CASE STUDY

SALES TARGETS AT KNB

BANK
PRESENTED BY: Group 1
- Abhishek Kumar (R. No – 1)
- Ajit Singh Yadav (R. No – 2)
- Akhil Kr Chaudhary (R. No – 3)
- Aman Arora (R. No – 4)
- Amit Anand (R. No – 5)
- Ankita Wahi (R. No – 6)
 Case Summary
• KNB Bank – a growing private sector bank, deals in
regular banking products like loans, FDs, Credit cards &
other related things
• KNB Bank Plans to enter into insurance sector, with
the opening of the insurance sector in India.
• KNB Bank enter into a JV with UK based Secure
Insurance Services to sell life insurance products to
India
• All the branch offices of KNB Bank were told to
promote the sales of insurance products along with
regular bank products.
• Case is about KNB Bank’s Tirupur branch which
performed badly ever since its inception 7 years ago
• Mr. Raj Malhotra, a young and enthusiastic, joins the
Tirupur branch & is determined to bring about a change
 Case Summary
• Mr. Raj Malhotra convenes a meeting, first of its
kind in the history of the branch. All employees of
the branch were there to welcome new manager.
The meeting was also to make certain crucial
decision to enhance the branch performance.
• The Assistant Manager, Abhiram Krishna, had
made all the arrangements for the meeting.
• After taking over, Mr Malhotra described bank’s
foray into the insurance sector, pointed out the
additional responsibility of everyone to make this
diversification a success.
• Mr. Malhotra emphasized the targets for the
branch including its regular products and entry into
insurance sector
 Case Summary
• Suggestions were invited from from all employees to
improve the branch’s performance
• There was very little participation despite Malhotra
making repeated requests to them to fearlessly voice
there opinions
• In the absence of substantial inputs from his
subordinates, Malhotra presented his plan of action.
• Among various measures, Malhotra proposed the
enforcement of sales targets even for employees
dealing with routine banking operations like cash
transactions, generation of demand drafts opening of
new accounts etc
• Opinion about the targets were sought again from the
employees
 Case Summary
• Although this scheme was unacceptable to the employees,
none of them voiced there objection.
• Meeting concluded after discussion on few more strategies
• Next day, one senior employee Anand Trivedi approached
Assistant Manager Krishna, with representation of
employees.
• In their representation, the employees requested the
management not to impose sales target on them as it’d be
too stressful for them to concentrate both on processing
routine transaction as well as sales of the banks product
and services.
• They also claimed that of late the nos of transactions had
increased tremendously.
 Case Summary
• Krishna was irritated after reading the representation
and asked Trivedi why the employees had not opposed
the decision during the meeting itself?
• Trivedi replied, during the meeting each employee had
this objection but had thought that he may be the only
one to oppose and hesitated to voice his opposition for
fear of antagonizing the management
• Employees discussed the issue after the meeting and
realized that everyone is equally opposed to the decision
• Krishna assured Trivedi that he would certainly make all
efforts possible to make the management reconsider the
action plan.
 Observations &
Analysis
• Tirupur branch performed badly ever since its
inception 7 years ago
• Lack of Communication from top to bottom
• Unmotivated staff & Excuses
• Managerial Style
• Informal Meeting with the group
• Low HR involvement, Proper training ?
• Approach of Employees
• Averse to Risk (employees).
 Observations &
Analysis
• Apprehensive of taking new
challenges
• New work culture and challenges in
the banking sector.
• low confidence of employee.
• employees not target oriented.
 Observations &
Analysis
Bad
Performance
of
Tirupur Branch

Perhaps
Decisions Perhaps Perhaps
Perhaps
Being Taken Not Employees
Over Ambitious
without weren’t
/ Unrealistic Working as a
taking Performance
Targets Team
Employees Oriented
into confidence
 Observations &
Analysis
Lack of
Proper
Communication
within
the Bank

This was Employees didn’t In 1st meeting

Had any idea Itself
First Ever 1st meeting about their
new targets,
Meeting with New Manager
& same was
goals & new forays
of Such Kind New
true for were discussed
Branch Manager & fixed
New Manager
 Observations &
Analysis
1st meeting with
No experience new boss, Risk Aversive
of involvement circumspect &
with the Laidback
Management attitude
Not used to
Excuses like
thinking like
Stress to
new manager,
increase, transaction
seeking opinion
Unmotivated staff increased etc.
of employees

Bad performance
Not oriented
of the bank
towards target
since its inception
Apprehensive of
No talk of
New Challenges,
any incentive New Work Culture
 Observations &
Analysis
Managerial
Style

Or going
No Stock No No
Solo, but
Taking Ice Breathing
Open Team Pretending
or Breaking Space
Ended Player Involvement
Proper with the for the
of Every One
Home Work Employees Employees
 Observations &
Analysis
What Could
Have Been
Done

Stock Taking Bring Bring New

Proper
or Sense Work Culture
Training
to get to of Security but only
of the
know his in after proper
Employees
subordinates Employees Home Work
 SALES TARGET AT KNB
DISCUSSION
BANK
• BENEFITS OF EMPLOYEE PARTICIPATION IN DECISION-MAKING
 SALES TARGET AT KNB
DISCUSSION
BANK
• THE MANAGER ATTEMPTED TO DEVELOP CONSENSUS BUT FAILED. WHICH
PROCESS impeded CONSENSUS BUILDING?
 SALES TARGET AT KNB
DISCUSSION
BANK
• WHAT COULD THE MANAGER DO TO BUILD CONSENSUS LEADING TO
COMMITMENT FOR ACTION?