UNIVERSITY 1 DECEMBRIE 1918ALBA IULIA FACULTY OF BUSINESS ADMINISTRATION

Human Resources and Customer relationship Management

Student: AYDIN ERASLAN Coordinating Professor:? If I need to write your prof.name tell me

2012

Table of Contents

1. Introduction 1.1 1.2 1.3 Definition of Customer Relationship Management Definition of Human Resources BRD- Group Societe General

2. Customer Relationship Management and Human Resources in BRD-Group Societe General 2.1 2.2 Customer Relationship Management The Use of Human Resources in Customer Relationship Management

3. The Result of the BRD Express Project

1. Introduction
There is a close relation between Customer Relationship Management and Human Resources in every organization or enterprise, the same relation is available for BRD Societe General who in 2004 started a reorganization and expansion program, the aim of this program was to open 700 units and 70 branches by the end of 2007. Before presenting the BRD Groupe Societe General case I will explain the two concepts that make the subject of this project, Human Resources and Customer Relationship Management.
1.1. Definition

of Customer Relationship Management:

Customer Relationship Management consists of the processes a company uses to track and organize its contacts with its current and prospective customers. CRM software is used to support these processes; information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing. From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a number of employees in different roles and departments. CRM is a combination of policies, processes, and strategies implemented by an organization to unify its customer interactions and provide a means to track customer information. It involves the use of technology in attracting new and profitable customers, while forming tighter bonds with existing ones.

1.2. Definition of Human Resources:

Human Resources is a term with which organizations describe the combination of traditionally administrative personnel functions with performance, Employee Relations and resource planning. The field draws upon concepts developed in Industrial/Organizational Psychology. Human resources has at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production. The more common usage within corporations and businesses refers to the individuals within the firm, and to the portion of the firm's organization that deals with hiring, firing, training, and other personnel issues. This article addresses both definitions.The objective of human resources is to maximize the return

on investment from the organization's human capital and minimize financial risk. It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner.

1.3. BRD Group Socite General

The example I have chosen in order to illustrate the involvement of human resources in customer relationship management is BRD-Groupe Societe General Romania. BRD-Groupe Societe General lounched in the 4th of October 2007 a new network development project called BRD Express. The inspiration of this project comes from the experience gained in the previous years by the Societe General Group but also by other european banks. The project has defined a new banking agency conept in relation with its clients, natural persons, which has its fundation in the following three key charactristics: Closeness to the potential customer Simplicity The clients comfort and the speed of operations BRD has lunched the BRD Express project through the opening at the same time of 33 new units both in Bucharest and in the most important cities of the country. The public relations campaign was the first initiative of communication concerning the BRD Express project, the campaign being built in order to complete the classic and non conventional publicity which sustained the company commercial objectives. The project was implemented through several target segments: Direct (through media): News papers Economical publications Radio and TV stations News agencies Online Indirect (through potential customers, natural persons) The target age group is 18 to 50 years Persons who reside in the urban area, in the areas close to the new units

 People who wish to work with a bank

2. Customer Relationship Management and Human Resources in BRD-Group Societe General 2.1. Customer Relationship Management
Through the BRD Express project, BRD-Group Societe General intended to broaden its database, improve their services and bring new concepts to their clients in order to make the use of banks easier. Firstly, BRD intended to improve the communication with its clients through opening more units and branches throughout the country. Secondly, BRD made its services more accessible by putting units in key locations and also by putting in those units well trained employees that new how to do about everything the clients needed. Thirdly, the bank created an environment in which clients could feel comfortable and welcomed. Last, by taking into consideration the target age group which is between 18 and 50, BRD equipped the Express units with young, smiling employees so clients could feel comfortable and catered to.

2.2. The Use of Human Resources in Customer Relationship Management

The rhythm of expansion of BRD Group Societe General was materialized through the opening of over 400 BRD Express units starting with the year 2004 and lead to the recruitment of over 4000 new employees. In order to respond efficiently to the existing constraints in the market, the processes of recruitment, training and integration of new employees, went to a process of rapid adaptation and change. At the recruitment level, the selection instruments were revised, adopting interview techniques which were structured according to the specific competences of BRD-Group Societe General. The Human Resources director, Florin Luca said: Through putting criteria related to education of experience in a certain field of activity on the first place, BRD was able to attract candidates with medium of university education, with different specializations (economical, technical, juridical, etc.) with or without experience in the banking industry, also, in parallel,

diversifying the sources and also the methods utilized in order to attract candidates. In order to offer the clients a high standard of services provided and also in order for the employees to adopt the organizational values, at BRD the formation program in compulsory for all front-office employees, like front desk operator, client advisors and agency managers. The BRD employees spend 30 days in training where they learn techniques of using the information systems, technical information about the products and services offered, but also the behavioral habits which are essential to any efficient sales person. The curse includes the welcoming of the client, the commercial reflex and the efficient use of time. In order to respond to the need for training, BRD has opened in Bucharest, Predeal and Iasi Practice-Agencies which help new employees deal with real life training. The professional development department in BRD-Group Societe General is comprised by 23 permanent trainers specialized in different markets, who also work with 130 occasional trainers specialized in fields like: factoting, international commerce, risk, etc. Most of the trainers come from BRDs network (agency managers, client advisors, etc.) and they were trained on the techniques of communication and development. BRD has also created 17 local schools, one for each branch in the country. A local BRD school is equipped with 15 computers which are connected to a training database. This way the materials are insured for a continuous development of all employees in the group and branches. This way the local schools can ensure that all courses and training modules are available to all employees no matter their location. BRD Group Societe General spends about 5000 euros per year for the training of a top manager and about 400 euros for other employees. The result of the study Romanian HR Profile 2007 made in May-August 2007 showed that companies spent in average 247 euros for the training of top managers and 87 euros for the training of other employees. This study shows the big difference between BRD and other companies when it comes to human resources and it also shows that the human resources department holds a very important place in the customer relationship management of BRD. The result of this investment in training is that BRD is the number one bank when it comes to profit per employee.

3. The Result of the BRD Express Project

BRD is the institution with the largest network of branches and the second largest bank in Romania, with total assets of 3.8 billion lei (in july 2007). By August 2007 after investing 25 million euros BRD was oppening its 500th unit, mening that BRD opened more than twice than what they have planned in 2006. On the 30th of June 2007 BRD had 5.723 employees, 1.311 more than at the end of June 2005. The bank had 1.8 clients on the 30th of June compared to 1.5 clients on the 30th of June 2005 . However, eventhough the structure and the idea of the project was in accordnce with the markets needs, the system had some flaws which dissapointed some of their clients. Although the idea of having a BRD uinit always close to you was very good the BRD Express units could not help clients if they they had not opened their accounts at that certain unit. Another problem is the fees and taxes that the bannk charges eventhough they claim not to charge you for those operations. All in all, I believe that the BRD Express was a very successful project and I also believe that with some improvements this project could bring even more clients to the bank than it already has.

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