Eurocap Bank (Part 2)

Organizational Behaviour

Case Study: EUROCAP Bank (Part 2)

Table of Contents

Alternatives 3

Decision Criteria 3

Alternatives 3

Recommendations....................................................................................................................5

Action Plan ..............................................................................................................................5

Reference 7

Annotated bibliography 7

Alternatives

Decision Criteria

1. Cost – the alternatives are within financial capacity of EUROCAP

2. Timeliness – the alternatives be implemented within a reasonable time frame before key employees start leaving.

3. Feasibility – the alternatives are realistic and be readily approved by management.

4. Organizational effectiveness – it should make hiring and retaining qualified employees easier for EEJ management

Alternatives

1. EEJ should persuade EUROCAP to provide it with more autonomy over decision making and also involve employees in goal setting and performance reviews.

Pros

• Increases EEJ’s capacity to hire and retain the right individuals for the unique Japanese market

• Empowerment of employees and encourage participation in decision making will result in higher motivation

• Transparent goal setting and bonus allocation methods will increase motivation and performance.

• Will be able to delegate more resources to two strategic growth areas (Autos and New Economy coverage)

Cons

• Time consuming and costly

• Resistance from some employees

2. EEJ management should design and implement a competitive and fair compensation system with stock option and a vesting period based on individual performance and tenure to retain key employees.

Pros

• EEJ can review individual performance and their importance to revenue stream

• Compensation will meet employee expectations resulting in improved team dynamics and organizational commitment and...