MANAGING CHANGE IN LEADERSHIP

INTRODUCTION

(SOURCE- www.deutschebank.co.in) Deutsche Bank AG (literally "German Bank"; pronounced [dt bak]) is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets. Deutsche Bank is the largest foreign exchange dealer in the world with a market share of 21 percent. Product and services of Deutsche:1) Daily banking in Savings and Current Account 2) Fixed Deposits 3) Loans to individuals and business units 4) Investment and Insurance The bank works towards planning a robust financial and wealth planning for clients. Deutsche Bank India provides services:1) Institutional 2) corporate 3) And individual clients in India Deutsche Bank has multiple access channels to their customers in the form of:1) ATM Banking 2) Phone Banking and 3) Online Banking. ASIA PACIFIC INSTITUTE OF INFORMATION TCHNOLOGY Page 1

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ASSINGNMENT-2: MAKING A DEUTSCHE MARK

(SOURCE- www.deutschebank.co.in) MR.Gunit Chadha serves as Managing Director of Deutsche Bank AG. Mr. Chadha serves as Chief Executive Officer of Deutsche Bank AG, India at Deutsche Bank AG. Deutsche Bank today announced that Gunit Chadha, Managing Director & Chief Executive Officer, India, will join Deutsche Bank's Asia Pacific Executive Committee effective January 1, 2005.In announcing the appointment Kenneth C Borda, Deutsche Bank Asia Pacific (ex Japan) Chief Executive said, "India is a global priority market for Deutsche Bank and Gunit Chadha has spearheaded our business growth in this important market since he joined the Bank in August 2002. His appointment to the Asia Pacific Executive Committee highlights the important role of India in the formulation and execution of Deutsche Bank's overall regional strategy." Chadha has 25 years of extensive Retail, Corporate & Investment Banking experience from USA and India. During 2000-2003, he was the CEO of IDBI Bank, and was awarded, "The Banker of the year 2001" by Business Standard. Prior to joining IDBI bank, he was with Citicorp Securities New York and earlier Head-Investment Banking for Citigroup-India, Nepal, Sri Lanka & Bangladesh. ASIA PACIFIC INSTITUTE OF INFORMATION TCHNOLOGY Page 2

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He acted as a transformational leader because he has the ability to get people to want to change, to improve, and to be led. It involves assessing associates' motives, satisfying their needs, and valuing them.

KEYS TO MAKE DEUTSCHE A MARK

Leadership: - Mr. Gunit chadha is a perfect leader who guides others toward a common goal, showing the way by example, and creating an environment in which other team members feel actively involved in the entire process.

Empowerment: - He gave empowerment to his employee which refers to increasing the spiritual, political, social, racial, educational, gender or economic strength of individuals and communities.

Risk management :- Risk comes from uncertainty in financial markets, project failures (at any phase in design, development, production, or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. Mr. Chadha has capacity to manage the risk.

Talent management: - He has the skills of attracting highly skilled workers, of integrating new workers, and developing and retaining current workers to meet current and future business objectives. Open door policy: - He initiated open door policy in bank where any area of worker has the responsibility to address their concern with a manager. Whether he has a problem, a complaint, a suggestion, or an observation, bank managers want to hear from you. By listening to them, the company is able to improve, to address complaints, and to foster employee understanding of the rationale for practices, processes, and decisions.

Wealth management: - He provided a professional service which is the combination of financial/investment advice, accounting/tax services, and legal/estate planning for one fee. It is more than just investment advice, as it can encompass all parts of a person's financial life.

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MANAGING CHANGE IN LEADERSHIP Deutsche Bank specializes in the following areas:1) Deutsche Bank has always been an internationally focused bank. 2) Deutsche Bank was involved in railway funding. 3) Deutsche Bank also has a Private Client and Asset Management (PCAM) division which is not under the Corporate and Investment Banking umbrella. 4) Deutsche Bank was a domestically focused commercial bank, without much of an investment banking presence. 5) Global Transaction Banking is also within the Global Banking franchise. 6) Global Markets is the trading division. It has been involved in debt and equity trading and has quite a large presence in derivatives trading.

Financial performance of Deutsche bank

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MANAGING CHANGE IN LEADERSHIP

YEAR NET INCOME IN b 2003 1.4 2004 2.5 2005 3.5 2006 6.1 2007 6.5 2008 -3.9 2009 5

0 2009 2003 1 2 3 2008 2004 4 5 6 7 2007 2005 8 9

2006

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CONCLUSION
DEUTSCHE BANKS has indeed working very hard for increase performance over the last years; the picture is a positive one. Bank emerged from the crisis with a strong capital base and without having to resort to government support or intervention at any point, allowing them to continue investing in line with the needs and aspirations of their corporate clients. Indeed, Deutsche Bank's Strengthened position has manifested itself in a number of ways. First, their client base has expanded to include new industries and sectors such as specialty finance. Second, in terms of presence, Deutsche Bank has continued to expand in line with clients' business expectations. Most notable in this regard is their recent acquisition of 20% of ABN AMRO's commercial banking activities in the Netherlands, which has made us a key domestic player in the country with a presence in 16 cities. Underlying all these successes has been the ability to continue investing in products, systems and expertise reaffirming the bank's commitment to this sector and allowing us to benefit from the flight to quality and security in the transaction banking space.

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MANAGING CHANGE IN LEADERSHIP REFRENCE Books

John P. Kotter, T 1990, What Leaders Really Do, Harvard Business Review.
Luthans, F., 2011, Organizational Behaviour. 12th edition, Singapore, Mc Graw Hill. M. McCaskey, T 1997, Framework for Analyzing Work Groups, Harvard Business School Boston. McShane, S.L, et al, Organizational Behaviour. 4th edition, New Delhi, Mc Graw Hill.

Journals
Bateman, T. And Griffin, R., 1986, Job satisfaction and organizational commitment. New York. Charlotte Garvey, T 2002,Steering Teams with the Right Pay, HR Magazine. Forbes,T 2002, Does Rank Have Too Much Privilege?, Wall Street Journal Websites Transformational leadership Available From: http://psychology.about.com [Accessed 5th December, 2011] Available From: http://www.db.com [Accessed 7th November, 2011]

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APPENDIX
Transformational Leadership Theory According to Cox (2001), there are two basic categories of leadership: transactional and transformational. The distinction between transactional and transformational leadership was first made by Downton (1973, as cited in Barnett, McCormick & Conners, 2001) but the idea gained little currency until James McGregor Burns (1978) work on political leaders was published. Burns distinguished between ordinary (transactional) leaders, who exchanged tangible rewards for the work and loyalty of followers, and extraordinary (transformational) leaders who engaged with followers, focused on higher order intrinsic needs, and raised consciousness about the significance of specific outcomes and new ways in which those outcomes might be achieved (Barnett, McCormick & Conners, 2001; Cox, 2001; Gellis, 2001; Griffin, 2003; Judge & Piccolo, 2004). The idea of transformational leadership was developed further by Bernard Bass, now Distinguished Professor Emeritus of Organizational Behavior, at the State University of New York (Binghampton), who disputed Burns conception of transactional and transformational leadership as opposites on a continuum. He suggested instead that they are separate concepts and that good leaders demonstrate characteristics of both (Judge & Piccolo, 2004, p. 755).

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MANAGING CHANGE IN LEADERSHIP The democratic leadership:The democratic leadership style is a very open and collegial style of running a team. Ideas move freely amongst the group and are discussed openly. Everyone is given a seat at the table, and discussion is relatively free-flowing. The democratic leadership style means facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision. The democratic leader must also be able to communicate that decision back to the group to bring unity the plan is chosen. When situations change frequently, democratic leadership offers a great deal of flexibility to adapt to better ways of doing things. Unfortunately, it is also somewhat slow to make a decision in this structure, so while it may embrace newer and better methods; it might not do so very quickly.

1. Democratic leadership style can bring the best out of an experienced and professional team. It capitalizes on their skills and talents by letting them share their views, rather than simply expecting them to conform.

2.If a decision is very complex and broad, it is important to have the different areas of expertise represented and contributing input this is where democratic leader shines.

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