Course Title- Principles of Management
| Contents | Page number |
1. | Executive summary | i |
2. | Introduction | ii |
3. | Planning process | 1 |
4. | Review of plans | 2 |
5. | Organizing | 3 |
6. | Departmentalization | 3 |
7. | Work specialization | 3 |
8. | Chain of command | 3 |
9. | Span of control | 5 |
10. | Centralization | 5 |
11. | Formalization | 6 |
12. | Communication | 6 |
13. | Appendix | iii |
The head of branch again further breaks the targets (loans, deposits etc) and delegates it to the employees of the branch. This delegation of target is done on the basis of rank and department. Various strategies are used by the HoB to fulfill the target. Review of plan at the branch is done periodically e.g. twice a year by the bank and almost every month by the HoB.
Work at Prime bank Gulshan branch is allocated based on the department an employee is working at. They have various departmentalization like functional departmentalization Geographical departmentalization and product departmentalization. However the branch follows product departmentalization. Also at the branch has work specialization as well as employees working in broad range of tasks.
Prime bank gulshan branch has a clear chain of command and unity of command. It is only the manager who has authority and who delegates responsibility to the employees. At the branch although employees are encouraged to give opinions, however the final decision is taken solely by the HOB, so we can say that the employees are not empowered. The span of control at prime bank gulshan branch is narrow stretching from 1 to a maximum five.
Prime bank can be said to be a highly centralized bank as lower level employees opinions are not taken into consideration much. Prime bank is also highly formalized, however Gulshan branch is not. This is because some of the rules and regulations are not strictly implemented by the HoB. Also, dispite many management layers at the branch communication is effective. This is because any employee can speak to the manager directly in case of confusion. Plus weekly meetings are held and employees are kept updated via e-mails.
At prime bank goals are set by the top management and approved by the board. One of the strategic goals of Prime bank is to have a constant growth in its performance. In order to achieve this Prime Bank mainly focuses on increasing their profit annually.
The profit is set and approved by the top management (AMD, DMD and MD) and the board. However, first there are expert analysts - mostly in the finance department- who estimate an approximate profit that can be achieved by the bank. The estimated approximate profit is proposed to the top management. The MD considers the proposal and makes changes or increases the profit target if necessary. Then the MD presents this profit target to the board that approves the plan.
Once the goal -profit target- is set, the expert analysts of finance department determine how much deposits should be bought by the bank and how much credit should be given out to achieve the profit the bank is targeting. This also includes determining the amount of business that must be done by the other sectors, e.g. foreign trade department to contribute to the target profit. Basically they calculate the bank’s assets [loans] against liability [fixed deposits].
After the target is set the managing director...