FirstFederal - Name Case First Federal Savings Case Problem...

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Name Case First Federal Savings ·Case Problem Analysis Grading Scale = (Max. points)/Target points Total Score = 84 Relevant Facts, Background Expand/Clarify Ok/Good Job Excellent (10)/6 )Q Case Specific: ~\ MBO program. ~Ov~ Bonus paid based on targets. Economic downturn. Problem Definition/lssues Expand/Clarify Ok/Good Job Excellent (15)/9 \) Case Specific: Decision on bonus payment: 1<J~ f'> payout = negative for future? ~\, :. no payout = negative morale? General Criteria: Should be in terms of Focus Theory(ies). Relevant Theories Expand/Clarify Ok/Good Job Excellent (25)/20 ?-D Case Specific: W1I~b Needs Theory Two Factor Theory Reinforcement Theory (l0lO~~ea£-) Expectancy Theory .'. " Equity Theory Goal-setting Theory. General Criteria: ~Theories must be relevant as well as ._ ratea;analyzea uSing case facts:-- J-'\.lternatives Expand/Clarify Ok/Good Job Excellent I (25)/20 2>/ Criteria: # of Alternatives '1fdfb Based on theory/viability Pros Analyzed Cons Analyzed Solution/Plan of Action Expand/Clarify Ok/Good Job Excellent (25)/20 '?O ~\6I(\"-VJ\ ~~ Criteria: Justified by Theory ~e Pros Analyzed Cons Analyzed 1stfed
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Background and Relevant Facts First Federal Savings and Loan Association of Phoenix, chartered in 1934, grew steadily over the subsequent years and decades through the intelligent acquisition of another bank followed by even more intelligent decisions regarding branch openings. Through the strategic placement of branches in areas of anticipated economic growth, combined with the competitive offering of convenient services to local residents, the company had grown by 1973 to become one of the twenty-five largest savings and loan institutions in the United States. Such a growth rate put the company in the position of needing to integrate and to focus its operations so as to become even more competitive and thus to continue its impressive success at market penetration. To achieve that end, top management at First Federal opted in 1968 to institute a bonus :/ plan using the popular and effective management by objectives (MBO) process. A Harvard Business School report on the company by Stephen Doyle states: "In the eyes of top management, superior employee performance would be the key to accelerated corporate growth and profits. [...] The cost of the incentive plan was considered to be self-liquidating, because the bonus pool came from funds that were generated above and beyond the expected profit levels." Company president Gene Rice elaborates: "The MBO system was instituted as a planning tool for the future and the changes it would bring." This system includes measurable goals both financial
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This note was uploaded on 02/25/2010 for the course MAN 5245 taught by Professor Tosi during the Fall '07 term at University of Florida.

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FirstFederal - Name Case First Federal Savings Case Problem...

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