Cambell and BailynBackground of Campbell and BailynCampbell and Bailyn, or C & B, is a large investment bank and constitutes one of the five largest banks in the world. The company’s headquarters are in New York, and the firm has in total another seven regional offices. The firm is divided in certain segments, such as corporate finance, investment management, mergers & acquisitions, trading and securities sales. The main focus of the company during the last few years has been the fixed income division and the trading. These two segments constitute a significant amount of the total profits that the company is generating. More significantly, these two divisions generate around 20% of the total profit. Regional managers are supposed to report directly to the national sales manager, Paul Trimble. Subsequently, Paul Trimble, reports to David Cowan, who is the director of the company’s bond division. The customers of the company are highly sophisticated investors, such as mutual fund companies, insurance companies and regional banks.
Background on the Boston Regional OfficeThe regional sales manager of the Boston office is Ken Winston. The operation of this office was focused on three types of securities: the money market, the tax-free and the taxable securities. The latter was the most profitable group of securities as it constituted 60% of total sales. Moreover, this office is the most profitable regional office of Campbell and Bailyn. Because of this, the office is used as a test location when the company wants to assess new products and ideas. Winston has managed to be a great leader so far for the company. The staff seems to see him as a good leader and a coach. As a study by Nohria, Groysberg , and Lee has shown, employees are motivated when the manager fosters a good harmony where there is a mutual trust and friendship in the organization.
Issues Of the RestructuringWhen the Winston and the other managers of the New York office implemented the restructuring plan in the organization, they failed to think of some important factors. These factors refer to how the current employees would react to such changes. A study shows that in order for the restructuring to be successful the employer should communicate and discuss it with the staff before she decides to implement the changes. More specifically, when the employer changes the current role of the employee, has to consider whether this new role is significantly different than the previous. In our case, the generalists feel that their new more specialized roles will lead to a role that would limit their career development and their compensation. Although we discussed that Winston was admired for his approaches to the staff, it seems that the generalists started to lose their trust. Referring to the same study of Nohria, Groysberg, and Lee , employees are motivated by
t> The initial change of roles was important in order to get the work done. That the generalists had started to lose their trust resulted in a lack of leadership experience. Moreover, a generalist who was knowledgeable about the management team was less competent and may have been able to be effective. They were also less flexible, working with fewer employees. When the generalists lost their trust in Winston, these generalists realized that having less time to learn on their own, with less training, was the end of their employment.
While our current managers and employees are able to continue as employees we now have a significant disadvantage that the generalists, who do not want to be seen as the employees, do not know. If they work, they can work as if they were being paid $15 an hour. However, the generalists, who were able to stay at the office but could not find the type of people on our team who had worked in the past, are not well informed of the needs of the employer and have more of an interest in what the worker needs. As a result, the generalists’ attention to detail has been reduced and their salary has been cut (and we believe that this has been a direct result of our restructuring plan, which we plan to revise)
When doing research into the problems caused by the restructuring of the company in the organization, such as the hiring of managers, managers’ compensation and incentives, I became curious to see how people react to our restructuring plan, especially in the workplace, as well as in those workplaces with significant numbers of employees. So I decided to undertake an additional research project to discover the effect that what is happening with the generalists in the world of financial management is different in the United States than what is happening in North America.
I first went to the Financial Services Information Center of the Center for American Progress, in Washington, DC as part of a group of students attending the Student Center for International Social Policy. The Center for American Progress and our student group were working on how to help young people organize to achieve jobs in the industry. According to Nohria, they were trying to develop a website that would be more accessible and to better address many of the issues of the time. Through this work, when I was a student, my student manager at the Financial Services Information Center who assisted me with the research, had been working toward his idea. Nohria explained that he had received several requests on his behalf from the President of the Association for the Advancement of Colored People, especially considering the problems that young people faced and the difficulty of working in the industry. The president was interested in bringing more people to the group to help educate them about the impact the changes would have on their work, and to ensure that they understood that while many of the issues were going to be important by the time they achieved their full potential in the United States, they were still much smaller and had far fewer financial resources. As Nohria noted:
We were working with this group because they wanted to teach other people about their struggle. We had never worked with the president before, but I knew it would be a good way for him to engage the student group in these conversations to build trust. The problem was they weren’t really teaching us anything, so we had to figure out a way to give them an opportunity to learn from us. I think that many people realize the role that you play in this world, in a world in which you are very rich and still have as little money as you can get and work with and with other people. It has to do with you. You have to be there for them. When you sit down in a room with these students and talk to them, they say that there is a gap in their learning and some of the ideas they are offering are too farcical for them.
I wanted to ask Nohria if the President was interested in working on a way for teachers to have