OL500: Final Project Milestone # 3
Bank of America tries to charge debit card fees
The main purpose of the case study is to demonstrate organizational studies, organizational theories, and organizational behavior of Bank of America trying to charge $5 debit card fees. The case study will implant the systematic study and careful application of knowledge about how people –as individuals and as group will act upon this issue. Moreover, we will encompass the study of organization from multiple viewpoints, levels of analysis and methods may be used to resolve it through prediction and explanation of some hypothesis.
Bank of America was first opened on ...view middle of the document...
. One example of a service line is Bank of America's retail, commercial, investing and asset management arms. Unlike departments, divisions are more autonomous, each with its own top executive--often a vice president--and typically manage their own hiring, budgeting and advertising. There are several advantages and disadvantages within this structure which described as follows:
Divisions work well because they allow a team to focus upon a single product or service, with a leadership structure that supports its major strategic objectives. Having its own president or vice president makes it more likely the division will receive the resources it needs from the company
A divisional structure also has weaknesses. A company comprised of competing divisions may allow office politics instead of sound strategic thinking to affect its view on such matters as allocation of company resources. Thus, one division will sometimes act to undermine another.
Making It Work
To be successful, divisions must be well managed. Executive leadership is the single most important determinant of success for a company using a divisional structure. The top leaders need to understand what each division is doing and provide leadership to the division chiefs on how to accommodate new strategic directions or more effectively partner across divisions.
The company culture:
Bank of America has also had to face the modern realities of embracing multicultural diversity in the workplace. Bank of America has encountered notable pressure to expand its operations into the global community (Datamonitor, 2005). In addition to expanding its operations to international offices, the organization also manages a wide base of accounts for clientele in foreign countries. As such, ensuring multicultural diversity in such a broad organization requires notable consideration of how operations will impact awareness of cultural diversity in the work place. Bank of America, because of its strong ties to America, must engage in proactive efforts to ensure that multicultural diversity in the organization are protected and utilized as an asset for organizational development.
is said to exist where staff respond to stimulus because of their alignment to organizational values.
Where there is little alignment with organizational values and control must be exercised through extensive procedures and bureaucracy. Where culture is strong—people do things because they believe it is the right thing to do.
The company organizational challenges and center of issue:
Big banks, facing declining revenues and a regulatory climate that leaves them fewer creative ways to make money, are quietly introducing or experimenting with fees that are sure to outrage customers.
Analyst are assuring that Bank of America is applying those fees to help improve the company earnings going forward because of their poor performance in their last quarter earnings...