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Different Perspectives Of Company Structure Commerce Essay

There are many different perspectives about how an company should be framework but there is no particular way of structuring an organization. Corresponding to Contingency Theory so many factors such as size, Technology, Market etc, determine the composition of an company. Anon (2008).

There is dependence on a "design of an efficient structure to indicate the targets of the organisation and the framework where it works" (Fincham and Rhodes 1999: 355).

This paper work considers the organisational composition of United Bank or investment company for Africa Plc and addresses the way in which the organisation is structure.

Identify the organisational goals of United Lender for Africa Plc as portrayed in the company mission and eyesight statement of the bank.

Identify and examine the organizational contingencies of United Loan company for Africa Plc.

Assess the fit between the organisational framework of United Lender for Africa plc and its organisational goals.

Suggest possible advice for improvement.


United Bank for Africa Plc (UBA) is a complete service lender operating in the bank industry. It really is something of the merger of Nigeria's third (3rd) and fifth (5th) most significant banks, namely the old UBA and the erstwhile Standard Trust Bank or investment company Plc (STB) respectively, and a subsequent acquisition of the erstwhile Continental Trust Loan provider Limited (CTB).

(Anon 2010))

United Bank or investment company for Africa Plc is the biggest of all 24 Banks operating in Nigeria. It gets the highest volume of branches of over 600 branches across the country and over 7 million customers. The Head office of the lender is located at 57, Marina, Lagos Nigeria.

UBA's history dates back to 1948 when the British and French Lender Small ("BFB") commenced business in Nigeria and the erstwhile STB and CTB both in 1990. Pursuing Nigeria's freedom from Britain, UBA was integrated in 1961 to take over the business enterprise of BFB. Today's UBA emerged at the same time of industry loan consolidation induced by regulation in calendar year 2005.

(Anon 2010)


Organizational structure matching to Mintzberg (cited in Cole G: 184) is "the total of how it divides its labour into distinctive task and then achieves coordination between them"

United Loan provider for Africa Plc works a large hierarchical flexible framework with some components of Bureaucracy. United Standard bank for Africa Plc working structure includes six strategic sections: North Loan company, South Lender, International Standard bank, Retail Financial Services, UBA Capital, Products and Segment Market and four proper support device: Money, Risk Management, Functions and Internal Audit.

At the very top of the company is the Mother board of directors, reporting to them is the GMD/CEO. Reporting to him are the Heads of the tactical business and encouraging models, who are Deputy Managing Director UBA Nigeria North, Deputy Managing Director UBA Nigeria South, CEO UBA Int'l, CEO UBA Capital, Professional Director Product section, Group Chief Finance Officer, Group Risk Officer, Group Key Operating Official and General Administrator, Group Internal Audit.

The largest of the business strategic products, is UBA Nigeria South standard bank which is divided into Regional Bankers and further broken down into branches. The branches are located in different areas of the united states. The Regional banking institutions are being maintained by Regional Loan company Heads, reporting to them are the Regional Directors, and then will be the Business Manager, followed by Profit Centre Director and beneath will be the Relationship Professionals and operatives.

Due to how big is the Bank, Hq is the tactical centre and has overall control of proper planning, major plan decision, special project, product development, capital Budgeting and financial control. While the Regional Bank Mind, through the Regional Directors and Business Managers run your day to day procedures of the branches. Each branch is given a yearly financial target and the performance of the branch is judged predicated on profitability. It will be noted that is a 'divisionalized' organized predicated on location (Cole 2004:)

There are two major departments in the branch they are; the marketing section and the operation department. Various models operate under each one of the department; they are customer service device, cash and teller product, funder transfer product, admin unit(operation team) Local business unit, small business device and mass market device (Marketing division). While other departments like, Treasury, Commercial services, Credit, Trade businesses etc, are centralised in hq. Tasks are given to unit and individuals. This is likened to the process of There is certainly "division of labour" ( Linstead, Fulop and Lilley 2004:129)

Job specialisation is deemphasised. Although there is written Job explanations, stating the task attached to jobs and the person to whom the job holder is in charge of performance but an employee can be move in one product to the other when a need arise. For instance if there a wide range of customers to be service at the money and teller product, some staff in fund transfer unit or customer support product can be move to urgently help out with cash and teller unit. There is also departmental control function checklist, to screen task done.

Span of control, there are many authority level and close supervision of job, although there is absolutely no specify range of positions that can be coordinated by one supervisor, but the minimum volume of staff that are accountable to a supervisor is three. The diagram below shows the level of supervision in a Regional Loan provider.


Deputy Controlling Director

Regional Bank or investment company Head

Regional Director

Business manager

Profit centre Manger

Relationship Managers


There are four degrees of staff in the bank, they are really, Top Management personnel, Middle Management personnel, Senior staff and the Junior personnel.

Staffs get order directly from their immediate supervisors. Directives flow down from older management (GMD/CEO, DMD), through middle management (Regional Loan company Mind, Regional Director), to older staff who are the first line managers (Business manager, Earnings centre director) and subordinates (junior staff), and reporting romantic relationship flow upward through same route. This is likened to Henry Fayol's principle of scalar chain or chain of order. Anon (2008)

The marketing staff ". . . . . . . performs job functions that are directed towards specific and definable end results while the Procedure personnel performs functions that are designed to drive the machine to achieve the set goals" (Robin and Rodes 1999:357)

Authority is generally "diffused" throughout every managerial level to mature staff degree of the lender. Cole G. (2004). Expert is decentralised but strictly Control. For example a Head Teller as the specialist to recommend a Teller that's not doing to be proceed to another unit.

The major coverage decisions are centralized while functional responsibility is delegated (decentralized). For instance, Older management make Proper decisions such as; technology or software to be used by the business; a significant market or product change, mergers and acquisitions, capital budget and purchases. Such decisions do have very great and latent influence on the future of the Bank. Regional Bank Heads are 'empowered' to make tactical decisions that are product and market related decisions and are usually being designed to outweigh competition and gain more market talk about for the lender. Business managers are 'empowered' to make operational decisions that affect the day to day working of the branch. The decisions at this level are usually on brief and intermediate basis and they are usually being inspired by the unfolding realities on the market place.

Business managers as the duty to control their branches, but in a approved budget outside which their powers are "strictly limited" (Robin and Rhodes: 368). For instance, the business director handle the administrative centre costs and operating expenditure of the branch but there is a maximum amount an enterprise supervisor can approve for an individual price and total amount that may be spent on functioning and capital expenditure in an interval. Any amount of expenditure that is above the business manger limit must be approved by another line supervisor.

There are given laid down functional procedures, insurance policies and manuals that specify standard of performance. These are: operation insurance policy and control manual, staff hand book, expenditure empowerment policy, operational risk management plan, code of professional do and ethics, email coverage, whistle blower cover insurance plan, etc. These regulations are to steer and bring uniformity in handling. For instance the expense empowerment plan is the rule guiding costs. It specify sum of money that can the approve by given authorised person.

There is a performance monitoring system named 'INFO POOL', which is driven by the ideas of the Balanced Scorecard. The Balanced Scorecard Way is a strategic planning and management system that uses financial and non - financial metrics as an enterprise planning and performance measurement mechanism. Performance dimension is seen from four perspectives: Financial, Internal process, Customer Service, and Learning and Growth.

In order to examine employees shows, financial and non-financial key performance indicators (KPIs) was developed across the Balanced Scorecard sizes. To drive this new performance management system, management launched performance incentive pay to improve employee morale and increase efficiency. High performers are objectively recognized and rewarded correctly consistent with predetermined percentages of their pay.


The goals of United Loan company for Arica plc are highlighted below:

To be the guide point for service, quality and invention in the financial services industry and to achieve factor between UBA and other banking institutions on all key variables. Anon(2010)

It desires to occupy the main position among its peers in the industry along key metrics: market talk about, profitability, balance sheet size etc. Anon(2010)

It desires to achieve a clear and significant business lead over peers along all key measures and significantly impact financial services industry insurance policy and direction. Anon(2010)

It desires to provide a broad range of financial services products and services offerings to meet the needs of its chosen market sections. Anon(2010)

It primary focus will be on the African region where it intends to deploy its array of financial services products and service offerings. To also maintain a selective presence in key locations worldwide on an opportunistic basis. Anon(2010)

Business decisions shall be influenced by the desire to accomplish significant value-added for all those stakeholders. Anon(2010)

Putting in place governance and tactical management methods that ensure that organization will efficiently anticipate and respond to environmental discontinuities and effectively control leadership transitions by any means levels. Anon(2010)


United Loan provider for Africa Plc is faced with various numbers of organisational contingencies and these contingencies have similarly affected the way where the organisation is framework. The organisational contingencies are;




Government Regulator

Risk and control environment


United Loan company for Africa Plc is a big bank divided into Regional Banks with over 600 branches in Nigeria and over 13, 000 employees. The branches are classified into four different categorises matching to their location, operational size and environment. They are large branches, medium branches, basic branches and macro branches. How big is the bank has resulted in "Standardisation of techniques, finalizing methods and job tactics, specialisation of function and role, and formalisation of documentation"(Cole 2004:186) to improve process uniformity over the Bank. This can be likened to Lawrence and Lorsch concepts of differentiation and integration Anon (2008:28). Differentiation strategy because the bank is shattered into Regional Lenders and Branches and each of these branches operates in different locations and conditions. This is also similar to Integration approach since there is standardize roles and regulation, operational insurance policy manual guiding the operation of the branches and boosting uniformity in handling and service method. It can even be argued that the composition has the six primary changing of framework as determined by the Aston Studies Anon (2008)


Technology performs a essential role in the financial sector. In response to the demand for quick reliable and reliable services, The Bank as deployed technology- powered products and services as means of influencing and redefining customers' behavioural style and life-style. Well toned outsourcing support functions are increasingly used to provide services and manage cost. For instance; ATM networks, cards processing, charge presentment and payment, software development, call centre functions and network management.

According to Real wood wards studies UBA PLC can be make reference to as "process industry" expert and electric power are decentralized and obligations are delegated by lines supervisors, worker receive order in one superior only Cole(2004: 86. ) The course of control is high at the senior management level, for example ten strategic unit heads report directly to the group managing director which decreases at the center management. For instance at the branch level the business enterprise administrator is the taking care of director of the branch and confirming to whom is the branch procedure administrator and the three revenue centre manger. Employees are proficient of the bank's products and handling methods. Employees are committed to organisation process as described in their job information.


UBA Plc Operate in competitive and an uncertain environment where market helps to keep changing for example Customers are now becoming more proficient and fiscally savvy. Their benchmark for service quality has also risen aided by the strong competition among financial services providers to catch the attention of new customers. Customers now set the agenda and influence decisions. Be sluggish or inflexible the business moves over to the competition. In order to achieve the bank's aspiration or goals, it resolves to remain customer centric and bring decision making nearer to the frontline. With this, the business enterprise units respond flexibly and quickly to the different requirements of the lender targeted customers. It this is likened to "organic composition" which stress decentralization to achieve versatility and adaptability

Government Regulator

The central Bank of Nigeria is the main regulator in the financial sector in Nigeria, they play a essential role in the structure of a loan provider plus they also control and keep an eye on the procedure of the bank through various guidelines, rules and regulations, for example there should be a CBN approval and certificate for a bank or investment company to operate, CBN must approve the session of plank of directors of the bank and the managing director of an bank. In calendar year 2009 CBN arrived with a policy that state an individual person can only just spend maximum of a decade as the managing director of the bank and also do give authorization for the opening and shutting of finance institutions' branches.

The bank or investment company has a both Conformity and Statutory Audit Committee Models. The Compliance device is going by the Chief Compliance Official who then accounts to the Group Key Risk Officer. A major role of the machine is to ensure that the bank will not infract any regulatory rules and /or polices. In the same way, the Statutory Audit committee whose principal function is to screen the procedure design to ensure compliance by the group in all admiration with regulatory requirements, including disclosure, settings and steps (Anon: 2010).

Risk and control environment

Risk management is integral to the Bank's strategy setting process, it can be an essential tool for achieving the Bank's aims. This is attained by keeping risk management at the centre of most executive plan and creating a culture in which risk management is inlayed and integrated in every banking activities (Anon 2010). Towards this end, UBA Plc has in place robust risk management regulations and mechanism to ensure id of risk and effective control.

The standard bank (UBA PLC) has defined and founded appropriate governance arrangements with clear functions and confirming lines for risk management in the lender.

The Plank of directors is the best risk management coverage authorization body and has the ultimate responsibility for the Bank's credit, market, functional, and other risk. THE LENDER has Risk management group included in these are Credit Risk management Group, Market Risk Management Group, Operational and IT Risk Management Group. Each Risk Management Group has direct responsibility for the development of its risk management shape work and they report directly to the Group key Risk officer who subsequently report to the General taking care of director, who also are accountable to the Board of directors.


There is little fit between United Bank For Africa plc composition and its own organisational goals. The structure supports a few of the organisational goals. Delegation of decision making to the frontline where in fact the work is conducted is targeted towards the target to occupy the foremost position amidst its peers on the market along key metrics: market show, profitability, balance sheet size. Delegation of decision making has permit business device to respond flexibly and rapidly to different requirement of customer and has led to the achievements of some of its goals for example The Bank gross revenue increase by 45. 6 % to N246. 7 billion within the last financial year finished December 2009 as against N169 billion in season 2008. This was achieved as a result of the bank development to other African country, its financing activities and other activities in the African country. UBA current operation in 19 African countries, NY London and Paris this an information that the lender has place its feet prints across Africa and other continent.

The loan provider has a rigorous regulatory and compliance framework by ensuring that there a zero tolerance to fraud and other insurance policy infractions. This culture is greatly recognized by its conformity and audit check committee and stringent internal control system which are entrenched across every strata and operational levels in the lender and targeted towards the purpose of abiding by the utmost and ethical standard and It really wants to achieve a clear and significant lead over peers along all key measures and significantly affect financial services industry insurance plan and course.

The usage of outsourcing support functions to provide services such as; ATM systems, card processing, expenses presentment and repayment, software development, call centre operation and net work management etc, is targeted towards It desires to provide a wide range of financial services products and services offerings to meet up with the needs of its chosen market segments. The bank is currently providing various ranges of products and services to its customers. The bank has introduced a great deal of technological motivated product such as, mobile banking, automated teller machine (ATM), Udirect or internet banking, etc. With these product customers need not get to the lender to consummate their financial purchase. With internet bank and mobile bank customer can copy fund from one bank account to the other, customer receive notification of consummated transaction on their bank account on their cellular phone, and customer can make cash drawback from the ATM. There's also different types of loan product a customer can gain access to in the bank with respect to the customer kind of business, income level, workplace etc. Including the bank or investment company has loan facility structured totally for customers that are under pay work such loans are NO wahala loan, professional loan, assets finance loan etc. While customers that are not under pay job can access Short term overdraft and commercial loan.

The structure at exactly the same time is not aiding some goals of the company because of some factor of bureaucracy in its framework. There are so many functional and procedural bottlenecks, needless paper work that slow down transaction, time consuming procedure, and inside control of maker/checker/verifier. This defeats the organisational goal to be the reference point point for service, quality and innovation, the bank is more control concentrated than being customer centric. For example, the newly released account reactivation types of procedures which is encumbered with a lot of rework and not cost and time effective in the sense that an address confirmation and Know Your Customer treatment would need to be carried out again before an existing customer of the bank can re- activate his/her account which negates the bank's service quality drive.

There is also a mismatch in between the organisational structure and the organisational goal in the area of branch management. The branches are profit centres. The branch managers are expected to create income and pay all operating expenses including salaries. The business enterprise managers target more on cost search engine optimization in other to generate profit as against being customer centric. The business enterprise managers compromise lots of things like availability of working resources and maintenance of office gadgets. All these accessories frequently breakdown because they're not service as at when due and has also led to service failing and customer dissatisfaction. Customers spend additional time in the bank hall due to limited quantity of staff available to focus on their requests.

Another major mismatch is the limitation and control of the empowerment coverage. For instance, Business Professionals cannot approve certain degree of expenditure which are extremely vital to their daily operations. Such include the purchase of energy, stationeries, between others.


Having examined the various theoretical approaches to organisational composition design, it can be concluded that there is absolutely no best way of structuring an company; so many factors such as size, environment and technology contribute to how an company is structured. The goal of an organization is also a factor to consider when structuring an company. Considering the composition of United Bank or investment company for Africa plc some components of Bureaucracy in its framework is creating operational and procedural bottlenecks and you will be necessary to be check. Although, the framework is versatile and respond quickly to environmental changes. Anon 2008). The next is preferred for improvement.

Job holder should be empowered and become held fully in charge of job done. Corresponding to Cole G. (2004:200) "Authority should be commensurate with responsibility" That's job holder should have the authority for taking decision on the job.

The standard bank should take up a 'low fat structure' which will help to reduce the number of levels and pointless administrative over brain. Fincham and Rhodes(2003)

Purchasing of office equipment, materials and maintenance of equipment should be centralized to be able to take good thing about bulk purchase and manage cost effectively.

The loan company can also take up a "Radical Decentralization" Anon (2008) composition by decentralizing corporate and business functions to functional division. This will likely fortify the branches, improve communication, individual co-operation, encourage team work and remove staff/line discord. Linstead, Fulop and Lilley (2004)

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