Understanding your organization the role that culture ethics play in your workplace
This paper is a comprehensive analysis of the Commercial Bank of Qatar and aims to provide an understanding of the organization.
CBQs Organizational Chart
Structure of an organization is determined by the size, type and management style of the organization. CBQ has adopted the divisional management structure. This structure enables an organization to be divided into smaller units with little autonomy.
The above organizational structure combines maximum adaptability and flexibility with total cohesion. C.E.O is the head of the organization and hence responsible for managing strategic affairs. Deputy C.E.O is responsible for managing the Al Safa Islamic Division of CBQ. On the other hand, Chief Operating Officer (COO) is responsible for management of the various banking services provided by CBQ (CBQ.com).
The Chief Finance and Strategy Officer is responsible for overlooking the Finance and Strategic Planning function of CBQ. The Chief Risk Officer is responsible for overall risk of the organization. Chief of Human Resources is responsible for overlooking the human resources function of the organization. Executive GM
Chief Legal Officer Charge on the other hand is responsible for legal affairs of the organization.
EGM, Retail Banking
He is responsible for overlooking and providing strategic direction to the consumer banking division of CBQ.
EGM, Corporate Banking
He is responsible for overlooking and providing strategic direction for the corporate banking division of CBQ.
EGM Investment Banking
The role of the EGM in Investment banking is to ensure that this function of the bank is working in accordance with its objectives.
My Role (Retail Branch Manger)
The job description for the retail branch manager entails overall management of the branch, driving branch sales targets, ensuring efficient customer service.
Retail manager is also responsible for working towards maximizing new business opportunities, management of risk and strengthening existing relationships.
The uses of accounts, money, and financial transactions in CBQ
At CBQ nearly 50 of the commercial and corporate loan books revolve around the contracting and the real estate markets exposure. There are a number of documents used in transactions within the bank, some of them include
Letters of credit filled up by clients who want to credits facilities from the bank.
Application forms filled by new members being recruited to the bank
Guarantee applications these are forms filled by guarantors who guarantee other clients
Demand draft requests the banks send out these forms to clients reminding the client of outstanding payment.
Fund transfer requests these are forms filled by clients requesting the bank to transfer money to other accounts either internally or externally.
Cheques brought by clients to be deported to their accounts, the cheque can be either from our bank or other banks.
Cash deposit slips filled by clients when depositing their cash.
Withdrawal slips signed by the clients after withdrawing their cash from the bank.
Cash Receipt received by the bank upon purchasing various items from its suppliers.
LPO (Local Purchase Orders) Given by the bank to suppliers who are to supply huge amounts of goods or services.
Delivery Notes signed by the bank upon receiving certain goods from its suppliers
Financial indicators
In assessing the financial performance of an organization the following need to be considered
Balance sheet
It provides an insight into the financial position of an organization at a specified date (usually period end date). It provides a gross overview of the banks assets, liabilities and shareholders equity.
Trading and profit and loss account
Also known as the income statement, it provides an overview over the financial performance of an organization over a specified period. Profit and loss account provides monetary details of income and expenses of a business.
Share price performance
If the bank is recording positive results, it is certain that its share price on the stock market will go up enticing new investors to invest in the bank, whereas if the financial performance is poor then will result in investors selling their shares forcing the share price to fall.
Key highlights of financial performance (of FY2008)
Operating income increase by 42.5 hitting QR 2.8 billion from QR 1.9billion
Net profit shot by 22.4 to reach QR 1.7 Billion
Net assets went up by 35 to hit QR 61.billion
CBQs Sources of Finance
The main sources of finance in any entity are debt and equity finance. Both sources of finance have significant benefits and therefore an optimal mix of both these sources is recommended in order to effectively utilize these sources of finance. Finance raised through equity can be achieved either by retaining an entitys earnings i.e. by re-investing them in the business or through a new stock issue. Debt financing on the other hand has tax benefits and hence is an attractive source of finance however excessive borrowing can raise the gearing position of a company to alarming levels (Charles Jones, 26).
Internally generated capital
Internally generated sources of capital for Commercial Bank of Qatar comprise of the banks assets and retained earnings. Retained earnings a risk free source of finance and CBQ has continued to pay appropriate dividends along with adequate re-investment of retained earnings.
External borrowing
The bank can also increase its finances through borrowing from external sources. Interest rates a major concern when utilizing external borrowing and significantly depend on the gearing position of an entity. Commercial Bank of Qatar is not highly geared and has a moderate level of borrowings.
Stock issue
Commercial Bank of Qatar could also raise finance through a new stock issue. Although a stock issue is usually interest free and comprises of nominal transaction costs but could result in significant dilution of the present shareholding of the bank. Therefore a rights issue could be appropriate before making a new stock issue (EconomyWatch.com).
Economic and political impacts and globalization
CBQ is not exempt from the global impact of policies formulated by the World Bank and the International Monetary Fund. Any proposed changes in their policies significantly affect the operations of CBQ as well.
Increased globalization has greatly affected business worldwide. In recent years, Commercial Bank of Qatar has expanded on a global scale. It has opened new branches in different geographical regions and hence become an international bank. However due to increased internationalization of its functions, CBQ has become exposed to foreign exchange risk. Exchange rate risk is basically the risk that foreign currency receipts or payments might devalue due to adverse exchange rate movements and is among the biggest threats faced by organizations operating globally. Therefore, CBQ also needs to take stock of the situation and employ both hedging and non-hedging techniques in order to mitigate foreign exchange risk. Non hedging techniques are techniques which do not utilize derivatives in order to mitigate foreign currency risk. Hedging techniques are those techniques which utilize derivates in order to overcome the exchange rate risk of an organization.
CBQs Organizational Culture
The Commercial Bank of Qatar comprises of a strong organizational culture which has developed over the years. It reflects both respect and dignity. Senior management at CBQ is adequately authoritative and understands the need to empower employees in order to increase efficiency of the organization. CBQ boasts of a conducive work environment and therefore all employees in the organization are required to deal with their fellow employees in a respectful manner. Furthermore, CBQ has also ensured the provision of an appropriate channel for employees to voice their concerns. Bureaucracy is considered to be a norm in banking institutions and is something which is found in the worlds largest banks as well. It is the major reason behind the existence of internal politics in banks. CBQ doesnt claim to have a non-bureaucratic culture and it is imperative that there would be at least some internal politics. However, since CBQ has resolved to become among the top international banks steps have been taken to minimize bureaucracy and subsequent internal politics. (CBQ.com, 2010).
Solving problems
CBQ has a stringent ethical policy which is followed in both letter and spirit. Since the bank continues to pursue increased internationalization therefore it rightfully understands the need to have a sound ethical policy and its need to be understood across the organization. For example an employee should voice his or her concern with the reporting line manager first. The onus is on the line manager then to do the needful. The line manager needs to accommodate the concerns of both parties to dispute and resolve the issue in accordance with the banks policies and principles. Where an employee has a dispute with the line manager, it is only then that an employee should directly voice his or her concern with the HR personnel (Connolly, 10).
Corporate Social Responsibility
In order to ensure Qatars industrial development, the bank has sponsored various government projects in various fields (AMEinfo.com). CBQ is actively engaged in community based activities such as educational improvement, environmental management, sponsorship of healthcare services, infrastructural development, etc.
Sustainability is a pressing issue for organizations around the world. Although CBQ is not an industrial concern but CBQ has taken adequate measures to ensure sustainability of the family health. CBQ in collaboration with the Qatar Foundation have financed the establishment of the Qatar Center for Marital Counseling. This center vows to promote healthy living standards for families in Qatar.
Conclusion
Organizational culture and workplace ethics plays an important role in corporate management. Understanding of the organizational culture enables correct decision making which doesnt result in discrimination of employees and in fact seek to fulfill their needs and expectations. An adequate understanding will also assist in reshaping the organizational culture as and when needed.
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