Case Analysis:CBA Rural Bank is a rural bank serving the entire Zamboanga Peninsula and just like anybusiness organization it has been significantly affected by the pandemic. It has 13 branches allover ZP and a total of 170 employees as of the latest manpower headcount. Below is itshypothetical manpower data and labor productivity related costs:What could be the probable effect to HR related costs if the decreasing trend of its CBA Rural Bank's income continues to decrease? What could be the reason for this decreasing trend? If the HR Department is told by the top management to reduce further its manpower to 25% of its latest headcount, how do you think HR should handle this? What strategies should be proposed? ManpowerHeadcount for CBA Rural Bank20203rd Quarter202120191st Quarter2nd Quarter4th Quarter1st QuarterRegularProbationaryResignationsTotal150185200212195175301512121675168199207212190170CBA HR Department's Labor Related20202021Costs20191st Quarter2nd Quarter3rd Quarter4th Quarter1st QuarterSalaries Expense-RegularSalaries Expense- ProbationaryTotal Salaries ExpenseTraining ExpenseFood and Clothing AllowanceTransportation AllowanceCommunication Allowance22,425,000.00 27,657,500.00 29,900,000.00 31,694,000.00 29,152,500.00 26,162,500.00223,200.0024,657,000.00 27,936,500.00 30,123,200.00 31,805,600.00 29,189,700.00 26,162,500.00120,000.002,232,000.00279,000.00111,600.0037,200.00300,000.001,205,000.003,000,000.00900,000.0030,000.001,060,000.0025,000.0085,000.00875,000.00925,000.001,000,000.00975,000.0092,500.00120,000.00180,000.00116,257.81150,000.001,860,125.00150,875,632.00 37,718,908.00 20,578,412.03 14,254,125.47 15,421,578.36 15,478,012.25105,612,942.40 26,403,235.60 14,404,888.42 10,690,594.10 11,566,183.77 11,608,509.196,173,523.61175,000.00465,031.25198,000.0029,064.45TOTAL LABOR COST29,762,000.007,440,500.00Gross Banks Consolidated IncomeTotal Banks Charges to Gross IncomeNet Banks Consolidated Income45,262,689.60 11,315,672.403,563,531.373,855,394.593,869,503.06

Based on the above data we need to analyze the decision made by the human resource department of CBA…

Answered: BA Rural Bank is a rural bank serving…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.3E

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Case Analysis:
CBA Rural Bank is a rural bank serving the entire Zamboanga Peninsula and just like any
business organization it has been significantly affected by the pandemic. It has 13 branches all
over ZP and a total of 170 employees as of the latest manpower headcount. Below is its
hypothetical manpower data and labor productivity related costs:

What could be the probable effect to HR related costs if the decreasing trend of its CBA Rural Bank's income continues to decrease? What could be the reason for this decreasing trend? If the HR Department is told by the top management to reduce further its manpower to 25% of its latest headcount, how do you think HR should handle this? What strategies should be proposed?

ManpowerHeadcount for CBA Rural Bank
2020
3rd Quarter
2021
2019
1st Quarter
2nd Quarter
4th Quarter
1st Quarter
Regular
Probationary
Resignations
Total
150
185
200
212
195
175
30
15
12
12
1
6
7
5
168
199
207
212
190
170
CBA HR Department's Labor Related
2020
2021
Costs
2019
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
1st Quarter
Salaries Expense-Regular
Salaries Expense- Probationary
Total Salaries Expense
Training Expense
Food and Clothing Allowance
Transportation Allowance
Communication Allowance
22,425,000.00 27,657,500.00 29,900,000.00 31,694,000.00 29,152,500.00 26,162,500.00
223,200.00
24,657,000.00 27,936,500.00 30,123,200.00 31,805,600.00 29,189,700.00 26,162,500.00
120,000.00
2,232,000.00
279,000.00
111,600.00
37,200.00
300,000.00
1,205,000.00
3,000,000.00
900,000.00
30,000.00
1,060,000.00
25,000.00
85,000.00
875,000.00
925,000.00
1,000,000.00
975,000.00
92,500.00
120,000.00
180,000.00
116,257.81
150,000.00
1,860,125.00
150,875,632.00 37,718,908.00 20,578,412.03 14,254,125.47 15,421,578.36 15,478,012.25
105,612,942.40 26,403,235.60 14,404,888.42 10,690,594.10 11,566,183.77 11,608,509.19
6,173,523.61
175,000.00
465,031.25
198,000.00
29,064.45
TOTAL LABOR COST
29,762,000.00
7,440,500.00
Gross Banks Consolidated Income
Total Banks Charges to Gross Income
Net Banks Consolidated Income
45,262,689.60 11,315,672.40
3,563,531.37
3,855,394.59
3,869,503.06

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