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HR Challenges in Banking Case Study

The document describes issues at a local bank where employee turnover is high across multiple branches, supervisors hire employees without coordination between offices, and a board member is unsure what the root problems are and how the home office should address them. After touring branches, the board member sees similar problems and is puzzled about what action to take to improve the situation.

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57 views1 page

HR Challenges in Banking Case Study

The document describes issues at a local bank where employee turnover is high across multiple branches, supervisors hire employees without coordination between offices, and a board member is unsure what the root problems are and how the home office should address them. After touring branches, the board member sees similar problems and is puzzled about what action to take to improve the situation.

Uploaded by

sandeep_londhe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Case Study - Establishing HR practices

“Jack Nelson’s Problem”


As a new member of the board of directors for a local bank, Jack Nelson was being introduced to all the
employees in the home office. When he was introduced to Ruth Johnson, he was curious about her work
and asked her what the machine she was using did. Johnson replied that she really did not know what the
machine was called or what it did. She explained that she had only been working there for 2 months.
However, she did know precisely how to operate the machine. According to her supervisor, she was an
excellent employee.
At one of the branch offices, the Supervisor in charge spoke to Nelson confidentially, telling him that
something was wrong‖, but he didn‘t know what. For one thing, she explained, employee turnover was
too high, and no sooner had one employee has been put on the job than another one resigned. With
customers to see and loans to be made, she continued, she had little time to work with the new employees
as they came and went.
All branch supervisors hired their own employees without communication with the home office or other
branches. When an opening developed, the supervisor tried to find a suitable employee to replace the
workers who had quit.
After touring the 22 branches and finding similar problems in many of them, Nelson wondered what the
home office should do or what action he should take. The banking firm generally was regarded as being a
well-run institution that had grown from 27 to 191 employees during the past 8 years. The more he
thought about the matter, the more puzzled Nelson became. He couldn‘t quite put his finger on the
problem, and he didn‘t know whether to report his findings to the President.

Questions:
1) What do you think is causing some of the problems in the bank‘s home office and
Branches?
2) Do you think setting up an HR unit in the main office would help?
3) What specific functions should an HR unit carry out? What HR functions would then be carried
out by supervisors and other line managers? What role should the Internet play in the new HR
organisation?

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