Jack Nelson's Problem

As a new member of the Board of Directors for a local bank, JackNelson was being introduces to all the emplohees in the homeoffice. When he was introduced to Ruth Johnsons, he was curiousabout her work and asked her what her machine did. Johnsons repliedshe did not know what the machine was called or what it did. sheexplained that she had been working there for only two months. Shedid however know precisely how to operate the machine. According toher Supervisor, she was an excellent employee. At one of the branchoffices, the Supervisor in chare spoke to Nelson confidentially,telling him that 'something was wrong' but she didn't know what.For one thing, she explained, employee was too high and no soonerhad one employee been put on the job than another one resigned.With customers to see and loans to be made, she explained, she hadlittle time to work with the new employees as they came and went.All branch Supervisors hired their own employees withoutcommunication with the home office or other branches. When anopening developed, the Supervisor tried to find a suitable eimpoyeeto rep;ace the worker who had to quit. After touring the 22branches and finding similar problems in many of them, Nelsonwondered what the home office should do or what the action heshould take. The banking firm was generally regarded as a well-runinstitution that had grown from 27 to 191 employees during the pasteight years. The more he thought about the matter, the more puzzledNelson became. He coulen't quite put his finger on the problem, andhe didn't know whether to report his findings to the president.

Question 1: What are the issues in this bank?

Question 2: What can Mr Nelson do to resolve the problem?

Question 3: Should he report the matter to the President?