CULTURE & HR STRATEGY

Goldman Sachs' Culture & HR Strategy

Goldman Sachs' Culture & HR Strategy

Introduction

Critics have lined up against Goldman Sachs Group in the days since the U.S. Securities and Exchange Commission announced a fraud lawsuit against the Wall Street giant. The SEC did little during the past 10 years to stop a technology bubble, Ponzi schemes and the buildup of the housing, stock market and banking crises. When federal regulators finally decided to act, they missed the mark (McGee 2010). Nevertheless, many see the allegations announced April 16 as an opportunity to knock Goldman down a notch from its perch atop the investment banking world. That would be a mistake which would hurt American competitiveness in the global arena.

Rather than regulate Goldman down to the average, a more rational approach would be to create an environment in the United States that rewards financial services innovation and helps other companies rise to Goldman's level. The world needs trailblazers at the top of the investment banking pyramid, and Goldman fills this role in a way that gives the United States an edge in global financial services (Harris 1994). This edge creates jobs, boosts incomes and improves standards of living in the United States. More competition at the top would generate even more of these benefits.

Values and belief system plays an important role in creating cultures; they shape positive discretionary behaviour within the organisation. Culture nurtured over a long period helps firm's to perform well. Main focus of Goldman Sachs' is to provide excellent customer services. As per Tony Hiesh (CEO), 'if we get culture right, great customer service will happen on its own....by delivering great customer service, our customer become repeat and tell their family friends about us'. Tony Hiesh created a culture web (figure 1) within the organisation by introducing core values which connects Goldman Sachs' employees, customers, partners &investors with each other.

These core values has driven all key decisions right from hiring to customer service to creating new internal & external relationships. Below table 1, depicts how these core values and belief helps to create culture in the organisation.

Elements of Belief system

Supporting Evidence

structural Hierarchy

contracts

control systems

ways of working

stories & symbols

power structures

1

Deliver WOW Through Service

power of autonomy

 

 

365 days return policy, no-drop shipment (inventory all products) ,24x7 service1-800service no.

Goldman Sachs' is to WOW with service and experience, not with anything that relates directly to monetary compensation

 

2

Embrace and Drive Change

 

 

 

constant change is important to stay ahead of competition

 

 

3

Create Fun and A Little Weirdness

 

 

 

 

 

Encouraging weirdness & fun is that it encourages people to think outside the box and be more innovative.

4

Be Adventurous, Creative, and Open-Minded

 

 

 

freedom of expression , team work ,loose work environment

Goldman Sachs' Logo carries Tag line 'Powered by service' 

 

5

Pursue Growth and Learning

 

extensive training personal and professional

 

extensive training personal and professional

 

 

6

Build Open and Honest Relationships With Communication

collaborative structure

 

cultural control

freedom of expression between employee, customer, vendors

Culture book 

 

7

Build a Positive Team and Family Spirit

 

 

a lot of emphasis on a team and work like ...