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LETTER OF TRANSMITTAL
HRM 380.1 Group-B North South University April 21, 2011 Mr. Tajuddin Ahmed Faculty, School of Business North South University Dear Sir, Here is the human resource perspective analysis report of the case Commercial Customer Service at Bank One that you asked us to report upon. We have prepared this report in accordance to your instructions. The purpose of this report is to port ray a clear picture of the case on Bank One on the Human Resource perspective. We hope this report will come to your benefit. To serve the purpose, we have analyzed this topic to get the appropriate output. As per your direction we have tried our best to e mphasize our results through this report. We sincerely hope that this report will fulfil the requirements suggested by you for the course HRM 380. We greatly appreciated your consideration of our report. For any further queries regarding the report, pleas e feel free to contact us. Best regards,
Efta Khairul Alam ID# 083 232 030
Mohammad Manzoor-A-Khoda ID# 091 0060 030
Nazratun Sururan Shahrin ID# 091 0029 030
Nusrat Sababa Shamma ID# 083 425 030
Jesmin Jerin ID# 091 0036 030
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Bank One Corporation was the sixth-largest bank in the United States. It traded on the New York Stock Exchange under the stock symbol ONE. The company had its headquarters in the Bank One Plaza in the Chica go Loop in Chicago, Illinois. Chicago-based Bank One Corporation formed in 1998 through the merger of Banc One Corporation, headquartered in Columbus, Ohio, and First Chicago NBD Corp. The fourth largest bank in the United States in the late 1990s, Bank On e is also the number two issuer of credit cards. The company offers such services as commercial and corporate banking, loan and leasing, insurance, and investment and brokerage services. With branches primarily located in the Midwest and Southwest, Bank On e has more than 1,800 branches spread across 14 states. In HR issues, the report discusses about the different HR problems, which can be minimized or removed from the organization. The HR issues are:
1) Lack of an active HR department at Bank One. 2) Deficiency of adequate communication of employees with the customers . 3) No training and development programs for the employees . 4) Bank One is most likely to face problem in terms of managing and controlling the large diverse workforce. 5) Bank One had a poorly managed organizational system. 6) The recruitment and selection process at Bank One lacks strategic focus.
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Bank One is one of the leading financial institutions in the United States. The history of the bank involves a series of mergers and acquisitions . Due to the drastic post-merger integration, infrastructure is not similar in different parts of the organization. The lack of alignment and synchronization between different business units of the company has had great adverse effects on customer service, the key to success in the Financial Services industry. Jamie Dimon, Bank One¶s new CEO has advocated changes aimed at achieving superior customer service. His challenge now is to determine strategies for development in the four key areas- Introduce TQM culture in all aspects of commercial customer service at Bank One; there is no specific mention of any HR department in Bank One; technology should be upgraded to provide the best support to customers and the absence of effective and an efficient performance appraisal System.
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What should Jamie Dimon do in order to ascertain the retention of high -quality customer services at Bank One and thus assure its sustainability, therefore its profitability and growth in the long term?
HRM 380. The purpose of the SWOT anal ysis is to provide information on strengths and weaknesses in relation to the opportunities and threats. that is the strengths of the organization. the 5 . Therefore. A business does not perform well just by accident. the business firms should plan its future goals and strategies around its strengths and also try to overcome the weaknesses. and their interaction with the environment in emphasizing on the company¶s strengths and eliminating any underlying weaknesses. the opportunities facing the organization. in order to operate successfully in a continuously changing environment. Successful planning process for the human resources of an organization depends on creating a fit between the resources available to an organization and the opportunities present in its environment to minimize the weaknesses and face the challenging threats to survive and lead the industry. Effective and efficient planning process for Human Resource Management requires the perfect and specific information from the internal and external environment. SWOT is very important part for any company to be successful in the long run. The benefits of a SWOT analysis are that it provides learning and knowledge vital to the organizat ion¶s survival and prosperity. and the threats facing the organization. It is one of the cornerstone a nalytical tools to help an organization develop a preferred future. the weaknesses of the organization. Weakness. Thus. and Threats. Evaluation of internal and external factors helps to analysis Strengths.1 H M 380 1 Group-B ro B SWOT ANALYSIS SWOT analysis is a strategic balance sheet of an organization. In other words. Good performances occur because of the people directing the affairs of the busine ss. to respond effectively to changes in the environment. It is one of the time -tested tools that have the capacity to enable an organization to understand itself. Opportunities.
and threats become an essential task for management. and refer to the chances of gaining competitive advantages. Opportunities primarily arise from the external environment. Weaknesses are constraints that hinder movements in certain directions. weakness. The external uncontrollable variables that can create problems on organizational performances pose as Threats to business firms.HRM 380. Strengths refer to the competitive advantages and other distinctive competencies that a company can exert in the market place. Environment Internal Analysis External Analysis Strength Weakness Opportunity Threats 6 . as well as opportunities.1 H M 380 1 Group-B ro B assessment of strengths.
excellent and match winner CEO profitability of each loan Sharing profit after meeting the earning target implemented a Bureaucracy Busters Program WEAKNESS y y y y y y y y y y Compensation package is not well designed Low stock price and bad customer service internal conflict difficulties to manage the diversified workforce too many risky loans increase their interest rate Twisted mix of computer systems lacks a proactive recruiting system difficulties to deal with the downsizing Lack of training and development facilities OPPORTUNITY THREAT y y y y y y y y Competitors Absence of recognition plans and training programs Market forces are not sufficiently strong and fine Tuned Getting familiar with the latest technologies Increased the interest rates from 4.5% to 19.S immediate priorities for the bank Considerable progress in the first year cut unnecessary expenses bring higher return on equity increased stock price.9% More Expansion/Diversification May Lead to Chaos changes in the bank¶s products and Services Frequent expensive practices not working in real life¶ y y y y y y y Expansion in other areas of US Excellent commercialization of customer service by Dimon¶s leadership Fast technology growth Hiring new compliance officer Expertise offered by the management team create platform for global business Initial Public Offering (IPO) y add new portfolios of services managing and controlling SWOT ANALYSIS 7 .1 H M 380 1 Group-B ro B STRENGTH y y y y y y y y y y y y sixth largest bank of USA Customer service was set to top priority widely spread with many branches in U.HRM 380.
with assets worth over $260 billion. and Wisconsin. The retail bank serves over 7. Training is a vital element for corporate success.000 employees are working presently. and East. and capital markets products to Middle Market businesses and corporations. In today¶s competitive business world this is an important key element for success. For an example. Michigan. and Texas. Training division has been renovated for better corporate performance. New person has been appointed as the President of the Group. Colorado.2 million households.1 H M 380 1 Group-B ro B STRENGTH Bank One is the sixth largest bank holding company in the United States. with assets worth over $260 billion. and the Eastern region covered Kentucky. The bank is a leading provider of lending. Their massive size 8 . The more they will receive training the more they will be innovative. and Utah. treasury management. It helps to extract the loopholes of the system and also helps to find out the ways to solve any complex situation. This truth has been finally realized by bank One after having a lot of troubles and panic. Midwest.000 branches in 14 states where 74. The bank has 2. and Ohio. treasury management. The South region included Louisiana. The Midwest consisted of Illinois. and capital markets products to Middle Market businesses and corporations. They now have been started to enhance their training standard and like to bring all personnel under up to date training program. µBank One¶ is considered as the sixth largest bank of USA¶ Bank One is the sixth largest bank holding company in the United States. Their headquarters is located in Chicago. which are related with market timing and trade periods. It encourages the newly appointed person to perform better.HRM 380. South. Oklahoma. Policies have been rechecked to ensure that operations a re going well in order. Better monitoring also ensures better results from the workers. So these steps can act as very strong key point for Bank One. Bank One has recently brought some changes to its corporate structure for better management. This will definitely improve the service delivery. The bank is a leading provider of lending. while the West covered Arizona. The bank has 2.000 branches in 14 states where 74. New computer monitoring and compliance officer have been taken for better operation maintenance. they have taken five major changes procedures to gear up their motion and to regain business reputation. especially the procedures. Bank One¶s Commercial line of business operated in fourteen states in four regions: the West.000 employees are working presently. Their headquarters is located in Chicago. Indiana.
South. and Ohio. and East. Indiana. They cover almost four regions. system conversions. The main lines of business of Bank One are Investment management. These priorities were customer service. and streamlining operations with a leaner. particularly in customer service. and at the last Eastern region is just covered the Kentucky. The West region includes Arizona. Oklahoma and Texas. Chief executive Jamie Dimon has identified four immediate priorities for the bank which were promising for a positive future of the bank. Customer service was set to top priority as the customers are more concerned about customer service than stock price. In Bank One. Bank One operates its commercial line of business in fourteen states in four regions in U. Development is the most important criterion in any kind of business. Midwest. customer service was set to a top priority. All the factors are proven to be their st rength which brings them a better future and maintains their position in the market.HRM 380. Bank One Has a Vast commercial line of business in U. which results in a considerable progress in first year in building its core and infrastructure. and building the management team. 9 . South is covered Louisiana. meaner bank.S. retail.S.A. Colorado and Utah. Customer service. Considerable progress was made by the bank in the first year after setting priorities for the bank.S. and Wisconsin. financial discipline. system conversions. commercial and credit card.S: operates its commercial line of business in fourteen states in four regions in U.1 H M 380 1 Group-B ro B ensures their market and by improving services they are able to attract more customers. Bank one is widely spread with many branches in U. financial discipline. In these regions The Bank One operates its commercial lines of business very effectively. along with integration of systems. All companies must have a goal and set standard to have the best position in the market. Jamie Dimon identified four immediate priorities for the bank. The Midwest region is consisting of Illinois. breaking down bureaucracy. and build ing the management team was set as priorities for the bank. the West.A.A. This decision made them well -built to improve the customer service and also work out for complains made by customers previously. Michigan.
They like to present them in front of their shareholders in more open way than ever before. He wanted to lead the bank with his own money on the line . He has timely taken some measures. After having some unexpected situation Bank One becomes more alert about this key factor. Their stock price also increased by 34% and became $38. Mr.6% which saves $1. and energetically set to work to turn the bank around. Jamie Dimon is the perfect person to handle the current and ongoing crisis of Bank One. Under CEO Dimon¶s leadership. whirling dervish who was into everything. investing $56 million. In 2000. Employees were acting with greater openness. measured. One of the first things he did was buy two million shares of Bank One stock. Bank one has got an excellent and match winner CEO Jamie Dimon to achieve its goals. People characterized him as a manic. He inherited a badly managed.8 billion. They have established stronger ³Communication network´ with their valued customers. They are als o encouraging their employees to send letters to their clients to build up more intimate relationship as a part of their image enhancement program. This bank has already been passing a very turbulent time for which its survival has become questionable. Mr. the bank suffered from $511million loss.HRM 380. half of his personal fortune. the bank has shown keen interest and devotion about the questio nnaires that rise from their customers¶ 10 .6 billion with a return on equity of 13% in 2001. loud. After the mutual fund scandal they felt that they need to clarify themselves that they were not directly connected with the problem. the Bank experienced major changes. poorly or ganized bank. Bank one is getting more transparent than ever before. The decision became their strength as the bank achieved that much success in one year only. He cut expenses by16. Dimon is a mastermind banking professional who knows how to tackle critical situation and how to react on those particular time. Bank One is supposed to have somebody who can act as a ³Crisis man´ to overcome the situation and to regain its previo us prestige and reputation. In this kind of circumstance.1 H M 380 1 Group-B ro B The quality of customer service was tracked. But after cutting unnecessary expenses the bank earned $2. which proved him an expert solution provider for Bank One. charismatic New Yorker. Transparency is a major factor for business. and rewarded by the bank. The CEO of Bank One cut unnecessary expenses which bring higher return on equity and also increased stock price. The bank also improved service through better systems and appropriate compensation plans. He was a tough.
In this way. They are also now disclosing the portfolio of company¶s business to their official website to make the customers more informed and aware about the current status of their business trend. whether they are going to have any benefit or need to be aware about any coming disaster. This will help the investors to have a crystal clear idea how things are going on inside. Investment both financial and none financial has be worth to organizations goal and objectivity for having expected productivity and real output. capability to make product functional & more financial access. As a result. They have been presenting themselves totally free towards its customer¶s enquiries. Bank one has a big assets value over $260 billion. If they don¶t accept that then they left the bank one. Assets like more than $260 billion are really a large amount in the banking field. treasury services.000 branches in 14 states of U. Bank one has proved their extent of sincerity by brining dramat ic changes inside of its infrastructure. The bank offered these commercial customers the opportunity to purchase other products (such as asset management.1 H M 380 1 Group-B ro B side regarding different issues especially about any discrepancies. Bank one is extremely well capitalized and well reserved banking company and they are also protecting against increasing interest rate. Many cheap loans were losing the bank money.Neal reviewed a list of about 1. or find another bank. Sufficient investment will also helpful to make the right pro duct for the customers. Mr. Hiring a new compliance officer for better monitoring. Bank assessed the profitability of each loan on its books and reduced loss. 11 .A. derivatives.000 employees at 2. the bank assessed the profitability of each loan on its books. and bond underwriting) from Bank One.S.800 borrowers and gave warning to those whose loans might not be renewed. Dimon has to do worst-case scenario planning after analyzing the major weaknesses of Bank One. They are also now observing how research funds are negotiated. The Bank One also has 74. paid and disclosed to investors.HRM 380. For tackling the current miserable situation Bank One has taken some tactful and appropriate steps. implementing massive training program etc are good signs of sincerity. These huge assets of Bank One state that they are financially stable. They have creativity. their relationship became profitable for the Bank. Domestic Corporate banking Chief John E.
Under Dimon¶s leadership. and commercial loans. Sharing profit after meeting the earning target motivates employees more. while corporate customers ran over $500 million. retail. Bank One¶s main lines of business included investment management. Middle Market customers generally ranged from $10 million to $500 million in annual sales. The Bank¶s Commercial line of business was divided into Middle Market and Corporate. capital market products. Over the first two years of Dimon¶s leadership. Management centralized its operations and sought to give people in the field more authority and responsibility. and the Bank put many of them in place. To Dimon. µDesire to help people¶.000 of its lower-paid employees. One of the most important characteristics of a service consultant is a sincere desire to help people .this policy made their customer service even better. an online suggestion box that paid employees for money -saving ideas. This related to Jamie Dimon¶s belief about what it takes to make the Bank succeed. Employees at 1. Bank One implemented a variety of measures to monitor and continuously improve customer service. Divided organizational structure is considered as a big strength for Bank One as they can provide multiple services. Bank One implemented a Bureaucracy Busters Program. and credit card. The bank defined small business as one with annual revenues of $10 million or less. Commercial customers had annual revenues of over $10 million.800 branches were given the opportunity to share profits if they met earnings targets. employees sent in thousands of recommendations.1 H M 380 1 Group-B ro B Bank One implemented a Bureaucracy Busters Program to help red uce bureaucracy. Bank One¶s customer service has steadily improved. In response. Quality Improvement Measures has been taken for customer service. this step was critical to success. treasury management products. The Middle Market group serviced depo sitory accounts. To help reduce bureaucracy. These ensured that any issues were resolved to the customer¶s satisfaction and included customer 12 . commercial. It increased the feeling of ownership in the company by giving a grant of $300 in Bank One stock to the plans of almost 40. In 2002. the Bureaucracy Program was renamed The Idea Center to encourage more suggestions on how to improve the bank¶s internal processes.HRM 380.
After the merger of Banc One and First Chicago NBD. 13 . These two banks were formed from previous mergers of many different banks. and to improvise on that the employees are asked to show their appreciation to internal colleagues and external customers. and therefore makes it easier f or them to work as well. 2000. The program began on January 1. recognizing that the overall quality of the experience keeps customers coming back. performance reports. which used different computer systems to provide customer service. Large Corporate. the Bank One implements a variety of measures to monitor and continuously improve the customer service. More over this gives the employees a clearer and simpler idea of how the bank operates. Proactive. The national Commercial Client Services Recognition Program rewards the achievement of the Service Consultants in Middle Market. performance reports. Bank One promised its 60 million customers that they would receive individual answers to their requests and inquiries. and also included customer care report and conference calls. The bank made a promise to its customers and employees concerning its commitment to service. monthly customer satisfaction surveys. monthly customer satisfaction surveys. knowledgeable. and the Service Centers. Quick response time. This helps to them to get the employees more motivated towar d their work and also attract or retain customers. trustworthy employees. It i dentified the following customer needs: Accuracy. Bank One developed Service Essentials in fall 2000. empowered. Bank made a promise to its customers and employees concerning its commitment to service. As a result the newly formed Bank One was having grave problems to serve their customers properly. Bank One developed Service Essentials to ensure quality service. and business won and lost surveys. At Bank One since customer service is their main priority. and business won and lost surveys. This system ensures that any issues resolved based on customer satisfaction. By this system employees know that what is right for the employees and what makes them satisfied.HRM 380.1 H M 380 1 Group-B ro B care reports and conference calls. Under the leadership of James Dimon. which help every organization to serve successfully with in the competitive market in international business. Personal attention Modern computer technology & service excellence e -cards at Bank One Technology is the most important factor now a day for the greater productivity and more output. Bank One recognizes service excellence in several ways. Bank One was formed. Fast problem resolution.
and employee stock ownership plans.1 H M 380 1 Group-B ro B to reward employees. rewards etc. Bank One provides a handsome amount of salary. supervisory. The emblems were earned by course completion. Compensation package is not well designed to retain employees¶ Though Bank One claims that they have an appropriate compensation plan.HRM 380. monetary rewards do not work always -for those cases non-monetary rewards should not be misjudge. profit sharing opportunity. Client Applause. Among the 26 emblem categories were Service Star. to have an effective teamwork employees should be satisfied with their compensation package. Emblems were awarded monthly. Leadership. who received engraved recognition plaques with emblems to reflect their individual achievements. WEAKNESS µIn bank one. and Lemons -2Lemonade. As Dimon encourages teamwork. The Commercial Banking Senior Management Recognition program sent a complimentary letter or memo from an Executive Vice President to employees in Commercial Banking who had received written compliments from internal or external customers. the employees will not motivate to provide huge effort to improve the customer service. quarterly. Without a total compensation package. Service Excellence E-cards were launched in March 2002 to provide an avenue for employee¶s to show their appreciation to internal colleagues and external customers. as well as peer and team nominations. depending on the emblem criteria. However. Sales Star. So the share value of Bank One was decreasing day by day. customer and business partner recognition. On the other hand. If a company can do well in 14 . other employee benefits and services and some non-monetary rewards are absent from the compensation package. payment for cost-saving ideas. and annually. Best Overall Service Star. Corporate Service Excellence began the Service Heroes program to celebrate service and spotlight employees who provided outstanding service to internal and external customers. µLow stock price and bad customer service cause a adverse impact on bank¶s reputation¶ Bank One had a weak customer service and stock price. Fraud Detector. but the compensation package is not well described.
Hence investors did not want to invest at Bank One anymore. Bank one has such a diversified work force with employees from different corners of United States. Each people are different from others because of their sex. 15 . some unhealthful situation will arise and it creates many problems in the organization. µIn Bank One internal conflict arouse due to shared own ership which affected the performance of employees of this organization¶ In an organization. Because of this merge. it was decided that is Bank One will own 60% by First Chicago stockholders will own 40% of equity ownership. ethnical value. More over the risky loans that they were giving out to large corporations was also an issue. Bank One would face difficulties to manage the diversified workforce which occurred as a result of several mergers and acquisitions with other banks. principles. After merging there is problem regarding the ownership means who get maximum % of ownership whether retailer or corporate culture. there is also arise conflict due to shared ownerships and which became hamper the performance of the employees of this organization. Internal conflict disrupts the performance and morality of the companies¶ employees. The brand name or image will go up. This affected their reputation in the financial market. But the ab sence of 100% effort Bank One looses their positions. At last. geographical reason. In some organization. life-style. Though all the branches of Bank One are located in USA. As a result Bank One¶s share price plummeted and the stock lost its value in two years. So that they have differen t ideas and views which in turn may generate problems at times by arising internal conflicts among employees. conflict may arise due to many reasons between employees. they give award to some better performer of the company who does a good job in the organization. religion. locality. Bank One is the sixth largest bank in the United States. So it is weakness for Bank One. Bank One has a large diversified workforce due to its merger and acquisition of other two banks. Therefore. religious and many other objects. life -style etc. After the merger in the year1998. In Bank One.HRM 380. different employees come from different states in this organization and Bank One has to deal with this dissimilar workforce and it is very difficult to retain diverse workforce within organization.1 H M 380 1 Group-B ro B customer service then it will be a free promotion for them. But sometimes some worker will feel jealous and create problem in working place. Whenever a disagreement would arise in the banking syst em of Bank One then for the agreement on a single decision would be a very big problem. age. This mainly arose when customer service at Bank One arose as a big issue. the people vary from state to state because of the culture. the confusion of ownership arose as big issue.
It may effect the bank¶s reputation also. Bank One increased their interest rate from 4. Bank One merges with two banks and because of this different system of those two banks will come in this organization.9% in the credit card section if only the customers made paid a day late only twice within a time frame of six months. Bank One took an initiative to give away loans to large corporations because after merges Bank One was suffering huge losses. If the bank does not compensate them well then those employees may bring the bank to court. a large number of people became out of work. As a result. Though the bank wanted to earn as much revenue as possible within a very short time frame. If they don¶t lower interest rates down to these present rates then borrowers don¶t renew their loans timely. Though. which may cause huge problem. which is against the employment law.1 H M 380 1 Group-B ro B Bank one made too many risky loans and was not able to earn as much revenues as expected within a very short time frame Bank One had face financial problem in early 2000. This was mainly with the aim to make a quick revenue generation. which proved to be risky ventures. Bank one lacks a proactive recruiting system which can affect and discourage its employees to a greater extent Recruitment system is very crucial for any kind of organization.HRM 380. it leads to tr ailing customers and this customer also doesn¶t go for a further transaction with this bank and it hamper the overall transaction of the bank. Dimon eliminated about 8000 jobs. According to these changes. So. Bank One increase their interest rate due to restructuring procedure which may hamper the further transactions of customers with the bank After merge. If the bank just simply lay off their employees without any payment. organization needs to design new and upcoming business structure to support the changes. The Corporation not only terminated the employees but also made their family in trouble. Due to this reason the organization faces problems.5% to 19. As a result. job seekers will always intent to enter in 16 . the court may give the order to shut off the business for rest of the life. Bank One may face difficulties to deal with the downsizing because of a lot of merger with different companies To turn around the bank in a good shape from badly managed and poorly organized bank. it was not possible as they gave out loans to corporations. Bank One is the sixth largest Bank in USA. And financial support and efficiency is a need for any organization to support the restructuring procedure. As a substitute of one integrated system they followed two different wayward systems. Bank One tries to make some changes in the organizational structure.
The service consultants are empowered to exercise their authority. They are not provided with any sound training for adapting to the changing environment of the business. Dimon replaced twelve of the top thirteen executive managers at the bank. But Bank One d oesn¶t have enough position to hire enough employees at that position according to market needs. Bank one¶s goal was for customers to receive services seamlessly and efficiently.1 H M 380 1 Group-B ro B the Corporation. Dimon eliminated about 8. This style of learning on their own would be a bigger problem when many customers would require the service. no matter where they were or their banking needs are. Bank One always recruits people either from the reference of higher authority but it does not putting prominence on educational background. However. Twisted mix of computers systems left over in Bank One from Dozens of mergers with regional banks. ability etc. the online bank launched two years previously. OPPORTUNITY 17 . Eventually.000 jobs in his first year of the job. The conversions required a huge effort that many at the bank thought was impossible. Unstructured recruitment process has reduced the morality. the bank underwent conversions to one unified system. and worked hard to avoid service problems that could frustrate customers to the point of leaving. Slowly. these pe ople are not given any professional support or motivation for doing so. He closed wingspan. When this organization extends their business they did not create any new positions for the job seekers. cr iminal record. Every time the service consultants need to learn new technology for enhancing their customer service. So it is weakness for Bank One. Bank One doesn¶t have any specific recruitment process or team mentioned. ethical behavior of the company. state by state.HRM 380. cutting the workforce to 75. he scaled back an auto leasing unit. The bank had to blend seven deposit systems. Twisted mix of computer systems hampers the customer service. painfully. They should streamline the service and make the job of Service consultants follow guidelines in addition to their style of doing work.800. physical test. Dimon insisted on integrating the diverse system into one platform. The venture cost the bank between $100 and $150 million during its first year along. Lack of training and development facilities for service consultant can be the reason of misusing authority.
the company also went public more or less the same time. These are in the enviro nment that surround the business and should be tried to capitalize on. credit card. The identification of the Middle Market and the Corporate market helps Bank One categorize the different mainlines according to the Market they operate. This will in fact help them generate enough revenues to c over the losses they have faced earlier. Since they were a public company. Bank One can add new portfolios of services to its existing line of business Bank One currently is operating its line of business in investment management group. These regions are the West. when the bank¶s wholly owned indirect subsidiary banc One Investment Advisors (BOIA) came under investigation in the mutual fund probe. Bank One goes for an Initial Public Offering (IPO) in 2003 Under such circumstances. commercial. This will allow them to do something for the welfare of the society. Opportunities come from factors outside of anyone¶s control. This is what boosted their productivity in terms of customer service. 18 . commercial. they will be able to spread their services in many other countries throughout the world. he was very keen in improving customer service at Bank One. and also add value to the organization. Mr. transparency and communication.S. and East. South. Apart from these four lines of business operations. This step took the company to yet another level. That is he focused mainly on networking. and he also made bank undergo various conversions to one unified system. Floating shares has its own advantages which includes the collection of capital. and credit card. Midwest.1 H M 380 1 Group-B ro B External conditions those are helpful to achieving the objective. If Bank One can further improvise on networking facility. The financial s tandings of the institutions also help Bank One develop new strategies for operation. There are several opportunities are available for Bank One and in this case study: µExpansion in other areas of US will attract more customers¶ Up till now Bank One has been operatin g its commercial line of business in fourteen states in four regions. Bank One can further expand their line of business in other states of U. and retail. Bank One can start operating in other areas of the service industry such as they can open up a nongovernmental organizations. The main lines of business for Bank One includes Investment management. Retail.HRM 380. they had to share this information with all their shareholders. making the computers talk to one another. Dimon took the opportunity to develop a strategy that involved cooperation. After Dimon joined in as the new CEO. Opportunities may occur suddenly.
1 H M 380 1 Group-B ro B Thus. µExcellent commercialization of customer service by Dimon¶s leadership¶ Over the first two years of Dimon s leadership. this helped them not only to now be a company gai ning all the advantages that a public company has. Expertise offered by the management team can be shared through consult. With such expertise available they can offer banking service other than the traditional one. The Management team of Bank One consists of personnel fr om various wellreputed institutions. the desire to do the job well is critical for success. Dimon told some system analyst. cooperation and communication with the shareholders and gain their trust back. loan officers. The extensive distribution of the customer service and recognition of it as a professional position makes Bank One develop Customer relations. µFast technology growth makes banking faster and easier¶ 19 . The main reason behind this success was the quick identification of the most important characteristics of a service consultant. This not only has been operating in the specified region but also has a Central department. ³how much you want it´. winning does not come from Patent of Your IQ or educational background. One of which is the building up of the credit card customers. It comes from one thing. which would help in earning extra revenue. but it was also an opportunity for the Bank One to promote transparency. Being globally spread over the regions they have an opportunity to do Global business. They are always concerned for giving better quality and this creates opportunity for them to prosper with their service in the global arena. This Credit card cluster of individuals in an area can create a huge market in the various regions of the United States and the global market. The Bank One can have an option to develop a platform for the credit card business.HRM 380. and branch manager in Chicago that. customer service of Bank One improved in a steady way. Bank One has developed an extensive customer service-delivering unit. According to Dimon. Not only has this offered new business for the bank but also the inclusion of more human resource. that is. These are the expert panel of people who has a major role in the success story of Bank One. Bank one can create platform for global business aft er fulfilling the local demand Bank One has succeeded in getting many businesses across the regions. ³sincere desire to help people´.
Threats Threats are negative external environmental factors. be able to regain the confidence of the shareholders. µHiring new compliance officer can be beneficial for the bank¶ After holding a public dialog on the best practices in the industry. Another technology that Bank One used was the one to give Customer Service Consultants the ability to do call tracking. This provides them an opportunity for becoming the global Bank partner for large transactions worldwide. With the hiring of the compliance officer and informing about this to all its stakeholders would likely to prove a great decision. They used a front-end system allowing them to access information. This would make the happy and all those with bad intentions not do anything else any further. this would help the Shareholders feel safer investing i n the bank. Bank One there would be able to deliver a faster response to the questions for day-to-day business. Thus. They have been adopting new technology for every phase of their transformation.HRM 380. µCompetitors can be a big threat for Bank One in retaining the high er possession of the market¶ 20 . Bank One use advance technologies that was specific to customer service.1 H M 380 1 Group-B ro B Bank One is an institution where technology has a greater impact for delivering service. This is because this officer is solely employed to monitor that everyone is following the law and working accordingly. and they would be again. External factors are not controlled by the organization and to survive every organization needs to be very alert about its threats and how they can overcome this problem. the Ba nk One selected and implemented a number of best practices which included hiring new compliance officer. This resulted in having a state of the art technology with their system of Banking. which influences an organization¶s decision. Organizations should be proactive rather than reactive and should be aware of what are the competitors moves and should take necessary action in advance to face those moves. This helps the Servic e Consultants to see what was done previously for a particular customer and track how often the customer had called.
Motivation is required for making them work better otherwise it might impose threats for the Bank as there is a chance that the service consultants will leave their job for not getting proper recognition. In Oklahoma. Bank of America. Bank one maintains service consultants¶ position but does not recognize them accordingly in terms of dressing as well as performance.HRM 380. They had the same professional position as others in the Bank. and Comerica. On the other hand. Dallas and Oklahoma. and Bank First. Several competitors in different territories of Bank One has been identified hence the competitors varied according to the market in the Southern region¶s Commercial line of business. Being the sixth largest bank. Wells Fargo. In Dallas. The employees of Bank One were the people who work for the customer to give better service but the bank did not give them enough recognition. Bank of Oklahoma. Lack of a precise training center can be a big threat for Bank One as other five top bank¶s can provide their employees with best train ing to be competitive in this challenging market. On the other hand. the 21 . µMARKET FORCES ARE NOT SUFFICIENTLY STRONG AND FINETUNED TO ASSURE OPTIMAL CONTRACTING OUTCOMES¶ Market forces are not sufficiently strong and fine -tuned to assure optimal contracting outcomes. the major competitors of Bank One were Bank of America. Customer relationship training is mandatory for the purpose of ensuring better service towards the customers. Bank One has to make its employees work with complete dedication to maintain its reputation worldwide as well as to ensure updated customer service by using the advanced technologies. Offering different lucrative promotional activities like increasing the number of ATM booths by the competitors can be a threat for Bank One. local banks like Whitney National Bank and Hibernia were the competitors. As a result Bank One will have many competitors depending on the market as well as the promotional activities offered by other banks in the regional sectors as all th e banks want to be in top of the market. Bank One has competitors in Lo uisiana. Strong competition from the banking industry is very obvious in this competitive era. Markets-including the market for corporate control. Bank One did not provide its employees with updated training in order to ensure error free service to the employees.1 H M 380 1 Group-B ro B Being the sixth largest bank in United States. µABSENCE OF RECOGNITION PLANS AND TRAINING PROGRAMS FOR THE SERVICE CONSULTANTS CAN CAUSE PROBLEMS¶ All the employees both established and newly hired need sufficient chance to acquire diversified training and learn new skills available to serve the customers in enhanced ways. the competitors were Chase. in Louisiana.
As a result Bank One¶s share price dropped and the stock lost half its value in two years. This affected their reputation in the financial market. made some changes in the organizations policy regarding giving out loans to customers just after the merger. This time they increased the interest rates from 4.9% in the credit card section¶ Bank One. µGETTING FAMILIAR WITH THE LATEST TECHNOLOGIES FOR THE EMPLOYEES IS TIME CONSUMING WHICH MIGHT AFFECT THE SERVICE¶ The success of rapidly growing company is based on the frequent change of the technology to make the operation effective.5% to 19.9% in the credit card section if only the customers made paid a day late only twice within a time frame of six months. But for that time being. Jamie Dimon has made significant changes in the Bank¶s operations and steered it towards success.9% it is unlikely that they will get their customers back. µIncreased the interest rates from 4. Bank One needed to use advance technologies as they were going through a critical period. This led to customer abuse and as a result many of the customers made no further transactions with the bank. If they do not lower interest rates down to 4. 22 .1 H M 380 1 Group-B ro B market for capital and the labor market for executives. Service Consultant is required to upgrade their skills and technical knowledge very often which required training as well.5% to 19. They needed a front-end system allowing the customers to access information. This imposes a greater threat as the time taken for the different phases would make Bank One incur costs and also will they lose customers as no proper information wi ll be available during the adaptation because it is really time consuming to get well known with latest technologies in order to apply it professionally. The important point is that the market for corporate control fails to impose tight constraints on executive compensation. So the increased interest rate of Bank One is one of the biggest obstacles in the way to success.HRM 380. The market for control might impose some costs on managers who are especially aggressive in extracting rents. therefore investors did not want to invest at Bank One anymore. It is always concerned about bringing in best technologies. which are needed to produce the best quality services that the market demands.impose some constraints On what directors will agree to and what managers will ask them to approve. a large number of customers fled. He improved all the features of customer service quality and Bank One could really enhance the quality of its commercial customer service between 2000 and 2003. the bank¶s employees needed time to get familiar with the technologies.5% or somewhat lower than 19. Because of these.
which is very difficult to lead a huge diversified workforce in different states in a unified approach. On the other hand. Midwest. This situation can create a severe mess in the corporation.HRM 380. The Corporation not only terminated the employees but also made their family in trouble. It is a good plan for th ose people who perform better but not much successful for those people who are from another different culture. which is ag ainst the employment law. All this changes the Bank¶s image. they may cause interruption in achieving the objective on time. If the bank does not compensate them well then those employees may bring the bank to court.A. To manage a large diversified workforce through one unique method is not an easy task. Dimon eliminated about 8000 jobs. These regions are the West. South. and East. the court may give the order to shut off the business for rest of the life. As a result.1 H M 380 1 Group-B ro B µMore Expansion/Diversification May Lead to Chaos as managing a large diversified workforce through one unique method is a tough task¶ Up till now Bank One has been operating its commercial line of business in fourteen states in four regions. a large number of people became out of work. If the bank just simply lay off their employees without any payment. The technological and teamwork knowledge changes every time and consultants start from Scratch. µBank One might face difficulties in dealing with the downsizing factor as several mergers and acquisitions took place among the other State banks¶ To turn around the bank in a good shape from badly managed and poorly organized bank. which may cause huge problem. µThe risk of all the expensive practices not working in real life¶ 23 . Bank One has 2000 branches in 14 different states.S. Adaptation to this changing environment by a Service consultant imposes restrains. Bank One can further expand their line of business in other states of U. Then again. This changing nature not only makes the consultants stressed to work but also every time makes a new approach to an existing customer. It may affect the bank¶s reputation also. if within the organization some people are lazy by nature because of their life-style in a different locality. µFrequent changes in the bank¶s products and services can hamper customer service quality¶ Bank One changes its products and services frequently. This p roduct and service are very interrelated as one helps to foster other to the customers.
So the risks remain for these efforts to backfire. Dimon surely acted very swiftly to come out of the crisis with a strategy called ³do the right things´. ethnical value. Though all the branches of Bank One are located in USA. To maintain good relationship with employees it is very important to encourage the employees of the organization to be motivated toward customer service. It involved a lot of expense. Because of this type of delegation of authority. Bank One has to deal with diversified workforce. management may loose control over the employees. they may cause interruption in achieving the objective on time. which is very difficult to lead a huge diversified workforce in different states in a unified approach. restitution to shareholders and so on. however nothing is 100% guaranteed. Human Resource Department of Bank One may lose control over them¶ To do good business it is important to give necessary authority and power to the employees that they can solve the problem instantly by their own. Each people are different from others because of their sex. Moreover. the company has although taken up a strategy which surely looks li ke that it would work. the company will surely be in trouble . The management of Bank One centralized its operation and sought to give people in the field more authority and responsibility to perform better. However. age. giving training to employees. Therefore. µBecause of providing too much access and authority to the employees. Then again. This situation can create a severe mess in the corporation. hiring new employees. It means employees will get the authority to take any decision and to make any changes regarding their job bu t they have to inform the central location means headquarter in Chicago. the customer service operation and other activities of the Bank One may run smoothly but the employees may be involved in some kind of unethical activities like stealing money from 24 . If within the team some people are lazy by nature because of their life-style in a different locality. Bank One has 2000 branches in 14 different states.000 employees at 2000 b ranches in 14 states. implementing those. when the company is serviced based it is obvious that employee require some delegation of authority. µBank One is most likely to face problem in terms of managing and controlling the large diverse workforce¶ Bank One has 74. principles. To manage a large diversified workforce through one unique method is not an easy task. All this were taking a toll on the company. religious and many other objects. the people vary from state to state because of the culture. geographical reason.HRM 380. life -style. life -style etc. locality. starting from making new rules and regulations. If by any chance all these don¶t work to impress the investors.1 H M 380 1 Group-B ro B Mr. religion. Thus.
we can say that. and while doing this previous CEO¶s let the local manager stay on and continue running the bank at the way they were doing in the past. Dimon was trying to build an efficient workforce. After that. Too much of delegation of authority is bad for any organization. The reason behind it was. He received a badly managed. different branches follow different strategies of their own.1 H M 380 1 Group-B ro B customers account. which was the first online bank launched previously. He eliminated about 8000 jobs in the first year. Bank One is the product of several mergers and acquisitions. Then he closed the Wingspan. He also scaled back an auto-leasing unit. 25 .HRM 380. cutting the workforce to 75. Dimon wanted to give the company a new and strong shape. which can work efficiently under his leadership. poorly organized ba nk. µBank One had a poorly managed organizational system¶ Jamie Dimon was asked by the board of Bank One to take over as CEO in 2000. Dimon replaced twelve of the top thirteen executive managers at the bank. which create clutter in the whole organization. cashing less money than the customer has asked etc. Delegation of authority and responsibility to employees need to allocate to some extent. In other words. That is why.800.
9% in the credit card section 26 . Bank One has the potentiality for constant growth which will help to increase its operation effectively THREAT Difference of opinions in Customer Care Services sometimes force the customers to depart the bank increased the interest rates from 4.S. markets.5% to 19.1 H M 380 1 SWOT ANALYSIS (NARROW VERSION) STRENGTH Group-B ro B Bank One may face difficulties to deal with the downsizing because of a lot of merger with different companies Modern computer technology & service excellence e-cards at Bank One In Bank one active employee participation is promoted They remained committed to a dedicated & strong customer service. which always strived to stay competitive WEAKNESS Bank one lacks a proactive recruiting system which can affect and discourage its employees to a greater extent Bank One may face difficulties to deal with the downsizing because of a lot of merger with different companies OPPORTUNITY Bank One can practice true commitment to the reallocation of power in order to promote service consultants¶ involvement and empowerment which in return helps them to retain employees with the organization In several U.HRM 380.
1 H M 380 1 Group-B ro B Human Resource Issues The HR department is the most essential department for any organization. This international bank needs to have a properly designed and well functioning Human Resource department to recruit the right p eople for the 27 . Lack of an active HR department at Bank One Although Bank One is the sixth largest bank holding company in the United States it is necessary that it has Human Resource Department.HRM 380. This is why if any organization is to function properly and look for the efficiency at the highest level. However. The human resources (i. employees) are the key elements of any organization for any success that any organization desires to achieve. Moreover. it is the responsibility of the human resource department to best utilize the human resources of the company to the maximum. the HR department is not well ordered to manage the diversified workforce of this company.e. there is no alternative of establishing the HR department.
HRM 380. The lack of communication among the employee at the Bank One is one of the most important HR issues. financial discipline and building the efficient management teams. Human Resource Planning provides the basis for establishing and maintaining effective HR programs and for coordinating the various HRM functions. it is very difficult to allocate skilled employees and manage them properly. That is why in early 2000 the bank had to go through the customer service problems as well as financial crisis. Moreover. which objects can only be learnt through proper training process. Above all a proper HR department is needed to prepare a well -designed Human Resource Planning for the company. who took over as Bank One¶s CEO in 2000. technical skill. The bank also feared from the fact that they are losing money to less profitable customers in a way that is more than the customer is earning for the bank. So it is typical to speculate that in order to prevent that µgrape vine¶ among employees there is a need of proper communication to start with. faced many complaints and questions regarding the customer services of Bank One within seven weeks of his tenure. to make the employees work in that way so that they can contribute in achieving the corporate strategy of the company. Furthermore this HR issue should be given more importance to the fact th at it may hamper the course of the investigation. such as telephone priorities. For the customer service department. Training for 28 . such as effort . Without a proper HR department.1 H M 380 1 Group-B ro B right position. No training and development programs for the employees Bank One does not have any training and development program for their employees to train them how best to perform their duties and responsibilities in Bank One. system conversions. teamwork and many other factors. only to top profitable customers. Bank One needs to have HR units in its every branch. In order to develop a well -structured HRP the company needs a well functioning HR departmen t in its head office. They are: customer service. Deficiency of adequate communication of employees with the customers Jamie Dimon. This is one of the reasons the bank provided far less customer services. That would be hazardous for the organization. Additionally. To perform these actions brilliantly some crucial characteristics were required. Jamie Dimon identified four immediate prioritie s for the bank at the time he joined Bank One. employees need training program to identify how to deal with the customers and solve their problems-which is missing from Bank One Corp.
and while doing this previous CEOs let the local manager stay on and continue running the bank at the way they were doing in the past. principles. In other 29 . ge ographical grounds. locality.HRM 380. Then again. He received a badly managed.1 H M 380 1 Group-B ro B both improving the employees¶ performance and managing diversified workforce are absent from Bank One. cutting the workforce to 75. religious and many other principles. Each people (both employees and customers) are different from others because of their sex. ethnical value. they may cause interruption in achieving the objective on time. Bank One has 2000 branches in 14 different states. Then he closed the Wingspan. After that. Bank One has to deal with diversified workforce. The reason behind it was. different branches follow different strategies of their own. To manage a large diversified workforce through one unique method is not an easy task. That is why.000 employees at 2000 branches in 14 states. which is very difficult to lead a huge diversified workforce in different states in a unified approach. which was the first online bank launched previously. Though all the branches of Bank One are located in USA. If within the team some people are lazy by nature because of their life-style in a different locality. life -style. He also scaled back an auto-leasing unit. Dimon wanted to give the company a newer and stronger shape. religion. Therefore. the people vary from state to state because of the culture. This situation can create a severe mess in the corporation. Dimon replaced twelve of the top thirteen executive managers at the bank.800. Bank One had a poorly managed organizational system Jamie Dimon was asked by the board of Bank One to take over as CEO in 2000. age. Bank One is most likely to face problem in terms of managing and controlling the large diverse workforce Bank One has 74. poorly organized bank. Bank One is the product of several mergers and acquisitions. which create mess in the whole organization. To maintain good relationship with employe es it is very important to encourage the employees of the organization to be motivated toward customer service. He eliminated about 8000 jobs in the first year. life -style etc.
John McCoy. Without a magnificent recruitment system. Thus. 30 . used to keep the local managers of the acquired or merged banks to continue the banking operation in the way they had before. which can work efficiently under his leadership . who became the CEO of Bank One in 1984. Even if they became a large corporation. Dimon was trying to build an ef ficient workforce. Since Bank One is the sixth largest Bank in USA. Bank One recruits either from the reference of higher authority or the applicants ¶ desires to do the job. the problem is. we can say that. However. The recruitment and selection process at bank one lacks strategic focus Bank One Corporation acquired as well as merged with many companies. Bank One does not have any standard recruiting process to hire new qualified people from different states. physical test. Bank One does not have any standard recruiting process to hire new qualified people from different states. Without a n outstanding recruitment system.HRM 380. such as educational background. job seekers will always intent to entire in the Corporation and to become a part of the workforce. it will be difficult for Bank One to get eligible people and to run the business in near future as the corporation is getting bigger day by day and it is e xpanding their business from one state to another. though the market for Bank One became large but the need for employees did not improve. it will be difficult for Bank One to recruit qualified people and to run the business in near future as the corporation is getting bigger by the day and it is expanding their business from one state to another. criminal record.1 H M 380 1 Group-B ro B words. they did not create any new positions for the job seekers. ability etc. The firm needs to emphasize on the other factors of recruiting.
here. In such cases. However. the intended compensation and reward plans that Bank One authority already planned to initiate is also covered within the plan. along with recommendations for additional compensation tools. With a specific focus on Human Resource related issues for this report. 31 . recommendations are made to enhance their effectiveness.HRM 380. the implications of human resource management about compensation tools and techniques are discussed with more emphasis. it is now time to recommend activities that will support the efforts of quality enhancement of customer service at Bank One.1 H M 380 1 Group-B ro B RECOMMENDATIONS After analysis of the case from various perspectives.
that cultures do not develop immediately. TQM (Total Quality Management) itself has to work as a part of the organizational culture to be effective. necessary steps 32 . Recommendation Therefore. It is true. Moreover.HRM 380. organizational culture is a very important prerequisite of success of any organization which was not the realit y in Bank One. it is suggested that the organizational culture at Bank One should revolve around quality service that will lead to u ltimate customer satisfaction. However.1 H M 380 1 Group-B ro B LACK OF TQM CULT URE IN ALL ASPECTS OF COMMERCIAL CUSTOMER SERVICE AT BANK ONE Problem In this modern era of business world.
In addition. a culture of openness and proper communication will accelerate the free flow of information. which will thereby in course of time become their collective identity. the cultural bonding will tie the employees together. Thus. and as 33 .1 H M 380 1 Group-B ro B are to be taken as soon as possible to inculcate and encourage the TQM oriented cultural practices. So not having a proper HR department is a serious threat.HRM 380. in turn. will encourage employees to put forth higher commitment to the quality of their work and due attachment to the company. Again. a collective accountability can be established. knowledge and experience. compensate or train their employees. It will help to increase the morale of the employees and give them a strong feeling of belongingness. AS THEY FACE ONE OF THEIR BIGGEST LEGAL CHALLENGES. THERE IS NO SPECIFIC MENTION OF ANY HR DEPARTMENT AND ITS NOTEWORT HY ROLE IN BANK ONE. It is strongly believed that this. Problem Human Resource Departments are the heart of an organization. They hire those employees who are able to quickly adopt their corporate culture and commitment to serve their customer with maintaining the same quality. In addition. It will lead them to hold more attentive attitude to wards their quality of work of their co-workers. The Bank One does not have any separate HR department for which it does not follow any specific rules to recruit. Justification The quality culture will help Bank One in various ways. handing over of authority and decentralization should work up to their highest degree. select.
They may train them in multi skills needed to serve their customers effectively but they don¶t train them to uphold the image of Bank One by maintaining company code of conduct . Here Human Resources play a key role in helping companies deal with a fast -changing competitive environment and the greater demand for quality employees. employees attitude and behavior. They have to have a written criterion following which the recruitment committee members will hire the new employees so that they can identify the right person for their company. if they open this department their performance efficiency would increase positively. to sustain in the market with the same position it must have to adopt new strategy. Thus the good reputation of Bank One is corrupting. Moreover. The Bank One is one of the largest financial services company around the world. There is no specific T&D plan in Bank One¶s case. because they are the people who can better choose the right person as their service provider . legal aspects of employee behavior etc. a Recruitment and Selection Committee should be created consisting of some experienced people as well as professional HR managers or line managers who will maintain the whole process. They need to be more tactful to be the leader in the banking industry throughout the world as the age is being competitive day by day. Compensation policy and employee -employer relationships. Though they hav e survived a mutual fund issue.1 H M 380 1 Group-B ro B a result of this those employees are engaging in unethical activities. But the final decisions should be taken by the Executive managers of HR department where the experienced people will be in those positions. Though without any effective HR department they are operating their business successfully. selection. RECRUITMENT & SELECTION PROCESS Under the control of the HR departmen t Bank One. TRAINING & DEVELOPMENT PROCESS Bank One should provide training to its new as well as its existing emp loyees according to the employees¶ knowledge level. Recommendation Bank One needs a separate HR Department. T&D (training and development). training is not given to the existing employees. which will control the processes such as recruitment.. Without a guideline no business can be run successfully for longer period of time. they may not survive the second issue because of less trained employees.HRM 380. But in this competitive age. But there would be also some 34 . which are vital to the company success in the long run.
select. compensate or train their employees. Without it. So it is the best solution for them to run their business in a systematic way. But Bank One does not have any separate HR department for which it does not follow any specific rules to recruit. an organization is like helpless in a sea because every part of an organization is interrelated with HR.HRM 380. At first the company has to hire a trainer who will be recruited and trained firstly by the experienced managers.1 H M 380 1 Group-B ro B proper planning for train them effectively so that their efficiency in service providing increases more. So in this way employees will be trained effectively in a systematic way and from the right trainers. a proper T&D plan would be made. After giving the trainers proper training. Appropriate human resources assure an organization that the right number and kind of people are available at the right time and place so that organizational needs can be met. otherwise known as human resource management in a nutshell. 35 . Justification Employees and employee relationship with the organization¶s employers and as well as customer is the most important aspect. who are currently involved with Bank One and free from the mutual fund issue.
The bank should provide the technology to the service consultants the ability to do the call tracking which would allow them to see the overall information of a particular customer and how many times the customer had called up the consultants. which will help the consul tants in doing their job.This way the time consumed by the system can be saved and allocated to els ewhere necessary. They can execute front-end system. 36 . Recommendation Bank One requires technology that is specific to customer service. Different banks used different kinds of computers. The bank can improve the customer service by adopting the new technology.1 H M 380 1 Group-B ro B TECHNOLOGY SHOULD BE UPGRADED TO PROVIDE THE BEST SUPPORT TO CUSTOMERS Problem The technology used by Bank one was way too diversified. which will help them to access information of any customer without go through the different program applications of different branches. data storage. Every bank branches in different regions that were previously owned by other entity had a different data base system.HRM 380. mainframe etc which made it difficult for Bank One to merge all of them to form singular unit storage of data and information for easy use of its manipulation. Justification The newly developed technologies about this segment should be adopted by the bank.
other employees also get the head start to achieve better quality performances.1 H M 380 1 Group-B ro B THE ABSENCE OF EFFECTIVE AND AN EFFICIENT PERFORMANCE APPRAISAL SYSTEM Problem Absence of effective and efficient performance measurement lead the employee to feel de-motivated which in return might hinder the overall performance of Bank One.HRM 380. 37 . Performance appraisal is the core efficient method to motivate the employees in their work. As a result the organization will be benefited as well. When the employees are appraised for their performance. Justification If the performance appraisal is clear and strong enough to motivate the employees. the employees will have higher motivation to improve their skills and performance. Recommendation Performance appraisal must be precise and well enough designed in order to motivate the employees with higher efficiency for their better performance. Performance assessment should be built in such way so that it ca n give both the employees and the organization the highest benefit.
Bank One is facing a lot of difficulties with customer service and their financial problems.1 H M 380 1 Group-B ro B IMPLEMENTATION In early 2000. which changed Bank One¶s leadership to Mr. recommendations to those problems are given above. Jamie Dimon. it was observed that. implementation to those recommended solution are discussed below: 38 . Bank One has a lot of problems which are discussed in the HR issues. Now. Things started to change under the guiildance of Mr. former President of Citigroup Inc. Dimon. They also faced losses worth $511 million. however. after reading the case.HRM 380. Also.
in turn. it will lead them to hold more attentive attitude towards their quality of work of their co-workers. Dimon. The other forms of Total Quality Management issues of Bank One need to be evaluated with the regular or periodic meeting of the top management.1 H M 380 1 Group-B ro B LACK OF TQM CULTURE IN ALL ASPECTS OF COMMERCIAL CUSTOMER SERVICE AT BANK ONE Problem In this modern era of business world. It is true. Mr. However. Thus. a collective accountability for the organization can be established. this. In addition. also. Moreover. the CEO of Bank One has to take a lots of initiative like empowerment of customer service consultants. To achive this goal. Recommendation It is suggested that the organizational culture at Bank One should revolve quality service that will lead to ultimate customer satisfaction. the cultural bonding will tie the employees¶ together. which will then become their collective identity. will encourage employees to put higher commitment to the quality of their work and attachment to the company. Also. It is believed that.HRM 380. which was not the reality in Bank One. The ³quality culture will help Bank One in various ways. necessary steps need to be taken as soon as possible to inculcate and encourage the TQM oriented cultural practices. organizational culture is a very important prerequisite of success of any organization. grant those service employees as professionals whose main target is to perform well and serve the 60 million customers of Bank one with appropriate answers to all their enquiries. make them feel important. that cultures do not develop immediate ly. TQM (Total Quality Management) itself has to work as a part of the organizational culture to be effective. Those 39 . It will help to increase the morale of the employees and give them a strong feeling of belongingness. How the solution be implemented? The main concern of the shareholders¶ of Bank One is about quality customer service.
they can resolve the situation and create TQM culture in all aspects of commercial customer service at Bank One.1 H M 380 1 Group-B ro B assessment. Where the solution be implemented? Implementation takes place in the customer service department first. 40 .HRM 380. Because they are the one who has direct contact with the clients. Who will implement? The top management that means all the managers and other high officials has to aware about TQM. then can be fulfilled by middle -level and lower level management. When the recommended solution be implemented? The process will start immediately. Under the supervision of CEO.
They hire those employees who are unable to adopt their corporate culture and commitment to serve their customer with maintaining the s ame quality. which are vital to the company success in the long run. compensate or train their employees. so. training is unable to the existing employees. selection. to sustain in the market with the same position it must have to adopt new strategy. There is no specific Training and Development plan in Bank One¶s case. Moreover. legal aspects of employee behavior etc. select. those employees are engaging in unethical activities. But in this competitive age. The Bank One does not have any separate HR department. Thus. T&D (training and development). They need to be more tactful to be the leader in the banking industry throughout the world as the age is being competitive day by day. Without a guideline. The Bank One is one of the largest financial services company around the world.. the good repu tation of Bank One gets manipulated. Recommendation Bank One needs a separate HR Department. it does not follow any specific rules to recruit. employees attitude and behavior. therefore. Here Human Resources pl ay a 41 .1 H M 380 1 Group-B ro B THERE IS NO SPECIFIC MENTION OF ANY HUMAN RESOURCE DEPART MENT AND ITS SIGNIFICANT ROLE IN BANK ONE Problem Human Resource Departments are the heart of an organization. which will control the processes such as recruitment. company without proper HR department is a serious threat. no business can run successfully for longer period.HRM 380. They may train them in multi skills needed to serve their customers effectively but they do not train them to uphold the image of Bank One by maintaining company code of conduct. So. Compensation policy and employee -employer relationships.
They have to have a written criterion following which the recruitment committee members will hire the new employees so that they can identify the right person for their company. So in this way employees will be trained effectively in a systematic way and from the right trainers. Bank One should create a potential HR department.HRM 380. How to implement the solution RECRUITMENT & SELECTION PROCESS First. At first. a proper T&D plan would be made with the help of both the trainer and the top HR managers. However. the Executive managers of HR department should take the final decisions TRAINING & DEVELOPMENT PROCESS Bank One should provide training to its new as well as its existing employees according to the employees¶ knowledge level. Therefore . the company has to hire a trainer who will be recruited and mentored firstly by the experienced managers. a Recruitment and Selection Committee should be created consisting of some experienced people as well as professional HR managers or line managers who will maintain the whole process.1 H M 380 1 Group-B ro B key role in helping companies deal with a fast -changing competitive environment and the greater demand for quality employees.After giving the trainers proper information about the bank. who are currently involved with Bank One . Though without any effective HR department they are operating their business successfully. Who will implement? 42 . Under the control of the HR department Bank One. if they open this department their performance efficiency would increase positively. there would be also some proper planning for train them effectively so that their efficiency in service providing increases more.
Different banks used different kinds of comput rs. e mainframe which made it difficult for Bank One to merge all of them to form singula r unit storage of data and information for easy use and increased efficiency.HRM 380. data storage. then. the committee will hire some trainers from outside who has or will have the keen knowledge about Bank One to train their existing and new employees and also to create a proper T&D plan for the company. This way the time consumed by the system can be saved. a integration system has to develop to communicate between different system from mergers with regional banks. When the recommended solution be implemented? The process need to take place immediately. 43 . TECHNOLOGY SHOULD BE UPGRADED TO PROVIDE THE BEST SUPPORT TO CUSTOMERS Problem The technology used by Bank One was way too diversified. Then.1 H M 380 1 Group-B ro B The current CEO Jamie Dimon will implement the se plans. After that. Where the solution be implemented? The HR department will be established in all the operations of Bank One. In addition. they would recruit other HR managers by using the Recruitment & Selection Committee. First. Recommendation Bank One requires technology that is specific to customer service. after designating the newly hired HR people in the right position in the department. How will implement? It has to be done. convert those different systems into a platform where all the system will be united to be one. They can execute front-end system. which will help them to access information of any customer w ithout go through the different program applications of different branches. gradually. Every branch of Bank One in different regions that were previously owned by other entity had a different data base system.
new technologies can be used to provide better customer service. it is obvious that customers will a better service from commercial customer service consultants. Who will implement? The management can hire external software engineer to develop a unified system. 44 .HRM 380. It is vital to make the bank more efficient. customer service consultants can be allowed to do call tracking. then the executives can track about his/her past problems.1 H M 380 1 Group-B ro B Also. This process should be initiated as early as possible. In this way. When the recommended solution be implemented? This is a long-term process. Where the solution be implemented? The central database of Bank One is the best place to start the process where all the information of Bank One and its merged companies are kept. how the problem was solved and how often he/she calls in the customer care. when a customer calls in customer care of Bank One.
360-degree appraisal feedback. it is recommended that the performance indices should be tied to customer account based contribution. How the solution be implemented? As the main focus of the newly developed compensation standards are on performance. the management can use different ways of determining employees¶ performance like management by objectives. so that. To achieve better performance from Bank one employees¶.HRM 380. Performance assessment should be built in such way. Recommendation Performance appraisal must be precise and well enough designed in order to motivate the employees with higher efficiency for their better performance. teamwork capability and timely achievement of given objectives. and many more.1 H M 380 1 Group-B ro B THE ABSENCE OF EFFECTIVE AND AN EFFICIENT PERFORMANCE APPRAISAL Problem Absence of effective and efficient performance measurement lead the employee to feel de-motivated which in return might hinder the overall performance of Bank One. it can give both the employees and the organization the highest benefit. 45 .
then performance appraisal system need to be initiated as soon as possible.HRM 380.1 H M 380 1 Group-B ro B Management by objectives (MBO) 360 degree appraisal Behavioral Observation Scale (BOS) Behaviorally Anchored Rating Scale (BARS) Who will implement? The current CEO Jamie Dimon will implement these appraisal method. 46 . When the recommended solution be implemented? If Bank One has to be competitive in the market. Where the solution be implemented? The new performance appraisal systems will be established in all the operations of Bank one.