The Organizational Behavior of First Tennessee Bank - Research Paper Example

Organizational Behavior First Tennessee Bank (First Horizon National Corp) - Organizational Behavior Introduction The paper exploresorganizational behavior at First Tennessee Bank (FTB), which is under the First Horizon National Cooperation (FHNC). FHNC is a financial organization that is located in Tennessee in the US. The products and services offered by the organization include financial planning, asset, management, trustee services, investment by stakeholders, insurance and credit services such as loans among others. FTB has been in business for at least a hundred and fifty years (First Tennessee, 2015). Therefore, it is a well-established community based financial service provider. Organizational behavior is an integral aspect of various successful businesses. For a more precise understanding of the organizational behavior at FTB, it is important to identify certain norms and characteristics that determine the aspects of the regional bank. Some of these characteristics of organizational behavior include, firstly, attitudes and values of employees for example company culture, social responsibility and others. Secondly, motivation and performance, which encompass factors like, job security, bonuses, raises, and employee mentoring programs. Thirdly, managerial challenges for example global competition. The three factors play a significant role in shaping FTB’s organizational culture (Marquis& Huang, 2010). Attitudes, Values, & Ethics Employee work rate is governable by their perception or attitude towards the job they do. Such attitudes are achievable through values and ethics that dictate the manner in which organizational operations remain executed. Upholding workplace values and ethical practices ensures that there is no friction between the leadership of organizations and the junior employees. At FTB, the following are prevalent: Differentiated Customer Service/Experience Differentiated customer service considers the customer’s identities, in that, services are offered to customers automatically via a software system. An example is telematics, which is a component of information technology that deals with the transfer of digitized organizational information over long distances. FTB entered into a partnership with Ensenta Corporation, a software development organization. FTB is devoted to improving convenience for its customers and at the same time enhancing efficiency within the bank’s workforce. Therefore, Ensenta assists in achieving this goal by refining the remote deposit capture (RDC) service offered to customers. RDC is an information technology system that allows bank clients to scan checks from their diverse locations and send the images to FTB remotely through the internet. The remote deposit service improves the quality and efficiency of the services extended to clients. Employees are able to work effectively because the long procedures involved in processing checks have remained computerised and subsequently simplified. Consequently, the attitude of the workers is improved and as reflected on organizational behavior (Shores, 2015). Company Culture FTB’s organizational culture remains based on building appropriate relationships with both the employees and outsiders. The culture compels employees to devote themselves to their work for their own benefit and for the good of the whole organization and its stakeholders. As a result, teamwork, innovation and adequate customer service remains enhanced. Employee activities have the basis on specific values and principles, which include: Ensuring that the interests of the employees come first because the workforce is the bank’s competitive advantage Adequate teamwork as employees work on the basis of trust and interdependence There is need for proper knowledge and understanding of customer needs. The bank ensures that it adheres to client expectations and subsequently establishing loyalty among the customers (First Tennessee, 2015). Community Involvement FTB takes part in community development through the provision of grants and volunteer services. The organization has invested into the community by employing over4300 Tennessee residents making an extensive impact on the regional economy. The company established a private charitable organization in 1993 to sustain nonprofit institutions within the community. Nonprofit institutions receive support through general foundation grants. The Grant applications are acceptable on an annual basis. The organization has donated over 27 million US dollars to cater for community needs over a span of 5 years coupled with an employee volunteer program that serves the interests of the society (First Tennessee, 2015). Work-Life Balance for Employees FTB creates a balance between the private lives of employees through paid time offs, maternity leaves and vacation servicers among other incentives. An employee assistance program engaging in counselling services and paid vacations and holidays are some of the factors that link the professional and the private lives of the workers. Catering for the recreation activities for both the employees and their families enhances positive relations between the workers and the bank. Consequently, the workforce reciprocates by adhering to the organization’s values and upholds appropriate organization behavior. Motivation and Performance Benefits The employees and their families also receive universal benefits for example a life insurance cover initiated by the organization, The bank commits itself to rewarding employees for the work they do using various compensation packages. The compensation package caters for various aspects of the employees’ lives including health, finances, family and their career. The Wellness Program in the bank ensures that employees work in a healthy environment and adopt healthy lifestyles. Health benefits include dental and vision insurance covers for the employees and their families and they ensure that employees are continuously motivated as they work for the bank. The 401 (K) saving plan is also applicable in the organization and serve as a security plan for the employee retirement days. The savings plan compels the employees to allocate part of their salary into an account that is tax-deferred. Subsequently, the employees develop a culture of saving thus safeguarding their future (First Tennessee, 2015). Quarterly Evaluations and Presidents Awards At FTB, the presidential award marks the recognition of employee exceptional performance. Therefore, when an employee works hard, for example by exceeding the normal level of sales, he or she gets special recognition from the corporation’s president. Consequently, employees tend to work harder and abide by the organization’s rules and regulations to ensure that the top management recognizes their efforts. The evaluation of employee performance and the company status takes place on quarterly basis ensuring the maintenance of quality workforce productivity. Job Security Workers work comfortably with the assurance that there will be no baseless termination of their employment contracts. At FTB, employment is stable and the firing of employees is attainable on legal avenues. Therefore, there is assurance that the workers will remain employed according to their employment agreements. Retirement benefits add to the job security factor by securing the financial status of the workers after employment. Positive organizational behavior is prevalent among the employees because of the assurance that their employment is stable and legally binding to both the employer and the worker. Bonuses and Raises The ultimate reward for working is the monetary accruements. Extending bonuses to employees as an additional is independent of their basic salaries. The provision of bonuses at FTB relies on the returns on capital and the performance of employees that makes them eligible for the payments. FTB also focuses on raising the salaries of their employees. However, for a pay rise, an employee should prove worthy by displaying a considerable level of competency. As a result, pay rise influences workers to maintain an appropriate organizational behavior that will in turn coerce the leaders’ to increase their salaries and wages (First Tennessee, 2015). Employee Mentoring Program and Promotions Mentoring employees is an integral activity at FTB. The organization has a Career Learning Center where employees can improve their professional capabilities. The high demand for technological literacy necessitates the extension of computer-based teaching within the bank. These education services mentor the employees and assist them to adopt a better professional approach in the process of executing their duties. The bank also provides workers with a chance to learn from the experiences of other personnel that are within the same career and have the same interests. Challenges for Management Global Competition Competition is a notable characteristic of the banking and finance services industry. The banking industry is composed of many banks that offer similar products. Banks that are able to display an effective competitive advantage in the global markets counter the competition and remain operational. FTB bases its competitive advantage on its workers. The bank invests substantially in its workforce through training and other benefits that motivate them to work efficiently. Diversity Racial differences results into different attitudes among employees towards each other. Despising some employees may depend upon on their skin color and this has a negative effect on their work. Gender-based discrimination at workplaces is common with women as the victims. Age is also a factor that is subject to discrimination; people may have the perception that old employees that are eligible for retirement are incompetent. However, FTB has been trying to counter the vices that are accruable to discrimination. For instance, the bank adopted a non-discrimination policy to eliminate gender bias and other forms of segregation. Equal treatment of employees without considering their diverse affiliation builds their confidence in the job (Dedu & Nitescu, 2014). Employee/Manager Relationships Employees report directly to their seniors who in turn evaluate their performance. Therefore, effective communication channels are imperative for the establishment of the connection between employees and the managers that oversee their work. Lack of efficient and reliable communication within an organization compromises employee-manager relationship. At FTB, the management and the leadership body tries to bridge the gap between workers and the senior management by providing appropriate platforms for the evaluation of employees. Subsequently, the managerial body of the bank determines the quality of the workforce and recognizes the outstanding employees by rewarding them accordingly. Compliance and Bank Policies The banking or the finance industry operates under set policies that govern the relationship between the bank and the state. Some policies also guide the internal relations within the bank. It is imperative for employees to comply with the values, objectives and the expectations of the bank. Failure to conform to internal policies would compromise the relationship between workers and the leadership of the bank. An example of an internal policy that safeguards the interests of the bank is the copyright policy. The policy safeguards the bank from infringement of their product and service provision or unauthorized use of personnel signatures to transact businesses on behalf of the bank. FTB has to comply with state laws. The bank was forced pay the US a sum of money amounting to 212.5 million dollars for violating the false claims Act (Department of Justice, 2015). Employee Retention Employees stay with the organization if they believe that they have a vital role to play while working on the achievement of the set goals and objectives. Lucrative benefits also compel employees to extend their stay with the bank. Therefore, the bank has to cope with the challenge of ensuring that the interests of the all the employees are addressed appropriately. It is difficult to cater for the needs of all the employees. However, it is an effective way of ensuring that workers remains retained. Additionally, employees can remain influenced to stay in the organization through inclusion, that is, indiscriminate involvement of workers in the activities of the bank. Conclusion Organizational behavior is dependent on the interplay of various factors within an organization. The nature of the treatment of employees influences their conduct. Organizational values and employee attitudes are vital for the determination of the method of operation within FTB. Conforming to acceptable values and adopting positive attitudes towards work improves organizational behavior. To influence the values and employee attitude, the organization has to consider the company culture and the balance between the professional and social lives of the workers. Employee motivation is essential for the inspiration of employees to discharge effectively their duties. Motivation of employees considers various aspects, for example, the extension of benefits and assurance of job security (Warren, Gaspar & Laufer, 2014). Companies face a variety of challenges in setting up an appropriate organizational behavior while catering for employee needs at the same time. Global competition poses a significant challenge in the banking industry. It is up to the banks to establish a competitive advantage that would help them counter the rivalry in the industry. FTB bases its competitive advantage on its employees. The bank has coped with the challenge of abiding by the state laws that govern its operations and at the same time enact its own independent policies. The bank has been operational over many years because of its ability to maintain appropriate organizational behavior (Ajmal & Lodhi, 2015). References Ajmal, M., & Lodhi, S. A. (2015). Exploring Organizational Consciousness: A Critical Approach towards Organizational Behavior. Pakistan Journal Of Commerce & Social Sciences, 9(1), 202-217. Dedu, V., & Nitescu, D. C. (2014). Banking relationship management - A new paradigm?. Theoretical & Applied Economics, 21(4), 7-22. Department of Justice. (June 1, 2015). First Tennessee Bank N.A. Agrees to Pay $212.5 Million to Resolve False Claims Act Liability Arising from FHA-Insured Mortgage Lending. Justice. Web. June 17, 2015. Accessed from http://www.justice.gov/opa/pr/first-tennessee-bank-na-agrees-pay-2125-million-resolve-false-claims-act-liability-arising First Tennessee. (2015). Our Community Investnment. Web. June 17, 2015. Accessed from https://www.firsttennessee.com/global/About-Us/Communities/ Marquis, C., & Huang, Z. (2010). Acquisitions as Exaptation: The Legacy of Founding Institutions in the U.S. Commercial Banking Industry. Academy Of Management Journal, 53(6), 1441-1473. doi:10.5465/AMJ.2010.57318393 Shores, Redwood. (February 12, 2015). Ensenta Helps First Tennessee Bank Expand Mobile RDC Versatility. ENSENTA. Web. June 17, 2015. Accessed from http://www.ensenta.com/news/2015/02/12/ensenta-helps-first-tennessee-bank-expand-mobile-rdc-versatility Warren, D. E., Gaspar, J. P., & Laufer, W. S. (2014). Is Formal Ethics Training Merely Cosmetic? A Study of Ethics Training and Ethical Organizational Culture. Business Ethics Quarterly, 24(1), 85-117. doi:10.5840/beq2014233 Read More