Organizational

Development
OLD FAMILY BANK
Presented By: Eonique Brown
Chantal Garrison

Objectives
To

present a summary of the

case.
To identify the macro problem
at The Old Family Bank.
To state the micro problems
at The Old Family Bank.
To outline causes of the
problems.

Objectives
To

indicate the systems that

have been affected.
To list options that exists for
resolving the problems at the
company.
To state the pros and cons of
each option that was listed.

Objectives
To

recommend an
appropriate course of action
to resolve the problem.

Macro Problem

Old Family Bank is faced

with the macro problem
of falling profits.

Micro Problems
Demotivated

and
demoralized employees
Minimal employee
loyalty
Poor H.R. strategies

Micro Problems
Inadequate

amounts
of employee
interaction/communica
tion

Causes of the Problems

Absence

of a Human

Resource
Manager/Department
Ineffective management
decision making

Systems Affected
Managerial

System
Structural System
Goals and Values
System
Psychosocial System

Options for Resolving

Problems

Compensate

employees based
on experience,
performance, and
education.

PROS VS. CONS

PROS
Workers

would
feel they are
being paid
fairly and
would have a
boost
in morale.

CONS
Employees

with
less experience
and education
would be at a
disadvantage.
Most of the
problems within
the company will
still exist.

Options for Resolving

Problems
Terminate/Fire

employees who
possess no loyalty to
Old Family Bank.

PROS VS. CONS

Negative

PROS

attitudes by
these
employees
will not be
spread to
other
employees.

CONS
Other

critical problems
will still exist.

Old

Family Bank might

lose employees who
are productive which
might not be reflected
in the study.

Costly

and time
consuming to workers.

Options for Resolving

Problems
Employ

a competent
Human Resource
Manager.

PROS VS. CONS

PROS
This

CONS

will solve all This may be

the issues
time
identified which
consuming
would have
and costly.
otherwise been
avoided if there
was a competent
Human Resource
Manager.

Options for Resolving

Problems
Conduct

a survey to
identify the competitive
pay scales of other
organizations and get
some insights into how
to compensate

PROS VS. CONS

PROS
Employees

would be
aware that
they are
receiving
competitive

CONS
It

does not
guarantee
employee loyalty
or retention.
Other critical
problems will
still exist.

Recommended Course of
Action
Recommended

Action:
Hire a competent H.R.
Manager
Person Responsible: Top
Management
Timeline: Immediately/ As
soon as possible.

Recommended Course of
Action
Methodology
Recruit,

screen and select a H.R. with

significant experience in the banking
industry and is people oriented.
Articulate the companys vision,
mission and strategic goals so that
H.R. plans and procedures will be in
congruence.

Recommended Course of
Action
Benefits to the Organization
Most

(if not all) of the micro

problems will be resolved which will
in turn result in the avoidance of the
macro problem.

Increased

organizational productivity.

Recommended Course of
Action
Hazards if the action/s
is/are not taken
Old

Farm Bank will face an

increase in the existing
problems (both micro and
macro) which may result in the
business going bankrupt and
closing down.