Bank of America Analysis

Bank of America

Bank of America’s organizational structure consists of several divisions. In a divisional organizational structure, the firm is split into several groups. Each group focuses on one particular aspect of the firm (Gillikin). Bank of America is comprised of four main departments: consumer, corporate, investment management, and international. The consumer division deals with consumer banking and credit cards. The corporate division works with commercial and corporate banking, while the investment management group manages stocks of individuals and institutions. The international section manages global banking and investing, with offices throughout Europe and Asia. Bank of America does not deal with organized labor. The Service Employees International Union (SEIU) has tried several times to organize Bank of America employees, but has not succeeded (Spruiell).

There are several ways that Bank of America motivates its employees. One such method is called “Pay for Performance”. This is a program where employees are rewarded with bonuses based on if they met their goals for the year. This system is used all the way through the pay scale, including the CEO. In this aspect, the workers are treated the same. In 2008 when Bank of America’s stock went down 66%, the CEO and senior executives received drastically reduced bonuses, or no bonus at all (Yousuf). In addition, they can be very accommodating to workers. They offer flextime, compressed work week, and even the opportunity to telecommute for some positions.

Aside from the “Pay for Performance” and flexible work schedule, Bank of America offers many traditional benefits to its employees. These include an optional 401k retirement plan as well as a pension plan, health insurance and prescription drug plans. Besides the typical benefits, Bank of America offers reimbursement for employees who adopt a child, short and long term disability, tuition reimbursement, and child care at some of their offices....