Case Analysis of First National Bank

5 May 2017

Short-term: What change strategy will help maintain the morale of the employees and not drive away the existing Chinese clients? Long-term: What change strategy will help the change be internalized by the members of the organization in the long run? Areas for Consideration * Branch managers are over 50 years old and were recommended by stockholders – might take the customers with them * Mostly young graduates dominate the investment banking and corporate services department * Close ties with the Chinese community * No labor union – close relationships between employees

Assumptions * Changes will be implemented within a year – Approved by the board of directors * There will be no changes in the organizational structure * Implementation of changes will be through before bank liberalization Alternative Courses of Action 1 . Force-coercion strategy A force-coercion strategy includes authority, rewards, or punishments as major inducements to change. That is, the change agent acts unilaterally to “command” change through the formal authority of his or her position, to induce change via an offer of special rewards, or to bring about change via threats of punishment.

Case Analysis of First National Bank Essay Example

People respond to this strategy mainly out of the fear of being punished if they do not comply with a change directive or out of the desire to gain a reward if they do. Compliance is usually temporary and continues only as long as the change agent and his or her legitimate authority are visible, or as long as the opportunities for rewards and punishments remain obvious. Pros I Cons I * Immediate compliance of employees * Will not incur any cost which can be compliance of employees * Bad reputation of the president * If Possible decline in work performance * No consultation with the employees I 2.

Rational Persuasion Change agents using a rational persuasion strategy attempt to bring about change through the use of special knowledge, empirical support, or rational arguments. This strategy assumes that rational people will be guided by reason and self-interest in deciding whether or not to support a change. Expert power is mobilized to convince others that the change will leave them better off than before. It is sometimes referred to as an empirical-rational strategy of planned change.

When successful, this strategy results in a longer lasting, more internalized change than does force-coercion. Changes are reasonably Justified * Morale of the employees are kept because they have an idea of the changes being implemented I * Time consuming * Suggestions from employees will not be considered * Cost will be incurred in educating the employees I 3. Shared-power strategy A shared-power strategy actively and sincerely involves the people who will be affected by a change in planning and making key decisions relating to this change.

Sometimes called a normative-reeducative approach, this strategy tries to develop directions and support for change through involvement and empowerment. It builds essential foundations, such as personal values, group norms, and shared goals, so that support for a proposed change emerges naturally. Managers using normative- reeducative approaches draw upon the power of personal reference and also share power by allowing others to participate in planning and implementing the change. Given this high level of involvement, the strategy is likely to result in a longer lasting and internalized change. There is consultation with the employees * Members are more willing to adopt the changes because they are part of the decision-making * Morale of the mployees are kept because they helped make those decisions * Smooth implementation and changeover because of their participation in planning I Time consuming * Difficulty in reconciliation of suggestions of the two parties (the president and the members of the organization) * Cost will be incurred in the consultation to the employees I Select the alternative that can help implement the changes without losing the morale of the employees and retaining the support of the Chinese clients.

The alternative must also give the optimal internalization by the members of the organization. Evaluation and Recommendation The group recommends the use of shared-power strategy in managing the changes in First National Bank because this strategy involves the other members of the organization in deciding and planning the changes that Mr. Viray wants to implement. The consultation with the other members provides venue for them to speak their side, especially their reservations about the changes, which make them feel secure about how the management will treat them.

Furthermore, member involvement makes them more willing to accept and internalize the changes, and thus giving way to a smoother change-over and implementation. Implementation Using the shared power strategy, Sammy would call for a company talk to discuss about the changes he would like to implement. The changes and the specific actions will be consulted to the members of the organization. This will help elicit feedback from them.

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