Ross Abernathy and the Frontier National Bank

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EXECUTIVE SUMMARY

Frontier National Bank is passing through times of declining profitability and low liquidity. The current morale of the employees is down which in turn is affecting the bank’s performance. To get out of the current situation and expand in other regions a core team has to be formulated to increase the performance. Three options are available to the FNB

1)Formulate a team out of current employees.
2)Recruit a core team from Chicago Bank.
3)Recruit a core team of professionals with proven capabilities. All the above options are analysed on the basis of following options a)Ambition.
b)Employees Morale.
c)Risk.
d)Group Dynamics.
After evaluation the options the third option of recruiting a team of professionals with proven capabilities seems to the best one.

Word Count: 128

TABLE OF CONTENTS

SR.NOCONTENT

PAGE NO
1SITUATION ANALYSIS
5
2PROBLEM STATEMENT
6
3CRITERIA FOR EVALUATION
6
4OPTIONS
7
5EVALUATION OF OPTION
7
6RECOMMENDATION
10
7ACTION PLAN
10
8CONTINGENCY PLAN
11

Situation Analysis
The current atmosphere at Frontier National Bank (FNB) shows a lack Vision, Direction and Motivation which results in making the employees dispirited and demoralized .Over a period of time the working environment within the organization has become excessively conventional and unimaginative resulting in regular falls in market share and profitability. If the current environment prevails then organization will lose its credibility and reputation which it gained over a period of time with sheer hard work and dedication. Moreover, FNB steadily lost its position and now is third in terms assets and sixth in terms of profitability. Conservativeness, continued business with traditional customers and large workforce substantially helped for this situation to arise. To come out of this situation company needs a plan through which FNB can regain its lost glory and can make the organization among the best known in the world. Three different options are available to form a team.

Formation of team out of FNB’s human resources.

Recruiting a core team from Chicago Bank.

Recruiting a core team of professionals with proven capabilities While the first option wouldn’t have affected the present liquidation, only a sense of direction and feel of motivation among the employees would have done the job but it would have been time consuming. On the other hand, in the second option success of the bank with a new top team is clearly evident but it would put strain on the liquidity. In the last option, even though the quality of the employees in the team would be good, the cost would be substantially less thus not affecting the capital structure. Now, there is a dilemma which of the three options should be taken for making a team. A detailed analysis of what decision should be taken is given in the following pages.

Problem Statement
A decision as to which of the three options should be taken for FNB’s turnaround considering the weak financial position.

Criteria for Evaluation
Ambition: This consideration is important as ambition within an employee is required for his/her own performance as well as performance of the organization as a whole. Employee Morale: This criterion assumes importance as morale of the employees is directly related to their productivity. Risk: The importance of this criterion arises from the fact that risk involved in all three options differs, in response to situations. Group Dynamics: The importance of this criterion arises from the fact that integration between the core team and employees of the organization varies with respect to the various options.

Options Available

Following are the alternatives to be considered:
Formation of team out of FNB’s human resources.
Recruiting a core team from Chicago Bank.
Recruiting a core team of professionals with proven capabilities.

Evaluation of Options
The three options have been...
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