The Performance Of The Irish Abc Bank Commerce Essay Example

security, future prospects, and the expectation of further decline in property prices.

Competition from both foreign-owned and Irish-owned banks has also decreased. Nevertheless, ABC Bank remains open for business and continues to provide loans to new clients who meet their credit requirements. Initially, ABC Bank's strategy focused on providing loans for home purchases while offering competitive savings rates. However, they shifted their focus towards offering competitively priced home loan products and reduced their emphasis on attracting savings customers. In recent years, they have attempted to attract new customers by offering competitive rates as well.

This change in focus is partly driven by a decrease in mortgage applicants and the impact of the global financial crisis. The bank has faced increasing borrowing costs which have resulted in lower margins and profits.In addition to being crucial for enhancing financial stability and improving ratings with international lenders and money markets, maintaining a strong level of savings is seen as important. ABC Bank diversified its offerings by providing loans to property developers in Ireland and the UK for purchasing and developing land as well as commercial buildings in order to increase profits. However, despite this decision coinciding with the peak of property prices, ABC Bank chose to halt lending in this market due to increased risk. As a result, NAMA compelled them to sell impaired loans at a discount, putting pressure on other areas of the company to increase profits and reduce costs. It is expected that removing these toxic assets will restore international confidence in the financial system and allow the bank to extend credit. According to the Organisational Level Diagnostic Model for ASU, conflicting forces are being experienced by

the Arrears Support Unit at ABC Bank. The bank has an extensive HR department that enforces practices and policies related to hiring, managing, and deploying employees. By implementing modern practices, this department consistently achieves high rankings in employee surveys. In fact, ABC Bank was recognized as one of Ireland's top 20 large companies to work for in 2010.ABC Bank's Development section offers a range of benefits to promote work-life balance among its employees. These include flexible working options, term time working, job sharing opportunities, employee assistance programs, discounted annual travel passes, and a motorcycle-to-work scheme. The bank's staff policy is flexible as long as it aligns with the company's interests.

The internal Learning and Development section focuses on continuous development of employees. It provides internal courses on ABC systems usage and other courses such as "7 habits of highly effective people." External courses for Qualified Financial Advisor (QFA) qualifications are funded by the bank, and financial support is available for further education.

Over the past decade, ABC Bank has transformed its workforce from unskilled branch tellers to skilled financial advisors who have completed industry certified exams (QFA). This transformation was driven by regulations from the Central Bank of Ireland that require qualified employees providing client advice.

Overall, the ABC Learning & Development section offers various benefits and opportunities for employees to maintain work-life balance. These include options like flexi clip and term clip, remote work or shared job responsibilities. Additionally, there are employee aid plans and reduced cost annual travel passes available. The bank also supports alternative commuting methods such as the motorcycle-to-work strategy.ABC Bank places a strong emphasis on flexibility for its staff, aligning with the company's

interests. The bank has an internal Learning and Development section that provides courses on various topics, including the effective use of ABC systems and personal development skills. Although funding for external courses is limited to QFA qualifications, employees are encouraged to further their education with financial support. This investment in employee development has resulted in a shift from unskilled branch tellers to qualified financial advisors, which was driven by regulations set by the Central Bank of Ireland.

The Development section ensures that all members of the Arrears Support Unit (ASU) at ABC Bank receive proper training and qualification. The ASU primarily consists of permanent staff who were reassigned from other areas due to staffing changes. These employees had the choice to join the ASU or face potential layoffs. Despite the challenges, this transition has been fortunate as new staff members bring a diverse range of skills and expertise in project management, sales, HR, and IT.

This allows the ASU to handle projects and improvement strategies internally without relying on other departments for skilled personnel. By having dedicated staff within the unit, managers can focus on critical issues while employees handle their daily responsibilities.The ASU faced the issue of identifying recognized squad leaders and establishing squad structures to establish a clear hierarchy for new employees. Unlike other administrations, the ASU also employs temporary and contract workers with different purposes. Temporary employees are hired with the intention of becoming permanent once the economic situation stabilizes, while contract workers are hired for specialized skills and are only needed temporarily.

Within the ASU, there are three squads: early arrears, mid arrears, and serious arrears squads. Each squad has its own designated leader

and consists of permanent, temporary, and contract employees who are assigned based on workload without considering age, gender or background. However, career progression within these squads is limited due to a lack of job variety and advancement opportunities.

The main objective of each squad is to identify clients in arrears and ensure payment if possible. When a client moves from the early arrears squad to either the mid or serious arrears squads, the level of pressure increases. Some employees at ASU prefer the current team structures while others express interest in attending court proceedings. Those interested receive support and appropriate training.ASU employees at ABC Bank often experience stress while dealing with clients who are behind on payments for reasons like redundancy, bereavement, separation, divorce, or abandonment. Although ASU does not provide specific support for staff handling these issues, it encourages them to take breaks after difficult phone calls. The team regularly meets to review challenging cases and develop innovative approaches to address them. To promote collaboration and problem-solving, ASU implements a buddy system where staff members can discuss cases and find solutions together.

Motivating the team in this field of work can be difficult; however, managers hold regular one-on-one feedback sessions with employees to acknowledge their good work and recognize individual contributions. Regarding compensation within ABC Bank, various types of contracts have been developed over time. Traditionally, clerical employees were hired with wage increases based on years of service according to a graduated scale. However, due to the current economic climate, there have been no recent wage increases for clerical employees.

On the other hand, directors and specialist employees (such as HR personnel, IT personnel, and Legal personnel)

were hired with agreed wages at the time of hiring. These employees do not receive automatic wage rises except through national wage understandings.Bonuses based on performance have not been given to specialist/manager categories in recent years. The Arrears Support Unit (ASU) at ABC Bank consists of Managers, Specialists, and Clerical staff with different compensation agreements. Clerical employees in the ASU team benefit from flexi-time arrangements, which are also common throughout ABC Bank. However, specialists or managers do not have this flexibility. Currently, no employees in the ASU squad work part-time or share their jobs. However, it is expected that this will change as more staff are hired and current employees progress in their personal lives. It is important to note that ABC has not provided any wage increases to its employees regardless of their position recently, indicating that compensation is not a priority for ASU management. In the future, when wage increases are granted based on continued employment or performance, the ASU management team will need to consider how each form of compensation impacts budgeting. The ASU unit follows all other standard compensation agreements common throughout ABC Bank including national wage agreements, employee aid plans, and motorcycle-to-work schemes. Compensation options offered include direct and indirect base pay, overtime wages, incentive pay (currently unavailable due to economic conditions), bonuses commissions profit sharing/gainsharingThe ASU unit complies with legal requirements such as PRSI and family + medical leave. Optional benefits like vacations, health insurance, employer pension contribution, and tuition fees coverage for dependents' care expenses are available. Flexi time and job sharing agreements can also be arranged. The Employee Assistance Program and annual flu vaccination program are provided.

However, tax-free annual coachRail tickets are currently not offered due to economic circumstances. Tuition fees for the course follow the Mello, 3rd Edition guidelines.

Regardless of their position, all employees at ABC Bank have a formal performance management system in place. Managers receive a handbook that outlines how performance management is conducted within the bank. An initially complex computerized system for recording performance assessments was abandoned in favor of a user-friendly system easily understood by appraisers and evaluators.

Managers are encouraged to hold monthly meetings with staff to discuss progress and ensure goals remain attainable. Evaluations are required twice a year and involve completing computerized forms attached to employee records. At the beginning of each calendar year, employees and managers meet to establish goals for the upcoming review period.Performance management is conducted for new employees after their probationary period ends, with active participation from both employees and managers. Employee goals are expected to meet the SMART criteria (Specific, Measurable, Achievable, Relevant, and Time-bound), which can be either individual or team-based. At ABC Bank, senior management communicates corporate objectives to all teams, which are then integrated into each employee's goals. Each goal is weighted differently to ensure prioritization of what the manager considers important. Team-based goals communicate objectives set for the team and emphasize their involvement in achieving them.

Every six months, employees and managers collaborate on an assessment document submitted for review through a computerized system by the HR department. Together, they evaluate the goals and agree on their relevance or make necessary adjustments or removals. Scoring performance against each goal is not common practice. After one year, another meeting takes place to assess progress against agreed-upon goals.

Each goal receives a rating on a scale of five, with 3.5 representing average performance (meeting or slightly exceeding targets). If an employee receives a rating below 3.0 in any goal, the director must provide clarification and submit detailed information to the HR department explaining why this occurred.The HR department of ABC Bank will assess ratings below 3.0 to determine the need for further action. Additionally, reporting managers evaluate team directors using the performance management system. At higher levels of the company, the CEO reviews their management team's performance. Unlike a 360-degree performance management model where employees rate their managers, this method is not used at ABC Bank. The ASU team within the bank follows the same performance management system as the rest of the organization. Newly hired permanent employees must complete a six-month probationary period before participating in performance management. If there are more than three months until the next review period after probation ends, interim goals are set through a meeting between managers and employees. When employees transfer from different areas of ABC Bank to join the ASU team, their objectives align with the ASU model at the start of each year.Evaluations for employees are based on objectives from their previous roles.To minimize negative impact on employees relocating from other countries within ABC Bank and ensure smooth transitions into new positions, both HR and Trade Union sections have agreed upon this approach.Contract and temporary employees are exempt from participating in performance management to avoid taking time away from their assigned roles as it is considered inappropriate for them to do so

Recommendations for the Arrears Support Unit

After interviewing the director of

the Arrears Support Unit and conducting my own investigations, I have the following recommendations for managing this area:

Implement a Stress Management strategy or provide counseling

The ASU management should show concern about the levels of stress experienced by team members. While employees are encouraged to take breaks, it is important to offer additional support such as counseling. Despite having an Employee Aid Program, ABC Bank may face legal consequences if an employee decides to leave and sues due to inadequate support structures for emotionally challenging roles.

Management should focus on both positive and negative behaviors

It is crucial for management to pay attention not only to negative behaviors. The director's response regarding training received by new team members reveals a focus on monitoring and reviewing phone calls made by staff. It would be beneficial for managers to guide staff members on both what they did well and areas where improvement is necessary. Management should not only focus on correcting negative behavior but also acknowledge and encourage positive behavior exhibited by staff during phone interactions. The importance of providing positive feedback and motivation to employees in the ASU team cannot be underestimated.The team's lack of consideration for motivation is evident in their response to Question #40. Although the director believes employees are self-motivated, it is still important for them to feel motivated in their jobs. To address this issue, prioritizing regular one-to-one meetings and reinforcing positive behavior should be a focus for the director. One possible change could involve including a performance objective related to the number of team meetings and one-to-ones conducted with employees.

At ABC Bank, Performance Management typically involves directors providing orientation presentations

at the beginning of each performance period. However, this practice can make it difficult for new employees to understand their personal objectives and group goals, leading to decreased effectiveness in their roles. It is recommended that directors promptly provide performance orientation for new employees.

Temporary or contract employees at ABC Bank are not required to complete performance management but may have the opportunity to become permanent employees in the future. Providing performance objectives, whether formal or informal, can help align temporary employees with permanent ones. Contract employees may also receive performance objectives, though they may be less formal than those assigned to permanent or temporary employees.It is crucial for management to identify and retain key staff members within the organization as they contribute to team efficiency. Retaining reassigned employees who may be needed again in the future is also important. It is crucial to retain staff members who have completed their QFA examinations, as they are likely to be sought after by competitors. Although current squad leaders and directors are filled, there may be administration changes or reassignments in the future. Therefore, it becomes important to develop staff members with leadership potential so that they can step into these roles if they become available.

Management should provide opportunities for staff to gain experience in team leader and management positions, as this serves as motivation for those seeking new challenges in their careers. Furthermore, it is essential for the management of the ASU area at ABC Bank to understand the impact of Performance Related Pay and Gain Sharing on employees since these schemes may be reintroduced in the future. The ASU area differs from other areas regarding employee

categories, making budgeting and planning more challenging due to potential discrepancies in compensation.

It is important for team members to understand the objective and contribution of their area to ABC Bank's overall goal. Therefore, management should prioritize completing and communicating the mission statement promptly.In order to manage their area effectively without negative impact from other system changes, the ASU unit at ABC Bank should implement any necessary system changes. If needed, these issues should be escalated. Previously, the ASU measured staff performance based on the quantity of phone calls made. However, it has been suggested that focus should shift to the number of effective phone calls where employees interact with clients. Management needs to measure what truly matters rather than simply what they can currently track. If meaningful measurement requires new systems or changes, they should be implemented promptly so that staff can understand and improve in those areas.

To address their frequent need for temporary and contract staff, management should establish a strong relationship with recruiting advisers who can provide them with top applicants. This could involve designating certain recruitment agencies as "preferred suppliers," potentially leading to reduced fees and cost savings for ABC Bank.

ABC Bank is implementing a new method of sorting arrears cases based on applicants' ability and willingness to repay their debts. It is important to effectively communicate this change to staff so they understand and accept the new procedures. Staff members are responsible for explaining these procedures to clients; however, the department's management should offer clear career advancement opportunities.
Although team leader positions may currently be occupied, there is a possibility of future changes. Therefore, aspiring leaders should be provided with support and

facilitation. Kroll (2010) suggests that directors should consider implementing a Scientific Production Line Model. In Question #27, the director of the arrears subdivision mentions that call information is inputted without specific targets being set on a regular basis. However, staff performance is evaluated in comparison to their colleagues. According to Kroll's book "The Refractive Thinker," financial services companies should prioritize enhancing overall performance. By improving employee productivity, cash flow can be enhanced and employee morale and motivation can potentially increase while staff turnover reduces. Directors need to establish productivity goals at different intervals and implement consequences for failing to meet them. Maintaining close monitoring of employees is essential in order to achieve these objectives (Kroll, 2010). In conclusion, ABC Bank has implemented an extensive approach to Staffing, Compensation, and Performance Management across all its business units. The company has successfully integrated modern HR practices such as employee assistance programs which have proven beneficial for both the organization and its employees. ABC Bank consistently ranks among the "Top 100 places to work" survey results, indicating its positive work environment (Kroll, 2010). Nevertheless, the bank faces challenges for improvement as identified earlier in this study.
Working within the ASU unit can be very challenging for employees dealing with clients' emotional and financial issues. While it is not the bank's responsibility to provide assistance to clients in these difficulties, they should aim to avoid unnecessarily worsening them. As a commercial entity with shareholders, ABC Bank must prioritize profitability while fulfilling its duty to them. However, the bank should also consider its uniqueness compared to other banks by potentially allowing more time before resorting to legal action. New regulations imposed

by financial regulators are limiting ABC Bank's previous flexibility and making it increasingly difficult for the bank to differentiate itself from competitors when handling cases of late payments. Moreover, now under full nationalization, government decisions and viewpoints on future operations will significantly influence ABC Bank. The recent implementation of a new evaluation system for overdue payment cases, based on "Ability" and "Willingness" to repay loans, will undoubtedly bring additional challenges for employees and clients facing overdue payments. It is crucial to carefully implement this approach and ensure that employees fully understand how it works. We must not overlook the emotional and psychological impact that these difficult situations may have on employees and their families.It is crucial to prioritize the well-being of our employees, not only to avoid legal consequences resulting from mistreatment claims but also to address potential impacts on their personal lives caused by this work. I strongly believe that implementing the recommended measures mentioned above will effectively manage this strategic area for our organization while also valuing employee morale, motivation, and welfare. Terms: ASU (Arrears Support Unit) - a bank division dedicated to assisting customers with arrears; QFA (Qualified Financial Advisor) - an industry-wide qualification required by financial institution employees providing customer advice or sales services.