Organizations and Economic Environment

Management Perspective Essays

Management Perspective Essays Management Perspective Essay Management Perspective Essay In order to obtain managements perspective on the issue, Denise Sampson, Operations Manager in the Des Moines office, was interviewed. Ms. Sampson stated that while CHE has not run into any Fair Lending / ECOA violations to date, the current incentive pay system is not ideal in keeping with the spirit of the rules, and compliance with these laws could hypothetically become an issue. Ms.Sampson also recognizes that borrowers seeking larger loans have the potential to receive superior service in relation to those who want smaller loans. While the current commission system pays more dollars to the TLC to encourage larger loans, the risk remains that smaller loans could be neglected in favor of the more lucrative loans. Citigroup claims that its employees have shared responsibilities to our clients, each other, and to the company. In keeping with that philosophy, CHE management realizes that the current compensation system for TLCs has room for improvement. Ms. Sampson stated that TLCs should have incentives to work equally hard on all applications. However, she believes that TLCs are already fairly paid for their efforts, and that a system that pays more is not required. CitiMortgage, a separate division from CHE, uses a system that pays per booked unit to the TLC. While this system has been considered for CHE, management is concerned that the 0.0515% budget for TLC commission could be exceeded regularly, and expected profits not met, if the average loan size were to fall below the financial models used in predicting success for the division. Ms. Sampson indicated that a replacement compensation system that uses a pay per booked unit and does not exceed the budgeted allotment would be optimal for the clients, employees, and the company. Additionally, the new system should be more transparent for the TLCs to estimate their end of the month commission check Employee Perspective When utilizing a commission-based pay structure (whether in whole or in addition to a base salary), individuals may be motivated to make additional sales calls, work harder to ensure sales are closed, and encourage customers to purchase additional products or services. The success of commission-based employment is conditional on individuals believing they have some control over the sale, the commission schedules are relatively stable, and incentive plans are not overly complex (Scholl). A commission-based system can have several problems that should also be considered. These include the potential to encourage employees to focus only on closing the sale to the detriment of customer service after the sale and the potential for high levels of variability due to conditions beyond the representatives control, such as business and economic cycles (Scholl). When developing the revised commission-based pay structure for TLCs, these considerations will be taken into account to ensure the program meets the needs of the organization, federal and state laws and the employee. The new system must achieve the goal of motivating and rewarding effective TLCs, while ensuring appropriate customer care. Industry Best Practices Des Moines is also the home base of Wells Fargo Financial and Wells Fargo Home Mortgage, subsidiaries of Wells Fargos Home and Consumer Finance division. Both companies specialize in real-estate secured lending and offer variable compensation programs for their sales professionals. According to John Crawford, Program Associate for Wells Fargo Financial, the Wells Fargo model is a hybrid that pays for both volume and booked dollar amount in a tiered structure. Once credit managers sell four real estate loans in a given month, they receive a kicker for additional loans and are compensated at a higher rate. In the end, credit managers are encouraged to book all loans (in alignment with fair lending practices) and also up-sell to higher loans (to benefit the companys bottom line). Conversely, CitiMortgages (as explained previously) compensation structure pays a set dollar amount for each loan closed and is not based on the size of the loan.

Summarise and critically review the RationalEmotive model of Essay

Summarise and critically review the RationalEmotive model of psychological therapy - Essay Example This therapy helps the patients to recognize the difference between the two negative emotions. The Rational-Emotive Behavioural Therapy was proposed by Albert Ellis in 1955. Albert Ellis belonged to the psychoanalysis branch of psychology, but after noticing that the traditional techniques of helping individuals resolve their negative emotions took too long he developed a significant approach in solving their problems. He named it REBT (Rational-Emotive Behavioural Therapy). This technique can be differentiated from the other psychoanalysis methods due to its unique philosophy that an individual has the power to change and influence their beliefs and philosophy in order to gain mastery over themselves. Using their own thoughts patients following the REBT can radically change their mental health and break loose of traumatic situations. (Mulhauser, 2008) REBT employs the ABC Framework. The "A" stands for the Activating event. The activation event includes the actual event and more importantly the individual's immediate interpretation of it. The same event may trigger different emotions in different people. Some people may react to a death in the family by accepting the event whereas others may retreat into a protective shell avoiding the truth. The "B" stands for Beliefs. The beliefs of an individual are moulded by his experiences and related to their capacity of comprehending the event. Whether one takes a Rational Approach to the event or an Irrational Approach to analyzing the event relies solely on the individual's own beliefs. The last stage recognized in the framework is the Consequences. In the last stage of the framework a person actually reaches an opinion. In this stage he builds either a Healthy Negative Emotion or an Unhealthy Negative Emotion. Keeping the framework in mind a summarized version of events leading to the Consequences is discussed. A negative event occurs (stage A). The person can either have a Rational Approach to analyse the event which would lead to a Healthy Negative Emotion which is not a cause for concern. On the other hand he may take an Irrational Approach to analyse the event which would lead to an Unhealthy Negative Emotion. The main therapeutic technique relies on helping the individual realize that everything, even his emotions and beliefs are under his control. (REBTN, 2006) THE THERAPEUTIC APPROACH TO REBT The basic technique applied by psychoanalysts using the REBT technique is the moulding of the client's absolutist philosophies. The main aim is to modify dysfunctional emotions and to help the client recognize the beliefs and attitudes which bring the unwanted states and to change them into positive emotions. The most unique element of this therapeutic technique is that therapy can still take place even after sessions have ended with psychiatrists as this approach helps individuals deal with themselves and accept themselves and their problems. (PsychNet) APPRAISALS OF REBT As mentioned earlier one of the positive aspect of REBT is that it is an effective way of helping out the client even after the sessions are over. Since it bestows the client with self belief he can not only handle the present problem but can face any future challenge as well. It provides an individual with the self control he requires to manage his everyday life and problems. Another reason stated by clients using REBT is that it