The Old Family Bank

The Old Family Bank I. Problems A. Macro 1. The lack of loyalty to the entire bank could affect the effectiveness (and profitability) of the bank. 2. The bank may have a poor process for setting pay policies. B. Micro 1. Though the personnel in the computer services department have a strong team, they are not loyal to the larger organization. 2. Computer services personnel believe that management does not appreciate them, their skills, and contributions. 3. Computer services personnel may be underpaid when compared to similar workers in other companies. II. Causes 1.

The skilled workers in the computer services department do not recognize all of the factors that may affect pay and rewards. 2. The computer services personnel possibly have access to more company-wide information by virtue of the type of work their department does than do personnel in other departments. Consequently, they get a portion of the data without understanding how managers make decisions based upon that data. III. Systems affected The attitudes of the computer services personnel to the bank likely affect the entire bank’s operations. IV. Alternatives 1. H. Day gathers more data to confirm/disprove initial diagnosis. . Use a diagnosis model such as force-field analysis to understand better the problem. Working through the model may bring to light ways to change the situation in the computer services department. 3. Day checks on regional employment data to determine if computer services personnel are being paid competitively with similar workers in other companies. Adjust pay if warranted by the data. 4. Meet with the department and explain the bank’s procedures and rationale for how pay levels are set. V. Recommendations All of the alternatives listed above can be undertaken by Day.