The major problems facing the credit card division of BankUSA
BankUSA’s credit card division is contemporarily facing numerous problems. These challenges include neglect of responsibilities by some departments, poor data collection methods, complacency by some employees, lack of collaboration between departments, and difficulties in identifying the main cause of problems in the department among others. The success of any organisational division hinges on collaboration between the various departments within the division.
In BankUSA credit card division, there is no collaboration between the departments. The marketing department does not allow staff members from the operations department to help in development of a customer survey program. In the end, the different departments end up collecting contradicting information from consumers. Apart from lack of collaboration between the departments, some departments have neglected their duties. For instance, instead of the operations department taking ample time to give its input in developing customer survey questions, it hands the task to staff members with limited experience about the company.
The level of complacency among some of the employees in the company is high. Staff members in the operations department think that they have adequate experience in what amounts to outstanding services. However, they do little to help the company improve its performance. When called upon to help the marketing department in developing customer survey questions, they give the responsibility to individuals with limited experience about the company.
BankUSA’s credit card division is incapable of ascertaining if it meets all consumer needs. Moreover, the division uses inconsistent methods in collecting data from customers. Consequently, the company ends up collecting contradicting information regarding its performance. The credit card division operates in numerous sites and offers a number of services, and given that the credit card division offers numerous services at different sites, it is hard for the division to point out its basic challenges.
The measuring of the real service level
There is a significant mismatch between the internal and external service levels in the BankUSA credit card division. An organisation is on the right track when both internal and external performance levels rhyme. At times, information collected from these two service levels may be confusing, and thus might lead to poor organisational performance, if not interpreted well. The real service level is what is measured externally.
Organisational performance depends on the level of customer satisfaction. BankUSA is a profit making institution; hence, its performance depends on how it effectively serves its customers. Consumers are the final decision makers when it comes to organisational performance. Consequently, if an organisation offers excellent services, but does not satisfy its customers, it cannot last for long in the ever-competitive market. Information gathered from customers indicates how strong or weak an organisation is in the market.
Internal measures show how efficient an organisation is in developing and delivering its products or services. In most cases, data collected internally is used to determine if the organisation is operating within the established budget. Nevertheless, it does not imply that the organisation actually satisfies its customers. Hence, even if an organisation cuts down on its operations cost, but fails to increase its profit margin, it cannot be regarded as performing.
An organisation may be efficient in producing and delivering its products and services, but fail to meet customer needs. Internal information about organisational performance does not reflect the reality in the market, which actually determines how well an organisation is in the market. For instance, it may be producing products or services that are not urgently needed by its target consumers.