1. Executive summary
Operational efficiency and its quality of providing service is the very first thing whatever organization either creation or service. That is most important part in any company operations whether it is business focused or nonprofit focused organizations also are highly concern & their organizational growth and local and regional expansion of their operations. Mainly operational efficiency and performance is depending on external environment motorists. Those external individuals are creating competition and intense of the among the industry player. Therefore future strategic planning, contingency plan, operation strategy is most important and playing essential role to handle forthcoming changes. If the organization is not be able to manage those changes that going on in the originations and external organization directly have an effect on on functional efficiency of the organization. To face those environment changes most wise strategies make modification in organization functioning style and strategies. That will will help to achieve organizations commercial objectives as organized. Mainly manufacturing & service organizations are executing functions such as;
Sales & Marketing
Human resource
Operation
Accounting & Money or treasury
IT/Information department
Logistic/branch management
Channel management
Internal auditing
Risk management
So called functions linking each other and having inter - dependencies, no person can override those operational activities. Everybody work in the must focus on very well on functional activities. Because, at the end of year shareholders (traders) are boosting questions at AGM, how a lot of amount of come back generate by businesses and whether business operations went smoothly, what will be the near future plans to deliver high rate of go back for our investment and what type of operational strategy heading to carryout to face the completion. So on frequently improve the questions by shareholders. "Production and procedure management" was started with industrialization. But it play essential role in the service industries. In the contemporary world named it as "Operation Management". Contribution of the subject matter is making bigger dissimilarities for business functions. Multinational & local companies have established independent department to control their functional activities very well. For an instance nowadays emerging business is banking & financial company name called "Nation Trust Bank". That bank or investment company routine operations are making huge effect on their business performance. That's because; loan provider performance is motivated by its functional capacity & style. Mainly employees and customer's satisfaction are most important element to show outstanding performance also to attract the new customers. In this industry is motivated by managing effectively whole operations of the business. Lack of procedure management offers poor performance. To provide exceptional service wider selection of service related need to have well defined procedures technique to uplift business. This project report mainly focused on current practice of procedure management bank industry and project support the followings.
Define procedure management, its quality and playing role in banking & financial service industry.
Evaluate the goals and objectives are achieved in operation management aims.
Define systems in procedures in relation to service and regular activities.
Major source, tools and systems that are promoting operations also to support quality of service of the bank.
Analyzing importance of quality audit and execution of quality management system in bank or investment company.
Major weakness and explore opportunities to increase the bank service to meet the stake holders of the business. Making recommendation to capitalize the opportunities and avoid weakness of the lender.
Conclusion of assignment
2. Define term of businesses management
According to literature creation & procedure management are considering as one subject matter but in the existing situation totally expert says about it as
"Procedure management is subject that Design, execution and control organizations operations that turns it resources into desired goods and services, and use its business strategy" and its own define as another way
"The maintenance, control and improvement of organizational activities that must produce good or service".
"Functions Management deals with design and management of products, process, services and supply chains. It considers the acquisition, development, and utilization of resources that organizations need to deliver the goods and services their consumer wants.
First explanation can be related the following diagram is simple operation of any business.
Feed Back
Input
inputs Service
Process
servicing process
Out put
Maximize customer satisfaction
Employees
Money (local & overseas)
Savings accounts
Information
Systems
Open up Loan company A/C
Cashiering
Credit greeting card promotion
Mortgaging
Generate lender statements
Buying & selling of overseas currencies
Happiest or loyal customer
The above diagram we can easily see operations different operations in the input level, process level and outcome level. Therefore we can conclude that
2. 1. Operation management from facet of Country Trust Bank
To get analyze importance of operations of the bank the vision objective and worth is aiding out it
Vision - Making life simple when you are the benchmark of convenience
Mission - Be ground breaking in continuously producing customer centric alternatives. Unleash the ability of we to be the best in the industry. Consistently develop market share and be the most profitable and well known Sri Lankan lender by 2015.
Values
Inspirational leadership
Integrity in all our dealings
Open communication
Learning focused
Meritocracy
Prudent risk management
Respect for all
Innovation and ongoing improvement
Nurture relationships
Socially and environmentally responsible
Vision, quest and value are Nation Trust Bank (NTB) operational targets in relation to corporate objective. Corporation chart shows hierarchy of the departments
Chairman
Deputy Chairman
Board of Directors
CEO
Corporate management
Senior management
Branch management
Managers
Corporate management overlooking the follwing functions
Director/CEO
DGM - Retail Banking
DGM - SME Banking
DGM - Cards, Consumer Possessions and Strategic Marketing
DGM - Commercial and Institutional Banking
Chief Operating Officer
Head of Legal and Company Secretary
Chief Financial Officer
Head of Man Resources
Head of Credit and Market Risk Management
Head of Internal Audit
Consultant/Mind of Treasury
Consultant/Mind of Operational Risk and Compliance
Senior management overlooking functions are;
Trade Services
Branches and PBC
Alternate Channels
SME Banking and Factoring
Cards and Consumer Assets
Branch Operations and Credit
Wholesale Banking
Consumer Credit Risk and Collections
Consumer Sales
Treasury Services
Leasing
Corporate Banking
Leasing Operations
Management Information and Planning
Cards Marketing
Collections
Central Operations
Fixed Income Securities
Leasing - Zone 2
Leasing Recoveries
Marketing Services
Retail Bank Credit
Delivery Channels
Nations Insurance Brokers
Technology
Legal
Credit Operations
Credit Risk
Corporate Banking
Delivery Channels
Leasing - Zone 1
Internal Audit
Infrastructure and Administration
Business Banking
Compliance and Financial Reporting
Business Solutions
Delivery Channels
Credit Risk - Leasing and Factoring
By taking a look at the above mentioned orgnization chart which functions, can get clear idea about the how its importace of the operaton mangement in the NTB operations. Here in the principle oprating official and head operational risk is paly essential role of for the cooking operations. These are responsible for the lender oprations as entire. Operational scope No of branches - 40, No of leasing centers - 9, No of ATM - 43, 6 personal bank centers as well as Internet Banking
2. 2. SWOT research of NTB
Strenght
It is subsidiary of Jhon Keels group, idirectly they can gained group strenght.
Reputed coporate brand Coporate brand value is very high
Has determined well & profitable segment to provide the banking service
Wider product portfolio
Strong IT net work
staff in every level having experice
More than 20yers experaince for the reason that perticualr field.
Carryingout more promotion
Respect corporate governance
Good Internal auditing & risk management
Weakness
define some procedures wrong manner
Poor advertising - Newly introdce gurnateed invetment paln will be fail because of computer is irrational plan.
More customer complins prices and products quality
Suboptoimization is happening & Employee discrimination
Poor advertising with regards to market leader.
Employee choices very static do not prepared to new comers and do recruitment based on the non-public contact.
Poor strategic implication.
Try to do mass level promotion, it has failed
Always try todepend group strenght
Poor opertations of minuscule brach in the supermrkets
Opportunities
expansion opportunity in further in sri lanka in norht & south ( warfare affected areas)
Can be offered more differntiated Service by giving well traning for the staff.
Customer driven campaign.
Customer feed back system over the phone or by Text, by mail.
Rewarding system for employees
Threat
High competition in the banking industry.
Overriding duty ruels and regulation by bank. may have legal risk for business.
New management is do not more matter on the operations
Paying high premius to get home based business without cinsidering future feasibility.
2. 3. Importance of functions management NTB
To meet the talk about holders objectives
Investor's expect return by spending money on the bank business. If the bank is not made sufficient of amount of come back on the shareholder's will not invest in the bank. Therefore its corporate and business aims must design and link with functions.
Another main importance area of the procedure management is expanding strategy to face the competition.
To managing the chance of the business
Mainly bankers facing the following risk;
Credit risk
Market risk
Asset & Liability management risk.
Operational Risk
When look at all the chance are related with the operation with bank business, if standard bank the bank halted their business procedures there is no any risk to control to them. Therefore, managing risk of the bank business should have smooth intend to manage the operations.
To fulfill rules and regulation of governed by Central bank of the country
To fulfill guidelines and rules of governed company function and banking acts
Supporting decision making
Operational information's are giving support to consider making. As example to advertising efficiency evaluate branded saving accounts can be used no of accounts exposed by customers on daily.
To conform new changes on scientific information
Technological environment is swiftly changing to look at those changes ATM came into connect with increase banking operational efficiencies.
2. 4. Performance research of the procedures with regards to firm goals and objective
External process changes (customer satisfaction)
Personal bank service providing branches
New investment plan proposed by bank
24 hours bank facility
Open mini branch in supermarket location.
Online bank-account opening systems
SMS banking system
Door step bank system
Billing payment system via their mobile phone
Internal process changes (to happy interior customers)
new auditing system to investigate the business risk
Make contract with the international HR consultancy organization for training & development of staff.
Policies have been changes when issuing loans
Transferring staff between branches to reduce
Giving good training for newly recruited employees regarding standard bank operations.
To reduce bottlenecks IT system training was provided.
To prevent hacking created new system PIN by IT
3. Routine banking procedure and related resources, tool and systems in support to boost operation quality.
As banking institutions it having so many business process, that may be split into two
External business process - Customer focused process
Under this process defined that bank service that they provide to the customers. Those service are divided into 3 categories
Corporate banking
Personal banking
Treasury
Issue Notice of credit
Current, saving and set deposit
Foreign exchange dealings
Shipping & other guarantees
Credit card
Forward exchange booking
Import & export finance
Debit cards
Commercial paper
SWIFT facility
Branded Cost savings accounts
Foreign currency swaps
Syndicate loans
Certificate of deposit
Interest rate swaps
Project financing
Advice on overseas current market movement
Securitization
Salary remittance package
Structuring, managing and underwriting of preliminary general public offering and private keeping equity
Housing loans
Company valuation & restructuring
E exchange - money transfer facility
Structuring of Corporate and business debt instruments
Holiday bank systems
Working capital financing
Red carpet bank system
Bullion trading
Off shore banking facility
Leasing
Internal business process - Internal procedure centric process
Where mainly inside functions related process can be analyzed
Marketing Management - Ex girlfriend or boyfriend. procedure for introduce of new product
This the huge process from the idea generating and also to launch to customers is having certain authorization to procedure such as;
Idea creating new service founded products
Evaluating feasibility with the market condition
Getting endorsement from the top of the marketing
Head of the marketing and Director of the Marketing, brand manger speaking about pros and cons of the merchandise, brand selection, aftereffect of existing products and competitor response
Finalized the approval
brand name Registering
to launch the merchandise getting ready budget and get authorization for that
brochures creating and making arrangement with the advertisement agency
Printing move books
Communicating to customers about the product via ad
Get feed again from the customer
Compare budgeted first deposit or accounts to assess whether branches have achieved budgeted sales.
Human resources management - Beginning new Branch load the personnel requirement
Forecasting personnel requirement
Advertise regarding the vacancy
application sorting and short listed candidates
Call for the interview
1st interview for these people and short detailed for second interview
Call for the second interview
Select the right candidate for the job
Giving the appointment letter
Familiarizing for the organization via inductions
Training to the candidate
Permanent those staff
Internal auditing system
Here make an effort to ensure that loan provider staff follow the procedure as planned and approved the accounts and fund. Here they evaluate
Analyze & search Scams and errors
Management auditing
System auditing (IT)
Accuracy of accounting entries
Analyze & search Inadequate accounting procedures
Assets auditing
Deposit management
Under this category try to manage the deposit level with liquidity and earnings. By balancing rules and regulations that are governed by central loan company.
Channel Development System
This is defined regarding new branch operation and development of customer support.
This also very important business process and functions in the banking operations controlling their assets and liabilities. If both of these are not controlling each other, the lender balance sheet will show effect on possessions and liabilities. It should be supervised by well licensed management bill or fianc disciplined person. Otherwise bigger influences made on the corporate image as well as destroy the customer's romance and could have position walk out the business. In the long run it'll makes huge impact banking system in the economy.
Risk Management System
major different risk aspect those are making bigger impact on the business enterprise continuation. Relating to loan company information major risk score the following;
Risk Areas
Component of the risk
Credit risk
Default risk
Security risk
Sectoral publicity risk
Legal risk
Counterparty risk
Cross border risk
Sovereign risk
Market risk
and
Asset & Responsibility management risk.
Interest rate risk
Liquidity risk
Exchange rate risk
Investment risk
Group financial risk
Share price decrease risk
Country risk
Operational Risk
Employee behavioral risk such as omission, fraud, judgmental errors, negligence, etc.
Disaster related risk
Trained staff turnover risk
Insider working risk
Sensitive information leakage risk
Lack of creativeness and innovativeness
Risk on MIS and IT related risks
Planning & Budget related risks
Shortcoming in the organizational structure
Credit rating dropping risk
Money laundering
Risk of scientific obsolesces
Risk failing business volume level and market share
Risk is being overtaken and getting rid of the management position
Overtrading risk and threat of financial disintermediation
When take a look at overall risk, high risk show by functional risk compare to other risk areas. Therefore, to investigate any kind of these risks, have to have solid information to mitigate those hazards in business procedure.
Operation management
Operations managements are looking after following areas. Those are;
Bank or branch starting procedure
This is very important part in beginning branches and head office. Opening must be done without certified people. If not that is considered as misused of operational rule on the other palm it taken as illegal action. Therefore those guidelines & rules must perfectly.
Cash controlling process by cashiers
Main cashier give cash to the counter cashier
Get it authorized on the log book
Cashier log on the computer
Carryout the day today operation (cutting down, withdrawals)
Handover cash to main cashier after counting
Fill the cash conclusion by using slip
Main cashier reconcile the cash with slip
Cash put into the safe box
Managing bank digital data
Data management is major important part of business process. Lender decisions are making process predicated on this process. If there is an error in the info, end result (information) is will be inaccurate, in the long run, made decision are providing risk picture. Following the appropriate tool for quality assurance of the info applied by the banking companies;
Describing data that is in the warehouse
Specifying what In and out of data is warehouse
business events scheduling extract based
Documenting and monitoring data synchronization requirements
Measuring validity & quality of data
Data process management and security management system for data
building Capacity of the bank
To improve productivity of service that providing process by loan company need improve existing capacity in conditions of ATMs, Branch and staff.
Loan Management system
The following process is involved in under the loan management;
Analyzing suspension system of the loan and advance
Then made reservation or taking legal action to receiver those loans
Managing the Finance of the bank
Financial management process overlooking low cost money resources and mainly pursuing procedure also looking after by fiance manager
Working capital management
Corporate taxes planning
Analyzing Investments
Debentures and Share issue
Bank corporate planning and budgeting strategies are followed by businesses, main step that is pursuing certain steps in the organization, business and businesses levels.
Analyze the Eye-sight, Mission, Goals and targets of the bank
Carryout position audit (SWOT) and environment evaluation (PESTEEL)
Generate tactical options
Analyze strategic options are generated
And Develop useful strategies such as fund, marketing, HR, operation, and IT to attain corporate goals. Such as
Profitability (Revenue before tax)
return on capital employed of the bank
Growth and Market show of the bank
Customer satisfaction and value addition for service Quality of service
3. 1. Analyzing and assessing resources, tools and system to aid in the quality operation
Bank or any other business resources, tools and system can be split into 3 categories predicated on value system. Those are;
Customer capital
Structured (organizational) capital
Human capital (Individuals Resources
Customer loyalty
Corporate brand and it reputation
Business collaboration
Intellectual property
Patents & copy rights
Design right
Service mark
Trade mark
Infrastructure assets
Management philosophy, Corporate culture, Management process, Information systems, Net working systems, Financial relationship
Know how (serving offering process)
Education level of employee, Vocational certification, Work related knowledge, Proactive and reactive ability, Changeability, Occupational assessment
3. 2 Define and implement quality management for bank
Quality management defined by American World for Quality "Quality is the totality of features and quality of service or product that carry on its ability satisfy mentioned or implied needs". Banks can give attention to their quality the next way. Quality of services or business can be strategy utilizing the subsequent methods;
Six dimensional performance matrix
Balance Score greeting card systems
Generic measurement
3. 2. 1. Six aspect or dimensional performance matrix
Dimension of the performance
Type of measures
Competitiveness
Relative market share
Measure of customer base
Deposit growth
Financial performance
Profitability
Liquidity
Capital structure
Market ratios
Quality of service
Reliability
Responsiveness
Aesthetic/appearance
Comfort
Friendliness
Courtesy
Flexibility
Volume flexibility
Delivery quickness flexibility
Specification flexibility
Resource utilization
Productivity
Efficiency
Innovation
Performance of the development process
Performance of the average person performance
3. 2. 2. Balance scorecard (BSC) system
BSC is determining financial and non financial procedures to judge quality of service. 4 pillars are representing by BSC. Those are;
Customer perspectives
Satisfaction of the customers
Financial perspectives - Satisfaction of Share holders
Internal business process
To meet both get together what must be offered
Learning and progress - Improving, growing, changing process and steps to gratify all the people in the business to improve efficiency of the organizations continually.
3. 2. 3. Generic measures system
To evaluate service efficiency the following generic steps can be implement
Generic Measures
Type of measurement
Service of Quality
Access - Easy to find out supermarket
Appearance - Staff appearance, well groomed
Availability - products availability
Cleanness - Gondolas and shelf must free from dust
Competence - Rate of cashiering
Courtesy - CSA must polite and respect to customers
Responsiveness - Response any queries
Security - personal security
3. 3. Utilizing quality management system - (six sigma model)
Improve any process performance either production process or service providing process. This model can be put in place and it offers 5 steps.
Step - Define measures
Step - Measure
Step - Analyze
Step - Improve
Step - Control
4. Identifying Weakness and opportunities in the process
4. 1. Weakness evaluation and tactical implication
Wrongly establish some operations
To collect the deposit banking assistant are sending to the outide banking premises, that is very high-risk because the rob or fraud money.
Faliures in th the IT system
Banking industry one of the main element driver is IT systms in those suystmens failutre affect couters, ATM or brnach operation. SO THAT IT deparment need to take relavent action to prevent this type of situations.
Poor promotion
Newly introdce gurnateed invetment paln will be fail because from it is irrational plan. We the customers are get calcualte benefit for the invesment plan, relizing lender make an effort to make fool the new customerss. Therefore NTB need to evaluate that advertising of investment plan.
Few brach and ATM
To fulfill customers need exiating ATM's and branch are not enough. Therefore top management need to increase variety of ATM's and mini brach increse the client service.
This always happen in the most notable management and they don't allow include new ideas and try discriminte those people as headche for the bank. This isn't acceptable level of pracite because of new ideas are assisting to develp the bank service. That culture must evolved by HR office.
Poor advertising with regards to market leader
Commercial standard bank is market innovator in the bank industry but problem is that NTB is not spend sufficient amount of cost on advertising plus they have preferred brand ambassder as sport celebrity that's not echo imporatnce of the lender service.
cost of personnel training is very high and cust down other cost
NTB has made an contract with interanationl HRM consultancy firm to get trian the satff. Nonetheless it is very cost. You will find experianced firms are availble in locall to get bank staff training at resonable cost. That must be changed.
Employee options very static do not ready to newbies and do recruitment predicated on the personal contact.
Junior and mature level staff recruitment is manufactured via personal contact, that is not good practice, it will leads poor operational perfornances. That is have to be chaged by HR section.
Poor strategic implication
Competition of the bank inductry is high and NTB strategies unable enough to cope the competition.
Try to do mass scale promotion, they have failed
Promotion that made by using brand ambassader had not been successful. Even the NTB advertising fail to identify their major benefit for the each of loan company accounts. That has already capitalized by other players of the industry.
Always try todepend group strenght
JKH is large conglomarate bunines group, therfore NTB try use the those band of companies profit their accounts as commercial accounts. But it will never be successful strategy, if any buisness will fail that will directly influence o on the lender operations.
Poor opertations of minuscule brach in the supermrkets
In the supermarket standard bank service expecting customers are incredibly high, but little branch is included 3 staff members they can't manage rush time bank operations.
4. 2. Opportunities research and tactical implication
There can be an opportunity to start new brach north & east. Due to those areas high concluded customer is having aspire to get good bank service. Therefor NTB could capitalize that chance.
Can be offered more differntiated Service by giving well traning for the staff
NTB personnel always having an frame of mind as most prestige bank, but they need change that attitude and need do differentiated bank service for the clients.
Customer driven advertising.
By analyzing most valuable customer, NTB must offer rewarding system such as;
Interest excemeptions
Gift vouchers
Seasonal offers on the minor accounts,
Customer feed back again system over the phone or by Text message, by mail.
This will help to increase the customer satisfaction efficicny of the lender by merging with new technical development. That will assist to improve the volume of customers and reduce operational failures.
Rewarding system for employees
To inspire the employees have to have proper and stimulus arisen rewardign system to raise the sales and productivity
5. Conclusion
According to the article and predicated on practical application of procedure management, can be make the following conclusions
Importance of the functions management will be increased in future
This subject could be more developed and that knowledge need apply.
Operation director role of will highly important.
HR section must play as supportive division in managing visitors to implement functional strategy
Marketing division is play a greater role when comes to the sales management or branch level operation.
To increase the business performance and quality benchmarking need be practiced by any company. Most effective bench marking practice is industry founded bench marking.
