Archives for the Month of February 2006 on Scrumtralescence
Personal Banking Experience
Over winter break during one of my visits to my local bank, I noticed the behavior of the employees working there, and it was not what I had anticipated it would be. All of the employees were talking to one another and joking around even while somewhat engaged with a customer. The manager walked around and smiled and interacted with customers while making jokes with his employees. The atmosphere was light-hearted and jovial, which seemed appropriate for the situation. It was mid-afternoon on a weekday at a small bank in my small hometown, so business was light. I enjoyed seeing this vision of a pleasant work environment in which employees are treated well and are on good terms with their boss. If I am in a position of some authority in my job in the future, I hope to be able to interact with my employees and peers in a similar manner, even if not quite as light-hearted as this exchange was. The atmosphere at work, or in any environment, can make or break the situation for many people, and working in an environment that alleviates stress, when appropriate, would definately be favorable.
Dealing with Change
Today's discussion on organizational change is extremely pertinent to the commercial banking sector. In recent years, there has been widespread change in the banking industry as a whole. Consolodation has been rampant as companies look to increase market share to stay competitive. Also, deregulation has enabled many banks to be able to offer services and products that in the past they had been unable to provide. Also, technology has played a huge role in the changes in the industry as automation and internet banking have become vital parts of banking today. All of these changes have surely affected the way managers currently deal with employees and customers, as well as altering these relationships during the times of change.
As mentioned in class, the restraining forces of habit, fear of the unknown, desire for security, loss of power and control, and organizational structure and culture slowed the progress of change. Involving employees in the process of change and ensuring their participation is necessary to facilitate the transition and smooth over as much resistance as possible. The need for a smooth transition during this time in the banking industry was crucial for the ongoing success of the company, as these trends were not temporary and ignorable. The widespread changes taking place needed widespread internal change to match the forces in the industry. Managing this change successfully is crucial for the survival of a company in the middle of industry-wide changes.
P.E.E.R.
Today's presentation by Shawn White regarding Managing as a Peer brought up a number of interesting points. Viewing managers as equals to subordinates has many of the benefits that Shawn pointed out in his presentation. Motivation, earning respect, increasing communication channels, and gaining superior knowledge are all positively affected by this leadership style. However, the potential for managers utilizing this strategy to lose power or control over their employees is a very real danger. The managers could be in a situation that they are walked on by their employees who no longer view them as a boss.
In relation to the commercial banking sector, this strategy could potentially have its place. In a smaller bank, like the ones I am familiar with at home, a manager who is able to prove to his employees that he is working with them for the good of the bank may be able to motivate and get more out of his workers than one who purely views his employees as subordinates, and consequently, treats them so. A working environment that is lower in stress and number of customers dealt with on a daily basis would be more conducive to a more informal employee-manager relationship such as that outlined by the P.E.E.R. approach. A larger, more stressful work environment in which a more hierarchical structure with an authoritarian boss is more appropriate may not be as suitable for the P.E.E.R. approach.
Commercial Bank Management at CELP
The first interesting program I found in relation to management in commercial banking is the Commercial Bank Management Program offered under the China Executive Leadership Program (CELP) at the University of Illinois at Urbana-Champaign (UIUC). The CELP on the whole is a program utilized by senior managers from China as an educational program. The program has been in place since 1993 and includes lectures, seminars, and on-site visits.
The Commercial Bank Management Program, in particular, is meant to introduce Chinese bank managers to U.S. and international commercial banking practices and concepts through visits to such companies as Boeing, Bank of America, Citibank, and Morgan Stanley.
The interesting aspect of this program is that it exists here in the U.S. for Chinese managers. Clearly, there is a need for commercial bank-specific instruction, and the industry appears further divided as the program is meant for U.S. and international-specific instruction. It is not only commercial bank management, but helps the Chinese managers participating in the program learn about the commercial banking scene on the international level. This international scope indicates the need for a broad perspective on management in the business world and in our studies.
First Blog for Management 251
I have had trouble getting back into the blogging habit, as it is not something that comes naturally to me. I have never had a journal or blog that was not required by my class, but I decided to take up this option not only for a new experience but something to potentially utilize as a learning device, as well.
My topic for this semester's blog project is management strategies in commercial banking. This topic is potentially meaningful to me, and the readers, due to the broader issues that it points out. For instance, the notion that each industry and market has the need for specific management strategies, or marketing or operations for that matter, was something that had not occurred to me and had not been brought up in previous classes. While it was obviously naive of me to think that there was not a particular need for industry-specific strategies, this blog provides me an opportunity to investigate such strategies. This is also worthwhile because of the fact that banking and finance is my concentration within the business management major.
Over the course of the semester I hope to develop a sound understanding of the management strategies relevant to commercial banking. Also, I am supposed to increase readership over the course of the semester, but how that will happen I have yet to determine. Hopefully something will come to mind.