The business strategy for Mountain Bank to achieve a competitive advantage has two different paths. One of those paths would be to have a cost leadership strategy. Mountain Bank provides the same basic standardized products and services as do the other banks in the area. The problem with this type of strategy is that there is only one bank that can be the cost leader. The deregulations that allows for mergers and acquisitions within the banking industry would make it easier for larger banks to grow. Furthermore larger banks can be very efficient, and can lower the cost of services and their interest rates enough that a smaller bank ...view middle of the document...
Tellers who are productive at their jobs want more empowerment within the bank. They are the biggest asset of the bank. With their knowledge and front line contact, they help their bank customers every day. They have a high customer satisfaction and represent the bank very well. Already in place is a promotion for those tellers who excel in their role and are elevated to service positions. They do a lot of cross-selling by introducing other products to the already established customers with good credit.
Since the teller is a key to the success of Mountain Bank, human resource professionals need to make changes to their practices to increase the success of the bank. There should be more exchange during communication between tellers and the managers of the bank. This would give more responsibility to the teller because they have received more information from leadership. This would encourage tellers to make suggestions about current processes given that they have firsthand knowledge of improvements needed to be made to increase the success of the financial institution. Rotation of tasks will give the tellers a chance to experience other roles within the bank. Having additional responsibilities will maintain the interest of the employee by this exchange. Training would be available for those who wish to develop their skills and knowledge in other areas. Increased pay for tellers whose performance is above average is available for employees who wish to advance to a higher level within the bank.
Human Resource Strategies
All of these strategies can be broken down into their basic definitions to describe what each one of these represent. The internal/cost strategy is mainly interested in using efficiency to bring down the cost of processes within the work environment, so that the cost of providing the product or service to the customer is reduced. This is a cost leadership focus. The internal definition of the strategy describes the use of the employees within the business. They are to function by performing the tasks needed by lowering the cost of the products or services. The employer satisfies the needs of the employee and in return the employees are loyal to the organization.
Next would be the external/cost strategy. The cost strategy is the same as above. The industry is reducing cost of making the products or reducing the cost of the services. The external definition of the strategy is in hiring employees and not having to provide many benefits or create career paths for them. This includes providing employees with small hourly wages to compensate for the minimal tasks performed. The tasks are simple and training is not required in order to perform them. Turnover is frequent, and employees are typically searching for better employment elsewhere while...