Standard Chartered Banks main problems and deterioration started after its acquisition of Union Bank. The issues responsible and even today are the technical difficulties involved in managing the change affecting employees, customers, structure and policies. All this chaos resulted in de-motivation, lost customers, financial loss and mismanagement. The project explains all this in detail.

STANDARD CHARTERED BANK

HISTORY

The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa founded in 1863 and the Chartered Bank of India, Australia and China, founded in 1853.

Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa.

The Chartered Bank

Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. The bank played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus Branches. This established a presence in the Gulf.

The Standard Bank

Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, South Africa, in January 1863. It expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices. In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone. In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales.

From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, the Middle East and Africa using its operations in the United Kingdom and North America to provide customers with a bridge between these markets. Secondly, it would focus on consumer, corporate and institutional banking and on the provision of treasury services - areas in which the Group had particular strength and expertise.

In the new millennium they acquired Grindlays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000.

Since 2005, they have achieved several milestones with a number of strategic alliances and acquisitions that will extend customer or geographic reach and broaden product range.

ORGANIZATION

Standard Chartered leading the way in Asia, Africa and the Middle East

Standard Chartered PLC is listed on both the London Stock Exchange and the Hong Kong Stock Exchange and is consistently ranked in the top 25 among FTSE-100 companies by market capitalization.

Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas.

As one of the world's most international banks, Standard Chartered employs 60,000 people, representing over 90 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market.

With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East.

Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award-winning solutions.

Trusted across its network for its standard of governance and corporate responsibility, Standard Chartered takes a long term view of the consequences of its actions to ensure that the Bank builds a sustainable business through social inclusion, environmental protection and good governance.

Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators.

Standard Chartered Bank (Pakistan) Limited - A locally embedded international bank.

Standard Chartered is the largest international Bank in Pakistan. The Bank has been operating in Pakistan for over 140 years when it first established its operations in 1863 in Karachi.

After the acquisition of Union Bank in September 2006, the new entity Standard Chartered Bank (Pakistan) Limited was incorporated in Pakistan on 30 December 2006 as a subsidiary of Standard Chartered PLC.

The bank has a network of over 162 branches in Pakistan. Standard Chartered employs a workforce of over 9,000 employees in its Pakistan operations.

In Their Own Words

SCBs PURPOSE

Listed on both the London Stock Exchange and the Hong Kong Stock Exchange, Standard Chartered PLC is consistently ranked in the top 25 FTSE 100 companies by market capitalisation.

By combining our global capabilities with deep local knowledge, we develop innovative products and services to meet the diverse and ever-changing needs of individual, corporate and institutional customers in some of the world's most exciting and dynamic markets.

Personal Banking

Through our global network of over 1,750 branches and outlets, we offer personal financial solutions to meet the needs of more than 14 million customers across Asia, Africa and the Middle East.

SME Banking

Our SME Banking division offers a wide range of products and services to help small and medium-sized enterprises manage the demands of a growing business.

Wholesale Banking

Headquartered in Singapore and London, with on-the-ground expertise that spans our global network, our Wholesale Banking division provides corporate and institutional clients with innovative solutions in trade finance, cash management, securities services, foreign exchange and risk management, capital raising, and corporate finance.

Islamic Banking

Standard Chartered Saadiq's dedicated Islamic Banking team provides comprehensive international banking services and a wide range of Shariah compliant financial products that are based on Islamic values.

Private Banking

Our Private Bank advisors and investment specialists provide customised solutions to meet the unique needs and aspirations of high net worth clients.

VISION

According to SCB: Our success is built on our ability to provide you with superior, differentiated financial solutions. This has propelled us to become market leaders in Pakistan. By continuously assessing your needs, we have been able to introduce innovative new products and channels.

What sets us apart from our competitors is the premium we place on service excellence. Our rigorous recruitment and training standards ensure that our staff is able to cater to your most complex financial requirements. Central to this service philosophy is the consultative approach we take with each customer. By getting to know you better, we can identify your needs and match them with tailor-made product and service solutions.

To put it simply, we are committed to making today's complex financial world easier for you.

VALUES

At Standard Chartered our success is built on teamwork, partnership and the diversity of our people.

At the heart of our values lie diversity and inclusion. They are a fundamental part of our culture, and constitute a long-term priority in our aim to become the world's best international bank.

Today we employ 75,000 people, representing 115 nationalities, and you'll find 60 nationalities among our 500 most senior leaders. We believe this diversity helps to fuel creativity and innovation, supporting the development of exciting new products and services for our customers worldwide.

THE CHANGE & ITS REASONS

The change occurred in the case of SCB was in the form of a merger with Union Bank. On 9 August 2006 Standard Chartered announced that it had acquired an 81% shareholding in the Union Bank of Pakistan in a deal ultimately worth $511 million. This deal represented the first acquisition by a foreign firm of a Pakistani bank and the merged bank, Standard Chartered Bank (Pakistan), is now Pakistan's sixth largest bank.

As SCB acquired Union Bank, conflicts arose after the change as is very natural and expected. The purpose of the merger was to increase the number of branches and customers. This requirement emerged as in the previous years State Bank of Pakistan had made a policy that all banks should have a minimum of 200 branches through out Pakistan. Therefore, in order to expand to the expected number of branches, SCB took this step as Union Bank was a competitor at par to SCB and it was fortunate for SCB that Union Bank could be bought. SCB acquired Union Bank but soon after SCB had to face many problems.

SCB also had the option of building and establishing their own branches but that would have required immense amount of time as well as cost not just in terms of establishing new branches and capturing new customers but also would have increased the costs of recruitment, training and development of new employees.

TYPE OF CHANGE

This change was planned by the top level managers and to implement this plan some steps were taken which included the involvement of HR department. The successful implementation could not be possible with out the involvement of HR, yet it became a complex change with its inclusion.

The change came in the structure i.e. the reporting line completely changed, span of control was transferred. Also the technological aspect changed as SCB had different procedures and methods from those of Union Bank. People did not completely changed but there was a change in their behaviors and attitudes.

CHANGE AGENTS & PROBLEM OWNERS

Change agents and problem owners were internal, people from within SCB, as they were the top level managers. The problem owners of this change created a clear and concise view of change environment; a methodology was also created to convey the purpose and need of the change. Problem owners also researched and understood the nature of the change and observed that this change was highly needed and without implementing the merger the companys very existence would be threatened. But for employees of SCB and Union Bank this change was not useful, and they regarded it as a nuisance as employees are still not happy after the change and they are de motivated.

CHANGE PROCESS

It is a three step process and both the banks applied it. The first step was to unfreeze the status quo that meant educating the employees about the change and making them familiar with the new reporting line, policies and culture.

Second step was to change into new state, which implied practically imposing the work structures and policies. Moreover, it meant changing the information system and orientation of new employees.

Lastly, to make this change permanent, refreezing, compensation and bonuses were given to employees for motivation and satisfaction.

CONSIDERATIONS FOR THE MANAGEMENT & EMPLOYEES

STRATEGIC

In case of SCB, buying Union Bank was a very wise decision as the Pakistani market was not being very well received, and to establish its own branches and recruiting trained employees was not an easy task. So the plan was to reduce competition as well as get trained employees and maximum number of branches; this merger was in line with the companys goals.

FINANCIAL

SCB management information system was entirely different from Union Bank but the initial cost for MIS and education of customers about SCB policies and products through marketing required finances. The initial setup cost was according to the average of organization.

ORGANIZATIONAL

There was not a definite need for training the existing employees or recruiting new workforce. The Union employees were well educated and trained. However there was a difference in culture and values of both companies and employees found it hard to adjust in the beginning.

INDUSTRIAL RELATIONS

SCB has the support of State Bank of Pakistan and at that time there was an immerging need for investment in different sectors of Pakistan so SCB was welcomed and is now one of the top banks in Pakistan.

WORK STRUCTURE & JOB DESIGN

With this merger the hierarchy and reporting line was changed and most of the people resigned due to their new unsatisfactory job descriptions and pay structures.

HUMAN RESOURCE

Union top level management did not show any resistance to the change, in fact they supported it whole heartedly. However the middle and low level management was unfamiliar to the policies as they were not communicated to them. But after much difficulty, they finally adapted to the new structures as they had the required skills and were competent enough to acclimatize to the new environment.

RESISTANCE TO CHANGE & ITS CONSEQUENCES

Well discuss now the difficulties SCB experienced in the beginning, what were its effects on sales and overall organizational environment and how did they cop up with them.

The resistance was experienced from the low and middle level management because of the following reasons:

MIS was changed completely and it required some training to get familiar with the new system.

Compensations were delayed during the first few years that affect their employees work efficiency.

Reporting line was changed which gave rise to personnel dissatisfaction.

The SCB culture was strict as compared to Unions flexible policies.

Existing employees were satisfied with their pay structures and this change didnt bring any difference in their mindset.

There was no involvement from the low and middle management in the process and policies were not clear to them.

There was a fear that whether if the new supervisors would be good to them and their rights and culture wouldnt be ignored.

Due to these resistances, SCB faced come consequences which are listed below:

Unsatisfied employees resigned from SCB.

50% of the employees switched to other banks.

It took SCB two years to reach the required level of growth.

MEASURING THE SUCCES FACTORS

Although SCB faced resistance in the beginning but it overcame those forces. The factors that helped it to prevail over the resistant forces and what steps they took are listed below:

SCB has a very strong brand name and that helped in its favor, where some old customers left it, targeting new clients was not difficult as some found SCB competent enough. Moreover, the product and services SCB was offering were secured and promised high returns to the customers.

Compensations and bonuses were given to the efficient employees.

Promotions and more authority were given to loyal employees.

Top level management was influential and persuasive leadership was eminent through out the process.

The objectives were realistic and clear and were accepted by most employees.

ON THE CHANGE SPECTRUM

The acquisition of Union Bank by Standard Chartered Bank is termed as a soft change. The objectives are inter related, dynamic forces that includes a complex and uncertain environment, time scale was not definite some of the employees are still adjusting in the new environment, as it was an international bank, however, the change was completely handled by the Pakistani management so their were internal as well as external interactions.

There was no single or definite problem but due to this change many problems arose; 50% of customers switched to other banks, employees de-motivation and slow growth rate were a few of them. The exact origin of the problem was difficult to define. There was no single solution or methodology as it was a people change and every individual had a different mindset and perception and thats why consensus of problem was not easy.

Below is the change spectrum: 90% of the interface was people, the system having its share of 10%. There is an increased amount of variability of change environment that is why complexity is high. Below, the figure shows the graphical representation of the change spectrum.

TROPICS

1. Time scale

2. Resources

3. Objectives

4. Perception

5. Interest

6. Control

7. Source

These are the key factors affecting a change situation; they are defined below:

Time Scale

State bank made a policy that within a year Standard Chartered Bank along with all the other banks should have a minimum number of 200 branches nationwide.

Resources

SCB is much stronger than other banks, it has money to invest in existing business or it also can invest in new branches. At that time SCB was the only bank who can acquire Union Bank, no other bank was so stable and resourceful who can make a bigger investment.

Objectives

The Objective was to survive in completive world and to survive with State Bank policies by increasing up to 200 branches and also to increase the market share to compete with other banks in future.

Perception

Perception for the change was positive from the management side but from the employees side it was negative. Management of both the banks was happy and adopting positive perception for this change but employees of both the banks were unhappy and showing negative perception for this change.

Interest

SCB management was highly interested for this change because by this change cost and time can be easily saved. If SCB will build its own new branches so firstly it will be time consuming, and it will be very costly first to build a branch then to hire people then to train them to work. This will be very costly and time consuming, so to minimize the cost and time management was deeply interested in acquisition.

Control

Top management of SCB was controlling this change, and this control was according to achieve much success in lesser time.

Source

As State Bank policy was to increase branches up to 200 in one year, this was a big challenge for SCB. As Union Bank was based on 70 to 80 branches so it was better to acquire it due to shortage of time.

Considerations of all the outputs indicate that the change being implemented in SCB fits best Case (a): Time Seale A with all other factors as B of the TROPICS test, as explained below.

CASE (a)

The State Bank of Pakistans change of standards to increase all banks branches to 200 in just about a year posed an emergency for Standard Chartered Bank for an immediate change in its operations. It was a time of crisis as it was a question of the banks survival. Opening up around 70-80 branches to expand the business was not at all an easy task. As explained earlier, SCB could have built up these branches but did not have the time. So instead it acquired Union Bank and along came its official setup, employees and customers. This acquisition did bring SCB to be the 6th largest bank; however, the after affects were not very pleasant. The employees were dissatisfied and de-motivated. The SCB employees were having a hard time helping out the new employees and the Union employees had issues of being demoted and adjustment in the new culture. Coming to the culture part, the SCB and Union Bank policies were very different from each other. The SCB culture was more formal and the policies much more rigid as compared to Union Bank, where the scenario was absolutely the opposite. Although SCB did try to stabilize the situation by encouraging cross training, offering proper training programs, promoting the worthy Union employees and also by offering bonuses and incentives, yet the initial damage done was too much to bear and many employees left. Even still SCB is struggling to normalize the situation, now by hiring new employees and revising their policies.

FORCE FIELD ANALYSIS

Force field analysis is the diagramming technique to define the favorable and resisting forces for the change, if the resisting forces are of greater power then the change will be very difficult to implement and in some cases it will be of no use and vice versa. It is an effective technique to analyze and research on what the nature of change would be and what will be the reaction of the affected people.

Favorable Forces:

Top level managers

Problem owner

State Bank Policy

Need of Market

Survival in competitive world

Expansion

Increase market share

Time saving

Less cost

Not to create a whole new setup

Established Branches plus workforce & customers

Resisting Forces:

Company Employees

Union Employees

Loosing of customers

De motivation of employees

Stable brand image

Control the system and conflicts

Two different cultures

Policies will change

Criteria will be tough

Understanding & Management of New Change

Favorable Forces

As in case of SCB they had to implement this change as it was the need of the hour and according to the policy of State Bank they had to increase the branches to 200. If they would have failed to do so not so it would have become impossible for the company to survive. The market is growing day by day and to increase the market share the company had to grow. To acquire an established bank was much easier than to expand company from scratch, as in acquisition a complete set of branches, trained employees and loyal customers could be achieved which would not have been possible if the company thought to build its own new branches. It saved a lot of time and minimized the cost.

Resisting Forces

This change was favorable for top level managers but employees are still not happy by the merger as they knew they would have had to face a work overload and some may even be transferred to different branches. Union Bank employees were de motivated by this step as the top level designations were to be taken by SCB employees and Union Bank employees would have to work under SCB managers in addition to working in a different culture with different polices. Polices of Union Bank were very flexible for the employees but the policies of SCB were very tough and rigid, which were the main reasons for employees to resist this change. In this case employees would have resigned if they were demoted to lower levels and/or because of the tough policies. That way the bank would had have to recruit many new employees and train them which would not have been suitable soon after acquisition. The other resisting force was of customers as some customers wouldnt want/like SCB so they would automatically switch their loyalty to some other bank and the image of SCB would be tarnished.

EVALUATION OF CHANGE: SUCCESS OR FAILURE?

The merger, termed as a change, when evaluated is found to be a bit of both; a success and a failure. It was a success in the sense that it fulfilled the primary requirement of reaching to 200 branches by utilizing minimal resources and time possible. The employees on both sides also understood the reason behind the change. The area where SCB failed was the efficient management of the change. The company did not perceive and anticipate the consequences that the merger brought prior to the event. Even after the merger took place the company did not find it necessary to develop concise methodologies to tackle the situation in a systematic way, instead SCB dealt with the problems in a very casual manner resulting in high turnover rates of employees in addition to lost customers. The employees did not like the change in policies and structure so could not adjust to the new environment, whereas the customers of Union were facing technical problems in their account and card holdings and therefore lost interest and so left. This resulted in work overload for the remaining employees and heavy loss on the revenue side.

To start with the merger of Standard Chartered Bank with Union Bank was not a bad idea and was done for all the right reasons, but since it wasnt organized and dealt with properly, thus it resulted in more of a failed implementation than a successful one.

THE FOUR TRIGGERS

Any organizational change deals with basically four factors:

Task: It represents the purpose of an organization.

Competencies: These represent the people of an organization.

Technology: These are the processes that accomplish the task.

Structure: It includes all the communications, operations, power and reporting systems of an organization which are involved and are affected by the change.

LEAVITT MODEL

The Leavitt Model indicates that all the four triggers (mentioned above), are interdependent and that a change in even one of them can set a chain reaction to take place, thus resulting in a change in all of the triggers.

In the case of Standard Chartered Bank, the task at hand was to expand. As a result it forced to bring in more competencies and train and develop the new and existing employees, thus the merger. This lead to a structural change for both SCB and Union Bank in the form of revised policies and change in corporate culture. Not just that, it also meant acquisition of physical assets (branches, offices, etc.) In order to accommodate its customers (new and old) in the most comfortable manner possible, it had to bring in technological changes to bring services on a single standard.

CHANGE & THE MANAGER

Change in itself is not a problem, but if it is not managed properly, it can create many other problems. This is exactly what happened at Standard Chartered Bank. The merger was the need of the hour and was a good decision on the part of the management but dues to its ineffective and ill-planned implementation, the consequences of which are still being suffered by the bank and everyone involved within. However, it just does not take one individual to manage change, it requires the entire body of managers and senior level officials to collaborate among themselves and pose a common front of facilitation, understanding and stabilizing of the situation.

COMPETENCY & CHANGE

MULTI-TASKING

The manager is entitled to a wide range of resources and knowledge because it has to go through multi tasking. SCB is still suffering from a lack of employees and many positions are lying vacant. These problems increase the duties and responsibilities of a manager and overburdens it, thus resulting in low performance and maybe even chaos to some extent. For example, a lack of staff has resulted in less retrieval from loan defaulters and managers have had to lower their targets, thus low performance and financial loss.

COMMUNICATION

It is crucial for managers to communicate vertically as well as horizontally along the hierarchy of the organization. Communication at SCB wasnt managed very badly, as employees did put there issues in front of their senior level officials and their agendas were addressed in the form of policy and structural change.

MOTIVATION

The managers at SCB were not very good at motivating their employees which is evident from the fact that a high turn over rate has been experienced in the last few years. However this cannot alone be accounted for lack of motivational skills, it has a lot to do with SCB policies and operations.

INFLUENCE & LEADERSHIP

The SCB managers certainly have influence over their employees and possess leadership qualities. Despite suffering from turnover, lost customers and financial crunch which has left many organizations crippled, SCB showed a profit of Rs. 1 million in the last year. It is definitely due to the dynamic leadership style that the managers of SCB have been able to steer their ship in the right direction.

PLANNING & CONTROLLING

Planning is something SCB had not done before or after the merger, but for financial conditions only. The company did not anticipate the structural and technical problems appropriately and did not plan for long term benefits.

WELL INFORMED

It is very necessary for every manager to be well informed about its company, policies, objectives, structure, culture and its competitors. Despite being well informed about the external and internal environment, SCB failed to achieve its internal goal and even though did make it through but still had to face a lot of difficulties.

CHANGE & HUMAN RESOURCE

STRUCTURE & ENVIRONMENT

The Standard Chartered Bank had a very formal corporate culture and very rigid policies. Union Bank was exactly the opposite. On merging the two companies problems arose when the employees and management of both the organizations could not work with each other in unity. Furthermore many employees of Union Bank were demoted as a result of the merger and thus became highly dissatisfied and did not want to work. As a result many employees left the new organization and the existing employees were overburdened. Although incentives were given in the form of bonuses, allowances and even promotions, yet the employees just left simply because they had had a sour experienced with the initial merger and did not wart to stay further on.

TECHNOLOGy

SCB did not judge accurately the technical problems at the time of the merger. The customers of Union Bank were not enjoying the same facilities as the customers of Standard Chartered Banks do. The Union Bank ATM cards did not work properly and the ones, which worked, had problems. The Card did not eject often, the transaction had done and it shows, but the customers got no money. The customers of Union Bank could not access their accounts easily in Standard Chartered Bank and vice versa. It was a failure on the managements part which could not make appropriate use of the technical systems of either company.

MANAGERIAL VALUE &TRINITY

Successful change requires adherence to three key managerial rules- the Holy Trinity. They are:

MAINTAINING FOCUS

It means to maintain focus regarding the purpose of the change. SCB was focused on the purpose of the change (expansion) but in the process did not realize the negative consequences and their potency. However, they did achieve their initial target.

ROLE AWARENESS

It is to classify managerial roles while upholding focus. Due to the merger, many senior employees of Union Bank had to work under managers of SCB who were junior to them. This resulted in resentment from the Union employees and thus de-motivated them. No one in particular was given the charge of tackling problems post merger and those problems which were dealt were done in a very casual manner.

MAINTAINING GOALS

It means change in a wider context of policy and strategy. Focus and role apply to the change at hand, goals relate to policy and strategy. SCB did change its policy with regard to employee complaints of being demoted. They put deserving Union employees in higher positions and gave compensations to the lower staff to make them stay. The new bank tried to facilitate all to develop a culture by themselves which would be acceptable to all

CULTURAL WEB & ITS EFFECTS ON THE MERGER

Culture of an organization is not the only factor that affects a company but the external culture, such as national culture and values also affect an organization to a great extent. It was an exterior factor (SBP) that forced SCB to bring about a change in the form of a merger. The internal changes thereafter and their consequences took place in an internal environment but were influenced by two external cultures: the national culture and the culture of Union Bank.

As explained above, the culture of Union Bank was very informal and casual. This became a problem at the time of the merger, as the Union employees were not accustomed to such hard and fast rules and tough policies. SCBs culture of rigid policies made it overlook the disgruntlement of the new comers until too late. They modified their hierarchy and executive positions through consensus, yet many employees of both organizations left SCB.

Pakistan has a national culture played its toll on the merger situation. At the time and even still the whole world is still suffering from a financial crunch and people want to secure their future. The general perception of the Pakistani public is that they feel threatened by even the slightest amount of uncertainty and thus shift their loyalties. Same is the case of SCB where customers and employees alike left the organization in majority and did not wait for the change to settle in. as a result the SCB employees were over loaded with work, exhausted and gave low performance. On the other hand the company suffered from financial loss and low stock prices.

COMMUNICATION

There was certainly a communication gap between the companies. Had it not been, SCB would have been able to bring Union Banks technical systems at par with its own and also settle the new employees comfortably and rightly after the merger. There was lack of communication even post merger because the management was not able to communicate correctly to its employees the benefits the company was offering to make them stay and make their future secure once the change had been rightly implemented. The companies, however, did understand the initial decision of the merger but were not able to understand the differences between the two organizations and their systems and the senior management was all thumbs up. Neither did the tangible assets settle very well nor did the intangibles. Although with time the company has improved a lot and proved itself yet it could have reached new heights had the change been well planned.

RECOMMENDATIONS

The suggestions that we have in mind for SCB are for them to go through a proper step by step planning process. Making use of models and scientific techniques will help them get a better understanding of the core problem and will also enable SCB to create better and effective solutions to resolve the issues instead of operating in the casual and informal manner. Since majority difficulties faced at SCB after the merger were because of lack of systematic approach, it is now necessary for them to put their new policies in a structured manner and try their best to retain employees. For this purpose they will have to hire new staff to release the load on the existing employees. In addition to this, they will also have to start new training and development programs. An organization with happy and satisfied employees is the only thing that can create value for SCB. Furthermore, they will also have to devise new strategies of doing business and handling operations. They will have to regain the market share SCB had lost right after the merger because of the technical difficulties.

CONCLUSION

Even in this era of inflation, Standard Chartered Bank has shown considerable performance. The merger with Union Bank was a sensible decision on the senior managements part only that it was poorly implemented. The repercussions of this ill-planned decision are still being faced by SCB. The above analysis provides a deep insight on how the change was managed and how it should have been managed. The company did not feel it necessary to develop methodologies to facilitate to correct their mistakes and the steps that they did take were not put in black and white or even evaluated. None-the-less the company has survived fulfilled its goal of 200 branches and is the 6th largest bank in Pakistan and still growing.