I find it difficult to believe that the managers were not aware of the reoccurring fraudulent activities. A bank’s work environment is highly commensurate with that of a sales environment. Banks often have sales objectives aimed at credit cards, lines of credits, mortgages, and more. Therefore, with my experience working in the sales industry, I imagine that there are unattainable sales goals that are set and managers create pressure onto the employees to hit unrealistic sales goals. The agency problem plays a significant role since managers know that if their branch hit their sales goals it looks good to upper management, thus creating job security with the company.
Therefore, ethics should not get in the way of success in sales. Wal-Mart has been a leader in implementing new and cost effective methods to manage inventory. It 's important that employees are representative of their client base so they can understand their needs and know how to serve them. It doesn’t mean that people of one gender, age group, culture, etc, only work with those respective populaces. It means that the business as a whole is better able to relate to a larger people.
(Banerjee, 2015) Their results materialize the efficient management of the company, that is, how management has used the resources, provide more complete answers about what is being managed as effectively the company. For these reasons, management should ensure that the behavior of these indices, because while greater your results, the greater the prosperity for it. e) Evaluation of outstanding debt of Bayou Clinic Outstanding debt of Bayou clinic can be assessed through debt ratios. The debt ratio measures the intensity of all the debt of the company in relation to its funding, measures the percentage of total funds provided by creditors. However, Candy must analyze the interest coverage ratio and other ratios.
The strategies can be business level or corporate strategies. The business level strategies are the actions taken by an organization so as to have an advantage in a single market (Johnson & Scholes 2002). The corporate strategies are actions focused on gaining an advantage in multiple markets or industries. The strategic choice that an organization takes normally depends on the attractiveness of the industry and also its competitive position (Johnson & Scholes 2002). Thus, Wells Fargo applies the corporate strategy as the company has focused its operations in the banking industry.
However, financial performance subsists with different levels of organisation, which is concerned with measuring financial performance of organisation. These measures are categorised into four that includes profitability, gearing, liquidity or working capital, and investor ratios. However, the financial plan of organisation is associated with operating plan since financial plan involves revenue and expenses for the activities that are linked with each objective. Hence, the main reason, in monitoring financial plan is to audit the committee (Hasan, 2011). The main success factors of budgeting process in Tesco are completely based on interpreting objective with the financial measures.
Whether or not financial reports are not required to provide because the company is held privately, making sure that financial reports are accurate is still part of using an ethical accounting system. This applies even if a company’s financial reports are made accessible to creditors to acquire loans. Separating functions within the department is one of the ways in which an accounting department protects its accounting system ethics and internal users. For example, the authority to approve or sign checks is not given to the person who generates checks during the accounts payable function. This includes working across functions.
From this point of view, loyal behavior cannot provide a comprehensive conception of fundamental cause of loyalty. In addition, repetition occurs may be due to different restrictions resulted from the market. Therefore, the loyalty of this type of customer differs from the loyalty of those customers who really support a product and they do have psychological bond with a product and company. So, customer’s brand loyalty was considered as an attitudinal
By decentralizing its operations into numerous subsidiaries, Enron was able to hide huge liabilities and derivative losses of their financial statements. However as these started to accumulate, creditors and investors demanded their money back but Enron was unable to meet their requirements with a negative cash flow, thus going bankrupt. Moreover, Enron’s finances were an impenetrable maze of carefully crafted imaginary transactions between the subsidiaries and itself, which masked its true financial state and therefore could not seek help when needed. The importance of internal controls in a business’ corporate culture is established through the beliefs and values of upper management. Enron focused on maintaining the appearance of value rather than creating it, thus fostering a competitive and risk-tasking environment that promoted the use of unethical accounting practises.
Observation analysis Based on our data findings from three vital departments of the Royal bank, there are some inferences and assumptions we can make about the operations of the departments in terms of empowerment and Organizational Behaviour as a whole. In analyzing the data collected, we would want to show how concepts of OB link with our main topic of study (Empowerment) in real life situations. Although there are several OB concepts to relate our analysis to, we decided to focus on three concepts for Credit Administration department; appreciating individual differences, emotions, moods and stress management and work-related attitudes. From the concept appreciating individual differences, we realized that employees in the Credit Administration
5. Compliance Management 5.1. Preamble Compliance risk is the risk of legal or regulatory sanctions, material financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with laws, regulations, rules, related self-regulatory organization standards, and codes of conduct applicable to its banking activities. Compliance laws, rules, and standards typically include specific areas such as the prevention of money laundering and terrorist financing and may extend to tax laws that are relevant to the structuring of banking products or customer advice. Bank of Abyssinia S.C (BoA) as a Bank is committed towards best practices for its clients and stakeholders.