Human relations techniques which make the company a great place to work
Navy Federal Credit Union is a credit union based in Vienna in Virginia. It was incorporated as the navy department of employees’ credit union on 17th January 1993 under the district of Columbia. It was strictly for employees of the navy who had membership in the federal employees’ union. After president Roosevelt signed the federal credit union act into law in 1934, it was dissolved in 1947 to form the federal credit union which was referred as navy department employees federal credit union. In 1951, the daily undertakings of the credit union transformed into more professional management. In 1954, the credit union made changes to their charter so that navy officers from any part of the world would acquire membership and this resulted to the formation of Navy Federal Credit Union. In 1962, the union reached the breakeven point and was named the best credit union globally and it maintains this position until today. The union moved to Vienna, its present headquarters in Virginia in 1977 and continues to grow outwards from there (Goddard et al., 304-319)
In 2003, the statutes of the credit union were changed again to accommodate navy contractors. On May 2008, the membership of this credit union was widened to encompass the whole defense department the inclusion involved the serving personnel, those who have retired and all the reserves including marine corps, army, air force personnel and navy and all civilians in the department of defense. The membership of the navy federal credit union was changed again in 2014, to accommodate members of coast guard and their employees. Due to booming increase in the number of members, the headquarters at Vienna was expanded and six hundred new jobs were introduced. The credit union also went ahead and set a new location at Pensacola in 2015 and expects to employ more than ten thousand local workers by the year 2020.
Navy Federal Credit Union like any other financial institution, offers a number of account services. It offers services such as savings account, IRA accounts, checking accounts and certificates. The credit unions give their members consumers loans, mortgages, credit cards and equal credit lines and also minor business facilities. The union is also at the front line in giving their customers broad asset services, operational brokerage amenities and insurance.
Human Relations theory
These theories were developed in 1920’s by professor Elton Mayo during the industrial revolution. Human relations theory puts emphasis on the use of people on productivity rather than machines.it is through good human relations that development and growth of companies is realized. This means that if employees are given attention and encouragement of participation, the see the significance of their work and they are motivated towards production which will result into very high quality work (Fiske and Alan Page, Vol 1). Naval federal credit union uses human relation theories to enhance their success. Some of the human relation theories used by this credit union are explained below.
- Working Together
Naval Federal Credit Union believes in inclusivity. Employees participate in common projects as a group, they exchange ideas and motivate each other towards success. Without enhancing cohesion between the worker and creating a working culture, it becomes hard to manage workers. When a business has an engaging workplace and well-trained workforce, it is more likely for such a company to appeal to high quality employees and enhance loyalty with customers and be quick to adapt and meet the requirements of a dynamic marketplace. This has helped the Navy Federal Credit Union remain as the leading credit union globally.
- Improving Retention
The human relation in the workplace is very important for retention of employees. Navy Federal Credit Union values retention over turnover since turnover is very costly. Maintaining old employees who have a clear understanding of the business is very important for the company. Ensuring the best employees see their relevance in the business is one of the ways that the credit union ensures retention and this makes the company remain financially sound globally.
- Motivation and Productivity
A good relationship at the workplace will ensure employee motivation which is very essential in ensuring productivity. Building good relationships by either recognizing the value of an employee or being concerned with their needs ensures productivity.
- Fostering Creativity
Navy Federal Credit Union has remained relevant in the finance sector due to their market creativity that ensures customer satisfaction and maintains a good relationship between them. this company has been able to keep up with the advancement in technology and the creativity of its employees is unmatched. Without good relationships at the workplace, employees are not able to share ideas and develop solutions to the needs of the customers.
Productivity and Quality
Productivity denotes the association amid the quantity of productions and amounts of contributions required in the production of a product. Managements determines productivity by taking a comparison between the produced amount and the amount of the raw materials and manpower that was needed to produce that product. When the amount of the product produced is more that the material and Labour used during the production, then this is considered high productivity. Quality is the degree of the product’s perfection and fineness. When this product is compared with other products it stands out as the best product.
Navy Federal Credit Union pays a great deal of attention to its productivity strategies in order to avoid loses while maintaining quality production. By use of their experienced strategist and production managers, the credit union has been able to maintain a top spot in the market both in productivity and quality. Its service delivery section is one of the best as they offer best quality services at affordable rates and this helps them realize high profits. Productivity and quality go hand in hand with profitability. Without keen look at the productivity the company becomes vulnerable to loses. Low quality products and services puts the company at a risk of losing customers and this has a negative effect on the profits of the company. Navy Federal Credit Union is determined in ensuring high quality services produced at the lowest possible inputs (Singh and Jagdip 15-34)
Leadership in the Company and the Leaders
The factors that internally affect the profitability of company are associated with its leadership. In a big organization such as navy federal credit union, three levels of leadership are involved in making decisions pertaining the organization. Although each level of leadership plays an independent role in the productivity and quality of the company they all function as a common entity (Graetz and Fiona 550-564). The three levels of management and leadership are discussed below.
- Top-level leadership
This rank of leadership is responsible for the general strategic vision for the organization and is the top most rank in the hierarchy of organizational leadership. This leadership is the one tasked with the responsibility of managing the whole organization. The decisions that these leaders make are effective throughout the whole organization. the top level in naval federal credit union makes decisions such as; The procedures and policies to be followed, Allocation of resources, Budgeting and setting up quality standards. These decision affects profitability significantly
- Mid-level leadership
When the top level leadership stipulates the plans, it is the role of the mid-level leadership to carry out these plans. The decisions made by these leaders include; tactical plans to realize the strategic goals set by the top leadership, action plans on attainment of short-term goals and marketing of the company.
- Low Level leadership
These leaders are responsible for daily supervision of employees and take their orders from mid-level leaders. They ensure that the workers are on the right track and give the expected quality of the products at the best productivity rate and lowest inputs possible.
Culture of the Company
Culture of the company is the personality of a company. The culture of the company encompasses a lot of elements among them the working environment, the mission of the company, its ethics, values goals and expectations. Company culture ensures that employees enjoy their time at the workplace when they fit in this culture. In the navy federal credit union, the company culture is to ensure that the needs of the employees are in line with the culture of the company. The company leadership helps develop a good relationship within the workers and this ensures high productivity. On the employer’s side, a company culture ensures high productivity from the workers. When workers fit in the company culture, they tend to love the company and might want to remain and work for the company for longer time, this means that through strong office culture, the employer is able to improve productivity and enhance effective employee retention. The Navy Federal Credit Union ensure that through good company culture the company remains relevant to workers and workers feel a sense of ownership of the company. The workers feel part of the company (Dahlgaard et al., 263-281).