Overview Of The Sampath Bank Management Essay

Overview Of The Sampath Bank Management Essay Objective of this chapter is to present a general idea about the research. Hence, Chapter one is divided into eight areas such as background of the study, Objectives of the research, research problem, conceptual framework, research hypotheses, research questions, significance of the research and organization of the study. 1.1 Overview of the Sampath bank and Background of the study The dynamic nature of the new marketplace today has created a competitive incentive among many companies to consolidate and reconcile their knowledge assets as a means of creating value that is sustainable over time. Knowledge transferring is believed to be able to improve performance and productivity of the organization and knowledge transferring has been illustrated as a significant discipline in leading to positive performance in the organization (Kasim, 2008). To achieve competitive sustainability, many companies are launching extensive knowledge transferring efforts. More recently, knowledge transfer has emerged as powerful determinants of value creation in organizations. Organizations specific knowledge becomes as a necessary factor of competitive advantage (Gold, Malhotra, and Segars, 2001). The Sampath Bank has commenced its operations as a License commercial bank in 1987 with 47 employees. At present 3rd largest PCB in the contry Its vision statement, The Growing Force in Sri Lankan Financial services and values mentioned in below enhancing professional standards of internal and external customers (Sampath bank, 2012). Create a learning culture that promotes individual and organizational development as well as promoting innovation and value for customers. Treat all internal and external customers the way we would like to be treated. Encourage and promote teamwork in all aspects of behavior. Open to feedback and demonstrate an eagerness for personal development. Monitor and demonstrate an impressive commitment to results. Uncompromising ethical and professional standards of behavior The bank believes that its greatest treasure in what is truly a service industry is its investment in human capital, the high quality of management staff, motivation, dedication, and team spirit. The bank does not employ clerks and peons and ubiquitous features in most other institutions. Its staff is composed of executives assisted by secretaries, all of whom have been handpicked and adequately remunerated at levels well above prevailing market rates. Team of Sampath Bank is young and energetic, adaptable to change and are blessed with a gungkok bo attitude which in all circumstances allows us to pursue the vision and mission of the bank stridently. They are committed to constant improvement, new ideas and remain unafraid of challenges. They seek new opportunities within the knowledge based culture we permeate across the bank and this has resulted in winning accolades from all spheres of competencies. Moreover, among the corporate objectives of the bank was employ, develop and retai n a self-motivated group of employees who themselves enforce high standards of performance (Sampath bank, 2012). According to General Manager of Sampath bank the relative youth, together with the enthusiasm and the pioneering spirit of all members of the staff had laid the foundation for the development of an innovative culture which was so essential in a field as competitive as banking. Intensive training, recreation and welfare facilities transform and guided the development and skills attitudes of the team necessary to deliver superior customer satisfaction (Sampath bank, 2012). The numbers of employees and branches have been increased to 3230 and 206 respectively in 2011. It has recruited new employees parallel to the vision of accelerating the branch network with the aim of gaining competitive advantage. The Sampath Bank had to fill the new vacancies from strategic level to function level in the newly opened 35 branches. The rapid expansion did not give a room to in-house built the skilled team members to allocate for newly opened branches. Most of team members were promoted to higher potential grades than their real potential grades. Number of employees who have been worked in different department in Sampath bank utilized the opportunity to work in branches. Transferred team members were required enhancing professional standards of internal and external customers with moving from their functions to branch banking.nb Several issues can be explored with reference to knowledge transferring in Sampath Bank. This research intends to identify whether the transferred employees have been shared or gain their knowledge within the subordinate employees. The main objectives of this study to explore links between employee transfer and knowledge transfer. This study is monitoring these issues and identified ways in which they may be overcome by introducing changes to the effective knowledge transferring. Objectives of the research The purpose of this research is to examine the links between employee transfer and knowledge transfer. The following objectives will be fulfilled above aim of this study. To explore management concepts to review links between employee transfer and knowledge transfer To identify individual and organizational factors for affecting effectiveness of knowledge transfer Research problem Top corporate entities in the world are beginning to realize the significance and importance of transferring knowledge and are beginning to appreciate knowledge as the most important and valued assets that leads to organizational performance. The Sampath Bank will compete for business only on the basis of quality, price and superior service to its customers. Considering values in Sampath bank, The Bank develops a highly motivated and competent team of individuals who independently ensure that the highest standards are maintained throughout the Bank. The bank Create a learning culture that promotes individual and organizational development as well as promoting innovation and value for customers are highly focused. Promoting open to feedback and monitor commitment to results are aimed to enhance its ethical and professional standards of behavior. The Sampath bank makes every effort to train and develop team members to acquire the professional skills and knowledge they would need to use in the Bank and the bank do hope that both team members professional and personal goals will be realized in a satisfying and rewarding career at the Sampath bank. The bank encourages team members to find new and better ways of doing their job or improving their Banks systems and processes. Innovation creates value not only for customers but for team members. It would add to the quality of work life and ensure that quality work of team members. The Sampath bank considers training and development as one of the most valuable investment in realizing their enduring goals and aspirations. Work towards developing their own talents and creating a culture where team members strive to acquire and share new knowledge critical to achieve mission of the bank. The Sampath bank deploys systematic and modern learning methods to enhance knowledge and productivity. As a matter of policy, the bank provides minimum of sixty hours of training per year for every team member. The type of training will be determined by an analysis of what skills and knowledge are required by each. The analysis will consider not only what is necessary in their current job but also what they would require in successive positions in the future. Team members are generally expected to serve in a particular workstation for a minimum period of four years. However, request for a transfer from team members assigned to Branches in remote areas may be considered after completion of three years. In the event of transfer of a team member, subsequent to his/her promotion, the minimum period of three years will not apply. Except for team members identified for specialization. The Bank encourages team members to acquire the skills and knowledge they need to do their job and the future positions they will hold and to disseminate those skills and knowledge within the Bank, So that, the Banks organizational capabilities and effectiveness are always improved. Career at the bank will depend on how well team members perform in the jobs they hold and the attitudes they exhibit. The work performance will be the sole criteria for any promotion. Considering rapid expansion in Sampath bank, it has emerged more vacancies in Branch banking. In presenting issue in promoting team members who has fewer competencies in branch banking to team members in branches. Required knowledge transferring through the transferred employees is questionable. Relationship between knowledge transferring and employee transferring in the Sampath bank is vital for academic performances. Considering these events and factors less publication in banking industry have addressed the effectiveness of knowledge transferring. As such, this study effort to identify the effectiveness of knowledge transferring from transferred employees at the Sampath bank. Conceptual framework A conceptual framework represents the relationships and the type of relationships among the concepts. The conceptual framework portrayed in figure.1 explains the relevant concepts in this study, and the form of relationship between the perceptions. Figure 1.1 Conceptual framework of the study Characteristics of the Transferred Employees Employee Transfers Effectiveness of Knowledge Transferring Source: Researchers orginal constraction. Moreover, figure 1 describes an analytical model in a graphical model based on some theoretical foundations. Accordingly, the conceptual framework is developed based on theories. The model assumes transferred employees as independent and knowledge transferring as dependent. Research hypotheses Bhatti, Zaheer and Rehman (2010) studied the effect of knowledge management practices on organizational performance. Specially, the study explored the effectiveness of knowledge transferring depend on learning capability, leadership skills and experience of employees. H1: Effectiveness of knowledge transfer is influenced by characteristics of the transferred team members at the Sampath bank. Research questions How individual and organizational factors influence for the effectiveness of knowledge transfer? What are the individual characteristics affect to knowledge transfer? How transfer knowledge via transferred employees? Significance of the research The main significance of this study is to help management of The Sampath Bank identify the effectiveness of knowledge transferring from transferred employees. Effectiveness of knowledge transferring relates to Banks current business performance named as customer orientation, competent people, long term profitability and growth, image building, effectiveness leadership among major customer segments. This knowledge will enable management implement the appropriate strategies that help improve the effectiveness of knowledge transfer. On the other hand, knowledge transferring plays significance role in building up sustainable competitive advantage in Banking industry. Limitation of the study The aim of this section is to define the boundaries of the study or to enumerate how the researcher has narrowed down its focus. The survey was conducted over a period of three months. Organization of the Report The main body of this report comprises seven sections. Its structural organization is presented in Figure 1.2 given below. Chapter 03 Research methodology and framework Chapter 04 Thematic organization, presentation and Analysis of data Chapter 05 Statistics outcome. Chapter 06 Concluding remarks Chapter 01 Introduction Chapter 02 Literature review Source: Researchers orginal constraction. The introduction that comprises a glimpse of the study, focusing on the context, the objectives of the study, an overview of the Sampath bank in Sri Lanka, the research issue and empirical setting of the research. it also provides an account of limitations that the researcher has set for defining the boundaries of the study. Chapter two contains a review of past research on the topics covered in this study. In this section, some important findings of past studies are outlined, while attention is paid to their methodological concerns. A special feature of thhhis literature review is the emphasis placed on bringing to the fore findings of knowledge transferring and characteristics of employees. The research methodology and framework of the study are presented in chapter three. Key areas addressed therein include the case study research strategy employed, units of analysis, the method of sampling, methods of data collection, the quality of research strategy and the research framework. The foundation for this study as developed in the preceding two sections leads to the development of a conceptual framework as a piece of original work of the researcher, which has strengthened the researchers endeavor to contribute to the existing body of knowledge on the subject. Chapter four and five which are based on Knowledge transferring and transferred employees. Chapter Four explains the methodology, adopted in this study in order to empirically test the research hypotheses. Moreover, the chapter presents findings, statistics outcomes and facts. Chapter Five comprises of a review of data collection, followed by a detailed review of the factor analysis.in addition, objectives of the study, evaluate hypotheses and limitations are presented. And, it presents the similarities and differences between knowledge transfers and employee transfers with special reference to the organization of knowledge transferring function and job transfer. Chapter six presents findings and concluding remarks of the study. Latter part of this section documents presents limitations of the study, inviting the attention of academics, researchers, scholars and practitioners to understand how they could plan future research taking cognizance of these limitations. Potential research would essentially contribute to broadening the horizons of the body of knowledge and wisdom on knowledge transferring as an academic and professional discipline. Literature Review 2.0 Introduction to the chapter The purpose of this chapter is to present the literature review related to the concepts incorporated in the study. This chapter consists of sections such as definition of knowledge, definition of knowledge management, types of knowledge, importance of knowledge, knowledge and organizational performance, knowledge transferring, knowledge transferring and competitive advantage, factors affecting for knowledge transferring, effectiveness of knowledge transferring and knowledge transferring in financial institutions and Individual characteristics and knowledge transferring. Meanwhile 2.1 Knowledge and Knowledge transferring Knowledge is fluid mixes of framed experience, values, contextual information and expert insight that provides a framework for evaluating and incur pirating new experiences and information or Knowledge is about people, relationship. Communities and new ways of working Tan (2010) reviewed that knowledge are the two types of knowledge such as explicit knowledge and tacit knowledge. Information systems which achieved by organization named as explicit knowledge and tacit knowledge refers to informal knowledge which gain through work experiences. Most scholars divide knowledge into two types such as explicit knowledge or information, and tacit knowledge or know-how (Hussain. Lucas. and Ali., 2004). The key to knowledge is capturing intellectual assets for the tangible benefits for the organization. As such, imperatives of knowledge is to transform knowledge to add value to the processes and operations of the business, leverage knowledge strategic to business to accelerate growth and innovation and use knowledge to provide a competitive advantage for the business. (Hussain. Lucas. and Ali., 2004). Knowledge management is an organizational discipline bridging information demand and supply in support of learning processes within organizations (Curado.n.d.). Knowledge management enables the communication of knowledge from one person to another so that it can be used by the other person. (Hussain. Lucas. and Ali. , 2004). Knowledge transfer (KT), knowledge retention (KR), and knowledge utilization (KU) are identified as components of knowledge management systems.( Gayton, 2009). Knowledge transfer revealed by Makino (1990) typically has been used to describe the movement of knowledge between different units, divisions, or organizations rather than individuals. This is described Tan,(2010) and Disterer (2001) by stating Knowledge transferring can be defined as a social interaction culture involving the exchange of employee knowledge, experiences and knowledge through the whole department or organizations. However, Gayton (2009) concluded knowledge transferring is not only between departments. The process of knowledge can be transferred through one channel to another channel such as group, department and branch. Therefore, Knowledge transfer means knowledge sharing within an organization between individual and groups (Trautman,2011). 2.2 Significance of Knowledge transferring Most knowledge organizations, uses multiple knowledge management tools to transfer knowledge. With the result of knowledge transfer any organization that competes with other organizations in the marketplace on quality, price, or customer loyalty. (Schlomer, Anderson and Shaw,1997). Due to the, emergence of personal networks and applications, knowledge transferring and capturing are becoming more on-demand. And, Organizations must continuously update their knowledge resource to stay in the competition (Bhatti, Zaheer and Rehman, 2010). Knowledge transferring is necessary for companies because what worked yesterday may or may not work tomorrow because, market needs are changing rapidly. Knowledge is a vital factor for financial institutions. Use the knowledge management system enhances continuous improvement and innovation to gain competitive advantage. Demands from customers and Human resources require transfer knowledge within the organization (Rasoulinezhad,n.d.). 2.3 Factors that Influence Knowledge Sharing There is a scarcity of research specifically in the area of knowledge sharing between individuals in organizations, and empirical evidence has just begun to uncover some of the complex dynamics that exist in processes related to knowledge sharing. Based on a review of theory and research related to knowledge sharing, the following have been identified as the major factors that influence knowledge sharing between individuals in organizations: the nature of knowledge, motivation to share, opportunities to share, and the culture of the work environment. 2.3.1 Nature of Knowledge Knowledge by its very nature exists in both tacit and explicit forms. However, with the increasing recognition of the importance of knowledge in organizations, different types of knowledge have also begun to be valued differently within organizations. These two characteristics of the nature of knowledge, tackiness and explicitness of knowledge, and the value attributed to knowledge have a significant influence on the way knowledge is shared within organizations. 2.3.2 Tacit and explicit knowledge. The dominant classification of knowledge in organizations divides it into two types, tacit and explicit. The critical differences between these two types are found in three major areas codifiability and mechanisms for transfer, methods for acquisition and accumulation, and the potential to be collected and distributed (Lam, 2000). The concept of tacit knowledge was first presented by Polanyi (1966), who argued that a large part of human knowledge cannot be articulated and made explicit easily. Tacit knowledge can be thought of as the know-how that is acquired through personal experience (Nonaka, 1994). It is therefore not easily codifiable and cannot be communicated or used without the individual who is the knower. Tacit knowledge also tends to be sticky in nature. Lam (2000) defined stickiness as the incremental expenditure involved in moving knowledge in a form that is useable and easily understood by the information seeker. According to Lam, stickiness for the knowledge supplier c omes from the tackiness of the knowledge that has to be shared, whereas absorptive capacity creates stickiness for the knowledge user. Therefore, tackiness of knowledge is a natural impediment to the successful sharing of knowledge between individuals in organizations. Explicit knowledge, on the other hand, can be easily codified, stored at a single location, and transferred across time and space independent of individuals (Lam, 2000). It is easier to disseminate and communicate (Schulz, 2001). Explicit knowledge therefore has a natural advantage over tacit knowledge in terms of its ability to be shared relatively easily among individuals. However, just because explicit knowledge is easily transferred across individuals and settings, it should not be assumed that it is easily shared in organizations. Weiss (1999) argued that the ability to articulate knowledge should not be equated with its availability for use by others in the organization. To support this point, he made a distinct ion between explicit knowledge that is easily shared with that which is not by introducing the notion of rationalized knowledge and embedded knowledge within the context of professional services organizations. Rationalized knowledge is general, context independent, standardized, and public. Weiss suggested that because this knowledge has been separated from its original source and is independent of specific individuals, this knowledge is readily shared and available to all those who seek it. Embedded knowledge, on the other hand, is context dependent, narrowly applicable, personalized, and may be personally or professionally sensitive. Therefore, explicit knowledge that is embedded in nature is not likely to be easily shared among individuals. However, knowledge must be seen as more than just explicit and tacit in nature. Regardless of whether knowledge is tacit or explicit, the value attributed to it also has a significant impact on whether and how individuals share it. 2.3.3 Value of knowledge Knowledge is increasingly perceived as being commercially valuable, and its ownership is being recognized by both individuals and the organizations they work in (Brown Woodland, 1999). When individuals perceive the knowledge they possess as a valuable commodity, knowledge sharing becomes a process mediated by decisions about what knowledge to share, when to share, and who to share it with (Andrews and Delahaye, 2000). In situations in which it is valued highly, individuals may tend to claim emotional ownership of knowledge (Jones and Jordan, 1998). This sense of ownership comes from the fact that in several settings, individual knowledge is linked to status, career prospects, and individual reputations (Andrews and Delahaye, 2000). The sharing of such knowledge is a complex process, and Jones and Jordan (1998) found that it involved, among other things, the extent to which individuals perceived themselves to be valued by their organization. Certain types of knowledge are valued highly by both individuals and organizations. For example, knowledge related to research and development is valued highly because of its commercial and scientific value. Research suggests that in research and development organizations, creative power resides in a relatively small number of individuals (Armbrecht et al., 2001), creating issues of ownership particularly because it is linked to tangible outcomes such as creation of new products, patents, research grants, and individual incomes. Therefore, in highly competitive environments or those in which knowledge has high commercial value, there exists a dilemma resulting from contradictory incentives to share knowledge and to withhold it. In organizations in which an individuals knowledge becomes his or her primary source of value to the firm, sharing this knowledge might potentially result in diminishing the value of the individual, creating a reluctance to engage in knowledge-sharing activities. Professionals, in particular, tend to guard their knowledge as they perceive that their own value to the firm is a product of the knowledge they possess (Weiss, 1999). Any reluctance to share knowledge is further heightened in situations characterized by uncertainties and insecurities, such as mergers and acquisitions (Armbrecht et al., 2001). 2.3.4 Motivation to Share Knowledge is intimately and inextricably bound with peoples egos and occupations and does not flow easily across the organization. According to Stenmark (2001), People are not likely to share knowledge without strong personal motivation. Motivational factors that influence knowledge sharing between individuals can be divided into internal and external factors. Internal factors include the perceived power attached to the knowledge and the reciprocity that results from sharing. External factors include relationship with the recipient and rewards for sharing. Knowledge as power, the increasing importance given to knowledge in organizations, and the increasing value attributed to individuals who possess the right kind of knowledge are conducive to creating the notion of power around knowledge. If individuals perceive that power comes from the knowledge they possess, it is likely to lead to knowledge hoarding instead of knowledge sharing. According to Brown and Woodland, individuals use knowledge for both control and defense (Armbrecht et al., 2001).In a competitive environment, withholding knowledge from those considered competitors is often regarded as being useful to attaining ones goals. Power politics is therefore an important aspect of knowledge sharing in organizations (Weiss, 1999). Blackler, Crump, and McDonald (1998) concurred with the notion that knowledge can be perceived as a source of power in organizations. They suggested that because knowledge is always situated within a particular context, it is natural that culture and power dynamics within the context affect the way knowledge is perceived and used. Reciprocity or the mutual give-and-take of knowledge can facilitate knowledge sharing if individuals see that the value-add to them depends on the extent to which they share their own knowledge with others. Reciprocal acts as those in which individuals help others and share information without negotiation of terms and without knowledge of whether or when the other will reciprocate. Reciprocity as a motivator of knowledge sharing implies that individuals must be able to anticipate that sharing knowledge will prove worthwhile (Weiss, 1999). It is the expectation that those involved in sharing knowledge will be able to acquire or benefit from some of the value created by their involvement. Empirical evidence for the relationship between reciprocity and knowledge sharing indicates that receiving knowledge from others stimulates a reciprocal flow of knowledge in the direction of the sender both horizontally and vertically in organizations (Schulz, 2001). Support for the relationship between reciprocity and knowledge sharing was also found by Hall (2001). Reciprocity is also thought to be a motivator of knowledge sharing in communities of practice where knowledge sharing results in enhancing participants expertise and providing opportunities for recognition. 2.3.5 Opportunities to Share Opportunities to share knowledge in organizations can be both formal and informal in nature. Formal opportunities include training programs, structured work teams, and technology-based systems that facilitate the sharing of knowledge. Stenmark (2001) referred to these asformal interactions, and Hall (2001) called them purposive learning channelsthose that are designed to explicitly acquire and disseminate knowledge. Informal opportunities include personal relationships and social networks that facilitate learning and the sharing of knowledge Weiss (1999) referred to these informal opportunities as relational learning channels. Purposive learning channels provide individuals with a structured environment in which to share knowledge. Armbrecht et al (2001) identified some formal interventions that facilitate knowledge sharing in organizations, from basic instructions to share knowledge, to more complex interventions such as Nominal Group Technique and the Delphi Technique. However, knowledge shared through formal channels tends to be mainly explicit in nature (Yang ,2007) The advantages of purposive learning channels are that they are able to connect a large number of individuals and they allow for the speedy dissemination of shared knowledge, especially through electronic networks and other technology-based systems. Empirical evidence for successful knowledge sharing through formal channels was found by Chini (2004) and Tan (2010) Although purposive learning channels play an important role in facilitating knowledge sharing, research indicates that the most amount of knowledge is shared in informal settings through the relational learning. Relational channels facilitate face-to-face communication, which allows for the building of trust, which in turn is critical to sharing knowledge. These informal opportunities to interact with other people help individuals develop respect and friendship, which influences their behavior Lim (2005) called this relation al embeddedness the kind of personal relationships that people develop when they interact with each other over a period of time. 2.3.6 Culture of the Work Environment The factors described above are important to understanding the manner in which knowledge is shared between individuals. However, all of these factors are influenced by the culture of the work environment the culture of the subunit and/or the culture of the organization at large. Organizational culture is increasingly being recognized as a major barrier to effective knowledge creation, sharing, and use (Weiss,1999). Organizations are essentially cultural entities Lim (2005) and therefore, regardless of what organizations do to manage knowledge, the influences of the organizations culture are much stronger. Dyer (1998) defined culture as a pattern of basic assumptions that is developed by a group as they grapple with and develop solutions to everyday problems. When these assumptions work well enough to be considered valid, they are taught to new members as the appropriate way to approach these problems. Schein further added that a key part of every culture is a set of assumptions about how to determine or discover what is real and how members of a group take an action, how they determine what is relevant information, and when they have enough of it, to determine whether to act and what to do. Culture is therefore reflected in the values, norms, and practices of the organization, where values are manifested in norms that in turn shape specific practices (Kasim, 2008). Weiss (1999) identified certain aspects of organizational culture that influence knowledge sharing culture shapes assumptions about which knowledge is important, it control