Human resource issues entailed by the take-over of Credit du Nord by Society General (2004)

Résumé du document

The French banking system has met several restructurings since the 90's. Banking networks have now to propose, diversify and evolve services to their customers. Besides, these companies are in a more open market which entails international competition and the mergers phenomenon. Several examples show that this tendency affects the French banking system: the BNP and Paribas merger in 1999, the take over of Credit Lyonnais by Credit Agricole in 2003… Besides, the advent of single currency in 1999 accelerated the settlement of a Single European Banking Market; in fact, euro eases capital movements between member countries by making easier the financial products homogeneity and prices transparency. International comparisons bring forward the fact that French Banking System has an excellent rank. In fact, according to their assets or statements of account, French Major Banks are in the top first: Credit Agricole is ranked 5th with $46 billion of assets, BNP-Paribas is ranked 10th with $24 billion, Society General is 26th with $16 billion and Credit Mutuel is 35th with $13 billion…

Extraits

[...] As Mr Million told us, the CEO and the human resources department are not the only members of management who played an important role in the downsizing, the role of the managers, as the link between top management and the bottom was major. But one critic we can do is that they haven't been prepared enough to this new responsability. They have to follow their which wasn't optimum. In fact, they must have been fully informed about the reasons for the layoffs and be given updates so they can stop the spread of destructive rumors. Exaggeration, misinformation and fear all fuel anxiety and destroy productivity. [...]

[...] That is one of the major hot buttons concerning the operation of Crédit du Nord. To what extent is an HRM manpower policy efficient when the firm is not ready to listen to its workforce and to design new functions? Of course that assessment has to be moderated for the efforts made in terms of HRM during the merger were colossus. Mr Million really insisted on the communicative aspect that was hugely favoured. But it is right to wonder if people were still motivated to work with other teams, below other orders etc The role of the managers Even if Mr Charles Million had the idea to evaluate people not only on their results, we can see that the method he used is typically characteristic to the bureaucratic structure. [...]

[...] Before the acquisition of Crédit du Nord by Société Générale, Crédit du Nord employed 6000 persons, and so did Société Générale. But when they merged, working only 6000 had to stay within the organisation. The personnel managers had to redefine all the jobs needed by the firm, and to make them match with the existing workforce coming from both parts. Crédit du Nord‘s DHR insisted on two main elements to keep in view the firm's profile and productivity: the performance level of the employee, and the seniority. [...]

[...] That is why the management of industrial relations was of great stake for mister Million in the restructuring of Crédit du Nord after the merger with Société Générale. Difficulties encountered and solutions brought As we pointed it out, this merger between the two banks brought at stake important issues for HR policy. In fact, the success of this over-take relied on how to deal with those problems and overcome the difficulties. Which solutions did Crédit du Nord use to come with the restructuration? [...]

[...] Factors which affect the efficiency of labor: 1. Inheritance: Persons from good collection are bound to work professionally. The quality and rate of physical as well as mental development, which is dissimilar in case of different individuals is the result of genetic differences Climate: Climatic location has a definite effect on the efficiency of the workers Health of worker: worker's physical condition plays a very important part in performing the work. Good health means the sound mind, in the sound body General and technical education: education provides a definite impact n the working ability and efficiency of the worker Personal qualities: persons with dissimilar personal qualities bound to have definite differences in their behaviour and methods of working. [...]