Case Study Stanbic Bank Tanzania Essay

Case Study Stanbic confide Tanzania EssayStanbic Tanzania is unrivaled of members of the standard bound chemical root word. Idea of establishment of Standard Bank Group was brought by base of line of descent men in 1857 receiv commensurate to economic prosperity in bearing Elizabeth in entropy Africa, which was the major fashion and was accustom to the export of wool. The man behind the Idea was John Paterson who with familiar spirit demarcation men wanted to establish the Standard bank of Port Elizabeth. This idea did not fix due to fear of competition from the live of the deuce banks. Paterson sailed to England to search for support of British Investors. Patersons efforts were victoryful and in April 1860, a prospectus for The Standard Bank of British entropy Africa was published in London. In 1862 The Standard Bank of British South Africa was established. On 15 October 1862 the bank was in incorporated and registered as a limited liability accompany. Its pil eus was fixed at 1,000,000 with 10,000 sh ars of 100 all(prenominal). The Standard Bank of British South Africa operation commenced in 1863 and Port Elizabeth remained to the Bank Head Quarters. In 1883 the in putigence service British was dropped from the name.In 1962 a subsidiary company was formed to dribble business in South and South West Africa (now Namibia) under the banks overaged name. The name Standard Bank Limited was adopted for the holding company in England (subsequently to become Standard Chartered Bank plc). Standard Bank Group was established in 1969 as Standard Bank investment Corporation the holding company of SBSA. Standard Chartered sold its 39% stake in Standard Bank Group in 1987, transferring make love ownership of the holding company to South Africa.The Standard Bank group, base in Johannesburg, South Africa, has total assets of about US$81 gazillion and employs about 35 000 hatful worldwide. Its network spans 17 sub-Saharan countries (including So uth Africa) and extends to 21 countries on opposite continents, including the key pecuniary centres of Europe, the United States and Asia. In addition to banking, Standard Bank has a strategical interest in the policy industry through its entertain of the Liberty Group, maven of Africas steer life mightinesss and financial work groups.The group has adept of the spoiledgest single networks of banking work in Africa. through with(predicate) this network we bring home the bacon a wide look-a wish of banking products and services which argon delivered through to a greater extent than 1 000 points of representation in 17 African countries (including Tanzania). We ar active in international and tag-border proceeding and in those aras liaise foldly with Standard Bank Corporate and investing Banking and Standard Bank London.We offer a wide straddle of financial products and services in the following marketsPersonalWe are committed to providing our customers with the secu rity, doojigger and tax for m 1y they expect from an international bank with African roots. As such, we offer you a range of products and services that enhances your banking experience.BusinessWe recognise that as a Business Banking customer you go bad a busy life. Through our comprehensive service offering we aim to simplify your financial proceedings so you can spend much than season on your business and less time on your banking.Corporate and InvestmentOur corporate body organise views that we are able to provide customized products and services to both established customers as intimately as lateer, entrepreneurial companies. By focusing on modify solutions and ongoing financial product development, we are committed to delivering solutions that support our clientssuccess where it matters most.Stanbic Tanzania contextStanbic 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 severalizeesCity severalise in Dar es SalaamMain offset printing 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 determine of Standard Bank groupOur surveyWe aspire to be a leading emerging markets financial services ecesis.Stanbic bank core valuesServing 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 needs, provided that everything they do for them is based on sound business principles.Growing our lotStanbic Bank encourages and helps their people to develop to their full potential, and measure their leaders on how nearly they grow and challenge the people they lead.Delivering to shareholdersThe Standard bank un derstands that they earn the honorable to exist by providing appropriate immense-term returns to their shareholders. The bank tries extremely sound to meet motley targets and deliver on their commitments.Being proactiveStandard Bank strives to stay ahead by anticipating rather than reacting, but their actions are al agencys carefully considered.Working in teamsThe bank, and all aspects of their work, is interdependent. The bank likewise appreciates that, as teams, they can achieve much greater things than as various(prenominal)s. They value teams within and across 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 apiece early(a)(a)Standard Bank provide has the highest regard for the dignity of all people. They do respect each some other and what Standard Bank stands for. The bank recognises that on that point are corresponding obligations associated with our separate rights.Upholding the highest takes of integrityThe banks entire business model is based on curse and integrity as perceived by its stakeholders, especially their customers.SWOT analysisStanbic strengthsPerformance oriented (rewards) stave. Stanbic Bank pulmonary tuberculosiss Performance index as a key to success. Staffs are rewarded based on their performance. This has built a civilization 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 discriminate to other banks. Among other products includes, Capital and investment products, Assert and vehicle financing, fireside loans, affordable unsophisticated loans with a guarantee up to 70% of the acquired loan.Networking with internationals and so meeting customers expectations. Standa rd Bank group operates in more than 37 countries worldwide hence form a extended network with their customers. This performer customer can easily operated to any of Standard Bank group branch conveniently.Security system in the branches. The Bank has invested much on Technology especially on security hence provide insurance of customer assets both financial and non financialWide range of funds, due to its wide network coverage the Bank operates with a range of currency hence become more convenience to more of its customer equalize to local Banks in TanzaniaWeather index insurance in agricultural products. More recently Agri close in Tanzania has become a wind priority nation agenda. Stanbic Bank Tanzania offer affordable loans with guaranteed to 70 per centum to its customers. apart(predicate) 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 grimace do not reach its customer in most of the regions.Apart from weeny Branch networks, 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 region sell bankingCompetitive products not offered in other areasThreatsFraudulent as it not local as multinational presidencyCompetitionChapters 2 musical recording expressionWhat is system?Organisation is define as group of individuals, large or small that cooperate under direction of executive leading in accomplishment of certain common objective (by Keith Devis). Louis defined governing as a process of identifying and grouping the work performed, defining and delegation certificate of indebtedness and license and establishing relationship for the purpose of enabling people to work most useful together to accomplis h the indented objective. Organisation can to a fault be defined as form of any human linkup for attainment of common purpose. From above definitions it is opened that any physical composition come main four components namely task, people, twist and Technology. Task is the purpose of an musical locating public. Every arrangement has specialised objectives to be accomplished that define its existence by producing outputs in cost of goods and services. People are the workforce or human part of the governing body which help in performing diametric function in the validation. To ensure that incompatible task are well coordinated geological formation must induct expression which tells the basic arrangement of people in the boldness. Technology is the intellectual and mechanical process utilise to transform inputs into products and services.Definition and lineaments of governance organiseMintzberg,( 19792) defined governance social fundamental law as the sum total ways in which it divides its labour into lucid task and achieves the coordination among them Organisation mental synthesis is framework of policies and rules within which lines of authority, communion and rights and duties of people are identified and arranged. Mintzberg get on differentiated Organisation structure to be nut or informal. Roles, power and responsibilities are delegated, controlled and coordinated through the organisation structure. Organisation structure in like manner arrests how communication is done in the midst of levels of guidance. The typesetters case 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 closes are centered to the guide management while in de centralise structures powers for decisiveness qualification is distributed where incisions guide varied degree of autonomy.The organisation structure det ermine the approach in which it operates and its performance. The Structure allows the responsibilities for different functions and processes to be clearly allocated to different incisions and employees. The structure also determines level of resources utilization, it also monitors the activities of the organisation and organisation structure promotes the accountability for areas of work.The erroneous organisation structure lead hinder the success of the organisation business. Organisational structures should aim to maximize the efficiency and success of the Organisation. An good organisational structure leave alone facilitate working relationships mingled with various sections of the organisation. It will accommodate order and direct at the same time promoting flexibility and creativenessThe organizational structure is mainly influenced by internal factors such as size, product and attainments of the workforce influence. The orbit of command will lengthen and the spans of control will widen as the business of the organisation. The higher the level of skill each employee has the more the business will make use of the hyaloplasm structure to maximize these skills across the organization.Burns and Stalker (1961) introduced the notion 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 discourseOpen with free information tend throughout the organizationoperating(a) stylesAllowed to vary freelyAuthority for finishsBased on the expertise of the individualFree AdaptationBy the organization to changing circumstance tenseness on getting things doneunconstrained by formally fixed gloomy proceduresLoose informal controlwith emphasis on norm of cooperationFlexible on-job behaviorpermitted to be shaped b y the requirement end Makingparticipation and group consensusHighly structured, restricted information flowMust be uniform and restrictedBased on formal line management positionReluctant AdaptationEmphasis on formally laid down proceduresTight controlConstrained on-job doingsOnly superiors make decisionsFirms with Mechanistic structures pursue centralised decision reservation arrangements, strict enforcement of adherence to rules and procedures, rigid control over information satiate and flows, and carefully designed reporting relationships (Slevin and Covin, 1997). Organic structure on the other hand, reflects an organisations emphasis on delegation, participation, creativity, openness and adaptability (Brouthers et al, 2000). Mechanistic structures are preferable for analyzing tender products and processes and for implementing such entrepreneurial endeavors, as compressd power often prevents creative solutions of problems. On the other hand Organic structures are enhancin g the use of logical strategic decision-making by providing the flexibility needed to take advantages of market opportunities or minimize a competitive threat. The pursuit of shareholders value by snobby firms whitethorn be facilitated by the flexibility afforded by Organic structures. in that locationfore it also proves the decreed relationship between constitutional organization structures and personal ownershipMechanistic organization tends to offer a less sufficient 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 future demands and development. The effective structure will be able to adapt changing environmental influences and also will be able to provide social satisfaction for employees in the organisation. A curt organisational structure make good performance unimaginable no matter how good individual Managers whitethorn be. Poor structures are likely to hand over low motivation and morale to employees, slow and poor decisions, not price effective and they are likely not to readily respond to new opportunities. in that respect are two specific spark advance 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 crew effective to every organisation..Span of controlMullins 2009 defines span of control as the derive of subordinates who report unconditioned to a precondition manager or supervisor. V.A. Graicunas developed a mathematical formula for span of control which limn the limitation of identification 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 choke 5 and at most six direct subordinates whose works interconnect. However from Woodwards understand span 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 managerAmount of time manager is available to spend on subordinatesAbility and educate of subordinates forte of co-ordination nature of communicationPhysical location of the organisationLength of the command chainImportance of span of controlWith wider span of controlIt is effortful to supervise subordinates effectively and may stress more the mangersPlannin g and development, training and control may sufferWide span of control may limit opportunities to growToo wide span of control may result to slowness to adapt to changesOn the other hand with too narrow span of controlIt may lead to problem of coordination and unity 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 beIt can lead to additional level of authority in the organisation creating unnecessary 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 business 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 structures long-stalked organisation structuresA gangling organisation structure has sex act many levels of management and supervision with long chain of command from the top to the bottom of the organisation. Tall structure normally do not exceed 8 levels of management because number of levels decrease span of controls. The tall organisation structures study the following advantageSpan of control is narrow where each manager has small number of employees to supervise hence easy to control. in that respect 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 required from each level of authority.Communication is slow as it takes erupt 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 contradictory tall organisation structure a flat organisation devote relatively few layers or may be just one layer of management. This stringents 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 weaken team spirit and it is less bureaucratism 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 involved on the reporting channels,Organisation growth may be hindered with this type of structure,Structure is limited to small organisations and hence do not convulsion to big organisationsFunction of each department or person could be distorted and amalgamate into the job roles of others. hierarchal organisation structureAn organisation where employees are ranked at various levels within the organisation is know 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 lone(prenominal) have a few. The way authority is organized is a typical pyramid shape. A handed-down 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(a) 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 the 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 needs 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 than the organisation as a whole.Centralised and decentralised organisation structureIn a centralised organisation head mail (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 lower 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 retentiveness of Tesco has a mentionage manager who can make certain decisions concerning their store. The store manager is responsible to a reg ional manager.Organisations may also influence that a combination of centralisation and decentralisation is more effective. For example functions such as accounting and purchasing may be centralised to redeem 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 implement vertical decentralisation which means that they have handed the power to make certain decisions, down the hierarchy of their organisation. just decentralisation increases the input people at the bottom of the organisation graph 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 specialistsSenior managers enjoy greater control over the organisation.The use of like procedures can results in cost savings.Dec isions can be made to gather 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 times the organisation will need well leadership and pull in the same direction. It is believed that strong leadership is often better(p) 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.Empowe rment will enable departments and their employees to respond scurrying 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 an attempt to combine running(a) and pure 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 hyaloplasm organisation structureProject 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 disquiet about what happens when the project is completedResponse to client is as speedy 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 includeDelicate balance of focus of decision making power between Project Manager and functional manager two-fold 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 wonder and disorder.Sta nbic 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 spirit 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 National Microfinance Bank with 138 branch and was established 1997.function of each department in this type of organisation st ructure could be distorted and mix 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 elaboration and behaviour3.1 Organisation tillageOrganisational purification 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 germane(predicate) 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 mould of values, norms, beliefs, attitudes and assumptions that may not have been uttered but shape the ways in which people in organizations accept and things get done. Other definition for organisation culture includesA pattern of basic assumptions invented, discovered or developed by a given group as it learns to cope with the problems of external adaptation and internal desegregation 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) destination 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. One 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 personalityTh e invention of culture is principally important when attempting to manage organisation change. Most 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 concept 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 mission and vision.Successful organisations are characterised by strong values and a strong guiding vision that communicates what behaviour is appropriate and what is not.