Case Study

Employee Participation at Bank Of Baroda

Submitted To:
Prof. Meenakshi Malhotra Chairperson UBS, PU.

Submitted By:
Sumit Nanda Tanvir Singh Vandana Bansal Vimal Bakshi Yasmin Sandhu MBA General (B) UBS, PU.

Introduction to the Case.

BOB is ranked among first 4 nationalized banks in branch network, deposits, advances & profits Follows bank innovation and advancement Stresses upon employee development, promotion, overseas postings & unions participation in business planning Has 14 zones in branch network, business size and profits MP Zone (which is the smallest zone) has 84 branches spread across 2 regions : Bhopal and Raipur

Introduction Contd.

Bank had 2 workmen unions in MP Zone i.e. Union 1: BOB Employees Union, MP Union 2: BOB Employees Association, MP For officers: All India BOB Officers Association In August, RBI fixed deadlines for all banks for clearing housekeeping arrears & prescribed grave penalties (like holding CMD responsible) for noncompliance. BOB being in a serious housekeeping situation advised zones to hold meetings with unions/associations regularly so as to clear the arrears as soon as possible.

Introduction Contd.

Consequently a joint meeting was held and it was decided that if unions/associations collaborated in housekeeping, they could as well participate in business development. Zonal Manager said: All the employees had responsibility for improving the banks image & reputation as they all were going to apply for banks equity shares. A desire for a zero level of pendency in IBTA (Inter Branch Transaction of Accounts) was realized .

Introduction Contd.

As a resultant:
The management was able to initiate a new relationship concept for customers. The staff was encouraged towards greater care for customers and business. Inter-union rivalry began to wane and the 2 unions started agreeing with each other. There was a remarkable all round business growth in MP Zone (like deposits & business per employee rose and credit restrictions & NPAs decreased).

Introduction Contd.

However during these meetings: Unions/associations started raising issues about employees grievances. Said if these were not solved in the meetings, the unions representatives would walk out from the meetings. Mutual criticism and finger pointing became the order of the day & the initial motive of the meetings was lost.

Hence, this issue became so prominent that the MPs

Zonal Manger started wondering if he has done the right thing ???????????