April 16, 2012
FirstBanks' Organizational Structure
Founded in 1963, FirstBank has been fortunate enough to have outstanding employees, financial stability, and the greatest customers they could ask for. They have maintained a strong commitment to convenience, intelligent, and friendly customer service as well as loyalty to those who work for them. Organizations require structure in order to grow and be profitable. FirstBank would not have been able to achieve what they have without having implemented a proper organizational structure.
FirstBank implements the vertical organizational structure that consists of authority in organizations, hierarchical levels, span of control, delegation, and decentralization. Authority is the genuine right to make decisions and tell other people what to do (Bateman, pg 278, 2011). FirstBank gives authority to its upper-level managers who in turn give orders to the lower-level managers to carry out. Hierarchical levels consist primarily of the board of directors, under them it is the chief executive officer (C.E.O), chief financial officer (CFO), followed by the President, Vice-President, Assistant Vice-President, right under them its managers and supervisors and finally tellers. The number of people who report to the manager or supervisor are called the span of control (Bateman, pg 282, 2011). There are typically no more than five people reporting to any given manager. Delegation is the key to effective management, it allows them to use their time and energy on other projects and assign other responsibilities and authority to different tellers. It is important for managers to define the goal that must be attained also provide the resources necessary and schedule check-points to ensure the goals are being carried out effectively....