Premium Essay

Case: the Overpaid Bank Tellers

In: Business and Management

Submitted By Dazed15
Words 720
Pages 3
CASE

The Overpaid Bank Tellers
State Bank is located in a southwestern town of about 50,000 people. It is one of four banks in the area and has the reputation of being the most progressive. Russell Duncan has been the president of the bank for 15 years. Before coming to State Bank, Duncan worked for a large Detroit bank for 10 years. Duncan has implemented a number of changes that have earned him a great deal of respect and admiration from both bank employees and townspeople alike. For example, in response to a growing number of
Spanish-speaking people in the area, he hired Latinos and placed them in critical bank positions. He organized and staffed the city's only agricultural loan center to meet the needs of the area's farmers. In addition, he established the state's first "uniline" system for handling customers waiting in line for a teller.
Perhaps more than anything else, Duncan is known for establishing progressive human resource practices. He strongly believes that the bank's employees are its most important asset and continually searches for ways to increase both employee satisfaction and productivity. He feels that all employees should strive to continually improve their skills and abilities and, hence, he cross-trains employees and sends many of them to courses and conferences sponsored by banking groups such as the American Institute of Banking.
With regard to employee compensation, Duncan firmly believes that employees should be paid according to their contribution to organizational success. Hence, 10 years ago, he implemented a results-based pay system under which employees could earn raises from 0 to 12 percent each year, depending on their job performance. Raises are typically determined by the bank's HR Committee during February and are granted to employees on March 1 of each year. In addition to granting employees merit…...

Similar Documents

Premium Essay

Baring Bank Case

...and the Collapse of Barings Bank __________________________________________________________________________________________ Commodities Trading: Nick Leeson, Internal Controls and the Collapse of Barings Bank By Sam Bhugaloo Page 1 of 21 Commodities Trading: Nick Leeson, Internal Controls and the Collapse of Barings Bank __________________________________________________________________________________________ Table of Content Introduction.................................................................................................................................3 Background and Overview… ......................................................................………… ........ .....4 Barings Bank...............................................................................................................................5 Internal Controls at Barings Bank.............................................................................................13 Lessons Learned and Steps Taken to Preclude Recurrences . ..................................................15 Conclusion ................................................................................................................................18 References.................................................................................................................................20 Page 2 of 21 Commodities Trading: Nick Leeson, Internal Controls and the Collapse of Barings Bank......

Words: 5242 - Pages: 21

Premium Essay

Metro Bank Case Study

...Case Study Metro Bank Breaking the Mould but Breaking the Malaise? An assessment of whether Metro Bank, with its distinct model, can bring about a cultural revolution in the UK banking market Authors: Ben Robinson & Thomas Krommenacker As the first new entrant in the UK banking market for over 100 years, Metro Bank is generating plenty of headlines…. UK’s Metro Bank beats target on new accounts Metro Bank works magic on customers Does the first new British bank since the 1800s herald the start of new competition for your money? the established players, despite blotted copybooks, are deeply entrenched ... the barriers to entry are formidable Metro Bank a fascinating case study in what customers really want Metro Bank model backed by banking commission Metro bank opens on Sunday as battle for high street hots up Metro Bank Speeds Growth The UK’s newest bank must show a genuinely creative side beyond the promotional gimmicks dispensed at the opening of the first branch Banking revolution or the emperor’s new clothes? … a challenge to the tarnished incumbents is long overdue. But its American-style “fun” marketing may not be enough to win over jaded British account holders Metro: first bank for 100 years opens its doors. Metro Bank has promised to revolutionise the British banking experience. Temenos Case Study Contents 01 02 Executive Summary History and Background of the UK Banking Market • The Market Today • Consumer......

Words: 8376 - Pages: 34

Premium Essay

The Bank of America Case

...CASE STUDY: BANK OF AMERICA George Koduah October 30, 2012 CASE STUDY: BANK OF AMERICA Introduction Modern marketing practices have assumed a global perspective such that organizations must continually innovate their product and service offering to stay competitive and profitable. This situation has been exacerbated by increase consumer access to information, consumer quest for individuality, better product/service and better pricing. In the case of Bank of America (BoFA), such issues become very important during the global recession of 2007 and thereafter with its decision to embark on mobile banking. Strategic issues and problems The introduction of mobile banking by Bank of America was necessitated by the global recession which dwindled its retail section as customers increased the use of their money at the bank, with and the banks losses in other areas of the bank’s operations due to miscalculated acquisitions and bad lending practices (Gupta & Herman, 2010, p. 3). Mobile banking was one of management’s strategic approaches to rejuvenate the bank’s financial fortunes, maintain or increase its customer base and remain profitable. Management must make a decision on how to package the mobile banking program to the market considering cost and coverage to differentiate itself among competitors, and benefit from the various profit opportunities offered by mobile banking. The strategic issues facing BofA are the consideration of the extent mobile banking coverage,......

Words: 1679 - Pages: 7

Premium Essay

Mountain Bank Case

...1) What competitive business strategy do you recommend for Mountain Bank? I’d recommend a focus business strategy. In this case Mountain Bank should focus on its retail banking business line because, firstly, they already have a big share of the market and building on the competitive advantage that they have it would be easier to increase it, secondly, according to the case, they can leverage customers in retail banking to more profitable real estate and corporate business lines which would also increase profits. 2) Based on the universalistic approach and commitment strategy, what types of human resource practices do you recommend for Mountain Bank with respect to its tellers? As “customers’ experiences with tellers is the single most important driver of customer satisfaction”, I recommend the following types of human resource practices in job tasks, empowerment, communication, training, compensation, and staffing areas: broad job responsibilities, meaningful tasks, high levels of responsibility, building employee confidence, encouraging suggestions, extensive new employee training, formal training for everyone, pay for performance, very selective recruiting, and promotion of the best workers. 3) Which of the four human resource strategies do you recommend for Mountain Bank with respect to its tellers? Why? I recommend a committed expert HR strategy because it would be aligned with business strategy and because the job requires specialized skills such...

Words: 262 - Pages: 2

Premium Essay

Bank of America Case Study

...Executive Summary Bank of America Bank of America Corp. Group Members: Mary Bruton Shawn Harsaran Carlos Leal Tom Egurrola Jennifer Stanis Broward College MAN4720 September 09, 2013 Professor James Popino According to Bank of America, they’re focusing on creating real, meaningful connections with individuals, businesses and communities to help them connect with what matters most. Bank of America is proud to partner with 57 million customers, bringing them skills and expertise, to help make their financial lives better. (Bank of America company overview, n.d). These ideas and objectives are further exemplified through Bank of America’s mission and vision statements, as well as its objectives and strategies. Mission Statement According to David (2011), the mission statement answers the question “What is our business?” A mission statement is more than a statement of specific details; it is a declaration of attitude and outlook. Bank of America’s mission statement is “We built Bank of America to meet the fill range of financial needs for people, businesses, and institutional investors; to attract the best employees to serve our customers and clients; to support the communities where we do business; and to create long-term value for our shareholders.” Vision Statement According to David (2011), a clear vision provides the foundation for developing a comprehensive mission statement. Bank of America’s vision statement is “Our......

Words: 1481 - Pages: 6

Free Essay

Wellfleet Bank Case Study

...Wellfleet Bank face? Wellfleet Bank faces a variety of risk in its daily operations. Risk faced by Wellfleet Bank associated with this case study includes market risk when there are changes in interest rates, exchange rates and other prices. This is especially true for Wellfleet Bank because they are considering a $1 billion loan to Gatwick Gold Corporation (GGC), a South African gold producer. Additionally, operational risk are linked through Wellfleet Bank's daily activities that include auditing, monitoring and support systems. An example of operational risk for Wellfleet Bank would be when the group head of client relationships and the deputy group chief risk officer disagreed over a proposal, then the Chief Credit Officer would take the ultimate decision. Credit risk will be directly and indirectly affected by exchange rates, interest rates and gold prices. Moreover, foreign exchange risk and country or sovereign risk would directly impact Wellfleet Bank's operations because it is an international organisation that has expanded operations to 78 countries (Lange, Saunders, Anderson, Thomson & Cornett 2007, pp. 96). Other risk faced by Wellfleet Bank includes interest rate risk when maturities of its assets and liabilities are mismatched. Off-balance-sheet risk as a result of their contingent assets and liabilities. Technology risk when there are technological investments. Liquidity risk when they are sudden surge in liability withdrawals. Insolvency risk when Wellfleet......

Words: 1250 - Pages: 5

Premium Essay

Bank of America Case

...Bank of America Case Analysis Bank of America has always sought to be the leader in perceiving the technological changes of the market and react to it in the fastest way possible. Though it has developed a mobile application for its customers to utilize for their daily banking transactions, it is faced with the challenge of integrating the demands of its LOBs to enhance the existing application to put in the functionalities pertaining to their business. The Bank of America executives have to make a decision as to what would be more feasible for them to do in this situation-make a new application for their LOBs, integrate the functionalities in the existing application or not to make any changes to the existing framework and let it function as it is. The Bank of America mobile application has helped the bank increase its retention rates and the overall customer satisfaction. While the mobile application is currently being used by its customers for basic account level transactions, it still has a lot of room to expand in the domains of Credit Cards and mortgage payments. The LOBs demands of cashing in on this technology seems to be legitimate and something that can be achieved at a lesser cost. But the customer’s apprehension to put their trust in the usage of this channel is something to be looked at before the bank starts utilizing its resources in developing or integrating the applications with the appropriate functionalities. Bank of America has a well-developed and......

Words: 1062 - Pages: 5

Premium Essay

Case - Charter Financial Bank

...Charter Financial Bank + NutriStar Project and Production Management Tutorial Group 8 Replacement-Paper for the FIRST test Case I - Charter Financial Bank Charter Financial Bank recently got the Idea to develop a Website to promote bank services, to provide access to customer account information, and to allow individuals to apply online for loans and credit cards. In order to develop this Websites Ray Chopper, Vice-President of Information Technology at the bank, was assigned for this task and asks for help. For easier demonstration I renamed the Activities as follows: Benchmarking | Activity A | Project Plan and Project definition Doc. | Activity B | Website Design | Activity C | Developing the Website's Database | Activity D | Developing and Coding the actual Web pages | Activity E | Developing and Coding the Website's forms | Activity F | Test and Debugging | Activity G | Task 1: What is the cost of completing this project if no overtime is used? Ho long will it take to complete the project? Costs of Completing this Project | Normal | | Activity | Time (Days) | Costs ($) | A | 10 | 15000 | B | 5 | 3750 | C | 15 | 45000 | D | 10 | 9000 | E | 10 | 15000 | F | 7 | 8400 | G | 3 | 4500 | Total | | 100650 | Table 1 The total costs of completing this project if no overtime is used are $100650 (Table 1) The critical path of the project consists of the path A – B – C – (D or E) – G and has duration of 43......

Words: 326 - Pages: 2

Premium Essay

Case Study: Ethical Banks

...Cason Keith ALED 424 3/10/15 Boyd Case Study 2: Ethical Banks Moral objectivism is the view that what is morally right or wrong depends on what someone thinks. Jay McGuane had put together a very diverse board of people with many different backgrounds and beliefs. This led to each of them having very different moral values. Some of them saw no problem with giving the loan the gun manufacturer, while others were extremely opposed. They each saw it differently because of their own personal beliefs. So moral objectivism was very apparent on the bank’s board of directors. In “Good to Great” Jim Collins talks about getting the right people on the bus before going anywhere. The right people are what is going to make it all work. Jay McGuane didn’t get the right people on the bus first and didn’t have an established direction so it made things very difficult. His board of directors were all way too different in their beliefs and they would never be able to agree on much of anything and there weren’t any clear guidelines to direct their way of thinking. Jay needs to go back to the beginning and get the right people on board so he can get where he wants to be. There really aren’t many defined values of Rocky Mountain Green Bank. They want to promote environmentally friendly and green companies, projects, and corporations but doing business with just those companies is not profitable. Other than that, there is no real business direction because Jay McGuane never laid......

Words: 440 - Pages: 2

Premium Essay

Alpen Bank Case Study

...DATE: Oct, 18th, 2013 CASE: ALPEN BANK CLASS: MBA586 GROUP C: CHIAWEN ‘TRACY’ CHANG CHIENYU ‘SHAWN’ HSIAO DANIEL GUTIERREZ NING ‘NINA’ BAI WENSHAN ‘NESSA’ XU Intro: Having 15 branches in Romania, Alpen Bank, a premium banking service provider is trying to expand its business in Romania and launch its credit card system. Considering the low per-capita income level and low acceptance of credit cards in Romania, we evaluated the profitability of this plan carefully and suggest Alpen Bank to enter the Romanian credit card market and explore the middle class in long run. PEST Analysis: Political • Capital market in Romania is more stable through annex to the European Union and implementation of directives. • The European Legislation to protect investors, safeguard market integrity by establishing harmonized requirements governing the activities of authorized intermediaries and to promote fair, transparent, efficient and integrated financial markets. • Substantial ascending evolution of Romanian capital market since 2004 helped by the government opening it for competition. • No limit of foreign participation in commercial companies (up to 100% ownership in Romania), full repatriation of capital and profit, equal treatment of foreign and domestic investors. Economic • Macroeconomic indicators (GDP, inflation rate, unemployment rate, etc.) registered in the past have not reached a stable point......

Words: 1831 - Pages: 8

Premium Essay

Case Study the Overpaid Bank Teller

...The Overpaid Bank Teller Human Resource Management 1. If you were on the bank’s HR Committee, what would you do regarding raises for the tellers? I think first of all the State Bank should not base their wages off of a wage survey conducted by a competitor. Utilizing a third party to conduct a wage survey before making such a decision would be a much better option. I also think that lowering the raises that the teller will receive, as they have not been told how much their raises would be. Therefore reducing raises does not seem like it would have an impact on the employee satisfaction or their productivity. 2. How much faith should the HR Committee place in the accuracy of the wage survey? “Obtaining a wage or salary survey requires a small or large business to hire an outside company to compile the data or collect the information using individual employees and businesses from across the particular industry. This data is necessary for a business to create competitive salary packages and to comply with state and federal regulations regarding prevailing wages”. Lister., J There are some things that I think should be considered in regards to a wage survey. What other information is missing? Do the other banks have Spanish speaking individuals? Are the tellers the only ones that speak Spanish or are the loan officers also bilingual? People that are bilingual are often paid more than their counter parts that only speak one language. It is also......

Words: 643 - Pages: 3

Premium Essay

Mountain Bank a Case Study

...  Mountain Bank A Case Study I. I would recommend that Mountain Bank implement the following competitive strategy for the reasons given: a. Mountain Bank should follow the differentiation strategy. i. Mountain Bank should follow this strategy because few organizations can successfully use the cost leadership strategy. One problem with a cost leadership strategy is usually only one organization can be the lowest-cost provider in any industry. The organization that is often successful at the cost leadership strategy is an organization that has a large share of the market (p. 48). Mountain Bank does not have a large share of the banking market. Mountain Bank is located in the northwest United States. According to current estimates Mountain Bank has about fifty percent of the market for retail banking, about twenty-five percent of consumer lending market, less than ten percent of the real estate and mortgage banking market, and less than five percent of the corporate banking market in its area (p. 69). ii. Another reason that Mountain Bank should follow this strategy is one of the best methods for achieving gains in the real estate banking and corporate banking is cross-selling. Cross-selling occurs when tellers and customer service representatives convince customers with retail accounts to open corporate accounts or to obtain home mortgages from Mountain Bank. Recent studies have found that bank tellers are critical to the success of Mountain Bank. One......

Words: 1196 - Pages: 5

Premium Essay

Case Analysis for Alpen Bank

...Case Analysis: Alpen Bank The main issue that Alpen bank is facing is whether or not they should launch the credit card business in the Romania market and which group of target audience they should select while applying the launching strategy. Moreover, specifically to Carle, he needs to come up with a program from which, Alpen bank can generate at least €5 million in profit within 2 years. Moreover, clarified positioning strategy and customer segmentation is also needed to secure the success of the program. In the case, it seemed that Alpen had the opportunity to act since economic environment in Romania had changed from 2006 after its entering into the EU: the economy there was developing; a growing trends of luxury purchasing emerged; there was also an increasing likeliness of using card instead of cash; other competitors had already taken similar strategies in the market; Alpen’s traditional banking business had a great penetration throughout the country, etc. However, such a growth was not enough compared with other countries of the region. Besides, to launch the credit card business in Romania might be risky and do harm to the customer base. Then what should Alpen do? According to the charts 4 & 5 in the appendix, regardless the target audience, launching credit card business in Romania is profitable with the premise that if the customer base is big enough. (All the calculations in the charts were based on revenue potential and acquisition costs.) Comparing......

Words: 2151 - Pages: 9

Premium Essay

Maquire Bank Case Study

...Macquarie Bank Case Study Macquarie bank case study is the study related to the dynamic change occurs in the organization. It focuses on the changing interventions, business strategy and change in the HR Practices to be followed. Macquarie is the bank present in the Australia. And what changes occurs strategically in this relatively small banking organization. This case study deals with the various aspects of the organization and complexities and transition occurs in relation to other departments and economic factors. Business strategy, Change strategy and human resources practices are knitted together in an organization and have a great impact in overall structuring and functionalities of an organization. Not only will this approach of change being run in organization have a powerful impact on the appropriateness of HR interventions and practices in particular divisions or strategic business units. So understanding an organization’s change strategy is as critical to study as its human resource practices and its business strategy. Q1. Discuss the overall structure of the organization and then changes it felt after deregulation? Macquarie Bank is a relatively small organization in an Australian Market. Stating about the structure its function based on the collegial partnership system. It has some kind of units that can take autonomous decisions. It does not have a well developed Human Resource in an organization. Each of the units is well structures and inter-linked with......

Words: 322 - Pages: 2

Premium Essay

Case Study: Bank of America

...Case Study: Bank Of America  How it learned that what customers really want is to Keep the Change  THE PROBLEM  Innovation in services is rare. In financial services, the last big breakthrough was online banking, nearly a decade ago. In October, 2005, Bank of America (BAC ) brought out a radically different product that broke the paradigm. It's called Keep the Change.The cocept solves a critical banking problem -- how to get consumers to open new accounts. The product works like this: Every time you buy something with a BofA Visa debit card, the bank rounds up your purchase to the nearest dollar and transfers the difference from your checking into your savings account. It also matches 100% of transfers for the first three months, and 5% of the annual total, up to $250 a year. Since the launch, 2.5 million customers have signed up for Keep the Change. Over 700,000 have opened new checking accounts and 1 million have signed on for new savings accounts. THE RESEARCH  How did Bank of America create Keep the Change? In the spring of 2004, it hired an innovation and design research firm in Palo Alto, Calif., to help conceive of and conduct ethnographic research on boomer-age women with children. The goal was to discover how to get this consumer segment to open new checking and savings accounts. For the next two months, a team of five BofA researchers and four researchers from a West Coast consulting firm visited Atlanta, Baltimore, and San Francisco. They observed a......

Words: 812 - Pages: 4

Yesterday o Utatte | World of Dance | Glary Utilities Pro v2.43.0.1419