Atlanta home loan
1) Identify the controls that Al Fiorini implemented to manage his business both before and after he went back to school.
2) Did Al use the wrong types of controls? Or did he use the right types but fail to implement them properly?
Case Study: Atlanta Home Loan
Case Study: Atlanta Home Loan
Synopsis of the Situation:
Atlanta Home Loan was a mortgage lending and financing company based in Atlanta, Georgia. The company’s founder, Al Fiorini, had many years experience in the mortgage market, and he oversaw eight loan officers and four telemarketers. It was a profitable business with growth potential, so Al decided to find someone to run the business while he went to school to earn his MBA. His first attempts at
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Behavioral constraints make it much more difficult for employees to do unwanted things. Specifically, if Al had implemented better administrative constraints, Wilbur would have been limited in his ability to wrest control of the company from Al. There should be a code of conduct in place to help employees understand what behaviors are expected even in the absence of a specific rule or principles. The statement in the code of conduct should include important messages about employee conduct, confidential information, integrity of the records, Administration of the code. The codes act as a guidance on specific issues.
3. Train the partners. If Al had taken the time to train his partners, they likely would have been able to do a good job. Training can provide useful information about what actions or results are expected and how the assigned tasks can best be performed. It can also have positive motivational effects because employees can be given a greater sense of professionalism, and they are more often interested in performing well in jobs they understand.
4. Providing group rewards based on collective achievement also encourages cultural control. Reward plans based on collective achievement come in various forms. Good examples are bonuses, profit sharing, and other compensation that is based on entity performance. These returns help keep employees motivated, which helps foster improved performance. Al should also ensure that employees
Group Incentive Plan: It is set in place to promote helpful, combined behavior among employees. Through this company a group incentive plan assists in nurturing relationships among their staff member, inspiring them to discover ways to collaborate in a shared environment in order to be successful. The method is able to create a stronger team, brainstorming and building a entrusted sense of project ownership for everyone.
We as business owners, management and or in a role of authority must set, address and comply with a solid foundation of ethics. “A code of conduct is the single most important element of your ethics and compliance program. It sets the tone and direction for the entire function. Often, the code is a standalone document, ideally only a few pages in length. It introduces the concept of ethics and compliance and provides an overview of what you mean when you talk about ethical business conduct.”
Are you looking to obtain a home loan? If you have been researching various lenders, yet find you aren't comfortable with what they are offering, it may not be the products that are an issue for you. Some individuals feel uncomfortable working with a company they feel doesn't share their values and wish to work with a Christian lender. Those in this situation often turn to Mike Rakeman and Brian Schiele of Fellowship Home Loans, two individuals who keep their core values in mind when working with clients.
Managers are to make all employees aware of the opportunities for profit sharing based on the achievement of goals. Verbal and monetary recognition will be used to reinforce good behavior, to motivate employees, which will increase their performance leading to additional recognition and job satisfaction.
code of conduct can then be passed on to the employees with expectations for participation and
Reward, whether it is financial (in terms of a monetary bonus) or simply praise and the recognition of success, will positively impact levels of motivation within a team. For example, a sales team working towards a target, that if achieved will mean a financial bonus will be more motivated than a team without this incentive, especially if a high percentage of that team have money as a primary motivating factor. The effect of praise and recognition on staff will be a team that feels valued and appreciated by its organisation. This will help promote harmony and make for a stronger, healthier and a more motivated team. A team that is not praised and recognised will soon start to feel that their hard work is not appreciated.
The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.
- Reward and recognition would be an excellent way to drive culture and performance at these meetings.
While dealing with the bank’s objectives, an efficient and proper code of conduct is expected from the workers and the directors.
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
Evaluate how different performance and reward strategies might be appropriate for different groups of the organisations.
Recognizing employees for accomplishments such as finishing a major project, reaching sales targets or providing excellent customer service can be an important motivating factor. Set goals for workers to strive for and offer rewards for reaching them. This could be in the form of an employee of the month scheme, a bonus, or a promotion. Some companies conduct meetings where employees are recognised for good work in front of their colleagues. This can help motivate all the workers in the business to strive for success.
a. Did Altex need a new system? (What are the most critical problems facing Altex at the takeover? what does Ted see as the purpose of a control system? Did Altex meet their objectives?)
A code of conduct and a statement of formal statements describe and explain what an organization expects from its employees and a code of ethics generally consists of statements that serve as principles and basis for rules of conduct. Leaders and managers must be role models for organizational success. If employees see leaders and management demonstrating the organizational values then it adds to the commitment and credibility of leadership and reinforces the importance of the organization’s values which leads to employees who are more engaged and committed to the organization. Also turnover among employees tends to be lower and productivity tends to be high. On the other hand, if leadership demonstrates behavior that is inconsistent with the code of conduct then a negative message is sent to the employees. Therefore, employees may disengage and compromise company standards as seen in the
Codes of conduct are policies including rules such as maintaining honesty, attitude, and respect (Traveler, 2009) for co-workers, the organization and customers. Only by separation of personal ethical choices in the work place, will an organization succeed and flourish. It is never appropriate for any employee, management or otherwise, to conduct business for personal gain. The people who become harmed lose trust, confidence, and the expectation of themselves and of the people who chose to put their personal ethical choice before the needs of the customer and business.