Old Family Bank

Topics: Department store, Data Pages: 2 (333 words) Published: July 13, 2011
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.

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

2.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.

2.Systems Affected
1. Productivity throughout the entire bank because data processing deals with the whole bank in general. 2. Inter-department relationships, because the data processing team have taken an us versus them attitude towards all other departments and the bank.

3.Alternatives
The bank should focus on all of its employees and try to make them feel important to the company. The bank should do research on compatible pay raises throughout the company so that they can be competitive. Management should stress the importance of being loyal to the company.

4.Recommendations
Do surveys throughout the company so that they can get a feel for the overall attitude of their employees. Have HR do research and make sure that all pay scales are up to date with the appropriate education and or training. The bank can install programs that ensure that employees are rewarded for loyalty.
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