When Employees are not empowered enough, delivery of final product or service could be delayed.

1. Fundamentals of Management
and Leadership MN7121
London Metropolitan University
Powerless Business Units -- Asia Banking
Corporation PLC
Buddhika S Ekanayake –

2.  A Public Bank Liability Company incorporated in
Sri Lanka on 6th March 1995 under the
Companies Act No.17 of 1982 and re-registered
under the Companies Act No.07 of 2007.A
licensed commercial bank under the banking Act
No.30 of 1988 and listed in the Colombo Stock
Exchange.
 Branch network consisting of 83 branches island
wide.
 Total staff - 1458
 Total asset base - 128 Billion rupees.
Banks Annual report – 2016/2017
Overview of the Bank

3.  Business units are setup to give banking services
to the customers and to Give solutions to their day
today banking related problems.
 Customers expect very efficient and effective
solutions from the business units
 They expect speedy service and solutions.
 They tend to create better business relationships
with business units.
Customer Expectation

4. Identified Problem
 There is a substantial delay in getting things done
through business units and customers has to wait
longer periods to get suitable solution for their
problems and issues.

5.  Business units have not given relevant authority to take
timely decisions.
 Managers have given very less delegation authority to take
decisions on day today business.
 Employees are not empowered to do majority of tasks
 Lengthy process implemented by the Management
Root Causes

6.  Time consuming for upward and downward communication
and decision making and redundancy of work
 Business opportunities of the customer may have gone,
due to delay in Credit related decisions
 Unsatisfied customers will spread unfavorable news about
the bank and competitors will get the advantage on it.
 Market share will lost and it will be a Measurable financial
and reputational impact.
Impact to the Business

7.  Delegation is the transfer from a principal to an agent and
sufficient means to enable the agent to discharge the duties
to meet the principal’s expectations. It has the potential to
improve performance but presents a challenge of getting
the agent’s commitment to meet the principal’s
expectations. (Venton, 1997)
 According to Koontz and Weihrich (2003), delegation is the
organizational process of transferring authority from
superior to subordinate. It can empowers a subordinate to
make comitments, use resouces and take decision in
relation to duties assigned to him. No
organisation can function effectively
without delegation.
Related Literature

8.  In the present context, Empowerment seen as a qualitative
approach to the delegation of authority throughout an
organisation,combining both practical and idealistic values
about the best use of people at work. (Cole, 2001)
 Empowerment being treated as a cultural excersise in which
the people are encouraged to take personal responsibility for
improving the way they do their work through delegating the
responsibility and decision making as far down the line as
possible. ( Clutterbuck,1994)
Related Literature

9.  Delegation -
Hershey and Blanchard's Leadership model
According to the Hershey and Blanchard’s situational Leadership
theories there are for stages 1. Telling 2. Selling
3. Participating 4. Delegating
This model emphasized that there is no unique
leadership style that effective for all situations.
Therefore leaders should change their leadership
Style according to the followers development level
Adopted from
( Hershey, Blanchard and Johnson, 2001)
Theoretical Background

10. Four leadership styles Presented
Theoretical Background - Delegation
Telling –
Leader directly
tells the group
what to do and
this approach is
less
collaborative
and more
directive in
nature.
Selling -
Team members
are still
directed and
little
collaboration is
permitted.
Participating –
Leader
attempts to
build
relationship
with the team
and will work
as part of the
team.
Delegating –
Leader
passes more
responsibility
on team
members of
specific
projects.

11. Hershey and Blanchard's Leadership model maps Maturity Levels
Theoretical Background - Delegation
Maturity Level 1 –
Extremely less
experienced workers.
Very low knowledge
Maturity Level 2 – Still
inexperiece but good
knowledge about the
skills.
Maturity Level 3 –
Members are excited to
work on the job and
skillful can do a job
without any help
Maturity level 4 –
They are capable of
handling any task,
resposible and confident
about the task.

12.  Empowerment – Douglas McGregor - Theory X and Theory Y
 According to the Theory X and Theory Y defined by Douglas
McGregor in his book "The Human Side of Enterprise." in 1960,
says
 Theory X – Assumes that employees have little drive to work, do
not take responsibility and they Need close supervision.
 Theory Y – Assumes that workers can exercise self direction and
self control, dedicated to achieve organizational goals.
Theoritical Background

13.  McGregor’s theory X style management is more related to
Autocratic Style of Management.
 Theory Y is more related to democratic management style.
 There are Two fundamental approaches to managing people.
Theoritical Background
Managers Influenced by Theory X
generally get POOR results
Liberal Managers Use theory Y
which produces better results
and Performance

14.  Delegation of authority is required to perform well and
achievement of organizational goals.
 Delegation to be transferred to the identified employees who can
take responsibility and reliable in doing task.
 Empower suitable employees to take decisions on time in order to
address customer issues.
Recommendations

15. Lessons Learned
 Staff of Business units needs
empowerment and delegation of work
related authority in order to give efficent
and effective service to Customers and
Stake holders etc.
 It will help to grow business units to their
Customer base, turnovers and profitability
and ultimately it will increase the overall
bank’s bottom line.
Lessons Learned

16. References
Cole, G.A. (2001), “Management Theory and Practice.” 5th Edition, Martins the
Printers Limited, Berwick. Pp 186-191.
Clutterbuck, D.(1994) “The Power of Empowerment”, Kogan Page, London.
Hersey, P., Blanchard, K,. and Johnson, D.E. (2001), Management of
Organization behavior: Leading human Resources (8th Edition). Upper Saddle
River, New Jersey: Prentice Hall.
Koontz, H and Weihrich, H (2003). “Management.” 9th Edition, Mc-Grew Hill Book,
New York. Pp 391-460.
McGregor, D.(1960).”The Human Side of Enterprise”, Mc-Grew Hill book, New York.
Pan Asia bank (PLC) “Annual report 2016, Numbers Talk”, Emagewise, Gunarathna
Offset (PVT) ltd, Colombo.
Venton, J.P.(1997). ‘A General Theory of Delegation, Accountability and
Empowerment’, The Canadian journal of Program Evaluation ,Vol .12 ,
No. 2, PP. 163-188.

17. Thank you!
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