Performance Management Assignment: Case Of Northern Rock
Question
Task: You are required to prepare a performance management assignment discussion about the range of issues and problems related to the performance management of Northern Rock.
Answer
Develop the realistic issues and problems expressed by the organisation in this performance management assignment
Managerial Information System-The complicated financial analysis, sub-prime mortgages, credit defaulting swaps, and asset-backed securities system is a part of the information system and Northern Rock has failed to manage this. The bank tried to manage while ensuring to mitigate recession and financial crisis after the incident.
Customers- The Consumer debt includes finance and personal loan which is a vital service for a bank. People faced a lot of problems regarding this a few years ago and they did not get their credit for a long time. However, with the interaction of financial institutes, they provided the credit after a certain time (New Economics Foundation, 2020). Management- The management strategy of Northern Rock faced a problem sometimes which is related to the international issues and customer credit. Northern Rock's administration can be accomplished by maintaining the situation through initiating management like cooperation with the other banks.
Competitors-The Northern Rock also faced some external challenges which manipulate the presentation in the market. The crisis affected Northern Rock and turned into a critical situation. International marketplace posted the problems while the management region of Northern Rock should concentrate on the issues immediately (Bledsoe, 2019, p. 100). Change process- The organisation’s purposes always require to be transferred to the fresh system. Some activities may approve it to cease. The bank may face few losses from the broken agreement and also sustain the extra expenditures in modernization (Turnhoutet al., 2020, p. 20).
Analysis of the need for change and description of the topology
As stated by Albu and Wehmeier (2014, p.217) with regards to the case scenario of performance management assignment, the organisational transparency and transformation are connected with recognition and agreement between the association and its essentials. Nevertheless, it is generally distinguished as information revelation. Such explanations pose the hazard of generalization and present an incomplete indulgence of the transparency fact. Additionally, the change focuses on how transparency emphasizes the need for financial crises. The Northern Rock had been emerging rapidly and practised the persistent fund collection strategy. This bank relies a lot on the investment of the wholesale market. From the beginning, they retain a secretive plan and management.
The study developed in the performance management assignmentsignifies that the change also improved the unattainable terms and situations that appeared so fair to the management and to the extent that improved impossible terms which have been fair to the government and ended with the bank being engaged into short-term public or private ownership. A lot of things are uncertain when considering the potential issues or threat for the bank but there are characteristics of the method in which the security net is ordinary to work which should provide confidence to everyone who is involved. An essential ingredient of valuable crisis declarations is that the public is apparent in progress about the coming situation. People require patents in their minds about the transformational steps that the system is going to take (Mayes and Wood,2008, p. 16).
As stated by Worley and Mohan (2014, p. 220), the transformation or change of an organisation depends on the different mitigation factors, executive leadership, controlled managements, the detailed risk analysis of the organisation and communication system. The organisation may work with effectiveness when they need changes for improvement. There are some different types of theory presented for the need for change and the organisation should follow this. The first concept is the theories of change in the old normal model which represents the organisational change in the old normal method which has been improved. This concept outlined in the performance management assignment emphasizes the theories of change which represent the alternate variables that are generated for the change. The different concepts of change may affect the effectiveness and rate of changing systems.
The change is fundamental which is triggered by the different factors of both internal and external environment of the company with the result of growth and age. The Northern Rock should follow the change when it's needed. Another theory is theImplementation theories in the old model present another changing concept which depends on the implementation of the particular change. The theory represents different activities of change and the performance on the problem while providing the effort towards success and development. During evolution, the environment demands for the new changes, reliability, capabilities, increased efficiency, predictability, growth and strategies within the existing functional strategy and logic (Worley and Mohan,2014, p. 218).
The new adaptation of the change is important for Northern Rock. The foundation of adaptation may assist to maintain the surroundings and also the intellectual strategy might facilitate transformation or change the organisation. The outcome of adapting the transformation increases the development of the organisation. The company should change the equilibration which corresponds to the deep plan or structure. This equilibrium symbolizes motivational difficulty and cognitive obstacles. The incremental and revolutionary change offers the reactive or proactive typology for classifying the transformation or need for change. It is identified in the performance management assignmentthat the goal of incremental change is always to develop the alignment between the existing components of the company. Transformational changes aim to seek for the new configurations. The intensity of transformation provides stress, dislocation and trauma which are connected with change (Hayes, 2018, p. 158).
Figure 1: Typology of change
(Source: Hayes, 2018, p. 158)
Explain how the Northern Rock has been or not been effected with the change to increase their performance
Facing the liquidity emergency, not so ruined, the Northern Rock revolved into the Bank of England for support. This story is not exclusive as comparable bank releases are currently occurring in a different place. Their goal is to set up and continue confidence in the economic system after the United State subprime mortgage crisis which may cause the global liquidity crisis that leads to the failure of many known financial organizations. Poor commercial governance and imperfect authorized regulation were among the key foundations of the disappointment of the FTSE from top 100 United Kingdom organisations. The different factors explain subsides of the organisation and some the internal power factors within the organisation that may contribute to the difficulties of finance and eventual nationalisation by the government of UK (Tomasic,2008,p.297).
As per the viewpoint of Hayes (2018, p. 258) considered in the performance management assignment, it has been recognised about the organisational needs or different changes of opportunities. The organisation needs to transform the strategy and must change their management capability from the consultants. Many threats and opportunities may trigger the change and it is found in the organisation's external situation. There is no necessity to provide the money for the change of internal transformation. The organisation may change the Political factors including the economic, socio-cultural and technological factors. The digital revolutions make a new model of business that may affect the management of Northern Rock. Those models or new strategies may work as a threat for this Northern Rock if they cannot improve the new thoughts or establish a new strategy. The new models satisfy the customers immediately and fulfil the requirements (Hayes, 2018, p. 224). Some new strategic factors may originate from the organisation’s systems.
The PEST analysis is another important tool which calculates the external environment and provides advice for a change. Another important model mentioned in the performance management assignment is the streble development model which manages different use of financial changers and anticipated technological changes. This model emphasizes the innovation of divergence of offering and convergence of offerings; those models are helpful for Northern Rock's performance in the business market. The streble development model sometimes represents the efficiency of alteration inventing and switching the new strategy and development changes. The organisation may concentrate and provide good interest in the developmental stages. Each stage is related to alignment issues that help to develop and manage the effectiveness of the organisation. The organisation focuses on coordination, collaboration; direction, creativity and delegation for better growth and The Northern Rock should pursue the stages for growth and success (Hayes, 2018, p. 225).
The Northern Rock had an exclusive business structure in the securitisation which is distributed and originated to provide the organisations in general business approach. This helps in providing good care and developing the business strategy. The organisation should develop the culture of vigilance. The performance recognises the change that is needed for better performance. The Northern Rock should focus on the purpose of development along with growth and effectiveness. An inherent possession of the business representation exposed the banks from the low probability towards the higher impact. The low cost and high-profit risk eventually emerge in the next context of universal financial commotion focussed initially on the sub-prime finance lending. The malfunction refers to the represent the external or internal threats and provides opportunities to guide the misalignments and determine organizational effectiveness. This organisation became profoundly dependent on the short-term support in capital and finance markets due to which no one can predict the liquidity in the global markets and suddenly evaporates within the large scale market (Hayes, 2018, p. 225).
Describe the power, politics and managements importance of this organisation
As per the viewpoint of Linsley and Slack (2013, p.285), the altered ethical structures have been recommended as suitable for integrating into the management strategies. The different management strategies analyse about Northern Rock, which was the centre of the financial crisis in the UK. The maintenance and development of a fundamental relationship to an ethical approach and recognise the research. This point provided in the performance management assignment represents the relationship with stakeholders before and after the crisis. The considerable annoyance was straight to the organisation post-crisis and also consequently, the supervision team resigned. The disputation regarding ethical care of an approach that had not been pursued by the exterior parties moderates that management. However, the crisis along with the reason that harm was deeply planned even though the prediction of crises was an emergency. It was difficult and improbable the harm was so intended. It also focuses on stakeholder perspective, increases the assessment level, time perspective and solving the external issues.
The organizational changes arise through the permanence procedure and moderately transform the internal issues, problems and troubles. The system and mechanism that also categorize the procedure and how the collision provides the organisation's potential to achieve the intended transformation was also recognized. The response to transforming the initiative offers a more influential competing approach and principles for permanence and change that are expressed, the stronger and urgent plan of approaching back and pushing for the huge transformation that produces the energy that propels the progress of transformation. The energy increases when the appearance of a rival is channelled into consciousness and makes the structure. It requires the performers for debate and tackles the conflicting perspectives which cover the path for the mutual exploration of the change initiative. The fundamental transformation provides the core elements of systems, structure, strategy, culture and values. The company may change the process which also occurs to be of significant and also the interest to both practitioners and academics. The situation attracts considerable debate and organizational changes (Malhotra and Hinings, 2015, p. 12).
As stated by Ferdinand (2004, p. 435), the politics and power are two concerns that have obtained great concentration in different fields of an investigation but have been practically ignored in the sector of organizational culture. The least contributions create the far and exhibit the restrictions of the approach to the power in the organizations are presently favoured. The suggesting an option starting aim for empirical analysis. The empirical confirmation is utilized to recommend that the learning in existing organizations is by now influenced by the ideological involvements. The formal requirements demonstrate the rising attempts of the United Kingdom government to persuade the organizational learning.
As stated by Hayes (2018, p. 500), the power and authority are not confirmed but the organisation authority may determine certain changes. The change of managers is important for promoting the organisation's reputations and the change may avoid lose and win the battle concept. The power and politics, the public have assumed that companies are well integrated and entities within everybody's job together have a pleasant idea and decisions which are based on rational and logical arguments. The conflict of interest is another powerful and influential aspect of those who are involved and determine the results rather than the logic and the rational argument. The readings used to prepare this performance management assignmentsignifies that the change of management always identifies the issues of stakeholders and concentrates on their predisposition to support each other or to resist the change. The importance of leadership provides a successful change and also ensures the component of the change recipients. The change management or leadership transition along with changing of work perspective may provide benefits to the organisation. ?
References
Albu, O.B. and Wehmeier, S., 2014. Organizational transparency and sense-making: The case of Northern Rock. Performance management assignmentJournal of Public Relations Research, 26(2), pp.117-133.
Bledsoe, C., 2019. The politics of children: Fosterage and the social management of fertility among the Mende of Sierra Leone. In Births and power: Social change and the politics of reproduction (pp. 81-100). Taylor and Francis.
Ferdinand, J., 2004. Power, politics and state intervention in organizational learning.Management Learning, 35(4), pp.435-450.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Linsley, P.M. and Slack, R.E., 2013. Crisis management and an ethic of care: The case of Northern Rock Bank. Journal of Business Ethics, 113(2), pp.285-295.
Malhotra, N. and Hinings, C.B., 2015. Unpacking continuity and change as a process of organizational transformation. Long Range Planning, 48(1), pp.1-22.
Mayes, D.G. and Wood, G., 2008. Lessons from the Northern Rock episode.Économieinternationale, (2), pp.5-27.
New Economics Foundation. 2020. Northern Rock: Ten Years On. Available at:
Tomasic, Roman. "Corporate rescue, governance and risk taking-Northern Rock and its international context." Company Lawyer 29, no. 10 (2008): 297-303.
Turnhout, E., Metze, T., Wyborn, C., Klenk, N. and Louder, E., 2020. The politics of co-production: participation, power, and transformation. Current Opinion in Environmental Sustainability, 42, pp.15-21. Worley, C.G. and Mohrman, S.A., 2014. Is change management obsolete?.Performance management assignmentOrganizational Dynamics, 43(3), pp.214-224.
