The History Of Barclays Bank Commerce Essay Example

global presence by being the first UK bank to have shares listed on the Tokyo and New York Stock Exchanges. By 2006, half of its net income was generated from international operations.

Recent developments involved the British government's plan to inject ?40 billion ($69 billion) into three banks, including Barclays. However, Barclays declined this offer and instead chose to raise ?6.5 billion in new capital. To do so, they cancelled dividends worth ?2 billion and obtained ?4.5 billion from private investors.

In January 2009, reports indicated that Barclays might require additional capital. The government was willing to provide funding but could be limited by conditions set by Qatar's previous investment. These conditions stated that no third party could invest further without compensating Qatar at October 2008 share values.

It was revealed in March 2009 that Barclays received $1 billion through its insurance agreements with AIG in 2008. This amount included $8.5 billion sourced from funds provided by the United States for rescuing AIG.

Barclays completed the sale of its Global Investors unit, which included exchange-traded fund concern A shares, to BlackRock for $13.5bn on 12 June 2009. Additionally, Standard Life sold Standard Life Bank plc to Barclays plc in October 2009, with the sale finalizing on 1 January 2010. On 11 November 2009, Barclays and First Data agreed to migrate various card portfolios to First Data's consumer finance platform. Furthermore, on February 13, 2010, Barclays announced a bonus payment exceeding $2 billion.

Introduction of Leadership

Leadership encompasses utilizing individuals' capabilities to accomplish a desired objective and is not confined solely within organizational settings.

It permeates all sectors of society, whether it is in political relations, faith or the corporate world.

Definition of

Leadership

1. "The activity of influencing people to strive willingly for group goals." - George R. Terry.
2. "It is the interpersonal influence exercised in a situation and directed through the communication process towards the attainment of specific goals." - Robert Tannenbaum.
3. "Leadership is influencing people to follow in the achievement of a common goal." - Koontz O'Donnell.
4. "Leadership is the process whereby one person influences other group members towards the attainment of defined group or organizational goals." - Baron & Greenberg.

The above definitions clearly relate to Western perspectives. This is because leadership as a formal field of study and analysis with a structured curriculum has not yet been established in India as it has in the West.

Leadership Theories

Great Man Theory

Great Man theories assume that the capacity for leadership is inherent - that great leaders are born, not made. These theories often depict great leaders as heroic, mythic and destined to rise to leadership when needed.

The term "Great Man" was coined to describe leadership, which was primarily associated with men, particularly in terms of military leadership.

Trait Theory, similar to the "Great Man" theories, assumes that certain qualities and traits are inherited by individuals, making them more suitable for leadership. Trait theories often identify specific personality or behavioral traits shared by leaders. However, the question arises as to how individuals possessing these traits are not always leaders. This poses a challenge in using trait theories to explain leadership. Some researchers have shown that possessing these leadership traits does not always guarantee successful leadership, but it does earn the individual higher respect.

It is also observed that only about 10% of the traits listed in

over 100 studies were found in 5 or more surveys. The trait approach has resulted in the selection process through written tests or preference tests. The main drawback of this theory is that we cannot have common or universal leadership traits.

Contingency Theories

Contingency theories of leadership focus on specific variables related to the environment that may determine the most suitable leadership style for the situation.

Contingency theory asserts that no single leadership style is universally effective. The effectiveness of a leader is influenced by multiple factors including their leadership style, follower characteristics, and the specific circumstances they encounter. This theory falls within the realm of behavioral theories and proposes that there is no one-size-fits-all approach to organizing a corporation, leading a company, or making decisions. Rather, the most appropriate course of action depends on both internal and external circumstances. In the late 1960s, several contingency approaches were simultaneously developed.

The contention is that Weber's bureaucratism and Taylor's direction have failed because they did not consider the impact of contingency factors on leadership style and organizational structure. It is argued that there is no one-size-fits-all approach to leadership or organization. Contingency theory aims to explain generalizations about formal structures associated with different technologies. Joan Woodward's (1958) work proposed that technologies directly influence organizational properties like span of control, centralization of authority, and formalization of rules and procedures.

Situational Theories

Situational theories propose that leaders choose the best class of action based upon situational variables. Different manners of leading may be more appropriate for certain types of decision-making. These attack topographic points more accent on the features of the specific state of affairs or environment in which the

leader is runing. Qualities for leading vary with the state of affairs or fortunes and that any traits or accomplishment can go a quality of leading in the right state of affairs.

Behavioral Theories

Behavioral theories of leading are based upon the belief that great leaders are made, non born.

Rooted in behaviourism, this leading theory focuses on the actions of leaders non on mental qualities or internal provinces. Harmonizing to this theory, people can larn to go leaders through instruction and observation.

Participative Theories

This theory suggests that the ideal leading manner is one that takes the input of others into history. These leaders encourage engagement and parts from group members and assist group members feel more relevant and committed to the decision-making procedure.

In participative theories, however, the leader maintains the authority to incorporate the input of others.
Management Theories
Management theories (also referred to as "Transactional theories") concentrate on the role of supervision, organization, and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are commonly utilized in business; successful employees receive rewards, while unsuccessful ones face reprimand or punishment.
Relationship Theories
Relationship theories (also known as "Transformational theories") emphasize the connections formed between leaders and followers. Transformational leaders inspire and motivate individuals by helping group members recognize the significance and greater good of the task.

These leaders are focused on the public presentation of group members, but also want each individual to fulfill their potential. Leaders with this style often have high ethical and moral standards.

Leadership Style

The manner and approach of providing direction, implementing plans, and motivating people is known as leadership style. The U.S. Army Handbook, 1973 identifies three styles of leadership:

1. Authoritarian or Autocratic:
   

This style is employed when the leader instructs their employees on what needs to be done and how it should be done, without seeking input from their followers.

Although good leaders use all three styles, with one usually dominating, bad leaders tend to stick with one style. Barclay's bank is using all these three leadership styles.

There are certain situations where it is appropriate to use this approach, like when one possesses all the necessary task information, faces time limitations, and collaborates with highly motivated employees. However, it is important to note that some people mistakenly believe that this approach includes yelling, using offensive language, and relying on threats and power misuse. It must be stressed that this is not an autocratic leadership style but rather an inappropriate and unprofessional technique commonly known as "bossing" people around. Such behavior should not be part of a leader's skill set.

The autocratic style should be limited in its use as the participative style, also referred to as the democratic style, proves to be more effective for fostering employee commitment and motivation. This approach entails the leader including one or multiple employees in the decision-making process (determining what actions to take and how to execute them), while still maintaining ultimate decision-making authority.

Utilizing this strategy demonstrates strength rather than weakness, which earns respect from your employees. It is commonly employed when you possess some information while your employees possess other pieces. A leader is not required to have all knowledge; that's why knowledgeable and skilled employees are hired. This approach benefits both parties as it integrates the employees into the team and facilitates better decision-making.

Delegative or Free

Reign, also known as laissez-faire, is a leadership style in which the leader grants employees the freedom to make decisions regarding their personal matters. However, the leader retains responsibility for these decisions. This approach is employed when employees possess the capability to assess situations and determine necessary actions and methodologies.

To effectively accomplish tasks, it is important to prioritize and delegate. Instead of assigning blame when things go awry, trust and confidence in subordinates are vital. It is crucial to approach this cautiously. There are various leadership and management styles based on different assumptions and theories that individuals choose depending on their beliefs, values, preferences, as well as the organizational culture and norms that promote or discourage certain approaches. These styles include charismatic leadership, participative leadership, situational leadership, transactional leadership, transformative leadership, quiet leadership, and servant leadership.

Reasons for Implementing Change within an Organization

Organizations face challenges in this ever-changing environment such as a lack of group skills. Enhancing skills is essential for organizational effectiveness.

Today's concerned environment promotes adaptation, and in this changing environment, the individual with skills will thrive. It is the responsibility of a director to motivate others towards positive change and build a team that can effectively navigate through these changes. In this fast-paced world, it is challenging for a director to persuade team members to embrace the need for change. However, the director aids them in understanding new techniques and methods. While having good ideas is valuable, the crucial factor lies in executing those ideas through accepted approaches. Ultimately, the success of any change relies on the acceptance of these methods.

Lack of motive and morale
To increase employee motivation, the director

requires understanding the importance of flexibility. It is crucial for the director to identify what motivates their employees. Offering a diverse range of rewards is essential for motivating employees. The main goal of managers is to assist their employees in reaching their full potential. This can be achieved by assigning them developmental tasks that allow them to gain various learning experiences in different areas of the organization.

In 1980, Hackman identified the key aspects of a job as skill variety, task identity, task significance, autonomy, and feedback. A job should involve various tasks that allow employees to utilize different skills and abilities. It should also involve completing a whole and recognizable piece of work that has a significant impact on others' lives or work. When these elements are present in a job, individuals perceive their job as important, valuable, and worthwhile.

Having autonomy in a job gives employees a sense of personal responsibility for the outcomes they achieve. Moreover, when a job provides feedback, employees know how effectively they are performing. From a motivational standpoint, these core dimensions suggest that internal rewards are obtained when an employee learns that they have performed well on tasks they care about. The more these conditions define a job, the higher the motivation levels of employees will be. This leads to improved performance levels and increased satisfaction among employees while reducing absenteeism rates and likelihood of resignation.

Individuals who have a high growth need are more likely to perceive psychological states as critical and respond positively when their occupations include the core dimensions, compared to individuals with low growth need.
Conflict management Within organizations, conflicts sometimes arise among members. These conflicts are not

always detrimental; in fact, they can be beneficial as they provide team members with more information and a deeper understanding of the problems at hand, leading to more appropriate solutions. In the era of globalization, teams can identify conflicts and make successful strategic decisions without compromising task achievement speed. However, conflicts often result in slower task achievement and reduce the effectiveness of the adopted strategy.

The main reasons for conflict are personal differences in perception and outlook, lack of information, and uncertainty about roles.

1. The following are a few points that help overcome conflict:
2. Always work with ample information.
3. Focus primarily on facts.
4. Develop multiple options.
5. Everyone should have the same goal.
6. Inject humor into the decision-making process.
7. Solve problems without forcing consensus.
8. Maintain a balanced power structure.

Power and politics

Power refers to the ability to control the environment. If an individual has power, they can make decisions and take action. Empowering employees is often crucial for organizations.

In every organization, when employees are given authority, they have the responsibility of identifying and correcting improper processes. Directors are increasingly empowering their employees, which involves increasing their determination and decision-making power. Many employees are now making key operational decisions that directly impact their work. These activities, which used to be seen as solely the director's responsibility, are now being carried out

by employees as well.

The reason why more companies are authorizing employees is the need for fast decisions by those individuals who are most knowledgeable about the issues. If organizations are to successfully compete in a dynamic global economy, they must be able to make decisions and implement changes quickly. To cope with increased workload demands, managers have to empower their people. When employees have the skills, knowledge and experiences to perform their jobs effectively and when they desire autonomy and possess internal locus of control, it can be beneficial.
Rapid changes
Organizations are adapting to changes in both their internal and external environments. To adapt to these changes, organizations must be flexible.

Diverse work force

Another challenge encountered by the organization is coordinating the efforts of diverse members in achieving organizational goals. Present-day organizations have a diverse work force, meaning that they are more heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that depict variations. In order to meet the requirements of a highly potential market, organizations will need a larger workforce. Employees do not leave behind their cultural values and lifestyle preferences when they join the workforce.

The challenge for directors is to make their organisation more suitable for diverse groups of people by addressing different lifestyles, family needs, and work styles. Smart directors recognize that diversity can be an asset because it brings a wide range of perspectives and problem-solving skills to a company, and also helps organizations better understand a diverse client base.

Globalization

Management is no longer limited by national boundaries. There is significant importance from globalization, and the

world has certainly become the global village.

Directors in organizations of all sizes and types around the world must confront the challenges of operating in the global market. These challenges arise from various environmental factors while conducting business. To achieve global success, directors must effectively plan, organize, lead, control, and manage cultural differences.

General obstacles in an organization

An organization requires a wide range of skills, but sometimes even if the organization possesses these skills, it may not function as intended. In many cases, management is resistant to change and lacks creativity in utilizing employees' skills to their fullest potential.

Lack of vision is a major obstacle for organizations to fully utilize their resources. It is vital for leaders to have the ability to identify problems and find solutions. If the director lacks the ability to recognize opportunities for success, it will hinder growth. Similarly, if the management cannot identify innovative solutions, it will become a long-term problem for the organization. Another obstacle to organizational growth is the inability of all members to adapt to a changing environment. Each organization has its own set of norms and values, which all members must adhere to.

All members should adapt to changes if the concern is continuously changing. Effective Management is about filling vacant positions with knowledgeable and productive candidates, promoting high potentials to increase productivity, developing staff to improve their current role's efficiency, and retaining the best employees to consistently increase performance. Employee empowerment is important for the development and change of any organization. Empowering employees leads to the best results for the organization, as professionals agree that empowering employees increases organization productivity and employee commitment and loyalty. Empowered employees provide

better products and services. When an employee is empowered, they feel strong and become more confident.

This assurance so leads to break merchandises and services. For the development of organisation and get by up with the altering nature of plans empowerment is critical. This would better the public presentation and employees would take ownership of their occupations and the bringing of merchandises and services to their clients. They serve clients at the degree of organisation where the client interface exists.

Empowered employees are committed and loyal

No matter what the state of affairs is, employers do not like high employee turnover, as selection and training is very expensive.

During organizational change, if employees are given empowerment, it will serve as the basis for organizational development activities. This will ensure the commitment and loyalty of employees. Empowered employees feel a sense of pride and ownership in their jobs, knowing that they have the ability to make independent decisions when necessary.

Empowered employees are highly productive.

When employees feel valued and know that their opinions are considered and management will listen to their ideas, they are motivated to work harder and prove themselves. Implementing an organizational development plan requires incorporating measures to support employees, leading to increased productivity.

Empowered employees generate innovative ideas.

Every employee has their own unique thoughts and perspectives.

They may have different achievements. When empowered, they share their thoughts and this can provide valuable insight into management development and change management decisions. They can produce different products using innovative methods regularly. Organizations that are truly interested in effective organizational development and change programs recognize and reward their employees and provide regular feedback.

Empowered employees promote the company

Employee

morale will improve if they are empowered in organizational development and change programs. The more empowered employees there are, the more satisfied they will be and they will be more likely to spread the word about how good the company is to others.

We will further discuss the statement regarding Barclays and Lehman Brothers Integration.

Barclays and Lehman Brothers Integration

Barclays, the global financial services provider, acquired the US Lehman Brothers in 2008 to enhance its market. The main issue that occurred during the integration was the concern about minimizing customer transfers to other banks due to different cultures between the two businesses.

AS A CHANGE AGENT


Effective problem-solving

The initial step to solve the problem is to identify its cause.

Sometimes, simple communication with employees can solve minor issues such as attitude problems or occasional tardiness. In coaching, the director must address each job individually or assign another employee to work with the problematic employee to resolve any issues between them. It is the responsibility of the leader to provide employees with feedback to improve their public performance. Coaching requires time and patience, and this will ultimately result in the employee's behavior being modified.

Poor performance can be due to various factors

Sometimes, an employee may have the necessary skills but still not perform well. This could be due to being distracted, disorganized, or careless.

These habits can be eliminated through proper guidance. However, if lack of skill is the cause of poor performance, additional training can address this issue.

Job incompatibility

In some cases, an employee's poor performance may be attributed to not having the right skills for the job assigned to them. This issue can be resolved by

providing additional training or assigning them a different task.

Inaccurate or careless work

Whenever you observe mistakes made by an employee, identify and closely monitor those errors in their work.

Even if they have made a mistake, communicate with them and try to understand why they are being careless or not completing their work properly. However, it is important to remain positive and recognize the significance of the employee to the company.

Create a message that is impactful

Take into consideration the needs of everyone in the organization and tailor your message accordingly so that they can comprehend what you are trying to convey. The performance of employees greatly relies on your message.

An effective message can have a positive impact on employee performance. Face-to-face interaction is preferable and can help employees adapt to change.

Listen to your employees.

Employee feedback is crucial for change management. You can encourage employees to provide feedback through email or the intranet. Communication is key to successfully managing change. You should communicate with your employees early and frequently to ensure they understand your message.

Stake Holders Involved in the Change Process

Investors and business partners and providers were influenced by this change management process as they invested their assets to make a profit. However, under the old policy, they did not make much profit. Therefore, they participate in the change management process to achieve their goals.

Bank employees

Bank employees are involved in the change management process, but they are against it because they are accustomed to working with the old policy.

Customers

Customers are also involved in the change management process and support it because they want

quick results and innovation within the organization. They are also influenced by the change process.

Government and NGOs

The government and NGOs are influenced by the fact that the government expects more taxes and other responsibilities from organizations. If an organization is not making a profit, how can it pay more taxes and take on additional responsibilities?

On the other hand, organizations also need support from Ngo for their improvement. If organizations are not in a good position, they will also be influenced by this. Therefore, these departments also need a change process for the betterment of the organization.

Kotter ‘s 8 Step Change Model

What was true more than two thousand years ago remains true today. We live in a world where "business as usual" is synonymous with change. New initiatives, project-based work, technological advancements, and staying ahead of competitors all contribute to ongoing changes in our work methods. Whether you are implementing a minor change in a couple of processes or a comprehensive change across the entire organization, it is common to feel uneasy and intimidated by the scale of the challenge.

Are you aware that you must proceed with the change, but you're unsure of how to begin implementing it? Where should you start? Who should be involved? How do you ensure it is completed successfully? Numerous theories exist regarding the process of "making" change, with many originating from leadership and change management guru John Kotter. Kotter, a professor at Harvard Business School and a globally recognized expert in change, introduced his eight-step change process in his book "Leading Change" published in 1995.

"We examine his eight steps

for leading change underneath.

Step One: Generate Urgency

For change to occur, it is beneficial if the entire company genuinely desires it. Cultivate a sense of urgency regarding the need for change. This can help activate the initial drive to get things moving."

This is not simply a matter of showing people poor sales statistics or talking about increased competition. Engage in an open and honest conversation about what is happening in the marketplace and with your competition. If many people begin discussing the change you propose, the urgency can grow and feed on itself. Here are some actions you can take:

• Identify potential threats and develop scenarios illustrating future possibilities.
• Explore opportunities that should be pursued or have the potential to be pursued.
• Initiate honest discussions and provide dynamic and compelling evidence to encourage people to talk and reflect.
• Seek support from customers, external stakeholders, and industry professionals to strengthen your argument.

Step Two: Build a Strong Alliance

Persuade people that change is necessary. This often requires strong leadership and visible support from key individuals within your organization.

Pulling off change isn't sufficient; you must also embrace it. Effective change leaders can be found at various levels within your organization, regardless of their position in the traditional company hierarchy.