The Research Of China Minsheng Bank's Multidivisional Structure Reform

The multidivisional structure is a new management model,which was originated in the early 20th century.It changed the traditional pyramid of the upper and lower management mode,and also achieved the line of vertical management philosophy in an innovational way.Since the emergence of the management system of the multidivisional structure,it has become a practical management model,especially in many large and medium-sized enterprises.And a series of practice show that the multidivisional structure has lots of advantages,which the traditional management model doesn't have.The traditional banking industry pays attention to the financial services,which have successfully carried out the reform of the multidivisional structure in the western countries,so there are many cases of multidivisional structure in China's commercial banking system even it established late.For example,China Minsheng Bank(CMBC)has earlier implemented multidivisional structure.Firstly,this paper introduces the characteristics of the multidivisional structure.Secondly,it presents the effectiveness and the advantages of the multidivisional structure in different industries.At last,it analyzes the motivations and implementation process of CMBC's reform in multidivisional structure,as well as the latest situation of CMBC.Through the analysis we know,all kinds of management models will be effective and can't be perfect at the same time.The multidivisional structure also has weaknesses.In the past 10 years,data shows that the multidivisional structure can effectively integrate resources and promote the rapid growth of business.However,in terms of resource allocation and authorization management,if cannot be controlled and resolved timely,will bring great challenges to the reform.Based on the actual analysis of the achievements and existing problems of the CMBC.the author shows the advices to reform of the CMBC.Also it provides advices for the domestic commercial banks that will be prepared to implement the reform of the multidivisional structure management model.