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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! 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$tra*ordinary management skills, dedication and perseverance! +ffective organization structure and design relate to company performance by contributing to employee and customer satisfaction, productivity, and development of a favorable reputation of the firm in the industry!
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
,he @0econdary sourcesA are as follo#s2 Annual reports of the 0outheast /ank 1td! (ebsite of 0outheast /ank 1td! 0tatement of Affairs! 8nternet search!
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
Organizational Structure
Organizational structure is the process of building a team of highly talented, professional, ambitious and enthusiastic individuals to achieve a set of goals and targets! +ffective employee management and business e$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$ecutive chairman! ,he mission and the vision of the organization should be defined by the management!
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
+nity of command
+nity of command is defined as the principle that a subordinate should have one and only one superior to #hom he or she is directly responsible! 1! 8n the classical vie#, unity of command #as strictly adhered to! 8n the rare instance #hen the principle had to be violated, it #as clearly designated that there be an e$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$ibility in structure that comes from violating the unity of command principle far balance the disadvantages!
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
A! .hester /arnard presented the acceptance theory of authority #hich proposes that authority comes form the #illingness of subordinates to accept it! 1! (hat determines if subordinates accept ordersH 3! According to /arnard, the follo#ing conditions must be met! a! ,hey understand the order! b! ,hey feel the order is consistent #ith the purpose of the organization! c! ,he order doesn"t conflict #ith their personal beliefs! d! ,hey are able to perform the task as directed! /! 7o#er is defined as the capacity to influence decisions!
Span of control
Span of control is defined as the number of subordinates a manager can direct efficiently and effectively! 1! ,he classical vie# favored small spans, typically no more than si$, 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
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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!
-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
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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
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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
&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$cels in product kno#ledge, regulatory and uni4ue techni4ues needed for the particular position!
1)
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
5! 6! 5! )! 9!
1ong*,erm .apital Accumulation %eferred .ompensation Arrangements 0upplement /enefits and 7er4uisites 0pecial 0everance and :etirement Arrangements +mployment and .hange of .ontrol Agreements!
/e)ard * /ecognition:
0+/1 aims to re#ard the talented and high performing employees competitively! ,hey regularly conduct salary surveys to ensure that the re#ard package remains competitive in the market place! ,hey encourage continuous discussionC encourage regular revie# of employees performance and development! ,his provides feedback to the staff about ho# they are doing! ,he management links this to financial and non* financial recognition! 8n addition to this, the bank provides various incentives in the form of bonuses to encourage the employees and motivate them to continue #ith their high performance! ,hese include2 1! 0pot A#ard J :s! 5??? as cash prize 3! 0urprise A#ard 5! /est 7erformer A#ard 6! 0ervice Kuality A#ard 5! L+0( Lear of +$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!
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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
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!
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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
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$istence of the services of the bank! Poor /ecruitment:
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
%uring its inception, 0+/1 has not recruited competent people in filling up its lo#er and some mid level positions! Other than the recruitment of the 7robationary Officers and &anagement ,rainees, people #ho #ere recruited from banks for the lo#er management are not competent enough to provide the best output! As a result the services of the bank are being -eopardized! /eference Appointment: ,his is one of the set backs of 0+/1 and #ill have a long*term repercussion on the 4uality of <uman :esource! &any people have been recruited under the reference of the recommendation of the /oard of %irectors, #hich has become a chronic disease in the 7./Es! As a result, people having inade4uate 4ualifications and e$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!
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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
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$pansion strategy! ,hese
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
banks are establishing more branches country#ide and are e$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!
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!
! 6 5 4 3 2 1 0
4 3 Salary Str&ct&re
"#celle t
Acce$table
%elow Average
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
:egarding salary structure, employees from .ash %epartment are found to be dissatisfied #ith their salary structure and they considered it as @/elo# AverageA! ,hey thought they are paid less than they #ork! (hile other employees are found to be very much satisfied #ith the current salary structure of the /ank!
Bank S)itching
3;
Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
6'
2!'
6!'
0+/1 found to be able to retain employees as indicated by the employees intervie#ed #hich sho#s that, )9M of the employees #ill remain at 0+/1 despite having opportunity of s#itching to other banks! (hile 39M of them opined that, they #ill s#itch if they get suitable opportunity in other banks!
Branch &anagement
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
10 6 4 2 0 Highly Satisfied 2
Satisfied
Lowly Satisfied
:egarding satisfaction level #ith /ranch &anagement, almost every employee are found to 4uite satisfied, #ith only 1 person giving e$treme negative response as @Dot 0atisfiedA!
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
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$ility of .mployees
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
Acco& tability
100'
Bigure2 Accountability of +mployees +mployees at 0+/1 are found to be 1??M accountable in terms of performing their defined tasks and ready to do any tasks as re4uired! ,hey are accountable in terms of maintaining office time, acceptance and processing of information
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
50 40 30 20 10 0
50
1!
Agree
)isagree
Bigure2 Opportunities for 7romotion &ost of the employees believe that they have the opportunities for promotion! ,hey believe that, promotion system is based on a combination of seniority and performance! (hile a fe# numbers of them believe that, the people closest to the ,op*level &anagement only get promotionC and performance or seniority is not a matter at all!
0on53inancial #ncentives
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
Bigure2 Don*Binancial 8ncentives /esides the monetary incentives, there are certain non*financial incentives, #hich can satisfy the ego and self* actualization needs of employees! ,he incentives, #hich cannot be measured in terms of money, are under the category of @Don* monetary incentivesA! Don* financial incentives can be of the follo#ing types2* 0ecurity of service, 7raise or recognition, 0uggestion scheme, =ob enrichment, 7romotion opportunities! Only a fe# number of employees are paid non*financial incentives! ,hey are from the ,op level of management! (hile the others donEt have such benefits!
7o$ Security
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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
50 40 30 20 10 0 1636! 33333
50
Job Sec&rity
Agree
)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!
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!
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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
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$lems )ith Discipline * 1rievance 1! &ost of the employees are una#are about their rights as the organization does not supply any information through proper channel about the situation #hen they can report a grievance! 3! 0ometimes secrecy is not maintained by the :egional &anager! 5! ,he employees are often not interested in reporting #hen the person #ho is the cause of the problem is in a higher position! 6! %isciplinary actions are often delayed too much and as the saying goes, @=ustice delayed, -ustice denied!A
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
Conclusion
,his paper has been prepared on the topic @Organizational 0tructure and %esign in the 7rivate 0ector /anking .ompanies in /angladesh2 A .ase 0tudy on the 7ractices of 0outheast /ank 1imited, 1aldigirpar /ranch, 0ylhet!A An effective organizational structure shall facilitate #orking relationships bet#een various entities in the organization and may improve the #orking efficiency #ithin the organizational units! Organization shall retain a set order and control to enable monitoring the processes! Organization shall support command for coping #ith a mi$ of orders and a change of conditions #hile performing #ork! Organization shall allo# for application of individual skills to enable high fle$ibility and apply creativity! At 0+/1 every employee in confident of his -ob security and has the assurance that he #ould remain on the -ob for the agreed period! 8n addition to this, the #orkload is e4uitable divided bet#een the employees and therefore, they #ork #ith peace of mind and tran4uility , resulting in the overall enhanced performance of the employees! At 0+/1 prevails an environment of confidence and mutual trust! ,he documented employment policies are honestly implemented to the satisfaction of both management and employees! ,he <: department of 0+/1 is trying its best to ensure superior employee relation through providing health and safety benefit in the form of better*4uality #orking condition! 8n addition, top*level personnel at the branch are re4uired by the organization to provide every kind of support for employee gro#th and mediate every dispute, if occurs, through negotiation, not by mere ordering! 8nspite of having considerable strengths and opportunities, 0outheast bank limited faces various threats from its contemporaty counterparts and it have its o#n set of limitations! 8n this paper, 8 am trying to find the solutions that #ould help 0+/1 to compete more intensely in the market!
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
/eferences
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Organizational Structure and Design in the Private Sector Banking Companies of Bangladesh: A Case Study of Southeast Bank Limited Laldighirpar Branch Sylhet
http2GG###!articlesbase!comGorganizational*articlesGorganizational*structure*of*the* multinational*companies*153;5;6!htmlRi$zz1&9?oPzmv
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