FMB&T CASE STUDY
FMB&T is a growing regional commercial and consumer retail bank. FMB&T president, Marshal Pinkard, wanted to strengthen its Information and Technology (IT) division to be more operation efficient and to cope up with the current industry competition. Mr. Pinkard, saw the need to increase the support on IT division, had made a recent re-organization. He appointed Ayishia Coles as the bank’s executive vice president and chief information officer of its IT division. He introduced Ms. Coles to the organization and directed her to collaborate with other business unit on the support that will be needed from IT division. Apparently, the roles and responsibilities were not clearly defined on the on-set causing troubles and confusions in between the division.
II. CASE ANALYSIS
A. Problem Statement: Mr. Pinkard received a concern letter from Ms. Coles to clarify roles and responsibilities of each of FMB&T division because it is causing conflict among division and causing the staff of IT to feel de-motivated.
To determine an organization structure that will support the objectives of the company and to clarify functions of each division. C. Evaluation of Alternatives
FMB&T have the following alternatives:
A. Functional Organizational Chart:
This will help management on the effective use of resource such as IT support and directions will be coming from the top management priority of objectives.
B. Divisional Organizational Chart:
Each division will have a control on all of its resource/support to achieve divisional objectives.
In divisional structure, the differences of opinion among finance, marketing, operations, logistics and information technology would be resolved at the divisional level rather than by the president. Divisional structure encourages decentralization. Decision-making is pushed down at least one level in the hierarchy, freeing the president and other top managers for...
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