Affinity Plus Case Hbs

2332 Words Jun 10th, 2013 10 Pages
Case Assignment 3
Affinity Plus (A)

Table of contents
Introduction 2
The benefits of “employee latitude” 2
The disadvantages of “employee latitude” 3
Balancing the tradeoffs between different degrees of latitude 3
Reasons for the high employee turnover at Affinity Plus 4
Management control system changes 5
The alignment of indirect lending and the MOE 6
Conclusion 6
Bibliography 8

Introduction
In this case assignment the credit union Affinity Plus, which is based in Minnesota, will be examined. As they implemented a new control system, focusing primarily on customer needs, they forgo classical principals as authorization processes and limitations for employees. In the following assessment we will evaluate Affinity’s
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In a way that the interest of the company was subordinated, and time and resources were spent on events that did not economically contributed to Affinity.
This problem was eventually solved by the implementation of MOE (Member – Organization – Employee). MOE helps employees in making better quality decisions for members; to being better able to be responsible for the different operations and decisions they make and be able to defend these. Also, MOE has helped employees to better identify what is right for a member. MOE can be seen as a regulating system where employees can fall back on when they struggle with making a decision but employees can also be held liable by their supervisors for the decisions they made. This example reflects that an increase in employee latitude can best be accompanied with a regulation system, which in this case was MOE.
Balancing the tradeoffs between different degrees of latitude
Employee latitude can be implemented in any range, from high to low. It is important that a balance is found in what management wants to achieve with latitude, what risks they are willing to take and what they are willing to sacrifice to establish a certain amount of latitude. There are several positive and negative arguments which should be considered in the choice of a degree of latitude.
A low degree of latitude can diminish personal affection, employees that strictly follow

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