MPM721 People Management: Victoria Bank's Startup Consolidation

This case study examines the people management challenges faced by Victoria Bank as it consolidates ten acquired technology start-ups into a single entity, Viclnnovate. It analyzes the perspectives of the CEO, direct line managers, and employees, highlighting the importance of leadership, communication, organizational culture, and power dynamics in managing this transition. The study applies Maslow's Hierarchy of Needs theory to understand employee motivation and provides recommendations for effective marketing strategies, employee training, and a balanced approach to oversight by Victoria Bank to ensure the success of Viclnnovate. The case study emphasizes the need for vigilance in restoring and growing the efficiency of the consolidated companies and suggests selecting managers skilled in managing diversified organizations and emerging technologies.

People Management
VICTORIA BANK CASE STUDY

Introduction
Today, banks are faced with numerous challenges such as finding
new ways to improve their service provision. To overcome these
problems banks have been relying on technology to undertake
their business operations (Hewston, 2010, p. 22). However
adopting new technology can be a bit challenging as it appears in
the case of Victoria Bank. Victoria Bank prefers acquiring start-ups
to exercise greater control and own the resultant products. Over
the previous three years, Victoria Banks acquired ten start-ups
which have been managed by the Bank's senior managers.
However, it has become apparent that though these start-ups
require more management control, it also becomes expensive and
time consuming for the Bank.

Victoria Bank has decided to consolidate all start-ups into one
company to be called Viclnnovate. This decision, however, can
cause a lot of challenges for people involved. For example, the
chief executive officer, direct line manager and the employees
themselves.

CEO Perspective
The chief executive officer of Viclnnovate must understand that
although these are startups, they are at different levels of growth
and as such need to work with the direct line managers of these
firms to have a better understanding of where each startup is
coming from. The success or failure of Viclnnovate is dependent his
decision (Ulrich, 2008, p. 475). In his initial response, he has to
ensure that his firm has enough funds and the funds are properly
utilized, he also has to model a culture in the organization that will
cultivate harmony amongst stakeholders by forming groups and
teams that are effective in their dealings. (Application of power and
politics and group and teams)

By building up an effective organizational structure that is effective
not just for short-term benefits but also strategic for the long-term
success of the business. The chain of communication should be
properly aligned with the chain of command for instructions and
feedback to flow in the correct lines. In a perspective of the CEO, it
should be clear about the laws the company is expected to comply
with, the business potential and the expectations of the parent
company, for example, Victoria Bank. (power and politics,
communication and organizational culture)

Direct Managers’ Perspective
Implementing change can be difficult, but in these situations, the
direct line managers of Viclnnovate is in the best position to assist
the employees to adapt to the changes. Direct line managers
should remain focused on their duties because although locations
have changed, they retain the same responsibility they owed to
Victoria Bank. (power and politics) Therefore, since they work
directly with employees, they should take up the role of motivating
their employees and build up healthy competition amongst
themselves. They can also find ways of rewarding employees who
meet their deadlines and also in their assessment performing
employees (organizational culture). This helps to ensure that
production is at its level best (Ulrich, 2008, p. 480).

Direct line management can also ensure that they maintain a
friendly environment for employees to voice their grievances. If the
employees feel that they are taken care of, they learn to belong to
the organization and feel like they are a part of it. Direct line
managers are in a better position to understand and influence the
behavior of those employees that work under them. However just
working in harmony with their subordinates is not enough they
must also associate properly with the upper-level management
who are involved in coming up with long-term strategies and
making long –term decisions.

This is because direct line managers make day to day routine
decisions and they must take care not to sabotage the long term
goals of the organization (Gomez and Cardy, 2015, p. 32)

Employees Perspective
Employees are the lifeblood of all organizations. This is because
without them it would be the death of any business. (Hewstone &
Brown, 2012, p. 30). Employees are regarded as assets even
though they are not owned by the organization they are utilized by
organizations in order to generate profit. Viclnnovate employees
have come from different and separate locations and have been
brought together for the benefit of both Viclnnovate and Victoria
Bank. The organization must ensure that employees are properly
introduced into this new environment (organizational culture).

The Human resource personnel is responsible for ensuring that the
employees adapt to their new location (power and politics). For
example, the culture of the people, the laws, their geographical
location, and language if necessary. The Human Resource manager
should give employees an opportunity to settle in and hear their
grievances. The HR personnel then take necessary measures to
address the issues raised by employees (Adler, 2011). Training and
seminars should be planned for if necessary to ensure employees
are better equipped to face these new challenges.

Employees Perspective
The new company will have a larger workforce to manage and
therefore, human resource manager must make sure proper rules
and guidelines are put in place to reduce any cases of conflict that
may affect employee efficiency. Lastly, human resource manager
must ensure that proper consideration is observed in the amount
of remuneration that the employees receive. This is because to a
large extent human resource is motivated by the pay they receive
and not their input in the organization. Proper compensation will
keep employees from engaging in industrial actions like strikes and
boycotts. (Lewin and Michelle 2008, p. 16)

Maslow Hierarchy of Needs
Theory
The applicability of this theory in the
Victoria’s Bank context will help
resource manager understand
employees’ needs and therefore
employ appropriate measures
To fulfil them.
The diagram alongside show several
employees’ that Victoria Bank should ensure they
are fulfilled (Maslow, 2013).