Introduction of Sustainable Leadership In Banking Systems Assignment
Leading and Managing Organizational Resources
1. Challenges and opportunities in integrating leadership
1.1 Operations and financial management in the banking sector
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To understand the operational management in the banking sector, it is imperative to get a hold on the framework of the banking sectors' current involvement in the financial operation and their processes all over the world. For startup operation, management always looks after the dynamic complex competition in the market for economic models and initiatives to make sure cost reduction can be squeezed in continuously for creating new strategies and solutions for their respective banks. Also, considering the financial providers' competitive approaches, the answer to reveal the increasing nature of the banking sectors has implemented an analytical opportunity for insourcing and outsourcing management techniques for smoother operations (Berber & Aleksi?, 2019).
For the operations management to work profoundly, financial management of any given Bank needs to be on and reasonable assurance and accountability for efficiency. Financial management is one of the most critical cooperative development processes that strengthen the economic and financial market and their own creation companies' point of view. It is essential for engaging with global partners. For example, HSBC as a bank has been involved with international partners and more than 1600 active projects in the last decade with more than 22 billion U.S. dollars that collaborated to strengthen the banking power they have over their subsidiaries (Iqbal & Nurunnabi, 2018).
1.2 Information system for decision making in the Banking sector
The role of information systems in the banking sector can be defined by a set of procedures that organize reliable and relevant, organized data, which helps in a useful decision-making purpose for the banking sector. It is advantageous as HSBC can improve and restrain itself from exhausting the resources. Management of such an information system provides productivity and profitability without exhausting their organized workforce or increasing any risk of complex transformations of data collection.
The role of information system hence can be understood into three factors comprising of,
- It makes doing business with other personnel or companies much easier for the bank.
- It also develops the quality of service that they provide.
- The range of financial services spreads all across the globe and multiplies, which is beneficial for the bank.
The management of information systems is responsible for reports such as non-moving accounts and accounts having valence more than a particular amount and regular payment modes, which provides personal close-quarter management of activities into the financial arena to their customers. Also, the information system manages the designing improvements and business prospects to offer better services to the customers with an excellent necessary means of quality which enhances the internal standards and accuracy of the bank itself (Berber & Aleksi?, 2019).
1.3 Leadership for organizational change management in the banking sector
Leadership is a complex entity, especially in the banking sector, because it comprises financial and commercial management and understands the customer's requirement and creative expressions of communication into agency arrangements and ownership patterns. Here financial regulated, supervised associations are the highest focus of context. Hence the employees and the banking sector must be expressing their contrary regulations in such a way that the society and the business entity who are presenting themselves in front of the bank receive a similar number of emphasizing chances of identifying the willingness of creating a change and get rapidly evolving (Iqbal & Nurunnabi, 2018).
Transformational factors that perceive the transactional approach's dimension give leaders the tools to adopt new actions for multiple sports of techniques into the business environment. Leadership approaches need to be brave as they undertake more hai regulated guidelines as a firm's regulation and addressing risks can be changed through similarities and perspectives of fundamentals. A good leader in a banking sector would solve the problems other customers are managing and have management tools for running successful branches of the particular bank. This would give the governance structure and ownership scope to represent efficiency and top motivation core qualities.
2. Decision making and performance improvement
2.1 Leadership styles fit for Banking institutions
Certain leadership styles are more fit for banking institutions because their significant role in any organization would directly impact the financial management and the organization leadership that impacts the culture of the banking societies and sectors. Generally, there are three leadership styles in theory that the banking institutions follow: autocratic, democratic, and laissez-faire (Berber & Aleksi?, 2019).
Talking about the autocratic style of leadership in banking institutions, the leader has an advantage of their subordinates' authority and strength, which interest makes the authoritative leadership an advantage. First of all, productivity and creating expectation improves with singular decision making since the expectation becomes very clear for the bank as in a time of crisis. However, its disadvantage is that they have minimal addition or contributions of recognized perspectives (Prakash & Ghayas, 2019).
Similarly, the democratic business leadership style encourages the exchange of values and participation of different staff members to emphasize the importance of the team. This brings every possible expertise to the table and it indeed found an advantage that issues creativity and helps everyone grow in an environment of accomplishment and appreciation. For example in HSBC, according to a review, 63% of the employees were recognized to have manipulated the environment where they chose projects and discussions and issues according to their choice, which helps them to perform that particular project with much more expertise. The disadvantage of the democratic leadership style is that the quickly adapted functions are unaffordable for luxury and result from a lack of clarity as a lead role and responsibilities identify the employees rather than trying new grounds of problems to be solved (Iqbal & Nurunnabi, 2018).
2.2 Role of leadership in employee management in banking sectors
Companies, especially banking sectors, have a structure that competes with the other organizations in the market. They need development and performance changes to keep them apart from their rivals in the competition. The role of leadership in employee management in the banking sector is one of the most critical and strategic management systems. Implementing such effective leadership styles for employees is the heart and core of a banking sector as they engage impact and bring about worthwhile goals and competitive advantages on the engagement and productivity that the bank shows. Beyond this, the employee's motivation is essential as employee engagement is a point where the individual enthusiasm emotionally involved the leadership qualities and the conventional rewards into established parameters (Abuzaid, 2018).
The essential link between leadership and engagement specialists in the banking sector effectively impacts employees and leadership qualities. It is imperative that the leader has a transactional value that transforms every employee and their working capabilities and understands the need for space that the employee needs for growth (Iqbal & Nurunnabi, 2018).
2.3 Role of leadership in performance management in banking sector ( use Motivation theory by Maslow )
A very famous guide for such leadership performance management in the banking sector was introduced by Maslow. His motivation theory has a 5-level hierarchy of needs in the shape of a pyramid. According to the American psychologist Abraham Maslow back in 1943 tapered theorized that the subsequent psychological needs have a specific basis in any human's motivation and behavior. Maslow described those five categories of human needs only dictate what the wants are and what that behavior truly satisfies. This satisfaction comes from belongings, safety and psychological needs. Null psychological needs are given the topmost level in the intangible permanent which drives the bases of human survival through sufficient psychological needs and how the employees would be levelling themself mentally (Berber & Aleksi?, 2019).
As a leader, the second step is to understand that safety needs are needed because safety is one of the most basic needs of every human being. If the employer doesn't feel safe in their work environment, they would be happy or wouldn't perceive the amount of work they can perform. According to the theory, the third comes with belonging needs (Friends, families), a lower need. One employee must achieve a high kingship that should be appreciated, giving them a sense of additional membership. Fourth comes esteem needs. As an employee, it is essential that the higher requirements bring better steam and not ego-driven conditions because there is a difference between steam and we have driven elements that the leader needs to understand and accomplish between the employees and themselves. Maslow terms explicitly the difference between acknowledgement and respect and ego as three pillars of esteem. Still, the ego needs to be as far as possible from the independence of respect and acknowledgement (Abuzaid, 2018). And lastly, self-actualization is a need that describes the fulfillment of the filaments because it defines the talent and as a leader is paramount to understand the skill of a particular employee. it not only occupies the highest spot but it also gives them a stress-busting opportunity and gives the therapeutic actualization and fulfillment of potential.
3. Case studies on evolving Banking systems and Sustainable Leadership
As a result of its robust capital markets and banking sector, the U.S. economy has been dynamic, resilient and robust. As a go-between for saving and investing and a source of information and assistance with money management, banks are indispensable to society. At our finest, we are strong leaders. Families, businesses, communities, and local economies all benefit when banks are well-managed, and the people who run them see banking as a noble career. Stakeholder needs are at the heart of their work; risk is carefully managed, and their actions inspire our economic system. As CEO of Citizens Financial Group, Bruce Van Saun thinks this phenomenon resonates even more strongly amid these difficult economic times. One or two things concerning the financial industry's future have been made clear by the COVID-19 outbreak. Mobile banking transactions are becoming increasingly popular, possibly due to banks' desire to make online banking more convenient for their consumers during the pandemic. PPP (Paycheck Protection Program) loans have been entrusted to banks, which must now find ways to lower the borrowing costs of small businesses while also maintaining their own stability and ensuring that they are resilient enough to service businesses when demand shows signs of recovery. This is a tall order for a financial institution. Banks must have visionary and bold CEOs in order to succeed (Prakash & Ghayas, 2019).
In South Asian countries like India, many people keep an eye on and offer advice on the Indian banking system, particularly that of the public sector. The PSU system should be privatized. For example, in a PSU bank, a zonal/territory manager is in charge of business development while maintaining oversight of operational and credit risk events. Today, the supply chain is dispersed. The origination, processing, collection, and distribution of transactions are no longer restricted to the bank's computer systems and confines. In the past, the CEO's office used MIS and dashboards to keep an eye on the company's performance. According to an Economist study, leadership styles and nuances correlate about 15% to profitability.
In contrast, demographic parameters such as the CEO's age and gender have a negligible effect. Indian banks may not witness a dramatic movement in the demographics of their CEOs in the 2020s based on present trends. As a result, it is more likely that the CEOs will continue to come from banking and be in their late 50s or early 60s. This demographic profile is unlikely to be changed by lateral recruiters. Therefore, a leadership prescription must take this in mind (Iqbal & Nurunnabi, 2018).
Over the years, Bangladesh Bank has adopted significant regulatory and supervisory measures following international standards and compliance requirements. In the country's banking sector, guidelines and procedures for risk management and compliance are now in place for all major areas of banking, as are prudential and capital regulations. Bangladesh Bank's supervision arrangement has become more efficient because of technology. This platform has been built by the central bank by establishing rules and norms and other complementary measures. Efficacious risk management, internal controls, and customer interest protections focus on numerous recent projects. The central bank's response to the scheduled banks' technology-driven initiatives is encouraging. Bangladesh Bank amended and enforced circulars to improve corporate governance procedures in the banking industry in response to global development and BIS guidelines. Handouts on the selection of a board of directors are available. In 2013, the Federal Reserve released a comprehensive circular defining the structure and tasks of the board of directors of banking institutions. It was necessary to issue some relevant circulars in order to establish good board practices, including the prohibition of outsiders/non-members attending board meetings, the restriction on paying directors' honoraria and covering their travel expenses beyond what was stipulated in the benefits, and more. With regard to Internal Control and Compliance, the central bank established comprehensive recommendations in 2016. In addition, Bangladesh's commercial banks have been adhering to the Bangladesh Securities and Exchange Commission (BSEC) standards for listed corporations, which address a number of corporate governance and transparency issues. issues. Enforcing these new, more stringent, and universally recognized standards has had a noticeable impact on banking's governance structure (Prakash & Ghayas, 2019).
4. Effective utilization of organizational resources, systems and processes.
4.1 How leaders can use adequate resources management in banking sectors
The average human management system is very important for an effective working environment. And for other leaders, it is very important that they understand that their employees have an effective resource management system and understand efficient risk management with effective competitiveness. In banking sectors, the people business is one of the most highly rated distinguished to validations that the sector achieves with the custodial expectation of the customers. They need to have a value of closeness with their customers along with being reliable and socially responsible. This is where leaders need to train their employees in a certain way so that their quality of supply breaks the beneficial management and gives positive efficiency to the customers (Berber & Aleksi?, 2019).
But these are only possible if the leader requires the right people and manages them in an attempt of planning the required nationalization of required definition and recruitment.
4.2 Sustainable development goals in banking sectors through resource utilization
Sustainable development can only be reached once a Bank authorizes their customers to have activities that mark the transmission of financial management. No sustainable development goals in the banking sector can also come through resource utilization which grows the multi-product form into distinct and mobilization and informs the activity and the growth of the commercial needs. This is where the understanding factor of leadership comes into play as sustainable development of an entire natural community needs a concept of awareness and components such as financial inclusiveness (Prakash & Ghayas, 2019).
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