Strategic Management (MGT603)

Running head: SYSTEMS THINKING
SYSTEMS THINKING
Name of the Student
Name of the Organization
Author Note

SYSTEMS THINKING1
Part A
Currently working in XYZ bank in the home country, it has been seen that the bank has
been struggling with significant loss of customers to the competitors. There is an immediate need
for overcoming the problem. System thinking is referred to as an approach for solving several
kinds of problems associated with the organization by clearly viewing the problems as different
parts of the system in overall (Arnold & Wade, 2015). The bank has thought of introducing an
incentive system for all the employees so that the bank will be able to bring in new customers.
Having this objective in mind, this incentive plan represents a step which is very much
significant and towards the right direction. It is considered to be an effective way of performance
motivation (Beuren, Ferreira & Miguel, 2013). All the workers after receiving incentives will be
able to operate more as partners of business and will be also responsible for tying reward
personally to the financial success of the bank. Monetary incentives are considered to be very
much motivating and is responsible for rewarding the performance as well as the productivity of
the employees through money. These incentives comprises of the all the sharing plans for profit,
paid time off, life insurance or bonuses. Therefore an incentive program is considered to be as a
formal scheme which is used for promoting or rather encouraging specific behavior by a specific
group of people during a period of time which is defined and is responsible for increasing the
efficiency and the productivity of the bank. It is to be recognized that any changes made to the
payment arrangements will be not effective if they are not seen to be coupled with the changes
which are accompanied to the wider system of organization. Another way can be calling out the
central role of leadership. A leadership which is effective is considered to be as a key where the
culture is driven by the leaders. With the help of financial incentives employees are very much
motivated. The management of performance, remuneration and frameworks which are cultural