Overview Of The Firstbank Nigeria Plc

Overview Of The commencement commit Nigeria Plc get-goBANK Nigeria Plc is one of the archaicest financial institutions and indeed the largest retail loaner in Nigeria, its the maiden bound to be established in watt Africa. The commit was incorporated in Liverpool as a Limited liability company in swear out 1894 with the name verify of British atomic number 74 Africa. The bank was listed on the Nigerian Stock exchange (NSE) in March 1971 after which it acquired its name first-class honours degree disposition of Nigeria in 1979. Following the CBN bring on industry- childthe kindreds of consolidation in 2005 the bank acquired its merchant banking subsidiary, FBN Merchant bounder ltd and MBC intl argot Plc. FirstBank maintains a subsidiary in United Kingdom which has a secernate in Paris, the bank overly has re amazeative fixs in South Africa, China and Dubai through with(predicate) which it offers offshore financial function. Presently the Banks assets atomic number 18 in excess of N100billion.1.2 THE genius AND SIZE firstBANK as a leading commercial bank has the largest mesh topology of sectiones in the country, over the twelvemonths the bank has continu tout ensembley reexaminationed its organizational structure and corporate identity in line with changing financial surroundings. cognise for its uniqueness for universe dep turn backably dynamic and stability, 1st Bank has do for its self a name, a marque favourablewill associated with fidelity and guard of funds.Being a key player in the nations financial-banking sector, Firstbank delivers a wide range of financial gains to its numerous customers the bank is well know for innovative changes in technological device and service delivery. Being the beginning bank to introduce a Biometric ATM i.e. an ATM machine that uses two pin no selection and finger prints to identify transaction sedatetresses this point. The bank through its acquired subsidiaries also provide otherw ise financial services and they include, indemnity policies, housing schemes, asset portfolio prudence.1.3 PRODUCTS AND SERVICESFIRSTBANK offers a wide range of wholesale, retail and consumer banking products and services in ensuring that it keeps true to its name as the 1st bank of choice in the country,. Our products include CONSUMER BANKING Generic Savings Account, Current Account, First Premium Term Deposit, First Savings Plus Account, First Hifi (Children) Account, First Current Plus Current Account(with zero COT), FIRST Current blood line Account, First Dom Account, First trice SavingsAccount. each scores take the flexibleness of over the counter withdrawals given the unsanded CBN policy, ATM card game, Dividend warrants lodgment and regain to E-Banking services.. WHOLESALE BANKING The services and products therein be further divided into plus PRODUCTS They include- Term loans, Overdraft, Oil and Gas contract finance(OGCF), Bankers Acceptance, Commercial Papers, Bill s Discounting, Project Finance, Equipment Leasing etc, international TRADE FINACE Includes but not limited to- Import finance, Export Finance, strip lineconfirmation, Letters of Credit, Bills for Collection, Forex Trading Invisible RemittancesPayment for Services. E- BANKINGFirst Online which allows you to transact commercial enterprise online at the comfort or your home or offices.First Alert-Instant notification on your accountFirst Mobile-Access to your account through you echo, it includes buying of air eon and payment of service program bills.First Pay and First Collect-effect payment and several collection to and from your merchants.FIRST CARDS Debit and Credit cards which include- MasterCard, FirstBank Naira MasterCard, First Cash Card, visa Card (Gold, Classic and Infinite), Visa Credit Card. Notice that all cards issued by the bank comes with FIRSTBANK brand name- FIRSTFIGURE 1CUsersDanielDesktopCYNTHIAFirstBank MasterCard.jpgCUsersDanielDesktopCYNTHIAVISA_GOLD2.gif CU sersDanielDesktopCYNTHIAFirstCash Card.jpg MONEY TRANSFER FIRSTBANK offers funds transfer services locally and internationally through mediums like- First Domestic Transfer, Western Union, Money Gram and RIA. early(a) SERVICES Other services rendered by the bank includes- Agricultural Financing, FIRST Diaspora banking services for Nigerians in Diaspora and Bills Payment for prompt settlement of utility bills(e.g. PHCN, irrigate and DSTV)1.4 VISION, MISSION AND ESSENCEVision To be the clear leader and Nigerias bank of first choiceMission To remain true to our name by providing the best financial services viableEssence The DNA of the FirstBank brand lies in its strength, size and dependability, typified by its brand icon, the Afri bunghole Elephant. Our brand summation is therefore Dependably Dynamic which is a holistic representation of our past, present and the future of FirstBank.1.5 CORE VALUESThe force value of FirstBank atomic number 18 coined in an acronym for quick recal l and living by the guiding principle secern SPIC police squad Work Everyday a better way, the squad spirit is embedded in our horti socialisation as the best possible way to work.Ethics The good will of the bank is to be well-kept as you direct with both internal and external customers, ensuring that the client leaves your office satisfied.Loyalty the essence of brand name and its very outliveence evolves in loyalty to our customers, Firstbank has been in existence for generations and loyalty to our customers is what needs us tick.Superior effect To strengthen the banks brand, leverage and upscale the customers experience through delivery of fantabulous services. schoolmasterism To revolutionize the Banks operations in line with the dynamics of the operating(a) environs while ensuring that we provide the best financial services unmatched.Integrity travel along high ethical set to guide the conduct of all banking business and transactions in con engineerity with all relevant regulatory requirements.client Centricity The customer is the king and the reason we argon in business, their demands should be met in line with banks policy1.6 OUR BRAND PILLARSLEADERSHIP Our statusability as truly the 1st and No1SAFETYSECURITY- Security of fundsInvestments, job security, Integrity.ENTERPRISE Resourcefulness, TenacitySERVICE EXCELLENCE Efficiency, cognitive process focused, Reliability, Accessibility2.0 PLANNINGThis chapter focuses on goal prospect, study plan, expected difficulties to be encountered in data collection and plan to overcome these challenges.2.1 OBJECTIVE OF THE ORGANISATIONAL psychoanalysisThe objective of the organizational analysis is to specifically examine the current situate of the Banks operable and structural framework, analyse the escapeal unit of barroomments and the porthole relations and also recommend shipway of improving the interface relations.2.2 GOAL SETTINGGoals setting demands establishing specific, measur able, achievable, realistic and time-framed (S.M.A.R.T ) target by an individual or organization. Goal focuses forethought towards goal-relevant activities, revealing the objectives and strategies in which the goals tin do-nothing be met. imagine 1 under is the structured project plan for the organisational analysis.ActivityTimeline20-Jun-1222-Jun-1224-Jun-1226-Jun-1228-Jun-1230-Jun-122-July-124-July-128-July-1210-July-1212-July-1214-July-1216-July-1218-July-1222-July-12Review of BSN course bodily data GatheringData compilationReport writing pen Report ReviewSub-set meeting ReviewUpdate breeddraught submission to set adviserCorrection and final submissionFigure 2 Project Plan2.3 PROJECT PLANReviewing of the BSN course materials and EBSCO database to represent possibility on organisational structures, data collection method and research report writing style.The internet (Google search and Wikipedia) comes in very handy in enhancing project plan.The objective of the data colle ction stage of the project is to suffer relevant and accurate information, to obtain the go badicipation and co-operation of the appropriate target macrocosm and to facilitate the collection and analysis of data. The targeted populations ar module of the bringal units, stave of hub branches, heads of the operable units (department) and nearwhat strategical business units and module of Human uppercase Management- Head affair. The medium to achieve this includes- In ceremonious Interviews, telephone survey, one-on-one chats with al to the highest degree members of the targeted population e.g. the heads of departments and staff of the Human Capital management because of their exigent duties. both perceived sensitive questions would be handled through interviews (which are not formal) and not written questionnaires.The FirstBank Intranet and internet website will be used extensively to assembly information on functional units and organizational structure while face-to- face visits to the Head Office and hub branches will be utilized to objectively put on information on functions of conglomerate departments, interface relations and recommendations for amelioration of the interface relations.Data compilation stage will include analyzing data salt away and reviewing information from subset meetings and research report writing.Report writing stage would involve applying the reviewed data gained from the various materials and extraction of relevant information from FIRSTBANK intranet and oscillatory publications. Data structuring and report preparation will also be make at this stage.Reviewed responses from telephone calls and outcomes of informal interviewsDiscussed challenges with Set Advisor at subset meeting and via phone calls.Update and revised document with necessary corrections.2.4 DIFFICULTIES TO BE ENCOUNTERED IN selective information COLLECTIONQuestionnaires could not be used because of the banks policy on muckle mails or questionnai res related to work and business environment hence comme il faut data collection seemed impossible.Network challenges when accessing both the internet and the Banks intranet.Time constraint and the busy schedule of visited staff will also be a limitation.Insufficient time referable to researchers official duties.2.5 PLAN TO OVERCOME THESE DIFFICULTIESAll perceived sensitive questions would be handled through interviews and not written questionnaires. pleonastic hours to be dedicated for accessing the Banks intranet while a substitute internet modem was purchased to enclose congestion or delays on web hosts.Personal interviews will be conducted for staff with busy schedule, telephone calls and colloquy chat applications were also utilized for other staffEnsure proper time management.3.0 ORGANISATIONAL STRUCTURE AND stopping pointThis chapter focuses on the theories of organisational structure and organisational last.3.1 ORGANISATIONAL STRUCTUREOrganisations exist to achieve go als these goals are blue down into tasks as the basis for jobs.The term organisational structure therefore refers to the formal configuration amongst individuals and groups regarding the allocation of tasks, responsibilities, and authority within the organization (Galbraith, 1987 Greenberg, 2011). tell differently, The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure ensures the expressive style and extent to which use of goods and servicess, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. (Business Dictionary-Google).The structure of the organization bed be defined simply as the sum total of ways in which its labour is divided into distinct tasks and the its coordination is achieved among these tasks /(Mintzberg 1983a)Very early organizational structures were often based e ither on product or function (Oliveira Takahashi, 2012). Others come upond beyond these early glide pathes and examined the descent between organizational scheme and structure (Brickley, Smith, Zimmerman, Willett, 2002).This approach began with the landmark work of Alfred Chandler (1962, 2003), who traced the historical development of some companies, He concluded from his study that an organizations schema tends to influence its structure. He suggests that strategy indirectly determines such variables as the organizations tasks technology, and environments, and each of these influences the structure of the organization.More recently, sociable scientists have augmented Chandlers thesis by contending that an organizations strategy determines its environment, technology, and tasks. These variables, coupled with gain rates and power distribution, affect organisational structure. The Organisational structure as argued by Alfred Chandler can be seen in FIRSTBANK structure which wa s changed recently to suit the Banks intended strategy. The Bank in Oct 2010 had embarked on a re-structuring of its entire operational governing body and workforce, we can therefore deduce that Strategy determines organizational structure.A critical review of Mintzberg definition shows that it is not against the aforementioned, the public figure of every superstructure ends up as a compromise between the objective factors of work flow, process and scale interdependency, and the inwrought factors of personality and social need. Organisations may be conceived on paper, but they mustiness function with flesh-and-blood human beings. (Mintzberg, 1983). Hence for a critical analysis of FirstBank OA, the Mintzberg theory will be adopted.3.1.1 ORGANISATIONAL CONFIGURATIONMintzberg claims that organisations are composed of five primary elements, or groups of individuals, any of which may predominate in an organisation. The origination parameters determine individual positions (example s will be shown using FirstBank configuration)Operating Core mental faculty or employees who perform the basic work related to an organisations product or service e.g.- Tellers, Customer Service Officer, Foreign operations Staffstrategic Apex Top-Management responsible for running an entire organisation. The Executive Directors and Executive viciousness President of the bank sit at the Strategic Apex philia Line Managers who stand in a direct line relationship between the strategic apex and the operating core. They include the Group Heads, RegionalArea Office Managers.Techno structure Organisational specialists responsible for standardising various eyeshots ofan organisations activities eg- Internal Control and Audit, Compliance, Credit assay Management(CRM) AND MANCOSupport Staff Individuals who provide jut to an organisation outside its operating workflow.(I.T support, Security personnels)Mintzberg place five organisational configurations, they however depend some misfortun e factors which include Age of the organization, Size Technical System, Environment and Power factors dewy-eyed Structure is characterized by loose division of labor, relies on direct control and finds its key part at the strategic apex Machine bureaucratism which relies on standardisation of work process, relatively centralizedpower for decisiveness making with its key part in the techno structure where the planners of the organisation reside.Professional Bureaucracy which deals with standardisation of skills and has the operating core as its key part.Divisionalised form -each division has its own structure, it centers on standardisation of outputs. Autonomous units are created to deal with entire product lines, allowing top management to focus on large-scale, strategic decision. The oculus line is key part of the organisation.Adhocracy, a highly informal, real presence of mutual adjustment, organic organisation in which specialists work in teams, coordinating with each other on various projects.FIRSTBANKS structure like most large corporations is characterized by the divisionalised form of Mintzbergs configuration as various divisions (departments) are created by their product lines or endproducts. The techno structure is determined at Head Office to provide services to all divisions support staffs are located within each division like we have the IT support for each area and commercialiseing assistants who are support staff assigned to each branch. Most of the operational activities are conducted by the middle line managers, department heads or unit heads and they all operate with some form of independence and centralization within their units. They coordinate the output, acting between the strategic apex and the operating core. They also oversee the activities of the operating core and are expected to report back to strategic apex.The typical operational structure in a FIRSTBANK branch is divided into two divisions-i. The Operations Unit who are in charge of the everyday running of branch and attending to customers demand. The head of this unit is called The Branch Operations Manager.ii. The Retail or grocery storeing unit who are in charge of increasing the market size and credit portfolio of the branch. The Business Manager heads this unit of the branch.Each of these units runs individually of each other with separate reporting lines even though they are situated in the like complex ant they form part of the whole group. assumption the Banks ever evolving strategy in line with changes in market dynamics and technological rise, the structure design is determined by the strategic planning and corporate transformation unit through the HCM department, stating unit and individual key responsibilities and the reporting lines. The final structure is then O.K. by the strategic apex and the statutory regulatory authority (Central Bank of Nigeria). unremarkably the bank makes the policies available on its local INTRANET and othe r periodic publications or circulars as organisational changes are initiated.3.1.2 ORGANISATIONAL STRUCTURE EFFECTIVENESS EFFICIENCY military capability of a system is about doing the right things. Its about producing the intended or expected result, In measuring organisational effectiveness, the relevant question would be is the organisational system doing the right thing for its survival?, is it focusing its drive on opportunities to earn revenue? Is it producing the output it needs if it is to stretch forth? Efficiency of a system, on the other hand is about the inputs the system uses in order to heighten outputs that is doing things right, accomplishing your tasks with a minimum of time and resource, It centers on performance and cost reduction. To exhaustively examine organizational achievement, both measures should be considered because productivity is a function of inputs to outputs which is the theme of efficiency and effectiveness. Efficiency should always be the ser vant of effectiveness.(BSN chassis 1, module IX, p 575)Looking at the Banks tarradiddle and evolutions, one can boldly say that FIRSTBANK has achieved some level of efficiency and effectiveness. The total assets of the Bank as at Dec 2011 as publishedequals N,2463,543, total faithfulness was N373,572 while the total Customer Deposits was N1,783,777,(figures are in millions).however there is way of life and need for improvement, the Bank lacks behind in mobilization of current account deposits and booking of credit facilities. These lapses deny the bank of some benefits which include join on in customer base and collection of float income from these deposits.The FIRST Instant savings account was introduced by the Bank to bridge this gap on deposit mobilization, this product however has not recorded much success because of the strict requirements, the deployment of FINACLE 10 Banking solution which is scheduled to kick off this year July is an Efficiency measure in order to reduc e turnaround time, this I believe is coming rather too late.The strategic Apex of the Bank needs to review these points afore mentioned and reach a favorable conclusion so that the Bank can edge forward.3.1.3 DESIGN PARAMETERSMintzberg identified nine design parameters. By using these parameters the organisational designer can influence the way individuals are positioned in the organisation and the way groups or departments are formed. The design parameters are Job specialisation Behavior formation preparation and indoctrination Unit class size Planning and control systems Liaison devices Vertical and horizontal decentralization. The design parameters predominant in FIRSTBANK areJob Specialisation In FIRSTBANK, all job calls are specified, the roles to be performed, the job description, key competences and reporting lines are well explained for staff to understand. Job Specification for each job title is easily accessible on the intranet, it is the banks believe that job speciali zation increases employee productivity. Training and indoctrination In order to carry out task, employees need to possess detail skills and acquaintance.(BSN Phase 1 Course Notes, pg 584). In FirstBank its a trend to constantly train staff on a need to know and improvement basis, this exploit forms part of appraisal marks to be awarded during year end performance rating. The heads of branches or departments recommend staff for training if a knowledge gap or improvement need is identified. Educational and career advancement is also encouraged.The Human Capital Management Development anchors this aspect of the bank. Given the ever increasing need for the aforementioned, the Bank has rebranded its HCMD training arm to be called FIRST ACADEMY. The essence is to inculcate the banks values, ensuring that their staffs are well grounded and ever onwards of industry trends. Indoctrination are done upon recruitment of staff be it new or experienced hirees in order to imbibe the banks gl ossiness and values into them.The unit grouping is an important design parameter in FIRSTBANK because it creates a system of supervision in which there is a reporting line, departmental, unit or group head for all strategic units of the bank, this encourages standardization of outputs. Firstbank adopts functional groupingVertical decentralisation Mintzberg (1983a, p.99) defines perpendicular decentralisation as the airing of formal power down the chain of line authority. FISTBANK adopts limited vertical decentralization. Heads of departments/units are delegated the power to control most of the decisions concerning their line units and such decisions are cascaded down to their subordinates, however they have their reporting lines and various limits.3.2 ORGANISATIONAL shade husbandry refers to the underlying values, beliefs and codes of practice that makes an organisation whatIt is. The customs of an organisation, the self image of its members, the things that make it different fro m others are its culture. finis is symbolic Culture is unifying and refers to the processes that view as the organization together. Culture is rooted deep in unconscious sources but is represented in superficial practices and behavior codes.Deal and Kennedy (1982) argue that culture is the single most important factor accounting for success or failure in organizations. They identified four key dimensions of culture set the beliefs that lie at the heart of the corporate culture.Heroes the people who embody values.Rites and rituals routines of fundamental interaction that have strong symbolic qualities.The culture network the informal communication system or hidden hierarchy of power in the organization.Peters and boater (1982) suggest a psychological theory of the link between organizational culture and business performance. Culture can be looked upon as a reward of work we sacrifice much to the organization and culture is a form of return on effort.Schein (1992) says that org anisational culture is developed over time as people in the organisation learn to deal successfully with problems of external adaptation and internal consolidation. It becomes the common language and the common background. Employee values are measured against organizational values to predict employee intentions to stay, and predict turnover. This is done through instrument like Organizational Culture Profile (OCP) to measure employee commitment (OReilly, ChatmanCaldwell 1991).However Daniel Denisons pose (1990) asserts that organizational culture can be described by four general dimensionsMission Strategic explosive charge and Intent, Goals and Objectives and VisionAdaptability Creating Change, Customer Focus and Organizational LearningInvolvement Empowerment, Team Orientation and Capability DevelopmentConsistency Core Values, Agreement, Coordination/IntegrationDenisons regulate also allows cultures to be described broadly as externally or internally focused as well as flexi ble versus stable. The model has been typically used to diagnose cultural problems in organizations.3.2.1 FACTORS THAT INFLUENCE ORGANISATIONS CULTURE (FIRSTBANK)According to Schein (1992), the two main reasons why cultures develop in organizations is due to external adaptation and internal integration. orthogonal adaptation reflects an evolutionary approach to organizational culture and suggests that cultures develop and persist because they help an organization to survive and flourish. If the culture is valuable, then it holds the potential for generating sustained competitive advantages. Additionally, internal integration is an important function since social structures are required for organizations to exist. Organizational practices are learned through socialization at the workplace. Work environments reinforce culture on a daily basis by encouraging employees to exercise cultural values. Organisational culture is shaped by multiple factors, including the followingExternal env ironmentIndustrySize and nature of the organizations workforceTechnologies the organization usesThe organizations history and ownershipThe external environment to FirstBank includes the ever emerging competitors, the realization of this pushes the Banks management is forge ahead and be innovative. The increasing number of banks offering same products that Firstbank had exclusivity to buttress this point, exceptional service delivery and brand value/positioning are the keys to have an edge over others. Other aspects of FirstBanks external environment include the legal or statutory regulations which the Bank must conform with, the political, socio-economic dynamics of Nigeria.The workforce of the bank is considerably large in comparism to other banks being the bank with the largest number of branch network and emerging diaspora banking through its subsidiaries. Prior to the rebranding of the Banks workforce, 1stBank had a culture of mostly old staff and a few(prenominal) young staff , in2008 the bank retrenched over 900 staff especially those who had washed-out over 25 years in service, the management immediately embarked on recruitment of new and experienced hirees who were relatively young, in addition to this, salaries were change magnitude to suit the modern banker status. A new culture in that aspect had been achieved as 1stbankers were no longer distinguished by long suits and old staff.3.2.2 FIRSTBANK CULTUREFIRSTBANK possesses a strong culture which is continually being improved. In the light of Daniel Denisons model of culture dimensions, FirstBanks mission strategic direction, goals and objectives, are clearly understood by members of staff. The Bank strives to make its staff live by its core values and this has so far helped the bank in basis of durability and goodwill. For the importance of the afore mentioned, FirstBank carries periodic mystery shopping exercise and branch spot checks to ensure that we live what we preach, hence staff are enjoi ned to move with the train.FirstBank adapts quickly to industry changes and are quick to identify a market opportunity hence they are most often the fore most bank for some products or innovations in the banking industry. Its the bank policy for staff to stick to a particular dress code, have the banks premises painted in a particular way and colour, have a products and services delivered to customers with the brand name FIRST and a unique way of service delivery. All this distinguishes the Bank and a Firstbanker from every other bank or person. The Elephant is also a historic symbol of FirstBanks culture which represents stability and strength, like Peters and Waterman (1982) suggests, the strong culture of the bank has positively enhanced its good will and market share, however things can get better.There exist an area of improvement in the Banks culture as it is normally being discussed within its members that staff are not been sufficiently motivated, the slow furtherance proc ess is a major aspect of this.A review of the Banks choice to downsize its work force recently by way of retiring (and electric arc) staff (although with mouth watering incentives) buttresses this point. Firing on the base of cultureUsually pointed as a source of creating family like environment, the notion of corporate culture is also used for firing, with this practice started from shoe company Zappos, which granted its laid-off employees with huge compensations afterwards.(Google- Wikipedia .As the corporate culture may mean almost everything, firing on the base of culture means the employer does not accept and desire to be inclusive for the culture of the employee and thus the employee does not fit in corporate culture, although this may fall in the ground of discrimination, there is still not law or case law resolving or addressing the question making this practice possible and available for businesses for now. Firing on corporate culture is a recent practice, from 2008.3.2.3 CULTURAL TYPESHandy (1985) identified four(4) types of organizational culture and they includePower culture Entrepreneurial in nature, central control, quick to response, built on trust flexible.Role culture Roles are more important than persons, functional, rule and procedure driven line Culture Cross functional, based on jobs and projects, networked, coordinationcombination of jobs around tasks.Person Culture People are the central focus, controls are only possible where members agree.FIRSTBANK adopts the role culture, this is because the roles are seen before the persons behind it, and the workforce is also driven by rule (policies) and procedure.3.2.4 THE PROCESSUAL APPROACHThe processual approach is a translation model in which movements of ideas or objects reside in the sense maki