ld Family Bank Case Analysis

Problems:
Macro:
1) Lack of loyalty to the bank could affect the effectiveness of the bank.
2) The processes for setting pay rates are poor and needs to be reviewed.
Micro:
1) The computer services department, although all employees work well together and have a strong team, are not loyal to the bank.
2) The computer services department feels that they are unappreciated by management.
3) The computer services department may be underpaid compared to employees with the same job skill at different companies.
4) The working conditions for check sorting employees is undesirable.
Causes:
1) Compensation may not have been properly addressed with computer services employees.
2) Managers were not aware of how the computer services department felt about the pay situation and the emphasis on production rather than support units.

Systems Affected:
1) Psychosocial: There is no loyalty to the bank from the employees in the computer services department. That affects productiveness as well as employee morale. They do not feel that their work is appreciated.
2) Managerial: Managers were unaware of how the computer department felt until H. Day examined the turnover, absenteeism, and productivity figures.

Alternatives:
1) H. Day could do research on the pay rates of employees in similar positions at other companies to make sure that their employees are paid competitively with others.
2) H. Day could call a meeting between the computer services employees and see what it is they expect from the company as far as pay and work appreciation.
3) H. Day could tell employees that if they are not willing to make an effort to increase productivity, he will replace them.

Recommendations:
1) H. Day should call a meeting between the computer services employees and see what it is they expect from the company as far as pay and work