Case Analysis of First National Bank Essay

1461 Words Oct 3rd, 2010 6 Pages
First National Bank | A Case Study “If we don't change, we don't grow. If we don't grow, we aren't really living.” -Gail Sheehy | Amil, Paula BiancaIsidoro, Joanna MarieRojas, RobertSampang, Makrene LaraSeptember 17, 2010Prof. Aliza Racelis |


Point of View: Sammy Viray, New FNB President


Background Information
Sammy Viray and his assessment of the bank * In June 3, 1993, Sammy Viray reported to First National Bank (FNB) as its new president. * Studied in one of the prestigious Ivy League
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Force-Coercion strategy
A force–coercion strategy includes authority, rewards, or punishments as major inducements to change. That is, the change agent acts unilaterally to “command” change through the formal authority of his or her position, to induce change via an offer of special rewards, or to bring about change via threats of punishment. People respond to this strategy mainly out of the fear of being punished if they do not comply with a change directive or out of the desire to gain a reward if they do. Compliance is usually temporary and continues only as long as the change agent and his or her legitimate authority are visible, or as long as the opportunities for rewards and punishments remain obvious.

Pros | Cons | * Immediate compliance of employees * Will not incur any cost which can be associated with seminars and consultation about the changes | * Temporary compliance of employees * Bad reputation of the president * If Possible decline in work performance * No consultation with the employees |

2. Rational Persuasion

Change agents using a rational persuasion strategy attempt to bring about change through the use of special knowledge, empirical support, or rational arguments. This strategy assumes that rational people will be guided by reason and self-interest in deciding whether or not to support a change. Expert power is mobilized to

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