CURRENT STATE
Strengths
 MBA Trust Company is an
established company for almost 25
years.
 The company adopted the changes
to technology
Weaknesses
 MBA Trust Company continues to
have large expenses when it comes
to interest, salaries and fringe
benefits.
 Possibility of losing capable
employees.
 Identifying and eliminating obsolete
employees
Opportunities
 Adopting to technology allows the
company be engaged in different
business opportunities since
technology is worldwide used
nowadays.
Threats
 Introduction of two new policies:
the short-term policy for new
employees and an early retirement
program designed to eliminate
obsolete older employees.
 Cost-price squeeze in banking
industry
PATTERNS AND ASSUMPTIONS DESIRED STATE
 Companies fail because top management fail. The management’s  Management must have skills enabling it to evaluate
inability to decide the specific actions necessary to maintain a such situations like cutting down the expenses by
company’s financial health and competitiveness. means of early retirement of employees by
eliminating the obsolete. These alternatives must then
 It is important to note that rapid technological progress, especially be weighed, since this became controversy and the
unprecedented growth of information technology in recent years has best possible action must be taken
increased the relative importance of intellectual capital and human
resources as compared to physical resources of a company.  Determine the capabilities of a company to introduce
technology innovations which must enhance
 An ageing workforce is expected to be problematic for a company productivity of workers.
because older workers are seen to be more costly than younger workers,
due to the operation of age/seniority-based payments systems.  Company must continue systematic evaluation of the
performance of employees and understand the
 Older employees tend to be less productive than younger workers, abilities of a person for further growth and
because of poorer health or fewer, or less up-to-date, qualifications. development.
 Obsolete employees have shorter expected stays with the company,
since retirement is close, thus MBA Trust Company thinks it is not
worth investing in their skills.
 Older workers are companies first option for dismissal, or to be targeted
by companies wishing to make workforce reductions, and less able to
find new jobs should they lose their current work.
OPTIONS
 Address problems directly with the employee, providing feedback and
support as needed so that the employee can respond and make changes
with their performance most especially the obsolete ones.
 Job Rotation/ Job Specialization. If the problem persists, the manager
should work with human resources to determine whether there are other
options for making change. For example, if an employee is unable to do
his work because he simply can’t master the systems required, there
may be a different job he can do.
 Minimize fringe benefits instead of cutting down the employees
 Think of innovative ways to reduce costs instead of employee layoffs
such as job sharing, reduction of work hours, and wage freezes.

STRATEGIC CHOICE
SWOT Analysis
Identifying strengths, weaknesses, opportunities and threats of the
company
Financial Strategy
-able to downsize expenses without
Human Resource Management Strategy

EVALUATION & CONTROL