Page 141 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Organization Change and Development

Notes


Case Study The Farm Bank

he Farm Bank is one of the state’s oldest and solidest banking institutions. Located
in a regional marketing centre, the bank has been active in all phases of banking,
Tspecialising in farm loans. The bank’s President, Ratan Mohan, 72, has been with
the bank for many years and is prominent in local circles.

Exhibit 9.1: Partial Organisation Chart

Board

President Ratan Mohan

Vice-President Vice-President Vice-President Vice-President
Savings M.I.S. Loans Trust
A. Anand
Vice-President Vice-President
Operations
Asst. Vice-President Investments
Lata Sikand

The bank is organised into five departments as shown in Exhibit 9.1. A senior vice president
heads each department. They have been with the bank for years and in general reflect a
stable and conservative outlook.

The Management Information System
Two years ago, Mr. Mohan felt that the bank needed to modernise its operations and with
the approval of the board of directors, he decided to design and install a comprehensive
Management Information System (MIS).
The primary goal was to improve internal operations by supplying necessary information
on a more expedited basis, thereby decreasing the time necessary to service customers.
The system was also to be designed to provide economic operating data for top management
planning and decision-making. To head up this department, he selected A. Anand, 58, a
solid operations manager, who had some knowledge and experience in the computer
department.

After the system was designed and installed, Anand hired a young woman, Lata Sikand, a
young M.B.A. with a strong systems analysis background, as his assistant. She was the
only woman and considerably younger than any of the other managers at this level. She
was also the only M.B.A.

During the time since the system was installed, the MIS has printed thousands of pages of
operating information, including reports to all vice-presidents, all branch managers, and
the President. The reports include weekly, monthly, and quarterly summaries and include
costs of operations, projected labour costs, overhead costs, and projected earnings figures
for each segment of the bank’s operations.

Contd...

136 LOVELY PROFESSIONAL UNIVERSITY