The Operations of the Ocbc Bank Essay Example

in February 2003, the organization aims to achieve international growth within three years by using a transfer and build approach. Their goal is to strengthen their market position in Malaysia and Singapore while utilizing these markets as a platform for expanding into other ASEAN countries with their product solutions and business models.

The organization's goal is to establish a presence in a third country by 2005 and expand to another country by 2006.

Building a high-performance bank

The organization aims to expand its SME and consumer base, becoming one of the top three SME and consumer banks in Malaysia and Singapore by 2005. It will strategically develop portfolios for consumer and financial loans, enhancing credit processing capabilities while maintaining strong credit evaluation and portfolio. Additionally, the organization will focus on creating top-tier products with the objective of new products contributing 15% to revenue annually. In the merged Malaysia-Singapore market, the bank seeks to rank among the top three in transaction banking, wealth management, investment, and treasury banking. By 2005, it targets a growth rate of 10% in earnings per share, minimum dividend payout of 25% for core earnings, and a return on equity of 12%.

The banking institution has a goal of exchanging its central financial services accumulation opportunities for non-core assets. Additionally, it aims to distribute additional capital to shareholders through a redemption program. By 2005, the bank wants at least 30% of its employees to become stockholders in order to enhance and develop the bank's human capital. Furthermore, it plans on streamlining its cross-functional processes to reduce unit costs, improve efficiency, and provide more cost-effective services. The HR department is always looking for exceptional individuals who can

join the organization and contribute to building a high-performance bank. Employee satisfaction is highly valued by the bank, which offers challenging opportunities and fosters a positive working environment that supports employees in realizing their potential. The philosophy of Human Resources revolves around recognizing each employee's unique worth and integrity.

OCBC embodies the shared values of treating each person with respect and supporting one another to achieve the organization's goals. In the process, the bank recognizes, identifies, and rewards talent for outstanding performance.

OCBC Bank offers:

• Competitive Remuneration Package
• Benefit Program and Flexible Lifestyle
• Comprehensive Training Plan
• Equity Ownership Plan
• Functional Exposure and Cross Border Exposure
• Continuation of Education Schemes

Analysis of the Business Strategies Adopted by an Organization

The organization has a significant presence in the consumer and business banking sectors in Malaysia and Singapore. In terms of market and asset share, Great Eastern Holdings, its insurance subsidiary, is the largest insurance group in Malaysia and Singapore.

The bank's chief banking operations, including deposits and loans, have shown modest growth over the past five years, ending in 2007. Loans had a Compound Annual Growth Rate (CAGR) of 15.6% from 2003 to reach RM47.36 billion in 2007. Similarly, deposits had a CAGR of 13.52% from 2003 to reach RM58.96 billion in 2007. Since 2003, the bank's Non Performing Loans (NPL) have steadily decreased. NPL dropped from RM2,546 million in 2006 to RM899 million in 2007. In 2008, OCBC Bank reported a 4% decrease in net income to RM622 million for the first quarter, mainly due to exposure to US sub-prime assets mortgage.

OCBC Bank strives to provide clients with a personalized experience and establish a strong

personal relationship. This approach aims to enhance client satisfaction with the bank. However, research suggests that clients are dissatisfied and lack trust in the bank due to factors such as excessive waiting times in phone banking, delays in being served at the counter, queuing at bank machines, and high banking fees. To address these issues, the bank needs to identify areas of improvement and innovation within their business. They can learn from the best practices of their competitors in the service industry. Ultimately, cultivating effective customer care is key to fostering long-term relationships with clients. As part of its growth, OCBC Bank is adopting more advanced risk management strategies and techniques than it previously employed.

According to this survey, there is a lot more improvement that can be done. It is important to emphasize an earlier point before considering the potential value added by countries. The risk management techniques used by corporations at the higher end of the market are not average. Less sophisticated ones use less precise and significantly less analytical risk management techniques compared to those used by companies at the higher end of the market. Smaller establishments also use risk management techniques, but in some cases, they would need a lot of upgrading to reach the level of those reported here.

The industry criterion could benefit from advancements in the techniques employed by those who define it. Recommended areas for analytic work include recognition hazard, interest/profit rate risk, foreign exchange risk, liquid hazard, other hazards, and collection hazards. The Bank's focus in client and consumer banking will be on distribution, merchandise and portfolio management, client battle, and disbursal control. They will strive to strengthen

their distribution network by improving the productivity and organization of their sales force through a multi-channel distribution model and expanding customer reach through alternative channels and business partners. To enhance the management of products and portfolios, the Bank will place even greater importance on consumer product relevance, targeting specific segments and categories, innovating product bundling, and exploring opportunities for new fee-based income sources.The text suggests that the company will work together with the subdivision transmutation enterprise to improve customer experience, redefine the business model and customer engagement, increase product penetration and success in cross-selling. They will also invest in improving the capabilities of the call center and focus on enhancing banking convenience to capture a larger market share in the mass affluent segment.

To address the unfavorable economic climate, several cost control measures will be implemented. These measures consist of stricter management of direct expenses, the establishment of a task force to identify expense-saving opportunities, collaboration with business partners to optimize marketing and promotional spending, and strategic allocation of resources for new business investments and opportunities.

Stockholder value (SV) pertains to the equity portion of the bank's capitalization rather than long-term debt. SV can be calculated by multiplying the number of important shares by the current share price if there is only one type of stock. Dividends contribute to increasing SV, while issuing shares decreases it.

To compare SV with the average and required increase in cost of capital or value, these stockholder values should be added. Value-based management, also known as management principle, emphasizes prioritizing stockholders' interests when evaluating a business despite its legal obligations.

It's challenging for any director to influence stockholder value. Typically, there are

a few components that make up the so-called value drivers. 7 drivers of stockholder value are commonly used as a model to provide guidance to directors. These drivers include:

• Operating Margin
• Gross
• Tax Rate Cash
• Working Capital Investment
• Capital Expenditure Incremental
• Capital Cost
• Advantage Period of Competitive

The OCBC chief duty is focused on developing human and intellectual capital to create a well-equipped and sustainable workforce that is flexible, agile, and mobile. One crucial factor of human capital is education and training, which can be measured in various ways including investment in education and training. This investment represents a significant relationship to economic growth represented by the Gross Domestic Product.

Productiveness

The staff turnover rate at OCBC Bank's payment and e-banking operations is impressively low at 3% to 4% annually. The bank values work-life balance to ensure employee satisfaction and monitors overtime claims. It also focuses on aligning employee, process, and technology in its company structure.

OCBC Banks offers various channels for accessing banking and other services:

• ATM - also known as Auto Teller Machine, dispenses cash and may provide additional services like bill payment, fund transfers, and account checking.
• CDM/CIM - also known as Cash Deposit Machine/Cash In Machine, accepts cash for account deposits, bill payments, etc.
• Name centre - for banking service inquiries.
• Mail - handles check or check book receiving and sending, bank statements, etc. through regular mail.

Telephone banking - allows banking transactions like account inquiries conducted through a mobile phone.

people side of the business, and focusing on the bottom line of business performance from the perspective of the people. It is important not to be discouraged by negative reactions to idealistic statements, but instead to think through important issues in a formal and expressed manner. Additionally, the contribution of the people should be considered. A SWOT analysis should be conducted for the organization, focusing on the strengths and weaknesses of every employee, taking into consideration current capabilities and expertise issues. Opportunities and threats relating to the employee side of the business should be highlighted by researching the market environment and external concerns. The potential impact on business performance should also be considered, as well as any skill deficits.- The impact on new engineering and staffing degrees?

- From this analysis, reexamine the capableness of the Human Resource section.
- Run a complete SWOT analysis on the section - consider in item the section 's service stage, operation of current countries and staff competence.
- Conduct a human resources analysis
- Focus on the company COPS ( civilization, organisation, people, HR systems )
- See: What is your current degree?What is your hereafter planning?
- Check the hollow infinite exists between the world of presently state of affairs and the hereafter planning.
- Exhaust the analysis of the four dimensions.
- Look back and analyze the concern scheme and analyze it against the COPS and SWOT analysis:
- Identifying the critical employee 's issues viz.that must be address and those which have direct impact on the bringing of concern scheme.
- Prioritized the critical employee issues.What will go on if employer fails to turn to them?
- The organisation should maintain in

head on placing and concentrating on the attempts and resources.
- Develop effects and solutions
- Every critical issue will be highlighted the options for fading action to bring forth, create and luxuriant - do n't travel for the direct issues.It is important to challenge existing judgments and the way things have been done, as some individuals may simply accept conclusions without questioning them.

Consider the effects of taking various actions, whether it is necessary for improving communications, development, or compensation. Take into account the Human Resource systems required to address the issues. What are the indicators for the forces and concerns? It is possible to interpret the action plan objectively once you have gone through the process. The Human Resource System needs to be divided into different areas:

• Worker development and training
• Management development
• Organizational development
• Performance appraisal
• Employee rewards
• Worker recruitment and selection
• Workforce planning
• Communication

In order to achieve the objective, targets and dates need to be determined. Create an action plan for important issues. The ultimate purpose of developing the human resource system is to integrate employee training and career development, ensuring that the main objectives are mutually supportive and centralized for the payment and wages system.

Failing to provide employees with opportunities for training and career development will only frustrate them and provide very little benefit to

the organization.

Conclusion

This assignment has examined the strategic roles played by the Human Resource Department in providing and contributing to the development of employees' skills, which is important for maximizing business performance. Traditionally, the Human Resource Department has been relied upon to guide the organization in supporting the implementation of strategies. While this supportive role is crucial for ensuring worker efficiency to meet current performance demands, the Human Resource Department can offer even greater strategic value by determining the business strategy.

The significance of information engineering for achieving efficiency and success in sustainable competitive advantage through employee expertise has emphasized the growing importance of strategic value in Human Resource Department. Human Resource Department has become critical by enabling momentum in strategies based on personalized services, qualities and cost leadership, innovation of product and strategies based on global relocation of workforce skills. In summary, to deliver employee strength of pure strategic value, the organization and the Human Resource Department together must embrace a holistic perspective of Human Resource role and indicate the strategic properties discussed in this assignment. These strategic properties are reflected in Human Resource Department that: demonstrate strategy capabilities, performance-based and responsive to the emergent nature of strategy.