Case Study Old Family Bank

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Name: Estelle Heard Class: Managing Innovation and Change * Background: The vice president of data processing at The Old Family Bank decided to examine the turnover, absenteeism and productivity figures of all the departments within the bank. The results were only surprising in two departments, check-sorting and data-processing. What the study revealed was even though both departments were the best in regards to the lowest turnover and absenteeism figures, the check sorting department ranked first as the most productive while the data processing department ranked last. * I. Problems

A. Macro
1. A large percentage of the data processing employees felt little loyalty to the bank. They felt the company only placed emphasis on production but not the support units. 2. Data processing employees felt that the operating departments had received higher pay raises and that there was a major gap in wages between these areas and that gap didn’t match the skill differences. B. Micro

1. The data processing team though loyal to each other, they are not loyal to the company. 2. The team feels in many ways disrespected, unappreciated and that the based on their pay the company doesn’t value their contributions. II. Causes

1. The management team over the data processing department has not done a good job of communicating the compensation model for that department and how it fits within the organization. 2. Also the management team wasn’t aware of how the employees felt, maybe if they had been more in touch with what was going on they could have had open discussions or done something else to try to alleviate the problem. III. Systems Affected

1. Productivity throughout the entire bank because data processing overlaps so many areas. 2. Inter-department relationships, because the data processing team have taken an “us versus them” attitude which leads to little cohesiveness throughout the company. 3. Management...
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