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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited

Laldighirpar Branch Sylhet

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet! Chapter ": #ntroduction
Prelude: Organizational structure is the process of building a team of highly talented, professional, ambitious and enthusiastic individuals to achieve a set of goals and targets (Ashkenas, Ulrich, 1995 ! Organization structure is an organization"s frame#ork as e$pressed by its degree of comple$ity, formalization, and centralization (%avis, & ' (eckler, % 199) ! %esigning organizational structure needs e$tra*ordinary management skills, dedication and perseverance! +ffective organization structure and design relate to company performance by contributing to employee and customer satisfaction, productivity, and development of a favorable reputation of the firm in the industry!

O$%ective of the study


,he main ob-ective is to assess the organizational structure and design practices of .ommercial /anks in /angladesh #ith special reference to 0outheast /ank 1td! (0+/1 ! ,he specific ob-ectives of this report are as follo#s2 Specific O$%ective: 1! ,o represent the overall scenario of organizational structure and design practices of .ommercial /anks in /angladesh by taking consideration of 0outheast /ank 1td! 3! ,o identify various techni4ues and components of organization structure and design and their application those are practiced at ,he 0outheast /ank 1imited! 5! ,o identify the factors influencing the effectiveness of organizational structure and design in the 0+/1! 6! ,o assess the shortcomings of practicing organizational design and practices in 0outheast /ank 1imited, and provide some suggestions in this regard!

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Organization of the Study


,he aim of this paper is to identify various techni4ues and components of organization structure and design and their application that are practiced at ,he 0outheast /ank 1imited! ,his report paper is arranged as follo#s2 7art 1 provides details on ob-ectives of the study, scope of the study, methodologies that are used to conduct the study, and limitations that hinder the progress of the study! 7art 3 provides a general background of organization structure and design and its components such as unity of command, authority and responsibility, span of control, division of labor, departmentalization, mechanistic and organic organizations, technology and structure, relationships bet#een culture and structure! ,he background of 0outheast /ank 1imited, its structure and performance are provided in part 5! ,his section also describes vision ' mission of 0+/1, their core values ' strengths, and management structure of 0+/1! 8n part 6, the details of the actual organizational structure and design practices in 0outheast /ank 1imited are given! 0(O, analysis of 0outheast /ank 1imited are presented in part 5 by e$amining their e$ternal ' internal environment! ,he data collected through field survey is presented in part )! 7art 9 provides the details of the problems related to organizational structure and design that have been identified through field survey! :elevant suggestions to tackle the problems are presented in this section ;!

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Scope of the Study


! ,he scope of the studying organizational structure and design is as under2 o o o o o o o o o o o o o o 8mpact of organizational structure and design on effective performance! +mployee motivation! 1eadership! <o# to create effective teams and groups! 0tudy of different organizational structures! 8ndividual behavior, attitude and learning! %esign and development of effective organization! =ob design! 8mpact of culture on organizational structure! &anagement of change! &anagement of conflict and stress! Organizational development! ,ransactional analysis! >roup behavior, po#er and politics!

&ethodology of the study


0ekaran (3??5 clarifies research methodology as a regulatory frame#ork for the collection and evaluation of e$istent kno#ledge for the purpose of arriving at, and validating ne# kno#ledge! A methodology simply does not frame a study, but it identifies the research tools and strategies! .ertain methods and techni4ues #ere utilized to collect data for this report! ,he present study is based on empirical as #ell as theoretical analysis! All the information incorporated in this report has been collected both from the primary resources as #ell as from the secondary sources! ,he @7rimary sourcesA are as follo#s2 7rimary data #ere collected from the respondent by using 4uestionnaire through direct intervie#ing and personal communication! Bace*to*face conversation #ith the respective officers and staffs of the branch! 7ractical #ork e$perience in the different desks of the department!

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

,he @0econdary sourcesA are as follo#s2 Annual reports of the 0outheast /ank 1td! (ebsite of 0outheast /ank 1td! 0tatement of Affairs! 8nternet search!

Limitations of the study


A number of dra#backs appeared during preparing the report and hindered the total #ork process! ,he report may have some shortcomings due to some of the limitations mentioned belo#2 &ost of the information is confidential, so the bank officials #ere averse to provide the precise information! ,his report may be too narro# because 8 #orked only in one branch instead of different branches located in different location of /angladesh! :espondents do not al#ays provide the right data and also some data varies due to different situations! ,he data may not be verified because of short time period! ,ime #as a ma-or constraint in preparing the report! ,he duration of time allo#ed to complete the report #as too limited to cover every aspect of the given topic!

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Chapter ': Organizational Structure and Design: A (heoretical Overvie)


Organizations according to %aft (3??9 are considered social entities that are goal* directed, designed as deliberately structured and coordinated activity systems and linked to the e$ternal environment! ,he key element of an organization is not a building or a set of policies and proceduresC organizations are made up of people and their relationships #ith one another! An organization e$ists #hen people interact #ith one another to perform essential functions that help attain goals (%aft 3??9 ! Organization can be both formal and informal! According to <odge, Anthony and >ales (199) authorized structure in the organization is attributed as formal, #hen it is not sanctioned formally but e$ists for the practical needs is defined as informal! Organizational structure refers to ho# an organization is put together! 0tructure reflects some of the underlying #ays that people interact #ith one another in and across -obs or departments (0ims 3??3 ! Organizational structure refers to ho# -ob tasks are formally divided, groped, and coordinated! (hen organization becomes big it needs to maintain dynamism to bring more results through adaptation! ,he evolving nature of the organization is e$pressed through gradual changes in structure, strategy, people and culture! Alignment among all these gives ability to the enterprises to ad-ust #ith the changes (Daidoo, 3??3C Anthony and >ales, 199) ,ushman and OE:eilly (199) describe a pattern by #hich organizations evolve through change focused on structure and strategy, culture and people! ,hey claim organizations evolve through periods of incremental change! Fouzes and 7osner (19;9 found that successful organizations are those led by individuals #ho kno# their o#n strengths and #eakness as leadersC #ho learn ho# to inspire and motivate others to#ards a common purposeC #ho ac4uire ne# skills in building a cohesive and spirited teamC and #ho practice these skills more regularly than others!

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Organizational Structure
Organizational structure is the process of building a team of highly talented, professional, ambitious and enthusiastic individuals to achieve a set of goals and targets! +ffective employee management and business e$pansion are the main reasons for the necessity of a systematic organizational structure and design! ,he scope of the #ord "organization" is very #ide! An organization can be a company, a business or even a school or a college! A small business #ill re4uire a simple organizational structure, #hile large multinational companies or universities #ith several colleges under its control #ould need a large or comple$ organizational structure! (hether small or large, the first step in forming an organization is to set up a management team #hich #ill supervise the #orking of the entire organization! ,he management team includes the chairmanGpromoter of the organization, board of directors and non e$ecutive chairman! ,he mission and the vision of the organization should be defined by the management!

Defining Organization Structure * Design


,here are several definitions that must be understood as a precursor to understanding Organization structure and design! A! Organizing is the process of creating an organization"s structure! /! Organization structure is an organization"s frame#ork as e$pressed by its degree of comple$ity, formalization, and centralization! .! .omple$ity is defined as the amount of differentiation in an organization! %! Bormalization is the degree to #hich an organization relies on rules and procedures to direct the behavior of employees! +! .entralization is defined as the concentration of decision*making authority in upper management! %ecentralization is the handing do#n of decision*making authority to lo#er levels in an organization! B! Organization design is the development or changing of an organization"s structure!

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

+nity of command
+nity of command is defined as the principle that a subordinate should have one and only one superior to #hom he or she is directly responsible! 1! 8n the classical vie#, unity of command #as strictly adhered to! 8n the rare instance #hen the principle had to be violated, it #as clearly designated that there be an e$plicit separation of activities and a supervisor responsible for each! 3! 8n the contemporary vie#, the unity of command principle is vie#ed as logical #hen organizations are simple! <o#ever, if situations demand, the advantages of fle$ibility in structure that comes from violating the unity of command principle far balance the disadvantages!

Authority and responsi$ility


Authority is defined as the rights inherent in a managerial position to give orders and e$pect them to be obeyed! :esponsibility is defined as an obligation to perform assigned activities! 1! 8n the classical vie#, authority #as a ma-or doctrine! 8t #as vie#ed as the glue that held organizations together! Authority related to one"s position #ithin the organization! (hen authority #as delegated, e4ual responsibility had to be allocated! a! Authority and responsibility needed to be e4ual! b! :esponsibility cannot be delegated! c! ,he contradiction here #as ans#ered by recognizing t#o forms of responsibility2 operating responsibility and ultimate responsibility! d! ,here #ere also t#o forms of authority relationships2 line authority is the authority that entitles a manager to direct the #ork of a subordinate*it follo#s the chain of command #hich is the flo# of authority from the top to the bottom of an organizationC and staff authority #hich is authority that supports, assists, and advises holders of the authority! 3! 8n the contemporary vie#, #e look at the perspective that authority is only valid if subordinates are #illing to accept it and also at authority as only one element in the larger concept of po#er!

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

A! .hester /arnard presented the acceptance theory of authority #hich proposes that authority comes form the #illingness of subordinates to accept it! 1! (hat determines if subordinates accept ordersH 3! According to /arnard, the follo#ing conditions must be met! a! ,hey understand the order! b! ,hey feel the order is consistent #ith the purpose of the organization! c! ,he order doesn"t conflict #ith their personal beliefs! d! ,hey are able to perform the task as directed! /! 7o#er is defined as the capacity to influence decisions!

Span of control
Span of control is defined as the number of subordinates a manager can direct efficiently and effectively! 1! ,he classical vie# favored small spans, typically no more than si$, in order to maintain close control! 3! ,he contemporary vie# establishes that more and more organizations are increasing their spans of control! ,he span of control is increasingly being determined by looking at various contingency factors!

Division of la$or
Division of la$or describes splitting a -ob into a number of steps #ith each step being completed by a separate individual! ,he more that tasks are divided into separate -obs, the more those -obs are specialized and the narro#er the ranges of activities -ob incumbents are re4uired to perform! <o#ever, a continued increase in the division of labor may eventually become counterproductive! +mployees #ho perform only very routine and simple -obs that re4uire fe# skills may become bored and frustrated! ,he results may be lo# 4uality and lo# productivity, high turnover, and high absenteeism! (0ims 3??3 ! ;

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Departmentalization
Departmentalization is another area in #hich classical and contemporary vie#s differ! 1! 8n the classical vie#, activities in the organization had to be specialized and grouped into departments! ,he approach to grouping selected activities should be the one that best contributes to the attainment of the organization"s ob-ectives and goals! ,here #ere five approaches to departmentalizing! a! Bunctional departmentalization grouped activities by functions performed! b! 7roduct departmentalization grouped activities by product line! c! .ustomer departmentalization grouped activities on the basis of common customers! d! >eographic departmentalization grouped activities on the basis of territory! e! 7rocess departmentalization grouped activities on the basis of product or customer flo#! 3! 8n the contemporary vie#, most large organizations continue to use most or all of the classical departmental groupings! <o#ever, t#o trends can be noted! a! .ustomer departmentalization is becoming increasingly emphasized! b! :igid departmentalization is being complemented by the use of teams that cross over departmental lines cross*functional teams! c! ,he concept of cross*functional teams evolved from matri$ organizations #hich is an organizing approach that assigns specialists from different functional departments to #ork on one or more pro-ects that are led by a pro-ect manager! ! &echanistic and organic organizations ,#o diverse organizational forms can be described! 1! A mechanistic organization or bureaucracy is a structure that is high in comple$ity, formalization, and centralization! 3! An organic organization or adhocracy is a structure that is lo# in comple$ity, formalization, and centralization!

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

(echnology and structure


+very organization uses some form of technology to transform inputs into outputs! ,#o research studies on the relationship bet#een technology and structure have been significant! Joan Woodward found that three distinct technologies had increasing levels of comple$ity and sophistication! a! Unit production describes the production of items in units or small batches! b! &ass production describes large*batch manufacturing! c! 7rocess production describes continuous*process production! Charles Perrow looked at kno#ledge technology rather than manufacturing technology! <e proposed that technology be vie#ed from t#o dimensions! a! ,ask variability describes the number of e$ceptions individuals encounter in their #ork! b! 7roblem analyzability describes the type of search procedures employees follo# in responding to e$ceptions! ,he processes or methods that transform inputs into outputs differ by their degree of routine ness! 8n general, the more routine the technology, the more standardized the structure can be!

Culture and Structure


.ultural aspects of organizations are generally thought of as those that evolve in conversation and are in flu$, constantly changing! 8n most instances organizational culture defines #hat things mean, #hether theyEre valued as good or bad, right or #rong, and ho# things are to be done #hen ans#ers canEt be fi$ed by formal structure, policy, or procedure! (ithin larger structural goals, itEs the culture that carries organizational ob-ectives! ,he ob-ectives themselves are mostly #ithin the culture of the organization! ,he culture also promotes @operational ideologies,A the meanings for contingencies in the organizations daily action life!

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

,he culture moves the organization ahead in very practical #ays #hen it sets out the -obs that have to be done and the division of labor to do them!

Chapter ,: Overvie) of Southeast Bank Limited


0outheast /ank 1imited (0+/1 is the leading private sector bank in /angladesh offering full range of 7ersonal, .orporate, 8nternational ,rade, Boreign +$change, 1ease Binance and .apital &arket 0ervices! 0outheast /ank 1imited is the preferred choice in banking for friendly and personalized services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments, assuring e$cellence in /anking 0ervices! 0outheast /ank 1imited #as established in 1995 #ith a dream and a vision to become a pioneer banking institution of the country and contribute significantly to the gro#th of the national economy! ,he /ank #as established by leading business personalities and eminent industrialists of the country #ith stakes in various segments of the national economy! 0outheast /ank is run by a team of efficient professionals! ,hey create and generate an environment of trust and discipline that encourages and motivates everyone in the /ank to #ork together for achieving the ob-ectives of the /ank! ,he culture of maintaining congenial #ork environment in the /ank has further enabled the staff to benchmark themselves better against management e$pectations! A commitment to 4uality and e$cellence in service is the hallmark of their identity!

-ision of S.BL:
,o be a premier banking institution in /angladesh and contribute significantly to the national economy!

&ission of S.BL:
<igh 4uality financial services #ith state of the art technology Bast customer service 0ustainable gro#th strategy Bollo# ethical standards in business 0teady return on shareholdersE e4uity 8nnovative banking at a competitive price Attract and retain 4uality human resource .ommitment to .orporate 0ocial :esponsibility

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Commitment to Client2
0outheast /ank 1td is a customer friendly banking institution thriving fast in both earning and ability to stand out as a leading banking institution in /angladesh! ,he bank delivers unparalleled financial services #ith the touch of our heart to :etail, 0mall and &edium 0cale +nterprises (0&+s , .orporate, 8nstitutional, >overnmental and 8ndividual clients through the outlets of branches across the country! /ankEs business initiatives center on the emerging needs of the clients! /ankEs commitments to the clients are the follo#ing2 7rovide service #ith high degree of professionalism and use of modern technology! .reate long*term relationship based on mutual trust! :espond to customer needs #ith speed and accuracy! 0hare their values and beliefs! >ro# as customers gro#! 7rovide products and service at competitive pricing! +nsure safety and security of customersE valuable in trust #ith us!

CO/. -AL+.S
8ntegrity Bairness <armony .ourtesy .ommitment 8nsight and 0pirit +nthusiasm for #ork /usiness +thics

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

CO/. S(/.01(2S O3 S.BL


,ransparent and 4uick decision making +fficient team of performers 0atisfied customers 8nternal control 0killed risk management %iversification

&A0A1.&.0( S(/+C(+/. O3 SO+(2.AS( BA04


0outheast /ank is blessed #ith a #ell*designed management structure #ith clearly defined responsibilities, delegation of authority and proper accountability! :esultantly, there is transparency in decision*making and management activities! ,he bank has appropriate organizational structure manned #ith 4ualified professionals for proper planning, e$ecuting, controlling and monitoring functions! ,he .hairman is the <ead of the /oard of %irectors! ,here is one &anaging %irector, #ho is also the 7resident, mainly controls and supervises the ma-or divisions of the bank! ,#o %eputy &anaging %irector reports to &% ' Bour +$ecutive Iice 7residents (+I7Es and one 0enior +$ecutive Iice 7resident (0+I7 report to the %eputy &anaging %irector! +$ecutive Iice 7residents control the credit! 0enior +$ecutive Iice 7resident controls the human resource and marketing divisions! Bour Iice 7residents #ork under +$ecutive Iice 7residents! ,he organization structure of 0+/1 1imited is 4uite horizontal #here each person reports to only one person, #hich refers to a very group*#orking environment! Bor e$ample, each officer reports to the BAI7 or AI7 or BI7 or I7 or 0I7 or +I7! A I7 or BI7 or I7 or 0I7 or +I7 reports to the 0+I7C 0+I7 reports to the %eputy &anaging %irector and he reports to the &anaging %irector!

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Organizational 2ierarchy at S.BL


7resident ' &anaging %irector %eputy &anaging %irector 0enior +$ecutive Iice 7resident +$ecutive Iice 7resident 0enior Iice 7resident Iice 7resident Birst Iice 7resident 0enior Assistant Iice 7resident Assistant Iice 7resident 0enior 7rincipal Officer 7rincipal Officer +$ecutive Officer 0enior Officer Officer =unior Officer Assistant Officer Officer (.omputer .ash Officer

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Chapter56: Organization Design and Practices in South5east Bank Limited


Learning and Development:
0+/1 recognizes that it is essential that they have the best people e4uipped #ith the right skills and kno#ledge to perform their roles to the highest standards! ,hey #ent talented professionals,#ho seek self development opportunities including continuing professional development! 8n return the /ank offers e$cellent training and development! ,hey focus development on #here they believe that they #ill get the greatest return, by developing employees strengths! Orientation: +very staff member -oining 0+/1 has to attend a 3*day comprehensive orientation to get a feel about the /ank and its business! ,his orientation program provides a good chance to meet #ith seniors ' colleagues and to build up the team spirit! Product (raining: 7roduct training is provided e!g! cash product training, operational training etc!to help the related staff to learn more about the products that the /ank is providing! Skill (raining: ,he bank provides a lot of skill related training e!g! credit #orkshop, sales ' negotiation skills, pro-ect management, etc! to help staff enhance their skill in particular aspects! On5%o$ (raining: 0taff members are continuously involved in the learning process in the form of on*-ob training! ,hus, a lot of on*-ob training opportunities and -ob rotation to increase staffEs e$posure are provided! Self5learning: ,he bank sends out .%s and books to staff for them to study on trade kno#ledge, credit kno#ledge, etc! and staff #ill decide #hen heGshe #ill attend the ,rade 0kill Assessment (,0A and .redit 0kill Assessment (.0A ! 15

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

&anagement Development (raining: 8n this training program, the employees are given strategic perspectives and business goals management skillsC people management, net#orking and customer focus abilities to better understand and manage their -obs! Specific Competency (raining: 0pecific .ompetence ,raining is to ensure that the staff e$cels in product kno#ledge, regulatory and uni4ue techni4ues needed for the particular position!

Compensation and Benefits in S.BL:


At 0+/1, the compensation package provided to the employees can be divided into t#o categories! One comprises of the sales personnel #ho are compensated on their ability to meet their targets! 0econd is compensating the e$ecutives #ho are responsible for the overall functions of the /ank! Compensating the Sales Force: ,he key to a successful sales compensation program is achieved in three steps2 1! .learly defining sales goals that are realistic but challenging 3! ,racking and measuring performance against goals 5! :e#arding achievement #ith competitive and motivational compensation 0ales compensation packages typically comprise 1 or more of the follo#ing components2 1! /ase 0alary! 3! 7eriodic incentives tied to short*term goals! 5! Annual 8ncentives tied to longer*term sales activities! 6! .ommission*based incentives! 5! 7er4uisites to facilitate sales efforts! Executive Compensation: ,he #ay the /ank pays its top management plays an important role in motivating the critical performance needed to run it effectively! /ase salary is not the only component of the typical e$ecutiveEs compensation package! +$ecutive compensation packages typically comprise the follo#ing components2 1! /ase 0alary 3! Annual 8ncentives

1)

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

5! 6! 5! )! 9!

1ong*,erm .apital Accumulation %eferred .ompensation Arrangements 0upplement /enefits and 7er4uisites 0pecial 0everance and :etirement Arrangements +mployment and .hange of .ontrol Agreements!

/e)ard * /ecognition:
0+/1 aims to re#ard the talented and high performing employees competitively! ,hey regularly conduct salary surveys to ensure that the re#ard package remains competitive in the market place! ,hey encourage continuous discussionC encourage regular revie# of employees performance and development! ,his provides feedback to the staff about ho# they are doing! ,he management links this to financial and non* financial recognition! 8n addition to this, the bank provides various incentives in the form of bonuses to encourage the employees and motivate them to continue #ith their high performance! ,hese include2 1! 0pot A#ard J :s! 5??? as cash prize 3! 0urprise A#ard 5! /est 7erformer A#ard 6! 0ervice Kuality A#ard 5! L+0( Lear of +$cellent 0ervices A#ard!

Career 1ro)th:
0+/1 offers great platform to build an employeeEs carrer #ith learning and career gro#th matched #ith compatible compensation and benefits in a en-oyable, enabling, and ethical #orking condition! 8t offers a #ide array of careers for individuals of various educational and e$perience backgrounds! At 0+/1, every employee,starting from =unior Officer is evaluateed for promotion after 5 years! Bor the lo#er level posts #hich are belo# -unior officer, this duration is 3 years!

7o$ Analysis

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

=ob analysis is the process for determining the duties and skill re4uirement of a -ob and the kind of person #ho should be hired for it! At 0+/1, -ob analysis is conducted #hen the organization #ants to open a ne# branch,setting up ne# technology or ne# services etc! the purpose of -ob analysis is2 1! ,o collect information about the different level of activities to be performed! 3! ,o collect the data about education, skills, e$perience, personal 4ualities! 5! ,o select the suitable person for the right -ob!

7o$ Analysis for (op level &anagement ,he -ob analysis for top management is done directly by the <ead office and the <ead Office uses internal as #ell as e$ternal sources of recruitment to fill the vavcant -ob accordingly! Bollo#ing is one of the e$amples of -ob description and -ob satisfaction of the managerial post of the /ank! &anagerial =ob %escription =ob ,itle2 /ranch &anager =ob summary2 7romotes banking in the community and manages branch operations in coordination #ith the <ead Office! ,asks2 1! <ighlight the service of the bank in the community to attract people for opening their accounts to increase the bankEs assets! 3! ,o operate the branch in such a #ay that the cost of operation is minimized and the services are ma$imized! 5! to check and issue loans on merit for the increase of bank revenues! &anagerial =ob 0pecification +$perience2 &inimum 1? years of #ork e$perience in financial institutions #ith minimum t#o years as Assistant &anagerG &anager Operation! Kualification2 &/A or &0 in relevant field! 7o$ Analysis for &iddle Staff

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

8f ther is any vacant post at middle level staff #hich includes operational manager and head of all concerned departmentE then the /ranch &anager #ill give re4usition to the <ead Office by giving -ob description and specification! 7o$ Analysis for Lo)er Staff Bor lo#er staff, there is no prescribed -ob description or specification! ,he Operational &anager #ho is the controlling authority of the lo#er staff has the authrity to change their -ob relatd duties #ith the consultation of supervisor!

7o$ Design:
=ob design of 0+/1 comprises of si$ components! ,hese are2 Labor Specialization: ,he /ank aims at hiring specialized people and their recruiting criteria are based on their kno#ledge, e$pertise, past #orking e$perience and their e$posure to the professional fields! +mployee #ages are set in accordance #ith the aforesaid recruitment criteria and most of them are intent #ith #hat they earn at 0+/1! Job Expansion: ,he /ank improves the 4uality of #ork life by assigning various tasks to the employees so as to e4uip them #ith the different services offered by the /ank! =ob e$pansion includes -ob enlargement, rotation, enrichment and empo#erment! Ps chological Components: Bor enhancing the skills and abilities of the #ork force, the psychological components of -ob design are also catered for by 0+/1! ,hese psychological components focus on ho# to design -obs that meet some minimum psychological re4uirements of the employees! ,hese components are utilized in accordance #ith .ore =ob .haracteristics, #hich suggests that the -obs designated to the various employees in the bank include the follo#ing five aspects2 1! 0kill Iariety 3! =ob 8dentity 5! =ob 0ignificance 6! Autonomy 5! Beedback Sel!"#irected $eams: A self*directed team is a group of empo#ered individuals #orking together to reach a common goal! At 0+/1, these teams are found in almost every department to achieve the set targets! ,hese teams are an integral part of the personal loans , sales and credit cards

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

department #here they are established to achieve both, the short*term as #ell as long term ob-ectives! %otivation and &ncentive S stems: 0ometimes the psychological components are not enough for motivating the employees! 8n this case, monetary incentives play a vital role for increasing the commitment of the employees to#ard their -obs and in return enabling them to have -ob satisfaction! ,hese monetary incentives and re#ards are given in various forms to the employees #ho act as a strong motivational factor! ,hese could be given as2 1! 0pot A#ard J :s! 5??? as cash prize 3! 0urprise A#ard 5! /est 7erformance A#ard 6! 0ervice Kuality A#ard Ergonomics: +rgonomics is the study of #ork! 8t deals #ith building a good interface bet#een the man and the machines ! Feeping this in vie#, the /ank has been designed in such a #ay so that the employees are comfortable #orking there!

Discipline
%iscipline is the set of rules and regulations for people to follo# usually in organizations! 8n 0+/1, there are set of rules and regulations #hich are very important for every employee to follo#! ,hese rules and regulations are2 1! 8n 0+/1, minimum ;5M attendance is a must! ,he bank does not compromise on attendance! ,here are no e$cuses for formal absentees! 8f the attendance record of any employee is found belo# ;5M, then strict action is taken against himGher! 3! ,he #orking hour of 0+/1 is from 1? am to ) pm! 8f any person is late from 1? am then action is taken against him! 5! 8f anybody misuses the property of 0+/1, then organization takes strict action against him! 6! +very employee should come in proper dress to the office! 5! &isbehavior #ith customer is not allo#ed! )! 0moking is prohibited inside the organization! ,he rule is applied to all employees aa #ell as to customers! 9! Anything #hich harms the image and re#putation of the organization is strictly prohibited!

.mplyee relation
+mployers and employees each have their o#n sets of needs and values, and sucessful relationship bet#een these t#o sides re4uires that some sort of balance be struck! ,his balance often takes the form of a psychological contract, an understood agreement bet#een employer and emplyees that defines the #ork relationship! 3?

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

8n vie# of the above, the <: department of 0+/1 is trying its best to ensure superior employee relation through providing health and safety benefit in the form of better* 4uality #orking condition! 8n addition, top*level personnel at the branch are re4uired by the organization to provide every kind of support for employee gro#th and mediate every dispute, if occurs, through negotiation, not by mere ordering! 8uality of 9ork Life: ,his means a -ob that not only is reasonably safe but also for #hich the pay is e4uitable! At 0+/1 every employee in confident of his -ob security and has the assurance that he #ould remain on the -ob for the agreed period! 8n addition to this, the #orkload is e4uitable divided bet#een the employees and therefore, they #ork #ith peace of mind and tran4uility, resulting in the overall enhanced performance of the employees! &utual Commitment: /oth the employees and the management try to meet the common ob-ectives! ,hey coordinate their activities to ensure that they are heading to#ards achieving the established goals and meeting the set targets #ithin the specified time frame! &utual trust: At 0+/1 prevails an environment of confidence and mutual trust! ,he documented employment policies are honestly implemented to the satisfaction of both management and employees!

31

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Chapter :: S9O( Analysis of Southeast Bank Limited


0(O, Analysis is an important tool for evaluating the companyEs 0trengths,(eaknesses, Opportunities and ,hreats! 8t helps the organization to identify ho# to evaluate its performance and scan the macro environment, #hich in turn #ould help the organization to navigate in the turbulent ocean of competition!

Strengths
Company /eputation 0+/1 has already established a favorable reputation in the banking industry of the country particularly among the ne# comers! (ith in a period of fifteen years, 0+/1 has already established a firm footing in the banking sector having tremendous gro#th in the profits and deposits! All these have leaded them to earn a reputation in the banking field! Sponsors: 0+/1 has been founded by a group of prominent entrepreneur of the country!+ach of them belongs to large industrial conglomerate of the country! (op management: ,he top management officials have #orked in reputed banksC and their years of banking e$perience, skill, and e$pertise #ill continue to contribute to#ards further e$pansion of the bank! At 0+/1, the top management is the driving force and the think tank of the organization #here policies are crafted and often cascaded do#n! &arket share profita$ility2 0+/1 has established a firm footing among the ne# comers in the banking industry of /angladesh! ,hey have already achieved a high gro#th rate accompanied by an impressive profit gro#th rate in 3?1?! ,he number of deposits and the loans ' advances are also increasing rapidly!

33

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

3acilities and .;uipment: 0+/1 has ade4uate physical facilities and e4uipmentEs to provide better service to the customers! ,he bank has computerized banking operations under the soft#are called /ank Ultimus! .ounting machines in the teller counters have been installed for speedy service at the cash counters! .omputerized statements for the customers as #ell as for the internal use of the banks are also available! All the branches of 0+/1 are e4uipped #ith tele$ or fa$ facilities!

#nteractive Corporate Culture2 0+/1 has an interactive corporate culture! Unlike other local organization, 0+/1Es #orking environment is very friendly, interactive and informal! ,here are no hidden barriers or boundaries #hile interactions among the superior or the subordinate! ,he environment is also lively and since the nature of the banking -ob itself is monotonous and routine, 0+/1Es lively #ork environment boosts up the sprit and motivation of the employees! (eam )ork at mid level and lo)er level: At 0+/1Es mid level and lo#er level management, there are often team #orks! &any -obs are performed in groups of t#o or three people to reduce the burden of the #orkload and enhance the process of completion of the -ob! 7eople are eager to help each other and people in general are devoted to #ork! /elatively less intervention from the Board of Directors compared to other $anks: At 0+/1, the scenario is relatively better in terms of intervention of the board in management practices compared to other banks! ,hough, in a private bank there are often undue interventions from the board regarding the processing of credit facilities! <o#ever, at 0+/1 the scenario is some#hat better and has fe#er interventions from the board in the management practices!

Weaknesses:
Advertising and Promotion: ,his is a ma-or set back for 0+/1 and one of its #eakest areas! 0+/1 does not pursue an aggressive marketing campaign! 8t does not e$pose itself to the general public and are not in the lime light unlike other banks! As a result people are not a#are of the e$istence of the services of the bank! Poor /ecruitment:

35

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

%uring its inception, 0+/1 has not recruited competent people in filling up its lo#er and some mid level positions! Other than the recruitment of the 7robationary Officers and &anagement ,rainees, people #ho #ere recruited from banks for the lo#er management are not competent enough to provide the best output! As a result the services of the bank are being -eopardized! /eference Appointment: ,his is one of the set backs of 0+/1 and #ill have a long*term repercussion on the 4uality of <uman :esource! &any people have been recruited under the reference of the recommendation of the /oard of %irectors, #hich has become a chronic disease in the 7./Es! As a result, people having inade4uate 4ualifications and e$perience have been recruited only because of their ties #ith the sponsors! ,he practice must be stopped considering the future of the bank and it is very important to have a component #orkforce! Poor Service 8uality: ,his has become a ma-or problem for the bank! ,he customer service 4uality in all the departments and in most of the branches is very lo#! ,he 4uality of the service at 0+/1 is lo#er than those in the contemporary banks such as %haka /ank, 7rime or %utch* /angla! ,he service 4uality is #orst in the >eneral /anking %ivision, as there are several system errors! Lo) remuneration package: ,he remuneration package for the entry and the mid*level management is considerably lo#! ,he compensation package for 0+/1 entry*level positions is even lo#er than the contemporary banks! Under the e$isting lo# pay structure, it #ill be very difficult to attract and retain &/AEs at 0+/1! 0ince foreign banks pay double that of 0+/1, it #ill be very difficult to attract competent &/AEs in future for 0+/1! ,herefore 0+/1 #ill fail to attract competent peoples and retain them if they do not revise their pay structure! 2uman /esources Department2 &ost of the <: practices and policies are not being follo#ed or implemented here! ,he annual performance appraisal report of the employees has not been scrutinized yet and employees are not getting the re4uired feedback! ,here is also no prescribed set of promotion policies! ,he bank is still practicing the traditional method #here solely the e$perience or length of service is considered as the criteria for promotion! Centralized Decision5&aking: At 0+/1 corporate decisions the .+O, %&% and other top management officials craft policies and strategies and then they are cascaded do#n! At times the /oard of %irectors is also engaged in making corporate decisions! As a result of this practice there is only a top do#n flo# of communication at 0+/1! ,he scope for bottom up communication is very limited and many bright ideas or opinions are not being able to climb up the ladder to the top management! 8deas remain their forever!

36

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

3e) staff meetings: 8t has been observed that there are very fe# staff meetings and departmental meetings at the branch level! %uring the last four months there #as only one staff meeting and one departmental meeting! ,his is not a good management practice! Limitations of the Bank +ltimus: /ank Ultimus is not modern and comprehensive banking soft#are! 8t does not provide ade4uate support in providing the services! 8t is not user friendly and management should consider replacing the /ank Ultimus system by a more comprehensive banking system!

Opportunities
Diversification: 0+/1 can pursue a diversification strategy in e$panding its current line of business! ,he management can consider options of starting merchant banking of diversify in to leasing and insurance! /y e$panding their business portfolio, 0+/1 can reduce their business risk! Product line proliferation: ,here are several opportunities for 0+/1 to e$pand its product line! 8n this competitive environment 0+/1 must e$pand its product line to enhance its 0ustainable .ompetitive Advantage (0.A ! As a part of its product line proliferation, 0+/1 can introduce the follo#ing products2 A,&! .redit .ards and ,ele banking! On*line banking! 8ntroduction of 0+/1Es o#n savings scheme!

#ntroduction of corporate scheme: 8n this #ay, the bank #ill be able to attract a lot of corporate clients and in the long run the bank #ould be benefited by getting business for the bank from the corporate clients in terms of 1G., 1oans and advances etc!

Threats
&ultinational Banks ,he emergence of the multinational banks and their rapid e$pansion poses a potential threat to the ne# 7./Es! &oreover, the already e$isting foreign bank such as 0tandard .hartered, <0/. are no# pursuing an aggressive branch e$pansion strategy! ,hese

35

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

banks are establishing more branches country#ide and are e$pected to get into for operation soon! 0ince the foreign banks have tremendous financial strength, it #ill pose a threat to local banks to a certain e$tent in terms of grabbing the lucrative clients! +pcoming Banks: ,he upcoming private local banks can also pose a threat to the e$isting 7./E0! 8t is e$pected that in the ne$t fe# years more local private banks may emerge! 8f that happens the intensity of competition #ill rise further and banks #ill have to develop strategies to complete against an on slaughter of foreign banks! Contemporary Banks: ,he contemporary banks of 0+/1 such as %haka /ank, 7rime /ank and %utch* /angla are its ma-or rivals! 7rime /ank and others are carrying out aggressive campaign to attract lucrative corporate clients as #ell as big time depositors! 0+/1 should remain vigilant about the steps take by these banks, as these #ill in turn affect 0+/1 strategies!

Chapter <: Data Presentation


A total of 16 employees being intervie#ed for the purpose of completing this paper #hich is in no #ay sufficient to dra# a final conclusion upon the sub-ect matter! <o#ever, because of time duration, budgetary constraints, and most importantly, refusal of the employees to share personal opinion about hisGher -ob made the progress of the report more difficult!

.mployee 7o$ Satisfaction in South5.ast Bank Limited

3)

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

6 5 4 3 2 1 0 Highly Satisfied Satisfied Average Lowly Satisfied Not Satisfied 2 2 3 Job Satisfactio 2 5

3igure: .mployee 7o$ Satisfaction in South5.ast Bank Limited &ost of the employees being intervie#ed are relatively satisfied #ith their #ork, #hile a good number of them are dissatisfied #ith their #ork! ,#o employees are found to be highly satisfied #ith their #ork! ,hey are from the top level of management! ,hose #ho gave the response as @Dot 0atisfiedA are from .ash %epartment of the /ank!

Salary Structure of South5.ast Bank Limited

! 6 5 4 3 2 1 0

4 3 Salary Str&ct&re

"#celle t

Acce$table

%elow Average

39

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Bigure2 0alary 0tructure of 0outh*+ast /ank 1imited

:egarding salary structure, employees from .ash %epartment are found to be dissatisfied #ith their salary structure and they considered it as @/elo# AverageA! ,hey thought they are paid less than they #ork! (hile other employees are found to be very much satisfied #ith the current salary structure of the /ank!

Bank S)itching

3;

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

6'

2!'

(ill Switch (ill ot Switch )o *t + ow

6!'

Bigure2 /ank 0#itching (8n ,erms of 7ercentage

0+/1 found to be able to retain employees as indicated by the employees intervie#ed #hich sho#s that, )9M of the employees #ill remain at 0+/1 despite having opportunity of s#itching to other banks! (hile 39M of them opined that, they #ill s#itch if they get suitable opportunity in other banks!

Branch &anagement

39

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

10 6 4 2 0 Highly Satisfied 2

%ra ch .a age/e t 2 1 Not Satisfied

Satisfied

Lowly Satisfied

Bigure2 /ranch &anagement

:egarding satisfaction level #ith /ranch &anagement, almost every employee are found to 4uite satisfied, #ith only 1 person giving e$treme negative response as @Dot 0atisfiedA!

Participation in /elated Decisions

5?

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

No 0artici$a ts 0artici$a ts 0

33

0artici$ates i 1elated )ecisio s

6! 50 100

3igure: Participation in /elated Decisions &ost of the employees ()9M are allo#ed in participating critical decisions like operational procedure, 4uality control and other decisions! ,hey are being consulted every time before making any crucial decisions! (hile others are only instructed to obey the decisions, they have no saying in making decisions!

Accounta$ility of .mployees

51

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Acco& tability

100'

Bigure2 Accountability of +mployees +mployees at 0+/1 are found to be 1??M accountable in terms of performing their defined tasks and ready to do any tasks as re4uired! ,hey are accountable in terms of maintaining office time, acceptance and processing of information

Opportunities for Promotion

53

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

50 40 30 20 10 0

50

33 2$$ort& ities for 0ro/ otio

1!

Stro gly Agree

Agree

)isagree

Bigure2 Opportunities for 7romotion &ost of the employees believe that they have the opportunities for promotion! ,hey believe that, promotion system is based on a combination of seniority and performance! (hile a fe# numbers of them believe that, the people closest to the ,op*level &anagement only get promotionC and performance or seniority is not a matter at all!

0on53inancial #ncentives

55

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

2-' 0aid Not 0aid !2'

Bigure2 Don*Binancial 8ncentives /esides the monetary incentives, there are certain non*financial incentives, #hich can satisfy the ego and self* actualization needs of employees! ,he incentives, #hich cannot be measured in terms of money, are under the category of @Don* monetary incentivesA! Don* financial incentives can be of the follo#ing types2* 0ecurity of service, 7raise or recognition, 0uggestion scheme, =ob enrichment, 7romotion opportunities! Only a fe# number of employees are paid non*financial incentives! ,hey are from the ,op level of management! (hile the others donEt have such benefits!

7o$ Security

56

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

50 40 30 20 10 0 1636! 33333

50

Job Sec&rity

Agree

)isagree

Stro gly )isagree

Bigure2 =ob 0ecurity ,he importance of understanding -ob securityEs role has increased #ith the emphasis over the past decade on employee reactions to ma-or organizational change! =ob security or insecurity reflects the degree to #hich employees perceive their -ob to be threatened and feel po#erless to do anything about it (Finnunen, &auno, Datti, ' <apponenC 3??? ! 8n this multi dimensional definition, -ob insecurity is caused not only by the threat of -ob loss but also by the loss of any dimension of the -ob! &ost of the employees believe that, their -ob is not secured as it is related #ith monetary transactions! (hile, only a fe# numbers of them believe that the have the -ob security!

Chapter =: Pro$lems of Practicing Organization Structure * Design in S.BL


55

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Pro$lems )ith Learning * Development 1! ,he training programmes, specially the Boundation training program, are very much based on theoretical concept! A person entering 0+/1 as a ne# entrant generally does not have prior idea about banking and find the training program #orthless and boring! 8n addition, traditional one #ay delivery of lecture by the course instructors is another problem that discourages employees to learn anything! 3! 8n #orking environment, #hen a ne# entrant is assigned under an e$perienced officer, the senior officer sometimes does not help the ne# entrant in learning anything out of the fear that the ne# employee may become hisGher direct substitute! Pro$lems )ith /e)ard * /ecognition 1! Iarious types of a#ards such as 0pot A#ard, 0urprise A#ard etc, though e$ist in the books of <: of 0+/1, are found to be absent and there are even instances #here some of the employees even do not kno# about their e$istence! 3! 0ome other form of a#ards such as /est 7erformer A#ard or 0ervice Kuality A#ard, as the employee claimed, are not provided in a transparent manner and dominated by the employees of %haka city each year! Pro$lems )ith Career 1ro)th 1ike other private sector banks of /angladesh, 0outheast /ank 1imited provides little opportunities for employees entering the organization as .ash Officer! ,here is a saying #ithin 0+/1 that, @8f you start dealing #ith cash, you #ill deal #ith the cash foreverA! ,he cash officers are generally not given opportunity to become engaged in >eneral /anking and often, as the .ash Officers claim, are given lo#er benefits and compensation related to the officers in >eneral /anking! A person entering 0+/1 as ,rainee .ash Officer, generally can progress up to 0enior Officer as found in the :egion under study! Pro$lems )ith 7o$ Analysis 1o#er level staffs are often transferred from one department to another department by middle level staff (Operational &anager #ithout stating any reason despite performing #ell in the earlier department!

7roblems #ith =ob Analysis can be depicted by the follo#ing figure2

5)

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

0ource2 http2GG###!managementstudyguide!comGorganizingNfunction!htm Pro$lems )ith 7o$ Design 1! ,hough the top level e$ecutives emphasizes on team #ork, but at the branch level these teams are found almost non*e$istent! /ranch level employees are found to be under a team only in case of achieving deposit target #here 5*5 employees are given a specific target to achieve! 3! Iarious types of a#ards such as 0pot A#ard, 0urprise A#ard etc, though e$ist in the books of <: of 0+/1, are found to be absent and there are even instances #here some of the employees even do not kno# about their e$istence! Pro$lems )ith Discipline * 1rievance 1! &ost of the employees are una#are about their rights as the organization does not supply any information through proper channel about the situation #hen they can report a grievance! 3! 0ometimes secrecy is not maintained by the :egional &anager! 5! ,he employees are often not interested in reporting #hen the person #ho is the cause of the problem is in a higher position! 6! %isciplinary actions are often delayed too much and as the saying goes, @=ustice delayed, -ustice denied!A

59

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Chapter >: Suggestions for #mprovement of Organization Structure * Design in S.BL


Suggestion for #mprovement of Learning * Development Procedure
1! 8n addition to the theoretical teaching, more practical teaching should be implemented in Boundation and Advanced ,raining 7rogram! 3! 7roper monitoring system should be implemented to monitor the attitude and behavior of the supervisor under #hom a ne# entrant is being posted!

Suggestion for #mprovement of /e)ard * /ecognition Procedure


1! <uman :esource %epartment should look into the matter of preferential treatment in handling re#ards, as claimed by some of the employees! 3! Appropriate system should be there to ensure that re#ard is given to the real performers!

Suggestion for #mprovement of Discipline * 1rievance System


1! :ules and regulations should be clearly stated! Bor discipline to be installed in employees there should be clear rules and regulations that stipulates #hat is e$pected of each employee and #hat is not e$pected of them! 3! ,he rules and regulations should be constantly updated and revie#ed! 5! ,here should no discrimination in enforcing rules and regulations! ,o make sure that, there is discipline in the organization and there should be a general rule for every defaulter! 6! ,here should be proper communication of the rules concerning discipline of the firm!

5;

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Some Other Suggestions


,he first step in designing organizational structure involves e$plaining each and every employee, #hat his role #ill be! +mployees #ill not be able to deliver their best, unless they are completely a#are of their #ork and e$pectations! Another important thing is a system of accurate evaluation of the employee performance #ithout being partial or un-ust to any employee! Bavoring some employee over the other #ithout authentic reasons can be harmful for the company"s future! ,here should not be concentration of po#er in the hands of a fe# e$ecutives, as this may lead to grouping and reduced 4uality output! 0atisfying the needs of the employees is of prime importance as this retains the faith of the employees on the employers! ,he basic idea is to promote people #ith good leadership skills! 7resence of employee grievance cell under the supervision of the human resource department can assure the employees of their security in terms of payment and position in the company! ,he rules and regulations set by the management should be follo#ed by all the employees of all the departments! <o#ever, the departmental heads should have the freedom of taking certain decisions on their o#n and interference of people #ho are in no #ay connected to a particular decision making process should be strictly prohibited! ,ransparency in promotions is the highlight of a good organizational structure and design! 7romotions and increments should be made strictly on the basis of merit to keep the employee faith in the organization alive!

59

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

Conclusion
,his paper has been prepared on the topic @Organizational 0tructure and %esign in the 7rivate 0ector /anking .ompanies in /angladesh2 A .ase 0tudy on the 7ractices of 0outheast /ank 1imited, 1aldigirpar /ranch, 0ylhet!A An effective organizational structure shall facilitate #orking relationships bet#een various entities in the organization and may improve the #orking efficiency #ithin the organizational units! Organization shall retain a set order and control to enable monitoring the processes! Organization shall support command for coping #ith a mi$ of orders and a change of conditions #hile performing #ork! Organization shall allo# for application of individual skills to enable high fle$ibility and apply creativity! At 0+/1 every employee in confident of his -ob security and has the assurance that he #ould remain on the -ob for the agreed period! 8n addition to this, the #orkload is e4uitable divided bet#een the employees and therefore, they #ork #ith peace of mind and tran4uility , resulting in the overall enhanced performance of the employees! At 0+/1 prevails an environment of confidence and mutual trust! ,he documented employment policies are honestly implemented to the satisfaction of both management and employees! ,he <: department of 0+/1 is trying its best to ensure superior employee relation through providing health and safety benefit in the form of better*4uality #orking condition! 8n addition, top*level personnel at the branch are re4uired by the organization to provide every kind of support for employee gro#th and mediate every dispute, if occurs, through negotiation, not by mere ordering! 8nspite of having considerable strengths and opportunities, 0outheast bank limited faces various threats from its contemporaty counterparts and it have its o#n set of limitations! 8n this paper, 8 am trying to find the solutions that #ould help 0+/1 to compete more intensely in the market!

6?

Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

/eferences
Anthony, 7 1996, %anaging culture, Open University 7ress, /uckingham, U0! Ashkenas, :, Ulrich, %, =ick, , ' Ferr, 0 1995, $he 'oundar less organization: brea(ing the chains o! organizational structure, =ossey*/ass, 0an Brancisco, .A! %aft, : 3??9, OOrganization ,heory and %esignE, 0outh*(estern, .engage 1earning! %avis, & ' (eckler, % 199), ) practical guide to organization design, .risp 7ublications, &enlo 7ark, .A! <andy, . 199), *nderstanding organizations, 6th ed, 7enguin, <armonds#orth! Finnunen, Ulla, &auno, 0ai-a, Datti, =ouko, ' <apponen, &ika, (3??? ! Organizational antecedents and outcomes of -ob security2 A longitudinal study in three organizations in Binland! Journal o! +rganizational 'ehavior, Iol! 31, Do! 6, pp! 665*59! Fouzes, =ames &! ' 7osner, /arry P! (19;9 ! $he Leadership Challenge, -ow to .et Extra"ordinar $hings #one in +rganizations/ 0an Brancisco2 =ossey*/ass 7ublishers! Daidoo, % 3??3, 0+rganizational culture and subculture in!luences on the implementation and outcomes o! aspects o! internal 1ualit assurance initiatives2, conference paper, 7althe, = and Fossek, + 3??5, 0Subcultures and emplo ment modes: $ranslating -3 strateg into practice2, =ournal of Organizational .hange &anagement, vol!1), no!5, pp!3;9Q5?;! 0ims, : 3??3, O&anaging Organizational /ehaviorE, Kuorum /ooks, (estport .,! 0mall#ood, D and 7ano#yk, & 3??5, 0'uilding capabilities2, +$ecutive +$cellence, vol!33, iss!1, p!19Q1;, vie#ed 31G5G3??5! ,ushman, &1 ' OE:eilly, .A 199), 0)mbidextrous organizations: managing evolutionar and revolutionar change2, Cali!ornia %anagement 3eview, vol! 5;, no! 6, pp! ;*5?! http2GG###!ecu!edu!auGconferencesGherdsaGmainGpapersGnonrefGpdfG%naidoo!pdf, vie#ed 1G;G3??5! http2GGbusiness!clayton!eduGl-ourdanGmgmt51?1icGrobbin1?!t$t http2GGivythesis!typepad!comGtermNpaperNtopicsG3?1?G?9Gliterature*revie#*on* organizational*structure*and*design!html

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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet

http2GG###!articlesbase!comGorganizational*articlesGorganizational*structure*of*the* multinational*companies*153;5;6!htmlRi$zz1&9?oPzmv

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