Case The Overpaid Bank Tellers Essay Example | Topics and Well Written Essays - 500 words

Case The Overpaid Bank Tellers - Essay Example For this reason, the HR department needs to realize is that tellers are the most important staff members in the bank. In this regard, tellers are the daily face of the bank to their customers since they interacted with them daily. For this reason, the HR committee should uphold the bank’s result-based system of increasing compensation and giving raises due to the rising cost of living. In this regard, altering the pay increase of the clerks will demoralize them. In addition, since the group of tellers was competent in its work, there was no need of making a decision based on findings from a survey conducted by another bank that is a competitor. From the case provided, it is evident that another bank, which is a competitor to State Bank, conducted this survey. In addition, it is important to point out that State Bank is the most progressive of the four banks operating in this area. Hence, while the wages in the survey might be accurate to some extent, the HR committee should not completely trust the accuracy of the wage survey. In addition, the committee should not completely trust the survey since there is no certainty whether the other banks responded honestly to the survey and provided the correct information. The policy by State Bank to raise their employees’ salaries based on their performance is of fundamental importance towards ensuring the achievement of the bank’s objectives and those of their individual employees. In this regard, this is the best way to ensure that the employees’ morale was high and effectively maintained to meet their individual set targets while the bank on the other hand realized its objectives. However, for this to work effectively, the bank has to define performance by outlining the types of input, behavior, and outcomes employees are supposed to meet (Latham & Wesley, 1994). In this case, these three factors are crucial in establishing the yardstick within which the bank will base its