Research Of The Relationship Between The Listed Commercial Bank’s Organizational Slack And Business Performance

There are different degrees of Organizational Slack in any business companies,and how to use this slack effectively and significantly to improve the performance ofthe enterprise, is a very important problem.Our listed commercial banks relay on the profits from the interest revenue in thepast few years. A proactive fiscal policy and loose monetary policy ensure the banksannual income in a long time. And the bank also makes large investment in humanresources, organizational resources, that makes a certain slack within theorganization (over investment or retirement). Nowadays, Our Banking industry’senvironment has a large transformation: the regulatory policy become more andmore serve, especially the higher capital regulatory restrictions and the People’sBank continued to adjusts the required reserve ratio for commercial banks anddeposit&loan rate, that holds down the profit volume of the listed commercialbanks.Our listed commercial banks should through reconfiguring internal and externalresources to achieve optimal utilization. Through analyzing the listed commercialbanks’ four major kinds of internal resources types(human resources, organizationalresources, material resources and financial resources), we will find that there are alot of organizational slack in it, whether it is over-investment of resources or thewaste, it will affect the business performance to some extent. How to use theorganizational slack effectively to release the external pressure, make the internalinvestment change and improve the performance of the enterprise, is the mainproblem that our listed commercial banks should solve.I selected the2007-2012financial and operating data of the listed commercialbanks in China for the study sample, and use a combination methods of normativeand empirical research approach to find the relationship between slack resourcesand performance of China’s listed commercial bank. And finally I think therelationship between the organizational slack and the performance of listedcommercial banks in China is inverted U-shaped. There is an optimal amount of slack, more or less than the amount of slack, the impact on organizational performance arenegative. In the view of the above research conclusion, we bring up somesuggestions to improving the management of Organizational Slack in the listedcommercial bank, so that they can use the Organizational Slack effectively toenhance the management achievements.