The History Of Organizational Management Analysis

Published Date: 02 Nov 2017

OMA is a unique process adopted by organizations to assess the efficiency and performance of their management. This tool not only helps executives with an overview of manager’s strengths but also identify the area needs to be improved. Organizational culture also plays an important role in the analysis of management practice.

In Askri Bank, the organizational culture is seemed to be very strong. The Decentralized management approach is used with the cultural values like empowerment, recognition, affiliation and so on. OMA model checkpoint 360 individual feedbacks are used to generate and report about management groups in Askari bank. Each report identifies manager’s strength and area requiring further improvement.

The leadership skills of manages are typically rated through three groups: their boss, their direct reports d their Peers. OMA model contains summarized information about the strengths and development areas of the managers and direction for the necessary skills training needed to improve their performance. Askari bank OMA’s model contains 18 skills sets on the basis of which the management strengths are assessed:

Facilitates team success 2) Achieve results

Communicates effectively 4) motivates successfully

Provides direction 6) provides direction

Thinks creativity 8) instills trust

Works efficiently 10) delegates responsibility

Listen to others 12) works competently

Takes action 14) cultivates individual talents

Displays commitment 16) seeks improvement

Builds personal relationships 18) process information

The above skills sets process the OMA information and organizational development strategy is devised on the basis of this.

Internship Plan

Sr. No.

Starting Date

Ending Date

Name of Department

Duration (Days)

1.

30-04-2009

10.06.2009

MIS Dept.

Six weeks

Detail Description of The Task Assigned

Responsible for generation of computerized reports of all the depts. in Summit FT

Responsible to upload reports to HQ via FTP(file transfer protocol)

Help MIS officers in performing of their duties especially in hardware repairs or updating antivirus patches.

Maintaining daily transactions records

Sorting and finalization of bank customer files

Maintenance of reports on month end closing

Performed all those tasks which are assigned by my supervisor.

MIS Dept. of the Multan Branch:

As Askari bank Multan branch is the city’s largest branch with extended number of departments. To cope with the needs of each dept. and to facilitate the operation of the automated system of the bank, a complete MIS dept. works for the smooth working of the branch. The Hierarchy of the MIS dept. is shown below in a chart.

MIS Manager

Assistant MIS Manager

MIS Officer (Hardware)

MIS Officer (Software)

MIS Department Structure and Functions

Number of employees in MIS Dept.

MIS dept. in Multan branch is consisted of four staff members. The control of the said dept. is with MIS manager. MIS manager works under kind control of vice president/ Branch manager of Multan branch. MIS manager also assumes in-charge of all Askari bank branches in Multan city and responsible to report to Regional MIS manager at Askari regional office.

Assistant Manager MIS is responsible for supervision of MIS officers who further deals with hardware and software issues in the branch.

Responsibilities and Functions of MIS dept.:

Management information system helps in data collection and processing of raw data into useful and meaningful information and to disseminate to the other users when and where required. In fact, MIS is blood bone in now a days business culture that all decisions are made on the basis of information generated through MIS systems. Significant cost effective and time saving benefits are associated with the use of MIS in organizations.

Acknowledging the need of MIS system, Askari bank also invested lots of its funds to its MIS system to generate information in much fruitful way. In Askari bank, each level of management use variety of information systems according to their needs and requirements. Typically following information systems are very important to make best use of information:

Executive Support Systems (ESS)

Decision Support Systems (DSS)

Knowledge Work Systems (KWS)

Transaction Processing Systems (TPS)

The first two systems are used by the top management of the bank for decision making and devising strategies. The later systems are used by project management dept. of the bank at head office level to look after the processing of its current and future projects.

The last system (TPS) is very important in every organization because specially it becomes the basis of a business transaction. And on the top of these business transactions, reports are generated and modeled according to organizations needs like for forecasting, market attractiveness and potential in the market.

MIS dept. at the Askari bank Multan, mostly deals with the administration of this TPS system at the bank. Also reports on the basis of these TPS are forwarded to HQ.

The major responsibilities of this department include:

Security of data and equipment under jurisdiction

Responsible for dealing with networking and its related issues

To manage installation of ORACLE 9i and other related software and their maintenance on different machines (Server and clients)

Responsible for all administrative functions at operating systems and Database level like user’s management, profile creation, policy implementation and role management.

Responsible for taking backups of database at each day end.

Creation of computerized reports of all depts. In the bank and upload them to HQ via FTP

Responsible for checking all malfunctioned equipments

Help data warehousing team for data storage and data processing through creation of right reports

Responsible for daily, monthly and year end closing in the system and verify it with the manual records if any.

Sort out all discrepancies found in system-manual reliance.

Train employees on new software or on new technology

Responsible for maintenance of daily attendance register through figure recognition check in system.

Liaison with all depts. in the bank to support their day to day activities and help them if needed.

Updating of anti-virus patches on regular basis.

Responsible for arranging video conferencing system in the bank to arrange meetings of VP with senior level management.

Hardware and Software:

Following software are used by Askari Bank to function their banking:

Application Software

MS Office

NOD32 anti-virus Patch level 47

Adobe Reader

System Software

Following system software’s are used in Askari Bank:

Summit FT

EBS

Operating system (Window 7 and Linux) for clients

Windows 2003 server for mainframes (Server machines)

Hardware resources are used by the bank aligned to system requirements:

HP Personal computers

Dell Laptops (for Management only)

HP Printers

Canon Document Scanner

Networking Cards

Currency counter

Coin counter

Dell mainframes

Information LED’s

At Askari bank Multan, the local systems are connected to the server machine with the help of intranet. Each user in the bank is issued a unique user ID comprising of his/her payroll number. This helps in finding out the record of specific employee to maintain system logs. Client server architecture is used to manage the office for smooth functioning of the system in the bank which is secure and reliable worldly now days. The information is easily available when needed by the top management.

Support of Transaction Processing System (TPS) to other depts.:

TPS is a type of information system which facilitates the collection, storage, modification and retrieval of the information gathered through business transactions.

Askari bank has got contracts with several TPS vendors according to their business area or functional needs. Functional areas are like customers who visit banks and other who use online banking system, both systems are different and for each system Askari bank need different vendor’s TPS to meet different customer’s needs. So, to remain competitive in the market, Askari bank has make available plenty of information systems to facilitate its processing and dedicated MIS dept. staff is responsible for creating a data warehousing to generate the information on the basis of these TPS. Data warehousing technique is used to gather the information at one place and to make its access to concerned when required.

Payroll TPS:

This TPS system is used to record the employee master data. This application is mostly managed at HQ level or regional HQ levels but also access to the VP and AVP is provided by the Askari bank management to oversee any employee master record. This TPS also helps to log the attendance of the employees and at the end of the day, report generated by this system is forwarded to the headquarter by MIS dept. This system also helps in calculating bonus, incentives of employees on the basis of their performances.

VERISIS TPS:

Askari bank is responsible to deal with the regulatory laws in Pakistan. So this makes it necessary to investigate the record of each of their customer. This information system is connected the NADRA customer verification system. Each customer record is first verified to open a new account. The account opening dept. mostly use this TPS to open new account or to modify the details of any customer on the basis of Verisys. At Askari bank, the Account opening TPS is automatically linked with Verisys, as if banker wants to add record of any new employee, when he wants to save it and new window will appear to pass this information to Verisys. So the functioning of the process becomes automated.

ATM & EBS TPS:

Electronic billing solution is a unique feature of banking introduced several years ago. This information system is used by customers directly by paying their bills on ATM machines. ATM machines also work on the root of Information system linked to the Summit FT customer master record.

RTGS TPS:

Real time gross settlement TPS also used by Askari bank to minimize the credit risk involved in bank clearing system. RTGS helps to settle near real time basis across banks in different locations. RTGS facility is available at all Askari bank branches throughout the country.

NEFT:

To establish electronic fund transfer, this system is widely used by all banks in Pakistan to facilitate efficient and reliable transfer of funds.

Electronic Clearing Service (ECS):

ECS credit is an electronic clearing system that facilitates paperless transaction through an offline system. ECS credit facility is only available in few banks in Pakistan including Askari bank.

Mobile Banking:

Askari bank is pioneer in Pakistan to introduce mobile banking. Whenever a customer purchase any products through its debit or credit card, an automatic text will be forwarded to the customer to verify the transaction. Askari Bank’s dispute team deals with this issue if any theft or unauthorized transaction is done on customer’s debit or credit cards.

So, in short, Askari bank deals with number of information systems in the country. And all the above services are available at Askari bank Multan and are supervised by a dedicated MIS team.

Critical Analysis

Ratio Analysis

The information contained in the four basic financial statements is of major significance to various interested parties who regularly need to have relative measures of the company’s operating efficiency. Relative is the key word here, because the analysis of financial statements is based on the use of ratios or relative values. Ratio analysis involves methods of calculating and interpreting financial ratios to analyze and monitor the firm’s performance. The basic inputs to ratio analysis are the firm’s income statement and balance sheet.

Ratios

2009

2008

Current ratio

1.03

1.04

Total asst turnover

0.11

0.09

Debt ratio

0.93

0.93

Gross Profit margin

0.11

0.22

Operating profit margin

0.21

0.12

Net profit margin

0.22

0.26

ROA

0.02

0.02

RATIO ANALYSIS

Earning Asset to Total Assets

Earning assets are the assets which are very important for any company for the bank earning assets are the assets on which bank can earn its profit which may includes loans, advances, operating fixed assets and other assets on the loans and advances bank can make profit by giving or investing in somewhere so Askari Bank has increased its earning assets in the year 2009 as compared to the previous year that show the good trend in the profitability of the Askari bank and the customer believe on the Bank.

Ratio tells that on what percentage earning assets contribute the total assets. Well bank also has increased its earning assets ratio shows the more profitability of the bank as it can be shown by the profit and loss account of the 2009 that shows the net mark up income more for the year as compared to the previous year so bank is going gradually to the more profitability by giving more advances and loans.

Return On Earning Asset

This ratio indicates the how much of earning assets take part in making of the profit before taxation. This ratio is decreased during the year. Why is it so it has different reasons these are as follows

Profit before taxation was more in the previous year as compared to the year 2007 because bank has low expenses and less provision for the bad debts and also bank has small investments and limited loans and advances but in 2009 situation has changed and bank increased its loans and advances.

Earning assets were also low in the previous year as compared to the 2009 so overall ratio has been decreased but shows the good trend for the making of long term planning

Formula:

Profit after tax / earning assets

= 2,681,012 / 176636847

= .015

Loan Loss Coverage Ratio

This important figure is a reserve account to cover unexpected defaults on loans by borrowers. These are generally referred to as no performing loans. The higher the no performing loan and charge-off percentages, the higher the provision for loan losses should probably be. Consequently, this would reduce net income and earnings per share.

Well in the year 2009 bank’s this ratio has been increased to a great extent due to different reasons theses are as follows.

Profit before taxation is low for the 2009 due to more expenses because bank is in expanding mode that’s why its expenses are increasing day by day.

Provisions and bad debts also increased in the year 2009 because bank also has invested more in this year and ad more also granted more loans.

Loan To Deposit

Well there is a concept that bank’s loans are its assets while its deposits are liabilities. But if a bank has low deposits then obviously it will give low loans because bank gives its loans by the deposits and earn on the loans then pay mark up on the deposits to the customers.

Well bank has increased its loans to deposits ratio in the year 2009 showing its more deposits as well more loans and that is good for the bank to remain in the market and to penetrate in the market.

But profit has not increased with the same ratio because

Bank has low mark up rates

Bank has more capacity for provisions

Current Ratio

This ratio indicates the liquidity of the bank. Well this ratio has been decreased but nt much decreased during the year to a small extent due to

Bank has increased its deposits so liabilities have been increased.

Bank has increased its assets as well to overcome the liabilities.

So overall we can say bank is the liquid enough to pay its liabilities