I.

Problem

The company, Peso Bank, experienced an organizational problem due to the ineffective
management that its top managers have. The management is still in the process of formulating
credit policies, personnel policies, and control policies.

The salary structure, the staff positions, and the decision making of the top management
were unorganized.

II. SWOT Analysis

A. Strengths

1. Young managers have an experience and a proven track record.

The top management is confident that these young managers can handle
managing their business because of their experience and because they have proven track
record.

These young managers will be one of the strengths of the company because they
may contribute useful thoughts that can surely help Peso Bank for it to have an effective
management.

2. The business has a large amount of capital.

Mr. Alberto doubled the capital of the company through infusing funds in 1994.
This can be a strength because a bank with a large amount of capital has a chance to
gain more clients.

B. Weaknesses

1. Insufficient personnel.

There are even departments with a head but with no staff. The System and Method
Head has no staff like a manager managing a non-existing staff.

Having insufficient personnel makes a company weak. Peso Bank will have a slow
productivity.
 2. Wages were unstructured.

A manager may be receiving as low as thirteen thousand (P13000) a month, while

his cashier (a subordinate) may be receiving as much as twenty thousand (P20000).

This unstructured wages were considered one of the weaknesses because it will
unfair to the managers. Compared to those who are in lower ranks than them, the salary
given to the managers were still low.

At the time that these managers will notice this poor recompense, they will argue
about it, or worse, they might consider leaving the company.

3. The management of Peso Bank is chaotic.

The salary structure, the staff positions, and the decision making of the top
management were unorganized. The top management is so confident with its decisions
that it is sometimes irrational. The top management even transferred a very young person
to head one of its branches.

Poor management is a weakness to Peso Bank because a company without good

way of management ends up bad. A company with a poor management will surely fall into
worse scenarios as time passes by.

C. Opportunities

1. John is currently studying at one of the best MBA programs in the country.

Suppose John will end his studying at his course, Master of Business
Administration, he may be an opportunity if he will be recruited by Peso Bank.

John may be an opportunity because he could change the way the management
of the company because he will come from the top schools with a MBA program in the
Philippines.

His knowledge, after graduating from such best MBA programs, will surely be of
great help and contribution to Peso Bank.

2. There are 21 bank branches that Peso Bank currently operates.

For a bank, having many branches is like having many clients. This will lead to
higher assets.

These 21 branches are an opportunity for Peso Bank because they will reach more
places and they will have more clients who are surely wanting to ask for a bank’s help.
 D. Threats

1. They plan to build nine more branches.

The building of nine more branches will be a threat to the company because the
current management is still in chaos and policies are not yet made and finalized.

These nine other branches will eventually be another problem to be handled by

the company.

2. Peso Bank’s competitors will increase as time passes by.

The threat of new entrants in the industry of bank management is so high. Time
will make more competitors risk in managing a bank.

The new entrants are considered threats because they will either get Peso Bank’s
clients or they will have more fame than Peso Bank.

III. ALTERNATIVE COURSES OF ACTION

1. The company should hire John.

Advantage: He has a lot of skills that he can offer and can share a lot of new ideas
since he is studying in a MBA program. He can contribute fresh ideas and can
analyze more critically. John can also strengthened the management of the
company that will help them to achieve their ultimate goal.

Disadvantage: He may request a higher salary since he took up a higher degree

than the other employees.

2. The salary and benefits of the employees must depend on their position.

Advantage: The managers will feel equality as the bank gives a position-based
salary. There will be no complaints and commotions inside the company.
Camaraderie and solitude will also be promoted.

Disadvantage: Everyone will be struggled by how things are happening. There

will be disdain and might cause the leave of other workers.
 3. Start organizing and placing employees to their proper jobs. Distribute the
employee so that all of the departments are filled with staffs.

Advantage: Organizing and placing employees to jobs suitable for them will make
them be clarified of their roles and responsibilities in the organization. By doing so,
everyone will surely know what else they are supposed to do.

Disadvantage: There will be both lack of accountability and poor implementation.

Also, to assign every worker to new jobs will be consume most of the company’s
time.

4. The management should make concrete policies and guidelines that the
employees should follow.

Advantage: There will be an order in the company. The promotion of the

employees will be based on their experience, skills, and performance not because
they have to fill in the position of the other employee. Also, the punishments of the
employees will have a basis rather than a direct expulsion from the company. The
employees will have fixed benefits.

Disadvantage: The employees will feel foreign of the new implementation inside
the bank. These concrete policies and guidelines will start chaotic.

5. Sell the other nine bank branches. Let there be 3 bank branches each in
Bulacan, Rizal, Cavite, and Batangas.

Advantage: By selling nine from the 21 branches, the equity and assets of Peso
Bank will increase. Also, Peso Bank will not be having a hard time managing the
other banks.
Disadvantage: By selling nine from the 21 branches, Peso Bank will decrease its
customers. Low number of customers will greatly affect Peso Bank’s fame.

IV. RECOMMENDATIONS
Peso Bank should start making concrete policies and guidelines. This will create a balance
circulation of work and a clear-cut direction to keep with the fast-moving pace of time and the
industry of bank management.
There will be an order in the company. Also, the punishments of the employees will have
a basis rather than a direct expulsion from the company. Lastly, the employees will have fixed
benefits from the company.
After making the decision, Peso Bank will be free to recruit more workers. Doing so will
make Peso s Bank’s working capacity more effective.