Because new regulations will greatly change the products and services offered by savings and loan associations, time studies must be performed on tellers and other personnel to determine the number and types of personnel needed and incentive wage payment plans that might be installed. As an example of the studies that the various tasks will undergo, consider the following problem and come up with appropriate answers. A hypothetical case was setup in which the teller (or account advisor) was required to examine a customer’s portfolio and determine whether it was more beneficial for the customer to consolidate various CDs into a single issue currently offered, or to leave the portfolio unaltered. A time study made of the teller yielded the following findings:
Time of study 120 minutes
Number of portfolio examined 15 portfolios
Performance rating 110 %
Rest for personal time 15 %
Teller’s proposed new pay rate $30 per hour
a) What is the normal time for the teller to do a portfolio analysis?
b) What is the standard time for the analysis?
c) If the company decides to pay the new tellers on a 100% premium payment plan, how much would a teller earn for a day in which she analyzed 70 customer portfolios?