A number of factors are integral to a successful implementation of the relationship banking concept in Bank of America's TQM program. Relationship pricing is a process whereby services are priced in ways that encourage clients to consolidate financial services in a single institution. Advocates of relationship banking contend that a bank's best customers should be rewarded, and that relationship pricing helps achieve that end by adapting the prime rate concept to preferred retail customers. Two-tier pricing is a part of Bank of America's TQM program, with lower prices for those customers who concentrate their banking business at Bank of America.
The personal account representative is another feature of relationship banking in Bank of America's TQM program. The personal account representatives at Bank of America establish a stable personal liaison between bank and client. Through the use of personal account representatives, Bank of America attempts to maximize customer satisfaction levels.
Bank of America also defines customer service quality in the context of time in the institution's TQM program. To this end, as an example, Bank of America guarantees five-minute service time for bank teller customers.
In the context of structural dimensions, Bank of America may best be described as a highly formal organization, with high levels of complexity (vertical, horizontal, and spatial) and high levels of specialization. The characteristics of the organization, however, vary, to some extent, with respect to each of the eight structural dimensions. The high levels of documentation required in the functioning of the bank characterize its organization as a highly formal organization. The individual tasks within the organization are subdivided into quite narrow ranges of responsibility. This approach causes Bank of America as a highly specialized organization.
The ways in which the tasks of the organization are to be perfo...
Critique on Bank of America organization. (2000, January 01). In LotsofEssays.com. Retrieved 16:51, August 28, 2016, from http://www.collegetermpapers.com/viewpaper/1303486371.html