Changes at Scout Mortgage

Topics: Decision making, Risk Pages: 5 (1606 words) Published: January 25, 2011
Changes at Scout Mortgage
Siva Krishnajee
Dr. Steven Englehart
Strayer University
BUS520 – Leadership and Organizational Behavior
June 14th 2010

Scout Mortgage is a private mortgage company in Scottsdale, Arizona owned by John Mangels and Steve Walsh (Hellriegel & Slocum, 2009). During the real estate boom, the company grew very fast and funded more than $600 million in mortgages and employed 25 loan officers and 25 support staff (Hellriegel & Slocum, 2009). The loan officers of Scout were commission based employees and they earned good amount of money during the real estate boon. In fact, the top four performers of the Scout mortgage earned between $250, 000 to $300,000 annually (Hellriegel & Slocum, 2009). But, the downturn in real estate market had an impact on Scout as well. The volume of mortgage funding dropped to $240 million in 2006 (Hellriegel & Slocum, 2009). The drop in volume of mortgage funding in turn affected the operational expenses of the company in terms of payroll taxes, benefits and marketing costs (Hellriegel & Slocum, 2009). Hence, the owners Mangels and Walsh took actions to improve the performance of the company. The measures took by the owners had an impact on the senior level employees of the company and they left the company.

Changes in the work environment
Organizations all around the world face changes. Change is inevitable in all the walks of the human beings. Organizations are no exceptions to that as they are governed, managed and made up of human beings. Organizations that are well positioned to change will prosper, but those that ignore change will flounder (Hellriegel & Slocum, 2009, p. 493). The most significant factors of change in 21st century in the work environment are globalization of markets, technology, social networks and generational differences (Hellriegel & Slocum, 2009). Globalization has opened many markets for the companies worldwide and companies serve in many countries (Hellriegel & Slocum, 2009). Hence, globalization resulted in multi culture, outsourcing, communicating with people from different countries, operating in different time zones, and different language in the working environment. Working in the global level requires the companies to employ top of the technology in the company. Information Technology (IT) enables the company to work in the global level seamlessly. IT has changed the way that the employees used to work and communicate in the work environments. Employees telecommute, work from home or work from different countries that are part of the same team. Employees use email, messenger, internet meeting, blogs and WIKIs to communicate with each other. Social networks have both positive and negative impact in the work environment. The positive impact is, the companies either create or use a focused social network to market and sell their products. The negative impact is employees use the social network for their personal use which is not ethical and costs for the company as well. The work environment has three generations of people working together because of late retirement age and the requirement to work for their survival (Hellriegel & Slocum, 2009). The old generation follows their own way to achieve the tasks and new generation is techno savvy to achieve their tasks. The old and new is a combination of experience and motivation to work together to achieve results. But, often the old and new generation combination creates problems in the company which they are trying to manage. Employee’s reaction to changes

Employees do not support changes unless otherwise they find valid and compelling reasons to accept the changes (Hellriegel & Slocum, 2009). Employees are concerned about their careers, growth in the job ladder, salary and other benefits (Hellriegel & Slocum, 2009). If there is an impact on the above said concerns, then the employees are reluctant to...
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