Management Styles for Human Resource in Corporate Banks - Essay Example

 Management Styles for Human Resource in Corporate Banks Introduction The advent of global competition in banking utilities poses threats to the long run performance of banking institutions. Therefore, the top management in these banks must reassert strategic management procedures to ensure that the employees undertake their tasks in relation to the organizations’ set of goals and objectives. Since the UK banking industry relies in employees’ competencies, the present institutions might face challenges on failing to establish proper managerial styles in dealing with the workforce to develop their morale in performing tasks that would lead to the acquisition of competitive goals and objectives. Theorists outline on the major forms of management styles as autocracy, democracy, participative, and laissez faire styles. The following discussion is a comparative review of management styles and the effects in Northern Rock Bank and Royal Bank of Scotland in UK. Management styles present in the two banks The essence of management in banks and other businesses is to ensure proper planning and execution of tasks through the human resource towards the acquisition of the set goals and objectives. The acquisition of these variables is possible through proper leadership skills whereby the managers are bound to organizing the programs set to stimulate the workers towards the acquisition of the set businesses’ objectives. Northern Rock Bank operates in the UK market as a multibillion organization serving over 50 million global clients. On the other hand, the Royal Bank of Scotland operates in the European continent and is seemingly a competitor to Northern Rock Bank since its capital base and clientele group seem to match closely (Friedman, 2011:141). History depicts that the two banks’ performances endured in crisis since the edge of economic crisis in 2008 to the present. However, findings reveal that the banks are restructuring towards acquisition of success and maintenance of their positions in the global markets. Arguably, the two banks crises emanated from top managements’ negligence to comprehend employees as important to the organization. Expert evaluations show that the Northern Rock Bank entered a streak of fallacies as financial accounts ascertained flaws. The bank’s top management concentrated on the surety that they had a large capital base thus the threat of failures in performances would not threaten the banks abundance in operations. On the contrary, the bank’s application of laissez faire (bureaucratic management style) threatened the abundance and prowess in the UK and global market platforms (Smith, 2010:78). The same case was evident in the Royal Bank of Scotland whereby the top management observed the bank’s performances as most crucial compared to the imposition of favourable strategies to ensure close workmanship between the organization and the workers (Innes and Norris, 2005:52). Employees in the two banks realized the presence of ignorance from the top management and lost morale in operations thus the banks would eventually fall in continuous streaks of failures as the operations dwindled. Arguably, the top management in the two banks failed to ascertain that the banks would face threats from the employees since the tally in each entity ranged between 120,000 to 150,000 in the UK and other global branches. In account for the Royal Bank of Scotland operations, the evidence accrued revealed that the top management failed to support human resource programs since with the notion that such programs were insignificant to the acquisition of the bank’s goals since it was a competitive entity in the global banking industry. Herzberg’s hygiene theory depicts through the theory X and Y approaches that people may perform effectively under negative and positive motivation respectively (Regester, Larkin, and Regester, 2008:97). Essentially, the bureaucratic and autocratic practices present in the Royal Bank of Scotland restrained the extent of employee-management integration since the set strategies emphasized on the establishment of financially related objectives with less relevance to the employees’ perceptions. Further, the two banks’ management practices differed from analyses of employees as part of the products citing that the amount of payments offered was more than what the other competitors would offer in the market. Certainly, Herzberg recites the importance of working closely with human beings, a factor that serves to deliver intrinsic motivation factors as a complement to the psychological needs (Luther, Jones, and Saxl, 2010:66). It is essential for the top management in all organizations to uphold the importance of motivating employees so that they may decipher the value of importance and belongingness in the organizations. Maslow established that the top managers in organization should execute decisions, rules, and regulations with close reflection to hierarchy. Maslow outlines on the importance of psychological needs, safety and social needs, and esteem and actualization needs. It is obvious that the managerial practices in these two banks deterred the perceived integration with the employees after offering the stipulated amounts of salaries to the different categories of workers. Contextually, Royal Bank of Scotland entered into crisis after the employee population stirred consistent problems within themselves and towards the management (Ranken, 2009:66). However, the bank relied on the £4 billion total payment for the thousands of employees as solid strategy to deter any threats from the employee fraternity but the bank’s top management realized that the conflicts threatened the organization’s long-term performances and deterred profitable growth in the market share (Thompson, and Martin, 2010:59). The banks’ top management made decisions solely without consulting the employee fraternities. Comparatively, the banks’ approaches and ill decisions in targeting the clientele groups and showing less significance to the employees’ views served as a major deterrence to the acquisition of profitable market share after the strike of the global economic crunch in 2008-2009. Statistical evaluations indicate that the two banks incurred huge losses and the auditors were unable to comprehend the baseline of the corruption acts since the two entities did not account for individual employee performances viewing the approach as rather insignificant so long as each employee earned his salary as prescribed. The management of the two banks further propelled the employee-organization conflicts since they did not accredit for the employees’ competencies thus denouncing Maslow’s stipulation on the importance of delivering intrinsic values salient to building the self-esteem needs (Wright, 2004:40). Therefore, streak of conflicts and redundancies in performances despite the acquisition of high amounts of salaries emanated from the lack of self-esteem in the banks’ workforce (Mishkin, 2007:74). Arguably, the two banks matched in the execution of bureaucratic management styles that led to failures in achieving the longrun objectives and the revolution of harmful conflicts that tainted the corporate images and led to the perforation of accounting statistics and loss of income due to corruption. Despite the banks’ being lenders of last resort to the UK economy, their neglect in applauding competence of the employees and incorporation of their sound decisions restrained the desired success since rivalry emanated within the employee fraternity after realizing of their insignificance in the organizations. Arguably, these two organizations’ managements had continuously failed in the establishment of ethical criteria of promoting, compensating, and remunerating the employees (Mishkin, 2007:45). The ideal method of ensuring proper management of employees in the service industry is through the establishment of democratic and participative leadership approaches. Consequently, the banks’ failures to acquire cohesive and integrative variables within the organization emanated from the imposition of stringent managerial styles whereby the top management delivered all the decisions unknown to them that the extent at which the employees would perceive discomfort they would stir conflicts. The two banks’ management thus matched in stringent decision-making and eventually suffered similar intense failures. In the period of 2010-2011, the two banks fell to verge of liquidation due to the lack of financial competence, and the continued conflicts in the employee fraternity (Harrison, 2007:70). The banks’ resolutions towards the establishment of good management styles Northern Rock realized that the corporate social responsibility of aiming at the clientele and stakeholder groups and neglecting the employee fraternity served to deter progresses rather than accruing the desired benefits. Similarly, the bank’s top management established strategic review of its employee relations and ascertained the importance of the incorporating them to strategic management and decision-making process. Currently, the bank embarks on close relations with the employees in their bid to establish joint decisions and propelling innovativeness since the employee have the ability to present their ideas towards the implementation of strategies. The approach is vital to the achievement of profitable. The management resolved to engage on intervention models to acquire the loyalty of employees abundantly. Northern Rock Bank’s management reasoned the corporation would acquire profitable outcomes after the inclusion the workers as part of the organization thus; they would perceive belongingness as stipulated by Maslow. The management established that through cohesive integration and the use of structured early intervention approaches would serve to critically evaluate the performances of the employees and acquire their loyalty to ensure participative approaches towards the corporation’s goals and objectives (Dweck, 2012:134). On the other hand, the Royal Bank of Scotland resolved to rekindle its operations and acquire profitable market share through the establishment of evaluation models that would identify the salient structures that challenged the corporation’s growth. The management reasserted that the workforce was an integral part of the organization and the extent at which they would perceive cohesion then they would carry out their duties for the benefit of the whole corporation. Secondly, the management established that the bank would accrue the desired benefits via the implementation of a metrics-measurement approach to define individual workforce contribution to the corporation’s human capital (Duffie, 2011:35). These approaches coincide with Herzberg and Maslow theoretical approaches that through positive motivation and evaluation of individual performances, and the issue of incentives to applaud the accrued outcomes would serve to enhance performance and accountability between the corporation and its employees. Lastly, Royal Bank of Scotland ascertained the importance of establishing online software for prompt evaluation of employees’ performances across its branch network thus acquiring the edge of effective management despite the bank’s overwhelmingly large population of employees. The two banks have in the present past engaged in the above measures as factual resuscitation variables to ensure performances towards development in competence. Northern Rock Bank and the Royal Bank of Scotland managements deviated from the stringent managerial approaches and realized the importance of targeting employees’ cohesion in achieving the corporations’ goals and objectives. Therefore, the two corporations’ operations in the European financial market would possibly reflect gradual increments in the presence of unified employees’ performances. Arguably, the corporations matched in their execution of democratic and participative management styles for the employees to depict the value of belongingness to the organizations. However, the two banks’ managerial approaches define that the clientele and stakeholders are important over the employees (Institute of Marketing and Sales Management, and Institute of Marketing, 2008:22). In the advent of ensuring delivery of value through the corporate social responsibility values, the corporations deliberately motivate the workers thus building proper relations and resting assured of enhanced clientele relations. Further, the top management integrated laissez faire management style to the prompt corrective action models established by the corporation’s risk management team to promote accountability and unified performance in delivery of programs. Through the establishment of advanced workforce support systems, the Royal Bank of Scotland management would be acting for the benefit of the whole organization. Currently, the two corporations’ employees whose population tally totals to 130,000 in each entity and the banks’ performances seem to show gradual increments (Mauldin and Tepper, 2011:87). Arguably, the employees in these organizations are delivering their services competitively since they have perceived belongingness to the organizations. Conclusions Management styles vary broadly according to corporations’ plans and objectives, and the type of clientele targeted. Therefore, the practices used in banks in managing the human resource fraternity reflect the edge at which the entities shall decipher positive business outcomes at the long run. The study evaluated Northern Rock Bank and Royal Bank of Scotland practices and realized that success towards growth in profit margins and market share would only emanate from proper management of the employees. Eventually, it is certain that the banks are experiencing beneficial outcomes and that the employees seem to work for the benefit of the organizations rather than undertaking tasks for remuneration purposes. Bibliography Duffie, D. 2011. How Big Banks Fail and What To Do About It. Princeton, Princeton University Press. Dweck, C. 2012. Mindset How You Can Fulfill Your Potential. New York, Constable and Robinson. Friedman, J. 2011. What Caused The Financial Crisis. 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