Harvard David Johnson Case Analysis

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The Cultural web diagnoses by Johnson showed clearly the corporate culture problems from 6 different perspectives which the banking industry is facing

Stories: The banking sector has a negative reputation based on the intensive competitiveness and high expectations towards to the employees. It filled with talented, smart and ambitious high-flyer workers but as the stressful, money making, results and performance oriented nature of the banking jobs, they have lost their human, emotional side towards their employer, colleagues and clients. “The bank can feel like a robotic, soulless place.” “The people there are so smart, analytically I mean, that they have lost sight of what normal people think and feel.” In this work environment not all of the people can bear these …show more content…

The bank’s internal management often doesn’t know what’s going on in the trading, with the clients. “The real threat is not a bank’s management hiding things from us, it’s the management not knowing themselves what the risks are, either because nobody realises it or because some people are keeping it from their bosses.”

“The biggest problem in banking is measuring performance. People are faced with immense temptations to take risks with their bank’s capital or reputation, knowing that if they don’t act on them, their colleague across the desk will. The problem with today’s banks is that those who accept the risks are no longer those who get stuck with the bill.”

Power Structure: The firing has a harsh culture in the banks, who can’t perform well, will be fired, they don’t have any second chance. („Every year, prestigious banks such as Goldman Sachs and JP Morgan routinely fire their least profitable staff”, “When you can be out of the door in five minutes, your horizon becomes five

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