“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.