Goldman Sachs Group Analysis

The Goldman Sachs Group, Inc. is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world (goldmansachs.com, 2018). From 2005 to 2007, Goldman issued and underwrote many mortgages and securities that had been backed by residential loans borrowed by consumers with poor credit ratings. In 2007, this helped tip the economy into a recession after the housing bubble causing investors to lose billions of dollars (Shen, 2016). General

If I were working in a company that struggled like Goldman Sachs, my organizational commitment would be affected because of this crisis. My dedication and outlook towards the company will not be the same. Goldman Sachs working environment will drastically change. Investors will no longer trust the company and employees will continuously talk about the company’s reputation affecting employee’s job performance. With the ongoing issues the employees may not perform to their full potential. Therefore, Goldman Sachs needs to make sure they’re keeping employees informed with updates before the media does. This will help keep employees at ease and possibly get them to start engaging in behavior that will help re-build the company’s reputation. If employees engage in voluntary activities that contribute to the organization this will help improve the quality of the setting in which work takes place (Colquitt, LePine, & Wesson 2017). Even though the company has gone through a very difficult time I will give it a second chance and remain an employee. The impact will be felt most intensely with my continuance commitment. I will weigh the pros and cons of leaving the organization by analyzing my salary and benefits, as well as the amount of years I have working with the company. This will provide me with a better analysis to see if staying with the company is a greater benefit

Once I decide to start working for a company is because I believe in the service we are providing and want to be a part of their mission. It will be difficult to accept the mistake the company has made after all my years of employment and identifying with the company’s goals and values. But, we also need to understand that not everything or everyone is perfect. Companies can also make mistakes, but what they do and how they act afterwards is what sets them apart. There are ways in which such a crisis can strengthen organizational commitment. Goldman is a great place to work, but no one would ever call it an easy place to work. The upside of admission makes it worthwhile- and many employees say those difficult years after the meltdown had the effect of bringing people together in way that boosted corporate self- esteem (Vandermey, 2014). John Rogers, the firm’s executive vice president and chief of staff to the last three CEOs of Goldman Sachs states “I will always believe that the culture was one of the most important factors in getting us through the crisis” (Vandermey, 2014). If a corporate culture can get through this type of crisis, the company can get through anything. Sometimes when a crisis like this happens the bond between the employees and the organization becomes stronger. They understand that the company is going through a difficult time and coming together as one is beneficial. Normative