Overview Of The Firstbank Nigeria Plc

Overview Of The First patois Nigeria PlcFIRSTBANK Nigeria Plc is one of the oldest financial institutions and indeed the largest retail lender in Nigeria, its the 1st wedge to be constituted in West Africa. The bank was incorporated in Liverpool as a Limited Liability company in March 1894 with the name verify of British West Africa. The bank was listed on the Nigerian Stock exchange (NSE) in March 1971 after which it acquired its name First Bank of Nigeria in 1979. Following the CBN generate industry-wide consolidation in 2005 the bank acquired its merchant banking subsidiary, FBN Merchant Banker ltd and MBC intl Bank Plc. FirstBank maintains a subsidiary in United Kingdom which has a branch in Paris, the bank to a fault has representative offices in South Africa, China and Dubai through which it offers offshore financial services. Presently the Banks assets be in excess of N100billion.1.2 THE NATURE AND SIZEFIRSTBANK as a leading commercial bank has the largest network of bra nches in the country, over the years the bank has continu onlyy reviewed its brass sectional social twist and corporate identity in reap with changing financial environment. Known for its uniqueness for being betably dynamic and stability, 1st Bank has made for its self a name, a none goodwill associated with fidelity and safety of funds.Being a key player in the nations financial-banking sector, Firstbank delivers a wide range of financial services to its numerous customers the bank is well known for innovative changes in technological device and service deli real. Being the first bank to introduce a Biometric ATM i.e. an ATM motorcar that uses both pin no selection and finger prints to identify bring aboution alonetresses this point. The bank through its acquired subsidiaries also provide otherwise financial services and they include, insurance policy policies, housing schemes, asset portfolio management.1.3 PRODUCTS AND SERVICESFIRSTBANK offers a wide range of wholesa le, retail and consumer banking products and services in ensuring that it keeps true to its name as the 1st bank of prime(prenominal) in the country,. Our products include CONSUMER BANKING Generic Savings Account, Current Account, First Premium Term Deposit, First Savings positivist Account, First Hifi (Children) Account, First Current Plus Current Account(with zero COT), FIRST Current trade Account, First Dom Account, First Instant SavingsAccount. all in all accounts have the flexibility of over the counter withdrawals devoted the new CBN policy, ATM cards, Dividend warrants lodgment and access to E-Banking services.. WHOLESALE BANKING The services and products therein are further divided intoASSET PRODUCTS They include- Term loans, Overdraft, Oil and Gas arrest finance(OGCF), Bankers Acceptance, Commercial Papers, Bills Discounting, Project Finance, Equipment Leasing etc,INTERNATIONAL TRADE FINACE Includes but not limited to- Import finance, Export Finance, Clean lineconfir mation, Letters of Credit, Bills for Collection, Forex Trading Invisible RemittancesPayment for Services. E- BANKINGFirst Online which allows you to transact business online at the comfort or your home or offices.First Alert-Instant notification on your accountFirst Mobile-Access to your account through you phone, it includes buying of air judgment of conviction and retribution of utility 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, indorse 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 CUsersDanielDesktopCYNTHIAFirstCash Card.jpg silver TRANSFER FIRSTBANK offers funds transfer services locally and internationally through mediums like- Firs t Domestic Transfer, Western Union, Money Gram and RIA. OTHER SERVICES different 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, Water and DSTV)1.4 VISION, MISSION AND ESSENCE view To be the clear leader and Nigerias bank of first choiceMission To remain true to our name by providing the high hat financial services accomplishableEssence The DNA of the FirstBank brand lies in its strength, size and dependability, typified by its brand icon, the Afri jakes Elephant. Our brand essence is there shank Dependably Dynamic which is a holistic representation of our past, present and the future of FirstBank.1.5 CORE VALUESThe core values of FirstBank are coined in an acronym for quick recall and living by the guiding principle TELL SPICTeam Work Everyday a better way, the team spirit is embedded in our elaboration as the best executable way to w ork.Ethics The good will of the bank is to be maintained as you deal with both internal and external customers, ensuring that the client leaves your office satisfied. inscription the essence of brand name and its very compriseence evolves in loyalty to our customers, Firstbank has been in existence for generations and loyalty to our customers is what makes us tick.Superior Performance To streng consequently the banks brand, supplement and upscale the customers experience through delivery of excellent services.Professionalism To revolutionize the Banks operations in line with the dynamics of the operating environment while ensuring that we provide the best financial services unmatched.Integrity Adopt high ethical values to guide the conduct of all banking business and transactions in conformity with all relevant regulatory requirements.Customer Centricity The customer is the king and the reason we are in business, their demands should be met in line with banks policy1.6 OUR B RAND PILLARSLEADERSHIP Our statusability as truly the 1st and No1SAFETYSECURITY- Security of fundsInvestments, job security, Integrity.ENTERPRISE Resourcefulness, TenacitySERVICE EXCELLENCE Efficiency, Performance focused, Reliability, Accessibility2.0 PLANNINGThis chapter focuses on goal setting, study plan, expect difficulties to be encountered in data collection and plan to overcome these challenges.2.1 OBJECTIVE OF THE ORGANISATIONAL ANALYSISThe objective of the organizational analysis is to specifically examine the current acres of the Banks operational and structural framework, analyse the utilitarian units and the interface relations and also recommend ways of improving the interface relations.2.2 GOAL SETTINGGoals setting involves establishing specific, measurable, achievable, naturalistic and time-framed (S.M.A.R.T ) buns by an individual or organization. Goal focuses attention towards goal-relevant activities, revealing the objectives and strategies in which the goa ls can be met. Figure 1 below is the structured aim 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 materialData GatheringData compilation idea writingDraft Report ReviewSub-set confrontation ReviewUpdate reportDraft submission to set adviserCorrection and final submissionFigure 2 Project Plan2.3 wander PLANReviewing of the BSN course materials and EBSCO data can to understand theory 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 collection stage of the project is to gather relevant and accurate information, to obtain the mappingicipation and co-operation of the appropriate target population and to facilitate the collection and analysis of data. The targeted popu lations are stave of the functional units, mental faculty of hub branches, degrees of the functional units (department) and some strategic business units and staff of Human metropolis Management- Head Office. The medium to achieve this includes- Informal Interviews, telephone set survey, one-on-one chats with some members of the targeted population e.g. the heads of departments and staff of the Human Capital management because of their exigent duties. All sensed 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 gather information on functional units and organizational structure while personal visits to the Head Office and hub branches will be utilized to objectively gather information on functions of confused departments, interface relations and recommendations for expediency of the interface relations.Data compilation stage will include analyzin g data collected 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 occasional(a) publications. Data structuring and report preparation will also be done 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 DATA COLLECTIONQuestionnaires could not be used because of the banks policy on bulk mails or questionnaires related to work and business environment hence becoming 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. meagre time due to researchers official d uties.2.5 PLAN TO OVERCOME THESE DIFFICULTIESAll perceived sensitive questions would be handled through interviews and not written questionnaires.Extra hours to be give for accessing the Banks intranet while a substitute internet modem was purchased to curb congestion or delays on web hosts.Personal interviews will be conducted for staff with busy schedule, telephone calls and communication chat applications were also utilized for other staffEnsure proper time management.3.0 ORGANISATIONAL STRUCTURE AND CULTUREThis chapter focuses on the theories of organisational structure and organisational nuance.3.1 ORGANISATIONAL STRUCTUREOrganisations exist to achieve goals these goals are broken down into tasks as the basis for jobs.The term organisational structure therefore refers to the formal configuration in the midst of individuals and groups regarding the allocation of tasks, responsibilities, and authority within the organization (Galbraith, 1987 Greenberg, 2011). Said differently , The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, and allocates rights and duties. organisational 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. (Business Dictionary-Google).The structure of the organization can 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 either on product or function (Oliveira Takahashi, 2012). some others moved beyond these early start outes and examined the relationship between organizational strategy 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 som e companies, He concluded from his study that an organizations strategy tends to influence its structure. He suggests that strategy in send offately determines such(prenominal) variables as the organizations tasks technology, and environments, and each of these influences the structure of the organization.More recently, social scientists have augmented Chandlers thesis by contending that an organizations strategy determines its environment, technology, and tasks. These variables, coupled with growth rates and power distribution, discover organisational structure. The Organisational structure as argued by Alfred Chandler can be seen in FIRSTBANK structure which was changed recently to suit the Banks intended strategy. The Bank in Oct 2010 had embarked on a re-structuring of its broad(a) operational system 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 design of every superstructure ends up as a compromise between the objective constituents of work flow, process and scale interdependency, and the subjective factors of personality and social need. Organisations may be conceived on paper, but they must 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 design parameters determine individual positions (examples will be shown using FirstBank configuration)Operating Core Staff 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 prudent for running an entire organisation. The Executive Directors and Executive Vice Preside nt of the bank sit at the Strategic ApexMiddle 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 human faces ofan organisations activities eg- congenital Control and Audit, Compliance, Credit Risk Management(CRM) AND MANCOSupport Staff Individuals who provide support to an organisation outside its operating workflow.(I.T support, Security personnels)Mintzberg identified five organisational configurations, they however depend some contingency factors which include Age of the organization, size Technical System, Environment and Power factors Simple Structure is characterized by loose incision of labor, relies on direct supervision and finds its key part at the strategic apex Machine Bureaucracy which relies on standardisation of work process, relatively centralizedpower for finding maki ng 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 voice has its own structure, it centers on standardisation of proceedss. Autonomous units are created to deal with entire product lines, allowing top management to focus on large-scale, strategic decision. The middle line is key part of the organisation.Adhocracy, a highly informal, strong 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 located at Head Office to provide services to all divisions support staffs are located within each divisio n like we have the IT support for each area and marketing 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 evaluate 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 marketing unit who are in charge of change magnitude the market size and credit portfolio of the branch. The Business Manager heads this unit of the branch.Each of these units runs independently of each other wit h separate reporting lines even though they are situated in the same tangled ant they form part of the whole group.Given the Banks ever evolving strategy in line with changes in market dynamics and technological advancement, 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 approved by the strategic apex and the statutory regulatory authority (Central Bank of Nigeria). Usually the bank makes the policies available on its local INTRANET and other periodic publications or circulars as organisational changes are initiated.3.1.2 ORGANISATIONAL STRUCTURE EFFECTIVENESS EFFICIENCYEffectiveness 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 fo r its survival?, is it focusing its drive on opportunities to produce revenue? Is it producing the output it needs if it is to survive? Efficiency of a system, on the other hand is about the inputs the system uses in order to produce outputs that is doing things right, accomplishing your tasks with a minimum of time and resource, It centers on performance and cost reduction. To thoroughly examine organizational success, both rounds should be considered because productivity is a function of inputs to outputs which is the theme of efficiency and effectiveness. Efficiency should forever and a day be the servant of effectiveness.(BSN sort 1, module IX, p 575)Looking at the Banks history 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 equity was N373,572 while the total Customer Deposits was N1,783,777,(figures are in millions).however there is r oom and need for improvement, the Bank lacks behind in mobilization of current account secures and booking of credit facilities. These lapses deny the bank of some benefits which include addition 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 reduce turnaround time, this I believe is coming rather too late.The strategic Apex of the Bank needs to review these points afore mentioned and go 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 g roups or departments are formed. The design parameters are Job specialisation Behavior formation information and indoctrination Unit grouping size Planning and control systems Liaison devices Vertical and horizontal decentralization. The design parameters predominant in FIRSTBANK areJob Specialisation In FIRSTBANK, all job titles 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 specialization increases employee productivity. Training and indoctrination In order to carry out task, employees need to possess particular skills and knowledge.(BSN Phase 1 Course Notes, pg 584). In FirstBank its a trend to continuously train staff on a need to know and improvement basis, this exercise forms part of appraisal marks to be awarded during year end performance rating. The heads of branches or d epartments 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 ahead of industry trends. Indoctrination are done upon recruitment of staff be it new or experienced hirees in order to imbibe the banks culture and values into them.The unit grouping is an classical 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 vertical decentralisation as the dispersal 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 CULTURECulture refers to the underlying values, beliefs and codes of recitation that makes an organisation whatIt is. The customs of an organisation, the self image of its members, the things that make it different from others are its culture. Culture is symbolic Culture is unifying and refers to the processes that bind the organization together. Culture is root 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 cult ureValues the beliefs that lie at the heart of the corporate culture.Heroes the slew who embody values.Rites and rituals routines of interaction that have strong symbolic qualities.The culture network the informal communication system or hidden hierarchy of power in the organization.Peters and Waterman (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 organisational culture is developed over time as people in the organisation learn to deal successfully with problems of external adaptation and internal integration. 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 baffle (1990) asserts that organizational culture can be described by four general dimensionsMission Strategic Direction 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 model also allows cultures to be described broadly as externally or internally focused as well as flexible versus stable. The model has been typically used to diagnose cultural problems in organizations.3.2.1 FACTORS THAT settle ORGANISATIONS CULTURE (FIRSTBANK)According to Schein (1992), the two main reasons why cultures develop in organizations is due to external adaptation and internal integration. External adaptation reflects an evolutionary approach to organizational culture and suggests that cultures develop and persist because t hey 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 environmentIndustrySize 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 bra nd 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 couple of(prenominal) young staff, in2008 the bank retrenched over 900 staff especially those who had spent 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 increased 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 furthermost helped the bank in terms 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 enjoined 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 create in a particular way and colour, have a products and services delivered to customers with the brand name FIRST and a unique wa y 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 promotion process is a major aspect of this.A review of the Banks choice to downsize its work force recently by way of retiring (and firing) 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 given(p) its fired employees with huge co mpensations afterwards.(Google- Wikipedia .As the corporate culture may mean almost everything, firing on the base of culture means the employer does not accept and disposition 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, reinforced on trust flexible.Role culture Roles are more important than persons, functional, rule and procedure drivenTask Culture Cross functional, based on jobs and projects, networked, coordinationcombination of jobs around tasks.Person Culture People are the central focus, con trols 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