Introduction
Chase Bank is a banking subsidiary of JP Morgan Chase Bank that provides consumer and commercial banking services to the citizens of the US. JP Morgan alternatively serves multinational clients around the world. In the past, Chase Bank was known as Chase Manhattan Bank before merging with JP Morgan & Co. in the beginning of the new millennium. The bank over the course of its life cycle has merged with numerous organizations including the Bank of Manhattan Company in 1955 and Bank One Corporation in 2008. Chase bank provides over 5000 branches and 16,000 ATMs across the nation all available for its clients to access. As a result, it is one of the biggest four banks in the United States. The following paper will take a closer look at its operations towards achieving success in the banking industry in the US.
Business management and strategy
In every organization, the most important factor of ensuring success is creating a strategy which serves as a guideline in the progress of the company. This is one of the ideals that JP Morgan Chase has incorporated towards serving its consumers better and compelling more to join them in banking. The organization declares its mission as creating engaged and lifelong relationships with all of its clients. In this case, the organization has to consider the needs and financial capability of their clients before making drastic changes. Chase bank serves nearly half of the households in the United States where these clients are able to receive the highest form of quality service (Chase Bank, 2016). The bank offers its customers a wide range of financial services including saving money, buying a home and other assets like cars. The organization is aware that these are the most important banking practices to the American society and hence provides its members with the ability to plan in making savings, purchasing a home and being able to buy the right car that suits the needs of the client. In improving the relationship between the organization and the client, Chase Bank offers its clients with tips on how parents can help their teens buy their first car (Chase Bank, 2016).
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In addition to this, the organization has been able to identify the value of experience in banking that can enable the individual to feel satisfied with the service offered. This is where the organization has provided its customers with personal banking that enables individuals to access their accounts online through their computers or smart phones. The bank has its own app that has been built to enable clients with the ease of access to their finances. Security is another important factor in the business management and strategy of the organization. Hereby, JP Morgan Chase works tirelessly to ensure the client remains protected from fraudulent schemes of stealing information and finances (Chase Bank, 2016). This way the company encrypts account information of the individual as a means of protecting users accessing their accounts online. Another means of improving organization and customer relationship is through communication. This is where the organization provides its customers with a listening ear to all problems or issues that they may have with the banking. Hereby, the client may request for clarification on issues like privacy, security and protection, identity theft and fraud which serve as the most common issues that Chase customers would ask. In this way, the organization is always available to assist their clients in the best way they can.
Workforce planning and employment
The member staff of an organization can either propel it to its success or ensure its failure in the near future. Chase Bank has ensured that the most appropriate workforce is on hand to provide the consumer with the highest quality of service. This is evident where the organization has established a code of conduct and ethics for its finance professionals to undertake while working on behalf of the bank. The integrity and reputation of the organization is directly influenced by the ability of the organization to follow these rules and policies (Dimon, 2016). Though at times it may not be easy, it ensures that the reputation of the organization remains intact. This has been one of the major factors that have seen the bank being able to exist for more than 200 years. Hereby, the workforce is usually dedicated to serving the best interests of the organization through upholding their integrity in all of their activities (Dimon, 2016). Even when the organization could benefit from particular transactions that are illegal, the workers are entrusted to turn a blind eye and work towards achieving legal financial benefits. This will ensure the organization avoids any controversial issues such as lawsuits from clients or the government for unlawful practices.
The organization has been involved in lawful workforce planning and employment practices since its earliest existence. Since the financial depression of 2008, numerous Americans have suffered as many lost their jobs while others got demoted. The organization has sought to increase the number of jobs for the Americans. Through its parent company, the organization will increase 1,800 jobs in Delaware by 2019 (Goss, 2015). This will be a major boost for individuals who have skills in technology and financial operations. This will be the highest hiring that the First State will experience by a single company. In light of this, Chase Bank itself has undertake the project of helping US military veterans to lead a successful life after offering their service to their country by providing them with employment. The organization launched the 100,000 Jobs Mission in 2011 as a means of providing 100,000 jobs to veterans and their spouses by the year 2020. However, an assessment conducted in June 2015 revealed that the organization had recruited 267, 522veterans (Chase Bank, 2016). This is by far the highest recruitment of military veterans by a single organization. The organization has now set a new commitment to hire up to 300,000 more US military veterans.
Human resource development
The human resource within Chase Bank is the most important aspect of the organization and as such the organization is committed to developing, implementing and evaluating programs that will lead to employee development. Every organization recognizes the need to identify talet within its various operations and empower that specific person or people towards greater capabilities and success through training and mentorship programs. The same applies for Chase Bank that seeks to recognize the numerous generations present in the workforce and the realization that the Millennials or Generation Y are taking over the workplace. Therefore, it is important that the organization transforms to incorporate this new generation and ensure their talent and performance in the organization is not overlooked (Noe, Gerhart, Hollenbeck, & Wright, 2015). Chase has identified five strategic domains that enable the management of talent within the organization. These include talent acquisition, performance, compensation, succession and learning management all of which will help in steering the organization towards achieving their desired results. The current senior positions in the organization have been taken up by the Baby Boomers generation and thus a major gap is presented in the organization. As many of them retire, the knowledge, experience and leadership that they had built up will leave with them.
As a result, Chase has recognized the need to modify the organizational structure and initiate innovative mentoring and training programs. Hereby, the employees of the Baby Boomer generation are provided with the opportunity to transfer their knowledge to the younger generations through mentorship and retention programs such as phased retirement. The organization has also incorporated employee engagement activities like giving ongoing feedback, offering flexible working hours, defining clear goals linked to those of the organization, recognizing the exemplary talents and rewarding them appropriately and ensuring a more distributed decision making process (Noe et al., 2015). In these ways employees will experience a heightened emotional connection towards the company.
Paying for Talent, “gamification” and “on-boarding” are other strategies that the organization has identified as a means of retaining the best talents. Through paying for talent the organization compensates employees through past performance, critical skills and future potential. This way the individual feels highly valued by the organization. Onboarding refers to the process of slowly integrating a new team of recruits to develop the required knowledge, skills and behavior that will contribute to the success of the firm (Noe et al., 2015). Gamification is the practice of playing games at work that encourages workers to associate the workplace as fun and eventful. Though in the past this idea would have been seen as disruptive it has become a staple for successful business strategy. Research has shown that his practice has significantly enhanced productivity, health and wellness, customer engagement and innovation.
Compensation and benefits
The organization has been identified to incorporate a fair compensation and benefits for its employees. One of the lowest earners in the organization may be the tellers who earn between $21,000 and $32,000 a year this a little above the minimum wage salary that is recommended by the federal and state governments. In this case, the individual is able to earn more than $10 an hour as the regular wage. This is the typical median wage of most Americans. However, an employee is able to receive higher and better pay in the other more lucrative job posts in the organization including analysts of all kinds, lawyers, project managers, auditors, software engineers and many more positions available. These positions will offer the individual more than $40,000 annual salary without the added bonuses that they may receive in a year. The Millenial generation who are seen as the more tech savvy and highly educated will thrive at this organization that offers students the opportunity to develop their careers and fully incorporate their skills into their work.
The evident benefits associated with working with Chase Bank include medical, dental and eye care that is usually a basic requirement for all business corporation of this size. The organization has been able to engage its employees in their various work stations as a means to enhance job satisfaction within the company. Many of the employees will be reported to identify a stress free working environment due to the flexibility and interaction between employees involved (Dimon, 2016). Employees of Chase Bank will also report being engaged in a 401(k) savings plan that is popular among full time employees. The organization is involved in providing at least 5% of the savings made by the individual. Additionally, individuals who study while working with the organization will have their tuition fees reimbursed as they continue to climb the corporate ladder. Some employees have reported receiving paid holidays and vacations where many of them may be seen as a form of enabling workers to relieve themselves of work-related stress.
Employee and labor relations
In a bid to steer a company to success or the objective goals of the organization, it is important that the members of staff are able to effectively interact and co-operate in their daily operations. This is evident as the organization prompts its employees to engage with one another as a means of realizing the best opportunities for the organization. The managers are seen to have a greater responsibility in the governance and operations of the daily activities. This is where managers are seen as the highest leaders within a particular branch and hence they serve as the immediate source of help for lower level employees seeking assistance with their various operations (Dimon, 2016). In this way, the manager may provide guidance on how to perform a particular task that may present a dilemma to the employee. A manager also serves as a source of help in reporting suspected violation of ethics in the organization and he or she is required to report it to the significant authorities involved. Immediate response will be provided to ensure the employees remain satisfied.
The organization will always look to improve the experience of their workers in a bid to maximize satisfaction at the workplace. This is through managing and solving conflicts that may occur at the workplace. The organization prides itself at having a conducive working environment for all. Chase bank will not tolerate employees who seek to negatively affect the working experience of other workers through verbal or physical harassment. Legal measures may be undertaken by the affected worker backed by the firm itself (Dimon, 2016). This ensures that workers at Chase bank are focused at propelling the success of the organization. With a diverse community in the US, the organization also incorporates the same in its workplace environment. This way, workers are able to enhance their cross-cultural knowledge and embrace those not known. The members of staff are able to develop the ideal of equality that is prompted by the federal government. Through the top-down interactions made by the employees of the organization, front level workers are able to feel more appreciated as they are recognized for talent and may shift their careers into different directions.
Risk management
Chase Bank under its parent company JP Morgan Chase & Co.’s prides itself as the best in risk management in the banking industry. This is particularly after the organization survived the financial crisis of 2007-2008 while many of its competitors suffered a great deal. This was made possible through the organization’s risk management practices. Hereby, the bank holding company identified nine risks that could affect the firm. These included liquidity, credit, market, interest rates, country (serving the multinational part of JPM), private equity, operational, reputation and legal and fiduciary (Zeissler & Metrick, 2014). These factors are taken into keen consideration by the risk policy and the audit committees that ensure that the business practices of the organization do not affect the performance of the organization. These committees are however made up by the members of the board which has been a major factor in the continued issues affecting the company within the last five years.
As a publicly traded company, the organization is quite active in the stock exchange of the major cities in the US. Therefore, when the organization lost more than $2 billion in 2012 it was evident that risk controls were not in play during the year. CBS News reports that the company lost more than $6 billion in trading in 2012 (CBS News, 2013). This is a clear case of the organization’s lapsed risk management (Kaplan & Mikes, 2012). The organization has however affirmed that anti-money laundering remains one of the bank’s major priorities.
Additionally, the organization has come under scrutiny for its risky businesses where tellers are compelled to steer clients to more riskier loans and credit cards who would be better off without them. Yerak (2016) reports that the Chase Bank has been ordered to pay up to $136 million across the nation to credit card borrowers after using illegal tactics to compel them to pay up fees and penalties. In this regard, it is evident that the risk management practices of the organization are below expectation and changes should be made to avoid further loss.
References
CBS News (2013) JP Morgan Chase ordered to fix poor risk management . CBS News, Online. Retrieved from http://www.cbsnews.com/news/jpmorgan-chase-ordered-to-fix-poor-risk-management/
Chase Bank (2016) News & Stories . Online. Retrieved from https://www.chase.com/news
Dimon, J. (2016) Code of Conduct: It Begins with Me . JP Morgan Chase & Co., Online. Retrieved from https://www.jpmorganchase.com/corporate/About-JPMC/document/code-of-conduct.pdf
Goss, S. (2015) JP Morgan Chase Adding 1800 Jobs . Delaware, Online. Retrieved frpm http://www.delawareonline.com/story/money/business/2015/10/26/jpmorgan-chase-adding-1800-jobs-delaware-19/74629918/
Kaplan, R. S. & Mikes, A. (2012) Managing Risks: A New Framework . Harvard Business Review, Online. Retrieved from https://hbr.org/2012/06/managing-risks-a-new-framework
Noe, R. A., Gerhart, B. A., Hollenbeck, J. R. & Wright, P. M. (2015) Human Resource Management: Gaining a Competitive Advantage (9th ed.) New York: McGraw-Hill Education.
Yerak, B. (2016) Chase fined $136 million for illegal debt collection practices . Chicago Tribune, Online. Retrieved from http://www.chicagotribune.com/business/ct-chase-settlement-0709-biz-20150708-story.html
Zeissler, A. G. & Metrick, A. (2014) JP Morgan Chase London Whale D: Risk Management Practices . Yale School of Management, Online. Retrieved from http://goo.gl/6sibYz
