Organizational Analysis Report: Bank's Culture, Ethics, and Leadership

This report provides an organizational analysis of a national bank facing challenges related to service delivery, poor organizational culture, unethical practices, and a failure to prioritize customer needs. The analysis begins by emphasizing the importance of organizational culture and effective...Read More

ORGANIZATIONAL ANALYSIS 1
Organizational Analysis
Student’s Name
Professor’s Name
Couse
Institution of Affiliation
Date

ORGANIZATIONAL ANALYSIS 2
Organizational Analysis
At one point in an organization's existence, it is bound to face challenges that affect
its overall operation. In the case of financial institutions, regular monitoring is required to
ensure adherence to process and regulation while guaranteeing customer satisfaction.
Organizational culture and effective management dictate the mode in which employees
perceive the company. Hence to rectify any failure in the banking system, it is vital to begin
by changing and streamlining its management structure and culture. This provided the needed
components that guide the operation principles of an organization, thus increasing the
company productivity and service deliveries to their customer.
Deductions from problem identification section highlight that most employees are
unaware of the role they hold in the organization. A clear set organizational structure is
essential in reducing overlap of authority and also provides a defined channel of custody and
reporting across the organization. Clearly defined roles increase the accountability of the
responsible party thus every employee from top management to the lowest level should
understand the duties assigned to them in the organization so that they can be held liable for
any failure in their sections (Nicholson, Pugliese & Bezemer 2017). The institution can,
therefore, adopt a system that requires staff members to confirm their understanding of their
roles in the organization hence enabling them to commit in achieving these goals.
Similarly, the business should conduct regular appraisals of the workforce to
determine members that are competent to continue working in the organization. More
adapting Management by Objective (MBO) technique, which evaluates employee
performance based on their accomplishment of certain goals can be used as a short-term
measure (Islami, Mulolli & Mustafa 2018). The assessment incorporates sessions which
allow the evaluation of employees’ performance while pointing out areas that need
improvement. For instance, key performance indicators (KPIs) such as accuracy in task

ORGANIZATIONAL ANALYSIS 3
completion, effective communication, turn-around time and the number of complaints against
the employee can be used to determine the suitability of the worker to his role. To boost
employees’ motivation and morale, high performing workers can be given incentives that will
encourage them to improve their services with the hope of getting the same reward during the
next appraisal period (Gallani 2017). Assessing all aspects of performance indicators ranging
from ethical conduct to productivity promotes healthy competition that collectively enhances
the organizational image and brand.
Owing to the multi-departmental nature of the financial institution, leaders selected
for different departments should have set targets that they intend to achieve after a set period.
They are also required to understand who they are answerable to allow smooth decision
making and communication. Properly defined hierarchical structure helps minimize conflicts
that may arise from reporting procedure and processed. The method of adopting departmental
targets that align with the overall business goals helps respective sections engage workers
who might provide insight into process changes that are beneficial to the firm. A
transformational leadership strategy is encouraged at the departmental level since it allows
leaders to become role models, thus smoothly guiding their subordinate towards set standards
(Ikinci 2014). It also enables leaders to become conversant with the daily processes hence
making it easy to set targets based on both personal and employee input. Consequently,
adopting a multi-level leadership strategy helps accommodate different dynamics that are
unique to various sectors in the organization, allowing them to achieve their objectives
concerning the overall set by the top management.
The customer is the most critical person in the organization and determines the
success or failure of the company. In light of irregular charging of customer, it is prudent for
the banking services to be streamlined. This is only possible through identifying, evaluating,
developing potential solutions, and implementing proposed changes. The most likely scenario

ORGANIZATIONAL ANALYSIS 4
is the case of technological malfunction, which the only remedy is the upgrade or
replacement of the system to avoid any future occurrences. In the current fast-paced
economy, banks should adopt technology that increases accuracy and also facilitate speedy
execution and processing of customers instructions.
If it is determined that it is due to negligence by staff members, then they should be
held culpable of these misdeeds to prevent any other exploitation of the customers. As a
proactive measure, regular account audits can be initiated to ensure that there are no
unwarranted charges (Vousinas 2015). The review can be backdated to facilitate the reversal
of entries that were erroneously done in an attempt to restore consumers’ confidence. This
should be accompanied by an official message of apology to all the affected clients
acknowledging the mistake and offer an incentive such as waive of monthly ledger fees for a
given period as a show of remorse.
Setting up an effective customer service platform is necessary for enhancing
communication between the bank and customers while appreciating the fact that clients are
the most vital part of the organization. Communication channels provide avenues that the
involved stakeholders can use to resolve any arising conflicts (Ikechukwu, Fidelis &
Celestine 2017). Social media platforms and custom made inquiry and complaint reporting
sites can be used to engage clients and ensure their resolution hence avoiding escalation to
the media. If the timeline is adhered to and the customer is given relevant feedback on the
same, it boosts the customer’s satisfaction with the brand and increases loyalty (Madjid 2016,
p.94; Cambra-Fierro, Melero-Polo & Sese 2016). It also reduces the backlash associated with
ignoring customers’ requests and feedback but instead boost their loyalty to the brand.
Effective feedback channels between the bank and its client enable it to understand
customers’ expectation while getting opinions that can improve service delivery.

ORGANIZATIONAL ANALYSIS 5
In a bid to change the organizational culture reviewing the business mission, vision,
objectives, and code of conduct are paramount. The vision statement outlines what an
organization intends on achieving in the long run in regards to its employees, customers, and
shareholders. The mission statement provides a short-term outline that the organization
intends in-order to achieve their ultimate goals. Consequently, the mission and vision
statement gives a sense of direction that guides employees toward fulfilling the purpose of the
organization while instilling a sense of belonging and identity (Toh & Koon 2017). Training
sessions aimed at revisiting an organization's mission and vision help remind employees of
the reason they joined the organization in the first places.
Due to numerous complaints, it is imperative that news goals and objectives are set.
The firm has already eroded its clientele trust and is perceived in a negative light by the
general public. Hence the initially set objectives are no longer useful in guiding the business
operations. The setting of new goals and objective alone is not sufficient in guaranteeing any
changes. Thus a monitoring and evaluation mechanism has to be instilled to ensure the
success of this initiative (Curry 2019). Regular meeting among employee is necessary for
restoring an all-inclusive attitude, which gives workers a sense of importance hence boosting
their morale. Individualistic targets that align with the collective organizational goals can also
be set to ensure that every employee actively contributes towards achieving the set objectives.
Regular constructive feedback from leaders can also help point out areas of improvement on
a personal level hence making employee put the optimal efforts in the daily tasks (Chai,
Hwang & Joo 2017, p.139). In the end, adopting a culture that requires employees to achieve
specific goals, help foster a sense of accountability and responsibility.
Code of ethics in any institution facilitates how every stakeholder in the organization
behaves. Employees represent the organization hence how they conduct themselves will help
shape customers perception of the entity (Rho, Yun & Lee 2015, p.422). Consequently, it is

ORGANIZATIONAL ANALYSIS 6
significant for employees to understand what is considered ethical by their customers,
colleagues, shareholders, and government. For instance, ethical practice dictates that all
customers should be treated fairly. Engaging in money laundering practices not only damages
the company brand but may lead to license withdrawal of the firm.
To instill ethical behavioral culture, it is crucial for the management to engage in
benchmarking processes. For instance, during induction, new employees are taken through
codes of conduct with necessary theoretical scenarios provided to help them understand what
is expected of them. Using past practical example will boost employee reasoning and enhance
their comprehension of the company expectation. Coming up with a regular training program
that seeks to remind all employees on their duties to different stakeholders will also help
develop the culture of transparency and adherence to the set codes of conduct (Mustafa
2014). Evaluation is equally vital during training to gauge the effectiveness the practice has
on the participants. Recurring training and benchmarking programs will eventually
internalize the importance of ethical behavior in an organization hence reduce cases of
unethical behavior. Enforcement is the tricky part of creating an ethical culture. In many
occasion, an employee has to be reprimanded, which may lead to their termination apart from
other disciplinary measures. Regardless it is a necessary step since just advocating for ethical
practice is not sufficient. Every member of the organization should understand that any
breach of ethics will have consequences. Thus most employees will try and avoid situations
that result in disciplinary proceedings.
Money laundering has become a significant concern in many financial institutions.
The strengthening of regulatory measure between banks and oversight bodies is necessary
(Mei and Zhou 2015). Regular reporting of financial transactions by banks to supervisory
organs will help discourage any malpractices that may be done knowingly or otherwise. Thus
the institution should report any suspicious transactions that do not conform to the set

ORGANIZATIONAL ANALYSIS 7
standards set for any it to be processed (Vasquez 2017). Similarly, employees should receive
adequate training that will enhance their knowledge regarding anti-money laundering laws.
Ultimately, it will boost their ability to identifying suspicious transactions and understand
how to deal with such transactions. With the ever-changing ways of laundering money,
regular training will be vital in guaranteeing the success of this process.
Reinforcement of internal control mechanisms and policies are required to ensure that
the bank is perceived as an anti-money laundering institution. For instance, banks can adapt
screening of transaction through the national database to ensure that any suspicious individual
sending money through the bank is flagged and vetted further before completing their
transaction. The national regulatory body keeps a database that contains individuals and
institution that are involved in money laundering. Adaptation of technology that allows
screening of transactions before processing will help minimize the organization risk when
reporting to the oversight bodies (Barr, Gifford & Klein 2018). Formation of specialized units
that vet new and large transaction may help limit bank exposure to money laundering
schemes.
In reference to failure in leadership structure, communication, and unethical practices,
it is relevant for the organization to document all the cases. This plays a vital role in
informing both new and existing employees on different practices and the consequences they
have on the organization. It also serves as an application scenario that may provide insight to
different levels of management of how best to enhance their service delivery to the customer
while ensuring that a culture of accountability is fostered across the organization. A campaign
championed in the social media and the company's website highlight positive aspects of the
bank services can help remind clients why they chose the institution as the go-to place for
financial assistant. Nonetheless, the company should be ready to accommodate constructive

ORGANIZATIONAL ANALYSIS 8
criticism from the public and their client. This will enable them to understand how they are
viewed in the public domain while giving them a chance to improve.
Conclusion
The organization faces challenges pertaining to service delivery that emanates from
poor organizational culture, unethical practices, and failure to prioritize customers need. The
resolution of these challenges is only capable is the company goes back to fundamental
aspect required to run a good business. Reviewing the leadership structure reduces confusion
and conflicts that may arise from an undefined hierarchical structure. Similarly, an employee
sense of accountability can be improved through having a clear outline job role hence making
them answerable for a given task. The organization should enhance its customer service unit
to foster effective communication between the client and banks. In the long run, it helps the
institution understand areas that need improvement while preserving loyalty that may easily
be eroded if there is a break in communication. Ultimately, revisiting organizations' goals,
mission, vision, and code of ethics go a long way in creating an environment where every
employee understands the role they play in the success of an organization.

ORGANIZATIONAL ANALYSIS 9
References
Barr, M., Gifford, K. and Klein, A., 2018. Enhancing anti-money laundering and financial
access: Can new technology achieve both?
Cambra-Fierro, J., Melero-Polo, I. and Sese, F.J., 2016. Can complaint-handling efforts
promote customer engagement? Service Business, 10(4), pp.847-866.
Chai, D.S., Hwang, S.J. and Joo, B.K., 2017. Transformational leadership and organizational
commitment in teams: the mediating roles of shared vision and team-goal
commitment. Performance Improvement Quarterly, 30(2), pp.137-158.
Curry, D.W., 2019. Perspectives on Monitoring and Evaluation. Pp.147-150
Gallani, S., 2017. Incentives, peer pressure, and behavior persistence.
Ikechukwu, A.C., Fidelis, I.E. and Celestine, O.A., 2017. Effective communication as a
panacea for conflict avoidance in public building construction project

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delivery. International Journal of Advanced Research in Engineering &
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Ikinci, S.S., 2014. Organizational change: importance of leadership style and
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Vasquez, D.R., 2017. The Global Anti-Money Laundering Regime: An Assessment Of
Effectiveness.

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Vousinas, G., 2015. The Critical Role of Internal Audit in Addressing Bank Fraud: A
Conceptual Framework and Critical Review of the Literature with Future
Extensions. Available at SSRN 2632911.