F11-039 - Pham Hoang Lan.v.1.1.docx

With this management structure vietinbank will

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With this management structure, Vietinbank will achieve high operational efficiency because employees will work in their own departments, in line with their skills and expertise. This also creates responsibility, professionalism and clarity in each department. This is an organization that is learned from big banks abroad. This organizational structure has different advantages and disadvantages. In terms of strengths, this structure helps to organize Vietinbank's apparatus more closely. In addition, this helps to allocate and mitigate financial
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risks because of the need to audit and evaluate multiple stages and departments. However, the dividing too many small departments will lead to increased expenses due to more managers. 3.2. Critically analyse the interrelationship between various functions within Vietinbank and how they are interconnected to organisational objectives and structure of Vietinbank. The departments of Vietinbank and other businesses or banks have similarities and correlations, not just one or two divisions. Departments like a chain link are closely linked. For example, when opening a new branch, the central bank will set goals and targets, to achieve growth rate and profit plan exceeded last year. The Customer Department (Credit Bureaus) is responsible for finding and marketing clients (individuals or businesses) who need loans. Then, the Risk Management department is responsible for appraising the client's loan profile, analyzing the client's financial situation to make a proposal for a loan. After submitting to the director, when the customer needs a loan, the Disbursement Approval Department will control the disbursement documents for customers, compare and keep the credit contract and disbursement documents to ensure it is appropriate. Next, the Accounting Department will coordinate with the Customer Department and the Risk Management Department to determine how much the bank's interest ratesare appropriate for the customer. Documents from these two rooms will be sent to the Accounting Department for inspection before disbursement. This helps to control the moral hazard of credit officers. For debt incurred, extended, or transferred bad debts, the Debt Management Department is responsible for proposing appropriate debt settlement measures, coordinating with the Customer Department, debt recovery. In the case of bad debt that leads to litigation in the court, the department is also responsible for issuing all documents
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and papers of the parties involved. The relationship between the departments will help the bank operate stably and always strive to achieve the goal. 4.1. Purpose of Human Resource Function Human resource management (HRM) is defined as “the practice of recruiting, hiring, deploying and managing an organization's employees” (SearchHRSoftware, 2018 , p. ? ).It s provide the number of effective employees for business (Voer, 2014). Moreover, it is the orientation of workers management, associate with managers in controlling organizational management activity and changing the style. Besides, the HRM function in the branch
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