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HRM - Essay Example

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Case Study – Unibank Class University Date The case of Unibank decision’s to enter the telephone banking sector by switching a significant proportion of its general account management and enquiry activity to a dedicated call centre, named UniCall that resulted in the closure of many smaller, unprofitable branches and the consequent need for redundancies is a normal business phenomenon where business organizations have to transform its structure to adapt to the new realities of the industry…
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Download file to see previous pages Strategy and HR In the case of introducing UniCall, Unibank was headed towards the right direction strategically. New entrants under established brands with innovative service are already in the market bringing with them the convenience of banking. If Unibank will not introduce Unicall, it will eventually fade into obsolescence that will undermine the bank’s existence. In short, Unicall was a business imperative to keep the business relevant in the market. What the HR was lacking is preparation for change or Change Management when it restructured itself in introducing Unicall. Change management Change is inevitable especially in a business setting. Factors like the external and internal environment precipitates the need for change and the organization has to respond to remain viable and competitive as a business entity. According to Murthy in his book Change Management, change is “to make or become different, give or begin to have a different form, dissatisfaction with old and belief in the new” (2007: 7). There are two factors that bring about change, the external and internal environment. ...
But implementing and managing change is not easy. In the case of Unicall just like in any other oganisation, people who are accustomed to their old ways are often hesitant to change. In fact, the biggest obstacle is change is often the internal factor that comprises 81 % of the time compared to the external factors that is only 19% of the time (Murthy, 2007: 19). The labour union and employees may have resented the closing of many small local branches but the biggest impact of this change was in the performance of Unicall employees which was beset by many problems due to the new work arrangement that the spin off has brought. Such, people are a major focus in implementing change management which Unibank should have prepared before fully introducing Unicall. People are the major focus of organizational change because “it is the people who will ultimately cause the change to be a success or a failure. The implications of change on individuals are important without which we can never really hope to manage large scale change effectively” (Murthy, 2007: 23). Resourcing (HR planning; recruitment; selection and flexibility) Unibank did the right thing in HR planning when it attempted to redeploy existing employees when possible, but also needed to recruit new staff to work in the national call centre. It was also mindful of the relatively high unemployment rates in the West Midlands that UniBank decided to locate UniCall just outside Birmingham. Unibank was conscious enough to realize that employees will be dislocated with the closure of many small local branches that it attempted to redeploy them to avoid economic dislocation among its ...Download file to see next pagesRead More
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