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Performing Performers Instead of Leaders

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Submitted By alycat25
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Pages 19
Promoting Performers Instead of Leaders
Anonymous
Leadership and Organizational Behavior

INTRODUCTION State Street Bank and Trust is considered to be one of the leaders in today’s financial industry. In fact, State Street is among the world’s largest global investment firms for institutional investors and high net-worth individuals. The company serves as a bank and trust for asset management, responsible for managing, servicing, researching, and trading for over eighty percent of the top one hundred investment managers. When the United States economy hit an all-time low in 2009, the company’s response was cutting all positions by $10,000 dollars. While our country remains in a recession like state, the organization has continued to cut all positions salary levels; resulting in high turnover rates and a lack in recruiting high quality candidates. High turnover rates and the “promote within” company cultural belief has left most departments with inexperienced or inadequate upper management. State Street has also cut ninety percent of their IT department in an effort to reduce expenses; leading to employee frustration and decreased productivity. Several employees are getting terminated due to their lack of motivation and productivity; others take promotions elsewhere and search for healthier company cultures. Recently State Street has undergone thirty percent turnover at the manager level within three months. The turnover experienced at State Street was directly related to promoting performers instead of leaders, being understaffed, and a lack of strong, experienced upper management. Individual leadership was not tested or reviewed prior to promotion, resulting in promoting the incorrect people for the job. In addition, due to unprepared, unorganized, and inexperienced upper management our department became understaffed. To complicate the problems

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