1.Why the internal manger can’t meet the requirement

1.Why was Goldman Sachs so dominant in the market during the 1990s?
Two key trends shaped the investment banking world in the late 1990s. The booming IPO markets were generating tremendous fees for banks; and the banking industry itself was rapidly consolidating. Customers were increasingly price-sensitive, and banks were betting that competitiveness correlated directly with scale and scope. Whitehead reinstated Monday morning Management Committee meetings to discuss leading strategic issues, and instituted as Goldman’s corporate code a list of fourteen business principles emphasizing teamwork, integrity, reputation, talent, and quality. Corzine and Paulson immediately reduced employee headcount and costs by slashing pay and bonuses, stabilizing the firm by the end of 1995. One important reason that Goldman can dominant in the market is the way they training their employee and develop the company culture. For develop the higher manager leadership abilities, Goldman are forcing on put their internal manger in circumstance that their can sufficiently present their talent, and if the internal manger can’t meet the requirement ,Goldman are not blame them. This kind of company culture can make employee work without much pressure and speak free. However , it also cause the higher management level didn’t give or change clear job description or work classificification. In the long term, employee who in the lower position is less motivation and energetic to work well, company culture is easy be accept by the employee but really encourage them to work harder.
2. Why is Goldman Sachs considering a more systematic approach to developing leaders?
Some Committee members proposed inviting elite academics and inspirational leaders to shoulder the bulk of the teaching load. Others countered that outside professors wouldn’t have the nuanced understanding of Goldman Sachs that they would need in order to really connect with participants, and that inspirational speakers would offer little more than entertainment. Many firms turned to unconventional sources to fill the staffing void, eventually hiring people with non-traditional business backgrounds. Goldman Sachs grew around 6,000 to 15,000 employees that included around 600 new MDs positions. Managers were interested in learning the apprenticeship dealing, but the expansion might be threatened the quality of present leaders and the consistency of the culture.  The increasingly diverse workforce challenged the strong cultures of professional service firms that historically had preferred to grow their own talent
3. What should the Leadership Development Advisory Committee include as key design features of Goldman’s new leadership development program?
As Goldman rapid expansion their business in the market , the management department think they need more talent employee come to work for them, and they need more systematics and formal approach to develop or training their leaders. According to the high growth rate in each department, put multiple department head work together is more complex, and more than that, it’s become more and more difficult to cultivate great quantities of leader to meet their requirements too. I read a article that present the four stage leadership development, I think it might can help to analysis Goldman’s case. The four stages are: mentorship program(mentor and mentee relationship that can help new –in people get into the position quickly), teamwork development program( leader from different department or people have diverse knowledge background are working together) , and senior leadership program( the personal leadership is developed in this stage ,and leaders can help company with their influent experiences). build cross-cultural leadership( this stage is aim to have employees feel confident in working with others in different cultures.)

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