Alfredo Carmelo K.

Romualdez Information Management

ID: 11296380 June 27, 2013

Case Analysis DBMS Upgrade Faces Employee Opposition

I.

Problem Definition:
Should Huntington Bancshares adopt a Database Management System?

II.

Review of Background information

a. Database Management System - Consists of a group of programs that manipulate the database and provide an interface between the database and its other application programs. Adopting such a system will allow Huntington Bancshares and its branches real-time up-to-date information. b. Huntington Bancshares is an American bank holding company whose management has decided to upgrade its DBMS or database management system in hopes to not only cut down on costs but also improve particular aspects of its operation c. Huntington Bancshares employees Were initially resistant to in implementation of the database management system having claims such as adopting such system will no long allow them to do their job, that some of their subordinates will not be able to learn how to use the system forcing the supervisor to do their job himself and also that adopting the system will increase workload.

III.

Analysis of the Facts/Data

a. SWOT Analysis

Strengths
Currently one of the biggest bank holding companies in the US.

Weaknesses
Currently, majority of reports are done manually Does not have full support from employees in adopting the new system.

SWOT Analysis
Opportunities
Will be able to cut down on the costs e.g. paper Will be able to present and view financial data on "real time" May improve compliance preformance amongts concerned regulatory agencies.

Threats

If system is not adopted, company may lose to other banks - losing competative edge due to lack of technological advancements Database Management System may not work as initially planned The adoption of the Database management system will initially intail additional costs in terms of software,hardware and training requirements

IV.

Alternative Courses of Action

a. Adopt the Database Management System i. Pros: 1. Will allow the company to improve its compliance performance with related regulatory agencies 2. Will allow the company to gain a competitive edge over other companies who have yet to adopt such system 3. Will give management, not only more complete but timely information from its branches 4. Could possible help the company cut down on some of its overhead such as paper and employees 5. May ultimately improve efficiency of current processes and of the employees

ii. Cons: 1. Adopting such a system may entail additional costs in areas like software, hardware and in other training requirements 2. May initially contain bugs which could lead to faulty reports thus harming the companys performance 3. Some employees have voiced their concerns and choosing not to adopt or support such system. 4. May cause a decline in employee morale 5. b. Status Quo i. Pros: 1. Will not meet resistance of employees who chose not to adopt new Database Management System 2. The company would rid themselves the risk of potential bugs upon adoption of new DBMS 3. Will not have to spend large amounts of money for training and the purchase of hardware and software ii. Cons: 1. Will not be able to take advantage of technological advancements and processes will remain primitive 2. May lose support from those who were pushing for the change 3. Will not be able to meet the requirements from concern regulatory agencies 4. Continue to incur high costs like that of purchasing paper

V.

Recommended Course of Action In most cases, resistance to change is a normal reaction; while some see it as something that could be

potentially beneficial to the company and to their own performance in the workplace others see it as a threat which could lead to something that would replace them or that could force them to take on additional work. It is a fact that businesses must adapt or change in accordance to the times to survive and even flourish and this is especially true now more than ever. The goal is for management not only to identify possible areas where change may be needed but to make sure that when change is acted on, its negative effects are kept to a minimum. There are a number of ways to minimize the negative effects of change, and one of the most basic ones would be to really look into the reason for resistance. Some people feel that the new systems will replace them, some do not understand the new system to be implemented and do not understand the value of its implementation others on the other hand some think that the adoption of the new system will entail additional work without benefits. Understanding the origin of the resistance will allow management to properly direct its efforts towards strategies to win over these employees.

Most of the time, poor communication is the primary cause of the resistance. In my own experience the lack of detail and dissemination of inaccurate information is one of the main problems of our company is facing and over time effort in improving communication strategies have paid back ten-fold. In the case of the bank holding company, a lot of employees were resistant due to lack of know-how and poor dissemination of information. Unfortunately, the possibility of job loss due to computer replacements in such scenarios are always a reality but in such cases there are a lot more winners than there are losers.

Over time, new systems will always be introduced into the business processes and these will always be met with resistance. It is managements obligation to identify systems worthy of being introduced into the company and make sure that it takes all precautionary measures as to minimize resistance from its employees.