Poor Performance of Banking and Insurance-Samples for Students

Question: Discuss about the Poor Perfomance of Banking and Insurance Companies. Answer: Introduction Banking and insurance companies are very competitive service industries organizations; this is where changes in the market occasionally happen as it occurs in the world. The bank organization of which I have been a client for several years is having a series of predicaments such as its rise of customer complaints due to the poor services that have greatly increased and downfall in the market shares due to continuous losing events. It is one of the oldest banking industries in Australia and has been able to survive in the service industry till the recent times; it has been overwhelmed by occasional current change occurring in the economic world (Menor Roth, 2008). The organization poor performance indicators The main cause of the poor performance is due to the poor and unresponsive management planning and poor customer relation and satisfaction. The most evident results reveal that poor management and lack of customer satisfaction are continuous customer complaints without changes, mismanagement of funds and resources thus leading to withdrawals of investors due to fear of loss. Also, the bank has faced some other challenges like losing of its clients to other banks, and a high number of employees lay down due to the shut down of its various branches. The organization management has failed due to various reasons such as poor planning and timeworn methods of management, poor resources management leading to the growth of debts and scarring of the investors due to mismanagement of funds. Poor staff management and coordination of staff or employees, and poor problem-solving techniques that have led to piling up of challenges in operation of the system (Belkhir, 2009). The information management within the organizational structure and to the clients also has been a great problem in the organization this has led to poor customer relation and satisfaction. The poor or bad customer relation has been contributed to various causes such as poor marketing strategies that can be able to compete effectively with the competitors thus causing a lot of loss of customers. The banking system has made tremendous changes in the technology advancements; some of the changes are customer ability to access information and services online or even able to control over their accounts via mobile phones. The organization has been too slow or unable to move with the technological advancements: this has given the competitors much more advantage in the marketing of their businesses. Apart from the disability of bank to cope with technology changes the banking system has been unable to move with the current quality of customer expectations thus leading to poor customer satisfa ction (Verhoef et al., 2009). Main matters to be considered According to Kumar, (2010) he argues that any organization mainly relies upon a very effective management that one that can have over view of the whole industrial operation of the organization running efficiently. The main cause of the bank problems is through poor leadership and lack of proper strategic plans that enable the business structure to achieve the best standards of service to the customers. Good strategic plans and policies of an organization are very useful in goal targeting and in giving the direction to an organization on the path to being followed for achieving its objectives. Another problematic requirement that has hindered the poor performance of the organization is the lack of technology improvement as compared to the growth of the organization and change with the economy. Through this dormant growth of technology it has led the services of the organization to become outdated, and thus the organization is unable to compete effectively in the market. Management strategies and planning The bank management system can effectively operate by first drafting business policies and plans that would help in the meeting the objective of the business. The policies should be able to cover the employee management where they will perform effectively by the organization requirement and also be able to enjoy the full benefits of employment. The communication structure should be very effective this will be able to eliminate the poor problem solving; through this, even the customer's issues can easily be looked upon or solved. The plans and policies of the organization should also consider after SWOT analysis of the business and also through proper analysis in the market (Linoff Berry, 2011). The organization situation analysis SWOT (strength, weakness, opportunity, and threat) enable it to identify its problems and how best to curb the situations. The SWOT analysis also helps the organization to identify its strength and opportunities thus its ability to maximize its potential in the business operation. Goal and objectives of any organization are very crucial in the establishment of business plan and policies, and plans. The effective growth of an organization is well-known by analyzing the achieving rate; the organization should have key indicators that will show the trend of the organization and mostly the most effective ways of addressing the issues. An example of such indicators in the bank would be the rate at which its market shares are trading in the stock market, customer satisfaction clarification and ability to maintain good relationships with the customer and loyalty (Buttle, 2009). The organization should also consider improving its service standards through recruitment of more qualified personnels that can offer more efficient customer service. The bank should sell its brand more efficiently through more advertising which would give the organization much better platform against its competitors. Through the recruitment of more qualified staff, the organization can implement a much more improved system communication upgrade that would be able to serve the customers more efficiently as to the required standards. Advancement in the technology will be a very efficient means of the operational management; it enhances more communication system of the organization where the top managers can be able to participate in the business operation with ease (Young, O'byrne, Young, Young, O'Byrne Stephen, 2000). Also, leadership is an essential strategy in any organization through which every employee can perform effectively by the requirement and policies of the organization. Leadership may differ from managerial duties where its an objective of every employee to able to have good leadership qualities such as integrity, commitment, accountability, and all the required business ethics. Integrity is one of the virtues in every organization and mostly in the service industry such as the banks. An employee should be able to portray the type of leadership skills and mostly his commitment and accountability to the organization best outcomes and service to the customers (King Burgess, 2008). Conclusion In summary, the basic problem faced by the organization was poor management and lack of organization strategies that enabled the organization to operate effectively and be able to withstand the challenges faced by the organization. Through proper implementation of good management strategies, and effective policies and plans organization can operate to its potential best: The organization (bank) can show very drastic recovery from the poor performance. Another change that will greatly increase the potential of the business and enhance its mode communication and service to the customer is the advancement in the organization technology and its ability to keep up information technology changes (Stevenson Hojati, 2007). References Belkhir, M. (2009). Board of directors' size and performance in the banking industry. International Journal of Managerial Finance, 5(2), 201-221. Buttle, F. (2009). Customer relationship management: concepts and technologies. Routledge. Hill, C. 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D., O'byrne, S. F., Young, D. S., Young, S., O'Byrne Stephen. (2000). EVA and value-based management. McGraw-Hill Professional Publishing.