Organization Behavior Issues For A Particular Organization.

4229 words - 17 pages

Organizational BehaviorsLack of proper communication and feedback from leadersPrepared ByVinod Krishnan, ID # 90434Western International UniversityMGT 340/Organizational BehaviorInstructor: GEORGE STRAGALAS IIITABLE OF CONTENTSThe Issue1Industry Context1Organization's Overview4Organization's Hierarchy Structure5Leadership Hierarchy Chart6American Express's current strategy in historical context7External Environment Assessment8Internal Environment Assessment9Strategy Evaluation10Recommendations10References12APPENDIX I13APPENDIX II14The IssueDifferent leaders have different leadership styles and different communication styles. The lengthy lateral hierarchy leadership structure of American Express makes it even more complicated for the employees to get proper communication and feedback from their top leaders. Decisions affecting the employees are taken at different hierarchy level and are not properly communicated to the affected employees.The lack of proper communication from the top leaders of the company and the individual departments to the employees of the company has been one of the reason for lesser job satisfaction and that in turn accounts for increased turnover and absenteeism and reduced productivity.An overview of American Express's history, coupled with a review of its organization hierarchy structure and its leadership style to a more balanced leadership style is shared.Finally, an external and an internal environment assessment of the leaderships and communication styles needed to succeed in the credit card industry is analyzed to offer an evaluation and recommendation for advancement in the credit card industry.Industry ContextIn the early 1850's travel was done by horseback, carriages, wagons, trains and by steam ships. Transportation of small packages of gold, silver was proving to be very expensive. The transportation of packages from one end to the other end of the United States was profitable.American Express was founded on March 18, 1850 at a mansion house in Buffalo, New York; it was no means a start-up company in the modern sense. Three men who established American Express- Henry Wells, William G Fargo, and John Butterfield were old hands in the Express business. Each was engaged in his own Express enterprise, and the three enterprises were competing for business along the routes in New York. As the railroads grew, these men could see the frontier and the raise of demand for Express services. They were not just at the right place at the right time, but they were shrewd businessmen who could backup their ambitions with the capital necessary to achieve some degree of scale in Express business. The three enterprises merged to form American Express.Initially, American Express was not in the market of financial services though most of its business partners were banks. Wells partnered with the banks to introduce American Expresses money order. The "Money Order" launched by American Express in the year 1882 received tremendous...

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