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 FTSE100 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.