StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Organizational Change in Umpqua Bank - Essay Example

Cite this document
Summary
This research is being carried out to explore the challenges faced by the Umpqua’s leadership in maintaining the culture and the future impact of mergers and acquisitions…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Organizational Change in Umpqua Bank
Read Text Preview

Extract of sample "Organizational Change in Umpqua Bank"

Organizational change Introduction The current Umpqua bank has grown over the years to become as great as it is now having started as a small community bank founded over five decades ago. Like most banks, Umpqua’s growth threatened to wipe away its culture which included the manner in customer service were handled and the general modes by which business activities were handled. The leadership, knowing that Umpqua's culture was their biggest asset, came up with measures to maintain it. Challenges faced by the Umpqua's leadership in maintaining the culture: One of the biggest challenges the bank faced was the influence of the culture in the other acquired bank branches on the culture of Umpqua bank. Adoption of other banks involved retaining the banks’ employees. These employees had got used to a different culture and it was therefore a major challenge to make them adjust to a new culture smoothly. To overcome this problem, the leadership injected Umpqua’s culture into the other bank branches by bringing their employees in busloads to Umpqua's stores to offer them with orientation. This enabled a real firsthand introduction to a new business world and which in turn made the employees feel the desire to change and hence adapt faster (Freeze, K., ND). It was a challenge for Umpqua to run its operations in a harmonious manner especially considering the fact that its individual stores were different in terms of size, demographics and layout. In addition, the branches were also different in the sense that their loan and deposit potential varied considerably. This therefore demanded individual stores to be handled differently. The bank created a cross-functional task force to look for the best means by which the challenge could be overcome. The taskforce provided a strategic financial proposal which later streamlined its operations. Competition from other large banks posed a serious challenge to Umpqua's desire to succeed. Banks such as Washington Mutual and Bank of America sent the leadership of Umpqua bank to the drawing board to come up with new strategies that would aid in retaining its culture now that their competitors had started copying their already-in-use strategies. In 2002, for example, Washington Mutual had its first ‘occassio’ branch opened whereas the Bank of America started holding experiments to ascertain the effectiveness of the branch design. To counter this, the leadership at Umpqua decided to invest in the best customer service delivery as compared to their competitors. Umpqua's customer service, especially its in-store customer service which was unique, was its competitive edge and so it had to be perfected (Freeze, K., ND). Umpqua bank with the aim of remaining the leader in the banking business settled on a plan to train and retrain its employees to ensure high standards of customer service. Hiring of new qualified employees was effected as a measure to arm the bank with enough manpower. The bank’s newly hired employees were trained in new and more efficient ways of dealing with customers and were tasked to put them in use while serving their customers. The future impact of Mergers and acquisitions Mergers and acquisition result in large banks gobbling up small banks in the process of creating networks both nationally and regionally. This will continuously lead to the increase in the number of the community banks. However this increase can also be caused by or realized if large community banks acquire small community banks and if small community banks continue to merge with each other. Continued merging and acquisition therefore, could lead to a situation where the resultant large banks start suppressing the small banks and even in worse case scenarios pushing them out of the market. This could lead to a banking business less considerate to customers with low income in a given region (Young, 2002). Mergers and acquisition lead to large banks hence favorable economies of scale. This could catalyze the big banks to take the advantage of the existing scale economies and initiate actions such as giving mortgages at low interests to their customers as compared to the small banks. This could negatively impact on the small banks who would find the banking business unprofitable for they may end up losing customers to the big banks (Young, 2002). From other perspectives, it has been argued that mergers may result in transfer of wealth to shareholders from employees, an act that would in the long run lead to disadvantaged employees. Mergers and acquisitions might provide loop holes for the new owners to use the new ownership contracts as tools of ensuring profitability of new firms at the expense of workers’ welfare. This results in the disregard of the previously signed contracts between former owners and employees about wages or other benefits while on the other hand causing an increase in shareholders’ wealth. The continued desire to increase firm profits by the new owners who also automatically become the new employers may result in the down sizing of the staff for some sections, like the catering department, may become irrelevant when two banks are merged. This may lead to mass lay-offs in some cases (Siegel, 2008). It is however argued that mergers result in a take and give situation and it does not always end up in disadvantaging the small banks. In certain business lines such as credit card lending and mortgage banking it is possible that the large banks are likely to have a substantial increase in market share, all at small bank’s expense. On the other hand the small community banks will experience increased market demand in certain lines of business such as small business relationships and other household deposits. This shows that, in as much as there will be shifting of customers from small banks to large so as to enjoy the economies of scale, there will also be those shifting from large bank to small banks to enjoy specific services provided efficiently by small banks (Young, 2002). If this mergers result in the implementation and use of new technologies for example, it might lead to the promotion and upgrading of skills of the workforce competitively. This is because the mergers and/or acquisition transactions may provide for mechanisms to stimulate and initiate measures that would result in investment in additional human capital (Siegel, 2008). Conclusion Mergers and acquisition are just modes of banks doing business. Each and every bank whether it is community based or not, is in a position to make a decision towards or against such. Success or failure as a result of mergers or non-mergers should be interpreted and understood that by the end of the day, it is still business. References Freeze, K., (ND) Umpqua Bank: Managing the culture and implementing the brand. Boston, MA: DMI. Young, R., ( 2002). “The challenges facing community banks: In their own words.” Economic Perspectives. 4Q. Siegel, D., (2008). Evaluating the Effects of Mergers and Acquisitions on Employees. NY: University of California Press. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Organizational Change in Umpqua Bank Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Organizational Change in Umpqua Bank Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/management/1583747-organizational-change-umpqua-bank-case-study
(Organizational Change in Umpqua Bank Essay Example | Topics and Well Written Essays - 1000 Words)
Organizational Change in Umpqua Bank Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1583747-organizational-change-umpqua-bank-case-study.
“Organizational Change in Umpqua Bank Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1583747-organizational-change-umpqua-bank-case-study.
  • Cited: 0 times

CHECK THESE SAMPLES OF Organizational Change in Umpqua Bank

Comparison of the Home Depot and Umpqua Bank

The researcher of this essay aims to analyze, compare and contrast the Home Depot and umpqua bank.... umpqua bank started as a small-scale retail in nineteen fifty three in Poland.... Compare and contrast Home Depot and umpqua bank Compare and contrast Home Depot and umpqua bank Home Depot was initiated innineteen seventy-nine, and is located in Atlanta.... umpqua bank started as a small-scale retail in nineteen fifty three in Poland....
2 Pages (500 words) Essay

Compare and Contrast Home Depot and Umpqua Bank

Compare and Contrast Home Depot and umpqua bank [Name] [Institution] Organization Culture of Umpqua and Home Depot Organizational culture is the personality or unwritten laws of an organization (Edgar, 2010).... This is illustrated by umpqua bank billion dollars and therefore positive culture needs to be put in place at the start of intervention of an investment.... Masculinity When both managers of home depot and umpqua bank took office, their first initiative was to change organizational cultures so as to make the companies more competitive....
3 Pages (750 words) Essay

Organizational Change

Fear is mostly due to lack of information and understanding related to the need for change and its future impact; fear may also be due to notions attached to job security, status, position or role; fear of failure in performance and rewards and fear associated with increased workloads; fear of change in work groups and disruptions to established interrelationships; and fear of change in power and authority (Nelson & Quick, 2012).... Running head: organizational change organizational change Name: Course: Date: It is a known fact that change is inevitable in business world; change helps businesses to thrive and sustain....
3 Pages (750 words) Essay

CEO Administration at Umpqua Bank

umpqua bank is a uniquely branded bank with a unique attitude that started in the State of Oregon.... It is known as the #1 large company to work for (umpqua bank, 1996).... They thought their culture was unique for a bank and they were correct.... The problem was that it was a time for bank mergers and their board did not in any way want that to happen.... Risky yes, but so was the things they had in mind for the bank....
5 Pages (1250 words) Essay

Organization and Organizational Change

Organizations must favorably manage all change… ichael Reiss emphasized “change management includes classifying performances in terms of best, above average, average, needs improvement, or poor” (Reiss 20).... Next, the author rightfully observes change management can allocate time to increasing performance outputs.... Dean Anderson emphasized “different factors contribute to the change management process” (Anderson 31)....
4 Pages (1000 words) Assignment

Organization and Organizational Change

One is convinced that overcoming resistance to change requires understanding of the need for the change that is to be instituted and communicating the relevance of implementing that change in the work setting.... rg/2013/04/change-management-needs-to-cha/The article focuses on reasons why implementing change in the work setting fails (Ashkenas).... Readers were apprised of transfer of accountability to a community of external ‘experts' who were apparently consulted in implementing change in the work setting....
2 Pages (500 words) Assignment

Umpqua Bank Operation Analysis

umpqua bank Case Study Analysis Affiliation Details Q1 Ray Davis leadership style can best be depicted as bona fide, centeredand transformational.... He assumed control over the leadership of South umpqua bank and used inventive rationalities and one of a kind leadership disciplines in growing South umpqua bank operations, subsequently making the bank gainful, lithe and consumer loyalties situated (Freeze, 2006).... In his residency, umpqua bank has turned into a monetarily steady and reliable undertaking that will keep on developing even as new pioneers are given the command to head it....
2 Pages (500 words) Essay

An Organizational Change within an Organization

Geographical expansion, the introduction of a new service or product, technological change, strategic change, change of policies, or rules and regulations, change in the organizational structure, downsizing and others.... This paper is an attempt to look at the key stakeholders involved in this process, preferred change management approach, steps that can be taken to avoid any adverse impact of the change and example of HP and how they managed to through the recent downsizing....
8 Pages (2000 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us