CONCEPTIONAL MODEL OF COMMERCIAL BANK MANAGEMENT
Keywords:bank, bank network, organizational structure, network organization.
Commercial banks are business companies, however, due to their specifics they must be conservative in their decisions, but dynamic in customer service. These two preconditions are vital for surviving in the competitive environment of business. Conservativism is reflected by statics; hierarchy in decision making at the management level ensures fast adoption of strategic decisions, which is regulated by the levels of subordination. Dynamic work of departments in customer service level warrants flexible, fast and qualitative relationships with the users (clients). It is noteworthy that when comparing improvement and adaptation of banks and organizations in general, it can be seen that banks are rapidly introducing innovations, supplementing the scope of their offering with electronic services: electronic banking, payment cards, online credit services, etc.; however, when analyzing the improvement of organizational structures, it can be stated that in banks there is no adjustable organizational structure, thus, rigid relationships remain between the elements of the bank, preventing the development of responsibility and flexibility. The explored scientific literature allows stating that the scientific literature purposely analyzing the bank development process and its consequences to the structure of management as well as to the management of bank network has not been widely analyzed, and the sources of literature are sparse. Scientific literature on the subject of banks more often deals with the management aspects of bank assets’ liquidity; it also considers the bank risk management models, while emphasizing the importance of operational risk management. The article is dedicated to revealing the management of the commercial bank network when changing the established organizational structure with the two main parts – static and dynamic. Based on scientific works of management specialists, the essence of the bank and its organizational structure is discussed, process of bank development is revealed, which represents the prerequisite for the new structural model of bank management. Tactical management of the bank ensures its vitality – support and performance of all functions. Strategic management includes the entirety of decisions, which determine the bank’s success. Day-to-day management refers to dynamics, and dynamic organizational management structure is, therefore, necessary. Strategic management is statics, and static organizational management structure is, therefore, needed. Strategic management is ensured by the manager of the organization, in this case, of the bank. Manager (of the bank, bank branch, department, division) has to make strategic decisions not as fast as tactical (everyday) ones. Day-to-day decisions cannot be postponed, they must be made immediately, rapidly, in order to ensure smooth process of work, satisfaying the customers. Dynamic model of commercial bank management allows manifestation and revelation of employees’ competence, qualification and creativity in routine activities. Moreover, the staff also assume the responsibility and do not digress from the limits of their empowerments. Conceptional model of commercial bank management should be highly beneficial to the bank: more funds could be allocated to scientific research works, market research, training of the staff and improvement of qualification; an opportunity would appear to attract the energetic specialists and managers of high qualification with higher salaries.