OB Union Bank

Organisational Culture at Union Bank
Every company has its own unique personality just like people do. The unique personality of
an organisation is referred to as its culture. In groups of people who work together,
organisational culture is an invisible but powerful source that influences the behaviour of the
members of that group. Organisational culture is a system of shared values, assumptions
and beliefs which governs how people behave in organisations. These shared values have
a strong influence on the people in the organisation and dictate how they dress, act and
perform their jobs. Every organisation develops and maintains a unique culture which
provides guidelines and boundaries for the members of the organisation.
Organisational culture at this particular branch of Union Bank is slightly different as it
situated inside the premises of an educational institution. Unlike commercial banks which
deal with all kind of people and institutions, their main customers should be students, faculty
and other staff within IIT like their major competition: SBI which is also within campus.
Other customers would include the nearby population surrounding the IIT campus.
State Bank of India and Union Bank of India are similar organisations in a similar setting but
despite this, there is a tremendous amount of contrast in their functioning. While SBI attracts
the lion share of the students- whether they are taking loans or just opening normal accounts,
UBI deals with mostly staff and faculty members of the institute.
There are several reasons for a students preference of SBI over UBI that emerged when we
delved deeper into the issue. Firstly the low interest rates offered by SBI for student loans
were one of the major incentives to choose SBI. Secondly, the tight integration of services
provided by SBI in the different payment methods employed by the institute like payment of
mess fees using iCollect, etc.. gave it an added advantage. Thirdly, the fact that SBI is very
deep rooted all over India with around 15000 branches as compared to the 4000 that Union
Bank has maybe another reason why customers prefer SBI over UBI.
But there are other factors that give UBI an edge over SBI. It is preferred by staff and faculty
as the crowded nature of SBI and its focus on student oriented banking makes it difficult to
conduct normal banking operations. Even simple tasks are cumbersome due to the ever
present rush in SBI. So they prefer UBI where the time taken for these tasks is much less. SBI
also uses technology to make their banking processes more efficient like using a touch screen
terminal to issue coupons and automatically queuing the operations to different counters. This
is a boon for the young tech savvy students and makes things easier for them. But the very
same thing is a deterrent for the old and the illiterate. So they prefer UBI where the process is
more traditional.
Characteristics of the Organisation

There are many characteristics that distinguish this particular branch from other UBI banches
as well as from its neighbouring competitor- SBI.
First of all, the employees were not encouraged to be innovative or take risks. It is during
admissions that there is a huge inflow of potential customers. SBI takes advantage of this
situation and advertises itself very well and gets all the students to open an account in their
branch. Even in the case of loans, UBI do not encourage students to take educational loans
from their bank.
Management has a very easy going attitude and innovation in the area of advertising is not of
top priority. Hence employees of the branch are also discouraged from taking an aggressive
stance. Thus the employees are not motivated to work to their full capacity and thus the
working environment lacks competition. This can be clearly seen by the facts that Union
Bank does not take any steps to attract customers even though a huge chunk of the populace
are consumed by their competitor who puts a lot of effort into attracting the student
population as well as providing them with loans.
In the words of Richard Perrin, Organizational culture is the sum of values and rituals which
serve as glue to integrate the members of the organization.. But in case of this institution,
The culture does not glue the organization together, rather it scatters it. The overbearing
nature of the Branch Manager creates a very hostile environment for the employees. The
employees are not given an opportunity to voice their concerns or suggest measures on
improving the customer base.
Norms within
Organizational norms are acceptable standard of behaviour within an organisation. They are
informal rules that provide order to the organisational activities as well as influence employee
behaviour. Such norms exist in Union Bank as well. Employees stay well after office hours to
serve customers upto 6-7 pm sometimes. Another norm that is passed on to the new
employees is that they should not encourage student loans and take up only housing or car
loans as they feel the former is more risky.
Structure of the Organisation
CSR Activities
The branch takes a very accommodative approach about social responsibilities. They just do
the bare minimum to use the organizational resources to promote the interests of the society.
About Union Bank

History
Union Bank of India was established on Nov 11, 1919 and is head quartered in Mumbai. The
registered Office of the Bank was inaugurated by Mahatma Gandhi, father of the Nation in
the year 1921. Along with 13 other banks, Union Bank of India was nationalized in the year
1969 in the first phase. Union Bank has the distinction of making profits consistently for the
last 89 years since inception.
Business Operations
Union Bank has huge and varied customer base approximating to 24 millions. Bank is
targeting customers from all demographic and economic profiles and introducing products
and services to meet their needs. The Bank operates in all the areas including retail lending,
personal banking, corporate banking, international banking and investments & treasury.
Banks lending also caters to the rural and semi urban centers, financing Agriculture and
allied activities, rural artisans, micro & medium enterprises in these areas. Bank has opened
198 Village Knowledge Centres to provide information to the local community on better
agriculture practices, commodities, marketing facilities and financial education. Bank also
offers third party products like life and general insurance, mutual funds, on-line trading,
wealth management services through tie- up with other FIs.
Bank places customer at the centre of all its operations and has transformed the process,
people and organizational structure. Bank has initiated a large scale transformation process
named Nav Nirman to address two critical aspects of growth-instilling the drive of sales &
marketing across bank staff and reconfiguration of banks business model. The
transformation process focuses on four key initiatives
a) Retail Asset ( marketing & processing)
b) SME marketing & processing
c) Branch sales and services( improving the customer experience in the branch)
d) Centralisation of key processes
Bank has brought all its branches under Core banking solutions .Union Bank is the first large
bank to achieve 100% CBS roll out. Bank has taken lead to establish alternate delivery
channels in the form of ATMs, internet banking, phone banking and Mobile Banking. Bank
has introduced many technology based services like RTGS, online NEFT free of cost, on line
application for products and services and online redressal of grievances.
Network and distribution
The business is grouped under various Verticals and well defined Business Strategic Units
were formed, which will drive the growth. Bank has a network of more than 2500 service
outlets which includes specialized branches for MSME (SME SARALS), corporate credit,
Union Loan points for Retail Products etc. Bank has representative offices in Abu Dhabi and
Shanghai and is in the process of opening its office in Sydney, Australia. A full fledged
overseas branch was opened in Hong Kong. To serve the varied banking needs of the NRIs,
Bank has placed number of Marketing Officials at various centers in UAE and Shanghai.
Bank has plans to deploy more number of Marketing Officials at many other places. Bank
plans to open 500 new branches in the next six months for which it has received licences
from RBI. The bank will accelerate its presence in the global market space at key locations in
the next two years as part of the Vision strategy. Diversification Union Bank in partnership
with Bank of India and Dai-Ichi of Japan has formed a subsidiary for distribution of Life
insurance products, which has started selling the products. Bank has signed an agreement
with Belgian KBC group for setting up a joint venture AMC in India. Union Bank has signed
MoU with NSIC for training and setting up Incubation cum Training centers to promote first
generation entrepreneurs in MSME segment. Bank has entered into MoU with NCMSL for
financing against warehouse receipts for agri. commodities kept at NCMSL warehouses.
Bank has announced opening 100 specialised Business Banking branches across the country
to focus exclusively on MSME sector with turn around time of 2 weeks for sanction of
proposals. Bank has launched mobile banking facility Umobile which facilitates limited
transactions and other services through mobile phones.
The brand and the promises
Bank has adopted a simple new logo for universal appeal and to aid top of mind recall. The
new logo symbolizes the qualities and values we stand for- Blue standing for the commitment
and the Red for the passion the Bank brings to the work. Union bank has promised 4 key
deliverables to customers based on the strength built in
1) Value for money
2) Committed turnaround time for delivery of products and services

3) Choice of banking channels for customers and
4) Transparency in product offerings and prices
Union Bank promises that YOUR DREAMS ARE NOT YOURS ALONE ,there is a bank
that is ready to fulfill the dreams of every one and thus ensuring that they remain GOOD
PEOPLE TO BANK WITH for all times to come.
IIT Kanpur Branch

OB Union Bank

Uploaded by

Copyright:

Available Formats

OB Union Bank

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

OB Union Bank

Uploaded by

Copyright:

Available Formats

Organisational Culture at Union Bank

Characteristics of the Organisation

About Union Bank

2) Committed turnaround time for delivery of products and services

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.