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Case: the Overpaid Bank Tellers

In: Business and Management

Submitted By Dazed15
Words 720
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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…...

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