Leadership and Management Development - Essay Example

 Leadership and management form the fundamental instruments attributable to the success of any organization (WARKENTIN, 2002). This paperintends to examine the leadership and management aspects of Barclays bank through the application of theories, which include the Porters Diamond concept. Moreover, the paper intends to examine the implications of apt governance in an organization. Barclays bank is a British multinational banking company, which has its headquarters in the United Kingdom. Barclays is a worldwide bank whose operations range from retail, wholesale and investment banking (TALBOT, 2012). In addition, it deals with property management and mortgages. It operates in over fifty countries across the world registering over forty eight million clients. Barclays is classified into two clusters, which include the corporate wealth and investment and wealth and investment management (ROUSSEL, 2013). The general composition of any management structure and flow include controlling, planning, organizing, leading and the directing function of the management. The dynamism in technology and the overall globalization are attributable to the leadership and management styles in today’s organizations, particularly the corporation under consideration. For instance, Barclays bank has an intensive structure of communication from a centralized point (TALBOT, 2012). The global operations of Barclays are monitored from a central location. This has been made possible by embracing technology in networking and programming. In fact, the bank’s management is able to monitor millions of transaction daily (PETERS & AUSTIN, 1985). This is one of the primary benefits of technology. This study observes that, Barclays bank embraces a considerable level of virtual management compared to physical. The bank has edged competitively in the banking and investment industries through apt leadership and management skills, which are in line with the latest technological trends (SHACKLETON, (n.d.). Barclays bank leadership and management structure Barclays bank’s leadership and management consist of numerous departments and sub-departments that act as the overall administration unit of the bank (MONDY, NOE, & GOWAN, 2005). Some researchers term it as the heart beat of the company (LEES, 1992). It oversees and coordinates all the activities of the bank in a daily basis. In fact, its absence literally implies absence of the bank’s transactions. Consider the following structure. Courtesy of Mumford A. and Gold, J. (2006) Management Development: Strategies for Action, London, CIPD Management Strategy and structure alignment at Barclays bank The primary function of the management and leadership team of any organization is to work to ensuring high level of alignment between the company’s structure and the attributed strategies intended for execution. Alignment of the two instruments is fundamental in the overall realization of a firm’s objectives (MULLINS, 2010). For the case of Barclays bank, strict flow of information in both vertical and horizontal directions as illustrated in the management structure remains the core priority. It enables proper conveyance of information of emerging trends in diverse sectors of the firm. Such information needs to be relayed frequently due the ever-dynamic business milieu (SCHEIN, 1989). Effective managers should apply informal managerial skills to ensure interactive culture with all the stakeholders to facilitate effective leadership that is characterized by inclusiveness. Management and leadership operations As depicted from the structure above, the Barclays bank’s leadership has become more challenging due to the global dynamism that the industry is facing today. The company has become more flexible to change, responsive and less structured (PERREN, & BURGOYNE, 2002). While the CEO’s have remained the ultimate authority, the bank continues to depend on a number of subordinate leaders for critical decision-making. This move is intended to minimize delays which can subtle the smooth running of the bank (KOTTER, 1982, p.72) Management in the Barclays bank has involved some certain complex and routine functions, which are primary to the organization (PERREN & BURGOYNE, 2002). Barclays bank being a large organization with a considerable complexity in operation management has gone a step a higher of embracing dynamic and talented individuals at the helm of leadership (JACKSON, SCHULER & WERNER, 2011). For instance, the bank has embarked more on organizational leadership that has enabled the bank to deal with constant changes in the banking division. This kind of integrated management is effective in a largely segmented Barclay’s market niche (TALBOT, 2012). Recruiting of young, creative and focused leaders has intensified dynamism and cultural diversity. In fact, the aspect of recruiting managers from across the globe to head diverse departments has seen the Bank management gain fundamentally from diverse talents inclined to technological creativity. This has included recruiting supporting managers who are ready to provide operational leadership and carry the company’s vision (HOLMAN AND THORPE, 2002, p.21). These changes have seen the company recover from managerial unsoundness to a vibrant financial organization that competes healthily with other players in the field (SYRETT, & LAMMIMAN, 2003). It is attestable that, embracing dynamism, creativity and technology in the bank’s operations, which include marketing, supply management; execution of transaction, investment decisions and the overall overseeing of the bank has seen the financial corporation, expand its market niche and continue sustaining it (WORTHINGTON, IAN, & CHRIS, 2000). This study establishes that, the bank has extensive market niche both locally and globally (KOTTER, 1982, p.65). Marketing strategy and segmentation of Barclays The continued inventions in technology, marketing executives have been able to access the market through the Internet (WILLIAMS, 2011, p.32). Communication systems have boosted the efficiency of strategic planning by making possible for the marketing managers to obtain and analyze large market data volumes within a short period of time (MONTANA & CHANOV, 2008, p.34). For instance, according to the current head of Barclays’ corporate and investment banking, Ricci Ricci, a considerable extent of regional leadership and coordination is fundamental to meet the dynamism exhibited in the client’s demands (O'CONNELL & MEDICAL GROUP MANAGEMENT ASSOCIATION, 2006). Correct information on the market trend has enabled the bank to apply the theory of segmentation to position itself and enhance strategic development and management of corporate policy in both the local and international market niches (TALBOT, 2012). Barclays exhibit an enormous extent of segmentation, through the numerous subsidiaries spread all over the globe. The Barclays bank’s leadership culture Barclays bank provides a systematic training for associates and analysts interested in pursuing a career in investment banking. The training starts during internship and goes on throughout the career period. Each division is normally allocated a team that is dedicated to training and developing the individual (MINGERS, 2000). The training and development program comprises of three stages namely training, Support and network and Career development. This culture is intended to produce a competitive team in areas of investment and analysis or actuarial sectors. This team is oriented by the company’s training team and later absorbed into the company. The group joins the Bank’s staff, well informed on the bank’s operations and expectations (MUMFORD & GOLD, 2006). The new energy pumped to the corporation has seen the bank grow tremendously. In addition, Barclays bank embraces the rotational program in some selected fields such as investment and financial analysis. This helps the company to find the true and fair position of the company through comparison (HEERY, & NOON, 2008). Furthermore, the buddy program focuses on topics such as management and actualization of operations. This program exhibits a proven record of producing efficient managers. As part of the banks continuous training on professional knowledge, the bank provides both buddy and mentoring programs to smoothen an employee’s transition into the firm. The buddy program entails courses in technology and management (LEAF, 2007, p.79). This program is one of the instruments that have driven Barclays bank to another level of advancement in terms of emerging internet business. This has enhanced apt delivery of services and improvement of cross-channel collaboration within the banking service industry (MATHIS & JACKSON, 2010). In addition, these programs enable the company to have efficient team at the management level embracing isolated tactical management development intended to optimize the bank’s decision-making and mitigation of risk in relation to information technology investments. This move has put Barclays bank at a competitive edge (TALBOT, 2012). On the other hand, the bank’s policy on human resource development and empowerment has proven to be among the leading variable in the success of the corporation (LUIZ, 2006). The aspect of ethical conduct attributed to the human resource department and staffs serves well in defining the corporation’s image and social status. It is imperative to note that, the current Chief executive Mr. Antony Jenkins is focused in invoking a new moral high level to which all the employees of Barclays including those in the human resource department (TALBOT, 2012). This study establishes that, Jenkins performed an emphatic moral re-armament characterized by the words respect, service, stewardship and integrity. These words form special tools that define the ethical code of conduct of the Barclays employees. This sense of ethical appreciation has endeavoured in renewing the brand of the bank from a less caring or concern financial institution to a more proactive and vibrant service provider (HOLMAN & THORPE, 2002). Barclays bank as considerably gained its brand by embracing the overarching strategy (TALBOT, 2012). This strategy has seen the bank succeed in bank investment. Running of a bank on such foundation of high ethics is fundamental in the growth and survival of the banking institution in a competitive investment banking business (BUHLER, 2002). Barclays bank has managed to do so, what lays a head of this corporation’s success in expansion, and sustenance of it market niche (HOLMAN & THORPE, 2002). Challenges facing Barclays and management solutions Despite the bank recording much progress, considerable legal challenges in running its operations has remained a hard nut to crack (TIDD, 2000, p34). The bank posted a net loss of about 106 million pounds in the three months that ended in September 30 (MINTZBERG, 1973). Barclays bank shares fell to 4.7% trading in London. The bank also reported that the British authorities were investigating the legal terms in which the bank paid Qatari investors in the efforts of the bank’s capital raising. American regulators were also pursuing similar charges but the bank has been cooperating with the authorities (FAYOL, 1916, p78). The legal mishaps occur due to the diversity of the global market niches. However, amicable management solution on legal compliance needs to be embraced to avoid further loss. For instance, Barclays bank should invest a lot in the feasibility tours (FERRIS, BUCKLEY & FEDOR, 2002). This creates a platform of understanding the legal undertakings of financial institutions in different nations. The porters Diamond concept on management strategies and development The Porters Diamond concept indicates that there may be intrinsic reasons, why some Barclays branches are vibrant than the rest (MUMFORD & GOLD, 2006). The model indicates that the state home branches perform well compared to the international ones. An apt management and leadership practice requires coordination of the five forces of the Porter’s concept to attain the company’s objectives (LEITNER, 2007). Consider the following diagram of the porters’ theory. The porter’s concept explains overtly on how various but associated factors contribute to the whole product differentiation. The management of Barclays bank embrace tactical management attributes to integrate the forces. The diagram below gives direction on how managers are intended to appraise hidden level of profitability, prospects and risk through integration and alignment of the Porter’s forces with the relevant conditions (DRUCKER, 1985).This is founded on the long-term affluence of a market niche for the Barclays bank. Courtesy of LUIZ, J. (2006). Managing business in Africa: Practical management theory for an emerging market. Cape Town: Oxford University Press The market model of the banking and investment industry in the UK is principally acknowledged by the convoluted and quick-witted strategies, which are in tandem with the dynamic trends of the local and global economic standing (LUTHANS, 1988). Moreover, the fundamentals and attributed home base gains propel a firm to set up and protract a niche in the global market niche. This is unfavourable to those countries with less incentive base support. Porter argues that, such corporations are unable to extend the already occupied niche (BAKER & DORAN, 2007). The market strategy in the present forceful and exceptionally globalised industry space require Barclays to embrace continuation of application of online marketing approaches. This study observes that, for Barclays bank to continue and sustain creating an international souk for the banking and investment services and global brand requires use of online advertising approach (BUHLER, 2002). Moreover, taking on of technology in doing commerce dealings saves time and money. Conclusion Barclay bank requires to continually embracing technological dynamism in business transaction, which include controlling, planning, marketing and even selling. In addition, the human resource department should continually embrace the ethical code of conduct (MCCAULEY & VAN, 2003). 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