A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses.
ROLE OF COMMERCIAL BANKS:
The commercial banks are described now a day by many agents of economic development and social change. Their functions and roles are undergoing revolutionary changes ,client coverage and extended beyond imagination. While many people believe that banks play only narrow role in the economy taking deposits and advancing loans. The modern banks have to adopt new techniques to remain competitive and responsive to public needs. The Intermediary role: Transforming savings received primarily from household into credit for business firms and others in order to make investments. The payment role: Carrying out payments for goods and services on behalf of their customers. The guarantor role: Standing behind their customers to pay off customer debts, when those customers are unable to pay. The risk management role: Assisting customer in preparing financially for the risk of loss to property and investments. The safekeeping of value role: Safeguarding a customer’s valuables and appraising and certifying their true market value. The agency role:
Acting on behalf of customers to manage and protect their property or issue and redeem their securities, bills etc. The policy role:
Abiding by the Government policies in order to regulate the growth of the economy and achieving social goals.
ORGANISATIONAL STRUCTURE & ORGANISATIONAL CULTURE of Banking Sector in Pakistan :
ORGANISATIOANAL STRUCTURE: “The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, command and allocates rights and duties . Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management.”
A structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. WEBER’S BUREAUCRACY
The banks follow the GENERAL ADMINISTRATIVE THEORY. In particular the banking sector of pakistan follows the WEBER’S BUREAUCRACY which is a form of organisation characterised by division of labour, a clearly defined hierarchy, detailed rules and regulations and impersonal relationships. Organizational Culture :
Culture Formally Defined as :
A shared set of beliefs , values and patterns or behaviors common to a group. Defining Organizational Culture:
It means that each organisation has its own way and an outsider is an observer who Observes behavior, language, customs, traditions, standards and publicly announced values, mission, climate of group in interaction, Embedded skills, Habits of thinking, Shared knowledge for socialization of the organisation. All influences the way the organizational members act & therefore is included in a CULTURE of an organisation.
Customer Relationship Management In Banking Sector: From marketing aspect, CRM is defined by [Couldwell 1998] as “ A combination of business process and technology that seeks to understand a company’s customers from the perspective of who they are, what they do, and what they are like”. There is more to Customer Relationship Management (CRM) than just managing customers and analyzing their behaviors. Banks are well aware that their success is predominantly dependent on the CRM...