The functioning of a modern organization is a complex issue because of the need to consider multiple factors affecting its growth. Diversification in clients’ demands, globalization, digitalization, and the increase in the level of rivalry precondition the need to generate a competitive advantage that would help a particular unit to evolve and remain profitable. Under these conditions, a sufficient business strategy and approach to human management acquire the top priority as the central determinants of success. Employees are one of the main resources of any organization, and it is fundamental to organize their functioning appropriately. The Mountain Bank case will be analyzed with the primary goal of demonstrating the role of competitive strategies and HR tools and enhancing the vision of how these elements can be applied to various conditions and affect the future evolution of a particular business.
Mountain Bank has multiple rivals that affect its work and level of income. It has traditionally had a strong presence in the retail baking line, while other lines, such as real estate or corporate clients, remained almost unaffected. It provided competitors with an opportunity to work in these spheres and attract clients. Under these conditions, Mountain Bank can use a differentiation business strategy to increase its presence in other lines that might guarantee stable and high income. Organizations adhering to this method try to provide goods and services better than those offered by other companies (Stewart & Brown, 2019). It helps to create exceptional proposals which will be attractive to the target audience and ensure their high loyalty levels (Rothaermel, 2018). The utilization of a differentiation strategy will help to compete with banks working in other, more profitable lines and acquire new clients vital for the rise of the company (Rothaermel, 2018). However, utilization of this strategy demands skilled and effective employees who can contribute to the improved outcomes. Under these conditions, Mountain Bank’s human resource management becomes central for the case.
At the moment, the typical organization’s approach presupposes reliance on bank tellers. Every department has three to seven tellers, with some part-timers who can be used to increase staff during complex periods (Stewart & Brown, 2019). The position is viewed as low-paying and entry-level, meaning that these specialists are not valued, and their contribution to the company’s growth is low (Stewart & Brown, 2019). The turnover rate is also high, while successful tellers are promoted (Stewart & Brown, 2019). The given approach can be viewed as an ineffective one as it prevents the Bank from further growth. Tellers are capable of attracting new clients and creating new offerings, which is vital for the future and following expansion in terms of the differentiation strategy. Moreover, the Bank’s attitude can decrease motivation and engagement, which are important for final success. It means that the given approach to HR management should be altered.
Reconsideration of the approach to working with specialists can be started by applying specific human resource practices. They are needed to motivate workers, encourage them, and attain higher engagement levels vital for better performance and accomplishing existing goals. Bank tellers and other specialists should understand that they are appreciated by the company and can help it to evolve and build a successful career. For this reason, rewarding, training, communication, and empowerment can be viewed as four main practices that can be recommended to Mountain Bank. First, rewarding for finding new clients will motivate tellers to work harder (Stewart & Brown, 2019). Second, additional training will provide specialists with new ways and strategies to work with clients and ensure their loyalty (Valentine et al., 2019). Third, by communicating with all employees, it is possible to create a friendly atmosphere, improve teamwork, and demonstrate that their effort is appreciated (Valentine et al., 2019). Finally, empowerment practices will help tellers to become more independent and make solutions vital for the Bank. Using these methods, it is possible to enhance the current HR management in the company.
Finally, the change should be supported by using a committed expert HR strategy. This approach presupposes combining long-term employees with a focus on creating unique offerings attractive to clients (Stewart & Brown, 2019). Regarding the decision to shift towards the differentiation strategy, the given method becomes the best possible option. Tellers will have the freedom to innovate and improve methods of cooperating with potential clients (Valentine et al., 2019). Moreover, supported by rewards, training, and encouragement practices, they will avoid traditional limits and become a fundamental part of the company needed to enter new spheres and attract clients.
Altogether, Mountain Bank should change its HR and business strategies to attain success. First, a differentiation strategy should be employed to create new offerings and struggle with competitors. Second, by using new HR practices, such as rewarding, training, communication, and empowerment, the organization will be able to make its employees more effective and create value through human resources. At the same time, the committed expert strategy will contribute to the increased level of performance among workers, their better cooperation with clients, creativity, and freedom. By combining these methods, the Bank can remain profitable and acquire additional income.
References
Rothaermel, F. (2018). Strategic management: Concepts (4th ed.). McGraw-Hill Higher Education.
Stewart, G., & Brown, K. (2019). Human resource management (4th ed.). Wiley.
Valentine, S., Meglich, P., Mathis, R., & Jackson, J. (2019). Human resource management (16th ed.). Cengage Learning.