Valley National Bank Essay
Valley National Bank
In the process of acquiring another bank and increasing its assets to 12 billion dollars, the senior management at Valley National Bank has recognized that they need to make some critical decisions regarding the bank, if they want it to stay competitive in the future. Taking a look at the accounting department, there seems to be many human resource issues that need to be resolved.
Overall Accounting Department Issues:
There are several key issues just within the accounting department: There doesn’t seem to be appropriate organizational structure within the department. Employees have positions that they don’t belong in or they don’t deserve. There is a lack of payment equality. Some employees are getting paid more than what they deserve and some less. The accounting software isn’t being used to its full extent because of many of the employees are not familiar with it.
Specific Employee Issues:
Bob Phillips: Mr. Phillips went from managing 2 people to managing 10 people. He was not able to adjust and according to employees working under him, he didn’t explain what he wanted them to do. His subordinates did not have any direction. He is not a good manager and many of the good employees ended up leaving the bank because of him. He replaced good employees with others who were not very qualified. Overall, Mr Phillips is not a good manager and shouldn’t hold a managerial position. He does however have good software/accounting skills. Also, Mr Phillips has been having severe health and personal issues.
Carla Goodman: Ms. Goodman was placed in charge of several people and given a promotion of two pay grade levels. She was unable to supervise and review employees and was freed of those responsibilities. Even though she was freed of those responsibilities she still got paid the same amount. She has had shouting matches with Mr. Phillips and Ms. Roberts also received a note reporting sexual harassment between Ms. Goodman and another employee.
Process of acquiring new bank increases finances.
New accounting software
Employees have technical strengths
Because of acquisition, the bank has money to train and expand employees. Better customer satisfaction with training of employees to use software Increase management skills, cross train those who already have technical strengths.
Inexperience at a level of 12 billion dollars
Inequality of pay between employees
Some employees have jobs they cannot handle
Some employees should probably be terminated.
More employees might leave to go to other departments or competitors There may be lawsuits.
There are many changes that need to be put into place. I believe that the job specifications and job descriptions of many of the positions need to be re-done. The job specifications/details need to be clearly defined so that not anyone can just get promoted without deserving it or without being capable of doing the job.
The way performance reviews and appraisal system needs to be redone. The appraisal system needs to improve how employment competencies should be measured. There also needs to be an appropriate compensation system so that employees are getting paid what they deserve and no employee is underpaid or overpaid. Employees who don’t have skills or potential to learning skills that are required for their positions should be terminated or transferred to a different position. Training programs should be developed to cross train employees. I don’t agree with Mr. Sterrett’s recommendation of terminating Mr. Phillips. It is stated that Mr. Phillips has severe health and personal issues. If his position is terminated he may be able to create a case against the bank for disability discrimination.
He can claim that his position was terminated because of his sickness. I believe he should be spoken to and should be given an option to transfer to another position that uses his accounting/software skills instead of his managing skills. He should be able to work as long as his sickness is not affecting his work. I would also recommend that first and foremost the sexual harassment note about Ms.Goodman needs to be investigated. She needs to be interrogated and the bank should know what that situation entailed. I don’t see any evidence presented that indicates sex discrimination so I would definitely consider terminating Ms. Goodman’s position. She is not providing even close to the value to the company that she is getting paid. She doesn’t deserve what she is making at all. Having her has an employee much longer could be a potential risk to the bank.