Answer these 2 questions: word limit 500 for both the answers

CASELET 3 Bank of Hyderabad (BOH) was a small bank established in Hyderabad in 1990. The bank slowly established its branches throughout Andhra Pradesh and became the most trusted bank in the private sector. The hard work and management expertise of the founder and CEO of the company, Satyanarayana Murthy (Murthy), was the main reason for BOH's success. BOH grew rapidly and soon spread its branches across India. BOH also entered into the non-banking financial services sector. Murthy wanted BOH to be a one-stop shop for all financial products and services. With the help of its committed staff, BOH performed well in the area of non-banking financial services also, and earned profits. But Murthy wanted BOH to be a leading financial services provider in India, and not just one of the profitable organizations. Therefore, Murthy analyzed the strengths and weaknesses of the company. He noted that BOH was neither a low-cost player nor had it differentiated itself from the other players in terms of customer service. He immediately identified two leading banks in the industry to serve as benchmarks for BOH to follow. While one bank raised funds at the lowest cost, the other understood customers' needs and developed customized solutions for them. Murthy directed his managers to strive to outperform these leading banks. Managers were rewarded based on their efforts to improve the performance of the bank. Another fact identified by Murthy was that BOH did not offer convenience to customers. In the existing system, if a client had three different requirements from BOH, he had to approach the relevant departments separately. The process was time-consuming, and there was a danger that the client would take a portion of that business elsewhere. To tackle this problem, Murthy, set up three departments - Corporate Clients Group (CCG), Individual Clients Group (ICG) and Non-Performing Assets Group (NPAG). Employees in these groups helped the client to get his job done without having to make several visits to different departments. The employees in NPAG complained that they always dealt with lower-end clients and that this affected their ability to compete with their colleagues in the other departments for performance ratings. As the chances of recovering bad debts were always less, the revenue of NPAG was always lower than that of other departments. The bonus for BOH employees was based on the performance of individual profit center/department rather than the entire organization. This affected the appraisal ratings and career growth prospects of employees in NPAG. While the employees were still struggling with internal problems, Murthy took a major decision. He decided to merge BOH with a small financial services provider, Akhira Finances (Akhira). Murthy faced stiff resistance to his decision from his employees who feared that the merger would result in job losses. But Murthy was confident that the merger would benefit BOH and went ahead with it. BOH had a much larger workforce than Akhira. There was also a vast difference in salaries, profiles and designations of the employees of the two banks. Akhira paid uniform salaries to employees in similar positions while BOH paid salaries to employees based on their individual performance and performance of their department. BOH concentrated on urban marketing whereas Akhira was a rural-oriented organization. Murthy had a tough time implementing the merger of the two unequal organizations. However, with support from the HR department and an external consultancy, A22 HR solutions, Murthy completed the merger successfully. QUESTIONS FOR DISCUSSION: 1. What were the various changes initiated by Murthy? Was he right in his decisions and actions in each of these change initiatives? Substantiate your answer. 2. Were the apprehensions of BOH's employees during the merger justified? What steps can be taken by the management at BOH to overcome employee resistance to change