JPMorgan Organizational Planning - Essay Example

JPMorgan Organizational Planning JPMorgan Organizational Direction JPMorgan is a global financial services and banking company based in the U.S. The company serves as the biggest American bank, having total assets amounting to $2.6 trillion. It serves as a key financial services provider. The hedge fund bank for the company serves as the biggest in the U.S. JP Morgan historically used to offer services, such as investment banking, private banking, asset management, management of private wealth, and securities and treasury services. The headquarters of JPMorgan are situated in New York City, U.S.A. whereas commercial and retail bank is headquartered in Chicago, Illinois. JPMorgan is among the largest of the four large banks in the U.S., with Citigroup, Bank of America, and Wells Fargo. As the biggest bank in America and the world, it is true that JPMorgan embarks on revolutionary organizational strategies remain competitive (Money Market Directories, 2010). Strategic Planning Strategic planning has many forms, shapes, and sizes. It facilitates in differentiating each business as well as the functions and goals they are hoping to achieve. One of the key strategies that JP Morgan embarks on is merging with reputable firms to boost its key operations. For instance, long term planning is of vital importance for every organization that wants to continue expanding its global operations. For JPMorgan, it has always set a mission that would drive it to emerge as the biggest bank globally. The strategies that the company embarks on as allowed it to emerge as one of the worldwide leaders in banking and financial services. For instance, by the year 2014, JPMorgan overall assets were approximately $2.515 trillion as well as $227.1 billion in terms of stockholders equity. To boost its expansion and growth potential further, JPMorgan invests in some of the fastest growing economies globally. For instance, the firm has established its operations in approximately 85 countries globally, allowing it to outdo its rival banking and financial institutions (Mayer & Levy, 2012). Tactical Planning Maximization of fund returns using tactical models of operation have played a major role in boosting the operations of JPMorgan further. The major asset classes that JPMorgan focuses on comprise of Emerging Market Equity, Foreign Equity, Fixed Income, and U.S. Equity. The company covers all these in its savings plan. In terms of risk allocation, JPMorgan ensures that the portfolio for high risk profile is 40, whereas the overall allocation of a single unit of fixed income asset is set to about 40%. The assets weights the company selects are weight equally. Furthermore, the process of selecting funds targets two of the best performing funds from the 22 available in the plan selected to every asset selected. These are then equally weighed with the major assets. The frequency of rebalance is also a key area of emphasis, particularly because it is reviewed using the monthly program, although these strategy programs are repeated. In case it is deemed necessary, the weights of the assets are rebalanced to ensure that lie in their target allocation. For instance, in the event of a market downturn, the exposure of the assets to risk are either reduced or shifted to fixed income to avoid making losses (Devlin, 2013). Operational Planning To operate without any forms of interruptions from the external market environment, JPMorgan embarks on maintaining stability of prices. With stable prices, it is possible for investors, businesses, and consumers to develop confidence of the market trends. The company also aims at strengthening and stabilizing the financial system to ensure that the payment system operates efficiently. Furthermore, JPMorgan participates in initiatives that facilitate in effective execution of OMO (open market operations) and ensure that exchange operations are efficient. It is also the goal of JPMorgan to ensure that the supervision and regulation of payment and financial systems is effective, through increasing accountability, transparency, institutional productivity, as well as development of human resources. Additionally, the firm optimizes the information that systems generate to allow it boost potential and realize results, optimize management of financial activities, and align departmental functions effectively, while minimizing risks (Mayer & Levy, 2012). Contingency Planning To ensure that the company plans and sustains its supply chain, JPMorgan embarks relies of various tips to cope with challenging economic situations. These include risk assessment, effective communication, availing options, testing processes, documenting evidence, focus on current events, demand assessment, cross training, time saving, preparedness, and backing up data. Furthermore, the company sets in place policies for sustaining the purchasing power of the domestic market. It also contributes to the social and economic development by relying on proposals, research, and other activities that deepen its model for the economy. In addition, it focuses on devising mechanisms for managing national and global banking operations efficiently. Furthermore, in order for the company to coordinate its activities and facilities effectively, it implements and develops mechanisms that facilitate internal and external communication, while improving the administrative management framework through timeliness, quality, and efficiency. Moreover, JPMorgan strengthens its coordination and prevention mechanisms to facilitate transparency and eliminate incidences of corruption (Money Market Directories, 2010). Influence of Legal, Ethical, and Corporate Social Responsibility (CSR) on Management Planning For any organization to succeed in the business environment, it should focus on various ways in which the legal, ethical, and CSR initiatives influence its operations. For the legal environment, JPMorgan undertake its operations while observing the laws governing banking and financial services. Furthermore, when operating in international markets, it adjusts its mode of operation to cope with the set laws in the land and avoid conflicting with the government and society. In ethical terms, JPMorgan embarks on practices that do not cause harm to the environment or the individuals that it relates with. It treats its customers, shareholders, employees, and the community with respect and ensures that they realize maximum benefits when dealing with the firm. Furthermore, in terms of CSR, JPMorgan remains committed to address the various issues affecting the society. It offers aid to disaster stricken areas, support educational initiatives, and improve infrastructure of the community among other social issues. The emphasis that the company lays towards these issues have played a vital role in allowing JPMorgan to streamline its management initiatives, further allowing it to compete and operate efficiently in the banking and financial market (Devlin, 2013). Planning Function of Management Influence on Organization Goals and Strategies Situational Analysis For JPMorgan to realize its future goals and objectives, it lays notable emphasis on the current trends taking place in the financial and banking sector. For instance, with the rapid advancements being witnessed in technology, it is offering additional avenues for the company to invest in and boost its operating base. Furthermore, as the company opens up operations in diverse parts of the world, it witnesses the diverse needs of the society and introduces services to cope with their demands. The company does this by evaluating the financial situation of these sectors to address their needs effectively. Alternative Goals and Plans To keep operations going, it is ideal for a company to focus on alternative goals and plans once it attains its initial ones. For instance, the goal and plans for JPMorgan in the recent years have been focused on emerging as the biggest bank in America and the world. Since it has realized this initiative, it should make plans to realize other goals, such as to serve as the best bank in terms of quality, efficiency, cost friendliness, and variety of banking and financial services in the world (Mayer & Levy, 2012). Goal and Plan Selection Selecting goals and plans is a complicated practice, especially for a large institution, such as JPMorgan. To select effective goals and plans, it should lay down the various goals and plans it deems vital to the organization. After making consultations with financial and banking experts, it should select the most appropriate ones for consideration (Mayer & Levy, 2012). Implementation Implementation of plans is a complicated process. For JPMorgan, the company should discuss the plans made with the stakeholders of the company and welcome opinions from different participants. In this case, they would select the plans that have majority support for implementation. These plans should, be valid and effective to the firm (Money Market Directories, 2010). Monitor and Control Performance After plans have been made, the next thing to consider is monitoring and controlling of performance. In this case, it is the role of the company to hire qualified personnel or choose from its employee base. These individuals would be responsible for reporting any inconsistencies so that efficient control measures can be implemented to ensure continued growth of JPMorgan. References Devlin, E. S. (2013). Crisis Management Planning and Execution. New York: CRC Press. Mayer, R. H., & Levy, D. R. (2012). Financial Planning for High Net Worth Individuals. Boston: Beard Books. Money Market Directories. (2010). Directory of Pension Funds and Their Investment Managers. New York: Money Market Directories. Read More