Case Study Stanbic Bank Tanzania Essay

Case Study Stanbic cuss Tanzania EssayStanbic Tanzania is champion of members of the measurement Bank Group. Idea of establishment of bar Bank Group was brought by collection of business men in 1857 delinquent to economic prosperity in Port Elizabeth in southwesterly Africa, which was the major port and was used to the export of wool. The globe behind the Idea was John Paterson who with fellow business men wanted to establish the Standard avow of Port Elizabeth. This idea did not get due to fear of competition from the existing of the two banks. Paterson sailed to England to search for support of British Investors. Patersons efforts were successful and in April 1860, a prospectus for The Standard Bank of British South Africa was published in London. In 1862 The Standard Bank of British South Africa was formal. On 15 October 1862 the bank was in bodilyd and registered as a limited obligation company. Its capital was fixed at 1,000,000 with 10,000 shargons of 100 each. The Standard Bank of British South Africa operation commenced in 1863 and Port Elizabeth remained to the Bank Head Quarters. In 1883 the vocalise British was dropped from the appoint.In 1962 a subsidiary company was formed to carry business in South and South West Africa (now Namibia) chthonian the banks old name. The name Standard Bank Limited was adopted for the holding company in England (subsequently to pass away Standard Chartered Bank plc). Standard Bank Group was established in 1969 as Standard Bank investing Corporation the holding company of SBSA. Standard Chartered sold its 39% stake in Standard Bank Group in 1987, transferring complete ownership of the holding company to South Africa.The Standard Bank host, based in Johannesburg, South Africa, has wide-cut assets of intimately US$81 billion and employs about 35 000 people worldwide. Its web spans 17 sub-Saharan countries (including South Africa) and extends to 21 countries on other continents, including the key fin ancial centres of Europe, the United States and Asia. In addition to banking, Standard Bank has a strategic interest in the amends industry through its restraint of the Liberty Group, one of Africas leading life world powers and financial services groups.The group has one of the greatheartedgest single earningss of banking services in Africa. Through this network we offer a wide straddle of banking products and services which argon delivered through to a greater extent than 1 000 points of representation in 17 Afri ordure countries (including Tanzania). We are active in international and cross-border transactions and in those areas liaise closely with Standard Bank Corporate and Investment Banking and Standard Bank London.We offer a wide revolve of financial products and services in the avocation marketsPersonalWe are committed to providing our customers with the security, convenience and value for money they expect from an international bank with Afri privy roots. As such( prenominal), we offer you a range of products and services that enhances your banking experience.BusinessWe recognise that as a Business Banking customer you lead a busy life. Through our comprehensive service offering we engage to simplify your financial transactions so you depose spend more time on your business and less time on your banking.Corporate and InvestmentOur corporate social organization ensures that we are able to provide customized products and services to both established customers as well as bleaker, entrepreneurial companies. By focusing on personalised solutions and ongoing financial product development, we are committed to delivering solutions that support our clientssuccess where it matters most.Stanbic Tanzania backgroundStanbic Bank Tanzania was established in 1995 by Standard Bank group to take over operations of the defunct Meridien Biao Bank Tanzania limited. Stanbic Bank Tanzania is one of the members under the Standard Bank group.The bank has eight splitesCity branch in Dar es SalaamMain branch in Dar es SalaamIndustrial branch in Dar es SalaamMayfair branch in Dar es SalaamArusha branch in ArushaMoshi branch in MoshiMwanza branch in MwanzaMbeya branch in MbeyaStanbic Centre branch in Dar es SalamVision and set of Standard Bank groupOur visionWe aspire to be a leading emerging markets financial services ecesis.Stanbic bank core values fate our customersStanbic Bank aim to do everything in their power to ensure that their customers are provided with the products, services and solutions to suit their pauperisms, provided that everything they do for them is based on sound business principles. increment our peopleStanbic Bank encourages and helps their people to develop to their full potential, and measure their leaders on how well they grow and ch all in allenge the people they lead.Delivering to shareholdersThe Standard bank understands that they bring the right to exist by providing appropriate long-term returns to their sh areholders. The bank tries extremely hard to meet various targets and deliver on their commitments.Being proactiveStandard Bank strives to stay ahead by anticipating rather than reacting, merely their actions are alship quite a littleal carefully considered.Working in teamsThe bank, and all aspects of their work, is interdependent. The bank also appreciates that, as teams, they understructure procure much greater things than as single(a)s. They value teams within and crossways business units, divisions and countries.Guarding against arroganceBank has confidence in its ability to achieve ambitious goals and celebrate success, but it must never allow itself to become arrogant.Respecting each otherStandard Bank staff has the highest regard for the dignity of all people. They do respect each other and what Standard Bank stands for. The bank recognises that thither are cor opposeing obligations associated with our individual rights.Upholding the highest levels of integrityThe banks entire business set is based on trust and integrity as perceived by its stakeholders, especially their customers.SWOT analysisStanbic strengthsPerformance oriented (rewards) staff. Stanbic Bank uses Performance indicator as a key to success. Staffs are rewarded based on their performance. This has built a culture which has encouraged the bank staff to deal more with corporate clients with big business.Portfolio diversificationCompetitive advantage on products offered by the bank. The Bank offer a wide range of products which are more competitive analyze to other banks. Among other products includes, Capital and investment products, Assert and vehicle financing, Home loans, affordable agricultural loans with a guarantee up to 70% of the acquired loan.Net workings with internationals hence clashing customers expectations. Standard Bank group operates in more than 37 countries worldwide hence form a large network with their customers. This means customer can easily operated to any of Standard Bank group branch conveniently.Security system in the branches. The Bank has invested much on engineering science especially on security hence provide insurance of customer assets both financial and non financialWide range of currency, due to its wide network coverage the Bank operates with a range of currency hence become more convenience to more of its customer compare to local Banks in TanzaniaWeather index insurance in agricultural products. More recently Agriculture in Tanzania has become a top priority nation agenda. Stanbic Bank Tanzania offer affordable loans with guaranteed to 70 percent to its customers. Apart from that the bank has adopted Weather index insurance in connection with agricultural loans. This has attracted more customers to operate with Stanbic Bank.WeaknessSmall branch network in Tanzania,-Currently Stanbic Tanzania has on 11 branches in Tanzania which in this case do not reach its customer in most of the regions.Apart from short Branch networ ks, Stanbic Bank has been focusing more on corporate clients leaving behind the retail customer occupying the big populations in Tanzania.OpportunityBranch network expansion in other regionRetail bankingCompetitive products not offered in other areasThreatsFraudulent as it not local as transnational arrangingCompetitionChapters 2 system mental synthesisWhat is formation?Organisation is defined as group of individuals, large or small that cooperate under direction of executive leadership in accomplishment of certain common objective (by Keith Devis). Louis defined governance as a process of identifying and grouping the work performed, defining and delegating responsibility and authority and establishing relationship for the purpose of enabling people to work most impelling together to accomplish the indented objective. Organisation can also be defined as form of any human association for attainment of common purpose. From above definitions it is throw that any ecesis turn o ver main four components namely task, people, complex body part and Technology. Task is the purpose of an agreement existence. Every organisation has specific objectives to be accomplished that define its existence by producing outputs in terms of goods and services. People are the workforce or human part of the organisation which help in performing different function in the organisation. To ensure that different task are well coordinated organisation must relieve oneself organise which tells the basic arrangement of people in the organisation. Technology is the intellectual and mechanical process used to transform inputs into products and services.Definition and events of organisation structureMintzberg,( 19792) defined organisation structure as the sum total ways in which it divides its labour into distinct task and achieves the coordination among them Organisation structure is framework of policies and rules within which lines of authority, communication and rights and duti es of people are identified and arranged. Mintzberg get along differentiated Organisation structure to be formal or informal. Roles, power and responsibilities are delegated, controlled and coordinated through the organisation structure. Organisation structure also determines how communication is done amongst levels of management. The type of the organisation structure mostly depends on objectives and strategies set by of the organisation to achieve the objectives. In organisation with a centralized structure, most of the decisions are centered to the top management while in decentralised structures powers for decision making is distributed where departments throw away varied degree of autonomy.The organisation structure determine the progress in which it operates and its performance. The Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees. The structure also determines level of resources util ization, it also monitors the activities of the organisation and organisation structure promotes the accountability for areas of work.The infatuated organisation structure will hinder the success of the organisation business. Organisational structures should aim to maximize the efficiency and success of the Organisation. An effective organisational structure will facilitate working relationships between various sections of the organisation. It will retain order and command at the same time promoting flexibility and creativityThe brassal structure is mainly influenced by internal factors such as size, product and skills of the workforce influence. The range of mountains of command will lengthen and the spans of control will widen as the business of the organisation. The higher(prenominal) the level of skill each employee has the more the business will make use of the matrix structure to maximize these skills across the organization.Burns and Stalker (1961) introduced the touch se nsation of two different types of structure i.e. The Mechanistic structure which is characterised by rigid divisions of activities, clearly defined roles and hierarchically organised authority and The Organic Structure which consists of more fluid and flexible working arrangements.OrganicMechanisticChannels of CommunicationOpen with free reading flow throughout the organizationOperating stylesAllowed to set out freelyAuthority for decisions ground on the expertise of the individualFree AdaptationBy the organization to changing circumstanceEmphasis on getting things doneunconstrained by formally laid down proceduresLoose informal controlwith emphasis on norm of cooperationFlexible on-job deportmentpermitted to be shaped by the requirement finis Makingparticipation and group consensusHighly structured, cut back information flowMust be uniform and restrictedBased on formal line management positionReluctant AdaptationEmphasis on formally laid down proceduresTight controlConstrained on-job behaviourOnly superiors make decisionsFirms with Mechanistic structures pursue centralised decision making arrangements, strict enforcement of adherence to rules and procedures, rigid control over information content and flows, and carefully designed reporting relationships (Slevin and Covin, 1997). Organic structure on the other delve, reflects an organisations emphasis on delegation, participation, creativity, openness and adaptability (Brouthers et al, 2000). Mechanistic structures are preferable for analyzing new products and processes and for implementing such entrepreneurial endeavors, as concentrated power much prevents imaginative solutions of riddles. On the other hand Organic structures are enhancing the use of rational strategic decision-making by providing the flexibility wished to take advantages of market opportunities or minimize a competitive threat. The pursuit of shareholders value by private firms whitethorn be facilitated by the flexibility afforded by Organic structures. Hence it also proves the positive relationship between organic organization structures and private ownershipMechanistic organization tends to offer a less suitable environment for managing the creativity and the innovation process. On the other hand organic system is adapted to solve problem in unstable conditions, when new and unfamiliar problems arise.This entails the importance of designing an effective organisation structure which will be flexible and able to respond to afterlife demands and development. The effective structure will be able to adapt changing environmental influences and also will be able to provide social atonement for employees in the organisation. A poor organisational structure make good performance impossible no matter how good individual Managers may be. Poor structures are likely to have low motivation and morale to employees, slow and poor decisions, not cost effective and they are likely not to alertly respond to new opportuniti es. at that place are two specific principal of general interest in when structuring the organisation i.e. the span of control and the chain of command which need to be balanced in designing the effective organisation structure although there is no a right combination effective to every organisation.. suspender of controlMullins 2009 defines span of control as the weigh of subordinates who report directly to a given managing director or supervisor. V.A. Graicunas developed a mathematical formulation for span of control which show the limitation of number of subordinates who can effectively be supervised by a Manager. The number of subordinates is determined by total direct and cross relationshipsR= n (2n/n+n-1)Where n is the number of subordinates and R is the number of interrelationships. Urwick supported the idea of Graicunas and suggested that span of control should not put across 5 and at most six direct subordinates whose works interconnect. so far from Woodwards study sp an of control varies from organisations depending on type of technology and production systems. Mullins further pointed other factor influencing the span of control includesNature of the organisation, complexity of work, range of responsibilities, similarity of functionAbility and personal qualities of the double-deckerAmount of time manager is available to spend on subordinatesAbility and training of subordinatesEffectiveness of co-ordination nature of communicationPhysical location of the organisationLength of the command chain importance of span of controlWith wider span of controlIt is difficult to supervise subordinates effectively and may stress more the mangersPlanning and development, training and control may ownWide span of control may limit opportunities to growToo wide span of control may result to slowness to adapt to deviatesOn the other hand with too narrow span of controlIt may lead to problem of coordination and consistency in decision making and hinder effective communication across the organisationMorale and initiative of subordinates may suffer due to close to a level of supervisionIt increases administrative costsIt can lead to additional level of authority in the organisation creating un undeniable long chain of command.Chain of commandThis refers to the number of different levels in the structure of the organisation, the chain, or the hierarchical command. The chain of command establishes the vertical graduation of authority and responsibility and framework for superior-subordinate relationship. A clear line of authority and responsibility is necessary for the effective operations of the organisations. Few chains of command will help decision making and fasten communication in the organisation.Types of organisation structuresTall organisation structuresA tall organisation structure has relative many levels of management and supervision with long chain of command from the top to the bottom of the organisation. Tall structure normally d o not exceed 8 levels of management because number of levels decrease span of controls. The tall organisation structures have the following advantage mates of control is narrow where each manager has small number of employees to supervise hence easy to control.There is clear management structureThere is clear distinction on function of each layer hence clear line of responsibility and controlIn the tall organisation structure there is clear succession and promotion ladder.However there is some disadvantage of the Tall organisation structureFreedom and responsibilities for each employee is very restrictedThere is slow decision making as approval may be necessary from each level of authority.Communication is slow as it takes place through many levels of managementTall structure has high costs of management as managers for each level are paid more than their subordinates.Flat organisation structureOn the other hand unlike tall organisation structure a flat organisation have relatively few layers or may be just one layer of management. This means that there is shorter and wide span of control. Small organisations usually opt for flat organisation structure since it has small number of management layers. Flat organisation structure there is greater communication between Management and employees which influence better team savour and it is less bureaucracy hence quick decision making. Flat structure has less cost of Management due to fewer level or layers of management. However among other constrain of flat organisation structure includesEmployees may be controlled by more than one manager hence employee may be unlogical on the reporting channels,Organisation growth may be hindered with this type of structure,Structure is limited to small organisations and hence do not fit to big organisationsFunction of each department or person could be distorted and amalgamate into the job roles of others.Hierarchical organisation structureAn organisation where employees are be at various levels within the organisation is known as hierarchical, each level is one above the other. At each level in the sequence, a person has a number of workers directly reporting to him/her, within their span of control. Under this type of structure there is a tall hierarchical organisation which has many levels and a flat hierarchical organisation will only have a few. The way authority is organized is a typical profit shape. A traditional hierarchical structure clearly defines each employees role within the organisation and defines the nature of their relationship with other employees. Hierarchical organisations are often tall with narrow spans of control, which gets wider as we move down the structure. They are often centralised with the most important decisions being taken by senior management. In the twentieth century as organisations grow bigger, hierarchical organisations were popular because they could ensure command and control of the organisation. However with t he advent of globalisation and widespread use of technology, in the 1990s tall hierarchical organisations began to downsize and reduce their workforce. Technology was able to carry out many of the functions previously carried out by humans.The Hierarchical Organisations have the following main advantagesAuthority and responsibilities are clearly definedThere is a clear defined career growth of members of the organisationThe hierarchical organisation structure create environment which favour effective use of specialist managersThe structure makes employees to be very loyal to their department within the organisation.On the other hand hierarchical structure has disadvantagesThis structure tend to be bureaucratic and respond slowly to changing so as to meet customers of necessity and Markets within which the organisation operatesPoor communication within the organisation especially for horizontal communicationPoor decision making as it may only focus to individual department rather tha n the organisation as a whole.Centralised and decentralised organisation structureIn a centralised organisation head office (or a few senior managers) will retain the major responsibilities and powers. Conversely decentralised organisations will spread responsibility for specific decisions across various outlets and pass up level managers, including branches or units located away from head office/head quarters. An example of a decentralised structure is Tesco the supermarket chain. Each memory of Tesco has a store manager who can make certain decisions concerning their store. The store manager is responsible to a regional manager.Organisations may also decide that a combination of centralisation and decentralisation is more effective. For example functions such as accounting and purchasing may be centralised to save costs. Whilst tasks such as recruitment may be decentralised as units away from head office may have staffing needs specific only to them. Certain organisations implem ent vertical decentralisation which means that they have handed the power to make certain decisions, down the hierarchy of their organisation. Vertical decentralisation increases the input people at the bottom of the organisation chart have in decision making. Horizontal decentralisation spreads responsibility across the organisation. A good example of this is the implementation of new technology across the whole business. This implementation will be the sole responsibility of technology specialists senior(a) managers enjoy greater control over the organisation.The use of standardised procedures can results in cost savings.Decisions can be made to benefit the organisations as a whole. Whereas a decision made by a department manager may benefit their department, but disadvantage other departments.The organisation can benefit from the decision making of experienced senior managers.In uncertain time the organisation will need strong leadership and pull in the same direction. It is bel ieved that strong leadership is often crush given from aboveDisadvantagesSenior managers have time to concentrate on the most important decisions (as the other decisions can be undertaken by other people down the organisation structure.Decision making is a form of empowerment. Empowerment can increase motivation and therefore mean that staff output increases.People lower down the chain have a greater understanding of the environment they work in and the people (customers and colleagues) that they interact with. This knowledge skills and experience may enable them to make more effective decisions than senior managers.Empowerment will enable departments and their employees to respond faster to changes and new challenges. Whereas it may take senior managers longer to appreciate that business needs have changed.Empowerment makes it easier for people to accept and make a success of more responsibility.(http//www.learnmanagement2.com/)Matrix Organisation StructureMatrix organization is a n attempt to coincide operating(a) and excellent project organizations to couple the positive aspects of both and minimize the negative. Matrix organisation structure is widely used in many industries such as automotive industry. Each staff member is a member of 2 distinct organizationsAdvantages of matrix organisation structure jump as a point of emphasis PM takes the responsibility for managing the project.Project has reasonable access to all required resources without having to maintain them draws from the functional resource pool as requiredLess anxiety about what happens when the project is completedResponse to client is as rapid as pure projectProject has access to the administrative units of the parent firm to maintain consistency w/ policies, practices and proceduresWith several projects in work, matrix offers a better companywide balancing of resourcesMatrix organizations span the extremes of the organization spectrum from functional to pure project.Disadvantages incl udeDelicate balance of focus of decision making power between Project Manager and functional managerMultiple projects have to be monitored as a set to derive the benefits of a matrix organizationStrong matrix organizations have problems shutting down projects similar to pure project organizationsDivision of decision making responsibilities between Project Manager (administrative decisions) and functional manager (technological decisions) is complex and not so clear for the operating Project ManagerProject members have at least two bosses, the functional and the Project Manager. This can lead to confusion and disorder.Stanbic Bank Tanzania Organisation structureBased on aforementioned types of organisation structure and their feature Stanbic Bank Tanzania has adapted flat organisation structure with wider span of control and few levels of authority. In the Stanbic bank structure there is greater and quick communication between Management and employees which influence better team spir it and it is less bureaucracy hence quick decision making. The structure has less cost of Management due to fewer level or layers of management. However Stanbic Bank organisation structure has a number of disadvantages such as employees may be controlled by more than one manager hence employee may be confused on the reporting channels. This type of structure may hinder organisation growth as the case we have seen with Stanbic Tanzania with only 11 branches countrywide compared to other bank like bailiwick Microfinance Bank with 138 branch and was established 1997.function of each department in this type of organisation structure could be distorted and amalgamated into job of others. Flat organisation structure is normally limited to small organisation hence may not be suitable for a fast growing with large network Bank worldwide like Standard Bank group in which Stanbic bank is part of.Recommended organisation structureChapter 3 Organisation culture and behaviour3.1 Organisation cu ltureOrganisational culture is a system of shared values and beliefs about what are important, what behaviours are appropriate and about feelings and relationships internally and externally .Values and cultures need to be unique to the organisation, widely shared and reflected in daily practice and relevant to the company purpose and strategy. But there is no single best culture (http//www.cipd.co.uk/research/_visionandvalues). On the other hand Armstrong, (2007) defined organisation culture as the pattern of values, norms, beliefs, attitudes and assumptions that may not have been expressed but shape the ways in which people in organizations behave and things get done. Other definition for organisation culture includesA pattern of basic assumptions invented, ascertained or developed by a given group as it learns to cope with the problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to these problems. Schein (1985)Culture is the commonly held beliefs, attitudes and values that exist in an organization. Put more simply, culture is the way we do things around here Furnham and Gunter (1993)Culture is one of those terms that is difficult to express definitely, but everyone knows it when they sense it. whizz can tell the culture of an organization by looking at the office arrangement of furniture, what they boast about, what employees wear, language used etc. similar to what you can use to get a feeling about someones personalityThe concept of culture is principally important when attempting to manage organisation change. near managers and other practitioners have realised that, despite the best-laid down plans, organisational change should include not only changing structures and procedures, but also changing of the corporate culture as well.Most of the literature generated over the past decade about the co ncept of organizational culture especially in regards to understanding how to change organizational culture. Organizational change efforts are noticed to fail most of the time. These failures have been related to lack of understanding about the strong role of culture and the role the it plays in organizations. That has become one of the important reasons that many strategic planners currently place more emphasis on identifying strategic values as the way they do explosive charge and vision.Successful organisations are characterised by strong values and a strong guiding vision that communicates what behaviour is appropriate and what is not.