Its been long time since I have blogged. A lot of events have taken place these days. Economists believe that it will take decades for Euro Zone to pop out of recession. The new leaders of the member states of Euro are not very much interested in saving their fellow members' sinking economies. Olympics 2012 is more about security display than athletics (here goes the defense budget!) and last but not the least the tremors and shocks the banking industry has witnessed recently.
So moving ahead, the following are the lessons which have been taught to us by this so-called banking industry:
1 - Success is down to my genius; failure is caused by someone else. When banks perform well, and achieve higher profits, the executives and bosses (the fat cats) own the credit (the bonuses!!!) for their strategic lenses and inspiring leadership. When scandals break, no executives are found personally culpable, but the organization as a whole, and mainly the tactical and operational level staff suffer as the blame trickles down the very hierarchical and bureaucratic organizational structure of banks.
2 - The laws of supply and demand are not applicable to the banking industry. In a job market, an excessive supply of labor puts a downward pressure on wages, but this is not the case in the banking industry. The wages of the executives are excessively high, even when there are numerous applicants for limited positions.
3 - 'R' for Retirement and not Resignation.When bankers 'quit' in critical times, they get paid like hell. The banks want to avoid lawsuits and bad press as it further spoils its standing in a highly competitive and 'Ir-regulated' industry. The more trouble the bank is in, the less media coverage it will want and the better the negotiation position of the 'greedy' executive.
1 - Success is down to my genius; failure is caused by someone else. When banks perform well, and achieve higher profits, the executives and bosses (the fat cats) own the credit (the bonuses!!!) for their strategic lenses and inspiring leadership. When scandals break, no executives are found personally culpable, but the organization as a whole, and mainly the tactical and operational level staff suffer as the blame trickles down the very hierarchical and bureaucratic organizational structure of banks.
2 - The laws of supply and demand are not applicable to the banking industry. In a job market, an excessive supply of labor puts a downward pressure on wages, but this is not the case in the banking industry. The wages of the executives are excessively high, even when there are numerous applicants for limited positions.
3 - 'R' for Retirement and not Resignation.When bankers 'quit' in critical times, they get paid like hell. The banks want to avoid lawsuits and bad press as it further spoils its standing in a highly competitive and 'Ir-regulated' industry. The more trouble the bank is in, the less media coverage it will want and the better the negotiation position of the 'greedy' executive.
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