“Work Design” For Future Banking in Sri Lanka
"You cannot mandate productivity; you must provide the tools to let people become their best". — Steve Jobs
“Work Design” For Future Banking in Sri Lanka
Work design for future banking will be based on the evolving needs of customers, technological advancements, regulatory requirements, and staff expectations.
"Work design is the creation of systems of work and a working environment that enhance organizational effectiveness and productivity, ensure that the organization becomes ‘a great place in which to work’ and are conducive to the health, safety, and well-being of employees (Armstrong and Taylor ,2014).
Work Design: History.
Before the Industrial Revolution, Jobs were small-scale and artisanal, with workers possessing a wide range of skills to perform various tasks arranged around the traditional crafts and skills.
"Work design began with the concept of the division of labour originated by Adam Smith (1776). Much later came ‘Taylorism’, the scientific management movement pioneered by Taylor (1911), which was based on the belief that the most efficient way to do tasks was to remove the responsibility for how to do the work from the individual employee to engineers or managers. The next step was ‘Fordism’, the moving assembly line introduced by Henry Ford in 1914. Thereafter, the practice of work simplification became embedded in organizations and, to a large extent, still exists (Armstrong and Taylor, 2014).
Human Relations Movement: In 1920s–1930s led to a better emphasis on job satisfaction, employee well-being, and participative decision-making. Researchers like Elton Mayo conducted studies that highlighted the importance of social and psychological factors in employee motivation and productivity. The researchers; Frederick Herzberg (1968: 83) and Hackman & Oldham (1974) developed theories advocating for job enrichment and the redesign of work to enhance employee motivation and satisfaction, ‘vertical job loading’. Job characteristics theory identified key factors such as skill variety, task identity, task significance, autonomy, and feedback as critical for creating meaningful and engaging work experiences.
With the rise of globalization in 1980s, the technology and dynamic business environments, work design approaches have become more contingent upon organizational context and individual preferences. Flexible work arrangements, such as telecommuting, job sharing, and flexible scheduling, have gained prominence to accommodate diverse employee needs and preferences. While humans focus on higher-level cognitive tasks requiring creativity, problem-solving, and interpersonal skills. Automation has led to the redesign of jobs, with routine tasks being automated,
More recently, the notion of ‘smart working’ has emerged. Essentially, this means managing the work environment in order to release employees’ energy and drive business performance. Smart working, as described in detail later, has been the subject of extensive research conducted by the CIPD (2008) (Armstrong and Taylor, 2014). Work design continue to evolve in response to digitalization, globalization, demographic shifts, and the economy. There is growing with creating flexible, adaptable, and inclusive work environments that promote employee engagement, well-being, and performance.
Banking Sector in Sri lanka.
"The banking sector in Sri Lanka, which comprises Licensed Commercial Banks (LCBs) and Licensed Specialized banks (LSBs), dominates the financial system and accounts for the highest share of the total assets in the financial system. Banks play a critical role within the Sri Lankan financial system, as they are engaged in provision of liquidity to the entire economy, while transforming the risk characteristics of assets.
Banks also engaged in providing payment services, thereby facilitating all entities to carry out their financial transactions. On the other hand, banks can create vulnerabilities of systemic nature, partly due to a mismatch in maturity of assets and liabilities and their interconnectedness. Therefore, the soundness of banks is important, as it contributes towards maintaining confidence in the financial system, and any failure may have the potential to impact on activities of all other financial and non-financial entities, and finally the economy (Central Bank of Sri Lanka).
When organizing a “work design” for future banking, the following factors will be critical to focus on to enhance organizational effectiveness and productivity while ensuring the organization becomes a great place to work.
Evolving Needs of Customers on Banking.
The Work design will shift towards
accommodating a digital-first approach, with processes optimized for online and
mobile banking. Roles may
evolve to incorporate skills in digital marketing, data analytics,
cybersecurity, and customer experience management. Future work design will
prioritize delivering personalized and seamless experiences across all customer
touchpoints. Roles will
evolve to focus more on understanding customer needs, providing tailored
solutions, and building long-term relationships.
The Future of Finance Report 2023 identifies some
more customer expectations and preferences within banking:
· Customers use more digital channels: 45% of consumers in Europe used digital channels to purchase
banking products in 2023, up from 33% in 2020.
· Customers want more personalization: 66% of consumers say they'll leave a brand if it doesn't
provide personalized experiences.
· Customers are open to sharing their personal data: 56% of consumers are open to sharing their customer data for a better experience (Webber, 2023).
Technological Advancements.
Digital technology is transforming the banking industry by
improving customer experience, increasing operational efficiency, and reducing
costs. Artificial intelligence, blockchain, mobile banking, cybersecurity, big
data analytics, and augmented reality are among the key trends shaping the
future of banking. However, there are challenges to overcome, such as
regulatory compliance, outdated IT systems, cybersecurity, the need for skilled
professionals, and the risk of losing the personal touch in banking (Meah,
2024).
Regulatory Requirements.
Work design will emphasize maintaining high ethical standards and integrity in all banking practices. The banks will integrate social responsibility initiatives into work design, such as sustainability efforts, financial literacy programs, and community engagement initiatives. The work design will incorporate processes and controls to ensure compliance with evolving regulatory requirements. Future automation and digitization will streamline compliance processes, reducing manual effort and minimizing the risk of errors.
Regulations and compliance demand new technology to keep consistently shifting regulatory changes. Risk and fraud are also becoming more compliant with accessing and preventing them.
Work Environment for Future Bankers.
• Automation and AI Integration
Routine tasks will be automated using technologies like robotic process automation (RPA) and artificial intelligence (AI), freeing up employees to focus on higher-value activities with a branchless environment.
Workflows will be redesigned to integrate automation seamlessly, improving operational efficiency and reducing processing times. Further these work systems will be reduced the manual activities and create more freedom on staff with no requirement of physical space.
• Flexible Work Arrangements
Remote work and flexible scheduling will become more prevalent,
allowing employees to balance work and personal life more effectively.
Work design will accommodate distributed teams, virtual
collaboration tools, and remote access to banking systems.
• Agile Work Methodologies
Banks will adopt agile methodologies to enable faster
decision-making, rapid adaptation to changing market conditions, and increased
collaboration across departments.
Cross-functional teams will be empowered to work autonomously,
driving innovation and efficiency in product development and service delivery.
• Skills Development and Training
Banks will invest in continuous learning and development programs
to equip employees with the skills needed for the future of banking.
Training will encompass areas such as digital literacy, data
analysis, cybersecurity, and fintech innovation.
Modern Recognition for Organizations became ‘a great place in which to work.’
(Great Place to Work Sri Lanka ,2021)
The impact of “Work Design” on organizational productivity and staff satisfaction
Future Banking in Sri Lanka
Designing the future work environment for the banking industry in Sri Lanka involves considering many factors, including technological advancements, changing customer preferences, regulatory requirements, and cultural background.
Focusing on these aspects of work design that were discussed, banking institutions in Sri Lanka can create a future-ready workforce that is equipped to thrive in an increasingly digital, customer-centric, and competitive environment while managing to create systems of work and a working environment that enhance organizational effectiveness and productivity, ensure that the organization becomes ‘a great place in which to work’ and are conducive to the health, safety, and well-being of employees.
Financial Literacy Rate in Sri Lanka
57.9 percent of adults were reported to be financially literate in Sri Lanka, which shows a significant increase from the 35 percent reported by the GFLS 2014. Moreover, the gender gap in the financial literacy rates of males and females was 5.9 percentage points (Central Bank of Sri Lanka, 2021).
Conclusion
Digitalization and robotic processes, such as artificial intelligence, will be dominated by the banking industry in the future; hence, human intervention is very important in the banking industry on a different level, with both industry knowledge and knowledge of new technologies.
The future “work design” must be updated accordingly, considering evolving customer needs, staff expectations, technological advancements, and regulatory requirements. In Sri Lanka, financial, computer, and digital literacy rates are increasing consistently. Hence, technological advancements will play a critical role in creating systems of work and a working environment to enhance organizational effectiveness and productivity in the banking industry while preparing a great work environment with the positivity of the health, safety, and well-being of employees.
List of References
Armstrong, M. and Taylor, S.
(2014). Armstrong’s handbook of human resource management practice.
13th ed. KoganPage.
Central Bank of Sri Lanka,
2021. Financial Literacy Survey Sri lanka, Colombo :Financial
Literacy Survey Publication .Available from
https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/financial_literacy_servey_sri_lanka_2021_e.pdf
[ Accessed 30 March 2024].
Central Bank of Sri
Lanka. Banking Sector: Central Bank of Sri Lanka [Online].
Available from https://www.cbsl.gov.lk/en/financial-system/financial-system-stability/banking-sector[
Accessed 30 March 2024].
Centre for Transformative Work
Design (2018) What is Work Design? - Professor Sharon Parker [video].
Available from https://youtu.be/uR3dJJjSDdM [Accessed on 27 March 2024]
CEPR & VideoVox Economics (2017) The role of
financial regulation [video].
Available from https://youtu.be/Vx9fPKXkAxk [Accessed on 27 March 2024]
Department of Census &
Statistics, 2022.Computer Literacy Statistics .Available from http://www.statistics.gov.lk/Resource/en/ComputerLiteracy/Bulletins/2022-FirstSixMonths.pdf[
Accessed 30 March 2024].
Great Place To Work Sri Lanka (2021) Great Place to
Work® Conference 2019 [video].
Available from https://youtu.be/ulN4vDKdzkc [Accessed on 27 March 2024]
Huawei (2023) Future
of Banking: A Glimpse into 2050 [video]. Available from https://youtu.be/OyokCk5y7wU
[Accessed on 27 March 2024]
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A great article on the work design related to HRM. The future work design will be a huge impact on every categorized industries.
ReplyDeleteDefinitely, in the future, work design will play a crucial role in every industry when it enhances productivity by aligning with employees behaviors.
DeleteDivision of labor!! My favorite topic! This concept is so amazing... I love the blog
ReplyDeleteOverall, division of labor is highly effective in the banking industry as it promotes efficiency, risk management, customer satisfaction, and innovation, ultimately contributing to the success and competitiveness of banking institutions.
DeleteCorrectly said. Human expertise is irreplaceable, especially when it comes to complex decision-making, personalized customer interactions, and understanding the nuances of the financial landscape. In the era of digitalization, banking professionals who possess a blend of industry knowledge and expertise in emerging technologies are invaluable assets.
ReplyDeleteYes, human expertise is irreplaceable, even with technological advancements. Hence,
DeleteIndustry knowledge and knowledge of new technologies are important for future “work design.”
This can be seen as sharing best practices from one industry to another as well. Though the bank industry has unique requirements and work arrangements, the agile work mythologies and regulatory requirements arrangements can be identified as common practices in other industries as well. Thank you
ReplyDeleteBoth unique and common factors can be identified in each industry. Hence, the best practices may be applicable, but it is important to identify the unique requirements and future changes when conceded in a specific industry for “work design.” Thank You.
DeleteThe implementation of automation technology has enabled banks to increase productivity, simplify work design and improve customer service, growing deposits and revenue without adding staff.https://qz.com/1034873/mckinsey-robots-can-do-about-30-of-the-work-at-banks-but-they-wont-necessarily-take-jobs/
ReplyDeleteAgreed, even in Sri Lankan banks, some robotic machines have been used for customer services and some other functions. That is the main reason this article highlighted that both industry knowledge and knowledge of new technologies are important for “work design.” in Sri Lanka.Thank You
DeleteAgreed, even in Sri Lankan banks, some robotic machines have been used for customer services and some other functions. That is the main reason this article highlighted that both industry knowledge and knowledge of new technologies are important for “work design.” in Sri Lanka.Thank You .
ReplyDeleteThis is a great point Amila! The banking industry will need a workforce with a unique blend of human expertise and digital fluency. In the future, bank employees will need to be comfortable working with AI, data analysis, and other emerging technologies. To prepare their workforce, banks can invest in reskilling and upskilling programs focusing on these critical skillsets. Additionally, adapting work design to include more remote work opportunities, flexible schedules, and collaborative technologies can attract and retain top talent in this evolving landscape.
ReplyDeleteYou have articulated it well. Your perspectives underscore the crucial transition in the banking sector towards a workforce that combines human expertise with digital proficiency effortlessly. Prioritizing reskilling initiatives and embracing remote work options are essential measures for banks to succeed in this ever-changing environment. Thank You.
DeleteAppreciate your excellent updates of this HR function and Exciting Majestic thoughts,
ReplyDeleteActively tries to think creatively Consistently comes up with new updates of one of the HR functions, Thinks “outside the box” to come up with different ideas and Recognizes different points of view,
Good article
It is important to think of each HR function from a different perspective since technology is dominating each industry. Thank You
DeleteThe article discusses the evolution of work design in the banking industry in Sri Lanka, focusing on factors that will shape the future of work in this sector. Key aspects covered include:
ReplyDelete1. Evolving customer needs
2. Technological advancements transforming the banking industry
3. Regulatory requirements emphasizing ethical standards
4. The future work environment in banking
Focusing on these aspects work design banking sector in Sri Lanka can create a future-ready workforce equipped to thrive in a digital, customer-centric, and competitive environment.
Certainly! By paying attention to these elements of work design, the banking industry in Sri Lanka can develop a workforce prepared to thrive in a digital, customer-focused, and competitive environment. Thank You!
DeleteNicely explained. Work design is essential for the survival of banking industry as I think. Specially, personalized customer experience provision caught my attention. In that way customers would reach out expecting a proper and convenient services. Customer needs and expectations are evolving by the day, only by adapting to those will future proof the survival of this industry.
ReplyDeleteConsidering the dominance of technology in every industry, it is crucial to approach each HR function from a unique perspective. Thank you.
ReplyDeleteInsightful article on work design Amila. This is one of important topic even for outside of banking sector
ReplyDeleteThank you! The design of work is important in all industries, not just in banking. It's encouraging to see its significance recognized across different sectors. You did a great job emphasizing its importance!
Delete