Final answer:
Raising salaries at First Morrisville Bank could increase employee dedication and improve bank performance if it aligns with Davis and Moore's theory on incentivizing workers. The strategy should be financially sustainable, taking into account the potential impact on profits and the possibility of political pressure. First Morrisville Bank must carefully weigh the benefits of higher wages against these possible financial and political challenges.
Step-by-step explanation:
The strategy of raising salaries above those of other banks can be successful if it aligns with Davis and Moore's perspective on incentivizing employees. This theory posits that offering higher levels of income, prestige, and power as rewards for more important work can encourage employees to work harder and longer. This might attract more skilled and dedicated employees to First Morrisville Bank, consequently enhancing overall performance and competitiveness in the financial industry.
However, the approach must be balanced with financial sustainability—including considerations of unionized workers and the potential impacts on the bank's finances—so that it doesn't lead to financial strain or insolvency. This is a real concern, as businesses, including those with a high percentage of union employees, can face bankruptcy if higher wages significantly exceed revenues and impact profits.
Furthermore, the bank supervisor's decisions regarding salary increases might also be subject to political pressures, typically from bank's owners and local politicians as indicated. An effort to raise salaries, therefore, must be evaluated in the context of its potential contentiousness, ensuring that it doesn't cause undue public or political conflict that might harm the bank's reputation or undermine its stability.