Introduction Of Leadership And Management In Practice Case Study
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Leadership refers to the ability of an individual to affect, encourage and influence other people too to contribute their work towards the success of the organization. This report is based on Barclays which is UK based multinational universal bank. Further, the report includes the external analysis through pestle of Barclays which helps to understand the actual condition of the bank in Marketplace. In addition, this process can be done with the help of McKinsey of Barclays along with its SWOT analysis to understand the internal condition of the business. At last, it covers some action plans based on the recommendation for the leadership aspect and future activities.
Background (to the organization) including organization structure, problem/opportunity – vision, and mission
Barclay’s universal bank is headquartered in London. The organization traces its origin to goldsmith banking with an establishment in London in the year 1690. Further, Barclay’s bank also lends, invests, and lends money to around 48 million people in the world.
The organizational structure of Barclays includes that the company operates in two different divisions like Barclays UK and international which is highly supported by the different services companies. Further, the company makes many corporate acquisitions involving south Western Bank as well as provincial.
Problem: The problem statement of Barclays mainly suggests the pricing and product structure with its cognitive limitations along with the behavioral partiality.
Opportunity: The open banking opportunities for Barclays are considered a huge phenomenon that helps to bring many potentials. It is one of the most beneficial aspects of dealing with the changing environment and considering the future aspects.
Vision: The main vision of Barclays Bank is to attain growth with the help of diversification in business and maximize the market presence and show the segments which are highly growing.
Mission: The mission statement of Barclays is to develop certain opportunities to increase as the company believes in working together that helps to raise people along with the society and colleagues.
External Analysis Pestle
Pestel analysis of Barclays PLC the company operates in a very dynamic environment around the complex characteristics which are characterized by the changes in regulatory an increase in the environment, changes in technology, devolvement of legal system the collective social aspect. The application of Pestle helps Barclays to analyze the external environment which can force the shape of a strategy and competitive environment along with the support of the strategy process of decision making (Vakhrusheva, Khaliev, and Pokhomchikova, 2021).
Political factors: High-level political stability gives a stable as well as friendly environment with some predictable growth in market trends. Increasing tensions and instability in the global environment of politics highly affect the growth of the gold industry as well as it also limits the opportunities for growth that are available to Barclays. Further, dynamic changes in the policies of the Government also considered is harmful to the performance of the business which ultimately increases the uncertainty. However, we need to understand the current market positions as well as trends and match the word with the government policies which lead to development in the industry.
Economic Factors: There is a direct influence on the organizational performance due to the economic growth of the country as it also provides growth opportunities to Barclays. Further, the performance of Barclays is highly influenced due to the host country’s government which spends a lot of money on infrastructure growth. In addition to this, the high rate of interest also influences the attitude regarding the investment as well as enhances the opportunity growth for Barclays. A major concern is about the fluctuation of the local currency is it highly affects the market condition of Barclays (Irfan, and et.al., 2020).
Social Factors: Is important for Barclays to understand the attitude of people regarding migration as it can affect the capability of business for bringing the international managers to the host country. Further, Barclays can be affected due to the power distance in the society which shows the acceptance of the inequality of income. Barclays needs to develop some local partnership learning about two social issues and norms which helps to manage the marketing strategies as per the unique culture. E-Commerce and social media also encourage the buying behavior of customers as it affects Barclays and they need to understand the buying behavior of customers so they need to increase the networking sites.
Technological Factors: With the technological advancement in the various sectors of industries the business model needs to be adaptive. Technology important role in the banking sector considering the various investment made by the competitors of Barclay’s micro and macro stage where the technology affect the value chain as well as the cost structure. However, the adoption of new techniques also lesser the development of new product life cycle. Thus, Barclays needs to develop its products rapidly with an increase in the range with diversity and needs to integrate the flexibility with the process of the value chain and create a healthy relationship with the other businesses as well (Dalirazar, and Sabzi, 2020).
Environmental Factors: In the present situation the banks not only provide financial services but also includes the aspect of sustainability. The increasing environmental pollution we compared the Barclays make adoption of recycling as well as the process of waste management practices.
Legal Factors: Barclays need to follow the labor health as well due to the strict regulations for ensuring the safety of laborers. However, Barclays need to consider the consumer protection laws for protecting the data as per the regulations which help to ensure compliance with the customers (Zahari, and Romli, 2019).
Internal analysis /McKinsey
It refers to the tool which helps analyze the organizational design of Barclays. The main aim of the implementation of this model effectiveness can be attended in business with the help of interaction with the major 7 elements.
Strategy- Barclays is required to create a balance between some short and saving of cost as well as protecting the competitive advantage of the business. The customers mainly perceive the products of Barclays and deliver the services for the proposition of value for money. It helps to gain a huge market share through price competition and Barclays need to avoid the cut in cost which can outcome in lesser products and delivery (Cox, Pinfield, and Rutter, 2018).
Structure- The current structure, as well as supply chain management of the company, is highly affected due to the pandemic. Barclays needs to be resilient and prepare itself for the diversification in the supply as well as the geopolitical that does not affect the long survival of the company. Further, Barclays is required to manage the organizational structure so that they need to make mall teams by enabling them to make appropriate decisions based on real-time growth.
System- Barclays mainly need to concentrate on the different areas like improvement in the internal processes including the customer relationship management, visualization of data, optimization of the web app, and risk management within the business. The company made to put some system for the employees were doing work from home so they can interact with them as well as the physical environment. Thus, it helps to increase the security of data in cybersecurity and overall productivity improvement (Pospisil, and Zavodna, 2022).
Staff- There are some steps which need to be taken by Barclays to make improvements in the human resources such as to make an inclusive environment for the new employees at the workplace as there are many people who are working from home so it is important to provide small group interactions along with the technological demonstrations for better understanding.
Skills- The training and development programs are to be billed by Barclays for the employees who are at remote locations. The company can also hire new people old people don't find it more challenging (Razmi, Mehrvar, and Hassani, 2020).
Style- At Barclays, the participative style of leadership is considered to be highly effective for achieving the vision and mission of the business. They can identify the present scenario of the bank as well as the leaders and managers highly skilled in putting effort into the workplace.
Shared values- Barclays also build a use business model which is based on its Vision and Mission and they need to change it for the shared value aspect. Further, the company needs to focus on sustainability and investors need to put more effort into the issues of government, as well as social (Dalirazar, and Sabzi, 2020).
Summary in SWOT
Barclays is one of the large banks in the UK as it also provides mortgage plans which are customer friendly as well as good returns on the capital expenditure. The SWOT analysis of Barclays helps to analyze strategies that can be used to develop as well as protect the strength of Barclays and eliminate the weakness which is considered as the internal factors of the business.
§ The execution of some new projects and best returns is considered a strength for the business.
§ High level of liquidity as well as a cash flow that helps to intensify the new projects (Salvarli, and Kayiskan, 2018).
§ Barclay’s major strength is based on their employee orientation program as they provide many facilities to the Employees with an effective system of training programs by the professionals. It helps the company as well as the employed to achieve growth and development in the areas of specialization.
§ The main weakness is demand forecasting due to the high contrast with the major rivalry of Barclays.
§ The rate of loyalty of Barclays is very low and it is mostly rated by eh customers it is considered as a big negative factor for business and it is required to change.
§ The web best banking most big opportunity for Barclays as there are some new friends over the online channels and the company e put some on the stage of the internet.
§ Barclays set some new goals and brand reviews based on the choice of customers due to the improvement in training programs.
§ Huge competition and a competitive environment are considered a threat to Barclays and it can affect the marketplace of the bank (Budur, 2020).
§ The changes in climate Barclays confront the fights in the year 2017 due to the third energy which needs to be removed from the natural gas and Hydraulic pressure.
Choose two to three lines of inquiry including leadership explanation of transformational comment on sources of power (French and Raven)
How do transformational leadership approaches affect the role of an individual at Barclays?
At Barclay’s, the transformational leader mainly encourages the other employees for achieving a high level of performance which can develop some attractive as well as exciting visions. There is an impact of transformational leadership on an individual at Barclays as it helps to build strong relationships and in the banking sector, it is important to develop strong relationships with the customers is a major part of the business (Siangchokyoo, Klinger, and Campion, 2020). Further, the relationships with the team members help to reduce the internal issues as well as it also developed some unique talents in the business. Impact on an individual includes the behavior of employees and their team members to achieve success as per the requirement of the bank.
In addition to this, the role of an individual can be affected by the transformation leadership at Barclays for identifying the vision of the company and to formulate some new ideas as per the requirement. It has a positive impact on the people who are around the employees and team members which is considered a positive aspect of managing effective communication at the workplace (Farahnak, and et.al., 2020). It helps an individual identify their goals and improve their self-moral and decrease their satisfaction levels of people. Further, transformational leadership helps to manage individual growth which has a direct relation with the growth of the business means the leaders at Barclays affect the development of the business. It is important to consider the transformational leadership at Barclays to a great extent as it has a huge impact on the role of an individual in the business.
In addition to this, the five sources of power are recognized by French and Raven including the referent, expert, legitimate, rewards, and coercive.
Referent – At Barclays, it mainly comes from the employers and it is essential to respect others where the employers of Barclays are considered as the referent power. They can influence others and it can be beneficial for the business.
Expert- The experts of Barclays are considered the major positive people who can deal with any situation for finding out the solutions (Siangchokyoo, Klinger, and Campion, 2020).
Legitimate-The employees of Barclays Bank have the formal right to make the demands and their wishes can be fulfilled by the system.
Rewards- At Barclays, the ability of an individual is enough to influence others by compensating for compliance.
Coercive- The power of coercion is a major task at Barclays and the higher level of employees have the power to give punishment for non-compliance at the workplace.
The impact of leadership style on followers and its effectiveness for running a business
The transformation leaders mainly build the team spirit with the help of enthusiasm along with the high standards of morals with optimization and providing a challenge for the followers. It helps to enhance the level of self-confidence of the followers and they can identify self-work towards the business improvement (Asbari, Santoso, and Prasetya, 2020). The transformation leaders also motivate their followers to change in their interests and create awareness regarding the acceptance of the aim as well as the objective of the group. Further, the superior performance of followers can be determined with the help of transform mission leaders and their values in the business of Barclays.
The significant, as well as positive relationship between the followers and leaders, helps to bring excellent outcomes for Barclays. As the banking sector highly recommend the management of relationship which is considered a positive thing for the development of business. The company needs to follow certain rules and regulations based on the transformation leadership and motivate the followers to give their full dedication to work. The relationship between followers and leaders is a major challenge as well as considered effective for the enhancement of interactive sessions among the group members (Sihite, Andika, and Prasetya, 2020). It can be effective in different situations as well with the help of conceptual elements such as the organizational structure of Barclays and how its facilities for the emergence and impact of the followers.
The transformation leaders at Barclays help to manage the good culture, giving intellectual stimulation along with the support, integrating some positive behavior, the building of vision, and providing some expectations related to the high performance of employees at the workplace. It will create a valuable impact on the performance of the business and encourage others to follow their leaders. However, people at Barclays are putting huge efforts to make positive outcomes for the strategies followed by the employees. Thus, the transformational leadership and followers at Barclays play a significant role in the development of the business as well as the marketplace (Asbari, 2020).
In this report, the major factor is the role of leadership in the business of Barclays.
- The company should make some strong relationships among the leaders with the help of using strong communication which helps to manage the services appropriately.
- The management of Barclays needs to focus on the significance of teamwork by using some tools and it is mainly considered with the help of communication. The employers of Barclays need to be more strategic towards their goal and pre-plan the activities for attaining the success.
- The leaders at Barclays need to be action-oriented but action is not only enough aspect, the employers are required to be concentrated on the outcomes as well so it is important to adopt some strategies for focusing on a specific goal.
- The good decision-making is an important part of the leadership qualities Barclay’s management needs to consider the qualitative decisions by the leaders and they need to make appropriate decisions for the welfare of the business.
- The management of Barclay’s needs to follow certain processes and procedures which are related to the significance of business. The business must use some effective leaders to deal with the authority which helps them to achieve the goal.
Action plan/change management / cost?
The action plan for the leadership management at Barclays mainly includes a way for developing the qualities of leadership as well as competencies in the present as well as future leaders.
The change of organizations like Barclays is considered a way to stay competitive and grow in the marketplace. Further, Barclay needs to implement Change management for surviving in the Marketplace and responding to the changes within the environment. However, many competitors introduced their new products and services along with the different government agencies who are using competitors so Barclays must take chance on the environmental changes and need to adopt the changes. Change is a part of business life so Barclays need to develop some regarding the threats which are affecting the business and be more competitive in the market.
From the above study, it can be concluded that the external environmental factors affecting the performance of Barclays in a positive as well as a negative manner it is important for the company to develop some positivity to create a growing environment with the change management in the market. However, transformational leadership helps deal with help dealing and plays an important role to create a positive environment and motivating the employees to put effort. Thus, there are certain strengths and weaknesses of Barclays Bank which affect its performance in a positive way dealing with the business activities.
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