Organisation and Sector Leadership Growth †MyAssignmenthelp.com

Question: Discuss about the Organisation and Sector Leadership Growth. Answer: Introduction: In order to run an organisation in a proper manner, it is necessary for every business organisation to maintain a proper structure. According to Nahavandi (2016), the structure of an organisation is important to gain success. This is because employees can remain clear about the immediate bosses in case of reporting of any work-related issue. Similarly, following a systematic process can help an organisation to remain on course for its goals and objectives. In this regard, it can be said that HSBC follows certain structures and systems that help the organisation to remain successful in the banking sector. The structure of the organisation is such that it follows a hierarchical system that is headed by the CEO of the company. The fact that the flow of instructions from the topic goes through several stages before reaching the employees is criticised by Story et al. (2014). This is because this takes time and can lead to certain organisational constraints such as delay in organisational information. The organised manner in which HSBC conducts its business signifies that the company can have a good control over the employees and can comply with the rules set up by the managers. The organisational system of HSBC is analysed based on the Graves theory of organisational value system and the personal value system that exists in the organisation. The leadership system involved in HSBC includes sharing the values of the employees. This helps in maintaining a proper culture in HSBC that other organisations find difficult to grasp. HSBC adopts the orange level colour code for its leadership purpose. This is because the company aims at viewing self-success and increase the prosperity of the organisation. Present leadership value systems and structure Every organisation needs a good leader in order to motivate and encourage the employees to continue to work in an efficient manner. Leadership value systems and structure have a severe impact on some of the important functions of an organisation. According to Northouse (2015), the effect may mainly come in a positive manner that helps an organisation to remain productive and continue to satisfy its customers. In this regard, it can be said that the leadership value systems and structure at HSBC also have a positive impact on the leadership, management and employees working at HSBC. The company follows a democratic leadership style that allows every employee to interact with the managers. The employees can present their feedback about company policies and engage in a proper communication method with the managers. This leadership style affects the company in a positive manner as most of the times it is seen that the employees prefer to give their opinion on matters related to the organisation. The management at HSBC needs to ensure that they recruit people capable of being leaders in the business. The leaders need to encourage the managers as well as the employees in order to gain success in the organisation (Ward 2016). Strategies and policies adopted by an organisation need to be different from its competitors. Hence, competitors are essential in order to analyse the capabilities and resources that are possessed by an organisation and the difference it has with others. Chrisman (2015) stated that the differences provide an opportunity for organisations to make rectifications regarding the choice of strategies that are adopted. It is also essential for organisations to conduct a market research that is essential to identify the competitors in the business market. Hence, to understand the differences in the systems and structure of the competitors of HSBC, it needs to analyse and identify the competing organisations. According to Beck and Cowan (2014), being a company of the banking sector, HSBC faces much competition from banks around the world. Every local and national bank around the world aims to be competitive in the business world and gain an upper hand over HSBC. Some of the competitors of the company include BNP Paribas, Citigroup, Standard Chartered, ANZ and RBS. These are banking sectors that have branches all around the world and provide good services to the people. However, unlike HSBC, some of the banks do not support and encourage the participation of employees in the decision-making activities of the bank. For example, the leadership style at BNP Paribas is different from that of HSBC. The employees of BNP Paribas do not possess communication opportunities with the employers. This is mainly due to the huge organisational structure of the company that makes it difficult for the employees to have direct interaction with the CEO. However, encouragement about creative ideas about ways to improve the services to the customers is provided in order to remain competitive in the business. This can be considered a huge step in improving the condition of the bank and make people insert faith in the activities performed by it (Cassidy 2016). It has also been seen that unlike the orange level of organisational leadership style adopted by HSBC, BNP Paribas adopts blue level of leadership. This is because the company considers to be part of a system that rules the banking sector. Positive points and negative traits The differences witnessed from the analysis of the competitors suggest a two-fold impact upon an organisation. A huge fluctuating difference with the competitors can be positive that make up a clear differentiation of the good work that is being carried on in an organisation. HSBC experiences this difference based on the leadership style that is adopted by the company. The fact that leniency is provided to the employees in terms of making own decisions is considered to be a huge difference than the competitors. This acts as an added form of motivation as employees can feel that they are part of the organisation in a much bigger manner (Cresswell and Sheikh 2013). Apart from this, the simple form of organisational structure is also beneficial as employees can understand their immediate bosses and communicate with them based on any grievances or ideas that need to be stated. However, there are negative traits as well that needs to be mitigated. The negative traits basically affect the organisation and the services provided by it. In order to mitigate this, every organisation needs to identify the causes of the negative traits of the organisation. HSBC needs to analyse the negative traits that exist in the organisation. The competitors of the company need to be analysed based on the effective work that is conducted by them. The negative traits of HSBC include the fact it provides excessive freedom to the employees (Mischel 2013). This is a cause for risk as certain decisions taken by the employees may have a bad influence on the organisation. The disadvantage of HSBC in this regard is based on the organisational structure. Despite being simple it also provides opportunities for the employees to apply the decisions without the consent of the managers. In the modern world, it is necessary for every organisation to evolve in order to remain competitive and survive in the market. Evolution of the organisations also helps in evolving the sector which it represents as the business of the sector as a whole improves. This can provide an excellent opportunity to gain a competitive edge over the rival sectors in a market (Miner 2015). HSBC is a public sector company that can be categorised under the financial sector. Over the years, development in technology and demography has helped the sector to evolve. The rise of more banks in the country has contributed in maintaining the rivalry among the financial sector as well as helps to develop the organisations involved in the sector. Some of the major areas in which the sector has seen improvement include the technological department. According to Carlos Pinho, Paula Rodrigues and Dibb (2014), the advent of technology particularly computers and applications have helped in the evaluation of the financial sector. This is because most organisations use the technology in order to make calculations that are complex for the human beings. The accuracy of the data can also be maintained with the help of technology. Apart from this, the rise of competitors in the market has brought about new ideas in the financial sectors. The fact that these companies have managed to contribute to the development of ideas such as reducing loans of education and home have helped in the growth of the financial sector. Companies like HSBC, BNP Paribas and so on have managed to provide the financial sector with the required changes that are useful for gaining an edge over other sectors in the industry. Differences with competitors In a competitive market, there exist a huge number of sectors. All the sectors have its unique characteristic and help in the development of a society and the business. Apart from the financial sectors, retail sectors, healthcare sectors as well as hospitality sectors exist in a market. These sectors do not have competition with each other in terms of attracting customers as the products and services of these sectors are different from one another. However, competition exists in the evolution of the sectors and the manner in which profitability of the sectors increase. According to Cadden, Marshall and Cao (2013), it has been seen that technology is used in every sector in order to maintain competition in the market. The use of technology has been beneficial to every sector based on the terms and services of the organisations. However, a difference arises in the application of technology along with the adoption of it. It has been seen that technology is mostly used in the financial sector mainly for completing critical calculations. This was adopted early as the computers were designed based on accepting programmes. Hence, it can be said that the early adoption of technology was implemented by the financial sector. However, it has been seen that the retail companies use technology for the purpose of increasing profit (Du et al. 2013). In the modern day, online purchase of materials has become a major trend. Hence, retail sector companies develop the technologies that can help in attaining organisational goals. Hence, it could be said that such difference in the evolution among the sectors pose serious competition in terms of increasing profit and surviving in the market. Based on the discussion it can be said that evolution among sectors has brought about positive as well as negative factors for every sector. This is mainly because of the fact that the evolution of every sector has not been the same owing to the application of the factors that lead to development. In this regard, it can be said that in the case of the financial sector, the major positive differences that the sector faced was the fact that the sector was the early users of technology (Kempster, Higgs and Wuerz 2014). This is an advantage for the sector it has been witness to the development of technology over the years. This is considered as positive differentiation as the financial sector adopted the use of technologies and ensured that the workload of the employees is reduced. In this regard, the negative traits of the sector can also be highlighted. The fact that the financial sector does not interact with the online sales of products proves as a disadvantage to the sector. Despite, the development of electronic transfer of money, most people prefer to visit the banks in case of any clarification. This proves as a negative trait for the sector, as people believe in face to face interaction more than any electronic transfer (Jarrett and Vince 2017). Hence, despite the popularity and the early adoption of technology, trust among the people is not developed. Hence, changes may be required in the organisations involved in the financial sector in order to respond to the evolution of the competition in the business market. Critically assessing and analysing: According to Bolman and Deal (2017), change is one of the most consistent factors that every organisation needs to deal with. Changes in the sectors help in the development of an organisation and improve the failing factors such as productivity and profitability of an organisation. Changes are also required in the financial sector in order to modernise the business and remain competitive in the market. The manner in which this can be done involves understanding the latest trends that are required in the business. It has been seen that a proper market research is essential in order to understand the strategies of the competitors. In order to develop a research team, it is necessary that the companies in the financial sector recruit people with experience in the field of marketing. In the case of HSBC, the marketing team need to conduct a survey about the benefits and pitfalls that customers suffer while banking with the company. Apart from this changes are also taking place in the adoption of technology. Technology helps in making most of the work easier for the employees. Hence, most successful organisations in the sector adopt the use of technology in order to remain competitive in the market by satisfying customers (Doppelt 2017). Banks such as PNB Paribas and Standard Chartered have used technologies in order to interact with the customers and solve any clarification of the people. Thus, these changes can help an organisation as well as the sectors to mitigate any challenges that may occur in the organisation. Most employees in an organisation react negatively to the changes that take place. This is mainly due to the fear of change in the process and that new technology or method of work may cause loss of jobs. However, on some occasions, it is seen that due to lack of proper infrastructure, resources and capabilities organisations fail to implement changes (Waddell et al. 2013). In the case of HSBC, the implementation of technical changes in the organisation has resulted in reducing the workforce of the employees. However, unlike Standard Chartered, HSBC has not been able to use the technology in order to solve clarification of the customers. This needs the use of a proper application that can be implemented in the mobile phones in order to gain access to the bank and speak to its personnel. HSBC need to improve accepting the changes that are required in the organisation. Shahzad, Bajwa and Zia (2013) were of the opinion that lack of resources to maintain changes in an organisation can be overcome by the application of strategies that can be helpful in mitigating the deficiency. In the case of HSBC, the managers need to formulate strategies that are useful for the development of the organisation. Leadership techniques need to evolve in order to encourage the employees to accept changes. In the case of rectifying the communication with the customers, the organisation needs to conduct surveys that can help in learning the feedback from the customers. The leaders need to ensure that the employees involved in the interaction with the customers are capable enough to solve the problems of the customers. Identifying and critically assessing: Every organisation faces certain issues that may hamper its work progress. These issues can be in the form of managerial issues, marketing or issue with customers. Berman (2015) stated that issues in organisations ranging from the level of employees to the level of employers. In the case of HSBC, the issues that normally occur in the organisation include: Issues regarding target: Most employees are given a monthly target to attract a certain number of customers at the end of the month. Failure to do so may cause financial loss for the company. However, on most occasions, the target cannot be met due to external factors such as an economic problem or social problem (Jin, Ji and Gu 2016). The issue in this regard is the fact that managers do not remain considerate while deducting salary that led to the failure of the organisational target. Issues with customers: This issue is quite common in HSBC as most customers find it difficult to understand the policies of the bank. They are also of the view that the bank employees do not provide support in order to clear their doubts. Hence, this becomes a big issue for the company as satisfying customers is an important aim of HSBC. The manner in which these customers can be made to trust the company is by engaging in proper communication. The communication needs to be such that it helps HSBC to understand the requirements of the customers and provide effective solutions. HSBC also need to develop sustainable practice in order to maintain the environment. Key actions required Every organisation needs to maintain certain goals in order to set them on the right path. Sustainability is one of the goals that an organisation needs to maintain in order to ensure that the environment is kept safe. The manners in which these goals are achieved are based on the strategies and policies of the organisation. In this regard, it can be said that HSBC also needs to develop plans in order to maintain the sustainability of the organisation. These actions are needed keeping in mind the future of the organisation. According to Hayes (2014), the manner in which sustainability is developed in an organisation is based on the type of work that is done. HSBC is a banking sector that provides advice to customers regarding ways to conserve their earned amount. Hence, the company does not engage in manufacturing products, wastes of which may harm the environment. Hence, acts related to the sustainability of the environment need to be done by conducting corporate social responsibilities. The social responsibility of HSBC is to promote the sustainability of the environment (Vann, Coleman and Simpson 2014). In this regard, the important actions taken by the organisation involves the providing training to the employees about the importance of sustainability in an organisation. HSBC can develop a green awareness campaign that can be funded by the bank in order to encourage the people to invest in saving the green plants of the society. Thus, this can act as an important aspect of the organisation and can help in gaining a good reputation in the society. Reference Beck, D.E. and Cowan, C., 2014.Spiral dynamics: Mastering values, leadership and change. John Wiley Sons. Berman, B., 2015. How to compete effectively against low-cost competitors.Business Horizons,58(1), pp.87-97. 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