CAIIB · ABM

B Human implications of organization

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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Q

What does 'human implications of organization' primarily refer to in the context of bank management?

A

It refers to the impact that organizational structure, culture, policies, and processes have on the behavior, attitudes, motivation, and performance of employees within a bank.

Q

What is the concept of 'organizational citizenship behavior' in banks?

A

Voluntary employee actions that benefit the organization beyond formal duties.

Q

How does organizational structure influence employee behavior in banks?

A

Organizational structure determines authority relationships, communication channels, and work responsibilities, which directly affect employee motivation, job satisfaction, and performance.

Q

What does 'organizational entropy' mean in a banking institution?

A

Tendency of organizations to decline in efficiency without active management intervention.

Q

What is the significance of the 'span of control' in a banking organization?

A

Span of control refers to the number of subordinates a manager can effectively supervise; a narrow span allows closer supervision while a wider span promotes employee autonomy and reduces management costs.

Q

How does the 'Peter Principle' affect human resource management in banks?

A

Employees are promoted until they reach their level of incompetence.

Q

How does centralization of authority affect employee motivation in banks?

A

High centralization concentrates decision-making at the top, often reducing employee autonomy and initiative, whereas decentralization empowers lower-level staff and enhances motivation and responsiveness.

Q

What is 'organizational resilience' and its importance for bank employees?

A

An organization's ability to absorb disruption and adapt while maintaining core functions.

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