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Case Study Project

Beverly Aldridge
Kailey Chitmon
Melisa Garner
Tim Mounts
Frankie Tilley
The Most Convenient Bank (TMCB)
The Most Convenient Bank has proudly provided unparalleled
convenience and legendary customer service for more than 100 years.
TMCB is a diversified financial services company headquartered in
Make Believe, Arkansas with branches in Arkansas, Kansas, Oklahoma,
and Missouri. Beginning with Fantasy County's first automatic teller
machine (ATM) in 1976 and the launch of an Internet banking web site
in 1998, TMCB has been modernizing its services ever since.
The company operates in 16 locally managed markets, each with its
own president, management team, and board of
directorsinArkansas,Oklahoma,MissouriandKansas. The majority of
its 183 branches are open 12-hours a day during the week and many
locations are open on Saturdays.
TMCB is thelargest bank inArkansasand has the most banking
locations in the state ofOklahoma.
The Problem

A TMCB employee is accusing the company of denying him a


promotion as Lead Financial Analyst based on his ethnicity
and has filed a complaint with the Equal Employment
Opportunity Commission. This has created extreme duress for
employees, leadership within the company, and created quite
a buzz in the local community.
In order to effectively manage this situation, TMCB Board of
Directors released the following press release to its internal
and external stakeholders:
PRESSRELEASE

Date: February17, 2017


For Release: Immediately
Contact: John Smith, Director of Communications
(848) 999-8888

TheMostConvenientBankDiscriminationLawsuit
On February13, 2017, The Most Convenient Bank (TMCB) was accused of racial discrimination
byan employee. The employee claimsthat the Russellville, Arkansasbranch of TMCBfailed to
give himapromotion asLead Financial Analyst based on hisethnicity. He has filed acomplaint
with the Equal Employment OpportunityCommission.

TMCBRussellville did not promote the referenced employee due to alack of aBachelors
degree. The EEOChas filed alawsuit against the company, because aCaucasian man, also
without aBachelorsdegree, was hired for the position. The agencyseekscompensatory
damagesfor the employee and relief to prevent future racial discrimination in the company.

Jane Smith, President of the Board of Directorsfor TMCBstated TMCBis takingthe allegation
veryseriously. The employees of our bankingorganization are of the utmost importance.
Fairnessand equalityfor our employeeshas alwaysbeen atop priority. A full investigation will
be conducted and we askfor the publicspatience while we addressthese matters.
Communication Type
Disparate treatment: a way to prove illegal employment
discrimination. An employee who makes a disparate
treatment claim alleges that he or she was treated differently
than other employees who were similarly situated, and that
the difference was based on a protected characteristic.
The employee at TMCB claims that he was treated differently by not
being given the equal amount of opportunity to be considered for the
promotion.
Purpose of the Analysis
The purpose of this project is to discover how many
employees at TMCB believe that they are being or were
discriminated against when it came to being hired/promoted.
Racial discrimination in the banking industry can impact the
people being affected negatively. This could include
psychological and physical outcomes, as well as a decrease in
performance. Disgruntled employees due to racial
discrimination can create a problem in the industry by leaving
the business, causing a shortage of employees. Claims cases
can also be brought against the company, damaging its
reputation.
Problem Statement/Research
Question

The research question is, How many employees of The Most


Convenient Bank feel as if they have been discriminated
against?
Problem Statement/Research
Question
Racial discrimination is an issue for any business. It can impact a
persons ability to work, in turn harming the business. Discrimination is
an unethical practice and the company can be punished for such
actions.
This specific organization, TMCB, knows that it is important to find a
solution so that there will be an end to any racial discriminatory
practices.
If the issue is not solved or goes unaddressed, the Equal Employment
Opportunity Commission will take the case to court. TMCB would then,
most likely, have to settle the case for a sum of money. If no
progression is made towards ending racial discrimination in the
company, there could be more claims brought to the publics attention.
Research Methods
The subjects of the research will be employees of 130 of
TMCBs 183 branches. Subjects are encouraged to
participate, but are not required.
These subjects were selected due to the racial diversity of
their current employees. TMCB felt that the figures from this
survey with these participants would accurately represent the
company.
Surveys were sent to 1,520 employees.
Research Methods

Quantitative research was used to collect data, because the


figures are best represented in the form of percentages.
The sample size for this research is appropriate because
surveying 130 of the 183 branches is almost three-quarters of
the total amount of employees. This should represent the
entire company quite accurately.
Data Analysis & Findings

Surveys were sent to 1,520 employees, and there were 946


responses.
The data found was analyzed to discover what percentage of
the surveyed employees feel that they have been
discriminated against at TMCB. The findings show that
although not a large percentage, some employees have felt
the effects of discrimination.
Data Analysis and Findings
Discrimination at TMCB

Has felt discriminated against at TMCB

Has been denied a promotion due to racial discrimination at TMCB

Has never felt discriminated against at TMCB

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

African American Hispanic Caucasian Other


Action Plan
The solution is to implement a Zero Tolerance Policy regarding
racial discrimination for The Most Convenient National Bank.
Multiple language inclusion will be implemented as well to
represent the companys willingness to hire/promote people
that speak other languages. There will be a promotion matrix
based on merit that is developed as well. Promotions will be
given based on this matrix, to prove that there is no racial
discrimination when it comes to making the decision. All
employees will be required to review the Zero Tolerance Policy
upon hire, and then annually.
Personnel affected: Human Resources, Compliance Officer(s),
CEO, Leadership Team, and Board of Directors
Action Plan

Changes to Facilities/Equipment/Practice:
Signage in multiple languages
Job postings in multiple languages
Implement a Zero Tolerance Policy
Develop/implement Promotion Matrix based on merit
Require all employees to review Discrimination Policy/Training annually
Action Plan

Schedule of changes:
Step One: Implement a Zero Tolerance Policy
Step Two: Signage in multiple languages
Step Three: Job postings in multiple languages
Step Four: Develop/implement promotion matrix based on merit
Step Five (reoccurring): Require all employees to review Discrimination
Policy/Training annually
Action Plan
Feasibility: It is feasible for the company to comply with all
schedule changes by implement a Zero Tolerance Policy,
Signage in Multiple Languages, Job postings in Multiple
languages, Develop/Implement Promotion Matrix that is Based
on Merit, and require all employees to review Discrimination
policy/training annually.
It is feasible for the company to compensate attorneys fees,
court costs, and all employees for back pay, promotion, and
compensatory damages (emotional pain and suffering). The
needs are to base all decisions on accurate information due to
discrimination of employees.
Action Plan

Cost: Total cost to compensate all employees, attorneys fees,


court cost, and expert witness fees could be up to $2 million.
It will take 3 to 6 months to resolve the discrimination case.
Urgency: It will take 3 to 6 months to resolve the
discrimination case, and another 6 months to pay all
compensatory damages. In the meantime, the company has
agreed to comply with all schedule changes.
Action Plan

The Most Convenient Bank can eliminate racial discrimination


by implementing this action plan. Thus, the company would
increase productivity and employee morale by making these
changes.
References
Nunley, J. M., Pugh, A., Romero, N., & Seals, R. A. (2015). Racial
Discrimination in the Labor Market for Recent College Graduates:
Evidence from a Field Experiment.B.E. Journal Of Economic Analysis &
Policy,15(3), 1093-1125. doi:10.1515/bejeap-2014-0082
U.S. Equal Employment Opportunity Commission. (2015, Jukt).
American Experiences versus American Expectations. African-
Americans in the American Workforce.
USA.Gov. (2017). Race/Color Discrimination. Retrieved from Equal
Employment Opportunity Commission:
https://www.eeoc.gov/laws/types/race_color.cfm
Scion Dental Sued By EEOC for Race Discrimination. (2016, September
7). Retrieved from https://www.eeoc.gov/eeoc/newsroom/release/9-7-
16e.cfm
References

Buchanan, N., Settles, I., & Yap, S. Race Discrimination in the


Workplace. (December 2010). Retrieved from
https://msu.edu/~yapstevi/Stevie_C._Y._Yap_-
_Michigan_State_University/Preprints_and_Reprints_files/Settle
s%20Buchanan%20Yap_Racial%20Discrimination%20in
%20theWorkplace.pdf
DiJulio, B., Norton, M., Jackson, S., & Brodie, M. (2015,
November 24). Survey of Americans onRace. Retrieved from
http://kff.org/report-section/survey-of-americans-on-race-
section-1-racial-discrimination-bias-and-privilege/