Identify 3 most strategic issues being faced by the bank, rank

them in order and justify your ranking.

Issue-1: Disparity in payment of managers in view of their job
responsibilities
Justification:
Suzanne Roberts, the Vice President of Accounting of Valley National Bank
noticed that some of the best contributors of her department were the
lowest paid employees whereas some of the inefficient managers were
drawing high salaries i.e. there is absence of performance based
payment.
For example, Bob Philips, a manager of the department lacks
organizational and planning skills to manage his people. He is unable to
complete employee performance appraisals on time. Also his weak
interpersonal skills have caused employee resentment and many good
employees have left the company. In their place some inefficient people
have been hired.
Similarly, Carla Goodman is another manager who draws a quite high
salary but does not accept the responsibility of supervising and reviewing
people. She openly criticises the company, thus drawing concerns of other
employees.
Greg Williams is not the quickest person to catch on to things, and has a
difficult time interacting with others.
On the other hand, Kathy Lewis, the most efficient manager in the
department is technically sound, has good knowledge of the latest
systems, is willing to put in extra hours of work to get jobs done, and
effectively manages the people. However, her salary is not commensurate
with the responsibilities that she takes.
Inefficiency of some of the managers is reducing employee
morale. Also, the disparity in payment may result in diminishing
the drive of the hard working managers.
Issue-2: Inexperience of managers and employees
Justification:
Valley National Bank will shortly acquire the new bank after which its
assets will be close to $12 billion. Even though there is a wealth of talent
in the acquired company, yet the managers and employees do not have
much collective experience of managing a large company.
The line and staff management employees do not have the requisite
knowledge/ expertise to use the managerial accounting software. Usage of
the software is necessary for making better decisions in the daily
operations and thus benefitting the bank in terms of bottom-line results.
Issue-3: Recruitment policy vis-a-vis placing right people at right
positions
Justification:
The recruitment policy of the company is faulty since it was found that
often the first person who walked in for the job interview was hired. Since
human resource is the most important element in taking a company

forward, recruitment of employees should not be done in such a slipshod

manner.
Suzanne Roberts has also observed that the right people are not placed at
the right places in the department and as such optimum utilization of
human resource is not being done.