The case of restructure at Bunga Raya Bank Essay Sample
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The case of restructure at Bunga Raya Bank Essay Sample
The main team issues that I note in the case of restructure at Bunga Raya Bank is about lack of work team. Work team is defined as a team that generates positive synergy through coordinated effort. In this case there is no teamwork within upper level employees and lower level employees. We can see that in this case Yusuf Chang as a CEO of Metro bank is perform very well in his career and banking industry. Yusuf has been very successful throughout his banking career and is extremely experienced in all facets of banking as a result of his progression through the hierarchy from junior teller to CEO over a period of 15 years.
Even Yusuf is known for his directive leadership style and he has very few admirers due to his relationships towards the employees. He is not close to the employees. It is totally difference with Latifa who is Group Operations Manager (GOM) for Bunga Raya Bank. Latifa has been with the company for 17 years and has worked her way up through the ranks from office clerk to GOM. Latifa is well liked by everyone.
She always makes time to listen to staff, no matter what their problems are, and spends a lot of her time on the road traveling to individual Bunga Raya branches to ensure that operations are functioning well and that staff and customers are satisfied. So, Latifa does not have any problem to socialize with others employees. In this case, Mr Yusuf is a directive leader, he quietly and without any input from anyone, Yusuf has spent the month analyzing Bunga Raya Bank’s financial position and has come to the conclusion that in order to increase profits further, there is no choice but to downsize and completely close several branches.
This situation is could be related to the lack of problem solving teams. Problem solving teams is a group employee from the department who meet for a few hours each week to discuss ways of improving quality, efficiency and the work environment. But, Yusuf Chang takes his own action by not involving others staff in making decision. He analyzes the roots of problem faced by the organization by himself. Finally he makes a decision to downsize and completely close several branches in order to increase the profits further.
Next, there is no self – managed work teams in this case due to the action taking by the Yusuf. He left the problem unsettled to Latifa. He ask Latifa to organize all those problems after all, she’s the one who is closest to the staff and customers. Yusuf is conscious that Latifa’s first reaction will possibly be one of disapproval given that the downsizing or closure of 70 regional branches means not only the loss of jobs or relocation of employees, but that thousands of Bunga Raya Bank’s customers will be affected. He wants Latifa’s input on how to approach staff and customers.
Yusuf wants the whole process to take no longer than six months from initial communication with employees and customers to completing the downsizing and closure of the branches. Latifa is shocked. She expected something, but nothing as devastating as this. She has no idea what to do, because despite her experience in the banking industry, she has never had to deal with this sort of situation. As a conclusion, team work is very important issues in order to achieve the goals. Team work is a great way to use employee talents and more flexible and responsive to changes in the environment.
The difference between Yusuf and Latifa’s approach in communicating the changes to their staff is Yusuf possess a directive leadership style while Latifa possess a participative leadership style. Yusuf only focuses on the work to be done which is to downsize and completely close several branches to increase the profits for Bunga Raya Bank. All his concerned about was to increase the profits and he has the Board’s backing to go ahead and there would be $1 million bonus at the end of his four year term if his performance are aligned with the Board’s expectations.
So, the approach he used in communicating the changes to their staff was he spent the month analyzing Bunga Raya Bank’s financial position without making any input from anyone despite his directive working style. Besides, he conscious that Latifa was close to the staff and customer so he leave it to her to organize this matter which is the closure of 70 regional branches. He also told Latifa to complete the task within six months from initial communication with employees and customers to completing the closure of branches.
Latifa is nice person and she attempts a participative leadership style, the way she communicate with the staff was she being a good listener towards her staff and helps them solve their problems and issues. She also oversees and ensure that operations at other branches are functioning well and that staff and customer are satisfied with the company’s services. After being inform about this matter, Latifa was be at a loss and had no idea how to deal with it.
Based on this situation, the suggestion advice to Latifa’s handle this situation is she must have a strong emotion and mental because her ability to successfully interact with other people is so important to survival, these skills have become part of human nature. It determine whether to help in large part on the basis of how other people make us feel, and how to think and will feel to help or do not help them. She must prepared a good mental and must be improve a KSAO’S to handle this case. For the first process is make a proper plan first and think the job duties and task can be combine.
It can be reduces the quantitative number of employee. Latifa must to think how to solve employee task in short period and on how to complete one by one task to handle this case. After that, Latifa also must to do some short check list based on employee performance appraisal and performance management. It is very important because it can identify and analyze whether the employee is good quality performance or not. Apart from that, she must to make a careful observation on how employee works at each department to ensure which employee better stay or which employee are not needed in this organization.
Furthermore, she have to think for future about which task can combine or can be reduce utilize of worker. So that, the task not much and it will be show that reason why she wants to terminate some employee in the company. Also employer can terminate employee if they not perform very well. Another thing is she must make a friendly with employee and socialize with them. Having a good communicate with employee can make them close relationship with others. In this contact Latifa need to listen carefully to the questions and concerns of everyone in the organization.
Also Latifa must be are motivation person and professional worker for employee about how to think positively will happen in the future. It can help employee give motivate about the problem that Bunga Raya Bank must clearly. Hence, she must give them benefit such as offer them to searching new job. Latifa must think a good alternative to help employee get new job and give them benefits, so that they can be realize burden. She must be always make a positive worker in all aspect and not be a bias within employee. Also she must be fair and keeping employees feeling in every conversation and behavior before doing something.
In addition, Latifa must be a good critical thinking and must think about the customer loyalty of perception if Mr Yusuf Chang closes any branches will affect the reputation of the company and the customer’s loyalty to Bunga Raya Bank. This is because the sense of inconvenience to customers will make customers perception to others bank that can give a good TQM total quality management services to them and will ease their business. For example Latifa’s need to plan the time left it mean she must create a program or training and give a change for employee to raise their profits in very limited time such as in only 3 month given.
So that, if they can raise the profit until achieving company goal, it may be to motivate them to maintain it. If employee make a higher profit company, it can help to change mind Mr Yusuf Chang to closes the any branches Bunga Raya Bank and give award to employee achieve goal to maintain the economic sustainability. Last but not list, Latifa must be discuss with the Mr Yusuf as a CEO to think about the implementation of strategy management of Bunga Raya Bank. Strategic management is defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance.
According to Robbins and Coulter (2014), leadership is a process of leading a group and influencing that group to achieve its goals. In case study 1 restructured in Bunga Raya Bank, there are two leaders involved Yusuf Chang and Latifa Hamid. Yusuf Chang who has been CEO of Metro Bank for 18 months and now he appointed as CEO for four years in Bunga Raya Bank in order to generate the greater profits for Bunga Raya Bank. His progression can see through the hierarchy from junior teller to CEO over a period of 15 years.
As we can see from the case study, his style of leadership is task oriented leadership. Task oriented leader only focuses on the task that have to be done in order to achieve goals. They are not really concerned what their employees think and ideas they give, it is more important finding the solutions how to achieve the goals. What they know is the tasks are completed and everything gets done in timely and correctly. In this case, the Board was advised Yusuf to think another way to gain more profits for Bunga Raya Bank with the bonus $1 million at the end of his four-year.
After a month analyzing without asking anyone, he quietly making decision to downsizing and completely close several branches. He appointed Latifa to handle the rest of the jobs and the due date was given no longer than six months from initial communication with employees and customers. While Latifa’s style of leadership is relationship oriented leadership. This is because Latifa always concerned, support, motivate and discuss with her staff. She is well liked by everyone because she has good communication skill and always spread the positive vibes among everyone.
According to Bass and Avolio (1995) citated in Tabernero et al. , 2009, described the concept of relationship-oriented leadership behavior, which is expresses the degree to which a leader shows concern and respect for their followers, looks out for their welfare, and expresses appreciation and support. As conclusion, in leading and moving effectively in organization leader become a role model to show the right way with the right approach of leadership to employees. The conflict between Yusuf and Latifa, Yusuf has made a new plan to make Bunga Raya get high profits and good performance than other bank.
He wants to downsized and completely close several 70 regional branches but it make the employees loss their job and less of customers. Bunga Raya Bank profits is important for Yusuf because he will get bonus if he success in his plan to improve the bank performance. So, he gives the responsibility to Latifa managed the plan and at the same time tell the employees and customers about the idea in improving their profits. Latifa feel a bit disappointed with Yusuf’s idea because she already close with the employees and customers.
She also have no idea in handling the situation. The conflicts between Yusuf and Latifa will be solved if the skill of leadership was apply in this situation. As a leader, Yusuf need to apply the leadership skill in managing the problem that exist in the company. It is the advantage for Yusuf if he shares the company’s problem to the employee in solving the problem. Sometimes, leader need to hear the idea that come from the employee because it will help the management in improving the performance.
There are two types of contemporary leadership which are Charismatic leadership and Transformational leadership. The characteristics of Charismatic leadership are have a clearly articulated vision, willing to take personel risk to achieve the vision, exhibit behaviours that are out of the ordinary or behave in extraordinary way and have high amount of self-confidence. Through this leadership skill, Yusuf need to articulate the vision of the Bunga Raya Bank in increasing their profits and good performance. The have to link with past, present and for the future.
Then, the leader communicates high performance expectation and he must confidence with his employee’s ability like he confidence with Latifa to manage his plan in improving profits for the company. Yusuf need to conveys a new set of values to his employees by setting and example. Then, as a leader also have engages in emotion-inducing and often unconventional to demonstrate conviction about the vision. The leader use their own charisma character in transformational leadership to transform and revitalize or change organization by create a vision that inspire employees.
The employees will trust and follow because the leader self-interest and can have extraordinary effect on followers. It same with transactional leadership that the leader conduct or motivate employees to do work as to achieve the vision or goals of the organization. Yusuf and Latifa have to cooperate in managing the employees so that they can do their work and understand what Bunga Raya Bank want to achieve. Yusuf should not ask only Latifa to communicate with the employees but he also need to have good relationship with the employees and give support to them to make sure the employees feel comfortable working in the organization.
Motivation is important for us in doing something because motivation encourage and give spirit to us to perform well in our work. Yusuf as a leader and Latifa should give support and motivate the employees if they have do some mistakes in their work. Then, give them some advices to improve their performance and guide them to work in a group or team to achieve the organization vision. Furthermore, Yusuf should be firm and courageous in making decision. One of the way to make Yusuf and Latifa have the same opinion in achieving their goals is have a group decision making.
Group decision making is a situation when two or more people are involved in making decision in organization. Therefore, the relationship between the leader and the employees can be more closely and at the same time simplify their work to be done. Through this alternative, the group members are encourages to generate as many idea as possible without restriction on type of idea. This technique can be called brainstorming. So, by this technique can make sure the Yusuf easy to select the solution to achieve the goals of Bunga Raya Bank and there are no other member will not satisfied with the result.
The family’s day can link to the existing warm-heartedness among top officials with subordinates and surrounding subordinates. Within a year, at least the organization can hold one day for Family Day activities. On that day they can meet face-to-face. In addition, from the Family Day program the wives and children of senior officers and subordinates can also get to know each other. There are various activities that can be done including aerobics, family days, and so on. In addition, every organization should also have a campaign to strengthen the relationship of senior officers with subordinates.
there are various campaigns that can be practiced in the organization to further strengthen the relationship between the two parties. Family friendly policies (FFP) can also be practiced to strengthen the relationship between senior officers and subordinates, which provide family medical leave, that one employee will use the leave to care for an elderly parent or family member who has a long-term illness, or is inclined to a disease problem chronic and family members suffering from mental illness.
Health and family health benefits such as low-cost health and dental insurance or health cards and even health and fitness programs for children or couples. College scholarship or loan for children of workers should be provided. Employers may give award one or more scholarships annually, on the basis of merits or requirements, to employees’ children, especially employees or employees at the subordinate level.
Giving awards to employees is also among the programs to strengthen the relationship between top officials and subordinates. Respect qualified staff based on the criteria and criteria. In addition, it can stimulate a brilliant work culture. Between staff is also between programs that can strengthen the relationship between senior officers and subordinates. Among the meals that can be held are year-end and year-end entertainment, breaking of festivals and celebration of feasts at the organizational level.