Behavioral management theory application on AmEx
The American Express credit cards (AmEx) company had an alarming loss of close to 13.6 percent to $54.14 just after it had given its fourth quarter results and the strategic plan for 2016 and 2017 (Varadhan, 2016). This great loss has been disappointing to the management of the company. The managerial company has to work out on better strategies to ensure that the company does not incur future loss and most importantly, it improvises new marketing strategies to compensate for the losses incurred. The company has been applying both communication and decision-making besides, motivation to increase the productivity.
Communication and decision-making
Communication and decision making has been an important practice used by management in the process of recovering from the loss. Some members of the managerial team are optimistic and have already come up with creative ideas on how to resolve the challenge. They are self-motivated and in the scheduled meeting they have appeared on time. A few members of the managerial team are however pessimistic, they seem not to be bothered at all with the companies loss and have not made any initiative to help with ideas. The head of the managerial team have to ensure that at least every member of the group is given a chance to say what they believe caused the loss and suggest ways to help avoid such losses in future. To ensure this, the management gives a brief report on the current financial state of the company and then explains that he has called the meeting to develop good strategies that will ensure future profit of the company (Griffin & Moorhead, 2013). Before allowing members to start giving suggestions he explains that cooperation and team work is important and that personal rivalry between members should be put aside for the purpose of the task.
Having figured out the major challenges the AmEx managerial team decides on the way forward for the company. The team is divided into three major groups for task assignment. In each team head of the managerial team ensures that there is at least majority optimistic employees and minority pessimistic employees to ensure that no groups slugs behind. The first group is assigned with the task of seeking and negotiating partnership with major corporations which will boost their capital. The second group is assigned with sales and marketing of the company’s products. Finally the third group is assigned with the task of devising mechanisms to improve value of the products.
Motivation and productivity
The head manager also promises to promote employees who meet the set targets and show excellence in their work. Employees are also ensured of compensation for any extra cost or time incurred on them by the company. Lastly but not least the head manager explains that any achievement at personal and group level not only helps the company but also develops the individual. A sense of accomplishment and achievement brings joy and fulfilment to the group.
Evaluation
In conclusion, it comes out that AmEx application of behavioral management is a significant step towards improving productivity amidst the loss witnessed. The company ensures proper communication among the relevant departments while also ensuring that every individual within the organization is involved in decision-making. This ensures that every member have a direct involvement in exercising strategies put to recover from losses. In addition, motivation of the employees is also an important way to improve their productivity because this strengthens their loyalty towards the company’s operations.
References
Ackroyd S. (2004). Methodology for management and organisation studies: some implications of critical realism. In Critical Realist Applications in Organisation and Management Studies. Routledge: London
Griffin, R. W., & Moorhead, G. (2013). Organizational behavior: Managing people and organizations. Mason, OH: South-Western/Cengage Learning.
Varadhan, S. (2016). AmEx shares fall as dodgy forecast points to identity crisis. Reuters,Web. Retrieved on 22nd Jan 2016 from:
http://www.reuters.com/article/us-amex-results-forecast-idUSKCN0V02FM
