The Royal Bank of Canada - Case Study Example

Name: Professor: Course: Date: The Royal Bank of Canada Case Study Analysis Introduction Royal bank of Canada was one of the best banks in the Canada. The bank is involved in credit facilities as well as customer financial system. The bank was awarded different accolades in the year 2012 resulting from its immense success in the world of financial institutions (Lewis, 2015, p.15). The name was awarded the best financial institution in Canada, as wellas best global business bank. However, this immense success preceded an economic overhaul, resulting to a low productivity on profits. This resulted from the 2008 global economy crisis, affecting most financial institutions. The bank was also involved in the issue of operational malfunction, for the period it experienced the economic down term. The bank management was little doing until when the overall manager imposed some regulations as well as strategies to keep moving forward. These operational issues resulted from the low employee productivity, resulting to low income generation (Lewis, 2015, p. 45). The human resource department in the bank one another issue affecting the institution. The department was not eligible for the down falling trend of the bank. The human work force department did little to help overhaul the results. The bank has local main branches at Canada as wellas several global branches at main interest overseas countries. The bank had a human force of over eighty thousands people (Kumar, 2014, p. 112). This paper analyses the main issues befalling the royal bank of Canada, while analysing the entire situation in the institution. Issues Analysis The main issue presented in the royal bank of Canada case is the low revenue s turnover. This issue was well depicted in the bank premises, and was supposedly originated from the effects of the 2008 global economic slant. The bank was one of the global financial affections is. The Canadian economy was little hit by the global economic issue, but the bank has several branches in overseas, these branches contributed immensely to the low revenues collection in the main bank 2015 accounts (Kumar, 2014, p. 98).The bank however upon imposition of several human resource regulations and operational strengthen was able to reverse the trend. The second issue alienating from the case study presented is the competition level in the Canadian and global financial institutions industry. The bank faced stiff competition from both local bank at Canada, and the global financial institutions from global economies such as Unites States, Middle Eastand South America as well as in Europe (Bradlow & David, 2010, p.34). The stiff competition was evident in lowering of the revenues, as well as poor strategizing by the previously existing management, before the management presented in the case took over. The third issue presented in the case is the manager’sineffectiveness in job, this issueshas contributed to laxity in job, and manager’s failure to contribute to the success of the company. The collaboration of the managerswith the entire humanresource management department is seen as the real issue in coping with this (Hull, 2015, p. 67). The manager’seffectiveness program at the royal bank of Canada is the program meant to help improve the productivity of each branch manager. This program has a score sheet, where all managers are rated, in accordance to their probability top change their performance. The managers are then ranked on several aspects. The managers are grouped into the most likely to succeed under the proposed program, the alreadysucceeded upon the implementation of the program and lastly the least possible to succeed in the provided program conditions (Hull, 2015, p.45). Reach manager is given a complete set up of how toorganise his work team, in achieving an extra revenue target, hence improve the overall performance of the Bank. The bank was having poor collaborations in its branches, with poor productivity presented in several of the bank’s branches. This highly influenced the performance of the banking institution in its revenues, the managers effectiveness program was one of the strategies used to core t this trend, with many of the managers citing an effectiveness of the program (Hull, 2015, p.56). The program, was meant to improve the departmental production improve collaborations between the human resource department with the managers of the department and lastly improve the revenues turnover. Incompetence in the financial main executives as well as subordinate groups is another issue emerging in the system. The several levels of functional groups on human resource department have to undergo training in the bank to improve their financial system competency. The coaching is as well offered to the managers in the least likely to succeed group (Bradlow & David, 2010, p.67). All other managers are as well coached to strengthen their skills. Training is imposed to all bankemployees. Thelittle know how is essential in achieving theorganisation goals. In the movesto put data into the work, the bank uses the main issues presented as a means to reach at its problem solving agenda. The chief managerMs. Scott makes a move of collaborating with the top ranking officials in the human resources department. Her strategy in collaboration is seen as thedrivingforce in making the financial company increase in production (Bradlo & David, 2010 p. 34). The move as well helps improve the partnerships with several departmental managers, helping them work together in collaborative means to achievetheir set goals. Each department has its set target, given by the top management; in linewith their manager effectiveness program classes (Carmichael et al., 2002, p.87). This move helps improve the production in revenues at large. Another issue in dealing with the managers in the low cohorts of production groups as wellas the new incumbent managers is the training. This methodhelps the low ranked managers find the fundamentals in helping improve their performance, the training is as wellincorporated in the managers with their subordinates, so as to work as a unit (Carmichael et al., p.93).All the bank branches working as a unit helps understand each other capabilities, hence coordinating well for the betterment of results. There are three types of this competence reinforced evident, these are; the formal training, meant for the familiarisation either the management fundamentals; the formal coaching, touching on improving the managers effectiveness and lastly the feedback system, of reporting to the officer in charge (Gup, 2011, p. 45).The strategy of training for managers is the most effective, with immense positive results reflected upon evaluation. In the SWOT analysis, the royalbank of Canada presented in the case studyinvolves several internal as wellas several factors influencing the bank financial position., in the internal factors, several strengths and weaknesses alienating from the internal business environment steer the performance of the bank, ion the positive side, the strengths in the banking institution are the following; the strong market share of customers the bank possesses, the effective management of the bank, the proper financial credit and financial system leverage, over others (Gup, 2011, p.67­). On the negative side, the bank has several weaknesses, some of them are; the incompetence of some departmental managers, the low employee turn up and lastly the low revenues, lowering the bank expenses on other aspects. The external business analysis involves several opportunitiesand threats on the opportunities side, the bank has a complete competitive advantage over its main competitors, as well as an already established market share (Gup, 2011, p.11) states that the bank as well on the threats side, it suffered froma fierce 2008 economicslowdown, as well as several political issues in the overseas countries. All these weaknesses and the weaknesses alt the performance of the bank. Conclusion The key issues identified in the case for the 2012 royal bank of Canada contributed to the slow revenues turnovers in the financial institution. These issue as presents in the case were; the low revenues collection; the incompetence of the key employees, such as the manager as well as the human resource managers; the fierce competition in the banking industry and lastly the poor departmental results. On the solutions side, the strategies employed by the company CEO were the most effective and competent forms of management seen. The chief manager in the case study employstraining to managers as the key move to improve performance, the CEO as well indulges in t]a program to improve the performance of the key managers, the managers effectiveness’ program. The process of data collecting in the bank is also strengthened. These strategies are effective in improving the bank performance. Recommendations Royal bank of Canada needs several actions to affect its success and help leverage its once existing Canadian and global leader in financial and credit facilities. The key recommendationspossible for the royal banking institution are; 1. Formal training and formal coaching for the keybanking managers, to help improve their departmental productivity, 2. Imposition of the manager’s effectiveness program, torank the managers on their performance, and help improve the low ranked managers. 3. Improve net of the customer relations as well as the customer offers given by the bank tariffs, including the interest rates charged on loans. 4. Improve net of the command chain, to allow [roper feedback, transparency and data management in the facility. Works Cited. Bradlow & David, 2010,, Daniel D., and David B. Hunter. International financial institutions and international law. Alphen aan den Rijn, the Netherlands Frederick, MD: Kluwer Law International Sold and distrubuted in North, Central, and South America by Aspen Publishers, 2010. Print. Carmichael, Jeffrey, and Michael Pomerleano. The development and regulation of non-bank financial institutions. Washington, D.C: World Bank, 2002. Print. Gup, Benton E. Banking and financial institutions a guide for directors, investors, and counterparties. Hoboken, N.J: Wiley, 2011. Print. Hull, John. Risk management and financial institutions. Hoboken, New Jersey: John Wiley & Sons, Inc, 2015. Print. Kumar, Rajesh. Strategies of banks and other financial institutions theories and cases. San Diego: Academic Press, 2014. Print. Lewis, Marcos. Lash boys. A financial Wall Street revolt. S.l: Penguin Books, 2015. Print. Read More