Organizational Behavior Problem in Corporate America
Introduction.
Some organizational behavior problems I would like to explore in this paper are management style, job dissatisfaction, and organizational change and restructuring at National City Bank (based in Cleveland, Ohio) stemming from a recent change in its organizational culture. National City recently merged with PNC (Pittsburgh National Corporation) and with the merger came a change in the organizational culture at National City.
Before the merger, National City’s strategy for acquiring deposit dollars was one of aggressive product pushing, without consideration for the consumer real banking needs. Corporate pursued expansion efforts in new and existing markets by bearing down on frontline sales employees to literally force product on customers. Branch Sales Reps were required to sell a stated amount of products, and trained to lead customers to certain products by manipulating the conversations to the bank’s benefit.
Customers ended up with products that neither met their banking needs nor added value to the existing banking relationship. Amongst the consequences of such an organizational mindset were under-engaged transaction accounts, high account turnover, loss due to account abuse and fraud, loan default and ultimately, unfavorable customer perception.
With the Pittsburgh national bank (PNC) takeover, an organizational attitude overhaul has seen a shift from the product-pushing selling approach to a more consultative, relationship focused sales interaction. This shift has required the re-training of National City legacy employees (These are National City employees, who have been employees before the merger and work in a non-overlapping market. That is, a market where PNC did not do business yet) in techniques to broaden customer interaction to better understand the customer’s current and future goals and align them with products and services offered by the bank. In order for this mindset to be effective, sales goals are set in terms of total
Some organizational behavior problems I would like to explore in this paper are management style, job dissatisfaction, and organizational change and restructuring at National City Bank (based in Cleveland, Ohio) stemming from a recent change in its organizational culture. National City recently merged with PNC (Pittsburgh National Corporation) and with the merger came a change in the organizational culture at National City.
Before the merger, National City’s strategy for acquiring deposit dollars was one of aggressive product pushing, without consideration for the consumer real banking needs. Corporate pursued expansion efforts in new and existing markets by bearing down on frontline sales employees to literally force product on customers. Branch Sales Reps were required to sell a stated amount of products, and trained to lead customers to certain products by manipulating the conversations to the bank’s benefit.
Customers ended up with products that neither met their banking needs nor added value to the existing banking relationship. Amongst the consequences of such an organizational mindset were under-engaged transaction accounts, high account turnover, loss due to account abuse and fraud, loan default and ultimately, unfavorable customer perception.
With the Pittsburgh national bank (PNC) takeover, an organizational attitude overhaul has seen a shift from the product-pushing selling approach to a more consultative, relationship focused sales interaction. This shift has required the re-training of National City legacy employees (These are National City employees, who have been employees before the merger and work in a non-overlapping market. That is, a market where PNC did not do business yet) in techniques to broaden customer interaction to better understand the customer’s current and future goals and align them with products and services offered by the bank. In order for this mindset to be effective, sales goals are set in terms of total