Recent changes have reformed the banking sector worldwide. The economic, political and social transformations have obliged several banks all over the world to emphasize on retail banking. Commercial Bank answers to those challenges by implementing a change program called PEGASUS. Pegasus has under its umbrella five main programs: 1) CRM implementation, 2) Business Process Reengineering, 3) Development of alternative distribution channels such as e-banking, 4) New roles, new work and managerial practices and finally 5) Corporate identity and Culture change. In this context many important change models are included in this analysis, in order to rationalize the change efforts of Commercial Bank. Till now, the implementation of PEGASUS is more than satisfactory in terms of change processes. But the same does not stand for the culture. Therefore, the future change initiatives of Commercial Bank should focus more on "soft" issues and less on processes. The adaptation of a Performance Management and Career Planning Program is crucial for the final success of PEGASUS. In the same sense, the implementation of the intranet should be completed and the rewards system should be aligned with the change objectives.
The dilemma faced by many businesses today is managing strategic change initiatives efficiently and effectively. Arguably, managing changes simultaneously poses great challenges to organisational success in terms of the desired change. The purpose of this paper is to discuss the driving and resisting forces that occurred during a transitional programme in a Malaysian bank. Issues in the implementation process include change initiatives and the challenges that were faced. Qualitative data indicated that while the implementation process and efforts were genuine, they were fraught with various technical and HR problems, and it was found that change efforts lacked integration and attention to human issues. Change efforts mainly focused on business and cost driven initiatives. This observation suggests that organisational leaders should give careful attention to how each activity can be designed and well integrated when planning and implementing organisational change. The paper discusses the implications of these finding on HR policies and practices in financial institutions. Change is inevitable and ubiquitous in a rapidly expanding world. These landscapes of many external forces make it most difficult for organisational survival and prosperity. Indeed, the major dilemma faced by businesses today is managing strategic change initiatives efficiently and effectively (Graetz, Rimmer, Lawrence & Smith 2002). And according to Ulrich (1997), a primary difference between organisations that succeed and those that fail is the ability to respond to the pace of change. In other words, organisations need to monitor and scan their external environments, anticipate, and adapt timely to continual change (Marquardt 1996). A salient contention by Pettigrew, Woodman and Cameron (2001), is the relative lateness of anticipation and adaptation ability of firms, and their inability to recognise the change in bases of competition that may have changed in their business environment can be a key attribute explaining a loss of competitive performance. In addition to the inability to recognise change, it is no longer sufficient to adjust one change to compensate another. Arguably, organisations will have to handle all the challenges of change simultaneously (Brown & Harvey 2006). These challenges of changes, at the organisational level, have elevated the importance of managing change and in particular, the managing of employees’ change experiences. This is because massive change has an impact on all facets of organisational members as it can create new dimensions of greater uncertainty (Brown & Harvey 2006). Hence, it is very important to ensure good coordination, strong leadership, and clear communication while managing various...
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