Organizational Dynamics

Change Management at ICICI

[Case Study]

Submitted to-
Dr. Nilanjan Sengupta

Submitted by-
Section C, Group 1

Abhilash S Aradhya [17101]

Ananya Bose [17102]
Ankita Pawar [17103]
Athul Kashyap T [17104]
Basappa Sagar K S [17105]
Bhavana [17106]
Binil Raj [17107]
Darshan Raj [17108]

Batch: 2017-19
Date: 05/03/2018
Q1. Do you think that the changes brought about by Mr. Kamath was needed? If so,
explain why it was needed and also state how effectively they were brought about in the
company's context.

The changes that were implemented by Kamath were very much necessary, which are listed as
below:
1. Kamath introduced massive changes in the Organizational structure and the emphasis
of the organization changed – from a development bank more to that of a market driven
financial conglomerate.
a. Necessity: To introduce flexibility in the organization to increase its ability
to respond to market changes.
b. Efficacy: ICICI was reported to be one of the few Indian companies known
for its quick responsiveness to the changing circumstances. While its
development bank counterpart IDBI was reportedly not doing very well in
late 2001, ICICI had major plans of expanding on the anvil.
2. In 1992 ICICI tied up with JP morgan of the US.
a. Necessity: To form an investment banking company, ICICI securities limited
b. Efficacy: ICICI was able to diversify into different forms of asset financing
(leasing, asset credit, deferred credit) as well as financing for non project
activities.
3. ICICI reconstructed its business based on the recommendations of Mc Kinsey & Co in
1998.
a. Necessity: It had the vision of becoming a universal bank.
b. Efficacy: It had much better structured business that allowed it to take
advantage of being a Universal bank.
4. The change program was initiated within the organization, the first move being the
creation of the infrastructure group (IIG), Oil & gas(O&G), Planning and treasury
department(PTD) and Structured products group(SPG).
a. Necessity: The Lending practices were quite different for all of these types of
groups.
b. Efficacy: More effective handling of lending practices specifically for these
groups, but internally the strategy was not effective because the employees who
were not part of these groups felt their importance within the organization
diminished.
 5. ICICI setup 3 new departments Major Client Group(MCG), Growth Client
Group(GCG), Personal Finance Group(PFG).
a. Necessity: ICICI felt that they needed to focus its operations much more sharply
around its customers. And there was a need to reduce the turnaround time.
b. Efficacy: Though the customers seemed to be happy about this new
arrangement, people within the organization found it unacceptable.

Q2. What would your group suggest that the company could have done to bring down the
resistance to change by employees after ICICI-BoM merger. Give reasons to support your
views.

The company should have done the following to bring down the resistance to change by
employees after ICICI-BoM merger

 Participation
– Participation in the decision process, i.e. allow all of them to collectively
participate in decision making processes which lessens the resistance
 Education and Communication
– Show the employees the effect and the logic behind the change and employees
would then become driving force.
 Building Support and Commitment
– In addition, we can build support and create commitment by Counseling, therapy,
or new-skills training
 Implementing Change Fairly
– By seeing to it that the change made should be consistent and procedurally fair
 Manipulation and Cooptation
– “Spinning” the message to gain cooperation
 Selecting people who accept change
– While recruiting see to it that they hire people who enjoy change in the first place
 Coercion