CRITIAL THINKING: PROBLEM ANALYSIS
Problem Analysis
Countrywide Home Loans is a well known mortgage company. Like most mortgage companies, they are feeling the same effects of the mortgage slump that is taking over today’s economy. To ensure they stay on top of their game, Countrywide has implemented a new department to guarantee their stability in the ever changing mortgage world. The new department is called Federal Housing Association (FHA). Although FHA is an established government based program, until recently, Countrywide has not provided this program to their customers. When Countrywide rolled out this program, there were many things they considered, but they never anticipated how much work they would initially have. Originally, Countrywide took employees from various underwriting and processing positions to fill the FHA positions needed. They gave their employees little to no decision in this process. Their options were to take the FHA position or accept a severance package. Most obliged and took the FHA position. Currently, there are many people that hold FHA manager, underwriting, processing and opening positions that do not want to be there. More importantly, the majority of these people have no idea what they are doing. Therefore, Countrywide has many people that are uninformed of to the way FHA goes about their business. With that said, when people first took these positions, they were briefly trained and thrown into a position they know very little about. This has caused a huge spike in employee turnover, which has caused Countrywide to suffer tremendously.
Triggering Events
There are a series of events that happened at the beginning of this process that triggered the increase in employee turnover. The lack o ...