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Bureaucratic Organizational Structure & Practical Consequences

3042 words - 13 pages

Overview of the Organization

Commercial Bank of Ceylon PLC

➢ History

In 2003, Commercial Bank of Ceylon Ltd. acquired Credit Agricole lndosuez (CAl) operations in Bangladesh. CBC, while continuing CAI's strategy would further extend the reach and range of services in Bangladesh. Over a period, CBC has strengthened the retail banking side as well, for which Commercial Bank has made its name in Sri Lanka. The formal taking over of CAI's Bangladeshi operation took place on November 6, 2003. The official opening ceremony was held on 10th December 2003 attended by Governor Central Bank of Sri Lanka, Governor of Bangladesh Bank and many other distinguished guests, including diplomats, ...view middle of the document...

➢ Their vision
To be the Bank of Excellence in Service and Commitments

➢ Their mission
To deliver optimum value to:
1. Customers
2. Employees
3. Shareholders and
4. The nation
While ensuring good Corporate Governance
➢ Achievements
CBC is one of the emerging foreign Banks in Bangladesh. They believe in following professional ethics and delivering quality service, which are essence of the sustained growth of the bank. In that tradition, the bank continues to be recognized by the state and private organizations. A few of them are listed below-

1. In 2013- Received "Best Corporate Performance Award- 2012"
2. In 2012- CBC rated AAA again by CRISL for long term for the 2nd year in succession.
- The Industry Best Rated Bank Award 2012
3. In 2011- "Best Corporate Performance Award" by ICMAB
4. In 2010- CBC received "CSR Award 2008-2009" from Banker's Forum

Organizational Structure

The organizational structure for the bank of CBC is given below-


Figure 1: Organizational Structure of CBC

Part A: Management Style

According to our fact findings and personal judgments, we have found and believe that the Commercial Bank of Ceylon PLC’s management style is a bureaucratic management style. The whole organization practice is based on order, and the legitimate use of formal authority. We have also found the similarities between our learning from the Max Weber’s bureaucratic organization model. As we know that, bureaucracies are meant to be orderly, fair, and highly efficient. Their features include a clear-cut division of labor, strict hierarchy of authority, formal rules and procedures, and promotion based on competency. All these features are founded in this bank. Following is the model of bureaucracy-

Figure 2: Max Weber’s Model of Bureaucracy

➢ Division of Labor

In Commercial Bank of Ceylon PLC, here managers’ job is to follow the rules and strategies, efforts and activities with the senior managers and bottom level managers to the end level of employees. Here in Commercial Bank of Ceylon Ltd decided to hire young, energetic, and skilled personnel in the bottom line of the management structure. But these young personnel’s have to work under the old-fashioned managers, as those managers are very much conservative in nature. The whole strategic decisions are taken by the top management of the bank, which is situated in the Sri Lanka. Accordance to their decisions, the top managements from Bangladesh take the basic operating decisions for the whole country. The whole set of works performed by the employees are set and well defined. There is no scope for job rotation or switching. All of them do the same kind of work unless they get a promotion. CBC has divided its overall work activities into several parts by following the rule of division of labor. It has eight main departments and they are: Customer care, Finance...

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