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Organizational Structure

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Kacy Roder

Organizational Behavior

Organizational Structure

The banking industry is affected by changes within the markets that it conducts business. As an international investment bank, Morgan Stanley faces domestic and international challenges that can affect the company’s structure and culture. The three most difficult challenges global companies face is to “appreciate the differences that exists between countries; benefit from the global knowledge to improve organizational behavior and procedures; and to use global learning to find better ways to respond to global crisis” (George & Jones, 2008). As the company increases its international presence, they should also appreciate diversity in the workplace by hiring a diverse workforce. The banking environment is a very competitive marketplace. Each bank seeks to make a profit and set itself apart from the competition. “Companies must experience superior financial returns to possess a significant advantage over their competitors. To accomplish this, they must have competitive advantage in cost leadership, differentiation, and focus” (George & Jones, 2008). Employees need to be trained effectively to completely understand their role within the organization and be aware of competitor offerings to maintain market share. Morgan Stanley is also affected by demographics and social forces. Effective communication is the key to ensure information is provided to employees in a timely manner using the appropriate medium. Communication is fundamental in “providing knowledge, motivating organizational members, controlling and coordinating individual efforts and expressing feelings and emotions” (George & Jones, 2008). Both the employee and the company are expected to operate in the best interest of the customer, which can be achieved through employee diversity awareness programs. References: ← George, J. M., & Jones, G. R. (2008). Understanding and Managing Organizational Behavior. Upper Saddle River: Pearson Prentice Hall

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