Structure of Td Bank

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  • Topic: Decision making, Toronto-Dominion Bank, TD Canada Trust
  • Pages : 3 (990 words )
  • Download(s) : 949
  • Published : November 24, 2012
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In an organization, there are often many levels of management. These levels of hierarchy can span vertically or horizontally. Recently there has been an explosion of decentralization and movement towards flatter organizational structure. Just as the Toronto Dominion Tower has many levels to its building, TD Canada Trust also has many levels to its tall and centralized organizational structure, and this has worked very well for them. In TD Bank, a very tall organizational structure can be observed. During our in-branch interview with an employee, we found that “12 levels of positions existed, ranging from trainee (levels 0-1), Teller and Customer Representatives (levels 2-3), Financial Representatives (levels 4-5) all the way to the various head office and executive positions (levels 6-12)” (Personal branch visit, March 2012). In the branches, there are two teams that make up the labour force – Branch Sales team and the Service team. The Service team is two levels higher than the Branch sales teams (in terms of hierarchy). Within each team there are also two managers that oversee all operations within the branch. The “tall structure … allows group members to evaluate decisions more frequently, and the narrow span of supervision provides for a more orderly decision process” (CARZO et al., 1969, p.191); this contributes directly to TD Bank’s high level of success in terms of employee satisfaction. The TD Employee Engagement Index score (measured through employees’ feelings of accomplishment, pride in TD and their plans to be with TD in one year) “increased by 4 basis points, from 4.11 in Fall 2009 to 4.15 in Fall 2010” (TD, 2012). As well, TD is also a centralized organization. All the decisions regarding the services they offer, credit options, mortgage rates and different accounts are all predetermined by levels 6 or higher. The employees in the front office are not allowed to make personal decisions – they are only allowed to sell simple packages to consumers....
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