Bonifacio's Savings and Loans Association

In: Business and Management

Submitted By KiaraCassie
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Case Analysis

Case Analysis
Case: BONIFACIO SAVINGS AND LOANS ASSOCIATION
The Bonifacio Savings and Loan Association (BSLA) in its consultative meeting for the year decided to embark on a one year deposit campaign program. Dubbed as BSLA’s “Employee Motivation Program (EMP)”, the deposit campaign is aimed to increase deposit levels which was BSLA’s traditional source of funds.
Mr. Danilo Lagman, VP for operations, was chosen as overall program coordinator. After a month of preparation, Mr. Lagman and his staff is ready to launch the EMP. Under the guidelines, bank officers and employees were given account credits for every account turn in. Points were based on the operating balance and their average balances thereafter. The participants were divided into teams, with one branch/division representing one team. To monitor progress of the EMP, solicited clients surrendered introductory cards given to them by the EMP participants. Passbook/deposits certificates were then marked with the EMP logo. As an added incentive, aside from individual bonuses specific credit levels reached, special bonuses were given to teams if group targets were met. Personal and team award credits earned were summarized and distributed at the end of each month within the deposit campaign period. The more award credits earned, the more expensive the merchandise that can be redeemed. The list of prizes included calculators, watches, living room, and microwave ovens, and others.
Mr. Panganiban head of the Accounting Division, took great pains to get a big budget for the program. He was the one to introduce the EMP to the board during the year end meeting. He held strong to the belief that with the proper incentives, the employees could be enlisted to help the Bank attain its targets.
During the consultative meeting Mr. Panganiban outlined to the managers the deposit level targets for…...

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