An Introduction To Bank Management practices

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Effectiveness and efficiency are very important in an organisation. Effectiveness mean "doing the right things", whereas efficiency means "doing things right". Therefore, four overall functions are tends to include everything that managers need to do in the management process. The four function of manager are planning, organising, leading and controlling. The major departments in bank are: customer service department, banking and financing department, human resources department, policy and control department, Consumer Sales & Distribution, Investment Banking and Banking Risk Monitoring of Group Information & Operations Division. Therefore, without these four functions of management, the organisation will faces many problems during operational the organisation. Tables below show a summary of functions of management.

1.1 Planning

Manager should be setting goals for the Bank. For instances, expand the network to overseas such as Singapore, this is due to Singapore is our neighbour country, is very near with Malaysia so still can take attention and observe the growing of the bank. Next, the manager should explain and defining the actions necessary to achieve the Bank goals to the work groups. This is for the employees to more understand they need to put effort together to achieve company goals. In a bank company, teamwork and workers spirit is very important to meet the goals. In the function of planning, setting a specific number or growth how many percent within this year is necessary. We know that, if a bank or an organisation which do not have any specific number as their goals, finally, there will never achieve the bank ideal goals. These have some examples about specific number in bank or a company's goals, increase 20% of new loaner or announced to bank organisational workers within 2011 year the target is 50,000 new opening accounts. The manager also need analysed or understood the Bank situation and appropriate goals and actions must be determined in order to solve problems or to take advantage of opportunities.

Example 1:

From opportunities business opportunity market expansion not only

regionally but is globally.

Keep improving the service

and do a plan.

Figure 1 Goals and actions

Example 2:

Bank may face 2 main problems:

Competition threats

Customer dissatisfaction

Furthermore, the manager needs to encourage the employees do not empty talk but with actual action to achieve Bank's goals together. Besides, the manager is tend to be innovation and considering what should be done to encourage levels of change. The manager must always prepare to give new ideas for the bank to do better and the best job. Moreover, manager throughout the bank must develop goals and operational plan for their subordinates to contribute a success bank as a whole. All managers in different department should always meeting and update the current information of company. Moreover, these managers may discuss the problems that company face.

1.2 Organising

Organising is involves and focuses on determining the tasks to be done, allocating human resources as well as non-human resources in the bank to carried out that plans successfully. Arranging of human resources in the bank is includes who is the person in-charge and how those tasks be managed, all is about people, who are labours and employees. The managers of each department tend to have a meeting to discuss how to allocate employees effectively. As an instance, the worker who is talented in promote things is suitable in-charge the position of sales and marketing department. However, non-human resources are includes the computers and electronic machines in the bank. For example, the bank-in machines, fast cheque machine, ATM machines and the staff desktop. Manager of the bank must organise the work group's members in small groups to avoid the "office politic" occurs badly so that need to do a guild line, so that information, resources and tasks will flow efficiently throughout the bank. Besides that, organising also includes assigning authority and responsibility so that tasks can be carried out effectively by employees.

For example:

(Send accountants to training)

Before How to solve?

Accountant manually Bank SQL new Accounting


Figure 2 How to organise the staff when new software coming in

In figure 2, the bank is using accountant manually before, but with the step of innovation, accounting software is coming up, so that the manager of the bank need send the accountants to go training and learning skills. This is because by using the software, there will be more efficiency and accurately than accountant manually. This may let the bank gain more profits.

1.3 Leading

Leading is the process of influencing people to work toward the bank company goals. Manager or to be an effective leaders, the manager must understand the dynamics of individual and group behavior, know how to teach, be able to motivate their employees and be an effective communicators in the bank company. The ways of motivation employees are giving incentive, promotion for the top achiever, increment, locally and oversea training and lastly is the benefits such as medical and traveler fund. These may lead to a good and positive environment in the company. Besides, the manager must often communicate information to their employees. For example, manager should advised about the financial performance and strategic direction of the bank is fulfilling its social obligations and abiding by the law. In business environment today, as an effective leaders, he or she must also have vision. They must be capable of understanding and predicting what will happen in the future and they must be capable of sharing that vision and guiding, empowering and influencing their employees to make the vision a reality. The leaders should encourage the employees and help them to solve problems. In management nowadays, giving an order to employees is replaced by encouraging and praising them. This is because when the employees feel belongingness to the manager or the bank, they will 100% commitment to the company in anytime. Managers are responsible for the success or failure of the organization, so that the managers must work with and supervise their employees to ensure that the organisation goals are met. Encourages staff to provide an enhanced and better customer experience, the whole organisation are need focused on improving the banking relationships with customers and dedicated efforts in developing innovative products and services for various segments of customers.

1.4 Controlling

Controlling is a process to ensure company moving toward the achievement of its expected goals. The manager must monitor the performance of the bank company as well as their strategic and operational plans. In this function, must be taken a set of work standards and to communicate them to the employees. A system of measure must be devised to judge or assess the staff performance according to these work standards. If there is discrepancy between goals and actual result, corrective actions must be imposed. Controlling also includes establishing and understanding what is required to achieve goals, measuring what actually happened and is being done, identifying deviations between planned and actual results, and taking corrective action if there is a deviation.

Example 1:

WTKN Bank is a local bank company. The goal of the company is to achieve 6,000 of new saving account within 6 months. However, WTKN Bank only achieves 650 of new saving accounts in first month, 890 of new saving accounts in second month. Therefore, the manager is needed to taking corrective action from 1,000 new saving accounts per month to 1,115 new saving accounts per month start from third month onwards. So that, the WTKN Bank's goals only can be meet.

2.0 Management Challenges

Management challenges can be divide into 2 main sectors, which are includes the challenges of internal organisation and external organisation. Internal organisation challenges are such as office politics, customer dissatisfaction and responsibility of employees which are often facing by bank organisation. While, external organisation challenges are competitor threats and the popularity of our bank to the nations.

2.1 Challenges of Internal organisation

2.1.1 Office politics

In many organisations especially in the office works, office politics is a big challenge for an organisation. When office politics are occurs, the staff in the bank will not in mood to do their work seriously. Due to their emotional are affected, unfortunately the bank also may be affected directly. To solve this problem, the manager should creates a harmony working environment. The manager may organise some motivate activities for their staff every 6 months, such as teamwork activity and some 3days 2 night motivate seminar, so that the staffs can more understanding of each other and encourage a good relationship between staffs and the manager. Besides that, the manager must help the staffs or employees to solve their problems. As a good leader, the manager not only need help their employees in works problem, but also in their personal problems. This is because the employees will more closely and feel belongingness to the company. Therefore, the employees will put their commitment to the bank organisation. Lastly, be a supportive leader, always be friendly, approachable, and concerned with the needs, status, and well being of subordinates as equals and frequently goes out of his way to make the work environment more pleasant and enjoyable.

2.1.2 Customer Dissatisfaction

The manager must cope with the conflict and resolve the problems as they arise. This may involve dealing with an irate customer. For example, when customer is very angry and dissatisfied with the break down system or the staffs, the manager or the customer service department staff cannot ask him to calm down, because will causing the customer more unpleasant with the bank. Therefore, the manager must allocate their employees to attending some training courses to improve their communication skills. Besides that, train and motivate the employees to be polite with smiling face when facing customer and do not argue with customer, just nicely talk to customers. This is due to bank is run as service line business. In sector of servicing line, smiling face is the important aspects, this is because the staff who dealing with customer is always as the first people who represent the bank and may affect the reputation of the organisation. First impression of the working environment and the working committee members are very important for every customer.

2.1.3 Responsibility of employees

In any organisation as well as bank, responsible of every working committee members are very important and is necessary. Firstly, punctuality of employees is the main aspect. To solve this problem, discipline and self-manage training courses are suggested to be carried out for the employees. Furthermore, punch card system should available in the bank organisation. Be a caring leader, concern every employee and motivate them to be more responsible to their works. As a manager must always encourage their staff to carry out the mission and vision of the bank organisation. Moreover, let their employee fully understanding what tasks should be done by them. So, this problem is related to organising and leading function. The manager or leader may motivate their employee by promotion them, giving an increment, giving incentives, locally and oversea training, and provide benefits for the employee such as medical insurance and travel bonus.

2.2 Challenges of external organisation

2.2.1 Competitors Threats

2.2.2 The popularity of our bank to the nations