Rewarding Good Performance at a Bank

QUESTION 6

Read exercise task 14.1 (Rewarding Good Performance at a Bank), and explain your answer in detail.

            I find it strange and criminal that the bank does not reward their employees, particularly, their bank managers, in this case study.  Of course, it would be important first if the whole bank industry practices the same thing, because, if all banks do it, then it is the industry standard.  However, if through investigation, Jim finds out that the other banks do give commissions to their bank managers for business they bring in, then this raises a red flag to Jim, that he may be working for the wrong company, because no matter how much business he brings in to the company, he will never be amply rewarded for it, except with an increase to his current salary.  I feel that this reward does not amply give back to Jim the effort that he has put in to ensure that the bank branch that was instituted meets its yearly targets.  We all know that meeting the quota is never easy and that quota increases every year, so does the pressure to meet that quota.  I know, as time goes by, Jim will not be satisfied with what he is receiving and may either be demoralized, or decide to work for the competitor bank, especially if the competitor bank sees the great job he has done for First Trust Bank.

            I personally feel that First Trust Bank does not adequately offer sales incentives to its branch managers.  Considering the business Jim has brought to the bank, considering that their competitors were their ahead of them, and they were the ones who came later to the area, it just shows how much hard work Jim put in to ensure everyone in the area that they are the bank of choice.  Now, that the bank knows that they may have a problem with regard to their compensation rules, what they can do now is review it properly, to ensure that they meet industry standards, maybe even exceed it, and make sure that their branch managers are amply rewarded for their excellent performances.  They will not lose this way because the bank manager will only receive a commission if and when the bank manager meets the designated quota which the bank sets in the beginning of the year.  By offering a generous commission benefit for their branch managers, it will be a good way to motivate them to work hard to meet these quotas.