Stability Bank Problem and Solution
Diagnose the Problem
The main problem in Stability Bank case study is the challenging facing the human
resource department in placing people in different job positions in a short duration of time.
The merging of the Fidelity Trust increased the number of employees for the bank. It is the
work of the human resource manager to ensure all employees were placed in suitable job
positions. Besides, there are too many people making the decisions towards the placement of
the employees and with different ideas on how to strategically decide about the employees’
job positions after the merger of the two large companies. The CEO and HR managers have
different ideas and styles on how employees should be placed in different job positions. John
was CEO of the company and had promised to place all the employees in a different position
as he oversaw the human resource department. The Vice President, Mr. Fred had worked
with the Stability Bank for 30 years, while Linda had just been freshly hired to the human
resource department with no prior experience with a banking institution. The three leaders
have communication problems and assume each other’s ability to lead in the exercise of
employees’ placement. John, Fred, and Linda fail to realize that their combined expertise and
skills can strategically solve the problem correctly by coming up with a solution for the
immediate issue (Lunau & Templer, 1999).
The Correct Diagnosis
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The three leaders have different leadership styles as well as having a different
educational background and career pathway that significantly affect their approach to
decision making.
Fred, the Vice President, has the old school of a managerial approach to the current
problem of the bank. The Vice President for human resource tends to organize, regulate and
control the available human capital basing his experience and knowledge in the banking
sector. His traditional way of thinking for the issue shows that he is using the “old school”
approach as he believes employees’ performance should earn them promotions and fails to
capture the higher demands facing modern managers of keeping employees motivated
continuously and promoted in order to retain them and remain committed in their tasks or
roles (Rees & Smith, 2017).
Linda was hired as the human resource manager after her experience in the different
sector and recently graduated from MBA. Linda is from modern school of human resource
management and started her employment path recently. She possesses the knowledge and
expertise of how the issue could be solved and helps the workers to remain motivated in their
jobs. Despite being new in the management field, Linda seems to possess an excellent
leadership style of motivating as well as counseling employees to improve their performance.
Linda desires to work with employees and help them find interventions and strategies to keep
them motivated and happy to work for the bank. She, however, faces challenges as her
motivation to improve her performance under the new boss is fading away, and she no longer
feels excited to face the new challenge of placing the employees correctly according to their
job specifications (Lunau & Templer, 1999).
The CEO, Mr. John Smith, appears to possess management skills in the human resource
field. John seems to give orders as he believes he is the best and things should be done in his
STABILITY BANK PROBLEM AND SOLUTION 4
way. He delegates orders to the Vice President, Fred and expects all the new employees from
Fidelity Trust to be placed in job positions just as soon as possible. His skills and work ethics
made him focus on the human capital as well as committed to keeping them happy and
motivated. This has ensured that his workforce remains loyal to the company, a concept
acknowledged by Fred. The VP believes that employees should automatically adhere to the
rules of the organization and be dedicated to the tasks assigned. However, from Linda’s
reaction to the issue, it is evident that time has changed and employees’ attitudes towards a
diverse work environment. Besides, the case shows that roles have reversed and employees
are competing with different organizations to gain and retain the talented young workforce.
Therefore, Linda is motivated by the intrinsic factors, and she does not believe in
Fred’s management style. Fred sticks to his theory that workers should work for their
promotions and ensure job satisfaction for employees which is a crucial priority for the
institution. It is evident that John loves making his employees happy, but he lacks both
interpersonal and communication skills to engage other stakeholders towards finding an
amicable solution to the current problem. The case study shows the real picture of issues
facing modern businesses with different leadership styles and different schools of thought
who fail to harmonize solutions for long-term strategies in organizations (Rees & Smith,
2017).
3 Alternative Approaches to Resolve the Problem
a) The three leaders should work out together for a strategy that will ensure employees
are placed in the right positions. They should allow Linda to meet the current
workforce to choose their most appropriate positions which best suit them. Despite
taking long duration, this strategy can solve the issue and ensure that all employees
are motivated with the current positions and improve their performance (Rees &
STABILITY BANK PROBLEM AND SOLUTION 5
Smith, 2017). Fred feels his retirement is soon approaching and he should not be
engaged in this exercise.
b) The three leaders (Linda, John, and Fred) should have a joint meeting to negotiate for
a strategic solution that will focus on the immediate solution and establish a lasting
intervention. The typical strategy will ensure employees are motivated, satisfied and
placed in the right job positions through counseling and establishing accurate job
descriptions.
c) The bank can hire an outside consultant with the right expertise to solve the solution
by engaging all stakeholders involved in this issue.
Provide 1 Detailed Recommendation
Alternative 3 provides the best solution for the immediate issue. Coming up with a
strategic solution depends on the three leaders. A consultant will ensure that the three works
together for a common purpose. It is essential that the bank takes into consideration all the
proposals by the three leaders. Organizations depend on teamwork. Shared understanding and
acceptance will be critical in establishing a way out. The Linda’s proposal will be useful as it
will ensure counseling and right placing of employees. The proposal by VP and John will
ensure that the bank keeps employees motivated and loyal to the organization. Therefore, the
consultant will consider all ideas to come up with a strategic solution that will be long lasting
and avoid future deployment of employees (Clair & Milliman, 2017). Communication and
interpersonal skills will be essential in this option. Besides, the solution will be useful, and
employees will be placed in fitting positions for improved performance.
Defend your Choice
I recommend the bank to hire a consultant to ensure that the three leaders work together
on negotiating an effective and long-term solution. The three will have no option but to work
STABILITY BANK PROBLEM AND SOLUTION 6
together and communicate effectively through the consultant who will foster improved
teamwork for the bank managers (Ahmad, 2015). The three believe their option is the right
way for the situation and each believes his or her option best fits the employees. They should
acknowledge the diversity of the modern workforce and different leadership styles and come
up with a common strategy for the problem. The consultant will ensure every person is
satisfied and solve the stressful issue for the three managers. Besides, a consultant will
improve work ethics, teamwork, interpersonal and communication skills for the Stability
Bank.
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References
Ahmad, S. (2015). Green human resource management: Policies and practices. Cogent
Business & Management, 2(1), 1030817.
Clair, J., & Milliman, J. (2017). Best environmental HRM practices in the US. In Greening
People (pp. 49-73). Routledge.
Lunau, E., & Templer, A. (1999). Developing Your Workforce Effectiveness: Stability Bank:
Case Thirteen.
Rees, G., & Smith, P. (Eds.). (2017). Strategic human resource management: An
international perspective. Sage.
