| This article examines and sums up the reform practices for operational and organizational management of commercial banks in China and how such are being practiced in major Western countries against the background of the ongoing reform of the banking industry worldwide and, in the light of the thoughts and methodologies of the organization theories and applied theories, makes an extensive analysis of the causes, steps taken, dominant factors, macro- and micro-effects, guiding principles and dynamic evaluation systems of the evolution of the operation and organizational modes of commercial banks. This is done in a bid to present the weaknesses of the experimental reform of organizational management modes of commercial banks in China and to propose a core framework and implementation steps of the target organizational management modes of commercial banks in China. Through an in-depth analysis on the application of the organization theories in commercial banks and the causes, the steps taken, the dominant factors and modes of the evolution of organizational management modes of their western counterparts, this article presents the idea that the efforts of commercial banks to reform their organizational management modes to accommodate huge external changes have been a realization of their business philosophies, strategic thinking and internal resource integration capability and a base to build up strong competitive advantages. With the macro- and micro-effects brought about by such reforms, the organizational management modes of commercial banks have become an important factor affecting the implementation of monetary policy, banking security and resource allocation efficiency and they are the strategic resources that commercial banks must constantly cultivate in order to enhance core competitiveness. As a matter of fact, the national conditions and market environments are different in China and the West, with commercial banks in China and major Western countries developing along different courses. As such, the commercial banks in China cannot produce a cookie cutter copy of the organization management modes of the commercial banks in the West, but should borrow the latter's advanced concepts and methods gained through their reform processes. Their local modes are something worthy of drawing upon and introducing into Chinese banks. Having said that, this article starts with research findings into typical cases of the experimental reform for the organizational management modes of commercialbanks in China, analyzes the experiment results and limitations and advocates that in reforming their organizational management modes, commercial banks in China should focus on selecting, implementing and managing target modes and on cultivating and enhancing their core competitiveness mainly driven by organization management advantages by stepping up the implementation of the target modes. An effective pathway should thus be selected to match their external environments and development stages in a bid to implement the target modes.This article is divided into seven chapters.Chapter 1 is an introduction chapter comprising an overview of the topics, contents, main contentions and structure covered through a description of the study background, objects and methods. This article holds that the organizational management modes of commercial banks are the various modes in which the commercial banks, in an effort to create more values, thrash out reform measures for their concepts, flows and structure of organizational management by capitalizing on the applied results available in the organization theories and the information technologies with a view to integrating the external environment, strategic targets and internal resources and efforts to enhance core competitiveness.Chapter 2 is the beginning of the body. This chapter describes in brief the organization structure and the application of the organization theories in organizational management. On one hand, through an analysis on the common organization problems, it examines the internal relations and characteristics of commercial banks as part of the common organizations. On the other hand, by systematically studying the development of organization theories, the viewpoints of the organization theories at different stages of their development and their application to common enterprises, this chapter, seeks to formulate a theoretical foundation, study methods and management tools for the further study of organizational management modes of commercial banks. After an in-depth analysis on the application of organizational structural designs and enterprise reengineering thoughts, this article holds that on the one hand, the distinctive characteristics of commercial banks differ from common enterprises and as such, make the application of the organization theories in commercial banks more comprehensive, target-oriented and free from the limitations of their application as in common enterprise organizations. Therefore, commercial banks are ideal organizations for the application of the organization theories. On the other hand, the application of the organization theories in commercial banks has actually enriched the organization theories themselves, especially in theareas of organization; structure design and thoughts on enterprise reengineering.Chapter 3 analyzes the causes and paths of evolution of organizational management modes of commercial banks in major Western countries and elaborates them using the HSBC as a typical example. The article advocates that changes in the operation environment driven mainly by external factors are the main causes for the reform of organizational management modes for commercial banks in aspects such as business concepts, organizational structures, organizational forms, operation systems and accounting modes. This chapter also includes an in-depth analysis on the impacts of revolutionized information technologies and banking de-regulation on the operational concepts and organizational management modes of commercial banks. This article points out that the main directions of the reform of organizational management modes of commercial banks are: a shift from product orientation to customer orientation, from function domination to flow domination, from a layered structure to a flat structure, and from branch orientation to professional distribution channels. To clarify the causes and paths of the evolution of organizational management modes of commercial banks, this article takes HSBC as a typical case, delving into its history of development, shareholding operation and the layered structure and management of its shareholding rights.Chapter 4 takes an in-depth analytical look at the dominant factors affecting the organizational management modes of commercial banks from the practical perspectives, pointing out that the dominant factors are the external environment, strategic targets and internal resources. Commercial banks shall tackle and manage the external environment, form a framework that integrates the organization and environment as well as reform the organizational management modes in a bid to adapt the organizations to the external environment. Commercial banks should also select and determine a platform capable of integrating high-level strategic directives and the technical factors and balancing the profits and risks in the technical factors. The process itself fosters and perfects the matching organizational management modes. As a matter of fact, in order to give full play to the advantages of various factored resources and achieve core competitiveness, what can be truly relied upon is the organizational management system capable of integrating all of them. The internal resource factors also push commercial banks to attempt to form and constantly improve their organizational management structure in order to enhance their ability to coordinate and integrate various factored resources.Chapter 5 discusses an in-depth analysis on the macro- and micro-effects oforganizational management modes of commercial banks and points out that the impetus is from the macro-external environment to improve the efficiency and security of the banking system and the internal introduction to enhance core competitiveness. Such are the main causes for reforming the organizational management modes of commercial banks. On one hand, the organizational management modes of commercial banks are a dominant factor in maintaining banking security, improving resource allocation efficiency and furthering the effect of monetary policies. As such, it is macroscopically significant to emphasize and promote the reform of organizational management modes of commercial banks. On the other hand, the core competitiveness is essential for commercial banks to survive competition chiefly as a result of their organizational management advantages, which is a factor of the core competitiveness of many commercial banks. The optimization and integration processes of the organizational management modes of commercial banks are actually the cultivation process of organization management advantages. They are also a necessary factor for commercial banks to enhance their core competitiveness.Chapter 6 examines from different perspectives the four basic principles guiding the organizational management modes of commercial banks. Efficiency-oriented principles hold that it is necessary to divide the workflow up into front, mid and back desk and define the functions of the basic activities and supporting activities. Customer-oriented principle holds that it is important to highlight the customer-oriented marketing function in the front desk and segment the foreground workflow based on the demands and contributions of customers and markets. Coordination-oriented principles hold that in view of the diversified and varied interest targets and business segments in different organizational management modes, commercial banks should make more efforts to set up and upgrade management information systems. Professionally-oriented principles hold that professional division of labor may more efficiently accommodate the diversified markets and the varied customer needs. However it is quite difficult to use qualitative principles alone to effectively evaluate and judge whether organizational management modes are fit for the dynamic changes of the external environments. Without the more reasonable and effective quantitative dynamic evaluation system, it is unlikely to implement process control and dynamic adjustments for organizational management modes. This chapter draws upon the principle of hierarchical analysis and fuzzy mathematics in an attempt to find a system for the quantitative dynamic evaluation for organizationalmanagement modes of commercial banks.Chapter 7 first discusses experimental reforms for organizational management modes of commercial banks in China and hold that neither the experimental reform urged by the government nor that induced by internal causes radically solves the outstanding problems for the mainstream organizational management modes of commercial banks in China. The key drawback discussed here is the lack of target modes. The reform and evolution processes of the organizational management modes for commercial banks is in fact the process of selecting, implementing and managing target modes. The reform of the organizational management modes of commercial banks in China must be based on the selection and management of target modes. The core framework for target modes, as a basic and guiding principle for the reform of the organizational management modes of commercial banks in China, can be summed up as the division of workflow in the front, mid and back desk, professional and centralized management of businesses, identification of the management functions as authorization for regional centers of province-level branches and the definition of distribution channels of business outlets. In view of the present conditions of the current organizational management modes of commercial banks in China, this article starts with basic institutional arrangements and goes on to systematically examine the implementation paths for the reform of the organizational management modes of commercial banks, including the general principles of implementation, ways of removing obstacles, and effective problem-solving arising from the implementation process. This chapter also presents the main measures and reference cases for overcoming two biggest technical barriers for promoting target modes: dealing with information technologies and management accounting. In the conclusion section, this chapter puts forward recommendations on supervisory policies, including the guidelines on organizational management modes that should be contained in the any guidelines for good corporate governance, on the flat structure of management, functions identification of distribution channels and management of institution admission. Specific supervisory policies should be implemented for the professional management of different business modules.
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