Running Head: VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR Report on Value System Theory, Leadership Style and Banking Sector By (student name) Institution affiliation Instructor Course Date 1 VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 2 Executive Summary The report gives the detailed assessments and evaluation of the banking sector and its leadership using the value system theory (vMEME) and all the leadership theories that it integrates into the banking operations. The paper critically evaluates through the theory application how certain types of leadership and management styles differ depending on history, cultures, geographic life and conditions to determine the impact on the effects of the styles on the strategy, people's performance and products. Added, the paper critically evaluates the leadership problems and challenges as well as the personal leadership capabilities to determine the future development. Furthermore, the paper presents the brief description of the background of Dr. Clare Grave's Value Systems theory with the actual presentations, evaluation of the differing leadership styles and behaviors in the organizations from the different cultural, geographic and historical perspective while presenting an evaluation and analysis of the particular issues that faces the banking sector. Dr. Clare Grave's Value System Theory The value system theory emanated from the in capacitance of the Maslow's theory failure to integrates all the aspects of base understanding of a man as a bio-psycho-social-cultural being, Grave's Value System theory is a model that maps how and individual or the entire system that can be departments, companies or organizations think and acts and serves as a useful instrument for everyone working in an organizations or teams that are motivated to achieve the better understanding of the operational contexts. According to Dr. Clare Graves, he assumed that the individual behavior was determined by the individual needs, but the behavior is determined by the combination of the social aspects, biological and psychological factors that compelled him to VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 3 develop the eight value systems that have evolved over time and affecting human biologically, psychology and culturally. The theoretical framework offers a fresh, powerful and comprehensive approach to problem solving, change and transformations, the spiral dynamics explores the core intelligent and deep values that flows below beneath what individuals believe and do, thus the result of the dynamic model of the value system explains the values that arise and spread to determine the individuals decisions in different ways and the approaches given to the difference to create a win to win outcome. The theory describes the difference in human development in a highly complex and multi-perspective manner, thus, in his theory he describes how people, systems, and organizations see the world based on their biopsychosocial system and combines different disciplines in the theory and research that include the biology and neurobiology, psychology and the theories of human personality, sociology and anthropology as well as the systems theory (Graves, 1970). Dr. Grave formulated his theory based on the fundamental value system on the individual's circumstance and the problems that come with as well as the way to deal with it based on the mind conditions, every adult contains all value systems within himself, a person's value system changes depending on the circumstances that an individual finds himself in, the development of the value systems that acts like a pendulum that oscillates, move back and forth between the value systems that are focused on the individual and those that are focused as a collective. Additionally, Grave argues that the more complex, the circumstances, the more the value system which will be required while the value system depends on the context and people experience the environment in different ways thus, means that different value systems may be predominant in the different context (Dawlabani, 2013). Dr. Clare Grave developed his categorizations based on the colors criteria. The beige criterion (reactive) brings out the inward point of the world views that is dependent on the outside support VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 4 for the survival; the purple drive develops the tribal approach. For instance, the purple drive (tribal) is manifested in the current leadership in the business world, finance, sports, and the banking sector as well as in organizations of all levels. It is worth noting that the individuals in the banking sector in which I form part tends to follow the strong influential leader, Additionally, in today's society people tend to focus on the safety and security that develops and compel individuals to build the interest to belong to a particular unit, traditions, togetherness, and seniority and, therefore, means that the safety and security hold the foremost priority. In the bank sector, the interests of the group are foremost and experience the mystical harmony with the forces around the bank and all the employees exert themselves on behalf of the group. Red drive (egocentric) that include the power, immediate gratification, escaping from being under control, honor, strengths, reputations, courage, developing a high level of respects and avoiding shame. Evidently, a high proportion of the United Kingdom population is at this level that is shown by the lack of the consequence awareness. In the view of the banking sector, we see the world as the battleground geared towards the survival of the fittest and building on the self-preservation creating the balance of power. The blue drive (absolutist) focuses on discipline, reliability, duty and control and according to Grave what matters most in this drive is the assumption that describe the order in which the issues manifest themselves in an orderly fashion based on the foundation of the properly structured environment with rules, methods and procedures build upon the authority. For instance, the drive is complied to in the banking sector in which the employees obey the higher authorities, the bank manager and the CEO gives the rules and producers geared towards harmonization of the operations in the banks and coordination all the employees towards the goals of the bank. The green drive ( personalistic) focuses on involvement and gaining the consensus or agreement and seek peace with the inner self and gain VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 5 the contact with the inner self of others, the ideals, and loyalty to the group and developing the harmonious existence, connectedness, love, social contract and consensus within the setting. In the bank sector, it is manifested in the value that the employees grant to the relationship with other employees and leaders that is enhanced through the development of warmth mode of communication and creating a comfortable well-being of the employees. In the business sector, the customers would always want the business person to place her or himself to take the position of the buyers in the seller-buyer agreement to develop a moral consensus and make decisions in an efficient business-like manner. The yellow drive (systemic), an individual sees develops the systems viewpoint and perceives the world as being in damage of collapse because of the misuse of the resources thus, an individual with a yellow value system pays great focus and attention to connections and broad interest while the turquoise drive (holistic) focuses on developing the totality of self and get responsible holistically, create a balance and holism, spirituality and integration. For instance, what matters most is an ecological sound judgment in the operation of the bank sector and activities (Beck & Cowan, 2014). Thus, in the banking sector, I need to be aware that different parts of the organization may be operating on different levels and requires all the bank fraternity to adjust their approaches to enable rapport to be established with appropriateness while tension, stress or significant change of any form in the environment or context may cause people to regress to an earlier level. Leadership styles and behaviors in commercial bank in the US Transformational, transactional leadership and commercial bank culture The commercial bank works upon the work culture and has the obligation to nurture and build the skills and competencies of the staff at the various departments to meet the current needs VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 6 of the customers, it's focused on creating a wealth of knowledge that is required for the future requirements of the Bank and developing a total commitment to the customers (Klebaner, 2004). Additionally, the banks operate on its missions that are focused on excellence services to the clients, maximum returns to the shareholders, and the real success for the participants in the bank operations and a great contribution to the society. The banks is directed by the vision to become the global leading bank with the best profitability, performance and prestige while retaining its core values that include integrity, humanity, prudence, innovation, and excellence. The commercial bank embraces the departmental management structures that facilitate its efficiency in the markets and placing it in a relative market positions. The management's structure of the commercial banks is as show below. Diagram one VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 7 The commercial banks utilize both the transactional leadership as well as the transformational leadership; the departmental managers receive the tasks to be performed and distribute to the team members as well as providing the rewards based on the results. The departmental managers set the predetermine objectives together; the employees follow the directive and leadership of the managers to accomplish the goals while the manager possesses the power to review the results and train, correct the employees in the event of failure to meet the target results. Additionally, the commercial bank embraces the transformational leadership styles since it depends on the high levels of communication to meet the objectives of the banks. The leaders in each department and position get involved in the departmental processes to meet the objectives and motivate the employees to enhance the productivity levels and increases efficiency through communication and high levels of visibility, thus, the managers and CEO focus at the big picture of the commercial banks and delegate the smaller duties to the team to accomplish with the highest level of efficiency (Haslem, 1985). In the light of Dr. Clare Grave, the commercial bank focus at involving all the employees and the managers in totality to achieve the objective of the bank, the bank applies the leadership styles that coherently developed agreements within the bank operations, specifically, the green drive (personalistic) is embraced in which the banks tends to harmonize all the department's duties and responsibilities while it also applies the turquoise drive (holistic) in which it looks at the general success of the commercial bank in totality, the managers and CEO's recognizes the need to sacrifice the self for the sakes of the employees within the banks and to develop the unity of the whole system to achieve all the operational goals as well as focusing on the future operations that will place the banks in a competitive position in the global environment as well as embracing the blue drive that focus on maintaining order and security to all the employees of the banks and all the VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 8 operation of the bank follows the structured fashion and foundation of the procedural environment that is defined by the rules, procedures and approaches to productive, equitable and effective performance of the employees and certain the future operation of the commercial bank. According to diagram two, leaders play a noteworthy role in edifying high-performing teams to achieve the great levels of job satisfactions and commercial bank dedication, in any business that persistently grow, the leaders becomes more challenging and imperative, thus, an effective leadership leads to competitive advantages for the current and future operation of commercial bank. It is worth recognizing that the performance and behaviors of the bank managers and CEO determine the perceptions of the subordinates and regarding the manager's and CEO's behavior of leadership and impact to the commercial bank performance and job satisfaction among the employees (Graves, 1970). Evidently, the leaders performance and effectiveness has a high and significant correlations with the general performance of the commercial banks in its markets and job satisfaction among the employees, thus, the directive approach that embrace the transactional leadership style and transformative leadership styles is crucial in the operation of the commercial bank to meet the current objectives and future objectives to adjust its operational models in the competitive markets. Diagram two VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 9 Coordination of employees and development of an operation consensus in all the commercial bank departments Value system drives embraced Green drive (personalistic- departmental duties and responsibilities focus at increased employee productivity and efficiency) Blue drive (absolutist- order and security of all the employees within the commercial bank based on clearly define rules, procedures and approaches to operation Turquoise Drive (Holistic View of Commercial Bank Operations) Value system and commercial bank leadership structure The commercial banks embrace the flatter organizations structures and hierarchical structures, the flatter organizations structure seeks to open up the lines of communication and collaboration within the commercial banks, developing the practical examination, scalable and logical approach to be deployed across the entire company. However, the hierarchical structure still exists despite the fact that it continually embraces and focuses on the communication and collaboration, improving the employee experience, challenging the status quo around the commercial banks traditional models. The commercial bank has employed the change by reinventing the entire bank and introducing the radical new structure and approach to work and VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 10 achieve the similar results in far shorter term with less efforts and resource allocation. The changes tend to embrace the Dr. Clare Grave value system theory to integrate the full operation in the globally competitive markets. Leadership issues/challenges that is faced by the commercial bank using the value system theory Regulation pressure, uncertainty, shifting customer loyalty and compliance The combination of the dealing with the current requirements and the banks struggles to manage the uncertainty of the new regulations and changes in the forms of the management's structures that gradually moves from the traditional approaches and forms to the modern forms that present the series of changes to the whole operating system. Additionally, with the increased regulatory requirements, the commercial banks is forced to spend a large part of its discretionary budget on being compliant and building the systems and processes to keep with the escalating requirements of the whole system such as the employee developments and management, compensations and equitability. Conversely, the general perception of the power structure in the commercial banks has been full of skeptical that has led to decrease and loss of trust among the bank customers, that has increased the level of uncertainty in the operation of the commercial banks and in the chase of the job satisfactions (Machiraju, 2008). Thus, commercial bank must continue to escalate and constantly evaluate and improve to keep up with the pace of the change in the banking and financial industry. Bank leadership and consumer expectations gap The current trend that has emerged in the financial industry is about the customer experience and delivering the services that meet the consumers' expectations. With the increased VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 11 competition and development of more banking institutions as well as the financial technology companies, the commercial banks face great challenges in its leadership cycle to remain and retain sits positions in the financial markets. Significantly, the financial technology companies apples the software applications that provides the financial services to customers, with the increase popularity of the Financial technology companies, the commercial bank operations are disrupted that compels the commercial bank to readjust its mode of operation to integrate and withstand the changes that have occurred, therefore, compels the commercial banks to readjust its culture, operations, leadership approaches and the general face of the banks to meet the customers expectation gaps (Machiraju, 2008). Employee dissatisfactions and leadership style According to the empirical studies, there is an indication that the employee satisfaction transforms into a higher quality of the service through which the customers are more satisfied while the banks encounter higher business performance (Haslem, 1985).. Employees tend to get motivated by the leadership design and approach that is inclusive and integrate the role played by the banks employees in management and operations of the banks. Despite the fact that the commercial banks apply the transactional and transformation leadership approach, to some extent the employees still feel dissatisfied with particular approaches given to issues that compel to the banks to continually evaluate its leadership methodologies in its operations, thus, remains to be a challenge to achieve the employee satisfactions. There is a great correlation between the general productivity of the employee and the employee job satisfaction, the employee dissatisfaction results from various aspects of the organizations, evidently, the employees' dissatisfaction to serve at the commercial bank emanates from the leadership approaches and structures that are embraced by the organizations. Therefore, the employees' dissatisfactions as a VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 12 result of the leadership styles that tend to ignore the core value of the employees' lead to high employee turnover that operates. Conclusion The financial world has changed permanently in terms of balance of power within the industry and how the banks will operate in the future while faced with the challenge that lies in the dichotomy that the financial markets are increasingly becoming globalised that must comply with the predominant regulators that call for the greater international cooperation that will increase and improve stability of the global financial system. The banks must remain aware of the global shifts in banking and long-term structural phenomenon, focus on the emerging markets and the management and leadership formats and approaches for all the organizations must enhance the creation of the long-term sustainable success. The banks must understand their business models and develop the confidence to deliver the sustainable value with the appropriate mitigations that focus on the customers, understand the performance indicators and executive incentives in driving the value system, right, wrong, behaviors and how good governance can make a difference in the operation of the banks. In the course of this course, I have learned about the nature of the leadership and qualities of the effective leadership that must be integrated into the organizations to developed and achieve its operation objectives. Evidently, effective leaders must embrace the qualities such as self-assessment that focus on the personal strengths and shortcomings; having the information on such areas facilitate the delegation of the duties to achieve the common goal and compliment the leadership design and approaches with the diversified skills and supplementary as well as complementary efforts. The leaders must develop the sharp perceptions and develop honesty in VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 13 his or her approaches to issues, enhance effective communication channels with the teams and recognize the value of developing a consensus with the subordinate, (generally embrace the value system theory ) to achieve the goals. Additionally, the leaders must be responsive to the group needs and knowing the culture of the organizations such as the purpose and the core objectives that anticipated to be met in the course of operations. In essence, communication, the motivation of the teams, team building, risk taking, vision and goal setting are equally important in the course of leadership (Kippenberger, 2002). Thus, effective leadership style is dictated with the situation and core objectives of the group while the leader set the direction, build on the inspiring visions and create new view, for instance in the view of James MacGregor Burns and Bernard Bass, the transformational leadership model is effective in highlighting visionary thinking and bringing about change instead of the management processes that are designed to maintains and stability improve current performance and therefore, creates an inspiring vision of the future, motivate and inspires people to engage with the visions, managers delivery of the vision and coaches and build the team to effectively achieve the visions (Adeniyi, 2007). VALUE SYSTEM THEORY, LEADERSHIP STYLE AND BANKING SECTOR 14 References Adeniyi, M. A. (2007). Effective leadership management: An integration of styles, skills & character for today's CEOs. Bloomington, IN: AuthorHouse. Beck, D., & Cowan, C. C. (2014). Spiral Dynamics: Mastering Values, Leadership and change : exploring the new science of memetics. Dawlabani, S. E. (2013). MEMEnomics: The next-generation economic system. Graves, C. W. (1970). SYSTEM THEORY OF VALUES. Haslem, J. A. (1985). Commercial bank management: Text and readings. Reston, Va: Reston Pub. Co. Kippenberger, T. (2002). Leadership Styles. Chichester: Capstone Pub. Klebaner, B. J. (2004). American commercial banking: A history. Washington D.C: BeardBooks. Machiraju, H. R. (2008). Modern commercial banking. New Delhi: New Age International (P) Ltd., Publishers. Assignment One - LP1 (50%) MAIN 3,000 words (+/- 10%) The assignment brief is as follows: You will produce a written report that critically assesses and evaluates your company and it's leadership using Value Systems Theory (vMEME) and all the leadership theories it contains. On completion of this Unit you be able to meet the Core Learning Outcomes (LOs); 1. Critically evaluate through theory application how certain types of leadership/management styles differ depending on history, culture, geographic life and conditions and how they impact strategy, people performance and productivity. 2. Critically evaluate leadership problems and challenges and your personal leadership capabilities and critically analyse the need for future development. Through application of Value Systems Theory you will have a tool (and the skill) to critically assess and evaluate all types of leadership theories and worldviews that include; USA, China, UK, France, Indian, Russia, Vietnam, Middle East, Africa, etc., etc.. Company culture and its leadership/management are different depending on the Value System (life conditions and how individuals adapt to successfully compete). Inevitably this impacts everything about a company - strategy, people, performance, productivity, etc.. A suggested structure for the written report would include the following: This assignment can be divided into four equal sections weighting 25% each. These have been presented as four questions. I. Frist briefly describe the background of Dr. Clare Grave's Value Systems Theory in your own words. Then use a small example of what is currently taking place in leadership in the world of business, finance, sport, etc., etc., or even in your sector. Reference general information on Value Systems Theory from BREO in; - Guided Learning Folder: Unit Session 1 Presentation - General VST Overview Reading Materials Folder: Graves Value Systems Theory Research & Testing Reading Materials Folder: Value Systems Theory Overview - Section 3 Reading Materials: Memenomics Economics in Banking & Finance_ Book Chapter (p. 38 to 46) Guided Learning: American Leadership Value Systems - Example Guided Learning Folder: Unit Session 2 Key Characteristics of Leadership Value Systems Articles & Academic Reference Folder: All Online or other media world/business press Learning Outcomes addressed: 1 (Approximately 750 words) 1 II. Produce an evaluation of differing leadership styles and behaviours in an organisation from different cultural, geographic and historic perspectives. To enable critical assessment and analysis, describe your company's culture, management and leadership using Value System Theory and Leadership Structure. a. Chose from one of the eight Value and Leadership Systems and Structures that best describe your company culture, management and leadership. b. Use a picture diagram to illustrate the Value System and Leadership Structure. c. Next describe what Value System and Leadership Structure is present in your company and leadership how evolved from past to present, what changes have taken place in the business environment - local or regional or global (Life Conditions), and how the company and leadership have adapted to those changes (vMEME). Important Note: To write this you will have to read/refer to the Core Reading materials on Value Systems and Leadership Theory from BREO as well as and do research on your company's history (Please refer to the Core Reading Schedule below) Learning Outcomes addressed: 1 and 2 (Approximately 750 words) III. Produce an evaluation and analysis of particular leadership issues in an organisation through the use of relevant leadership theory. Describe in general terms current leadership issues/challenges in your organisation using Value Systems Theory. An example of this could possibly be issues/challenges your company is facing as a result of changes taking place in the business environment like competition, economic, security, on a local, regional, or global scale that your leadership and management must adapt in order to remain competitive. 1. Use past and present information from your industry/sector and company Important Note: Please keep this part very general. This is meant to be a general analysis and description. This does not include offering/identifying solutions, giving advice or describing what specifically needs to be change or improved. You will be specific in LP2. Learning Outcomes addressed: 1 and 2 (Approximately 750 words) IV. Some conclusions about the definition of 'leadership' (before and after) 1. Here you should consider what you have learned about the topic of leadership in general. What did you think about leadership before the semester then after completing the semester? As you should know by now there is no single, universal definition of what leadership is, or how you should lead. In this section therefore, you describe how your definition or idea of leadership has changed before the Leadership Project 1 and now at the end of the first semester. You could also discuss when and why different leadership approaches (using Values System Theory) may be appropriate in different contexts and circumstances. 2 Learning Outcomes addressed: 1 (Approximately 750 words) Leadership Project 1 (LP1) Core Reading Schedule from Reading Materials Folder Session 1: Value System Theory Overview_Book Section 3 (p. 195) and Chapter 9: Beige (p. 197) and Values Systems Theory in Leadership & Management Chapter 7 (p. 139 to 141) + Also read: Memenomics Economics in Banking & Finance_ Book Chapter Two (p. 33-37) - Listen to LP1 Podcast Series Session 1 Session 2: Value System Theory Overview_Book Chapter 10 Purple (p. 203) and Chapter 11: Red (p. 215) and Values Systems Theory in Leadership & Management Chapter 7 (p. 136 to 141) + Also read: Memenomics Economics in Banking & Finance_ Book Chapter Two Purple and Red (p. 47 - 52) - Listen to LP1 Podcast Series Session 2 Session 3: Value System Theory Overview_Book Chapter 12: Blue (p. 229) and Chapter 13: Orange (p.244) and Values Systems Theory in Leadership & Management Chapter 7 (p. 132 to 136) + Also Read: Memenomics Economics in Banking & Finance_ Book Chapter Two Blue and Orange (p.53 to 60) + The Value System_Psychosocial DNA of Capitalism (Example) - Listen to LP1 Podcast Series Session 3 Session 4: Value System Theory Overview_Book Chapter 14: Green (p. 260) and Chapter 15: Yellow (p. 274) and Values Systems Theory in Leadership & Management Chapter 7 (p. 127 to 132) + Also Read: Memenomics Economics in Banking & Finance_ Book Chapter Two Green and Yellow (p.60-65) + Value System_Psychosocial DNA of Politics (Example) - Listen to LP1 Podcast Series Session 4 - Assignment Submission Due Date: January 6th, 2016 - Listen to LP1 Podcast Series Assignment Brief - Assignment Feedback on the Assessment will be provided on Turitin 15 working days after Due Date: January 28th - All papers should have the proper academic referencing and footnotes 3