Chongqing Bank To Promote The Division System Reform

In the early 1920's,the General Motors Corporation faced series issues facing the acquisition of many small-sized companies,the increasing of product varieties and business projects,while the internal management was very difficult to straighten out the problem.The vice executive president of General Motors,Sloan,came out with series measures,specifically targeting at the above problems.He rebuilt the structures of the original organization based on the product lines so that GM had the great success on consolidation and development. It's laid the foundation of system management division.So division system was also known as "Sloan model" 20 years later,division system,"Sloan model",was gradually used,promoted and improved in many industries. In the 1970's,after the U.S.government had eased banking business restrictions on scope and geographic regions,many large commercial banks got the rapid expansion of the scale and scope through restructuring and mergers.The system defects of linear functions were gradually exposed."Production-oriented" in straight line functions of the system began to shift towards a "market-oriented"new organizational structure.In the late 1970's,division systems gradually replaced linear functions of bank internal structures.It had become a widely used organizational structure in west commercial banks since 80 years.After the success of joint-stock reform and rapid growth of the business for many years,Chinese commercial banks generally faced many new problems,such as to further strengthen the management of branch offices,to enhance the head office's control,to embody a legal system. The growing competition and rapid changes in the market for existing totalitarian system presented new challenges.It is time for us to renew the business strategy. The original vertical organizational structure no longer meets the rapidly changing needs of market competition.It is important for Chinese commercial banks to reform the existing total branch of the vertical model of administration,and to create an enabling business innovation and profit growth in flat-type business model.As a local city commercial bank,Chongqing Bank has been defined as "Local banks,community banks,small and medium-sized enterprises of the bank" for local economic and social development to make its due contribution when it was established in 1996.With the upcoming area of Chongqing,Chongqing bank's network "full coverage",as well as expanding cross-bound operations,"departmental system"banking model that hinder the development of Chongqing Bank has gradually revealed. In order to achieve strategic layouts which are "footing on Chongqing,expanding to the southwest,stationing central,northwest and the eastern developed regions in China,and Chongqing Bank eventually become the country's financial institutions listed on the idea, while achieving the goal of transformation to retail banking".It is necessary for Chongqing Bank to reform its organizational system,and gradually establish a matrix organizational system based on products, business lines,and the regional division for improving organizational efficiency and professionalism.This article aims to deeply analyze the necessity,feasibility,and the conditions,ideas,objectives and measures of reformation that Chongqing Bank pushes on the Division Reformation comprehensively, according to the theories and methods of the West Commercial Bank Division Reformation and combining with experience of China's commercial banks Division reformation.It is hoped to make efforts to carry on Division Reformation further in Chongqing Bank.This paper is divided into four parts:The first part is the main analysis of the Theory Division, introducing the division of the meaning,characteristics,roles, theoretical dynamics,business unit system management mode design theory.The second part analyzes domestic and foreign commercial banks, department reform the status quo,problems,errors,and the strategy should be taken.The third part is case analysis of the CMBC(China Minshen Banking Corp.,Ltd),as well as a city commercial bank division reform, and lessons for Chongqing Bank.The fourth part is the design of the Chongqing bank sub-division two-step system for taking forward reform program based on the organizational structure,division of authority,control system and embarked.This paper is to design the Chongqing Banking Division reform program,primarily through the case analysis of China's commercial banks in the cause of the current reformation success or failure of the Department.It hopes to promote the cause of reformation to provide references for Chongqing local city commercial banks.