Chase Manhattan Bank

Statement of the Problem:

The workload in many areas of bank operations has the

characteristic of being unevenly distributed throughout the day. For

example, at Chase Manhattan Bank in New York, the number of

domestic money transfer request received from costumers, if plotted

against the time of the day, would appear according to the workload

described in Figure 1 below. For efficient use of resources the

personnel available should therefore vary accordingly.

Money transfer Request

25

20

15

10 Money transfer
Request
5

0
 A variable capacity can be achieved effectively by employing

part time personnel in conjunction with full time personnel. Because

part timers are not entitled to the fringe benefits, they are often

more economical than full time employees. Other considerations

such as consistency and quality control however may limit the extent

to which part time people can be hired in a given department. The

problem is to find an optimum workforce schedule that will meet

personnel requirements at any given time and also be economical.

Time Period # of Personnel Needed

9-10 A.M. 14
10-11 A.M. 25
11-12 NN 26
12-1 P.M. 38
1-2 P.M. 55
2-3 P.M. 60
3-4 P.M. 51
4-5 P.M. 29
5-6 P.M. 14
6-7 P.M. 9
Table 1: Work force Requirements
Problems are as follows:

- Lack of the workforce to cope up with the demand

- Personnel cost

- Uneven workloads

Objective:

- To achieve the minimum possible personnel cost subject to

meeting or exceeding the hourly workforce requirements as

well as the constraint on the workers.

Relevant Case Fact Analysis:

- Strength -- The Manhattan bank is an established and in

demand bank in New York City that attracts a lot of regular

customers and in fact required 60 personnel in peak hours.

 - Weakness – They lack the manpower and needs to resort on

hiring part-time employees which add to the expenses of the

company.

- Opportunity – They have the opportunity to lessen their

current expenditures on part-time by maximizing the

capabilities of their regular employees.

- Threat – Terminating their part-time workers would mean

more work for their regular employees and may lower their

performance due to fatigue.

Alternative Course of Action:

The Chase Manhattan Bank has plenty of regular

employees that receives benefits that comes with it, however

the bank still needs to hire additional part-time employees to

suffice the need in their manpower specially during peak hours

where there are numerous costumers and more work is need

to be done.
 They can hire capable and qualified part-time worker to

fill the need of worker in certain time of the day.

Conclusion:

The main problem of the Chase Manhattan Bank is the lack of

employees which could cost them financially. However, they can

maximize their regular employees through overtime which cost less

than hiring part-time employees. On the other hand hiring part time

employees would easily solve the lack of manpower and would also

ease the burden of the regular workers but is more costly on the side

of the employer.

Recommendation:

The Chase Manhattan Bank needs to hire part-time employees

to catch-up with the growing demand in the banking market. Hiring

more part-time workers is more costly than having their regular

employees do overtime. Overtime of regular employees would cause

their employees to stay more time working and lesser time for their

families. Furthermore, constant overtime may cause stress to the

employees and might cause fatigue. Moreover, stressed employees

have been long proven to perform lesser than those happy

employees.

We strongly recommend the hiring of part-time workers than

forcing the regular employees to do overtime because in every

company the welfare of the employees should come first. You need

to love your employees for them to perform on their best. Pressuring

employees to do constant overtime would only lessen their

productivity which directly oppose the reason of overtime which is to

perform more.
Prepared by:
Leif Kenneth Presbitero
Hezel H. Fabe
Nathalie Jeane L. Badajos
Lerie A. Danuco
Judith A. Frias
Cyrus Ian A. Lanurias
Cecile D. Abubo