Hello Every one Hope u r all enjoying ur good health, i want ur help and guidence while solving this case study.
CASE STUDY:
Regional bank had been effected by the ‘Global Financial Crisis’ more than most Australian banks. As one of the smaller banks, access to money had become expensive, and the reduction on lending (both commercial and residential) was eating into gross profits. On top of that, floods and cyclones had caused further deterioration in their financial position. The bank’s executive management team considered that they were fighting for the very survival of the business.
‘Okay, do well agree that the best way to get flexibility and reduce costs is to outsource our IT and customer service operation?’ asked Kelly O’ Brien, Rural Bank’s managing director.
“It makes sense’, Commented Claudio Vida, CFO, ‘Our back office staff belong to a different era. They are used to tightly defined jobs, uniform pay rates and guaranteed job security. They are a bunch of prima donnas. We need more flexibility and reduced costs. If the back office people would be more flexible, it would give us the opportunity to reduce costs.’
‘Well, we can’t just sack them’, growled Susan Cramer, HR manager, ‘some of these people have given more than 20 years of loyal services.’
‘Look Susan, times change. Loyalty is great word, but it doesn’t exist anymore. We are going bankrupt. We need to focus on what employees bring to the table now, not what they did in the past. How do you expect the bank to survive in this economic climate if we don’t reduce costs?’ Claudio.
‘There is one other thing’, said Susan.
‘What is that?’ sighted Kelly.
“All the back office staff is unionized. The Bank Workers Union would never agree to any restructuring. They are losing members with all the headcount reductions. They are in a worse financial situation than we are. They need every member they can get.’ said Susan.
Kelly shuffled in her sear and sighted, ‘Terrific. What other good news do you have?’
‘The union will scream blue murder that we are using the present economic downturn as an excuse to shift Australian jobs offshore. Some of the other banks have taken a lot of heat. Management have been accused of paying themselves obscene salaries and being grossly incompetent. The argument is ‘Why should workers be made to suffer because of top management’s bad decisions?’ said Susan.
‘For heaven sake, don’t these people realize what we are up against? We have the competition snapping at our heels and our financial situation is precarious’, said Kelly.
Susan shifted nervously in her chair then spoke. ‘Kelly, I suggest that until we can get our heads around this, we freeze all recruitment and investigate the possibility of an early retirement program to get the immediate numbers down. At the same time, we need to increase the use of part-time or casual staff to give us greater flexibility.’
‘Susan, anything that sheds jobs, increase productivity and makes us more competitive is worth looking at. What do the rest of you think of Susan’s proposal?’
Task:
Write an essay that identifies and explains the HR issues involved in this situation, identify the stakeholders and their respective interests, and presents a possible solution to the problem at Regional Bank.
From Pakistan
CASE STUDY:
Regional bank had been effected by the ‘Global Financial Crisis’ more than most Australian banks. As one of the smaller banks, access to money had become expensive, and the reduction on lending (both commercial and residential) was eating into gross profits. On top of that, floods and cyclones had caused further deterioration in their financial position. The bank’s executive management team considered that they were fighting for the very survival of the business.
‘Okay, do well agree that the best way to get flexibility and reduce costs is to outsource our IT and customer service operation?’ asked Kelly O’ Brien, Rural Bank’s managing director.
“It makes sense’, Commented Claudio Vida, CFO, ‘Our back office staff belong to a different era. They are used to tightly defined jobs, uniform pay rates and guaranteed job security. They are a bunch of prima donnas. We need more flexibility and reduced costs. If the back office people would be more flexible, it would give us the opportunity to reduce costs.’
‘Well, we can’t just sack them’, growled Susan Cramer, HR manager, ‘some of these people have given more than 20 years of loyal services.’
‘Look Susan, times change. Loyalty is great word, but it doesn’t exist anymore. We are going bankrupt. We need to focus on what employees bring to the table now, not what they did in the past. How do you expect the bank to survive in this economic climate if we don’t reduce costs?’ Claudio.
‘There is one other thing’, said Susan.
‘What is that?’ sighted Kelly.
“All the back office staff is unionized. The Bank Workers Union would never agree to any restructuring. They are losing members with all the headcount reductions. They are in a worse financial situation than we are. They need every member they can get.’ said Susan.
Kelly shuffled in her sear and sighted, ‘Terrific. What other good news do you have?’
‘The union will scream blue murder that we are using the present economic downturn as an excuse to shift Australian jobs offshore. Some of the other banks have taken a lot of heat. Management have been accused of paying themselves obscene salaries and being grossly incompetent. The argument is ‘Why should workers be made to suffer because of top management’s bad decisions?’ said Susan.
‘For heaven sake, don’t these people realize what we are up against? We have the competition snapping at our heels and our financial situation is precarious’, said Kelly.
Susan shifted nervously in her chair then spoke. ‘Kelly, I suggest that until we can get our heads around this, we freeze all recruitment and investigate the possibility of an early retirement program to get the immediate numbers down. At the same time, we need to increase the use of part-time or casual staff to give us greater flexibility.’
‘Susan, anything that sheds jobs, increase productivity and makes us more competitive is worth looking at. What do the rest of you think of Susan’s proposal?’
Task:
Write an essay that identifies and explains the HR issues involved in this situation, identify the stakeholders and their respective interests, and presents a possible solution to the problem at Regional Bank.
From Pakistan
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The way you have framed this question indicates that you want members of CiteHR to write the essay for you.
If you have problems with the project, you need to discuss this with your professor/tutor first and seek guidance from them.
From Australia, Melbourne
663The way you have framed this question indicates that you want members of CiteHR to write the essay for you.
If you have problems with the project, you need to discuss this with your professor/tutor first and seek guidance from them.
From Australia, Melbourne
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