Discuss about the Bank Leadership for Technology and Customer Behaviour.
The banking industry is under turbulent changes concerning the expectations and demands of its customers. For instance, technology, customer behaviour, and competition are all evolving simultaneously. This poses a challenge to the management, which has to put in measures to evade the setbacks. The management lacks confidence in the senior leadership. This is because they are deemed unable to implement their plans effectively. Hence, to solve the problems, the leaders must brace themselves up and become reliable by being trustworthy, nurture good relationships, and work towards better results (Kellerman, 2016). Also, they must develop skills to handle the changes that take place in the banking sector. They should constantly review and monitor their programs and products, their market positioning, and new technologies to place the banks in a better position. Moreover, the Bank leadership must focus on communication and networking to comprehend their customer’s perceptions and develop the industry. Finally, risks are a common occurrence in banks (Ferna?ndez de Guevara Radoselovics, & Pastor Monsa?lvez, 2013). Hence, the leaders must implement the risk management strategies to be ready for the unforeseen crisis. Bank leaders must portray good leadership by applying the aspirational leadership style, and be autocratic to handle bank dynamics, which will lead to their success.
This report aims at addressing the increased leadership crisis in many financial institutions in the world, which have led to the rots and crisis witnessed today. Good leaders are required to utilise funds optimally and create management information systems that enable better decision making and management of liabilities and assets (Dept, 2016). The theoretical conclusions indicate that leaders should be conversant with the risks found in the currency market and closely monitor their credit risk. Therefore, they are required to handle the issues of cosmetic management, technical mismanagement, fraud, and desperate mismanagement, which are a threat to a bank’s health. This can be achieved through proper organisation, teamwork, suitable style of leadership, and power. Also, poor planning, lending, and the absence of internal controls in banks, motivated the analysis of the leadership styles and types of the bank leaders (Sarabdeen, El-Rakhawy, & Khan, 2011). Bank leadership must comply with the set corporate governance rules to ensure their shareholders attain good returns and the economy grows.
The Bank Work Environment
The bank is significant in the driving of the economy. It is made up of effective risk managers who emanate from the skilled and efficient workforce. The leaders manage risks and employees to ensure they achieve victory in banking (Press, 2012). They work by pooling new technologies, differentiating their products, managing the human resources and treasury to ensure the bank attains global excellence. The leadership style employed is directly related to the bank’s financial performance. As such, the leaders aim at the best style and type of leadership (Grant, Golawala, & McKechnie, 2014). The work environment is good with a diverse staff, many learning opportunities, and motivating projects. The leaders aim at helping the workers to attain their full potential by creating a culture that upholds excellence. Consequently, they can sustain and maintain the finest talents which in turn make the bank strong. The leaders make efforts to respect their employees through their style, thoughts, culture, experience, and diversity (Bass, Stogdill, & Stogdill, 2015). The only problem is the lack of work/life balance, which makes life boring while working there.
How the Manager Shows his Leadership in the Workplace
The manager shows his leadership at work by being empathetic towards his employees. As such, he gets to connect and understand the feelings of their workers. They do this by listening to their issues without interrupting. This enables them to make wise decisions that favour their employees. Also, when having a talk with their employees, he gets fully involved by avoiding to check his email, putting his phone away, and refraining from picking calls. Additionally, he smiles at people generously because he knows smiles are contagious and can make the employees work better (Santos, & Shukurov, 2015). Moreover, the manager shows empathy by calling the employees by name, giving them genuine recognition, and holding deeper conversations with them. Leadership is portrayed by the manager because he is always passionate about his ideas and work. He makes the work environment enjoyable by holding stimulating meetings, passionate communication, and making his enthusiasm to shine. Also, he incorporates passion at work by adding meaning to the work employees partake. This is evident when he creates a culture of innovation, excellent services, and creativity. Hence, the employees end up trusting that their work is valuable (Allegretti, 2012). As such, their paychecks become meaningless, and they end up focusing on working.
Furthermore, the manager shows his leadership in the workplace by portraying humbleness. He does this by giving credit to those who deserve, calling for help from colleagues, and believing that for the bank to be successful, all employees must be involved. Also, he is humble because he tries his best to connect with employees from all levels of the organisation (Sostrin, 2015). He is available for every individual and spends the time to talk openly and personally about reforms. Similarly, the manager depicts his leadership by making decisions through proper judgement. Before concluding on an issue, he collects all facts, analyses them, examines trends, and finally makes the decision. The manager walks his talk indicating that he is a good leader. Therefore, when he calls for change, he becomes the pioneer in implementing the same (Brady, & Spence, 2015). Finally, the manager illustrates his leadership by creating chances to collaborate with other organisations and groups to ensure the bank’s success.
The Leadership Style used by the Manager
A leadership style is the constant conduct of a leader as professed by those around him. The way one handles their followers and subordinates in several situations make them cultivate a pattern of leading. The style of leadership is a consequence of the personality, philosophy, and a leader’s experience. Moreover, it is depended on the type of employees and the organisational conditions. The manager employs the aspiration-style of leadership. This is because he is power-driven, and sets rules that others must follow (Glanz, 2015). Also, the overall structure is hierarchical. Most people think that this style of leadership is self-serving and arrogant, but in a real sense, that is how banks should be managed to evade financial collapse. The purpose of this style of leadership is to enable the bank to be future oriented. Among the rules set are those that guide the organisation in prioritising its corporate aims. Through the aspiration style of leadership, the bank gets motivation and energy to surge forward. The unity of command due to the manager’s aspiration style of leadership reduces the occurrence of a scattered staff (Jagersma, 2012). Due to this leadership style, the manager aims at being the banking industry’s pacesetter. As such, he demands that the employees work extremely hard to stay ahead. He talks of profit-making but indicates that in all that the bank must increase its market share, influence, and extent of operation (Crossman, 2015). The manager’s wealth creation motive entails an analysis of prospective products, geographies, and services. He does this with vigour for as long as the profit making motive is fulfilled. As such, most of the employees view him as self-serving (Terterov, & Shoult, 2015). He takes advantage of the laws and rules to create profits.
The Manager as an Autocratic Leader
The manager is an autocratic leader because he has a lot of control in many decision-making needs, with a little assistance from employees. This is motivated by the aspiration-style of leadership employed at the bank. The manager does dictate all the processes and methods of work. As such, the employees are not easily charged with the important tasks and decisions (Tabash, & Anagreh, 2017). Through the outlined rules and laws, the work to be conducted is always rigid and structured. Hence, creativity is not encouraged at the bank. Employing autocratic leadership is beneficial to the manager because it has led to fast decision-making as other employees are not to be consulted. It is fun in the workplace as people comply, and never resist whatever the manager tells them. This is due to his legitimate power and authority (DuBrin, 2014). The employees adhere to what the manager tells them because of respect to his positional power in the bank, and not due to personal influence.
More often, the workforce heeds to the manager’s autocracy when there is a crisis at the bank. Fear makes them focus and depend on the manager who is supposed to rekindle their hope. In such moments, no one dares to question the manager’s authority. Also, this autocratic leadership is best when there are cases of uncertainties at the bank. When the subordinates lack certain information, the manager gives direction without expecting any challenge from the employees. Additionally, the authoritarian employees like it when the manager exerts authority on them. They have a yearning for strong leaders who might even command them. They appreciate this because it comes from above (Kennedy, 2013). Despite being an autocratic leader, the manager shows respect to the employees by acknowledging some of their contributions in the rules he sets. Subsequently, teamwork is enhanced due to mutual respect. He also explains the rules and laws to enable the workforce to comprehend why they are following a certain procedure. Through his consistency in the enforcement of similar issues, he is highly trusted by the employees who know that their leader is conversant with his undertakings. He is good at listening and appreciating the opinions of the subordinates as their leader (Erogul, 2013). However, he cannot change his mind on what he will have set out to do.
Cases Indicating that the Manager is an Autocratic Leader
The manager is an autocratic leader because, on some occasion, he fired a secretary instantly when he found her using the bank’s telephone to make a private call (Tranbarger, 2013). This is despite having worked at the bank diligently for five years. Also, the manager showed his autocracy by firing forty percent of the workers indiscriminately (Sadler, 2013). He wanted to raise the bank’s share prices, but this led to the loss of many lucrative talents. Consequently, the value of the bank was eroded leading to a decline in its performance. The manager is autocratic because he insists on apportioning each employee their share of responsibilities with precise and clear rules. This is in a bid to ensure that those with low motivation work equally like their colleagues. As such, they do not pass their assigned duties to others. Moreover, the manager portrays autocracy because, on group projects, he assigns tasks and makes decisions for the team members. Hence, the groups are never allowed to conduct decision-making for the manager believes the step would delay progress. Also, the group members might fear to partake of the project because things might turn out wrong, and they hate being held responsible (P. Manivannan, 2016). Therefore, the manager takes up the opportunity and implements autocracy. Similarly, an instance of autocracy by the manager is when the students on internship are given responsibility. Since they are unfamiliar with the roles delegated, the manager takes up autocracy and conducts the duty by himself to save on time.
Beneficial Stories in the Bank about Leadership
On a particular day, some newly employed graduates were given a task to make bank reconciliations of various customers. They were under the supervision of a leader. However, they were not efficient in conducting the task, but their leader urged them to accomplish the same without putting in any effort to assist them. He could be seen shouting, giving them orders, and threats if they continued giving him poor work. He insisted that they submit the task within the stipulated time. Most of the trainees could not accomplish this leading to their termination from the program. They reported the case to the manager who instantly came and asked their leader why he was not helping them accomplish the task. He refused and said he was in charge and wanted the trainees to do as he said. Moreover, he told the manager to assist them if he wished. The manager abandoned his work and helped the graduates to do the task, which they did perfectly. Upon finishing, he congratulated them, but he told their leader that if he would fail next time to assist them, his position will be taken up by somebody else. He got humbled, and from then onwards he realised the significance of leading by example. Therefore, effective leaders must be caring and avoid giving orders, especially when a task is difficult.
Also, there was a customer who came to the bank insisting on seeing the manager. However, on that day, it was the manager who had taken up the position of the receptionist. The receptionist asked the man to say the issue that was ailing him, and that he would help solve it. He refused and went to sit in the waiting lounge saying that significant matters could only be discussed with the manager. This is despite the manager telling him that he only wanted a hint of the issue. Other customers came got served and went, but this man could not trust the credibility of the services offered by a receptionist. Therefore, the manager left the reception and went to his office signalling one person to tell the man to go and see him. On reaching there, he was shocked and could not believe the man was a manager. Upon asking him why he did that, he said his receptionist was sick, and everyone else was held up except him. Therefore, he took up the post and worked. This indicates that the manager is humble and does not use his position to serve his interests. He had to put aside his status, power, and money to ensure the smooth flow of the organisation. As such, a manager should teach by actions and not words, that is, they should practice serving and not commanding.
Evaluation and Discussion
This evaluation is significant in finding out the leadership process in banks. The method of research employed is the interview, whereby both the employees and manager of the bank were interviewed. This was appropriate because these stakeholders are the one’s involved in the daily activities of the bank. Both the qualitative and quantitative data to analyse the impact of leadership on the bank’s performance were obtained. Interview questionnaires were also administered apart from the direct interview. The respondents were asked questions to which then they responded. The information obtained was the general work environment, how the manager shows his leadership and the style and type of leadership. Also, it was noted that the bank’s performance improved qualitatively as the work environment became more organized, and people worked with less supervision. It became the safest bank in United Arab Emirates and maintained happy customers. Quantitatively, the bank became the industry leader due to the appropriate leadership style and type. For instance, the returns increased, and the number of unrecovered loans reduced. Moreover, the instances of the leadership type were also obtained together with stories that occurred, which are significant for leadership. The selection of the participants, employees, to be interviewed was made on a random basis. Twenty employees took part in the interview together with their manager. The only limitation during the interview was that some employees feared to disclose some of the issues at the workplace.
Finding, Suggestion and Conclusion, Recommendation and Future Work
From the research, it is evident that the bank environment needs close supervision to evade the turbulent forces working against it. The bank is a good place to work because the employees are given opportunities to learn and grow. As a leader, the manager is empathetic, passionate, humble, a good decision maker, and doing what he says. The manager employs the aspiration-style of leadership, due to his power driven nature, and setting of rules that must be followed. He is an autocratic leader because he is in control of all decision making and calls for little assistance from the employees. For instance, he could fire people without involving the board, allocates each person a role and does not like group work. From some of the stories in the bank, it is evident that leaders should lead by example, and be humble. The research was conducted through an interview with the manager and the employees. The management layout of the manager is acceptable because the bank faces many issues, which if not well handled, can lead to its failure. Therefore, the aspiration style of leadership and autocracy employed are suitable. As such, the bank managers must be strict in handling their business to assure their customers that their funds are secure. In future, more research should be conducted on the consequences of poor leadership in banks. One recommendation concerning bank leadership is that the leaders should lead their employees according to the style that suits the plans and goals of their organization. Also, leaders should lead by example by teaching their subordinates on how to conduct a certain duty and not just commanding them. Another recommendation is that leaders must listen to the requests of their employees, but the final decision should be geared towards the wellness of the organization. Finally, leaders should inspire their employees to ensure the organizational goals are attained.
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