The Old Family Bank Case Analysis Form

Name: NUON ChheangEng (ID: 80200190)

I. Problems
A. Macro
1) H. Day, vice president of management information systems, analyzed the two-separate
department of the bank (the check-sorting and computer services departments) to figure out
how to increase productivity.
2) H. Day realized that the computer service department has the lowest loyalty to the bank that
could affect the effectiveness and profit of the bank.
3) The processes for setting pay rates are poor and needs to be reviewed. In the case, the bank
does not have a universal system in place for paying employees, while the employee’s skills
do not match the wages and the bank is not supportive of the units rather than high productivity
demands.
B. Micro
1) The computer services department resents the fact that there is a pay rate gap between them
and the lower skilled workers and feels underappreciated by management.
2) The computer services department, although all employees work well together and have a
strong team, are not loyal to the bank.
3) The working conditions for check sorting employees is undesirable (working in a large open
room that was hot in the summer and cold in the winter).
II. Causes
1) The pay gap between the computer services and the check-sorting department is causing low
morale for the computer services department.
2) Managers were not aware of how the computer services department felt about the pay situation
and the emphasis on production rather than support units.
3) Managers were creating unequal pay for each department, therefor making the computer services
department compared themselves to all other parts of the bank.
III. Systems Affected
1) Structural: the inter-department relationships, because the data processing team have taken an
“us versus them” attitude which leads to little cohesiveness throughout the company.
2) Psychosocial: the lowest loyalty in the computer services department will affects the
productiveness as well as employee morale to the bank, while the employees feel that their work
is underappreciated.
3) Managerial: managers were unaware of how the computer department felt until H. Day
examined the turnover, absenteeism, and productivity figures.
4) Technical: productivity throughout the entire bank because data processing overlaps so many
areas.
5) Goals and values: the attitudes of the computer services personnel to the bank likely affect the
entire bank’s operations.
IV. Alternatives
1) H. Day could do research on the pay rates of employees in similar positions at other companies
to make sure that their employees are paid competitively with others. Particularly, he should
check on regional employment data to determine if computer services personnel are being paid
competitively with similar workers in other companies.
 2) H. Day could call a meeting between the computer services employees and see what it is they
expect from the company as far as pay and work appreciation.
3) H. Day could tell employees that if they are not willing to make an effort to increase productivity,
he will replace them.
V. Recommendations
1) H. Day should call a meeting between the computer services employees and see what it is they
expect from the company as far as pay and work appreciation so that the employees feel that their
right and comfort to work with employees.
2) H. Day should make up a definite payroll system which is determined with similar positions at
other companies and according to skill and working level of each employees.
3) H. Day should provide a comfortable working environment for each departments and employees
depending on their role and work conditions.