Executive Summary
This paper explores the complex organizational behavior and management issues the Western Canada Savings Bank (WCSB) has to deal with. Our investigation identifies three main problems: a struggle for political power within top management, opposition to significant organizational changes, and declining staff morale and motivation.
The main source of political unrest and power struggles within WCSB’s senior management is the disagreement between CEO Sonum Halgard and COO Sung Park. Their strategic visions are not aligned, which indicates a conflict between their own and the organization’s objectives and is the root of their conflict. Adopting initiatives for clear communication that prioritizes open dialogue, openness, and trust-building is the suggested course of action. This strategy is in line with the framework proposed by French and Raven, with a focus on referent power and its importance in overcoming resistance to change initiatives. By creating open lines of communication, WCSB will be able to resolve power disparities and create the conditions for more cooperative decision-making.
WCSB encounters resistance from its workforce regarding major structural and cultural changes in the business. We suggest using Change Champions and encouraging Employee Involvement to lessen this resistance. Identifying and preparing change agents and including workers in decision-making empower workers and foster a collaborative and flexible culture. Kurt Lewin’s change management paradigm is used in this method, which focuses on the “unfreezing” phase, which deals with initial opposition to change.
Finally, we talk about the falling morale and motivation of employees. In response to these worries, we advise implementing a Recognition and Rewards Program. This strategy, which is based on Herzberg’s Two-Factor Theory, rewards and recognizes employee efforts in order to address motivational factors directly. The advantages of having a motivated and engaged staff outweigh the initiative’s operating expenses.
Introduction
We are looking into Western Canada Savings Bank (WCSB), concentrating on several important organizational behavior and management issues. These issues include politics and power, organizational transformation, and morale and motivation among staff members. Power battles and political disagreements are plaguing WCSB’s upper management, particularly between CEO Sonum Halgard and COO Sung Park, who has repeatedly resisted changes in strategy that Halgard has proposed. Because of the tremendous influence this power battle has on the organization’s decision-making procedures and results, it is necessary to investigate the foundations of power and politics as they apply to this particular setting.
Along with these big organizational changes, the WCSB is also focusing more on mobile banking operations and moving away from the traditional siloed branch structure. The main barriers to WCSB’s transition include staff worries about job security, a general lack of clarity about these changes, and a fear of the unknown. It is necessary to investigate organizational change theories, especially Lewin’s three-step model, to comprehend and resolve these problems.
Inadequate communication tactics and worries about job security during this transitional phase can contribute to the falling motivation and morale of employees. During change initiatives, Herzberg’s Two-Factor Theory offers insightful guidance on boosting motivation and morale. Thus, the purpose of our report is to evaluate these problems, pinpoint viable fixes, and offer suggestions to WCSB’s management.
In this paper, we aim to provide a thorough analysis of these issues along with informed recommendations that WCSB can put into practice to improve its management and organizational behavior. We will offer a comprehensive strategy to address WCSB’s challenges in these areas by drawing on theories and models pertinent to these problems. Our goal is to help WCSB successfully navigate its current transitional phase and emerge as a stronger, more adaptable organization through our research and recommendations.
Politics and Power Issue
Within its senior management, the Western Canada Savings Bank (WCSB) case raises important power and political issues. The fundamental cause of this problem is a widespread struggle among senior decision-makers for influence and control, as well as a need for alignment. The main player in this power battle is Sonum Halgard, the CEO of WCSB, and Sung Park, the COO, who is fiercely against the strategic changes that Halgard has proposed. The organization’s ability to make decisions and adjust to the shifting financial landscape could be hampered by this dispute.
Causes: Numerous elements might be identified as specific causes of this power and politics dilemma at WCSB. First, power battles arise when top decision-makers need to align their aims and methods. Sung Park is against the major strategic changes that Sonum Halgard wants to implement, such as doing away with the conventional segregated branch organization. Divergent opinions on the organization’s future are the cause of this resistance. Second, the struggle for power and influence at WCSB emphasizes how intricate this problem is. According to French and Raven’s concept, it could involve several forms of power, such as legitimate, reward, coercive, referent, and expert power. The main worry is that staff members or executives can only support change if they respect or identify with the person spearheading it.
Applicable Theory: We refer to pertinent ideas that can offer direction and insights to address this problem of politics and power. There are five primary categories of power according to French and Raven’s paradigm for understanding politics and power in organizations: referent, legitimate, reward, coercive, and expert. Referent power is a very relevant idea for discussing the opposition and resistance at WCSB (Kovach, 2020). According to this notion, people may oppose change if they do not respect or relate to the change-initiating leader. As CEO, Sonum Halgard must overcome resistance and push for changes inside WCSB by utilizing political and moral measures. To get support and handle this power struggle well, it is necessary to have a solid rapport with staff members and other executives.
Alternative solutions: To address the issue of politics and power at WCSB, several potential options must be investigated, each with pros and cons.
The first potential solution is Conflict Resolution Mediation, in which Sonum Halgard and Sung Park would engage in productive dialogue and talks with the assistance of an outside mediator. This strategy has the benefit of lowering hostilities and encouraging collaboration between the opposing parties (Goldberg et al., 2020). By establishing a collaborative decision-making framework, the mediation procedure may result in a more amicable settlement of their disagreements. It is crucial to remember that this strategy could be expensive and time-consuming.
Giving Sonum Halgard and Sung Park leadership training is an additional option. Through improved negotiating and conflict resolution techniques, they will be more equipped to resolve conflicts internally and with the help of others (Maes & Van Hootegem, 2022). This solution’s ability to prepare executives to handle potential problems in the future within the company is one of its main advantages. It is important to note, nevertheless, that receiving leadership training does not ensure a quick fix and that using the newly learned techniques may take some time.
The restructuring of WCSB’s decision-making structure is the third option. In order to accomplish this, the decision-making process must be reorganized to involve a larger group of senior managers and stakeholders, hence lowering the concentration of power at the top. This strategy has the benefit of guaranteeing a more varied decision-making process by embracing a greater variety of viewpoints and insights. The drawback, though, could be that the extra levels of permission and consultation could cause the decision-making process to move more slowly.
Finally, Clear Communication Initiatives offer another strategy to deal with the problem of politics and power. The foundation of this method is creating open lines of communication between managers and staff that allow for the sharing of information, addressing of problems, and continuance of the conversation. This strategy’s ability to increase trust and lessen employee resistance is one of its main benefits (Rahim, 2023). It is important to recognize, though, that putting clear communication strategies into action could necessitate a dramatic change in the organization’s culture, which would affect how decisions and information are shared.
Preferred Solution: Clear communication activities are our chosen course of action to address the issue of power and politics at WCSB. This strategy concentrates on enhancing channels of communication in order to promote openness, confidence, and a common understanding among stakeholders, staff members, and senior management. Effective important decision-making is ensured by clear communication, which also promotes candid feedback and problem-solving.
An essential component of good organizational behavior and leadership is clear communication. WCSB can resolve the power struggle by improving openness and trust and lowering uncertainty among staff members by cultivating an environment of open communication. This approach aligns with Herzberg’s Two-Factor Theory (Alrawahi et al., 2020), which highlights the significance of hygiene aspects in boosting employee motivation and morale during organizational transformation, such as job security and open communication.
In addition to addressing the problem of power and politics, WCSB may foster more harmonious decision-making and the effective implementation of organizational reforms by encouraging open and transparent communication. This strategy maintains the organization’s progress toward becoming more creative and adaptable while acknowledging the concerns voiced by staff members and offering a framework for amicably resolving disputes.
Organizational Change
The bank’s leadership, led by CEO Sonum Halgard, has started a major organizational reform that includes a move away from the traditional walled branch structure, a reduction in senior management roles, and a move toward a corporate culture that is more performance-driven. Employee opposition and mistrust, especially from top management, surround this shift, nevertheless. There is a real dread of the unknown, worries about job security, and uncertainty about how these changes affect their day-to-day tasks and responsibilities. Employees’ concerns about their futures in the organization and their sense of powerlessness over the transition process are the main causes of their resistance to change. This problem could make it more difficult for WCSB to implement its new plan successfully.
Relevant Theory: It is essential to use well-established change management theories to handle organizational change resistance. Kurt Lewin’s three-step model of change—unfreezing, altering, and refreezing—is among the most pertinent theories (Tracy, 2020). During the “unfreezing” phase, people realize they need to change, although they could resist it. This stage is consistent with the initial hesitancy and doubt seen at WCSB. Using tactics that encourage candid conversation, participation, and the creation of a common vision is essential to navigating this stage successfully. The company can help employees prepare for the upcoming changes by addressing their worries and anxieties.
Alternative Solutions: Several different approaches, each having pros and downsides of their own, might be taken into consideration to manage the opposition to organizational changes at WCSB. These include:
Change Champions and Employee Involvement: Using Change Champions and Promoting Employee Involvement is the recommended approach for organizing change implementation and management at WCSB. Change advocates can greatly aid peer guidance and influence those who welcome and support organizational change. WCSB may guarantee that staff members have dependable advocates who can assist them in comprehending the modifications, adjusting to new procedures, and addressing their problems by selecting and educating change champions (Errida & Lotfi, 2021). Employee motivation and morale can also be increased by including them in decision-making processes, particularly when those decisions directly impact their roles. This fosters a sense of ownership among staff members. This method increases employee empowerment and trust and cultivates a collaborative and flexible culture. Employee involvement and change champions can make a big difference in the success of organizational change initiatives by lowering opposition and guaranteeing a more seamless transition.
On the other hand, finding, preparing, and assisting change champions costs much money. Employee participation in decision-making may also cause a delay in the implementation of improvements. However, the advantages of increased motivation, staff morale, and effective change adoption exceed the disadvantages.
Establishing transparent communication initiatives that address issues, provide information, and keep lines of communication open between managers and staff is another possible course of action. This strategy seeks to increase trust, lessen opposition, and guarantee that staff members know about the changes. Open lines of communication also give staff members a forum to express their concerns and hear back from management. Although this strategy can help allay employee fears and greatly increase their comprehension of the changes, it necessitates a culture transformation inside the company. It could take time to build and requires leadership to be committed to openness and transparency.
Leadership Development: Another option would be to give Sonum Halgard and Sung Park leadership development training. The main goals of this training would be to improve their negotiation and dispute resolution abilities. Fostering a more harmonious work environment can be achieved by enabling leaders to resolve conflicts more skillfully without the need for outside intervention (Mansaray, 2019). If successful, this strategy may be less expensive and more time-efficient than outside mediation. However, it requires the leaders’ desire to engage and learn, and it might take time to provide an immediate fix.
Preferred Solution: Using Change Champions and Promoting Employee Involvement is the best strategy for WCSB to deal with the opposition to organizational changes. The objectives of this approach are to facilitate a more seamless transition, lessen opposition, and empower staff. Champions of change, by their advocacy role, can foster comprehension and approval among their colleagues (Barrow et al., 2022). Employee participation in decision-making also fosters a sense of accountability and ownership. Kurt Lewin’s change management model, especially the “unfreezing” phase, aligns with this strategy since it addresses issues and fosters employee excitement and a sense of shared responsibility.
Through utilizing change champions and employee involvement, WCSB can proficiently manage the obstacles linked to organizational transformation. The advantages of increased staff morale, motivation, and effective change acceptance greatly exceed the disadvantages, even while it requires an investment in finding and training change champions, and employee involvement may cause the implementation timeframe to run longer. This strategy fits WCSB’s objective to retain employee dedication and happiness while transforming the company into more inventive and nimble.
Employee Morale and Motivation
The declining morale and motivation of Western Canada Savings Bank (WCSB) employees is a serious problem. The general well-being and job satisfaction of the organization’s employees are declining. Employee involvement and excitement have noticeably decreased, which indicates this problem. Concerns about job security and the apparent effects of continuous organizational changes are troubling employees. Worries about future employment prospects and work insecurity have exacerbated this problem. The lack of attempts to improve employee involvement and communication has also made the drop in employee morale at WCSB even worse. This issue must be resolved to keep the WCSB staff engaged and productive throughout the organizational transition.
Relevant Theory: In order to address the problem of declining employee morale, Herzberg’s Two-Factor Theory offers insightful guidance. According to this theory, there are two primary groups of elements that affect job satisfaction and dissatisfaction: hygiene factors and motivational factors. Job happiness is influenced by motivator elements like accountability, growth potential, and acknowledgment (Alrawahi et al., 2020). Job stability and working environment are hygiene elements that may reduce unhappiness but do not always result in contentment. In order to address the morale issue at WCSB, this theory must be understood and used.
Alternative Solutions: To raise employee morale, several different approaches can be taken into consideration, each with pros and cons:
Recognition and Rewards Program: By praising and thanking staff members for their contributions, a thorough Recognition and Rewards Program can raise spirits. This strategy is beneficial since it specifically addresses the motivational aspects of Herzberg’s theory. It may help to create a motivating and acknowledging culture. It could result in higher operating expenses.
Employment Security Assurance: By offering Job Security Assurance, worries about employment stability can be allayed. Enhancing job satisfaction can be achieved by assuring employees that their positions will remain secure amid organizational changes. This strategy is consistent with the hygienic elements mentioned in Herzberg’s thesis. Offering job security, however, could be difficult in the face of big changes.
Employee Feedback Mechanism: Creating a platform for staff members to express their opinions and make recommendations helps boost morale. This strategy encourages candid dialogue and a feeling of participation. To ensure that employee feedback is truly acknowledged and considered, however, it may be necessary to implement considerable structural and cultural adjustments.
Professional Development Opportunities: By giving staff members chances for improvement and progress, providing professional development opportunities can boost morale. This strategy is consistent with Herzberg’s idea of motivators. Employee engagement and empowerment are maintained. However, it might necessitate funding for programs for training and development.
Preferred Solution: Establishing a Recognition and Rewards Program is WCSB’s best bet for raising staff morale. By focusing on the motivational variables that directly affect job satisfaction, this tactic is consistent with Herzberg’s Two-Factor Theory. Acknowledging and thanking staff members for their contributions helps foster a motivated and appreciative culture within the company.
The advantages of establishing a recognition and rewards program far outweigh the disadvantages, even though it might result in higher operating expenses. It raises spirits and makes workers more engaged and driven, both important amid the ongoing organizational changes. By ensuring that workers feel valued and appreciated for their contributions, this strategy eventually promotes a positive work atmosphere.
Conclusion
Important organizational behavior and management issues have been found and addressed during our examination of the Western Canada Savings Bank (WCSB) instance. These include disputes over politics and power, problems with organizational reform, and dwindling staff morale and enthusiasm. WCSB’s attempts to adjust to a changing financial landscape have prioritized these difficulties, with crucial roles being played by CEO Sonum Halgard and COO Sung Park.
We have suggested implementing initiatives for transparent communication in response to the problem of power and politics. Improving communication channels, promoting transparency, and establishing a trusting environment are critical measures to address internal conflict and guarantee a more efficient decision-making procedure at WCSB.
Our recommended course of action for organizational change is to use Change Champions and Encourage Employee Involvement. Through the identification and training of change advocates and employee participation in decision-making, WCSB may effectively surmount resistance and promote a more seamless transition.
We advise implementing a Recognition and Rewards Program in response to declining staff morale and motivation. Maintaining a motivated and engaged workforce amid organizational changes requires fostering a culture of appreciation and motivation, which may be achieved through recognizing and rewarding employee achievements.
Our paper presents a thorough analysis of the difficulties WCSB is facing and gives well-reasoned suggestions specifically designed to deal with these problems. When these ideas are implemented with diligence, WCSB will be better equipped to successfully manage this transitional era, become a more creative and flexible company, and prosper in the quickly changing financial landscape.
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