Cut-throat Competition in Indian Private Banks

Posted in Finance Articles, Total Reads: 1885 , Published on 25 June 2014
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Competition is apparent in all the organizations in some way or the other. However, if one has to feel and experience the competition even as an outsider, then Private Banks, Insurance Companies and other Companies offering financial services is the best bet. In this article, competition in Private Banks is highlighted. In Private Banks, accountability in terms of performance especially at the junior level is very high, whereas in the case of public sector banks, accountability and measurement of performance begins from the level of the branch manager onwards. As a result there is tremendous amount of stress among the employees working over there. Private Banks are very strict when it comes to performance of the employees. Also, most of these Banks have 12-hour working hours (8 to8) which makes it much more difficult for its employees. The employees simply go with their tasks rather in a monotonous manner.

Image Courtesy: freedigitalphotos.net, Stuart Miles


The employees really do not get time to mingle and interact with their colleagues. As a result the employees do not know each other well. Some employees even do not even remember their colleagues’ name. As a result there is no personal bonding between the employees. This creates a feeling of being like a stranger or being just another person working for the company for his own good. In the Marketing Department of the Bank, this feeling is further fuelled when the Relationship Managers are given targets to complete which is to be achieved in a particular time. Then from there on, the relationship managers are on a race to achieve their targets as early as possible before others in order to create a good impression in the minds of the Branch Head for the purpose of getting a positive feedback from him which would result in getting a favorable performance appraisal report resulting in pay hikes and other incentives.


As a result, one Relationship Manager always sees another relationship manager as a rival rather than as a colleague. They hardly communicate between them. All they want is to outperform each other. This even gets reflected during various award and recognition events sponsored by the company. Sometimes there are also verbal altercations when a particular customer is wooed by a Relationship Manager when the customer actually goes to the other Relationship Manager. This particularly happens when the Relationship Mangers are trying their best to complete their targets as their deadline dates loom.


Thus in the case of Banks especially the private sector banks, there is not much interpersonal relationship between the employees (Relationship Manager) and because of the pressure of meeting various deadlines, they are regularly seen competing against each other to enter the good books of their branch heads for their own benefit without considering to create a stable and a peaceful interpersonal relationship with one another.


So, the point is that in this extremely competitive setup, the employees actually see each other as bitter rivals rather than as colleagues who work together in the same company. If this is the working environment, then this would result in frustration and act as a catalyst for employee burnout. Therefore, it is time we know the importance of a pleasant and jovial working atmosphere in an organization and work towards achieving the same in order to ensure mental peace resulting in employee satisfaction which itself would be a sort of achievement the HR head can boast of!


This article has been authored by Sreenivas Sankar Iyer, Junior Executive, Accounts from Rise Construction Co.


References:

a. Friend working in Bank

b. Experiences of meeting Business Development Executives



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