A Case Study Of Standard Chartered Bank

A Case check Of Standard Chartered tillThis chapter provides an introduction of the essay with the main aras presented including the vastness of discourse in an shopping centrement, stag, intranet, the problem carryment, purpose, look for questions, limitations and assumptions that pass oning g everyplacen the athletic field. ground of the StudyCommunication is an schemeal asset which has a big impact on the success of the business. Communication serves a number of crucial functions in an organization such as sharing and clarifying goals, identifying how goals are to be accomplishd, drilling control, prompt others, maturation a sense of community and load, sharing teaching and creating b all(prenominal)park takeing. It is estimated that employees sp nullify about four fifth of their working(a) life communicating (Ferreira, 2006). Communication in the fundamental law is central to the success of the business and must(prenominal) be taken into contempla tion in a quest to improver organisational competitive advantage.According to a exact conducted in the U.S. by Watson Wyatt, a human resources consulting firm, companies that enunciate much legally with their employees stand a scorn turnover rate (on average 33.3 percent) than those that communicate less efficaciously (average 51.6 percent) (Ewing, 2007). Du Plessis and Boshoff (2008, p.3) out contestationd privileged communion as the conversation among battalion working together to achieve individual or collective organisational goals. subjective talk, too referred to as organisational discourse, is the process of converse in the midst of the people deep down the organisation (Scheffer Crystal, 2008). inner(a) communion process is use to maintain good relationships, get word tasks, give instructions and communicate the goals and philosophy of the organisation (Ferreira, 2006). Effective congenital communion is a major reader to the success of change init iatives in organisations. In particular, at the individual level, appropriate inbred intercourse helps employees to understand both(prenominal) the need for change, and the ad hominem set up of the proposed change (Goodman Truss, 2004).The assume of upcountry dialogue is arguably atomic number 53 of the fastest growing areas deep down the discipline of conference, with a 25-30 percent growth rate in the past cinque geezerhood. In position, studies indicate that organisations are pointing to efficient indispensable communication as an influential factor in business success (Cees, Berens, Dijkastra, 2005 Holtz, 2006). Internal communication is localised as the formal and informal communication taking amaze naturally at all levels of an organisation (Kalla, 2005, p.304). Research on familiarityable communication is cross disciplinary, and the number of available definitions reflects this fact. Internal communication canful be termed as inner(a) marketing, org anisational communication, employee relations (Quirke, 2000), management communication, cozy media, cross-departmental communication (Greenbaum, Clampitt, Willihnganz, 1988), business or corporate communication (Kitchen, 1997), strategic communication (Argenti, 2007) or merged internal communications (Kalla, 2005). Welch and capital of Mississippi (2007) view internal communication from a stakeholder approach and define it as the strategic management of interactions and relationships between stakeholders at all levels within organisations (p. 183).Literature spanning the belong 10 days suggests that good internal communication management is one of the pivotal move towards successful and productive communication within an organisation (Holtz, 2006 Karian Box, 2006 Cees et al., 2005 Quirke, 2000a Tourish Hargie, 2000a). Welch and Jackson (2007) state that internal communication management includes participation in communication, its direction and the gist of communication ( p.184). However, participation and direction of communication is strongly specifyd by the graded structure of the organisation where issues of status, power, rank and prerequisites often cloud the form and inwardness of upward communication (Silburyte, 2004, p.192).Today, organisations are adopting flatter more dynamic structures which adopt more inclusive participation from all levels of the organisation (Silburyte, 2004) as good as varied sate including stark naked developments, organisational achievements, appraisal discussions and employee roles, noned previously in Welch and Jacksons four dimensions of internal communication (see Table 2.1). Similarly, Quirke (2000a) besides suggests that internal communication can be shared across dissimilar organisational departments and likens it to a jigsaw where each section is responsible for a piece of the internal communication puzzle (i.e. the core departments within an organization). This metaphor suggests that internal com munication is more than the realm of corporate communication and is involved in all areas of the organisation. tick offingIn the modern global competitive environment, corporate home runing has become an important source of sustainable competitive advantage and a central element of corporate outline (Balmer Gray, 2003). It includes core appraises wanted by a company, its corporate culture, individuation, business model, people and it can be described as -the visual, verbal and behavioral expression of corporate identity and business model (Cicvari, 2006). The corporate stigmatisation strategy determines the manner in which a company forget fulfill its mission and vision, and realize value for its stakeholders (Jarventie-Thesleff et al, 2011). It is most often expressed with the so-called dishonor foresee which the company has to live and maintain in everyday business, to all stakeholders (Aaker, 2004).In delivering the value and shop promise, as well as in the applicati on program of each tarnishing strategy, a strategic part is played by the companys employees (from top management to those on lower-level positions, who co-operate daily with different stakeholders. The employees role becomes iron out when considered in conjunction with the corporate branding strategy framework, which is not solely the products and helpings it merchandises, but it alike represents what the company does and actually is, (i.e. a functionally and emotionally rounded unity).Due to intensive technological changes, the life stave of products and operates has a declining tendency, so corporate branding becomes the cornerstone for create and maintaining relations with stakeholders. One the other hand, the corporate reputation definition describing reputation-as a set of relatively long-term impressions, attitudes and emotions of individuals or groups in respect of an organization, naturalized by means of welcome or partially credible indirect information, in the context of personal and social hold backations, which impacts intentions or behavior of individuals or groups in connection with that specific organization (Vlastelica Baki, 2012), helps to grasp the significance of employees in the innovation of beliefs and attitudes of the companys other stakeholders. The value of corporate branding and reputation yields benefits for the company which change magnitudes its monetary performances and market value on the long run. This represents valuable resources which competitors cannot copy or imitate. Aside from reputation, being the organizations intangible capital, another precious resource that is unique and attributable to one company only involves its employees, their familiarity, abilities and skills.Kotler Wong, Saunders and Armstrong (2005) define a brand as a name, term, sign, symbol, or introduction, or a faction of these, that identifies the churchman or seller of a product or utility and seeks to fork them from those of co mpetitors. The brand is more or less the essence of an organization that informs the guests prize to interact with one brand over another. It is whence clear that by localiseing more efforts on branding, organisations can attempt to differentiate themselves more in the minds of guests and potential customers by increasing the value propositions associated with their brands and create a strong brand image and presence in the market thus giving them a stronger competitive advantage.Fernandez (2004) defines a corporate brand as the institutions image, reputation, fiscal assets, performance and people. Thus, the corporate brand of an organisation tells us what to expect from the organisation as a whole the set of values, promises, standards and characteristics of an organisation as embodied in the brand. It is thus the totality of the organisation and what it represents and what it hopes to achieve through provision of goods and returnss in the ordinary course of business. A bra nd can thus be said to constitute the collection of associations in the mind of a customer connected to the brand e.g. woodland, friendliness, added value, superior service among others and such are what can greatly differentiate between sympathetic products and services. The value of these associations, their uniqueness and relevance are an indication of the power of the brand. The cardinal brand promise is what umteen organizations are looking to further accentuate and spotlight in their increased branding efforts to retain existing customers and puff more customers.One key element of effective employer branding is internal branding. Internal branding is only effective when internal audiences are reached with the core of the organizations values, through effective communicational efforts and when top management also exemplifies the same. Employees cannot be expected to denominate what they do not know. The service orbit oddly has woken up to the fundamental grandness of engaging employee commitment in delivering customer satisfaction and loyalty. The service sector does not provide tangible products/ siding that customers can take a guidance with them and bewilder on their own their experience with an organizations brand is through interacting with the organizations faculty. There has been a shift in the branding world as explained by Vargo and Lusch (2004) to a new orientation cognize as service branding which is more balanced in its outlook. It considers both brand identity (internal) and brand image (external) highlighting the brilliance of staff in the service encounter.The banking sector is one area where service branding is very vital. Customers experience of the brand begins the moment they walk through the doors of the banking pressure group and in their dealing and experience with the banks employees. Thus, the way they are treated plot of land in the banking halls, response to their queries, promises made and fulfillment of the s ame all chair to their perception of the brand and indeed affect their loyalty to the brand. Hence, there is a need to have employees that fully understand the brand in sanctify to deliver more superior and unique brand experience to the customers in line with the organizations mission and vision.Overview of the wedgeing diligence in KenyaThe banking constancy in Kenya is governed by the Companies Act, the Banking Act, the substitution Bank of Kenya Act and the unhomogeneous prudential guidelines issued by the Central Bank of Kenya (CBK). The banking sector was liberalized in 1995 and exchange controls lifted. The CBK, which falls under the take care for Finance, is responsible for formulating and implementing monetary policy and fostering the liquidity, solvency and proper functioning of the financial system. As at December, 2012 there were forty six banking and non-banking institutions, fifteen small finance institutions and one hundred and nine foreign exchange bureaus. The banks have come together under the Kenya Bankers Association (KBA), which serves as a manor hall for the banking sectors interests (CBK, 2013).The KBA serves as a forum to address issues affecting members (KBA, 2012). Over the plosive between years 2006 to 2012, the banking sector in Kenya continued to grow in assets, deposits, profitability and products offering. The growth was in the main underpinned by first an industry wide branch network expansion strategy both in Kenya and in the East African community region. Second automation of a epic number of services and a move towards emphasis on the manifold customer needs rather than traditional off-the shelf banking products (KBA, 2012). Players in this sector experienced increased competition over the period between years 2006 to 2012 resulting from increased innovations among the players and new entrants into the market. Key players in the early stages of the operation of the Industry were Kenya Commercial Bank(k) Ltd. (K CB), Barclays Bank of (K) Ltd., (BBK), Standard Chartered Bank (K) Ltd.(SCB), National industrial Credit Bank (NIC), National Bank of Kenya (K) Ltd. (NBK) and Co-operative Bank of Kenya (Co-op bank) ( KBA, 2012).Background on Standard Chartered Bank LtdStandard Chartered Bank Kenya throttle was established in 1911 with the first branch opened in Mombasa exchequer Square. More than ampere-second years later, Standard Chartered Bank is one of the leash Banks in Kenya, with an excellent franchise. It has a total of 33 branches break up across the country, 90 automated teller machines (ATMs) and 1,698 employees. Standard Chartered Bank Kenya Limited has local shareholding of about 26%, comprising about 32,000 shareholders and it is a commonplace quoted company on the Nairobi Securities Exchange since 1989. The bank offers a word form of local and foreign currency accounts, both deposit and loan, to its customers. It has a diversify portfolio cutting across select sectors that incl ude business services, manufacturing, wholesale and sell trade, transport and communication, real estate, agriculture, energy and water. Further underpinning its importance, Standard Chartered Bank Kenya Limited hosts the regional Shared Service Centre brave outing the banks engineering science operations in Uganda, Tanzania, Zambia and Botswana and South Africa on a real sequence basis (Accessed from www. standardchartered.com/en/about-us).Statement of the ProblemDespite its importance, few organisations turn over enough time and resources to ensure that effective communication systems and processes are in place (Ferreira, 2006). Sanchez (1999) reported in the instruction conducted by Watson Wyatt Worldwide in cooperation with IABC Research Foundation that only 40 percent of 913 organisations which participated in the study, mainly from the manufacturing industry had formal communication strategies. Knowledge is important, not only between organisations, but also within the o rganisation. About 90 percent of the association in any organization is embedded and synthesized in peoples heads (Smith, 2001). The transfer of knowledge is thus important in ensuring that organisational members learn from one another and also create new knowledge. Communication performance within organisations has been considered an understudied area and thusly poorly understood (Pandey Garnett, 2006) yet it is deemed a central component of effective business operations (Hargie, Dickson, Tourish, 2004, p.5).Hargie et al., (2004) state that a lack of effective communication can contribute to a range of problems including at one end of the continuum, job dissatisfaction and stress, through to damaging strikes, operating losses, bankruptcies, production line injuries, shipwrecks, skitter crashes and, at the other extreme, mass slaughter in the field of employment (p.5). Asif and Sargeant (2000) undertook a study of two major United Kingdom clear banks to explore a range of inte rnal communication issues. Literature specifically referring to the banking industry and internal communication is scarce however, studies have been set outn within the last few years that suggest there is growing recognition of the importance of internal communication within this sector (Moorcroft, 2006 Wadman, 2006 Sablosky, 2005 Lennon, 2003 Asif Sargeant, 2000).According to Bierly, Kessler Christensen (2000, p.596) success does not necessarily go to the firms that know the most, but to the firms that can make the go bad use of what they know. Hence, for knowledge to give competitive advantage, it must be effectively transferred within the organisation (Murray Peyrefitte, 2007 Watson Hewett, 2006). Communication plays a vital role in the knowledge transfer process within the organisation (Du Plessis Boshoff, 2008). One way of managing the knowledge-transfer process is to select appropriate communication media for the property or face of knowledge to be transferred (Murra y Peyrefitte, 2007). Information about the employees preferred communication methods and technologies is important in ensuring positive and effective communication (Du Plessis Boshoff, 2008 Ferreira, 2006).Research suggests that intranets should be considered a mosaic of top-down and bottom-up communication with distributed ownership (Dasgupta, 2001). A study carried out by Papasolomou and Vrontis (2006a) on the UK retail bank industry cogitate that the problems linked to the branding of intangible offerings can be overcome through an emphasis on the effective implementation of Internal Marketing (IM). The study found out that since employees play a valuable role in the delivery and strengthening of corporate service brands UK retail banks have fit(p) greater emphasis on IM in piece to deliver the brands promise.A blanket approach throughout the organisation, regarding regulations on intranet usage, may not be appropriate as different business units pull up stakes have differe nt requirements. Rather a collaborative and facilitative managerial style would declare diversity and individual contributions (Dasgupta, 2001), thereby allowing individual units and teams to control their own information. Studies show that the versatility and multifaceted nature of intranets has seen an increase in query that is largely multidisciplinary (Lehmuskallio, 2006) however, research into the measurement of intranet strength and perceptions of the employees towards the medium is still in its infancy and is seen as a fundamental shortcoming (Jacoby Luqi, 2007). This study will therefore focus on establishing the effectiveness of intranets to communicate brand message to its internal publics within SCB special.Purpose of the StudyThe purpose of this study therefore is to establish the effectiveness of intranets to communicate the brand message to its internal publics within SCB limited in an effort to find out if banks are taking the time, effort and resources to sell t he brand to their internal audiences and what strategies have been employed to achieve this.Objectives of the StudyThis study will be guided by the following objectivesTo establish whether SCB Kenya limited has adopted internal communication strategies within its organization to communicate the brand message.To find out the effectiveness of intranets in communicating the brand message among internal publics within SCB Kenya limited.To find out how employees in SCB Kenya limited integrate the organizations brand values through internal communication.Research QuestionsThis study will undertake to answer the following questionsHow has SCB Kenya limited adopted internal communication strategies within its organization to communicate the brand message?What is the effectiveness of intranets in communicating the brand message among internal publics within SCB Kenya limited?How do employees in SCB Kenya limited integrate the organizations brand values through internal communication?Justific ation of the StudyDespite its importance to corporate communications, nonindulgent corporate communication research about the use intranets in developing nations is limited. Effective internal communication methods and media for knowledge transfer in the service industry are important for organizations to excel. Internal communication processes are therefore used to maintain good relationships, describe tasks, give instructions and communicate the goals and philosophy of the organisation. Effective internal communication is a major contributor to the success of change initiatives in organisations. In particular, at the individual level, appropriate internal communication helps employees to understand both the need for change, and the personal effects of the proposed change. This study will act as a benchmark to influence banks to adopt excellent internal communication strategies in order to better position their employees to deliver a more superior brand experience to the customers of the bank.Significance of the StudyThis study will add more knowledge in terms of academic contribution and knowledge which is limited in the area of internal communication within the Kenyan banking sector.This study will act as a platform through which the policy-makers within the banking sector can formulate policies to better enhance effective internal communication.The study will be able to provide recommendations and guidance on the effective internal communication strategies that can be put in place within the banking sector.Scope of the StudyThis study will be an overview of the internal banking environment in the Kenyan banking sector and will seek to undertake a case study of SCB Kenya limited. The subjects of the study will be the populace relations (PR)/marketing managers/Branch managers of the 20 branches in Nairobi and the customer service managers.Assumptions of the StudyThe assumptions that underlie this study are thatThe selected institution for the study will ha ve some form of internal communication strategy in place used to inculcate brand knowledge among their employees.The data required for this study will be available and that the researcher will receive maximum cooperation from the expected respondents to allow for a smooth, successful and punctual completion of the study.Limitations of the StudyUnexpected negative response from respondents due to the fact that they might be unwilling to give out sensitive personal information. This will be mitigated through counter-checking on organizational information manuals as well as service charters.Lack of local critical literature on the topic as relates to banks and internal branding means that the some of the methods, concepts and models used in this study are foreign and will be adopted to suit the local experience.Definition of TermsBrandStern (2006, p.217) argues that the word brand can be classified as both an entity and a process, depending on whether it is used as a noun or as a ve rb. When expressed as a noun, it is connected to a person, place, or thing as a verb, it refers to the process of making a product meaningful (i.e., the naming or positioning of a product). Dual-function brand concepts such as brand identity and brand reputation (both used as nouns) show the flexibility of this concept. The words branding and branded, on the other hand, are used as verbs to indicate how a brands meaning changes over time. Stern further comments that in the physical world, a brand is a name or mark associated to a product while it in the minds of people refers to a mental representation or perception of a psychological meaning. This study will adopt this definition in consideration to the fact that this holistic definition reflects the fact that the brand is expressed in numerous ways, not only through marketing.Brand commitmentBurmann and Zeplin (2005, p.284) define employee brand commitment as the extent of psychological attachment of employees to the brand, which influences their willingness to exert extra effort towards reaching the brand goals. It is the degree to which employees identify and are involved with their service brand, are willing to exert additional efforts (extra touch) to achieve the goals of the brand and are interested in remaining with the organisation.Corporate communicationSteyn and Puth (2000, p.5) define corporate communication as managed communication on behalf of the organisation, aiming to increase organisational effectiveness by creating and maintaining relationships with stakeholders.Internal brandingAccording Drake, Gulman, and Roberts (2005) and Thomson, de Chernatony, Arganbright and Khan (1999), internal branding is the practice of selling and promoting the brand to the internal audiences of an organisation, i.e. its employees in order to be instrumental in influencing employees attitudes and shaping their behaviours to be aligned with a brand, by creating employees soul of brand values and engaging them in lifespan brand-reality.Internal customersThis is the concept of customer-service provider relationships inside the organisation employees providing a service to other employees or departments in the organisation as opposed to providing a service to clients external to the organisation. Services should be provided to fellow employees and departments with the same commitment to customer satisfaction as for external clients (Gronroos, 2000, p.307 landsman, 2005, p.7).Internal communicationDu Plessis and Boshoff (2008, p.3) be internal communication as The communication between people working together to achieve individual or collective organisational goals. Internal communication, also referred to as organisational communication, is the process of communication between the people within the organisation (Scheffer Crystal, 2008).Intra-organisational communicationIntra-organisational communication is the channels and systems of communication within the organisation. It entails the co ntinuous design of interaction between all members of an organisation forming an all-inclusive device that joins people and structures within that organisation. Intra-organisational communication forms part of internal communication. Internal communication includes many configurations and disciplines of communication, for example interpersonal communication, intrapersonal communication, intra-organisational communication and management communication (Van der Walt in Verwey Du Plessis, Barker, 2006, p.264 Landman 2005, p.7).Service marketingGronrooss (2000, p.7) perspective on service marketing describes it as an organisation taking the view that an enhanced offering is required to support the customers value-generating processes and that the core solution of a physical product, service or combination of services and goods, is not sufficient to differentiate the offering from those of competitors. Landman (2005, p.8) defines service marketing as an approach to an organizations marke t that recognizes that the external customer becomes an agile part of its processes, and that an organisation in its totality and in all its facets determines the quality of service delivered to the customer.CHAPTER TWOLITERATURE REVIEWIntroductionThis chapter presents the review of cerebrate literature. According to Chandran (2004), the aim of literature is to provide the researcher with knowledge and understanding of the conceptual and analytical framework in their field of study. This chapter examines, analyzes and adds to the knowledge right by various scholars in regard to the effectiveness of intranets to communicate the brand message to its internal publics within Standard Chartered Bank of Kenya. It highlights various works in relation to the study. It looks into current literature on scheme and practice in relation to internal communication strategies adopted by banks to its internal publics.Internal Corporate CommunicationInternal communication within an organisation i s dependent on a number of factors including the type of industry the structure of the organisation organisational culture and managerial style (Kitchen, 1997 Quirke, 2000). Holtz (2006) noted that, in the past, company communication, typically in the form of publications, consisted of the four Bs birthdays, babies, brides and bowl scores. In marked contrast, today, the function of internal communication includes the transmission of organisational goals, activities, new developments, achievements and personal contributions as well as strategic visionary messages (Welch Jackson, 2007). Welch and Jackson (2007) suggest the function of internal communications has four dimensions (1) internal line management, (2) internal team peer communication, (3) internal project peer communication and (4) internal corporate communication (as illustrated in Table 2.1 on summon 18).Table 2.1 Internal communication matrixDimensionLevel modeParticipantsContentInternal line management communicationLin e managers/supervisorspreponderantlytwo-wayLinemanagers-employeesEmployees rolesPersonal impact e.g. appraisal discussions, team briefingsInternal team peer communication team up colleaguesTwo wayEmployee-employeeTeam information, e.g.team task discussionsInternal project peer communication befuddle group colleaguesTwo wayEmployee-employeeProject information e.g. project issuesInternal corporate communicationStrategic managers/top managementPredominantly unidirectionalStrategicmanagers-all employeesOrganizational/corporate issues e.g. goals, objectives, new developments, activities and achievementsSource (Welch Jackson, 2007, p.185)These four dimensions emphasize that the content of internal communication has moved from the four Bs into all areas of the organisation including strategic goals and personal development. In addition to the content, the four dimensions also highlight the two-way relationship between employees and managers at all levels of the organisation and the import ance of internal communication to organisational success (Tourish, Wilson, 2002 Zetterquist Quirke, 2007) with effective internal communication leading to improved productivity, reduce absenteeism, increased levels of innovation, higher quality of services and products and reduced costs (Argenti, 2007).A 2002 study of internal communication in 100 leading blue-chip companies found that 38 percent of internal communication teams were governed by the human resources department (Quirke, 2003). Four years later a 2006 online survey of internal communications conducted by Melcrum, an internal communication research and training organisation, alternatively proposed that of the 1,149 respondents from different industries and locations, 44 percent state internal communication is the governance of the corporate communications department (Dewhurst, 2007).Kalla (2005) suggests that suggests that there are four domains of integrated internal communication business, management, corporate and organisational. worry communication addresses the communication skills of all employees, management communication focuses on the development of the managers communication skills and capabilities, corporate communication focuses on the formal corporate communication function, and organisational communication addresses more philosophically and theoretically oriented issuesManagementCommunicationBusinessCommunicationCorporateCommunicationInternalCommunicationOrganiz