Assignment #1 Business Strategy
HRM530 Section 016
April 23, 2011
A Case Study
I. I would recommend that Mountain Bank implement the following competitive strategy for the reasons given:
a. Mountain Bank should follow the differentiation strategy.
i. Mountain Bank should follow this strategy because few organizations can successfully use the cost leadership strategy. One problem with a cost leadership strategy is usually only one organization can be the lowest-cost provider in any industry. The organization that is often successful at the cost leadership strategy is an organization that has a large share of the market (p. 48). Mountain ...view middle of the document...
Mountain Bank should focus on offering customized services and providing something better than competitors. Mountain Bank has traditionally approached the teller position as a low-paying, entry-level position. Turnover is quite high, and successful tellers are often transferred to customer service positions. Mountain Bank should focus on hiring employees who do things better than the employees of their competitors. This will help Mountain Bank to be perceived as providing a different value by adapting rapidly to changing customer preferences. Customers have very different needs and expectations. Mountain Bank will need employees to change their actions to best serve each customer.
II. Given that Mountain Bank will pursue the universalistic approach and commitment strategy, I recommend that the bank instill the following practices for its tellers:
a. Implement teller staffing that will build a strong sense of loyalty and commitment. Build long-term relationships with tellers and identify skilled tellers.
b. Empower tellers by building employee confidence, increase levels of responsibility, and include tellers in decision making.
c. Offer training that is extensive for new tellers, provide formal training for all employees, and allow tellers opportunities to develop multiple job skills.
d. Compensate tellers by increasing teller pay and pay for performance.
e. Job tasks for tellers that will broaden job responsibilities, include meaningful tasks, and offer variety of teller tasks.
f. Increase communication by encouraging suggestions, encourage two-way communication, and develop a quality-of-life survey.
III. The following is a brief description of the HR strategies that Mountain Bank may consider:
a. The Loyal Soldier HR strategy is a human resource strategy that combines emphasis on long-term employees with a focus on reducing costs. This strategy emphasizes hiring and retaining loyal employees who do whatever the company asks of them. Employees have broad roles and perform a variety of different tasks. Employees are provided extensive training in a number of different skills. Promotions are often made into positions that are not closely related to previous experiences. Performance appraisals facilitate cooperation. Long-term incentives and benefits are often linked to the overall performance of the organization (p. 59-60).
b. The Bargain Laborer HR strategy is a human resource strategy that combines emphasis on short-term employees with a focus on reducing costs. This strategy obtains employees who do not demand high wages. Training is limited to completing specific tasks. Careers do not provide clear paths for promotions and advancement. Performance appraisal focus on day-to-day feedback. Compensation is based on hours worked, and benefits and long-term incentives are minimal (p. 60).
c. The Committed Expert HR strategy is a human resource strategy that focuses on long-term employees with a focus on...