Company analysis - Bancolombia Essay Example | Topics and Well Written Essays - 4000 words

Company analysis - Bancolombia - Essay Example The different culture and characteristics of the three banks participated in the merger were not easy to be managed. The recent retirement of the firm’s CEO would set the future of Bancolombia in risk, if the new CEO would not be able to understand the firm’s culture but also the employees’ needs. Table of contents Executive Summary 2 Problem Statement 4 Supporting Evidence 4 Key decision criteria 7 Recommendations 8 References 11 Appendices 12 Problem Statement The development of the problem statement in regard to this study requires the reference to a series of events that led to the formation of Bancolombia, as in its current form. Bancolombia is an organization resulted from two mergers. In its initial form, Bancolombia resulted by the merge between the Banco Industrial Colombiano (BIC) and the Banco de Colombia. The above merger took place in 1998 and led to the establishment of Colombia’s most powerful firm in the banking industry (case study, p.3). Bancolombia, the firm resulted by the above merger, reached a market share of 11.5% (case study, p.3). ... The identification of effective HR management practices was of critical importance in Bancolombia, as a business entity established in 1998. In the context of the second merger, a similar issue has appeared. The second merger took place between three firms of the Colombian banking industry: Bancolombia, Conavi and Corfinsura. These firms used different approaches in regard to the management of their HR: a) in Bancolombia, emphasis was given on cooperation for ensuring that organizational targets in regard to profitability are met; the ‘Added Value System, (ADV), a customer profiting strategy’ (case study p.4) was used in Bancolombia to achieve this target. In addition, managers in Bancolombia have promoted a scheme called ‘Cultural Transformation Workshops’ (case study p.3) for ensuring that employees in Bancolombia are fully aware of the culture of the firm; b) in Conavi, employees’ needs were highly valued; in fact, ‘high job stability and con tinuous interaction between employees and managers’ (case study p.5) have been the key characteristics of the firm’s HR strategy; c) in Corfinsura employees had to deal mostly with ‘large corporate clients’ (case study p.5); therefore, most of the firm’s employees were experts in investment banking services (case study p.5); Bancolombia, in its final form, had to deal not only with investment banking services but also to retail services. This problem has been highlighted by managers in Bancolombia, after the firm’s merger with Corfinsura. According to the above, this study’s research problem could be described as follows: would Bancolombia be able to secure high employee performance taking into consideration the important differences in the HR strategies of the three firms participated in the