Organising
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Business and Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary purpose of organising as a management function in banking?
Organising establishes a formal structure of authority, responsibility, and communication channels to coordinate resources and activities toward achieving the bank's objectives efficiently.
What is the principle of 'exception' in management as applied to bank organising?
Only exceptional matters are escalated to higher management levels.
How does the principle of unity of command apply in a bank's organisational structure?
The principle of unity of command states that each employee should receive orders and be accountable to only one superior, preventing conflicting instructions and ensuring clear accountability in banking operations.
What is the meaning of 'organisational design' as a managerial activity in banks?
Structuring roles, processes and hierarchies to achieve bank objectives.
What is meant by 'span of control' in the context of bank management?
Span of control refers to the number of subordinates a manager can effectively supervise; in banking, a narrow span is preferred for complex compliance and risk functions, while a wider span suits routine transaction processing units.
What distinguishes a 'project organisation' from a permanent functional structure in banks?
Project organisation is temporary, formed for specific assignments and dissolved after completion.
What distinguishes a line organisation from a line-and-staff organisation in banking?
A line organisation has a direct chain of command from top to bottom, while a line-and-staff organisation supplements line authority with specialist staff departments such as legal, compliance, and risk management that provide advisory support.
What is the role of the Managing Director and CEO in a bank's organisational hierarchy?
Top executive responsible for overall management, strategy and bank performance.
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