THE FARM BANK
Paper instructions:
CASE:THE FARM BANK
The Farm Bank is one of the state’s oldest and most solid banking institutions. Located in a regional marketing center, the
bank has been active in all phases of banking, specializing in farm loans. The bank’s president, Frank Swain, 62, has been
with the bank for many years and is prominent in local circles.
The bank is organized into six departments, as shown in Figure 7.7. A senior vice president heads each department. All
six of them have been with the bank for years, and in general they reflect a stable and conservative outlook.
The Management Information System
Two years ago, President Swain felt that the bank needed to modernize its operations. With the approval of the board of direc-
tors, he decided to design and install a comprehensive management information system (MIS). The primary goal was to im-
prove internal operations by supplying necessary information on a more expedited basis, thereby decreasing the time
necessary to service customers. The system was also to be designed to provide economic operating data for top management
planning and decision making. To head this department, he selected Al Hassler, 58, a solid operations manager who had some
knowledge and experience in the computer department.
After the system was designed and installed, Mr. Hassler hired a young woman as his assistant. Valerie Wyatt was a
young college graduate with a strong systems analysis background. She is the only woman at this level and considerably
younger than any of the other managers.
In the time since the system was installed, the MIS has provided thousands of documents of operating information, in-
cluding reports to all the vice presidents, all the branch managers, and the president. The reports provide weekly, monthly, and
quarterly summaries and include cost of operations, projected labor costs, overhead costs, and projected earnings figures for
each segment of the bank’s operations.
The MIS Survey
Mr. Swain was pleased with the system but noticed little improvement in management operations. In fact, most of the
older vice presidents were making decisions and functioning pretty much as they did before the MIS was installed.
Mr. Swain decided to have Ms. Wyatt conduct a survey of the users to try to evaluate the impact and benefits of the new
system. Ms. Wyatt was glad to undertake the survey, because she had long felt the system was too elaborate for the bank’s
needs. She sent out a questionnaire to all department heads, branch managers, and so on, inquiring into their uses of the
system.
As she began to assemble the survey data, a pattern began to emerge. In general, most of the managers were strongly in
favor of the system but felt that it should be modified. As Ms. Wyatt analyzed the responses, several trends and important
points came out: (1) 93 percent reported that they did not regularly use the reports because the information was not in a use-
ful form, (2) 76 percent reported that the printouts were hard to interpret, (3) 72 percent stated that they received more data
than they wanted, (4) 57 percent reported finding some errors and inaccuracies, and (5) 87 percent stated that they still kept
manual records because they did not fully trust the MIS.
FIGURE 7.7 Partial Organization ChartAssistant to
Vice President
Ms. WyattVice President
MIS
Mr. HasslerVice President
Savings Vice President
InvestmentsVice President
OperationsVice President
Loans Vice President
TrustPresident
Mr. SwainB
I want you fill these Question please
THE FARM BANK CASE ANALYSIS FORM
I. Problems
A. Macro
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B. Micro
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II. Causes
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III. Systems affected
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IV. Alternatives
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V. Recommendations
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