“Goldman Sachs Banks on Cultural Capital”

“Goldman Sachs Banks on Cultural Capital” Anthony Palmieri Andrew Argiriou

Economic Dimension • The turmoil that characterized American and international markets since the crisis caused by the collapse of the subprime market in 2006 seemed to leave Goldman Sachs unscathed.

Competitors • As Morgan Stanley and Citi Bank were suffering severe losses due to the general trend of failures due to bad loans, Goldman Sachs was reaping profits.

Goldman Sachs • With profits of 11.6 billion in 2007, record stock prices, and the feeling of confidence that characterizes success in a market economy, Goldman Sachs maintained its position as one of the most respected companies in the United States.

Flat Managerial Structure • Through its flat management structure and unique approach to decision making Goldman Sachs has fared, at least until now, better than its rivals.

Shared Leadership • Under the guidance of former New Jersey governor Corzine and co-chairman Paulson, Goldman Sachs made the decision to become a public company enabling it to raise billions of dollars.

Diversified Investments • Through management procedures, Goldman Sachs has learned better than others, as the text notes, “the difference between high risk investment and overly risky adventuring” (Griffin 92).

Goldman Sachs Culture • Executives get involved with the recruiting process and that is the start of how Goldman Sachs employees are a tighter group than other competing companies

Goldman Sachs Culture • There are three core strengths that the firm integrates into the culutre • Loyal to Employees • Approach to Recruiting • Its Command Structure • With those 3 strengths the company is very efficient and the workers average salary is 600,000 a year.

Culture and the Financial Crisis • Goldman Sachs culture is one of the main reasons that the company went virtually unscathed during the financial crisis. The durability to change the goals from making a profit to minimizing losses is attributed to the culture.

Goldman Sachs Culture • The mix of extreme aggression, individual ambition, and robot like team work all attribute to the profitability and durability and is almost impossible to replicate.

Models of Organizational Effectiveness • The internal process approach is pretty much having a good work environment and all business transactions go smoothly. • Company focuses on company morale and employee satisfaction.

“Goldman Sachs Banks on Cultural Capital”