Business Ethics in the Globalised Economy Essay

Business Ethics in the Globalised Economy - Essay Example While, The not-for-profit centers, which normally operates as a voluntary or charitable body has totally different form of administrative frame work . And, finally the government run institutions are the other type of systems that are usually fully funded by the government. The differences in the systems of administration are also reflected in their operations and functional outputs. The charitable hospitals have severe constrains on the resource generation and they mostly depends on the philanthropic contributions. Thus they are unable to attract the best talents in the respective fields which affect the quality of delivery. Bureaucratic set up, feeble decision making process, inadequate doctors and other support personal are the major issues affecting the smooth function ofa governmenthospital. But on the other hand a private hospital often tries to attain the premier position as their revenue is dependent on the patient volume alone. Well established management team, efficient doc tors and other par medical staff are the major attractions of the private hospital. But in the event of a economic slow down, the government hospitals are the least effected and the private hospitals often tend get affected at a higher magnitude. Thus unethical practices are said to be more possible and takes strong roots in these circumstances. And hence necessary pragmatic ethical policies need to be in place to ensure a well acceptable medical delivery system (Health Care). Due to these reasons the health care industries are chosen for the detailed analysis on the ethical practices in the business. Backgorund A good performing hospital would consist of a team of efficient doctors coupled with skilled support personnel, along with the well established equipments and diagnostic devices. Often the cost of health care has been experiencing high rate of increase which often makes the quality treatment inaccessible for most of the people. The ethical practices that are prevailing in these places need to be of highest level as it involves a matter of human and health (Health Care). The present situation of turbulent business weather has severe impacts of the operation of this industry too. The loss in jobs and reduced remuneration levels have started forcing people to opt for less costlier options, thus making all the premier health care operators not the prime choice of most of the medical attention seekers. But these situations too are not without solutions. Even during the period of recession and job losses, it is the responsibility of the company to deliver and support the desired level of service to the customers while considering the needs and aspirations of the employees (Wise Geek). Before moving into a deeper introspection of the analysis of various ethical models, it would be very prudent to have an overall assessment of the corporate practices, where business objectives could ride over the ethical rules. Besides evolving a pragmatic means of ethical practices, this sector could also motivate and hence create an attitude to implement a value-based operation in other sectors too (Health Care). Based on the detailed analysis available theories and models following initiatives are proposed for effectively implementing ethical practices during the turbulence experienced in the global economy. Promoting the concept of general well being as the organizational mandate. The

Redbox Essay Example | Topics and Well Written Essays - 250 words

Redbox - Essay Example ly, the Redbox provided video games that are good sources of entertainment of children thereby relieving their parents once they are in stores and restaurants among other places (Redbox Corporate Managemen 00: 01:46). Notably, other than being initiated by the McDonald’s management, the Redbox was introduced to other retail outlets including mass retailers, grocery and convenience stores, and pharmacies among other fast food restaurants. Finally, it is worth noting that despite the Redbox not only started its operation as a movie selling store kiosk, but also majored on items including grocery items including eggs, milk, and sandwiches. However, of all the store kiosks, the DVD rental kiosks became more successful of the other grocery kiosks thereby making the company to focus on the DVD market (Redbox Corporate Managemen 00: 08:22). Notably, the same success of the DVD kiosks has made the company to be thinking of expanding the market to other regions with the immediate region in mind being

Image representation of Women in Magazines (which are targeted to Dissertation

Image representation of Women in Magazines (which are targeted to University Students) - Dissertation Example 1 Afghan Girl 4.3 Fig. 2 She looks spoiled 4.4 Fig. 3 â€Å"Quite a Pear† 4.5 Fig. 4 Wad 4.6 Fig. 5 Keep on Dreaming of a Better World 4.7. Fig. 6 It’s nice to have a girl around the house 4.8 Fig. 7 Dove Advertising 4.9 Fig. 8 Twiggy 4.10 Fig. 9 Do Men Hate Fat Women? 4.11 Fig. 10. Dolce and Gabbana Advertisement 4.12 Summary 5.0 Chapter Five: Discussion List of Figures References Appendices Abstract The research that was conducted for this study concerns the images in the media and their influence over women of university level age. Images in the media have been shown to have a powerful influence over the body image of young women, affecting their self esteem and their development of identity (Cash, Cash, and Butters 1983: Catterall, Maclaran, and Stevens 2000). In a study that discussed the responses to ten different images in a group setting with twelve women, the phenomenon of the way in which women experience influences by media images gave a new dimension through responses, both expected and unexpected. Broken into five chapters, this qualitative study examines the nature of media images and the impact that they have on society. Chapter One Introduction The effect of the representation of women in media through both photojournalism and fashion photography acts as a catalyst to emotional responses which have helped to frame the way in which women see themselves as members of Western culture. The issues of body image, self, and identity are often manipulated by the media as women grow from childhood through adolescence. The influences that media imposes upon women can often lead to issues such as anorexia, bulimia, BED (binge eating disorder), and other medically dangerous conditions. Objectification of women has now begun to shift to subjectification, leading women into a world where they must now be the aggressive sexual being, rather than the passive object. Through research conducted using images and the discussion of twelve women who wer e put into a focus group the concepts of image and self is explored through the information gathered within the interview process. In a qualitative study of the emotional responses to women when a ‘story’ or suggested interpretation of images was interjected, the concept of trend is also explored as it relates to the interpretation of the responses to the images. This type of research helps in understanding the way in which images influence the direction of how women perceive beauty and how they are positioned within the discourse of attractiveness. The power of photo imagery in contemporary discourse has influenced culture, making changes in the concept of beauty and ’normalcy’. 1.1Background The objectification of women is not a new concept. However, the ways in which images of women have been formulated to specifically associate women as objects as an everyday occurrence is a part of the information age. As advertising has become a cycling of images thr ough television, the internet, and print media such as magazines, the concept of female is habitually stripped of its identity and reformulated into creatures of ’otherness’, usable objects of the imagination. An example of this can be seen in Fig. 3, women are morphed with objects, redefined as something consumable as indicated in Fig. 4, and objects of manipulation as seen in Fig. 4. The nature

Work Values, Attitudes, Moods and Emotions - the case of Wells Fargo Term Paper

Work Values, Attitudes, Moods and Emotions - the case of Wells Fargo Company - Term Paper Example In this context, the emphasis on work values, attitudes, moods and emotions in all organizational department has become a common phenomenon. In Wells Fargo Company the use of work values, attitudes, moods and emotions as tools for increase the firm’s competitiveness has been proved an effective strategic choice. However, as the literature suggests, the development of HR plans needs to be carefully monitored. Failures in regard to one or more parts of these plans may set the firm’s position in its industry in risk. The principles on which organizational strategies are based are not common in organizations worldwide. However, it seems that certain organizational decisions are likely to be based on similar rules and criteria. Also, it has been proved that the success of organizational plans is depended on the ability of organizations to identify and evaluate appropriately employee needs. In this context, work values, moods and emotions are of critical importance for organi zations in different industries. The role of work values, attitudes, moods and emotions in the development of organizational plans is highlighted in this paper. Reference is made to a specific company, the Wells Fargo Company, one of the most successful organizations in the greater Los Angeles area. The specific organization operates in the banking sector and is well known for its employee values. The specific organization is considered as one of the most successful for the American banking industry. The success of the organization has been highly related to one of its practices: work values, attitudes and emotions are highly taken into consideration when the key strategies of the organization are reviewed. Values, attitudes, moods and emotions are key elements of organizational strategies under the following term: the involvement of these elements in key strategic decisions is not standardized. This means that there are no specific rules imposing the use of the above elements in th e development of an organization’s strategic policies. However, the use of these elements seems to increase the effectiveness of organizational plans, even in the long term. In order to understand the role of these elements in an organization’s strategies, it would be necessary to review their characteristics; then, the ways in which these elements can influence an organization’s strategic planning process would be made clear. The framework of values in the context of modern organizations is reflected in the following definition: ‘values are an enduring belief that a specific mode of conduct is personally or socially preferable to an opposite mode of conduct’ (Gilliland, Steiner and Skarlicki 4). On the other hand, Williams (1993) note that work values should be described as the belief that every organizational task needs to be accomplished on time in accordance with the guidelines given. Moreover, Allison and Kaye (2005) support the view that value s as an elements of organizational culture reflects the priorities of organization’s in regard to critical social and environmental issues, such as the protection of the environment, the support to the community and so on. At the next level, Niven (2011) notes that organizational values are quite important for the stabilization of the organizational performance; for this reason, it is suggested that regular changes on organizational values are avoided (Niven 2011). Rather, emphasis should be given on the development of a core framework of organizational values on which the organization’s aims and objectives would be based. Regarding the potential use of attitudes as elements of organ

Clinical Epidemiology and Decision Making Case Study Essay

Clinical Epidemiology and Decision Making Case Study - Essay Example These spores thus need water or moisture to germinate and flood provides them the ideal environment to grow. Molds if inhaled can cause allergic reactions that affect the respiratory tract. Other illnesses include sinus congestion, sore throat and breathing problems. The health risks can be more for children and elderly people as well as people with low immune systems. Mold can also have severe implications on structural strength of buildings as well which may compound the problem in flood stricken areas. The field of clinical epidemiology suggests that general practitioners must consider facts based on population based studies of diseases and base their treatment and design preventive measures on these measures. Clinicians may use these statistics towards better patient care. In this paper we attempt to explore how clinical epidemiology may be beneficial to guide and deal with detection, prevention and treatment of mold in flood hit areas. It is pertinent to note that mold may appea r soon after the flood and may carry on until there is moisture. For this reason it is important that the rehabilitation process may not be started unless all moisture dries out. For the purpose, the health practitioners treating the disease need to be advised before and immediately after the floods about the types of molds in the area as well as the extent of illness in the area. Also, the health practitioners need to know about the medical facilities that they would have as well as chalk out a method to deal in case that it takes the form of an epidemic. These practitioners need to be told that they must not look to test every individual due to resources constraints and would be better served to look for symptoms. 2. Types of Molds Evidence from clinical epidemiology suggests that there are three types of molds that can affect people in the aftermath of a flood. These are mentioned below: i. Allergenic These types of molds are the least damaging as they affect only those individua ls that are already weakened by illness or disease and a have a weakened immune system. Although these molds are present all year, they thrive in areas where the moisture content is significantly high. This essentially means that these types of molds can exist in the aftermath of a flood. These molds result in sneezing and cause allergic reactions. Thus they do not have life threatening affects unlike other types of molds that might result in severe respiratory problems including congestion of the windpipe and choking. Mold spores are examples of allergenic molds. ii. Pathogenic This type of mold may cause respiratory tract infections. For persons with a weakened immune system, this may result in severe illness and may be possibly life threatening. However, healthy individuals may develop hypersensitivity but do not incur infection. This is why it is imperative that children and elders are guarded against this type of a mold infection. The bipolaris mold is one example of a pathogen ic mold. The mold may manifest itself as mycotic keratitis and sinusitis etc. This type of a mold can affect both immune-competent as well as immune-compromised individuals with different repercussions. iii. Toxigenic The most devastating strain of mold produces myotoxin which can cause some seriously undesirable health problems. This is an extremely toxic strain of mold which may not only

How Communication With Children And Young Essay Example for Free

How Communication With Children And Young Essay Children at different ages require different levels of attention, younger children will need more support which would mean more physical support, as children get older they need help with explaining and discussing their thoughts and issues they may have. When talking to different ages of children your vocabulary will need to change as younger children wont understand you if you were to use big words, so small and simple words would need to be used, as children get older turning into young people your vocabulary would develop more. Children and young people who may have communicational difficulties would need a whole different approach in the way you talk to them and the way they may communicate back. Some children and young people may be shy and quiet which would effect the way you would communicate with them, you need to adapt and respect how different children and young people are and their own individual needs. Some children and young people have a stammer or another type of speech disorder, when the child or young person are talking to you, you need to give them time to talk, never butt in to try and complete what they are saying you have to be patient and understand their speech disorder, if you try and rush them it will only make things worse as the child or young person will feel anxious and may find it harder to communicate with you. Working with children or young people who have special educational needs, you may need additional training such as sign language or makaton to help with communication. â€Å" Myself and the other staff use makaton in school, which is a big part of communication towards the pupils â€Å" The reason why makaton is used within the environment of special needs is that it is made up of simple words and signs, makaton is used for all ages who have learning difficulties, sign language is used for the deaf and it has its own vocabulary which is why it wouldnt be appropriate for the different age ranges who have learning difficulties it would be to hard to  grasp. In my school the pupils use pecs book which are made up of pictures that they can relate to. The pecs books are all pictures and a â€Å" i want â€Å" picture so when they request something at snack some children will point to â€Å" i want â€Å" and then to what they have chosen to have for snack, but some children will only pick out what picture they want like â€Å" a apple† and they will put it into my hand, i will then respond by saying the â€Å"childs name wants apple good talking† followed by giving the child a piece of apple. Some children use these pecs books at home to help with communication. Picture symbols are shown and given to the pupils on every transition, if for instance we were going to PE there would be two picture symbols on a schedule they would be a picture of a classroom and of PE, this shows them that after PE it is back to the classroom. This is such a great way of communication.

Hypo Group Alpe Adria Analysis

Hypo Group Alpe Adria Analysis 1. General information about Hypo Group Alpe Adria Hypo Group Alpe Adria is an international financial group with more than 380 banking and leasing locations in twelve European countries: Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and the Ukraine. The group has a rich historical background. Roots of Hypo Group Alpe Adria date way back in 1896 when the group was founded. Consequently, it has accumulated more than one hundred years of business experience. In the beginning of its activities, it concentrated on financing public institutions and housing construction. Hypo KÃ ¤rnten as it was then known became a universal bank in 1982. In 1988 the Bank took the first step on the road to international expansion by opening a leasing subsidiary in Udine, Italy. It became a public limited company in 1991, and in 1992 Grazer Wechselseitige Versicherung joined the Province of Carinthia as the second shareholder. This marked the beginning of a new era for Hypo Alpe-Adria-Bank. With cross-border activities in twelve countries of the Alps Adriatic region[1], the Hypo Group Alpe Adria has a unique position in the economic area constituted by South Eastern Europe. Its network of branches and offices exists in Austria, Italy and Germany, from Slovenia through Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Macedonia, Hungary, Bulgaria and the Ukraine. Business priorities in the operations of Hypo Group Alpe Adria are the strategic business sectors banking and leasing, with the focus on a common goal: contribution to the prosperity of the Alps Adriatic region and of the people living in it. Hypo Group Alpe Adria is committed to pursuing its goal of becoming the leading commercial bank in the Alps Adriatic region. 1.2. Mission and Strategy The mission of the Group is the following: instead of pursuing global presence as a goal, Hypo Group Alpe Adria is more locally oriented. In the Alps to Adriatic region, with its cross-border markets, it is local market knowledge at a very personal and emotional level, which is crucial. Personal contact with the customers represents the basis of mutual trust for the Group. For this reason the Group sees its relationships as partnerships, which extend far beyond simple money issues. According to the Group, success can only be achieved through human contacts, and it can only be measured in terms of personal relationships, so that partnership at a personal level is the Groups ultimate ideal. Hypo Group Alpe Adria leaves the goal of worldwide presence to the global players. As a leading regional player in the Alps to Adriatic area, it concentrates on the southeastern markets, with the motto banking business is peoples business, confirming its nonnegotiable customer orientation. Respecting differences, growing together and sharing successes with others these are the cornerstones of partnerships with customers on which the business structures of the Group are based. Having in mind that the fundamental strategy of the Group is to achieve growth in the Alps to Adriatic region, Hypo Group Alpe Adria has been pursuing its visionary strategy since 1993 with great success: to establish and develop a strong financial services Group in the Alps to Adriatic region which combines the highly developed Northern Italian, Germany and Austrian business cultures with growth market opportunities in Hungary, Slovenia, Croatia, Bosnia Herzegovina, Serbia, Montenegro, Bulgaria, Macedonia and the Ukraine. As a result, the Group plays a key role in directing funds and economic development to and in the region. Up till now, its successful expansion has given Hypo Group Alpe Adria intensive coverage of the areas, which in coming years will become its home markets. Additionally, long term involvement and commitment are priorities of the Group. Hypo Group Alpe Adria has established itself as a strong and reliable business partner in the Alps to Adriatic region. Its involvement in each country represents a long term commitment, so that businesses operating in any of these countries have the certainty and security they need in order to develop their activities. The Group is actively involved in developing local economies, and consequently, this contributes to the foundations of local prosperity. Furthermore, preserving independence and regional identity is one of the cornerstones of the Groups philosophy. This fact gives customers and business partners the certainty that they are handling their business with a dynamic and internationally minded bank which at the same time is at home in each of the individual regions. Hypo Group Alpe Adria is close to its customers in all the countries it operates in, thanks to its emphasis on independence and un-bureaucratic decentralized structures. 1.4. Regional presence of Hypo Group Alpe Adria It is important to underline that the expansion of Hypo Group Alpe Adria into its core market, the Alps to Adriatic Region, followed gradually. The establishment of the first Austrian bank branch in Vicenza (Italy), under EU law followed with Austrias accession to the EU in 1995. In the same year leasing companies were established in Ljubljana (Slovenia) and Zagreb (Croatia). In the upcoming years further leasing outlets were opened in Slovenia and the expansion of the branch network in Italy and Croatia. In 1997 the number of staff at Hypo Group Alpe Adria went over the barrier of five hundred employees, accompanied by the start of construction of the present Klagenfurt (Austria) headquarters, which was completed in three phases by 2002. By the beginning of the new millennium, Hypo Group Alpe Adria already employed over one thousand people. In the following year it entered the market in Bosnia and Herzegovina. In 2002, Hypo Group Alpe Adrias expansion penetrated into the market of Serbia and Montenegro. The Groups dynamic progress continued in 2003, when it was announced as investor of the year in Bosnia and Herzegovina, opened a leasing branch in Munich (Germany), founded the Biogaspark Alpe Adria and launched tourism initiatives in Carinthia (Austria), starting the Schlosshotel Velden project. Hypo Group Alpe Adria is today active in Austria, Italy, Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and Ukraine. In 2005 it numbered approximately 5000 employees at over 250 locations. The year of 2006 has been extremely important for the Group and it conducted strategically important expenditure decisions. It founded Hypo Alpe Adria Bank a.d. in Podgorica (Montenegro), Hypo Alpe-Adria-Rent d.o.o. in Belgrade (Serbia) and Hypo Alpe-Adria-Leasing OOD in Sofia (Bulgaria). The principal company of Hypo Group Alpe Adria is Hypo Alpe Adria Bank International AG, which has its head office in Klagenfurt (Austria). Its owners are BayernLB (67.08%), the GRAWE group (20.48%), KÃ ¤rntner Landesholding (12.42%) and Hypo Alpe Adria Mitarbeiter Privatstiftung (0.02%). The network of Hypo Group Alpe Adria currently has around 7,500 employees serving more than 1.3 million consumers. 2. Hypo Group Alpe Adria in Serbia Hypo Group Alpe Adria conducts its business activities in Serbia from 2002, as a part of the Hypo Alpe Adria Bank International AG Klagenfurt, which originally operated only in the territory of Austria. In the past couple of years, the Group began with its dynamic expansion in the international market, which consequently resulted in great success: the Group became one of the most successful financial institutions in the Alps Adriatic region, with approximately 7500 employees and more than 1.3 million clients in twelve countries. When we arrived to the Serbian market, we made a thorough analysis of finance, economy and legal sector, as well as the political situation of the country, based on which we have determined that Serbia will become one of the most important countries in our network. Serbia has enormous potential and we plan to invest in this country in the future and to become one of the leading financial institutions of the country. (Markus Ferstl, former Chairman of the Management Board of the Hypo Alpe Adria Bank a.d. Beograd) Having in mind that Hypo Group Alpe Adria`s strategic business sectors are banking and leasing, the Serbian market was firstly penetrated in the leasing sector. Leasing represents a relatively new form of financing in the Serbian market. Therefore, a leasing company bearing the name Hypo Alpe Adria Leasing d.o.o., was established in 2002, and it gained a leading position from the very beginning of its activities. The company remained the leader till present time with a cumulative market share of 35.19% in all segments of financing. Hypo Alpe Adria Leasing d.o.o. Beograd currently employs 136 people in affiliating offices throughout Serbia, including Belgrade, Novi Sad, Cacak, NiÃ… ¡, Subotica, Sombor, Zrenjanin, Becej, VrÃ… ¡c, Ã…  abac, Kragujevac and KruÃ… ¡evac. Additionally, not long after the establishment of Hypo Alpe Adria Leasing d.o.o. in Serbia, the bank by the name Hypo Alpe Adria Bank a.d. Beograd was founded in 2002. In just eight moths of business operations in Serbia, the newly founded bank achieved a growth rate of 853%, which exceeded all expectations. Hypo Alpe Adria Bank a.d. Beograd is currently one of the top five financial institutions in Serbia, with a market share of 8.55% and first-class and diversified portfolios. Additionally, it employs more than 800 people and has developed a rich business network consisting of affiliates in almost all bigger cities in Serbia, taking into consideration the headquarters of the company located in Belgrade, in the Business Center Usce where the other member companies of the Group are located[2]. Hypo Alpe Adria Securities a.d. Beograd was founded in 2004. The company is ranked among the top five broker companies in the market of shares and of old savings bonds trading. The youngest company of the Group is Hypo Alpe Adria Rent d.o.o. Beograd, which is the first financial institution in Serbia to offer the possibility of operational leasing for the clients. During the present research, special focus will be on the bank and the leasing company operating in within the system of Hypo Alpe Adria Group. 3. Hypo Alpe Adria Bank a.d. Beograd In order to proceed with the research on Hypo Alpe Adria Bank a.d. Beograd, it is necessary to explain the circumstances in which the banking sector in Serbia existed from 1990s till present time. Disintegration and collapse of socialist Yugoslavia in the beginning of the 1990s announced the so-called lost decade, meaning that major structural features and weaknesses of the banking system were preserved or additionally deteriorated and the overall situation became desperate. The main characteristics of 1990s were losses of markets, repeated wars, economic sanctions and international isolation of the country. Mismanagement and pervasive corruption were main factors, which contributed to the degeneration of the economy. After the major hyperinflation, which occurred in 1993 and 1994, 90 % of all bank loans were perceived as bad. Unprofitable and non-performing foreign currency balance sub-balances dominated balance sheets. One of the main priorities in the reform agenda of the new Serbian authorities, which took over in 2000 was bank restructuring. The essence of the strategy was to undertake bank rehabilitation and re-capitalization only in the cases when it was expected that the banks could be viable institutions with good prospects for privatization through sale to strategic investor at a reasonable price and only if it can be implemented with identifiable fiscal resources. In the beginning of 2002, Serbian authorities decided to conduct one of the boldest bank resolution measures undertaken in transition economies: they liquidated four large and deeply insolvent banks, which accounted for 60% of the book value of the sectors asset and for about two thirds of outstanding commercial credit to non financial sector. Furthermore, banking legislation and regulations were improved[3]. After the first major wave of reform, credit institutions have become more attentive in lending money to the real sector which was still very week. The government immediately acted on attracting foreign investors since there was an urgent need for such a thing. Consequently, from the late 2000 to December 2002, National Bank of Yugoslavia (the central bank) issued eight bank licenses, out of which seven were for the foreign owned banks. Internationalization and privatization of the Serbian banking industry continued in 2005. The share of the market accounted for by foreign banks rose to 67.52%. Out of the ten largest banks, seven are foreign. Successful sales of Serbian banks to foreign financial institutions provided a vigorous stimulus to the countrys banking industry. Total assets of all banks in 2005 jumped by 40.4% compared with the previous year, to 9.07 billion euros. Strong increases in lending to private and business customers were the main forces, which were driving growth. Progress was also made in restoring the confidence of domestic savers: total deposits at the end of 2005 amounted to 5 billion euros. Foreign banks which penetrated the Serbian market played an important role in restoring confidence in the sector and have gathered a significant share of new deposits. One of these banks was Hypo Alpe Adria Bank a.d. Beograd. Hypo Alpe-Adria Banks involvement in the Serbian market began in December 2002, when it acquired Depozitno-kreditna banka. The Austrian bank concluded the purchase of 86.6% of the Serbian Depozitno-Kreditna Banka, founded May 22nd 1991, whose registered offices were in Belgrade. At the shareholders meeting held on October 8th 2002, the Banks name was changed to Hypo Alpe-Adria-Bank a.d., the capital increase to EUR 5.5 million was resolved, and the new Supervisory Board was appointed. The headquarters of to Hypo Alpe-Adria-Bank a.d., the member of the Hypo Group (after Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina and Liechtenstein), are located in the new part of Belgrade New Belgrade. Referring to total assets, Hypo Alpe-Adria-Bank a.d. is Serbias fourth-largest bank with a market share of 6.47 %. Furthermore, approximately 900 employees are currently working for the Bank in a total of forty-one branch offices throughout Serbia. Market share of top five banks in Serbia (Source: National Bank of Serbia available at http://www.nbs.rs/export/internet/latinica/50/50_5.html) After just several months of its operations in Serbia, the Bank has established itself as a recognizable part of the Serbian financial scene. In its first two years of its activities, Hypo concentrated on corporate customers. The Bank has achieved a particular competitive advantage in the corporate sector with its long-term investment lending. Efforts to develop private customer business began in 2004. The specific focus gradually switched to the housing construction market, which was performing excellently. When we arrived to the Serbian market in 2002, we were among the first ones and there had been only six foreign banks operating in the market. We have used that window of opportunity, the situation when there had been few foreign banks present, in order to develop our credit portfolio. In that period, we had the opportunity to finance some of the most successful companies in Serbia, as well as to develop well-balanced portfolio, which we diversified over the years. Special attention was dedicated to retail sector, mostly in the field of house loans. Additionally, we have formed a special unit for financing of small and medium sized enterprises and this has become one of our corporate priorities, having in mind that these companies are often suppliers and partners of the big companies we already cooperate with. Other than that, our focus is on food industry, agriculture, pharmaceutical and chemical industry. (Vladimir Cupic, Chairman of the Management Board of the Hypo Alpe Adria Bank a.d. Beograd) The Bank is organized in the following sectors and departments: Corporate sector Retail sector Sector of financing public enterprises and local community units Treasury sector Investment banking HR department Economic analysis department Sector settlement Market support sector Logistics sector Sector of organization and information technology Legal department Department of business control harmonization Marketing department The research process will only incorporate the sectors, which are relevant for the research question of the thesis. 3.1. Corporate sector From the very beginning of its operations in Serbia, the Bank has established an extremely developed corporate sector, which quickly expanded in the sense of different departments within the sector, as well as the number of employees. The corporate sector of Hypo Alpe Adria Bank quickly achieved competitive advantage in comparison to other banks in Serbia. Various departments are organized within the sector: Credit department Small and medium enterprises (transferred to the Retail sector in 2006) International financing Products and services of the corporate sector are concentrated on the client and its needs, and include the following: Investment loans (loans approved for the purpose of purchase of machines, equipment, land, real estate) Framework loans (exceeding permissible minus on the account, eskont of bills and revolving lines) Documentary operations (guarantees, credits, purchase of receivables and inkaso) Loans for working capital Till 2006 Hypo Alpe Adria Bank mainly focused on long term corporate loans, which were given to the big corporate clients. Since then, it strategically refocused on small and medium sized enterprises and expanded its offer of products. Corporate sector is known for its extremely innovative products and services offered to the clients. The innovation, which was introduced by the Bank in the market of Serbia, is the so-called cross border financing. This type of financing is dedicated to the clients that operate in more than two countries. The financing capital is actually provided from outside Serbia and offered to the clients under much better conditions than the ones, which are present in the Serbian market. Additionally, the Bank provides special guarantees for the clients within the Hypo Group, and in this way supports their business activities in other countries. Furthermore, another product, which is particularly innovative, was introduced in 2004 and it is called the revolving line. By using this product, clients are automatically enabled to use other additional products, according to their needs (dinar and foreign currency loans, working capital loans, guarantees etc.). The revolving line can be used by big corporate clients, as well as small and medium sized enterprises and entrepreneurs. Being a strategic branch of the Serbian economy, agriculture is one of the top priorities of the corporate sector. The Bank has been extremely active in financing agricultural production: individual agricultural manufacturers have the possibility to finance basic and working capital. Cross selling activities refer to the presentation of banks products from other sectors within the Bank. Acquisition of new clients also represents one of the fundamental operations of the corporate sector. It is particularly important since it is the basis of the planned growth of deposits, as the fundamentals for the primary sources. Special attention within the sector is dedicated to project and structural financing, like: financing of projects for the market or long term exploitation, purchase of shares, mergers / acquisitions of companies. 3.2. Human resource (HR) department and relationship towards employees HR department of Hypo Alpe Adria Bank was established in May of 2003 and has developed its activities at a very rapid pace, due to the fact that the number of employees was increasing intensively. In the very beginning of its operations in Serbia, the bank had a total of 27 employees and in just one year the number increased to 323 employees. In 2005, the growth trend continued and the number of the bank staff reached 531 people. Finally, on the closing date, 31 December 2008, Hypo Alpe-Adria-Bank a.d., Beograd had 871 employees. The increase of the number of employees is the result of the extension of the branch office network. Furthermore, additional employees were recruited in the headquarters to cater for the increasing customer demands. Within the initial process of selection and engagement of young experts, 600 potential candidates have been interviewed. Furthermore, database containing more than 1500 biographies of interested candidates was created, which points out to the fact that young people of Serbia are very keen on participating in the creation of modern multinational companies. One of the key priorities of the HR department from the very beginning of its existence was to enable quick integration of new employees into the system. Secondly, the Bank immediately started with the implementation of the Hypo standards, creation of the corporate identity and team atmosphere in the institution. Additionally, a very important strategic goal for the department was to become the source of educational staff, which would be capable of taking on new jobs, initiatives and development. In that sense, many of the employees, who have already acquired standards of the corporation and business modalities, have obtained leading positions within the Bank as the heads of various sectors. As far as the age structure is concerned, majority of employees of the Bank belong to the age group 30 39 years old, as it is shown in the diagram below. Additionally, 47% of all employees have acquired university education, while 33% of employees have secondary education. Activities of HR department are focused in three directions: administration, finance and education. In the area of administration, the department is handling recruitment process and hiring of new people who are competent and can contribute to the environment of the Bank. In the field of finance, the so called time management program is being implemented within the department, referring to the planning of the budget which will be used for the purpose of staff education and various bonus systems realized through completed targets. Having in mind the fact that, contemporary flows of banking operations worldwide demand constant education of the staff in all areas of the business, HR department takes particular notice of education of employees. The department is conducting educational trainings in various forms: motivation trainings, special skills development courses and language courses. This contributes to the raising of the efficiency level of the staff. Educational trainings are organized internally and externally. Some of the most important types of trainings, depending on the sector are: Cross selling courses Microsoft Office Excel seminars Insurance trainings, which enables the participants to obtain the license of the insurance mediator Small and medium sized enterprises trainings Seminars for the sale of pension and investment funds CDO`s and Credit linked trainings Specialist courses MCPD and MCITP Database Administrator for staff in the sector for informational technologies System Oriented Management course 1 and 2 Optional modules Top executive Education Public Finance Basic Training Project management Train the Trainer Project Management for Top Management Cross selling courses for account managers are particularly important for the activities of the Bank, in order to introduce existing clients of the Bank with new products and services. In this way, account managers tend to ensure that the additional product or service is being sold to the client, while at the same time enhancing the value the client gets from the Bank. Moreover, employees have the opportunity of expanding their knowledge in seminars jointly organized in cooperation with relevant public institutions, such as the National bank of Serbia, Association of Banks in Serbia, Serbian Chamber of Commerce, Institute for Business research and other external providers, as well as trainings related to international accounting standards. Having in mind that the Bank operates in twelve countries and that everyday communication involves the use of foreign languages, English courses are provided for all employees, at the expense of the Company. Additionally, certain numbers of employees who occupy the positions, which are directly linked to the headquarters of the Group in Austria, take courses of German language, whose expenses are also borne by the Company. Particularly relevant project of the department was realized in 2008, when the Bank established its internal employee training center. The main goal of the project was to make the best possible use of the existing knowledge and the practical experience of the staff. The center was formed in order to initiate internal transfer of knowledge among employees, information sharing, better communication, which consequently leads to better work performance and improvement of inter-personal relations within the Bank. This modern and completely technically equipped space is intended for internal and in house trainings, seminars and workshops for employees. Additionally, several types of trainings are conducted within the Center: cross selling workshops, Hypo 1 a tool which helps the staff get acquainted about other sectors besides their own, small and medium size enterprises trainings, etc. In just three months after its opening, more than 400 employees have participated in organized trai nings, and in one year more than 900 employees successfully passed over 30 internal educational and development programs of the center, which consequently justified the original expectations set by the management of the Bank. In addition, there is no doubt that one of the key priorities of the Bank is employee satisfaction. HR department in Hypo Bank actively conducts the employee assessment programs, which are incorporated in the employee satisfaction program. Originally, the program was based on yearly interviews of employees and their superiors on the subject of work efficiency and success, through self evaluation done by the employee, and the evaluation obtained from the superior. In order to upgrade the program, in 2007 HR department decided to introduce new actions. One of these actions was employee satisfaction survey. This type of survey is conducted among all employees in the end of every working year, and concentrates on the four most important areas of employee satisfaction: general satisfaction with work and work conditions, communication and interpersonal relations, leadership, bonus systems and career opportunities. Achieved results from the survey serve as the basis for strategy planning for the upcoming years. This is particularly important in order to include the opinion of the staff in the process of future strategy defining and decision making, so that everyone can benefit from it. Furthermore, obtained results were than given to the HR agency Advance Response International that deals with HR issues, and in this way anonymity and objectivity of the research was achieved. At this point, it is necessary to highlight that Hypo Bank has developed cooperation with several human resource agencies for the purpose of various types of train ings: project management, leadership and management, credit and market risk, etc. Asides from the efforts, which are focused on the improvement of communication among employees, inter-personal relations and management, the management of the Bank puts special emphasis on professional development of the middle and top management members. For that purpose, development center operating within the HR department was established in order to assess development necessities of the staff belonging to these levels of management. The center analyses results of interviews, surveys and supervisors suggestions, and consequently creates individual development plan for every employee. Another type of development plan created in the center, is team development plan, which is implemented on the entire teams working in specific sectors. In order to do business well, you need to have products of good quality, but asides from that, you need to have excellent staff. Therefore, we invest a lot in education and training of our employees. For example, in the second quarter of 2006, we realized a special trainee project. We hired motivated young people who had just completed their university education and we enabled them to pass specific trainings throughout the entire Group in two years, in order to get familiar with every aspect of the company business activities. They didnt have trainings only in Serbia; they also visited other Hypo companies abroad. As we often like to say in the Group: our greatest assets are our employees and for that reason we will continue to invest in their internal and external education. (Marija Sutanovac, Head of the HR department of the Hypo Alpe Adria Bank a.d. Beograd). Important point, which should be highlighted in this section, is opportunity for scholarships for university education of employees. Each year Bank supports further education of thirty selected employees and provides funding for their studies. This program represents a special kind of acknowledgement for talented and hard working employees. Furthermore, in cooperation with the Serbian Business Club Privrednik[4], the Bank provides scholarships for ten students, which are not employees of the bank, and in this way shows its support directed to the young people of Serbia. In this way, talented and perspective students have the opportunity to be in touch with the people from the most significant and influential companies in Serbia, and can find employment opportunities upon their graduation asides form their scholarships. 3.3. Marketing department and relationship towards clients Marketing department had a challenging task of providing support to all business activities of the Bank, once it penetrated the Serbian market. The key priority of the department was to create a positive image of the Hypo Bank, as well as to inform the Serbian population about its products and services. Corporate image strategy emphasized values of the bank: its tradition, innovative approach to business, Alps-Adriatic philosophy based on the regional banking client focus, partnership, security, corporate responsibility and independence. The main focus of the department was to create and promote the corporate image, which emphasizes that Hypo Alpe Adria Bank a.d. Beograd takes care of its clients in the same way as it takes care of its employees, and that it is a reliable partner who nurtures the local community in which it exists. The main element of the departments strategy was to create two-way communication with the clients: to reach the clients, and to hear their needs as well. For that purpose, the Bank introduced a special program called clients suggestions. Clients of the Bank have the possibility of sending their suggestions, comments, Hypo Group Alpe Adria Analysis Hypo Group Alpe Adria Analysis 1. General information about Hypo Group Alpe Adria Hypo Group Alpe Adria is an international financial group with more than 380 banking and leasing locations in twelve European countries: Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and the Ukraine. The group has a rich historical background. Roots of Hypo Group Alpe Adria date way back in 1896 when the group was founded. Consequently, it has accumulated more than one hundred years of business experience. In the beginning of its activities, it concentrated on financing public institutions and housing construction. Hypo KÃ ¤rnten as it was then known became a universal bank in 1982. In 1988 the Bank took the first step on the road to international expansion by opening a leasing subsidiary in Udine, Italy. It became a public limited company in 1991, and in 1992 Grazer Wechselseitige Versicherung joined the Province of Carinthia as the second shareholder. This marked the beginning of a new era for Hypo Alpe-Adria-Bank. With cross-border activities in twelve countries of the Alps Adriatic region[1], the Hypo Group Alpe Adria has a unique position in the economic area constituted by South Eastern Europe. Its network of branches and offices exists in Austria, Italy and Germany, from Slovenia through Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Macedonia, Hungary, Bulgaria and the Ukraine. Business priorities in the operations of Hypo Group Alpe Adria are the strategic business sectors banking and leasing, with the focus on a common goal: contribution to the prosperity of the Alps Adriatic region and of the people living in it. Hypo Group Alpe Adria is committed to pursuing its goal of becoming the leading commercial bank in the Alps Adriatic region. 1.2. Mission and Strategy The mission of the Group is the following: instead of pursuing global presence as a goal, Hypo Group Alpe Adria is more locally oriented. In the Alps to Adriatic region, with its cross-border markets, it is local market knowledge at a very personal and emotional level, which is crucial. Personal contact with the customers represents the basis of mutual trust for the Group. For this reason the Group sees its relationships as partnerships, which extend far beyond simple money issues. According to the Group, success can only be achieved through human contacts, and it can only be measured in terms of personal relationships, so that partnership at a personal level is the Groups ultimate ideal. Hypo Group Alpe Adria leaves the goal of worldwide presence to the global players. As a leading regional player in the Alps to Adriatic area, it concentrates on the southeastern markets, with the motto banking business is peoples business, confirming its nonnegotiable customer orientation. Respecting differences, growing together and sharing successes with others these are the cornerstones of partnerships with customers on which the business structures of the Group are based. Having in mind that the fundamental strategy of the Group is to achieve growth in the Alps to Adriatic region, Hypo Group Alpe Adria has been pursuing its visionary strategy since 1993 with great success: to establish and develop a strong financial services Group in the Alps to Adriatic region which combines the highly developed Northern Italian, Germany and Austrian business cultures with growth market opportunities in Hungary, Slovenia, Croatia, Bosnia Herzegovina, Serbia, Montenegro, Bulgaria, Macedonia and the Ukraine. As a result, the Group plays a key role in directing funds and economic development to and in the region. Up till now, its successful expansion has given Hypo Group Alpe Adria intensive coverage of the areas, which in coming years will become its home markets. Additionally, long term involvement and commitment are priorities of the Group. Hypo Group Alpe Adria has established itself as a strong and reliable business partner in the Alps to Adriatic region. Its involvement in each country represents a long term commitment, so that businesses operating in any of these countries have the certainty and security they need in order to develop their activities. The Group is actively involved in developing local economies, and consequently, this contributes to the foundations of local prosperity. Furthermore, preserving independence and regional identity is one of the cornerstones of the Groups philosophy. This fact gives customers and business partners the certainty that they are handling their business with a dynamic and internationally minded bank which at the same time is at home in each of the individual regions. Hypo Group Alpe Adria is close to its customers in all the countries it operates in, thanks to its emphasis on independence and un-bureaucratic decentralized structures. 1.4. Regional presence of Hypo Group Alpe Adria It is important to underline that the expansion of Hypo Group Alpe Adria into its core market, the Alps to Adriatic Region, followed gradually. The establishment of the first Austrian bank branch in Vicenza (Italy), under EU law followed with Austrias accession to the EU in 1995. In the same year leasing companies were established in Ljubljana (Slovenia) and Zagreb (Croatia). In the upcoming years further leasing outlets were opened in Slovenia and the expansion of the branch network in Italy and Croatia. In 1997 the number of staff at Hypo Group Alpe Adria went over the barrier of five hundred employees, accompanied by the start of construction of the present Klagenfurt (Austria) headquarters, which was completed in three phases by 2002. By the beginning of the new millennium, Hypo Group Alpe Adria already employed over one thousand people. In the following year it entered the market in Bosnia and Herzegovina. In 2002, Hypo Group Alpe Adrias expansion penetrated into the market of Serbia and Montenegro. The Groups dynamic progress continued in 2003, when it was announced as investor of the year in Bosnia and Herzegovina, opened a leasing branch in Munich (Germany), founded the Biogaspark Alpe Adria and launched tourism initiatives in Carinthia (Austria), starting the Schlosshotel Velden project. Hypo Group Alpe Adria is today active in Austria, Italy, Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and Ukraine. In 2005 it numbered approximately 5000 employees at over 250 locations. The year of 2006 has been extremely important for the Group and it conducted strategically important expenditure decisions. It founded Hypo Alpe Adria Bank a.d. in Podgorica (Montenegro), Hypo Alpe-Adria-Rent d.o.o. in Belgrade (Serbia) and Hypo Alpe-Adria-Leasing OOD in Sofia (Bulgaria). The principal company of Hypo Group Alpe Adria is Hypo Alpe Adria Bank International AG, which has its head office in Klagenfurt (Austria). Its owners are BayernLB (67.08%), the GRAWE group (20.48%), KÃ ¤rntner Landesholding (12.42%) and Hypo Alpe Adria Mitarbeiter Privatstiftung (0.02%). The network of Hypo Group Alpe Adria currently has around 7,500 employees serving more than 1.3 million consumers. 2. Hypo Group Alpe Adria in Serbia Hypo Group Alpe Adria conducts its business activities in Serbia from 2002, as a part of the Hypo Alpe Adria Bank International AG Klagenfurt, which originally operated only in the territory of Austria. In the past couple of years, the Group began with its dynamic expansion in the international market, which consequently resulted in great success: the Group became one of the most successful financial institutions in the Alps Adriatic region, with approximately 7500 employees and more than 1.3 million clients in twelve countries. When we arrived to the Serbian market, we made a thorough analysis of finance, economy and legal sector, as well as the political situation of the country, based on which we have determined that Serbia will become one of the most important countries in our network. Serbia has enormous potential and we plan to invest in this country in the future and to become one of the leading financial institutions of the country. (Markus Ferstl, former Chairman of the Management Board of the Hypo Alpe Adria Bank a.d. Beograd) Having in mind that Hypo Group Alpe Adria`s strategic business sectors are banking and leasing, the Serbian market was firstly penetrated in the leasing sector. Leasing represents a relatively new form of financing in the Serbian market. Therefore, a leasing company bearing the name Hypo Alpe Adria Leasing d.o.o., was established in 2002, and it gained a leading position from the very beginning of its activities. The company remained the leader till present time with a cumulative market share of 35.19% in all segments of financing. Hypo Alpe Adria Leasing d.o.o. Beograd currently employs 136 people in affiliating offices throughout Serbia, including Belgrade, Novi Sad, Cacak, NiÃ… ¡, Subotica, Sombor, Zrenjanin, Becej, VrÃ… ¡c, Ã…  abac, Kragujevac and KruÃ… ¡evac. Additionally, not long after the establishment of Hypo Alpe Adria Leasing d.o.o. in Serbia, the bank by the name Hypo Alpe Adria Bank a.d. Beograd was founded in 2002. In just eight moths of business operations in Serbia, the newly founded bank achieved a growth rate of 853%, which exceeded all expectations. Hypo Alpe Adria Bank a.d. Beograd is currently one of the top five financial institutions in Serbia, with a market share of 8.55% and first-class and diversified portfolios. Additionally, it employs more than 800 people and has developed a rich business network consisting of affiliates in almost all bigger cities in Serbia, taking into consideration the headquarters of the company located in Belgrade, in the Business Center Usce where the other member companies of the Group are located[2]. Hypo Alpe Adria Securities a.d. Beograd was founded in 2004. The company is ranked among the top five broker companies in the market of shares and of old savings bonds trading. The youngest company of the Group is Hypo Alpe Adria Rent d.o.o. Beograd, which is the first financial institution in Serbia to offer the possibility of operational leasing for the clients. During the present research, special focus will be on the bank and the leasing company operating in within the system of Hypo Alpe Adria Group. 3. Hypo Alpe Adria Bank a.d. Beograd In order to proceed with the research on Hypo Alpe Adria Bank a.d. Beograd, it is necessary to explain the circumstances in which the banking sector in Serbia existed from 1990s till present time. Disintegration and collapse of socialist Yugoslavia in the beginning of the 1990s announced the so-called lost decade, meaning that major structural features and weaknesses of the banking system were preserved or additionally deteriorated and the overall situation became desperate. The main characteristics of 1990s were losses of markets, repeated wars, economic sanctions and international isolation of the country. Mismanagement and pervasive corruption were main factors, which contributed to the degeneration of the economy. After the major hyperinflation, which occurred in 1993 and 1994, 90 % of all bank loans were perceived as bad. Unprofitable and non-performing foreign currency balance sub-balances dominated balance sheets. One of the main priorities in the reform agenda of the new Serbian authorities, which took over in 2000 was bank restructuring. The essence of the strategy was to undertake bank rehabilitation and re-capitalization only in the cases when it was expected that the banks could be viable institutions with good prospects for privatization through sale to strategic investor at a reasonable price and only if it can be implemented with identifiable fiscal resources. In the beginning of 2002, Serbian authorities decided to conduct one of the boldest bank resolution measures undertaken in transition economies: they liquidated four large and deeply insolvent banks, which accounted for 60% of the book value of the sectors asset and for about two thirds of outstanding commercial credit to non financial sector. Furthermore, banking legislation and regulations were improved[3]. After the first major wave of reform, credit institutions have become more attentive in lending money to the real sector which was still very week. The government immediately acted on attracting foreign investors since there was an urgent need for such a thing. Consequently, from the late 2000 to December 2002, National Bank of Yugoslavia (the central bank) issued eight bank licenses, out of which seven were for the foreign owned banks. Internationalization and privatization of the Serbian banking industry continued in 2005. The share of the market accounted for by foreign banks rose to 67.52%. Out of the ten largest banks, seven are foreign. Successful sales of Serbian banks to foreign financial institutions provided a vigorous stimulus to the countrys banking industry. Total assets of all banks in 2005 jumped by 40.4% compared with the previous year, to 9.07 billion euros. Strong increases in lending to private and business customers were the main forces, which were driving growth. Progress was also made in restoring the confidence of domestic savers: total deposits at the end of 2005 amounted to 5 billion euros. Foreign banks which penetrated the Serbian market played an important role in restoring confidence in the sector and have gathered a significant share of new deposits. One of these banks was Hypo Alpe Adria Bank a.d. Beograd. Hypo Alpe-Adria Banks involvement in the Serbian market began in December 2002, when it acquired Depozitno-kreditna banka. The Austrian bank concluded the purchase of 86.6% of the Serbian Depozitno-Kreditna Banka, founded May 22nd 1991, whose registered offices were in Belgrade. At the shareholders meeting held on October 8th 2002, the Banks name was changed to Hypo Alpe-Adria-Bank a.d., the capital increase to EUR 5.5 million was resolved, and the new Supervisory Board was appointed. The headquarters of to Hypo Alpe-Adria-Bank a.d., the member of the Hypo Group (after Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina and Liechtenstein), are located in the new part of Belgrade New Belgrade. Referring to total assets, Hypo Alpe-Adria-Bank a.d. is Serbias fourth-largest bank with a market share of 6.47 %. Furthermore, approximately 900 employees are currently working for the Bank in a total of forty-one branch offices throughout Serbia. Market share of top five banks in Serbia (Source: National Bank of Serbia available at http://www.nbs.rs/export/internet/latinica/50/50_5.html) After just several months of its operations in Serbia, the Bank has established itself as a recognizable part of the Serbian financial scene. In its first two years of its activities, Hypo concentrated on corporate customers. The Bank has achieved a particular competitive advantage in the corporate sector with its long-term investment lending. Efforts to develop private customer business began in 2004. The specific focus gradually switched to the housing construction market, which was performing excellently. When we arrived to the Serbian market in 2002, we were among the first ones and there had been only six foreign banks operating in the market. We have used that window of opportunity, the situation when there had been few foreign banks present, in order to develop our credit portfolio. In that period, we had the opportunity to finance some of the most successful companies in Serbia, as well as to develop well-balanced portfolio, which we diversified over the years. Special attention was dedicated to retail sector, mostly in the field of house loans. Additionally, we have formed a special unit for financing of small and medium sized enterprises and this has become one of our corporate priorities, having in mind that these companies are often suppliers and partners of the big companies we already cooperate with. Other than that, our focus is on food industry, agriculture, pharmaceutical and chemical industry. (Vladimir Cupic, Chairman of the Management Board of the Hypo Alpe Adria Bank a.d. Beograd) The Bank is organized in the following sectors and departments: Corporate sector Retail sector Sector of financing public enterprises and local community units Treasury sector Investment banking HR department Economic analysis department Sector settlement Market support sector Logistics sector Sector of organization and information technology Legal department Department of business control harmonization Marketing department The research process will only incorporate the sectors, which are relevant for the research question of the thesis. 3.1. Corporate sector From the very beginning of its operations in Serbia, the Bank has established an extremely developed corporate sector, which quickly expanded in the sense of different departments within the sector, as well as the number of employees. The corporate sector of Hypo Alpe Adria Bank quickly achieved competitive advantage in comparison to other banks in Serbia. Various departments are organized within the sector: Credit department Small and medium enterprises (transferred to the Retail sector in 2006) International financing Products and services of the corporate sector are concentrated on the client and its needs, and include the following: Investment loans (loans approved for the purpose of purchase of machines, equipment, land, real estate) Framework loans (exceeding permissible minus on the account, eskont of bills and revolving lines) Documentary operations (guarantees, credits, purchase of receivables and inkaso) Loans for working capital Till 2006 Hypo Alpe Adria Bank mainly focused on long term corporate loans, which were given to the big corporate clients. Since then, it strategically refocused on small and medium sized enterprises and expanded its offer of products. Corporate sector is known for its extremely innovative products and services offered to the clients. The innovation, which was introduced by the Bank in the market of Serbia, is the so-called cross border financing. This type of financing is dedicated to the clients that operate in more than two countries. The financing capital is actually provided from outside Serbia and offered to the clients under much better conditions than the ones, which are present in the Serbian market. Additionally, the Bank provides special guarantees for the clients within the Hypo Group, and in this way supports their business activities in other countries. Furthermore, another product, which is particularly innovative, was introduced in 2004 and it is called the revolving line. By using this product, clients are automatically enabled to use other additional products, according to their needs (dinar and foreign currency loans, working capital loans, guarantees etc.). The revolving line can be used by big corporate clients, as well as small and medium sized enterprises and entrepreneurs. Being a strategic branch of the Serbian economy, agriculture is one of the top priorities of the corporate sector. The Bank has been extremely active in financing agricultural production: individual agricultural manufacturers have the possibility to finance basic and working capital. Cross selling activities refer to the presentation of banks products from other sectors within the Bank. Acquisition of new clients also represents one of the fundamental operations of the corporate sector. It is particularly important since it is the basis of the planned growth of deposits, as the fundamentals for the primary sources. Special attention within the sector is dedicated to project and structural financing, like: financing of projects for the market or long term exploitation, purchase of shares, mergers / acquisitions of companies. 3.2. Human resource (HR) department and relationship towards employees HR department of Hypo Alpe Adria Bank was established in May of 2003 and has developed its activities at a very rapid pace, due to the fact that the number of employees was increasing intensively. In the very beginning of its operations in Serbia, the bank had a total of 27 employees and in just one year the number increased to 323 employees. In 2005, the growth trend continued and the number of the bank staff reached 531 people. Finally, on the closing date, 31 December 2008, Hypo Alpe-Adria-Bank a.d., Beograd had 871 employees. The increase of the number of employees is the result of the extension of the branch office network. Furthermore, additional employees were recruited in the headquarters to cater for the increasing customer demands. Within the initial process of selection and engagement of young experts, 600 potential candidates have been interviewed. Furthermore, database containing more than 1500 biographies of interested candidates was created, which points out to the fact that young people of Serbia are very keen on participating in the creation of modern multinational companies. One of the key priorities of the HR department from the very beginning of its existence was to enable quick integration of new employees into the system. Secondly, the Bank immediately started with the implementation of the Hypo standards, creation of the corporate identity and team atmosphere in the institution. Additionally, a very important strategic goal for the department was to become the source of educational staff, which would be capable of taking on new jobs, initiatives and development. In that sense, many of the employees, who have already acquired standards of the corporation and business modalities, have obtained leading positions within the Bank as the heads of various sectors. As far as the age structure is concerned, majority of employees of the Bank belong to the age group 30 39 years old, as it is shown in the diagram below. Additionally, 47% of all employees have acquired university education, while 33% of employees have secondary education. Activities of HR department are focused in three directions: administration, finance and education. In the area of administration, the department is handling recruitment process and hiring of new people who are competent and can contribute to the environment of the Bank. In the field of finance, the so called time management program is being implemented within the department, referring to the planning of the budget which will be used for the purpose of staff education and various bonus systems realized through completed targets. Having in mind the fact that, contemporary flows of banking operations worldwide demand constant education of the staff in all areas of the business, HR department takes particular notice of education of employees. The department is conducting educational trainings in various forms: motivation trainings, special skills development courses and language courses. This contributes to the raising of the efficiency level of the staff. Educational trainings are organized internally and externally. Some of the most important types of trainings, depending on the sector are: Cross selling courses Microsoft Office Excel seminars Insurance trainings, which enables the participants to obtain the license of the insurance mediator Small and medium sized enterprises trainings Seminars for the sale of pension and investment funds CDO`s and Credit linked trainings Specialist courses MCPD and MCITP Database Administrator for staff in the sector for informational technologies System Oriented Management course 1 and 2 Optional modules Top executive Education Public Finance Basic Training Project management Train the Trainer Project Management for Top Management Cross selling courses for account managers are particularly important for the activities of the Bank, in order to introduce existing clients of the Bank with new products and services. In this way, account managers tend to ensure that the additional product or service is being sold to the client, while at the same time enhancing the value the client gets from the Bank. Moreover, employees have the opportunity of expanding their knowledge in seminars jointly organized in cooperation with relevant public institutions, such as the National bank of Serbia, Association of Banks in Serbia, Serbian Chamber of Commerce, Institute for Business research and other external providers, as well as trainings related to international accounting standards. Having in mind that the Bank operates in twelve countries and that everyday communication involves the use of foreign languages, English courses are provided for all employees, at the expense of the Company. Additionally, certain numbers of employees who occupy the positions, which are directly linked to the headquarters of the Group in Austria, take courses of German language, whose expenses are also borne by the Company. Particularly relevant project of the department was realized in 2008, when the Bank established its internal employee training center. The main goal of the project was to make the best possible use of the existing knowledge and the practical experience of the staff. The center was formed in order to initiate internal transfer of knowledge among employees, information sharing, better communication, which consequently leads to better work performance and improvement of inter-personal relations within the Bank. This modern and completely technically equipped space is intended for internal and in house trainings, seminars and workshops for employees. Additionally, several types of trainings are conducted within the Center: cross selling workshops, Hypo 1 a tool which helps the staff get acquainted about other sectors besides their own, small and medium size enterprises trainings, etc. In just three months after its opening, more than 400 employees have participated in organized trai nings, and in one year more than 900 employees successfully passed over 30 internal educational and development programs of the center, which consequently justified the original expectations set by the management of the Bank. In addition, there is no doubt that one of the key priorities of the Bank is employee satisfaction. HR department in Hypo Bank actively conducts the employee assessment programs, which are incorporated in the employee satisfaction program. Originally, the program was based on yearly interviews of employees and their superiors on the subject of work efficiency and success, through self evaluation done by the employee, and the evaluation obtained from the superior. In order to upgrade the program, in 2007 HR department decided to introduce new actions. One of these actions was employee satisfaction survey. This type of survey is conducted among all employees in the end of every working year, and concentrates on the four most important areas of employee satisfaction: general satisfaction with work and work conditions, communication and interpersonal relations, leadership, bonus systems and career opportunities. Achieved results from the survey serve as the basis for strategy planning for the upcoming years. This is particularly important in order to include the opinion of the staff in the process of future strategy defining and decision making, so that everyone can benefit from it. Furthermore, obtained results were than given to the HR agency Advance Response International that deals with HR issues, and in this way anonymity and objectivity of the research was achieved. At this point, it is necessary to highlight that Hypo Bank has developed cooperation with several human resource agencies for the purpose of various types of train ings: project management, leadership and management, credit and market risk, etc. Asides from the efforts, which are focused on the improvement of communication among employees, inter-personal relations and management, the management of the Bank puts special emphasis on professional development of the middle and top management members. For that purpose, development center operating within the HR department was established in order to assess development necessities of the staff belonging to these levels of management. The center analyses results of interviews, surveys and supervisors suggestions, and consequently creates individual development plan for every employee. Another type of development plan created in the center, is team development plan, which is implemented on the entire teams working in specific sectors. In order to do business well, you need to have products of good quality, but asides from that, you need to have excellent staff. Therefore, we invest a lot in education and training of our employees. For example, in the second quarter of 2006, we realized a special trainee project. We hired motivated young people who had just completed their university education and we enabled them to pass specific trainings throughout the entire Group in two years, in order to get familiar with every aspect of the company business activities. They didnt have trainings only in Serbia; they also visited other Hypo companies abroad. As we often like to say in the Group: our greatest assets are our employees and for that reason we will continue to invest in their internal and external education. (Marija Sutanovac, Head of the HR department of the Hypo Alpe Adria Bank a.d. Beograd). Important point, which should be highlighted in this section, is opportunity for scholarships for university education of employees. Each year Bank supports further education of thirty selected employees and provides funding for their studies. This program represents a special kind of acknowledgement for talented and hard working employees. Furthermore, in cooperation with the Serbian Business Club Privrednik[4], the Bank provides scholarships for ten students, which are not employees of the bank, and in this way shows its support directed to the young people of Serbia. In this way, talented and perspective students have the opportunity to be in touch with the people from the most significant and influential companies in Serbia, and can find employment opportunities upon their graduation asides form their scholarships. 3.3. Marketing department and relationship towards clients Marketing department had a challenging task of providing support to all business activities of the Bank, once it penetrated the Serbian market. The key priority of the department was to create a positive image of the Hypo Bank, as well as to inform the Serbian population about its products and services. Corporate image strategy emphasized values of the bank: its tradition, innovative approach to business, Alps-Adriatic philosophy based on the regional banking client focus, partnership, security, corporate responsibility and independence. The main focus of the department was to create and promote the corporate image, which emphasizes that Hypo Alpe Adria Bank a.d. Beograd takes care of its clients in the same way as it takes care of its employees, and that it is a reliable partner who nurtures the local community in which it exists. The main element of the departments strategy was to create two-way communication with the clients: to reach the clients, and to hear their needs as well. For that purpose, the Bank introduced a special program called clients suggestions. Clients of the Bank have the possibility of sending their suggestions, comments,