Theories of Management that are used by NTB

Contingency Theory

By using the Least Preferred Co-Worker (LPC) model, contingency theory contests the leader to
the situations

As per our observations, NTB uses this theory to determine the finest candidate for a specified
set of job requirements aimed at effectiveness of an individual in that role.

NTB uses Contingency theory in following ways

1. To assess the effectiveness of an individual in a particular role once the job is offered to all the
levels of organization i.e. Trainee Banker, Banking Assistant, Banking Officer, Assistant
Manager, Manager and above.

2. To predict whether a person who has worked well in one position in the organization will be
equally effective in another position by exercising job rotation.

3. When implementing changes in the roles and responsibilities that management of NTB makes
to bring effectiveness to the role of the person leading the same.

Contingency model might not be the best leadership model to use in most situations, but since
its a powerful tool to analyze a particular situation to determine whether to focus on tasks or
relationships, it is successfully using by the Nations Trust Bank.

Total Quality Management (TQM)

Here, all the staff of the bank partake in refining procedures, products and services, and the
culture.

NTB has adopted TQM Principles

 As a customer-focused organization, that involves all employees in continual improvement NTB
uses strategy, data, and effective communications to integrate the quality discipline into the
culture and activities of the organization.

1. Customer-focused

Irrespective of what an organization exercising to improve the quality (training employees, ,

upgrading computers or software, or buying new measuring tools, integrating quality into the
design process), the customer is the one who determines whether the efforts were worthwhile.

2. Total employee involvement

NTB always tries to eliminate fear from the workplace to get the employee commitment while
empowering and providing a proper environment. NTB uses self-managed work teams as a form
of empowerment.

3. Process-centered

NTB also focuses on process thinking. The steps that are necessary to carry out the process are
defined, and the measures of performance are always monitored to detect unforeseen
dissimilarities.

4. Integrated system

In spite of NTB consists of different functional specialties often systematized into vertically
designed divisions, it is the horizontal processes connecting these functions that are focused on
TQM.

Micro-processes - Everyone who work for the bank understands the vision, mission, and
guiding principles as well as the quality policies, objectives, and critical processes of the
organization. Business performance is monitored and communicated at the monthly staff
meeting.
 NTB is consisted of a unique culture of work, and it is impossible to accomplish
excellence in its products and services unless a good quality culture has been adopted.

5. Strategic and systematic approach

This is a critical part of the TQM. This approach to achieve the vision, mission, and goals of the
bank. This process, is consisted of formulation of a strategic plan that assimilates quality as a
major element that is successfully used by the bank.

6. Continual improvement

This directs an organization to be both analytical and creative in finding ways to become
competitive and effective at meeting the expectations of stakeholders.

7. Fact-based decision making

As TQM needs that an organization gather and evaluate data to improve the decision-making
accuracy, achieve consensus, and allow prediction based on past, NTB always making sure to do
accordinly.

8. Communications

At the times of changing the different aspects of the bank, as well as part of daily operations,
effective communications plays a major role to maintain the morale and in inspiring employees
at all levels.