Shinsei Case Study Essay example - 1477 Words

Shinsei Bank Case Shinsei bank has a rich history in terms of influence over the Japanese banking sector. Of all the defining moments, there are a few moments that reflect the culture shift of Shinsei bank from the more traditional Japanese approach to the more Western business model. These moments include the denial by Shinsei to forgive 97 billion Yen in debt owed by Sogo, the creation of the Shinsei Securities operations and the institutional banking department, being listed on the Tokyo Stock exchange and the hiring of Tom Pedersen as the Chief Learning Officer All the above moments are important because all reflect the shift from tradition and probably may account for the current lack of culture or rift between the†¦show more content†¦Although I agree with the use of pay for performance in theory, I do not agree with the two-tier system as implemented by Shinsei. At Shinsei, it seemed that the two tiered system led to resentment. As one employee put it Frankly, for muc h of the first year the atmosphere in the bank was like civil war†¦Everyone was fighting everyone else. The problem with pay for performance systems is that detracts from team work as motivation for self reward goes against the idea of helping colleagues. On the other hand, pay based on the organization profitability leads to star performers being underpaid as well as social loafing. In order to effectively implement a pay for performance system, an organization must be careful to avoid the negative side effects. What was the aim of the values and vision exercise? How successful was it? The main purpose of the vision and values exercise was to formalize and align the current values that were present within the organization. By doing this, Pedersen hoped to align the values to the banks strategic plans. I think Pedersen has done a great job so far in trying to bridge the gap between the employees and trying to promote an organizational culture based on a common mission. His v ision and values exercise was successful. In addition, he adopted a new 360 Performance Evaluation system for senior executives and coaching session for evaluators so the evaluations were not inflated.Show MoreRelatedShinsei Bank Case Study978 Words   |  4 Pagesto figure out how to handle their legacy systems. Jay Dvivedi came across some of these problems when he was charged with overhauling the IT infrastructure of the newly conceived Shinsei Bank. Dvivedi quickly realized that the old legacy systems were almost entirely useless to the new business model Shinsei was attempting to implement. However, legacy systems are not so easily discarded. He had to ask himself questions such as how will new infrastructures affect ways of working and communicatingRead MorePublic Finance Institutions in India- a Brief Discussion4369 Words   |  18 PagesDirectors. The top brass is appointed by the Government of India after an intensive selection procedure. Though the company was accused to go by mere seniority in number of years for the selection of the senior management, this has changed as seen in the case of Thomas Matthew and A. Dasgupta (Managing Directors). The Chairman assumes authority of the CEO and chairs the board while the Managing Directors are allotted the three main categories of the organizations functioning. The currentRead MoreInvesting in the It That Makes a Competitive Difference7179 Words   |  29 Pageswww.hbr.org Studies of corporate performance reveal a growing link between certain kinds of technology investments and intensifying competitiveness. Investing in the IT That Makes a Competitive Difference by Andrew McAfee and Erik Brynjolfsson Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 2 Investing in the IT That Makes a Competitive Difference 11 Further Reading A list of related materials