Strategic Audit

Definition of Structure

The way of separate the tasks in OIB among the division labor.

Organisational Design in OIB.

The fundamental relationships(arrangements and forms)of the structure in maintaining balance/equilibrium among specializations with coordination and corporation.

In OD, there are characteristics. They are described below.

Hierarchy

Efficient and effective Hierarchy exist in OIB. This is one way that the Bank has devised it’s corporate journey. The Chairman and the Board of Directors, top, middle and the supervisory level management down to the level of “trainee” are represented along with their tasks, responsibilities and authority in this hierarchy. The Bank maintain specialization, coordination, cooperation through the hierarchy of the Bank.

The coordination of the hierarchy is supported by various “Policies”(Example-The Information Technology Policy, The Funds reinvestment policy of the Bank), the “procedures”(Example-Human Resources Procedures) the “Code of Business Conduct”(Example-not to divulge the personal information of a customer, liability to protect secrecy)

Purpose of the OD

The intention OD in the structure of OIB is to-

(a) Allocate resources for strategic objective achievement

(b) Allocate decision making power

Organisational Units(OU)-Definiton

An OU can be defined as a structural collection of people/purposes fundamentally engaged in reconciling, specializing, with coordination/corporation in contributing to achieve OIB’s overall objectives. The intensity for the successful use of OU depends on many factors. The Bank has considered the nature of the “Need”, then compared that with the objectives and if matched, then the Bank has gone for grouping to fulfill the need. The Bank has many different examples on this.

 Grouping based on economies of utilisation

OIB is an accumulation of many branches/departments such as, for example IT. By grouping IT to one location/identified few, the facilities could be made available to many(for example the “technology” and the “expertise” has been made available to all the branches eqally), there by exploiting the scale economies, other wise costs would have been manifold.

 Grouping based on economies of scale

A