“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.