8/3/2019 Angel Bank

1/6

Abstract:

Angel banks performance is based on strong work force. The Human Resources (HR)

Department develops initiatives and provides strategic support to top management with regard to

human resources policy. Main areas of responsibility include cultural alignment, organizational

development, recruitment, salary administration, performance appraisal, training and

development, working conditions, and relations with the personnel. This case deals with (HR)

and focus on change management so its an important case as far as education is concern.

Students should have sound knowledge about how to implement (HR) policies, and to resolve

(HR) issues to solve the problem.

Keywords:

y Decision Makingy Acquisitiony HR policiesy Rewards systemy

C ultural Allignmenty Motivationy L oyaltyy E mployee Turnover y Human Resource Managementy Training

8/3/2019 Angel Bank

2/6

Synopsis:

After acquiring singtel the major changes occur in the company, one of them is the change of top

management, regarding hr the overall polices of hr are changed, the major problem for Smart is

to tackle the human resource of Pakistan because the Smart is a Japanese company and top

management of Smart is from Japan. so after the change in top management, some major

changes regarding hr is change in the hierarchy/structure of the company, better reward system,

increase in salaries, effect on employees due to change of policies, effect on employees due to

change of top management, change in recruitment polices, increase in motivation of employees,

employees are more loyal and very less turnover in smart.

In year 2008, Mr. Amir khan, CEO of Japan Mobile is anticipating that the new brand is not only

a brand of the Pakistan branch, but also an international brand for Japan Mobile, which aims to

provide communication among societies. We are not just mobile operators but information

providers for society.

The central idea behind this step is to provide optimized network coverage across wide range .

The combination of continued rapid growth in Pakistan's economy, rising consumer purchasing

power and the acceleration of information throughout the country is driving a tremendous

demand for communications and information services. Irrespective of competitive edge the

company wants to maintain strong relationship with customers by providing value added

services.

Japan Mobile Communications Corporation also known as Japan Mobile or JMCC ,

officially established on April 20th, 2000, is the largest mobile phone operator in japan. It is the

world's largest mobile phone operator ranked by number of subscribers, with over 380 million

customers.

8/3/2019 Angel Bank

3/6

S mart is the first International brand of japan Mobile being launched in Pakistan on

April5, 2008. It is meant to empower and liberate the people of Pakistan in every nook and

corner of the country. The core essence of SMART is to allow people to communicate at willwithout worrying about tariffs, network coverage, capacity issues or congestion. It will be

supported by groundbreaking communications, trend setting customer service and an unmatched

product offering, which will redefine rules of the game and establish SMART as a serious

contender for the number one spot.

The brand would offer its customers with entertaining & innovative value added services and

will empower them by giving a wide variety of products & services.

There are many acquisitions and mergers took placed in last few years. we have seen many

mergers and acquisition in our country the reason of their acquisition are different but the main

problem lies in human resource management, many companies start their operation but they

hardly survive reason being the cultural alignment, bad management, hr policies, fear of any

change, turnover, training and development.

When CEO Yasir Ali of Angel was hired for the operations of the company he had to face many

challenges, he had to hire/recruit the skilled employees and place them for the right job. This

ultimately change the hierarchy/structure of the company, Yasir was sure for one thing that he

cannot move forward with the existing policies of company and they have to form new policies

for the company and human resource. This was also a great challenge for Yasir Ali and his

decision making power because from now onwards he has to make many difficult decisions.

The other factor is low salary packages, no increment on salaries and previous management was

not interested in this matter employees many times raised these problems but they didnt pay

attention to it salaries were not credited to their account on time it always come late no one was

bothered for the salaries of employees. when the CEO Yasir Ali took charge of Angel Bank he

had the challenge to make better salaries structure and compensation or reward system. Yasir has

to induct an experience and skilled HR person who can help him solving the issues of Angel

8/3/2019 Angel Bank

4/6

Bank for this he called Mohsin Kamal who is a head of human resource management in Angel

bank who was a skilled and experienced person.

Another factor which played an important role in the acquisition of Scotland Bank is cultural gap

between the organizations top management and employees. The top management of ScotlandBank came from E ngland and they were supervising the Pakistani employees they have a huge

cultural difference between them. The organizational culture was also disturbed because of this

problem as the employees didnt have any idea of what culture they adopt so that they can

survive in this organization. Scotland Bank didnt pay any attention to this issue and it

completely ruined the environment of Scotland Bank.

When Angel Bank acquired Scotland Bank and CEO Yasir Ali took the charge all the employees

were effected by this change because they were working in the different supervision previouslyand now CEO proposed new methods and changed the working environment of the company.

This change was necessary because the operations of the company were not up to the mark and

they had to improve the performance and maximization of profit. The main reason of shutting

down of Scotland Bank was no profit and in 2010 they had a huge loss which they couldnt bear

after that they decided to wind up their operations in Pakistan.

For these problems Human Resource Head Mohsin Kamal redefined the human resource

management system of Scotland Bank in this he covered all the problems and challenges that

where occurring in the company he changed the whole process of planning, organizing, leading,

controlling. Which covers the all the issues he proposed new salary structures new recruitment

policies new reward systems and compensation plans he arranged events for the employees so

that they can get to know each other and work efficiently in a team and make the environment

better from previous he eliminated all the gaps between employees. He made a proper schedule

for training of the employees in order to get the maximum utilization of human resource and

explained in training sessions that they dont have to worry about the change that occurred inAngel Bank because it is beneficial for employees.

When the new system was implemented in the organization it dramatically increased the

performance of the organization it motivated the employees towards their work tasks/duties and

they were more loyal with the organization and the turnover was very low as compared to the

8/3/2019 Angel Bank

5/6

pervious system. This is why Mohsin kamal made a survey through questionnaires from

employees and asked about the environment and working methodology when you compare your

today with yesterday and he saw the graph going upwards employees were more satisfied.

E ducational objectives:

This case study is based on human resource management issues and focuses on the change

management it covers maximum fields of HRM. In oreder to solve this case the readers must

have understood different concepts relating to human resource management and management

styles, why employees left their jobs and how organizations can ensure long-term organizational

commitment and focus on the vision of an organization. Readers should have a clearer

understanding of the following issues:

y C ultural Allignmenty E mployees turnover y HR Policies

y Training

Questions:

1. Discuss how would you address this situation? 2. What was the basic problem of Scotland Bank? 3. What are the other methods to increase the profit of Angel Bank? 4. What was the key problem for Yasir Ali when he took charge of Angel Bank?

Tips for resolving the case problem:

8/3/2019 Angel Bank

6/6

The instructor should make sure that the readers have sound knowledge of following topics of management:

y Human resource managementy O rganizational Behavior y Hr policiesy C hange managementy Personnel Training and Development