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Management Communication
Name:
Institution:
Date:
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Question 1: Barclays Communication Crisis
The event that led to the communication crisis for Barclays was the coincidence that took
place by having the bank close many of its branches while sharing advertisements of going big.
Having the two run together made individuals think that closing the different branches was part
of Barclays' Bank plan of what they termed as going big. Therefore, individuals had mixed
perceptions concerning this strategy. They wanted to avoid associating with a bank claiming to
go big while closing its branches in specific areas. Some of the negative perceptions that came
about from this communications crisis included the prioritisation of profits over people,
discrimination against certain groups of individuals, and the promotion of loss of trust among its
customers.
The perception of focusing on profits over people was promoted by the fact that going
big, as Barclays termed its advertisement, would mean that the bank makes more money while
closing its branches, which meant that it would lose customers at the same time. For a business
to be successful, it needs to strengthen the existing business-to-customer relationship. Whatever
product or services a company provides, it should meet the expectations of its clients for this
condition to be met (Agustina et al., 2020, p. 1992). When it fails to do so, individuals opt not to
purchase the company's products or services. When Barclays Bank shut down its branches in
places that were primarily beneficial to people, individuals perceived that the bank no longer
considered them important individuals. This action affected the business-to-customer
relationship. At the same time, announcing the bank's plan to go big meant that it would employ
a strategy that did not involve its customers. Hence, it looked like the bank only wanted to make
more money for itself but did not care about its services to everyone.
The other perception people had was that of discrimination of specific groups of
individuals. When Barclays Bank was closing its branches, many of the branches to be closed
were in rural areas. The activity was likely to promote the notion that going big for a bank means
that it should focus its operations on urban areas. One would expect that a big business would
concentrate on everyone because all customers contribute to its profits. However, closing
branches while claiming to go big promoted the idea that Barclays Bank did not see individuals
in rural areas as people with the potential to contribute to the bank's growth. As a result, it was
easy for them to think they were being discriminated against.
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In claiming to go big but failing to focus on the local market, the bank was promoting the
loss of trust among its customers. Barclays Bank was using the slogan 'a big world needs a big
bank' during its campaign for the big bank advertisement. The slogan is ideal to show that the
bank was going global, focusing on markets worldwide. However, the fact that it was closing
local branches during that period promoted the perception that it could not be trusted. When a
business organisation is going big and looking for markets in new territories, it should not make
it difficult for its current clients to invest in them. If they do so, there is no assurance that it will
maintain the new customers it gets, as trust will have been broken.
Since the main problem that led to the crisis was the fact that Barclays Bank developed a
strategy that shut out its customers from the services it provided, the action it could have taken to
prevent the crisis would be one to ensure that every customer gets the banking services they were
looking for. Instead of closing down 170 branches across the UK, the bank could have reduced
the staff in these banks to ensure that the customers still get served. One of the reasons for
closing a branch is that it needs to meet the projected expectations in terms of the number of
customers it attracts. However, this does not mean that a branch does not receive any customers.
To avoid the disappointment of a few customers and many staff members, one should consider
reducing the number of staff members. Loyal customers in rural areas would still get their
banking services and feel like they are part of the big bank movement.
The bank could also look for alternative means of providing services in the different
places where it felt that there was no need to have banks. At the time of the crisis, the technology
was not so developed to the extent that it could effectively support mobile banking. Kenya is one
of the pioneers when it comes to mobile banking, and it started doing so in 2007 (Alsmadi et al.,
2022, p. 3). Still, it is essential to note that such needs as those of closing bank branches but
serving people simultaneously contribute to developing technologies such as mobile banking.
Barclays ought to have researched developing a technology that allows individuals in rural areas
to make transactions if banks were closed, even though it meant the use of unstructured
supplementary service data (USSD). If the bank did so before closing its branches, individuals
would get the notion that the bank is going digital instead of getting the idea that it is shutting
people out of the banking services it is providing.
A different course of action that the bank should have taken to avoid the crisis was to
state how they were planning to go big. The bank only stated that it was going big and proceeded
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to close 170 of its branches. Therefore, individuals got the notion that closing branches was part
of its strategy to go big. However, if the bank had added more information to its slogan so that
people would know what it was planning to expand its territories, it would not have linked the
two forms of action. For example, the bank could have stated it was going big by focusing on
digital banking. Doing so while introducing a way to access their services digitally could
promote the notion that the branches were being closed because the bank was shifting to a more
futuristic approach. They would have felt the need to also be on par with the changing
technology so that they could participate in what was taking place.
Question 2: Ways of Communicating Changes
Simon Smith’s and Catherine’s task require a careful approach because of the potential
consequences it can bring around. Letting go of employees due to challenging times and offering
them early retirement can easily demotivate the employees who have been left behind. They are
left with fear that the termination of their contract can also take place at any time. Additionally,
such an act can negatively portray a company, which can make the public lose trust in the
organisation. As a result, individuals end up avoiding the products and services that the company
offers. Therefore, Simon Smith and Catherine need to make specific considerations when
conveying the required message so that Kingsley Publishing does not suffer severe
consequences.
One of the techniques to apply so the company can have a positive reputation is to offer a
notice to the employees whose contracts are to be terminated. Smith and Catherine ought to
consider the financial aspect of their employees. Depending on an individual’s needs, some may
be living from hand to mouth as they fully depend on the job to cater for their daily needs. By
choosing to provide a notice of dismissal instead of dismissing employees abruptly, Simon will
have taken a path of communication that allows such employees to organise their lives before
they get dismissed from work. One of the ways an individual can organise their life is by
spending their last salary the right way before getting another job. The other way is to have
sufficient time to look for another job before losing their main source of income. With such
considerations during communication, the employees being laid off will appreciate what Smith
and Catherine have done, and they will give positive reviews when being asked about the
experience they had with being laid off.
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Another consideration to make when communicating is to ensure that they explain to the
employees the reason for laying them off. Without a proper explanation for why one has lost
their job, the affected party tend to make assumptions about themselves and the company. One
might feel insufficient, thinking that they did not qualify to work in the organisation. Another
will easily think that the company only wanted to frustrate them, and the best way to do so was
to fire them without an explanation. However, by explaining to the employees why the company
is letting them go, Smith will be promoting an understanding among the employees that will
make them view Kingsley Publishing positively.
During communication, Smith and Catherine should ensure fair treatment of employees
and the documentation of what they speak. As much as the company is laying certain individuals
off, they should not be spoken to as though they are worse than other employees. If it had not
been for the economic condition affecting the publishing industry, these individuals would not
have been laid off. The unfair treatment of these employees can easily result in claims of
discrimination (Reilly, 2020, p. 2). Furthermore, when the conversation is not documented, the
laid-off employee can easily speak against the reputation of Smith in a way that questions their
credibility and that of the organisation. Hence, to ensure that such occurrences do not take place,
Smith and Catherine should document their communication with the employees.
When it comes to message delivery, Smith and Catherine should maintain a professional
tone so they do not sound judgemental or insensitive during the communication process.
Maintaining professionalism during such an occasion ensures respect between the individual
delivering the message and the recipient. The employee being laid off gets to know that there is
no personal reason for their work being terminated. Additionally, maintaining professionalism
during such an event helps to limit the potential hurt that can come about to either party. In
essence, if Smith had a close friendship with one of the individuals being let go, professionalism
would have required him to only do what he was required to do at work and to look beyond his
friendship. By putting his friendship aside and coming off as one who is doing his duty at work,
there will be no grudges between Smith and Catherine with the individuals being let go.
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References
Agustina, T., Muktamar, A., Huda, M., Maseleno, A., & Hashim, A. (2020). Management Effect
Of Business And Personal Relationship For Managing A Business. European Journal of
Molecular & Clinical Medicine, 7(11), 1991–1996.
Alsmadi, A. A., Shuhaiber, A., Alhawamdeh, L. N., Alghazzawi, R., & Al-Okaily, M. (2022).
Twenty Years of Mobile Banking Services Development and Sustainability: A
bibliometric analysis overview (2000–2020). Sustainability, 14(17), 1–14.
https://doi.org/10.3390/su141710630
Reilly, M. (2020). “Now You’re Just Somebody That I Used to Know”: How to Perform
Strategic, Defensible Terminations.
https://www.lanepowell.com/portalresource/lookup/wosid/cp-base-4-64206/
media.name=/How%20to%20Perform%20Strategic,%20Defensible%20Terminations.pdf
