Baring Collapse Case

Topics: Leadership, Organizational studies, Management Pages: 3 (770 words) Published: September 8, 2013
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The Baring Collapse (A):
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Breakdowns in organisational culture & Management

MNO1101: Management and Organisation – Individual Case Analysis

1.Baring Securities Ltd. (BSL) can be classified to be an Adhocracy organization, using the Competing-Values Model of Culture. This is evident as the drive to produce economics result was strongly emphasized value as it was facilitated with “generous bonus scheme.” Furthermore, dynamism appeared to be the dominant attribute of the organization with the “bustle, informal atmosphere in the trading room”. Additionally, this value also concurred with Health’s leadership style, as he is consummate salesman and charismatic leaders. These culture values were manifested from a wide range of artifacts, such as the nature of the business, the employees and the leader himself. Firstly, BSL’s business nature has short time frame, which requires brokers to work in a fast pace with decision being made almost every minute. Thus, organizational agility will inevitably be favored. Secondly, employee selection process favoured goal-oriented traits to certified expertise; it is inescapable that BSL employees were more committed to produce result. Naturally, BSL’s culture would be result-oriented and competitive. The most important artifact is the Health’s leadership style. He is consummate salesman, an expansionist and charismatic leader; on top of that, he is an autocratic leader, whose decision has large influence on the company. This explained the competitive and goal-oriented environment in the company. 2. The reasons attributed to Baring’s collapse distributed through various aspect of organizational management. Firstly, the organization’s culture overemphasized on result. It is evident as little control was put on Leeson as long as he made profit, which allowed prolonged his fraudulent activities. Baring’s overemphasis on...

Bibliography: Researc Associate Ms. Alicia Bernard. (1995). The Barings Collapse (A): Breakdowns in organisational culture and management. IMD international.
Bateman, T. S. (2011). Management: Leading & Collaborating in a Competitive World (12th ed.). McGraw - Hill.
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