to supply their services in all 365 days.
1.2 Vision and Mission
Figure 1 Vision & Mission
1.3 Organizational Structure
Figure 2 Organizational Structure
2.0 The change process
2.1 Why PABC required a change management?
After two years of PABC’s start, bank faced several financial problems and as a result of this, bank didn’t show any significant improvement like other banks did in the period. Due to this low growth, bank went to collapse in late 2007, after 12 years of it’s start. To stop the collapse, Central Bank of Sri Lanka decided to change the management of the PABC to secure its customers and employees.
2.2 Change Management
The ultimate goal was the PABC’s change management processes were to improve bank rating by improving profitability and efficiency. To achieve these goals, bank needed to attract more customers for deposits and lending and improve the bank’s operational performance.
Year 2008 was the turning point of the Pan Asia Bank. The bank changed the name, registered as a licensed commercial bank, listed in the Colombo Stock Exchange, appointed a new Board of Directors and changed all the top management. This was a rebirth of the bank. The entire organization was changed.
PABC appointed Mr.Zulfiqar Zavahir the former NTB CEO as a Board Consultant Mr. Zavahir introduced new management practices to the organization which help to change the banks’ structure, culture, and individual and team behavior. Lot of new appointments ware made including DGM, Head of Leasing, and Head of Credit and it helped the bank to get fresh ideas for the future.
3.0 Management practices with regards to organizational change process
Along with the change process, PABC re-segmented its...