An in-depth analysis of the existing processes and functions was necessary to identify the bottleneck and adopt innovative approach to enable increased employee productivity and improved customer service. The management of banks and financial institutions shifted their focus to recruiting qualified professionals and training them to meet the new market demands that is based on knowledge transfer. The growth and emergence of knowledge based economy has emphasised the significance of training within organizations.
The existing business environment has increased the need for creativity and proactive behaviour from employees. Businesses require skills for doing the job and in current market conditions advancing technology at rapid pace makes it imperative to learn new skills and upgrade one’s knowledge to adapt to changing market conditions. Training and development programs provide the employees with the opportunity to learn or upgrade their skills according to the business needs and requirements. This has made learning and personal development programs for managers and staff highly critical within an organization.
A successful business organization has a highly motivated and responsible workforce that believes in the company’s vision and objectives and they are willing to learn new skills to enhance their performance and meet changing market demands. “To be dynamically stable, organizations need to build their success of future revenue by maximizing the generation and flow of ideas and knowledge” (Holbeche, 2005). One of the core sectors of managerial strategy will include employee development programs and workshops to train the managers on new technology, its application and usability to ensure prompt and efficient customer service.
Employee training and development programs can help in improving the quality of service and sales skills and help the company in retaining its market shares. It is widely accepted that knowledge about customers, their preferences, and their behaviours are key to devising strategies related to marketing of products and services and assisting the companies in adapting new functionality and features within the deliver products to meet customer expectation.
Technology tools like CRM (Customer relationship management) and ERP (Enterprise resource planning) have made their distinct presence felt in almost all kinds of industry and commerce. These tools based on the principles of knowledge management have leveraged the company adopting it in terms of improving the quality of information delivered and accessed by the employees. Another critical aspect of the managerial strategies includes incorporation of the service value chain.
Organizations perform value chain analysis to improve operational efficiency and organizational performance. “Value chain examines the full range of activities required to bring a product or service from its conception to its end use, the firms that perform those activities in a vertical chain and the final consumers for the product or service” (BDS, 2008). The value chain analysis focuses on the input, processing and output operations that add value and efficiency to the organization.
The process takes into account the cost of acquiring inputs, processing of inputs into finished goods or services vis-a-vis the market price that the consumer is willing to pay for these goods or services. “In addition to costs, a value chain analysis must consider productivity and the input-conversion ratio, which plays a critical role in determining whether a firm or industry is profitable” (FIAS, 2007).