Control System Design _ Bank Industry

Organizational control systems are essential for effectively executing strategies and achieving an organization's goals. There are three basic types of control systems:

 

Output Control: This type of control focuses on measurable results within an organization. Executives set performance expectations, track performance, and make necessary adjustments. Examples include website hits, production output, and sales figures.

 

Behavioural Control: Behavioural control aims to regulate actions that lead to results. It involves implementing rules and procedures to standardize behaviour. Examples include dress codes, handwashing policies, and requirements for dual signatures on checks.

 

Clan Control: Clan control relies on shared traditions, values, and norms to encourage employees to work toward the organization's objectives. It is informal and often used in creative settings where output control and strict behavioural control may hinder innovation.

 

Management Fads:

 

Management fads refer to popular business ideas or practices that gain temporary enthusiasm and then fade away. They can be both helpful and harmful to organizations. Some well-known management fads include Management by Objectives (MBO), Quality Circles, Sensitivity-Training Groups, and the fascination with Organizational Culture.

 

Applying to the Banking Industry:

 

In the banking industry, a balanced approach to organizational control systems is crucial. Each type of control system can be applicable in different areas:

 

Output Control: Output control can be used to track key performance indicators (KPIs) such as customer satisfaction scores, loan approval rates, or revenue growth. It ensures that the bank is meeting its financial and operational objectives.

 

Behavioural Control: In a heavily regulated industry like banking, behavioural control is essential to ensure compliance with laws, regulations, and ethical standards. It includes adherence to anti-money laundering policies, customer data protection, and risk management protocols as SOX law.

 

Clan Control: Building a positive organizational culture is crucial in the banking sector, where trust and integrity are essential. Encouraging teamwork, communication, and a customer-centric approach can create a sense of shared values and compliance.

Conclusion 

While new management ideas and fads may emerge, banking executives should approach them with caution. Instead of blindly following trends, they should critically assess each idea's relevance to their organization and industry. Ultimately, a combination of all three types of control systems can help banks achieve long-term success and adapt to changing market conditions.

In addition, each of the control systems applies to different areas of the bank these can be in the front office or in the back office, this will always depend on the strategy and objectives of the term q can have the bank.  all these indicators should be represented in a Balance scorecard.

 Reference:

Edwards, J. (2014, September 12). Creating organizational control systems. Pressbooks. https://opentextbc.ca/strategicmanagement/chapter/creating-organizational-control-systems/  

Summary Article 6- Organizational Behavior - Conflict Resolution

 Summary of Conflict Resolution

Conflict resolution is a crucial skill, and several articles explore various strategies and approaches to handling conflicts effectively. In "Radical Compassion as the Goal of Conflict Resolution," Henry Yampolsky advocates for radical compassion, which involves an intimate connection with another person's humanity while acknowledging that we can never truly know their experiences. This approach emphasizes autonomy, inclusion, exploration, and expansion to transform conflicts.

 In "5 Conflict Resolution Strategies," Katie Shonk presents five effective conflict resolution strategies. These include recognizing biased fairness perceptions, avoiding escalating tensions, overcoming an "us versus them" mentality, identifying deeper issues, and separating sacred from pseudo-sacred issues.

Clea Simon's article, "The Power of Productive Disagreement: Listening and Language in Conflict Resolution," focuses on the importance of honest and open listening during disagreements. The article highlights the role of language in shaping perceptions during conflicts and introduces the HEAR approach for constructive language use.

Dorothy Walker's "3 ways to resolve a conflict" discusses the power of positive energy transference in conflict resolution. The three steps involve preparation, diffusing the conflict and moving forward, and making an agreement to resolve conflicts effectively.

In "Conflict Resolution Examples in History: Learning from Nuclear Disarmament," Katie Shonk examines historical examples of nuclear disarmament efforts. The article emphasizes the significance of active listening, constructive ambiguity, careful selection of negotiators, and private and sensitive negotiations in conflict resolution.

 

Conclusion:

Conflict resolution is a critical skill in both personal and professional life. Emphasizing radical compassion, active listening, positive energy transference, and employing effective strategies can help navigate conflicts successfully. These articles demonstrate the importance of empathy, understanding others' perspectives, and promoting open dialogue to create meaningful connections and achieve win-win outcomes. If we learn from historical examples and apply these insights, can enhance our conflict resolution skills and contribute to a more peaceful and cooperative future.

References:

1.     Shonk, K. (2023). 5 Conflict Resolution Strategies. PON - Program on Negotiation at Harvard Law School. https://www.pon.harvard.edu/daily/conflict-resolution/conflict-resolution-strategies/

2.     Shonk, K. (2023). Conflict Resolution Examples in History: Learning from Nuclear Disarmament. PON - Program on Negotiation at Harvard Law School. https://www.pon.harvard.edu/daily/conflict-resolution/conflict-resolution-examples-in-history-learning-from-nuclear-disarmament/

3.     Simon, C. (2022, November 22). The Power of Productive Disagreement: Listening and Language in Conflict Resolution. Harvard Gazette. https://hbswk.hbs.edu/item/when-agreeing-to-disagree-is-a-good-beginning

4.     TED Institute. (2020, April 1). 3 ways to resolve a conflict | Dorothy Walker | TED Institute [Video]. YouTube. https://www.youtube.com/watch?v=r4xPwhcnS-Q

5.     TEDx Talks. (2022, November 1). Radical Compassion as the Goal of Conflict Resolution | Henry Yampolsky | TEDxFaurotPark [Video]. YouTube. https://www.youtube.com/watch?v=PB4ClGTWpBA

6.     Speaker Bios. (n.d.). Hokie Wellness | Virginia Tech. https://hokiewellness.vt.edu/hwondemand/employee-wellness-on-demand/remaining-resilient-webinar-series/speaker-bios.html#:~:text=Henry%20Yampolsky%20is%20a%20mediator,Office%20of%20Equity%20and%20Accessibility.

 

 

Article 5 - Organizational Behavior - Conflict Resolution

 Conflict Resolution Examples in History: Learning from Nuclear Disarmament

Author: Katie Shonk

Introduction:

In this article, we explore valuable lessons in conflict resolution by examining historical examples of nuclear disarmament efforts, specifically focusing on the post-Cold War era. Negotiating disarmament procedures in such high-stakes scenarios involves a multitude of challenges and complexities. One of the significant initiatives discussed is the Nunn-Lugar Cooperative Threat Reduction Program, a joint effort by Richard G. Lugar and Sam Nunn, which successfully facilitated the destruction of outdated nuclear missiles and materials in former Soviet Union nations. We will also touch upon recent developments, such as Russia's pursuit of nuclear modernization and the reflections expressed by Lugar concerning the dismantling of the American nuclear arsenal.

The Importance of Active Listening and Understanding:

Laura Rockwood, a former senior research fellow associated with the Project on Managing the Atom at Harvard, shares essential conflict-solving strategies. She emphasizes the value of active listening, a process that involves understanding the other party's perspective without any preconceived biases. This approach builds trust and enhances mutual understanding, which is particularly crucial when negotiations occur through interpreters or across language barriers.

 

Additional Strategies for Conflict Resolution:

 

In addition to active listening, three other strategies are recommended for successful conflict resolution:

Constructive Ambiguity: Employing constructive ambiguity allows negotiators to maintain flexibility in their positions without appearing overly rigid. This approach can create creative solutions and ease tensions during sensitive negotiations.

Careful Selection of Negotiators: Choosing negotiators who can establish trust and empathy with the opposing parties is vital. Having representatives who understand the cultural nuances and historical context can lead to more productive dialogues.

Private and Sensitive Negotiations: Keeping sensitive negotiations as private as possible can prevent external pressure and allow parties to engage in open and candid discussions, which are crucial for reaching lasting resolutions.

Conclusion:

Conflict resolution is a delicate and intricate process, especially when it comes to nuclear disarmament efforts after the Cold War. By drawing lessons from history, understanding the significance of active listening, and implementing various strategic approaches, we can foster an environment conducive to successful negotiations. These lessons not only apply to nuclear disarmament but also serve as valuable tools for resolving conflicts and disputes in diverse settings, paving the way for a more peaceful and cooperative future.

References:

Shonk, K. (2023). Conflict Resolution Examples in History: Learning from Nuclear Disarmament. PON - Program on Negotiation at Harvard Law School. https://www.pon.harvard.edu/daily/conflict-resolution/conflict-resolution-examples-in-history-learning-from-nuclear-disarmament/

Article 4 - Organizational Behavior - Conflict Resolution

 3 ways to resolve a conflict

Author: Dorothy Walker

About the TED Institute: "We know that innovative ideas and fresh approaches to challenging problems can be discovered inside visionary companies around the world. The TED Institute helps surface and share these insights. Every year, TED works with a group of select companies and foundations to identify internal ideators, inventors, connectors, and creators. Drawing on the same rigorous regimen that has prepared speakers for the TED main stage, TED Institute works closely with each partner, overseeing curation and providing intensive one-on-one talk development to sharpen and fine-tune ideas"(TED Institute,2020).

 

Summary:

The author shares a personal experience of witnessing a heartwarming reunion of a veteran with his family, highlighting the contagious nature of energy and emotions. They discuss the concept of energy transference, where positive or negative energy can affect those around us. Drawing from their research on dispute resolution, the author emphasizes that positive energy transference is a learnable skill that can be used to resolve conflicts in various settings. They provide three steps to effectively resolve conflicts using positive energy: preparation, diffusing the conflict and moving forward, and reaching an agreement.

Prepare: When mediating a conflict, it is essential to avoid jumping into it when emotions are high. Instead, schedule a future meeting when emotions have settled, and prepare by creating a comfortable environment and cultivating positive energy through meditation.

Diffuse and move forward: During the mediation process, observe, listen, and ask neutral questions to defuse the conflict and encourage collaboration. This pause allows negative energy to dissipate, providing an opportunity to introduce positive energy into the conversation. Focus on collaboration, ask about cost and timelines, and explore alternative possibilities.

Make an agreement: Once the conflict has been diffused, and a consensus is reached, it is important to formalize the agreement, either verbally or in writing. This helps solidify the resolution and prevents misunderstandings in the future.

Harnessing positive energy through compassion, empathy and sincere intentions, anyone can resolve conflicts using their positive energy. It requires will and the belief that conflicts can be resolved.

References:

TED Institute. (2020, April 1). 3 ways to resolve a conflict | Dorothy Walker | TED Institute [Video]. YouTube. https://www.youtube.com/watch?v=r4xPwhcnS-Q

Article 3 - Organizational Behavior - Conflict Resolution

 The Power of Productive Disagreement: Listening and Language in Conflict Resolution

Author: Clea Simon from Harvard Gazette

Introduction:

Conflict and disagreement are often viewed negatively, but researchers from Harvard Kennedy School and Harvard Business School argue that engaging with opposing views can be constructive and lead to new discoveries and alliances. Francesca Gino and Julia Minson, experts in the psychology of disagreement, emphasize the importance of honest and open listening as a key factor in making disagreements productive rather than damaging.

 

Listening with Receptiveness:

Gino and Minson highlight the significance of receptive listening, which involves considering and evaluating opposing views in an impartial manner. It requires giving equal attention and respect to ideas from the other side, rather than dismissing them as foolish or solely seeking flaws in their arguments. This level of listening demands discipline and discomfort, especially in a polarized era where arguments have become emotionally charged and accusatory due to the influence of social media.

 

Language and Perception:

The researchers emphasize the role of language in shaping perceptions during disagreements. They found that certain types of words and phrases influenced how individuals were perceived during discussions. Negative responses were associated with negation and reasoning language, while acknowledgment, hedges, second-person pronouns, and agreement were viewed positively. Acknowledgment doesn't imply agreement, but rather restating the other person's opinion. Expressing positive emotions also played a role in how a speaker was perceived.

 

The HEAR Approach:

Minson introduces the HEAR acronym, which stands for hedging, emphasizing agreement, acknowledging, and reframing the positive. Using this language during disagreements has positive outcomes, making others more willing to collaborate and be receptive to different perspectives. It can be contagious, even when the other side appears combative and unreceptive. Adopting this approach when trying to persuade others proves to be more productive and effective.

 

Challenges and Conclusion:

Being receptive to opposing viewpoints requires patience and can be difficult, especially when emotions run high. However, Gino and Minson emphasize that positive interactions are more likely when individuals perceive the other party as receptive and genuinely interested in learning. Despite the challenges, the researchers conclude that the power of productive disagreement lies in attentive listening and constructive language, leading to greater understanding and collaborative outcomes.

References

Simon, C. (2022, November 22). The Power of Productive Disagreement: Listening and Language in Conflict Resolution. Harvard Gazette.

https://hbswk.hbs.edu/item/when-agreeing-to-disagree-is-a-good-beginning

Article 2 - Organizational Behavior - Conflict Resolution

 5 Conflict Resolution Strategies

Author: Katie Shonk

Introduction:

When conflicts arise, whether in professional or personal settings, our instinct is often to assert our correctness and attempt to correct the other party's perceptions. However, this approach usually fails to resolve the conflict and can even exacerbate it. Drawing on research on negotiation and conflicts, this article presents five effective conflict resolution strategies that can help foster understanding and collaboration.

 

Recognize biased fairness perceptions:

Conflicting parties tend to believe they are right and the other side is wrong due to egocentrism, which makes it difficult to see situations from another's perspective. Overcoming self-centred fairness perceptions is crucial. Jointly hiring a mediator or involving an unbiased expert, such as an appraiser, can help both parties gain a more balanced understanding of each other's viewpoints.

Avoid escalating tensions:

In an attempt to gain attention or regain control, individuals often resort to threats or provocative moves when they feel ignored or steamrolled. However, such actions tend to trigger a reciprocation of threats and escalate the conflict further. Before making threats, it is important to exhaust all other conflict management options and consider the potential consequences of escalation.

Overcome an "us versus them" mentality:

Group connections can strengthen relationships, but they can also breed suspicion and hostility towards out-groups. This leads to a distorted understanding of the other side's views and an exaggerated perception of their extremism. To overcome this mentality, identify common goals or shared identities and emphasize them during conflict management efforts. Finding points of similarity fosters collaboration and increases the likelihood of reaching a fair and sustainable agreement.

Identify deeper issues:

Superficially, many conflicts revolve around money or tangible resources. However, underlying causes often involve feelings of disrespect or neglect. Instead of fixating solely on the division of resources, take a step back and address deeper concerns. Actively listen to each other's grievances and explore creative solutions that address these underlying issues. This approach strengthens relationships and expands the potential value to be divided.

Separate sacred from pseudo-sacred issues:

Negotiations become challenging when negotiators perceive certain values or principles as sacred and non-negotiable. However, many seemingly sacred issues are actually pseudo-sacred and can be subject to negotiation under specific conditions. Analyze the potential benefits that negotiation might offer in upholding these principles. For instance, in a case where siblings disagree about selling their parents' farm, considering donating a portion of the proceeds to a charity that aligns with their parents' values could soften objections and facilitate a resolution.

Conclusion:

Conflict resolution is a complex process, but by adopting effective strategies, we can improve our ability to navigate conflicts in a productive and collaborative manner. Recognizing biases, avoiding escalations, promoting empathy, addressing underlying concerns, and distinguishing between sacred and pseudo-sacred issues are essential steps toward resolving conflicts and fostering positive relationships. Consider employing these strategies when faced with conflicts in your own life to achieve more favorable outcomes.

References: Shonk, K. (2023). 5 Conflict Resolution Strategies. PON - Program on Negotiation at Harvard Law School. https://www.pon.harvard.edu/daily/conflict-resolution/conflict-resolution-strategies/

Article 1 - Organizational Behavior - Conflict Resolution

 

Radical Compassion as the Goal of Conflict Resolution

Author: Henry Yampolsky “Radical compassion, as defined by the speaker, is an intimate and infinite connection with another person's humanity while acknowledging that we can never truly know or experience what they have lived through. The speaker outlines four key elements of radical compassion: autonomy, inclusion, exploration, and expansion”(Speaker Bios).

 

The speaker begins the talk with a word game exercise, asking the audience to complete a list of words. They suggest that our word choices may reveal something about ourselves. They introduce the concept of introspective illusion, which means we are reluctant to draw conclusions about ourselves based on our word choices but quick to do so when it comes to others. The speaker proposes that we know a lot less about other people than we think we do and argues for moving from empathy to radical compassion.

Radical compassion, as defined by the speaker, is an intimate and infinite connection with another person’s humanity, while recognizing that we can never really know or experience what he has experienced. He described four key elements of radical compassion: autonomy, inclusion, exploration and expansion.

They explain that autonomy involves recognizing the complexity and nuance of others and respecting their right to determine how they engage with others. Inclusion is about refusing to "other" anyone and seeing all as integral parts of the same whole. Exploration encourages moving beyond binary ideas and engaging with ambiguity and uncertainty, leading to a deeper understanding and connection. Expansion involves shifting from positions to interests, emotions, values, and needs, with the aim of transforming conflicts.

He shared a real example of the application of radical compassion in a conflict-resolution situation involving students with opposing views on the Israeli-Palestinian conflict. It describes individual conversations with students, creating a safe space to explore their needs and expectations. A restorative peace circle is organized, where students share their stories, offer apologies and work to find a shared vision to move forward.

The speaker concludes by emphasizing that radical compassion, rooted in the understanding that we know less than we think we do, is crucial in addressing conflicts and fostering meaningful connections and dialogue.

Opinion

About this video, I think radical compassion is the most important thing to resolve any conflict, in my experience, conflict resolutions are difficult to address because each party is focused on their own needs.

It is important when dealing with a conflict to seek radical compassion first to create only a common point of view, share ideas and resolve the conflict in a win-win.

References:

·       TEDx Talks. (2022, November 1). Radical Compassion as the Goal of Conflict Resolution | Henry Yampolsky | TEDxFaurotPark [Video]. YouTube. https://www.youtube.com/watch?v=PB4ClGTWpBA

·       Speaker Bios. (n.d.). Hokie Wellness | Virginia Tech. https://hokiewellness.vt.edu/hwondemand/employee-wellness-on-demand/remaining-resilient-webinar-series/speaker-bios.html#:~:text=Henry%20Yampolsky%20is%20a%20mediator,Office%20of%20Equity%20and%20Accessibility.