You$$re are required to answer each question in about TWO $(2)$ pages long using Arial font size $12$ double spacing between your lines.

CASE ANALYSIS

Just over a year ago, the Credit Card Sales Department $($CCSD$)$ of FP Bank was restructured.

Two key aspects of the restructure included:

$$ The allocation of staff to teams.

$$ The introduction of a sales target system. Each team is set sales targets and the results are published internally monthly in a league table. The team that is top of the league receives a cash bonus.

A review has recently been undertaken to assess the effectiveness of the re$-$structure. The findings have suggested that, overall; there has been an adverse effect on the performance of the Department. There is hostility between the team leaders. In addition, communication and cooperation between teams has fallen dramatically. The following observations were made about each of the three teams in the review:

$$ Team A is always at the top of the league and, as a result, receives the cash bonus each month. The team leader of A is highly motivated and team spirit is high. Team members are constantly coming up with new ideas on how they can increase sales. The team seems to be a very cohesive group and regularly organizes social events just for its own members.

$$ Team B never succeeds in meeting its targets. The team leader does not seem bothered by this and appears more interested in working out how much longer he needs to work before he can retire. Team members have complained about their team leader, and two members have resigned. There is a personality clash between the team leader and another member of the team who is viewed by the rest of the team as the $$unofficial$$ leader. Absenteeism of team members has increased significantly since the restructure.

$$ Team C whilst achieving its targets is always behind Team A$.$ The team members are an extremely tight knit group but have become very insular and are no longer responsive to the work needs of other members of staff in the Department. They appear to have their own agenda and tend to reach consensus on decisions which are often excessively cautious.

The Sales Director responsible for the restructuring of the Department is reluctant to make any changes. However, some action is needed to resolve the problems identified in the review.

You are required to$.$

$($a$)$ Discuss the benefits and problems associated with the introduction of the sales teams and sales targets in the Credit Card Sales Department.

$($b$)$ Discuss how the conflicts caused by introducing sales teams and sales targets in the Credit Card Sales Department could be minimized.