Figure 3: Scope Hierarchy transition
The changes in leadership of CEO Scope also occur during those periods due to Promotion and in line with Group’s policy for rotational change in the Top Senior position. (Figure 4)
Figure 4: Leadership Transition
As for the vision and mission of Scope there is no change occur as it was incorporated by the group SCB (Figure 5) form the earlier stage of establishment.
Strategic Intent:
“The World’s Best International Bank,
Leading The Way in Asia, Africa and The Middle East”
Mission/Brand Promises
“ Leading by Example to be the Right Partner”
Core Values
Responsive w Trustworthy w Creative w International w Courageous
Figure 5: Organisation Strategic Intent, Mission and Values
These ideals are from SCB and were transcend to Scope International to have same goal and direction, and to assist in achieving the Group strategic intent. However, in 2005 Banking Operations has rolled out sub-mission of being the recognised as a leader in operational excellence within SCB Group by Jan 2008, this was to further strengthen the Scope mission and vision and realignment with the SCB Group vision.
5.1. Effect of the transition
Based on the change in structure and mission has affected the culture to be more tasks oriented and emphasis focused on operational excellence. The values which influence the behaviour are more into the instrumental value; eg, hard work, tradition, risk taking and standards of service. Where Milton Rokeach (1973)[7] indicate that the ‘Route to terminal values is through instrumental values’.
The leadership transition in the earlier stage had impacted the staff behaviour toward the company, where the 1st CEO leadership of Scope, Mr Peter Churchman had profound image of international and professionalism that affect the value of being international. While the next CEO leadership Mr Edwin Nevis, home grown charismatic leadership had a popular personality, positive influence and acknowledgement from the staff. However, next the successor Mr Arif Siddiqui influence had been felt through the robust growth of the company that bring new job opportunity and career advancement.
The additional vertical level in the hierarchy was to ease and assist the management span of control due to the business expansion and complex management requirement. However, this had created a positive behaviour and opportunity for the staff to climb up the hierarchy structure.
In order to further identify the culture and sub-culture, and how the culture and values affecting the behaviour further analysis need to under taken
6. An analysis of the culture and values of the organisation
6.1. Scope International Prevailing Culture
According to Schein (2004)[8] organisational culture based on distinguishing three level of culture;
Level 1: Visible Artefacts; – Physical evidence e.g. Office design, layout and dress codes.
Level 2: Values and beliefs; – Consciously help concepts as a result of experiences
Level 3: Basic Assumptions; – Unconsciously learned responses based upon perception
Figure 2: Schien culture levels
At Scope the visible artefacts will be the dress codes where Consumer Banking emphasis more on smart dress/casual while Wholesale Banking remain to adopt dress down culture. This is because the Head and Team Manager of Consumer Banking belief that when people dress smart they work smarter hence their performance will increase. The Values and belief will be the 5 core value (figure 5. Pg 9) that been incorporated by the SCB Group in the way we going business. While the basic assumption can been seen in its work life balance where long working hour perceive as norm in the organisation.
Scope culture also can be classified under 4 different type of culture base on Handy (1995)[9] Power Culture, Role Culture, Task Culture and Person Culture;
Power Culture
Frequently found in small entrepreneurial organisations and relies on trust, empathy and personal communications for its effectiveness.
Role Culture
Often stereotyped as a bureaucracy and works by logic and rationality.
Task Culture
Job-oriented or project-oriented where influence comes from expertise and more dispersed than in other cultures.
Person Culture
Individual is the central focus and any structure exists to serve the individuals within it.
Figure 3: Handy culture type
Scope type culture will be in its Task Culture due to its job oriented toward getting the job done and the work of teams is more important than individual objectives or personal power.
At Scope the culture of an organisation often likened to the personality of an individual especially the leadership. For example the predecessor leader Edwin Nevis had a charismatic influence to the staff due to his ground level approach inspire and influence other people. His good leadership involves the effective process of delegation and empowerment.
Perceived Values Scope International
According to Milton Rokeach[10], value can be divided in to 2 founding values:
Ø Terminal Value;
Linked to desired goals eg. Excellence, quality, morality, stability, profitability.
Ø Instrumental Value;
linked to desired modes of behaviour for the organisation
e.g hard work, tradition, respect for authority, risk taking, etc
Figure 4: Milton Rokeach, Rokeach Value Survey (RVS)
At Scope level the terminal and instrumental value can be seen in the Organisation Strategic Intent, Mission and Values (Figure 5 on page 10), where the terminal value in being the world International bank and been the right partner this had required demanding value of excellence, quality and profitably. While values of Responsive, Courageous and Trustworthy are the instrumental values that demand hard work, the way we do thing here and tradition.
6.2. Values at Group, departmental and individual level
The values at each level can be streamlining in a values cascading process shown below;
Figure 5: Values Cascading Process
Through this values cascade process it instrumental values are understood. However base on the Scope task culture the perceived values will be more in to responsive, hardworking and result driven. The challenge is to manage these different values and the mindsets between those that are mandated at organisational level and those that are ‘felt’ at individual level.
6.3. How culture and value affect behaviour
How culture and value effecting behaviour can be view under organisational level, departmental level and individual level;
6.3.1. Organisational Level
Ø Dynamic workforce
Ø Having staff with high energy level
Ø High achiever and expectation
Ø High attrition
6.3.2. Departmental Level
Ø Visible results
Ø Strong teamwork
Ø Divided perception among department
Ø High expertise
Ø Positive engagement
6.3.3. Individual Level
Ø Disrupted work life balance
Ø Frustration unable to cope with the task
Ø Negative and positive engagement
Ø Discontent and disloyal
These behavioural dynamics are influenced by the values and will vary according to managerial level of the individuals involved.
6.4. The inherent strengths of the prevailing culture
Overall, the inherent strength of Scope task culture base on Handy culture type (figure 7) will be in the goal orientation toward getting the job done and in strong team work to drive the organisation, this can be refer under the departmental level where the visibility of the result and the strong teamwork had resulted an dynamic workforce and higher achiever at organisation level. This also had generated positive instrumental values base on the value cascading process (Figure 9) the values of committed, dedicated and achiever contribute to the efficiency and accuracy. All this is relevant for the future growth ambition of the organisation to become the Centre of Operational Excellence in Scope and SCB.
However, the culture is also affected by the macro-environmental factors which will be discus further in section 7, this factors created potential risk especially in relation to working stress, attrition and low staff morale.
7. Factors that effect culture and value
The actual effects of change on the culture and values of the organisation are specified in the previous part. This part of the report points to the actual elements that influence culture and value. These elements are pointed out in the work of Kantner et al (1992) as internal and external factors. The table below shall present a summary of these element and their effects on the organisation.
7.1. External influence
External influence is basically the collection of effects presented by the external environment. For the purposes of this paper, these factors are divided into political, economic, social, technical, legal, competition, customers, market trends, and industry trends.
Table 1. External Influences that Affect SCB
THE NATURE OF THE INFLUENCE
THE NATURE OF THE IMPACT
IMPACT RATING
High — Low
10 — 1
• POLITICAL
International operations mean the requisite to regard the financial regimes of every client
The impact is basically seen in the regard of the realisation of the organisational objective of being the world’s best international bank.
8
• ECONOMIC
The transition and realignment of the SCB Group mission would demand more change initiatives (i.e. minor programmes)
This would translate to added operational costs
7
• SOCIAL
Effects on the organisational, departmental, and individual levels of SCB.
Possible disruption of work
9
• TECHNICAL
Shift from a BPO to Consumer Banking would require added upgrades in the IT systems of the organisation.
Added requisite to address the added cost to install IT system upgrades and train personnel.
8
• LEGAL
Shift from a BPO to Consumer Banking obligates SCB to satisfy certain requisites to find completion
These actions require the approval of relevant authorities which may take delay the overall process of transition.
5
• COMPETITION
The consumer banking sector already has major players which possess a massive bulk of the market share.
SCB would have a hard time climbing up the industry ladder as they will essentially be one of the new entrants.
8
• CUSTOMERS
The customer demands shall dictate developments made in the company.
Having a customer-focused approach may require added customer relationship management initiatives from SCB.
6
• GENERAL MARKET TRENDS
The general market trends constitute the major and minor changes on the part of the consumers of the company.
SCB must thus give closer attention to the behaviours manifested by the major clients and core consumers of the organisation.
9
• INDUSTRY TRENDS
The general trends is the amalgamation of the political, economic, social, technical, legal, and the competition of SCB
Strategic planning is required on the company to foresee these trends and find ways to maximise it.
9
7.1.1. Risk analysis of the impact upon culture and values
The table above have summarised the perceived risks that SCB would encounter in the process of their transition from an entirely BOP to more of a Customer Banking institution. Specifically, it is a discussion on how the existing environment will treat the company once it has decided to go head on with the plan. In the political elements in the environment, the financial regimes appear to influence the operations of the SCB as it seeks to operate in several continents, hence several states. The major impact of this external political factor is that the organisational objectives may subject to adjustments based on the financial regimes on specific states.
In the context of the economic element of the external environment, the realignment of the SCB Group mission would require specific programmes to initiate the development programmes of the company. All in all, this would add up to the accumulation of additional operational costs required to keep the changes within the lines prescribed by the organisation. Therefore, the influence would be manifested by the pressure to find a way to fund these endeavours so as to realise the goals of the company.
In the context of the social environment of the organisation, major changes with reference to the organisational, departmental, and individual levels. The social elements consist of those that affect the human element of the organisation. Based on the previous discussions, the intended shifts of the operations would inevitably encounter resistance. This resistance, regardless of what level or intensity, will inevitably offer the organisation some disruptions which translate to further losses in the organisation.
The technical factors of the organisations relates to the need to make the communications of the company more efficient and effective as they are going to operate in multiple markets. Moreover, since they will be shifting towards consumer banking, the company have to realise the fact that most of their competitors and the exiting players in the industry are capable of supporting mobile banking applications. These applications basically intimate financial operations online or through their mobile phones.
Moreover, the company have to deal with the legal requirements of shifting the modes of operations. There are some requirements that the government obligates companies like SCB to satisfy in order to commence proper operations. These include permits, fees and other tax imposed on the company by the state. The problem in this area is not that compelling but there is an inherent possibility that the company’s operations and plans may be hampered by the likely delay of processing of such requirements.
Furthermore, the competition will also be a factor in the transition of the company as it would present the possibility on whether or not the company will do well in the industry. For instance, the case of SCB the shift towards consumer banking would make them a small fry in a small pond dominated by schools of massive fish. The market is dominated by numerous players that have long established its reputation among the consumers. This alone will make the transition of the company rather complicated.
With reference to the market share of the company, the customers of the organisation will also have a great influence on the company. In this regard, it is advisable for the company to take on a customer-focused approach in their operations. This will allow them to recognise their core customers and even attract other potential customers to acquire their services. This denotes a close consideration of customer relationship management initiatives would do fairly well for the organisation.
7.1.2. Summarise
Looking at the discussions and the presented tables above, it shows that the market and industry trends have a great impact on the development initiatives of the company. To these ends, planning will be an essential element on addressing the needs of the company. More specifically, this will require the company to foresee the changes and the minor shifts on the trends in both the market and the industry. This will allow the company to maximise its profits and minimise its losses in the duration of the change process.
7.2. Internal Influence
Aside from the external elements that induces influence in the organisation, it is also imperative to take in hand the internal elements that influences its operations. These elements are deemed vital. The following table summarises the internal change drivers that influences the operations of the organisation along with the appended risks in its implementation. The external influences include working life, communication, job satisfaction, management, income, reward and recognition.
Table 2. External Influences that Affect SCB
[1] Organ D. W. Organisational Citizenship Behaviour (1988)
[2] Laurie J. Mullins “Management and Organisation behavior, 8th Edition”. FT Prentice Hall (2007)
[3] Buchanan, D. and Badham, R. Power, Politics and Organizational Change: Winning the Tuft Game. Sage Publication (1999)
[4] BPO inspired from Multi Business Processing module from SCB Group strategic initiative “Fit For Growth”
[5] Scope International (M) Sdn Bhd also known as GSSCKL due to its strategic location in Kuala Lumpur –as the capital city of Malaysia
[6] Scope core banking operation are Consumer Banking and Wholesale Banking
[7] Milton Rokeach, Rokeach Value Survey (RVS), The Nature of Human Values (New York Free Press, 1973)
[8] Schien E. H. Organisational Culture and Leadership. A Dynamic View. 3rd edition, Jossey-Bass (2004)
[9] Handy, Charles. 1995 (copyright 1978). Gods of Management: The Changing Work of Organizations. New York: Oxford University Press
[10] Milton Rokeach, Rokeach Value Survey (RVS), The Nature of Human Values. New York Free Press
[11] Williams, J.C., Huber, G.P., Human Behaviour in Organizations, South Western Publishing Company, 1986
[12] C. Argyris and D. Schön. Organizational Learning: A Theory of Action Perspective. McGraw-Hill (1978)
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