2. Management at RBS Functions of Management High and middle level management Sales Managers (“Hunters”) Services Managers “Typical” Manager’s Routine Reach office 15 to 30 min. before 9.00 am Work with religious devotion and alacrity Highest level of Technical & Human skill All modes of communication (Direct & Indirect ) Personal visits, Phone, internet (email and video conferencing) Relationship Manager- Busiest Routine
3. Management at RBS Work Agenda and Manager’s Education Assigned and assessed periodically Length of Training depending upon nature of job and manager’s past experience HR department’s role Creativity and entrepreneurship Service industry Product department: creative and “idea generating” people Rewards and recognition
4. Major elements in RBS Environment Economic Recovering existing loans rather than issuing new ones Downsizing of workforce Socio-cultural Foreign Bank “Royal Bank of Scotland” Issue of “war on terror” First foreign bank to introduce Islamic Banking Legal-political and international Affected by State Bank of Pakistan & European Union regulations Technology Up to date IT department ATM and credit/debit card services 24 hr banking, Balance Transfer Facility (BTF) and E statements.
5. Major elements in RBS Environment Customers General banking- no particular customer profile Preferred banking for clients with balance over 1 mnRs. Competitors Barclays, Citi, Standard chartered, Faysal, AlFalah RBS has a reasonable market share but the local banks although dominate the industry Low Environmental Uncertainty Low Environmental Complexity - homogeneity Environment dynamism- fairly stable Business risk is always there
6. Problems & Decision Making Nature of common problems Non Crisis problems requiring programmed decisions Mostly customer related problems (miscommunication between the customers and the bank staff) Involvement of various levels of management according to the nature and severity of the problem. Group decision making Decisions made on policy matters through the consensus of the concerned people Formal and informal meetings and discussions Recommendations presented to senior/ supervisor
7. Strategic Management Corporate level strategy Growth strategy Business level strategy Differentiation Strategy Functional level strategy Different departments
8. SWOT Analysis Strengths Number in terms of assets Better position by having big accounts Bank follows KYC policy Role of Fraud Risk Management 24 hours services with SMS banking Weaknesses Lack of rotation Customers not properly informed
9. SWOT Analysis Opportunities Potential Growth in Islamic banking Modern ways of Communication Bank should employ best courier service Threats Religious class can be problem Instability in Government Policies Depreciation of domestic currency Employees not loyal High competition
10. Porters Five Competitive Forces Rivalry among existing firms Availability of substitutes Threat of new entrants Power of buyer Power of supplier
12. Basic Elements of Organization Structure Job Design Job Simplification Regular work hours Vertical Co-ordination Formalization Span of Control and hierarchy levels Delegation
13. Basic Elements of Organization Structure Horizontal Co-ordination Lateral relations Information Systems Departmentalization Several departments like royal preferred banking, legal recovery, corporate, fraud risk, etc.
15. Human resource management Management of various activities designed to enhance the effectiveness of an organization work force in achieving organization goals. The activities are human resource planning, staffing, development and evaluation, compensation and managing effective workforce relationship
16. Personal policy procedures manual • Manpower planning • Role of personal division at the head office • Job analysis for a job specification • Recruitment and selection • Promotion, transfer, demotion and retirement • Resignation • Management by objectives, performance standards, assessments and appraisals • Training plans and development • Salary and wages
17. Continued…. • Personnel records and statistics • Industrial relations • Compliance management work conditions • Tax liability • Temporary recruitment • Internal communication & staff welfare • Delegation of authority & power of attorney • Foreign posting international assignments
18. Human Resource Planning The line managers usually assess the demand for a job vacancy. It is then forwarded to the head office, which after approving it sends it to HRM department Human Resource Department then initiates the Staffing procedure
19. Recruitment New employees are hired on basis of their qualification and experience For Management trainees, written tests of the candidates are taken For top positions experienced candidates are preferred.
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21. Training and development It is a planned effort to facilitate employee learning of job related behavior in order to improve employee performance It is obligatory for each employee of the Bank to attend at least one training course (of a minimum duration of one full day) in a calendar year Branches, Area Offices and Head Office Divisions/Departments are to send their nominations Training and Development Centre
22. Training and Development Basic Course on General Banking Operations 4 days Officers working in general & consumer banking departments Account Opening & Customer Relationship 2 days Officers in-charge of account opening Clearing, Collections and Remittances 2 days Employees working in these areas Advanced Course in General Banking Operations 3 days Operations' managers Basic course in Processing of Credit Proposals 2 days Credit officers Analysis & Interpretation of Financial Statements 2 days Credit officers Credit Administration & Documentation 2 days Credit Adm. Officers
23. Training and Development Elementary Course in Trade Finance 4 days Officers working in trade finance Advanced Course in Trade Finance 3 days Experienced trade finance officers Time Management and Personal Effectiveness( 1 day Officers in Range III and above who have not attended this course) Customer Service Skills Workshops 1-2 days All RBS’ employees Telephone Handling Skills 2 days All RBS’ employees handling telephone calls Selling Skills 2 days All RBS employees at branches Performance Appraisal Workshop 1 day All RBS employees
24. Performance appraisals They are prepared by looking at employee’s achievement of given targets. Employees dealing with sales are judged by their sales target achievements Employees dealing with service are judged by their provision of service providence to the customers Supervisor input is also taken for his/her subordinate.
25. Compensation Compensation to employees is based on grades, formulated by the HR department. Bonuses for achieving or over achieving a target are also given. Medical benefits for employees and their spouses are also given to the permanent employees Promotions are based in performance and productivity.
26. Downsizing If an employee at RBS is terminated the bank policy in this regard is that the employee will get one-month salary. The branch or area manager has to refer the case to the HR department and they then go through with the process.
