The effect of organizational reformation for Banks’operational performance

• Main Authors: Shao-Wen Horng, 洪少文
• Other Authors: Li Chang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/59024549587501343541

碩士 === 世新大學 === 企業管理研究所(含碩專班) === 98 === In recent years, thanks to fierce competition and the financial reformation evoked by the government, the banking industry encounters more and more managerial challenges. In addition, the number of banks is increasing and the Direct Finance is prevailing, so that the demand of funds on market falls short of supply. Furthermore, the interest spread between deposit and lending interest rates has been shrinking. The above reasons result in more managerial difficulties on the domestic banking industry, whose income is mainly from the interest. Therefore, in order to improve the competence and operational performance, the banking industry has adjusted business strategies: They have been undertaking an organizational reformation and then forming a “regional center” or “financial model”. The sample bank (Bank T) is a case performing organizational reconstruction so as to enhance its competitiveness. The study aims to investigate the operating efficiency of Bank T, and takes its branches as the research targets. For comparing the difference of bank performance in the period between before and after reorganization, the study collects financial parameters from 2003 to 2008, including numbers of branch’s employee, square foot of branch, life time of branch, the amount of lending and deposit etc. Also, based on those parameters, the study adopts the Data Envelopment Analysis (DEA) as the research approach to find out the reasons for the poor efficiency as well as the solutions. The main findings obtained through empirical analysis are summarized as follows: 1. Organizational reformation indeed enhances Bank T’s efficiency. However, with a view to keep profits growing, they should not only pay more attention on employees’ training, but also on marketing strategies. 2. The “numbers of branch’s employee” and “square foot of branch” are related to branch’s efficiency. It indicates that the larger branch’s efficiency is better than the smaller ones. 3. For the sample bank, it has a significant influence on branches’ operational performance. The employees of branches could focus more on marketing instead of dealing with various affairs. Therefore, it would be beneficial to promote business of banking industry.