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 dollars raised instead of total widgets moved. The focus has become quality relationships. Problem.
Overall, the new organizational culture should logically help correct the perception of National City by some of its unsatisfied customers since it would foster quality relationships between its customers and the bank. However, the sudden change in culture has met resistance from legacy employees who have been accustomed to doing their jobs a certain way and that way only. This resistance has led to gross job dissatisfaction among the bank’s legacy employees. In writing this paper, I have had to think through the issue at hand and draw inferences through analysis, while applying organizational behavior concepts as studied in class. In thinking through this situation at hand, it is important to trace back the true trigger of the mindset that the employees now hold.
With National City’s acquisitions comes a whole cultural change. A change that is felt by not only bank customers, who have to grapple with the reorientation of service and other technicalities like account and product transitioning, but also affected by this change is the bank employees. When the announcement was made on December 2008 of the PNC merger, the general mood of the legacy employees was one of indifference, especially in non-overlapping markets like Chicago and Detroit. Legacy employees had no prior knowledge of either the merger or the prevailing culture of PNC. National City intranet polls revealed that 78% of employees in Chicago have never heard of PNC before the merger, and 88% of National City customer in Detroit and Chicago combined had no idea of PNC as a financial corporation. By January 2009, the transition process had been broken into 4 (four) waves, with over-lapping markets like Cleveland and Pittsburgh, being the first to convert. National City employees in these markets had a little less time to adjust to the flood of change they were exposed to and their...
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