This will incorporate a current organization, current issues and how the company will face issues within the industry. With this in mind, I decided to do my term paper on a current, but very relative company which we have all heard a lot about, JP Morgan and Chase. JP Morgan and Chase has been in the news a lot lately for many different issues that have been taking place over the last couple years. In this paper, I will cover the current culture of JP Morgan’s leadership and management style and how they manage their employees on a daily basis. The current issue is the problem with organization.
The question in most minds is how does JP Morgan organization’s react to these issues and how are they managing it. Is their management style the issue in alignment with their overall culture and mission? What are the current outcomes and the results of their management actions in regards to their issues? After answering these questions, I will then give my summation on JP Morgan and whether they are taking the right approach with their handling of issues and what could they do differently in order to improve their situation. History of the Firm JPMorgan Chase & Co. I have found to be one of the oldest, but largest and well known financial institutions in the world. The firm can be dated all back to 1799 and was also chartered in New York City. The firm has been known to be the foundation for more than 1200 predecessor institutions. JP Morgan has been helping people to do first class business in a first way for over 200 years. The firm has showed that they are able to provide leadership during a financial crisis. The firm continues to contribute to business, society and world affairs through actions of wanted to be the best.
Corporate Culture Corporate culture is a term used to describe the collective beliefs, value systems, and processes that provide a company with its own unique flavor and attitude. Businesses of all sizes posses some type of corporate culture, where every company has a set of values and goals that help to define what the business is all about. Here are some examples of elements that go into creating and defining a corporate culture. To really understand culture, we have to get to the deepest level, the level of assumptions and beliefs.
Schein contends that underlying assumptions grow out of values, until they become taken for granted and drop out of awareness. As the definition above states, and as the cartoon illustrates, people may be unaware of or unable to articulate the beliefs and assumptions forming their deepest level of culture. JP Morgan Culture JP Morgan current culture is a environment where there goals is to reach their goals of being the best financial services firm in the world, JP Morgan is committed to creating an open, entrepreneurial and dynamic workplace that encourages each employee to contribute to the best of his or her ability.
The culture is driven by performance, partnership, meritocracy, inclusion and directness. JP Morang believes in working together and being best across all time zones, languages and borders. JP Morgan can only take place in an environment where people respect, value and support one another. A big part of JP Morgan stance on their leadership and management style would be because of their well known Business Principles plan that they implement within their the firm. Their Business principles are known to work magic in some sense.
It helps remind them that the most important thing they can do for employees is to build a healthy, vibrant company that treats people with respect and creates opportunity. Something I feel more company should try implementing. Their business principles are: “We strive to create a more inclusive work environment that draws on and develops the best talent. We want individuals of any race, nationality, gender, sexual orientation, or physical ability to have the opportunity to excel based on their performance and contribution to the firm.
Our clients appreciate that we understand their needs and act in their interest. Our focus on partnership, emphasis on trust and desire to constantly perform better also helps us attract like-minded colleagues from the broadest, most intelligent talent pool in the world. We hire people who are driven to perform, keep their word and hold themselves to the highest standards. Our culture is defined by our commitment to the success of our people and clients” (Principles guiding our, 2012). JP Morgan culture plays a large role in their success today along with their reputations.
They consider their employee their most valuable asset which was stated on JP Morgan home page. I sometime wonder do they really feel this way about their employee for real. JP Morgan expects their employees to act and think as if they were owners themselves, they offer people the ability to try and accomplish their full potential. Which I find to be wonderful if a company and truly want the best for their employees I feel like the company will be in a better place and able to do more in the world and really be the best.
So I really respect JP Morgan views on their employees. JP Morgan also prides their selves on diversity and values. JP strongly: Believes different perspective and experiences bring strength and creativity to our work, leading to the development of the best solutions for our clients. Diversity at J. P. Morgan ensures our ability to serve our international clientele (“J. p. morgan,” 2012). JP values are very outstanding and believable they feel like they perform to the highest of the high for their clients and other employees they will get the best out of them.
JP employ people work well in partnership and really enjoying doing so, so that they can ensure that their client are benefiting well they are handling business. If a client feels like they are benefiting nine times out of ten they will come back and tell a family or friend about the firm which is a win in their book. JP Morgan is very proud of the strong and open culture their culture of their firm. JP also believes that in order for them to continue to provide their clients with the smartest possible advice, they will have to continue to reflect the world in which we live and work today.
Transformational Leadership One may wonder what Transformational Leadership is. Transformational leadership would be the style that JP Morgan using to manage their employees within the context of the company. When developing the vision you have an assumption and style. An assumption is when a person will follow a person who inspires them. A person with vision and passion can achieve great things which I also believe very strongly. The way to get things done is by injecting enthusiasm and energy. “Working for a Transformational Leader can be a wonderful and uplifting experience.
I can see how it puts passion and energy into whatever they have to do. The leadership style shows you that they care about you and really want you to be successful. ” (“Transformational leadership,” 2002-2012) Developing the vision In order to understand everything lets continue to explain how you might develop a vision when dealing with the transformational leadership style. See transformational leaders seeks for people who don’t mind following as known to many people as a amazing leader. JP Morgan wanting to use this in heir firm I think and believe that this was a great idea but never the nevertheless: Transformational Leadership starts with the development of a vision, a view of the future that will excite and convert potential followers. This vision may be developed by the leader, by the senior team or may emerge from a broad series of discussions. The important factor is the leader buys into it, hook, line and sinker. (“Transformational leadership,” 2002-2012) In order to create followers, the Transformational Leader has to be very careful in creating trust, and their personal integrity is a critical part of the package that they are selling.
In effect, they are selling themselves as well as the vision. You must now sell the vision which will never stop well dealing with this leadership style: “Few people will immediately buy into a radical vision, and some will join the show much more slowly than others. The Transformational Leader thus takes every opportunity and will use whatever works to convince others to climb on board the bandwagon (“Transformational leadership,” 2002-2012). Finding the way forwards “In parallel with the selling activity is seeking the way forward.
Some Transformational Leaders know the way, and simply want others to follow them. Others do not have a ready strategy, but will happily lead the exploration of possible routes to the promised Land. The route forwards may not be obvious and may not be plotted in details, but with a clear vision, the direction will always be known. Thus finding the way forward can be an ongoing process of course correction and the Transformational Leader will accept that there will be failures and blind canyons along the way.
As long as they feel progress is being made, they will be happy (“Transformational leadership,” 2002-2012). Leading the charge Reading a little more it says that transformational leaders also tend to see the big picture but never the details at first. Meaning that they must have people to take care of this level of information that will be able to see the details or the leadership style will not be successful. It comes to a point where the employees that are being trained will seek to transform. If not when the firm does not need transforming and employees are good to go, hen a real leader will be frustrated. Then they will come into their own and can be personally responsible for saving entire companies. Now we can see: The final stage is to remain up-front and central during the action. Transformational Leaders are always visible and will stand up to be counted rather than hide behind their troops. They show by their attitudes and actions how everyone else should behave. They also make continued efforts to motivate and rally their followers, constantly doing the rounds, listening, soothing and enthusing.
It is their unswerving commitment as much as anything else that keeps people going, particularly through the darker times when some may question whether the vision can ever be achieved. If the people do not believe that they can succeed, then their efforts will flag. The Transformational Leader seeks to infect and reinfect their followers with a high level of commitment to the vision. One of the methods the Transformational Leader uses to sustain motivation is in the use of ceremonies, rituals and other cultural symbolism. Small changes get big hurrahs, pumping up their significance as indicators of real progress.
Overall, they balance their attention between action that creates progress and the mental state of their followers. Perhaps more than other approaches, they are people-oriented and believe that success comes first and last through deep and sustained commitment (“Transformational leadership,” 2002-2012). Current Issues Ethics Issues After looking online I found that JP Morgan is in fact going through many different issues dealing with Management issue, Sustainability issue, regulatory issue, societal issues, and competitive issues.
A current issue that I found on Forbes is stated that “CEO Jamie Dimon first learned of JPMorgan Chase’s possible $5 billion loss? It came, not from listening to his high-paid risk managers, but from reading a page one article of the Wall Street Journal on April 6, 2012, many months after the firm was getting deeper and deeper into a hole. ” (Denning, 2012) After reading that statement I really don’t believe that Jamie didn’t know what was going. What is JP Morgan going to do about how are they going to fix this people for their stockholders and other people that are investing in Jamie’s company.
Sustainability Issues According to Webster sustainability is when you’re dealing with capacity which you will endure: For humans, sustainability is the long-term maintenance of responsibility, which has environmental, economic, and social dimensions, and encompasses the concept of stewardship, the responsible management of resource use (“Sustainability,” 2012). The impact on the environment from financial services operations may be modest compared to some more resource and carbon intensive industries such as power generation, heavy manufacturing or mining.
JPMorgan has almost more than: 70 million square feet of space, including more than 5,000 bank branches in the U. S. On average, each day there operations use more than 20,000 cubic meters of water and result in the emission of more than 3,000 metric tons of greenhouse gases not including air travel or employee commuting (“Sustainability in our,” 2012). Fixing the Issue JP Morgan has notice that there has been a large problem with Sustainability Issues on their part and they really wanted to do something about it to fix the problem.
JP started a Green program and practicing greener building which would bring the total number of branches “built with smart and responsible construction practices to almost 200 at year-end 2010, including 13 LEED certified retail branches”(“Sustainability in our,” 2012). JP Building Green program, which is based on the LEED system, it will cover the more important areas for construction to much that it is energy efficiency, construction and finish materials, indoor environment and water conservation. They also have been helping out with reducing greenhouse gas emissions.
They also really like their suppliers can help out also what a way to bring others in. Societal Issue JP Morgan has been helping assist their client with SRI/ESG for the past 10 years. Jp Morgan is more than willing to help build a vibrant community. They would like to push SRI into the mainstream of their firm. They have also sign up with United Nations Principles for responsible investment which is a great policy. They feel like these projects are aim to help develop the next generation. Culture & Mission alignment JP Morgan management styles of issues are in alignment with their oval culture and mission.
JP Morgan current culture is an environment where as an employee you can reach for your goals of being the best financial services firm in nations. JP using the Transformational leadership style which I do believe it works hand in hand with their mission and is best for the firm. When using this leadership style you can’t help but get the best result when dealing with people when you’re working for a bank. Summation I feel, JP Morgan is in fact taking the right approach with how they are handling their issues. I can only see success coming from what they are trying to do.
I hope they will keep up with what they putting out to the public, as in how they are solving their issues. I would have never thought that JP Morgan would use the Transformational Leadership method. If I had to run my own company I would us this method also. If I could do anything differently in order to improve the many different situations dealing with JP Morgan, I would think about using bits and pieces from other methods. They might be able to help out in some kind way. I would also change the way JP Morgan releases company information out.
I feel like they need to be more discrete and honest when it comes to disappearing money. They also need a new PR team that knows how to do proper damage control. References J. p. morgan. (2012). Retrieved from http://careers. jpmorgan. com/experienced/jpmorgan/jobs/responsible/culture Transformational leadership. (2002-2012). Retrieved from http://changingminds. org/disciplines/leadership/styles/transformational_leadership. htm Denning, S. (2012, May 18). The risky risk management practices at jpmorgan chase. Retrieved from http://www. forbes. com/sites/stevedenning/2012/05/18/the-risky-risk-management-strategy-at-jpmorganchase/