SECTION 1
QUESTION 1- CASE STUDY {15 MARKS)
CASE-THE OLD FAMILY BANK
The Old Family Bank is a large bank in Cape Town's Northern Suburbs. As part of a
comprehensive internal management study, Mr Henry Day, vice president of management
information systems, examined the turnover, absenteeism and productivity figures of all of
the bank's work groups. The results Mr Day obtained offered no real surprise except in the
case of check- sorting and computer services department.
THE STUDY
The study revealed that, in general, the departments displaying high turnover and
absenteeism rates had low production figures and those with low turnover and absenteeism
were highly productive. When the check - sorting and computer services figures were
analysed, Day discovered that the two departments were ·tied for the l'7ad fo_rthe lowest
turnover and absenteeism figures. What was surprising was that the check -sorting
department ranked first as the most productive unit, whereas the computer service
department ranked last. The inconsistency was further complicated by the fact that the
working conditions for the check- sorting employees were very undesirable. They worked in
a large room that was hot in summer and cold in winter. They worked alone and operated
high- speed, check sorting machines requiring a high degree of accuracy and concentration.
There was little chance for interaction because they took rotating coffee breaks.
The computer services room was air-conditioned, with a stable temperature year around, it
had perfect lighting and was quiet and comfortable. Both groups were known to be highly
cohesive, and the workers in each department functioned well with one another. This
observation was reinforced by the study's finding of the low levels of turnover and
absenteeism.
THE INTERVIEWDATA
In order to understand this phenomenon, Day decided to interview the members of both
departments in order to gain some insight into the dynamics of each group's behaviour. Day
discovered that the check-sorting department displayed a great deal of loyalty to the
company. Most of the group members were unskilled or semi-skilled workers; although they
had no organised union, they all felt that the bank had made special efforts to keep their
wages benefits in line with unionised operations. They knew that their work required team
effort and were committed to high performance. A quite different situation existed in the
computer services department. Although the workers liked their fellow employees, there was
a uniform feeling among the this highly skilled group that management put more emphasis
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