This report explores the structure and culture of Barclays Bank, a multinational bank in the UK. It discusses the organizational strategies and theories used by the bank to enhance performance.
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INTRODUCING THE MODERN WORKPLACE
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 STRUCTURE AND CULTURE OF AN ORGANIZATION.........................................................3 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Making any workplace whether office, banks etc. is the major need of today’s emerging markets. The company adapts various new methods of working which focuses on increasing the flexibility, collaboration and availability to achieve maximum productivity rather than obtaining the results. Barclays Bank, being a multinational company deals in investment banking and financial services has its headquarter in London. Along with banking, it also provides its businessservicesintofourcoressuchaspersonalbanking,corporatebanking,wealth management and management (Hollow and Vik, 2016). The report underneath will describe the structure of an organization particularly the Barclays Bank and its culture. It will also evaluate some factors which contributes positively or negatively to the performance of an organization. Various theories and models will be used to justify the above mentioned description. STRUCTURE AND CULTURE OF AN ORGANIZATION Banking system which was facing a rapid growth since many years is at a critical turning point due to economic crisis. So, organizational structure and culture plays a significant role in tackling all such problems. It examines each and every aspect of the same. Its evaluation also helps the organization to get the desired outcomes by implementing the organizational strategies effectively and developing the skills, knowledge and experience of the bank workers. The performance and practices of the banks decides the economy of the country so they must be monitored on a regular basis (Makonjio, Odera and Warentho, 2019). The structure and culture of the banks play a major role as they have a great impact on its performance. Barclays bank being a multinational bank in UK also has its specific structure which follows a particular culture. Barclay’s Structure Barclays is a transatlantic wholesale and consumer bank having a global reach which offers its products and services across corporate, personal and investment banking, managing wealth and credit cards, having its strong presence in UK’s home markets. The bank follows an enhanced structure which helps in empowering its business model. Its structure is different from 3
the other organizational structures. In march 2016, it has announced its plan to perform operations through two key divisions of business: Barclays International and Barclays UK. Along with this, it also plans to implement its strategies efficiently which enabled the Barclays to meet the requirements of the regulators of UK considering the ring-fencing. Till April 2018, the Barclays UK and the Barclays International became able to operate in the entities of Barclays Bank Plc legally. Both the entities deal in similar products but delivered to different segments. Barclays UK provided the everyday products and services to retailers, customers and SME’s located in UK while the Barclays International designed and delivered the products and services to the large corporates, wholesale clients of bank internationally (Kang, Matusik and Barclay, 2017). It later succeeded in separating the UK division of Barclays formally into a new entity and named it as Barclays Bank UK Plc which later became the ring-fenced bank of UK. Then, from that time Barclays laid emphasis on improving its progress by focusing on its strengths and provides its services globally. The products and services designed for large corporates and international banking continued to be delivered by Barclays International within the Barclays Bank Plc. During the separation of the entities in 2017, the company also created a Group Service Company named Barclays Service Limited, which was considered as the subsidiary of Barclays Plc. This group also provides services of infrastructure to the units of business which helps in the times of financial crisis by implementation of recovery and resolution plans (Latchanah and Singh, 2016). It also contributes to the company by supporting in fraud management and security related to cyber-crimes enhancing the growth of the business. The innovative organizational structure of Barclays helps in bringing all the complementary businesses together thereby enhancing the client proposition and target all the sectors efficiently. Therefore, the developing of the group service company in Barclays is considered as the service excellence’s centre which contributes by increasing its resilience. 4
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Figure1: Structure of Barclays Plc. Source:Structure and Leadership, 2020 Barclay’s Culture The culture of an organization impacts its performance and motivation of employees greatly. In this competitive market, all the businesses are under pressure to improve its performance to meet the expectations of the employees, investors and customers. The Barclays has its different culture which aims at improving its employees’ performance (Azrak, Saiti and Ali, 2016). It sets a Code of Conduct which describes all the roles and responsibilities. Following are the aspects which makes Barclays different from other banks and companies: Purpose, Values and Behaviours These factors help the bank to have a long-term success by setting standards under which all the employees work for which they are rewarded and the ones who go against it are highly monitored and accessed (Muturi, 2017). The purpose of Barclays is to help the people in the correct way to achieve their ambitions. The values focussed by the bank are Respect (giving importance to the one who contributes to the bank), Integrity (the bank act fairly and openly by following all the ethics), Service (putting the clients at the centre of everything), Excellence 5
(using full energy, resources and skills to give the best results) and Stewardship (being passionate in leaving things better than before). The Barclays also follows theBehavioural Approach of Managementwhich ensures that the environment of the workplace is impacting the employees’ behaviour positively. Therefore, the employees there act with integrity, due skill, care, diligence etc. by being open minded and co-operative. They treat the customers fairly and also observe market conduct with proper standards. This approach also tries to tackle the different behaviours of the employees by making it positive. This helps the bank to enhance its goodwill along with being familiarize with all the policies covering the framework. Citizenship Banking plays a critical role in social and economic progress and development. This is also referred to as Shared Value is which creates a link between the employees’ success and progress of society (Otieno, 2017). The bank uses this opportunity to develop through innovation and shared growth therefore enhancing its future. It aims at providing the customers and clients with all the conditions which helps in making their future better. It facilitates the employees and the customers both for today and tomorrow. This will help the bank to involve their colleagues in various voluntary works in communities, the resources are also used for the welfare of the society by managing the responsibilities and taking in account the impacts of all the decisions. Delivering Excellent Service to Clients Barclays always lay emphasis on providing the best to the customers by maintain a good relationship with them. This helps the bank to improve its reputation by providing innovative products which also helps to manage the financial affairs in a better way. This improves the performance of the bank because of the trust it made in so many years to make the loyal customers. It also helps in resolving the complaints if any and measure the satisfaction of the clients. Leadership Leaders in the Barclays have all the leadership qualities. The decision-making of its leaders helps the colleagues in anticipating, identifying and managing the risks and impacts of their decisions and also aware them of the impacts on the society and the environment. They 6
always focus on taking better and sustainable decisions. It checks the ways in which the bank makes a profit whether by providing value or by fair decisions. It also ensures that their transparent nature in communication is helping to deal with customers, clients and shareholders or not. Leaders in Barclays also focus in creating and increasing the value of the group along with measuring the benefits on the employees, clients, bank and the society. Governance and Controls The people at Barclays believe that following the high standards of ethical conduct is mandatory to build trust and confidence in the clients (Wilson, 2018). They do not ever compromise in the controls which govern their activities. The bank never involves in party politicsactivitiesandbecometransparentwhilediscussinganyissuesofbankwiththe government. It also builds good relations with the suppliers along with the society to have positive impacts to be identified and managed. They also respect their competitors which helps in free and fair competition thereby increasing its innovation and improvements in the provision of service. It helps them in focusing on their brand while creating their reputation in the society. Way of Speaking up and Raising Concerns The colleagues at Barclays are very transparent and open-minded. As soon as they feel something wrong in the policy or performance, they challenge the actions, behaviours and the decisions which they might find wrong (Wilton, 2016). They always listen to other colleagues also so that they can challenge them by doing better increasing the overall performance of the bank thereby enhancing its progress. The employees at Barclays always raise concerns at the time of any illegal activity by discussing it with the manager or contacting other teams. This helps the company to enhance its reputation because some activities of employees might put the goodwill at stake. In these situations, the individuals at the Barclays act with the highest standards of integrity and honesty. None of the person is discriminated because of raising a concern. Supporting the policies and guidance The Barclays Plc. has various policies and guidance which helps the bank to set the objectives, principals and other key requirements for all the firm’s activities. The policies need to 7
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be specific which can be accepted by major leaders otherwise gets dismissed. Supporting all the policies is not the best decision but all the decisions must be finalized after considering the majority by valuing their opinions. This will help to make the employees motivated thereby increasing their enthusiasm to perform the tasks. This will absolutely increase their performance. Colleagues At Barclays, the employees treat with full respect by appreciating them for each contribution they made and improving them at the weaker areas. They put the bank and customer’s interest above themselves by collaborating with each other to produce the best results. This helps them in demanding excellence in their tasks (Durepos, McKinlay and Taylor, 2017). It makes the environment motivated in which they trust each other. They all considers themselves responsible for all the success and failures which enhances the team spirit thereby increasing the productivity. Therefore, the above mentioned points of the Barclays play a major role in deciding its culture and its impacts on the bank’s performance. This can be explored more using following model and theories. Hofstede Model of Organizational Culture It states that the regional and national factors impact the culture of the organizations like banks and thereby influence the employees’ behaviour in the workplace. According to this model, the factors are majorly classified into 5 as follows influencing the culture of the workplace: Power Distance In some organizations, the power is distributed according to the position of the employees while in some according to their performance (Weber and Feltmate, 2016). Barclays follow the 2ndmethod and gives importance to all the employees regardless of their position. Although it gives more responsibilities to the superiors but give equal respect to all. The team leaders are chosen in such a way that they can extract the best out of all members and members must also respect them accordingly. Masculinity v/s Feminity 8
The Barclays does not discriminate males and females. They treat both equally. They give the responsibilities accordingly such as do not give work of late night sittings to females. Males and females have the equal rights in all the decision making processes. Individualism The Barclays does not show individualism instead it believes in team work (Connell, 2017). They believethatoutput comesmuch betterwhen the members exchange their opinions and views and take a correct decision after discussing. Uncertainty Avoidance Index The employees at Barclays Plc. knows how to tackle the difficult situations by being ready for the worst to happen. The bank also tries to resolve the situations and prepare employees for the same. Long Term Orientation TheemployeesatBarclaysareemotionallyconnectedwiththeworkand workplace. So they do not have short term objectives instead they have objectives of long terms (Ngugi, 2017). They are not concerned with the position and image but the achievement of goals working in a comfortable environment. Therefore, the culture makes the Barclays a better place for the employees to work in thereby improving the employees’ performance and enhancing the progress of the group. CONCLUSION The report concluded the organization Barclays Group plc. by examining its culture and structure. The factors which impact the performance of the employees are highlighted. The impact of organizational culture was also illustrated by the Hofstede Model. The report also evaluated the behaviour approach which was followed by the Barclays group in its culture policy. 9
REFERENCES Books and Journals Azrak, T., Saiti, B. and Ali, E.R.A.E., 2016. AN ANALYSIS OF REPUTATIONAL RISKS IN ISLAMICBANKSINMALAYSIAWITHAPROPOSEDCONCEPTUAL FRAMEWORK.Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC).21(3). Connell, M., 2017. The challenge of assessing and shaping bank conduct, ethics and culture: Insightsfromthesocialsciences.JournalofRiskManagementinFinancial Institutions.10(1). pp.89-98. Durepos, G., McKinlay, A. and Taylor, S., 2017. Narrating histories of women at work: Archives, stories, and the promise of feminism.Business History.59(8). pp.1261-1279. Hollow, M. and Vik, P., 2016. Another step up the ladder or another foot in the grave? Re- evaluating the role of formal and informal training in the career development process withinBarclaysBank,1945–1980.Management&OrganizationalHistory.11(4). pp.345-363. Kang, J.H., Matusik, J.G. and Barclay, L.A., 2017. Affective and normative motives to work overtimeinAsianorganizations:Fourculturalorientationsfromconfucian ethics.Journal of Business Ethics.140(1). pp.115-130. Latchanah, C. and Singh, S., 2016. An investigation of the challenges faced by women when progressing into leadership positions: a case of the IT division at Barclays Africa Technology (trading as ABSA).Journal of Management & Administration,2016(1), pp.36-71. Makonjio, F., Odera, P. and Warentho, T.O., 2019. Effect of e-learning programmes on staff performance in commercial banks in Kakamega county.International Academic Journal of Human Resource and Business Administration.3(7). pp.140-161. Muturi, R., 2017.Effects of motivation packages employee performance: a case study of Barclays bank of Kenya Queensway branch, Nairobi(Doctoral dissertation). Ngugi, J., 2017. Role of Working Conditions on Organization Citizenship Behaviour in the Banking Industry: A Survey of Barclays Bank in North Rift Region.IOSR Journal of Business and Management.19(06). pp.32-37. Otieno, V.O., 2017. THE THE EFFECT OF WORK REDESIGN STRATEGY ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NAKURU CENTRAL BUSINESS DISTRICT, KENYA.INTERNATIONAL JOURNAL OF BUSINESS AND PROCESSES (ISSN 2616-3209).1(1). pp.7-pagees. Weber, O. and Feltmate, B., 2016.Sustainable banking: Managing the social and environmental impact of financial institutions. University of Toronto Press. Wilson,F.M.,2018.Organizationalbehaviourandwork:acriticalintroduction.Oxford university press. Wilton, N., 2016.An introduction to human resource management. Sage. Online Structure and Leadership, 2020. [ONLINE]. Available through :<https://home.barclays/who- we-are/structure-and-leadership/> 10
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