Overpaid Bank Tellers Case Study

The Overpaid Bank Tellers There are important factors from The Overpaid Bank Tellers that need to be mentioned prior to examining the dilemmas and possible solutions for Russell Duncan and State Bank. The first factor is that State Bank is one out of four banks located within a community with a population of 50,000 and it holds a high reputation with them. Secondly, State Bank has been acknowledged as the leading bank out of the four. Lastly, Russell Duncan “is known for establishing progressive personnel practices” (Jackson, Schuler, & Werner, 2012, p. 393). Holding the most progressive community reputation for a population of 50,000 is commendable. It is believed that the admiration for State Bank has a lot to do with President Duncan

Although State Bank basis their pay on their job performance, the bank tellers have no knowledge of the actual pay raise. Being that the Managers of State Bank have now gained knowledge of how much the bank tellers are being paid, this may result in conflict within the office. There may be discussion of how ethical it is to base the employees pay on their contribution and job performance within the

This will allow employees to ask questions regarding the pay situation. According to the Society for Human Resource Management (SHRM), (2009), “Because performance objectives are the ultimate means for determining an employee’s level of compensation, determining clear, relevant and measurable performance objectives is the cornerstone of an effective pay-for-performance system” (para 11). Failure to have strict guidelines in place can result in employees not having a complete understanding of what is expected from them. Duncan addressing the entire staff will help prevent the bank tellers and other staff from feeling as if they are not receiving the same information as the group of staff members being paid less. The employees would be able to discuss ways to keep employee productivity high while reducing the pay gap between them. A team that is able to work together to solve problems are more likely to be satisfied with the outcome than those not able to provide