Atlanta Home Loan

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Case --- Atlanta Home Loan 1. Identify the controls that Al Fiorini implemented to manage his business (both before and after he went back to school). Classify each control as a results, action, or personnel/cultural type control. a. Before Al went back to school •Result Controls: ① Telemarketers were paid a combination of an hourly wage plus a performance bonus ($10.00) for each lead produced. ② AHL paid the loan officers 40% of total loan revenue on loans that AHL originated, and 60% on loans they originated. •Action Controls: ① Telemarketers called and gave the potential clients’ names to Al and Al distributed the names to AHL’s loan officers. ② Al monitored the activities of loan offers, track the number of credit inquiries each requested. ③ Al monitored the loan application per lead ratios and their trends. ④ Under Al’s direction, AHL’s business grew rapidly. Telemarketers, loan officers and loan processors all took their responsibility. •Personnel Controls: ① Select the employees who work as telemarketers, loan officers, loan processors… to see if they were satisfied with these position or not. b. After Al went back to school •Result Controls: ① Al monitored AHL operations from afar. ② Al tracked the employee head count, the number of leads produced, credit inquiries requested, loan applications funded, office expenses and bank activity. ③ Al had the authority to sign checks written against AHL’s main bank account. ④ Al had all of AHL’s corporate mail forwarded to his California address. ⑤ Al was concerned about Wilbur keeping overhead expenses in line with production. •Action Controls: ① Al was talking with employees, particularly loan officers, 3-4 hours per day on the phone. ② Al approved Letitia Johnson to take charge of his four signed, blank checks written against the main account with his permission. •Personnel Controls:
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