The Journal of Nepalese Business Studies
The Journal of Nepalese Business Studies The Journal of Nepalese Business Studies
Vol. III No. 1
Dec. 2006
Application of Management Control System in Nepalese Commercial Banks
Saroj Rijal ABSTRACT
This paper attempts to examine the application of management control system in Nepalese commercial banks. The Nepalese commercial banking sector is very competitive. The commercial banks are competing mainly in service and many of them adapting differentiation strategy. The priority of the majority of commercial banks is customer retention. Commercial banks are encouraging employees to upgrade their knowledge and skill. The working environment is also congenial in Nepalese commercial banks and the informal organization and communication system also gradually exist in some of the commercial banks of Nepal. However, the future research needs to examine the relationship between management control system and effectiveness of the commercial banks of Nepal.
Key words: commercial bank, management control system IN NEPAL, DURING 1990S AND later many organizations faced major changes in competitive business environment. Before 1990s organizations such as those operating in the airlines, utilities, and financial sectors were either government owned monopolies or operated in a highly regulated and non-competitive environment. These organizations were not subject to any great pressure to improve the quality and efficiency of their operations or by eliminating services that were making losses. Some public enterprises were getting direct subsidies from government for equalizing their operational losses. Privatization of some of the government owned enterprises and deregulation in early 1990s changed the competitive environment in Nepalese business environment. Large number of joint venture commercial banks and development banks were established and the process is being continued. Commercial banks play significant role in the economic development in the nation. In Nepal
Vol. III No. 1
Dec. 2006
Application of Management Control System in Nepalese Commercial Banks
Saroj Rijal ABSTRACT
This paper attempts to examine the application of management control system in Nepalese commercial banks. The Nepalese commercial banking sector is very competitive. The commercial banks are competing mainly in service and many of them adapting differentiation strategy. The priority of the majority of commercial banks is customer retention. Commercial banks are encouraging employees to upgrade their knowledge and skill. The working environment is also congenial in Nepalese commercial banks and the informal organization and communication system also gradually exist in some of the commercial banks of Nepal. However, the future research needs to examine the relationship between management control system and effectiveness of the commercial banks of Nepal.
Key words: commercial bank, management control system IN NEPAL, DURING 1990S AND later many organizations faced major changes in competitive business environment. Before 1990s organizations such as those operating in the airlines, utilities, and financial sectors were either government owned monopolies or operated in a highly regulated and non-competitive environment. These organizations were not subject to any great pressure to improve the quality and efficiency of their operations or by eliminating services that were making losses. Some public enterprises were getting direct subsidies from government for equalizing their operational losses. Privatization of some of the government owned enterprises and deregulation in early 1990s changed the competitive environment in Nepalese business environment. Large number of joint venture commercial banks and development banks were established and the process is being continued. Commercial banks play significant role in the economic development in the nation. In Nepal
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