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Day-to-Day Activities Banking & Finance

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Bellringer Before we begin this chapter, see what you already know about banking by taking the chapter pretest. www.g-wlearning.com

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Organization and Management Explain how organizational charts are used in the banking industry. Describe how banks are structured. Describe the role bank management plays in meeting bank goals.

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Biz Kid$ Video Bank Management

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Activity Create a family tree, including at least two generations. How is a family tree similar to the organizational chart of a bank?

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Organizational Charts Diagram representing the structure of a company or organization Position of each element shows its place within the group Lines link workers to their supervisors Allows you to see relationships among individuals and groups

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? Question ? Why are organizational charts used?

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Bank Structure Groups can be set up using several factors: Function Number of people performing the same function Amount of money the group earns Geographic location Most Common Groups Departments Branches Run by Managers Executives

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? Question ? What are four factors that can be used to determine groups in a banks organization?

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Bellringer 1.Name 3 departments usually found in a business.

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Departments Group created when several employees in a business are working on a specialized task. # of workers depends on task and size of business Common departments in business: New customers (marketing) Existing customers (customer service) Employees (human resources)

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? Question ? What department(s) do you think youll find in banks?

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Branches Facility that is not the banks main location Large banks may have in several cities Opened if doing so will increase profits

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? Question ? Why would a bank open a branch office?

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Bank Management Manager - Bank employee who is in charge of a segment of a business Responsibility Duty to complete an assigned task well Authority Power to affect or direct a situation or a workers behavior

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? Question ? What are two qualities managers must possess to manage effectively?

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Bank Management Executives- managers who have the responsibility and authority to make decisions about the bank and how it conducts its business Set goals for the entire bank Structure of executive management depends on size and ownership Common positions: chief executive officer, chief operating officer, chief financial officer, and president

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Bank Management Board of Directors group of individuals elected by a banks shareholders to represent them and guide the banks policies and business decisions. Ultimate authority, affects how bank operates Executives could be members of board of directors Board of directors selects one member to be chairperson (leads meetings reporting banks health and policy decisions are made)

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? Question ? Which executive is responsible for carrying out the policies that the board of director establishes?

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Paired Activity Draw an organization chart for Ridgeway High School. Include at least three levels.

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Bellringer 1.How are executives different from managers?

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Individual Activity Select a local bank. Visit its website. Based on the information on the website, identify the managers and executives. Create an organizational chart to show their ranks.

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Homework Have the following completed by Thursday. 1, 2, 4, 5, 10, 11, 19, 22, 26, 30, 32, 35, 39, 40

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Special Departments

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Bellringer (15 minutes) Word Study Foreclosure Repossession Garnishment

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What are we Learning about Special Departments? Describe the special functions that banks perform. Explain the administrative tasks tellers perform. Explain how a bank collects funds from unpaid loans. Describe the role of compliance in bank operations. Why do I need to know this?

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Think about this... What are some of the rules of RHS or this classroom? How do we make sure these rules are followed? What are the consequences for breaking the rules? Who is in charge of making sure the rules are followed?

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Front Line Operational Support: Go Tellers! Transactions New account functions Safe deposit boxes (protects items from fire, flood, and theft) Customer interaction Balance the cash drawer FedCash Services (ordering currency from Federal Reserve Bank)

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Which position in a bank is responsible for front-line operational support?

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Loan Collection Transfer of past-due loans to a bank department or outside agency that attempts to gather full or partial repayment of the loan.

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Banks dont want to lose money! Take the property if the loan was secured Negotiate with the borrower Take court action to recover lost funds When economic conditions are poor, the need for collections increases.

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What are the three options a bank has if a borrower is unable to repay a loan?

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Secured Loan Backed by an asset _______________: legal process of ending an owners right to a property (real estate houses, commercial buildings, and land) _______________: occurs when the bank takes property from a borrower who is not able to repay a loan (car or vehicle)

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Negotiation When a customer cant repay, everyone loses. Borrower and bank can negotiate terms of loan. Reducing interest rate Extending length of loan Keep property

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Court Action Bank can take borrower to court for unpaid loan __________: withholding all or part of a borrowers salary to pay outstanding unsecured debt or bounced checks Last resort for unpaid loan

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Compliance Banks are heavily regulated to protect customers __________: process of following laws and regulations Compliance personnel research and analyze changes needed to follow the rules Compliance staff develop new procedures, monitor actions, and prepare records for bank managers.

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What role does a compliance department play in a bank?

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How is collection on an unsecured loan different from collection on a secured loan?

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Small Group Activity Because banks deal with confidential and personal information, the ethical character of their employees is very important. Using what youve learned about the responsibilities of bank employees, create a 3-5 slide PowerPoint presentation on the ethical qualifications for different levels of bank employees. Greens tellers; yellows loan officers; reds bank managers; blues compliance officers

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Homework Complete the following questions in your test packet by 3, 8, 9, 12, 13, 14, 15, 21, 23, 28, 33, 36, 37

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Tuesday Bellringer What do you think `is the last resort for collecting an unpaid loan?

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Thursday Bellringer What are three hazards that safe deposit boxes protect their contents from?

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Bellringer How do banks use FedCash Services?

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Friday Mr. Hardin is having a bad hair day!

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Activity15 minutes Find an advertisement for a banking position. Based on the ad, describe the job responsibilities and the necessary skills and education.

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Human Resources Summarize the role of the human resources department. Explain the process involved in recruiting and hiring a new employee. Describe benefits that may be offered to employees. Explain the employee review process. Discuss the importance of maintaining employee records. Why?

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Human Resources Department (HR) Finds and supports employees who contribute to the success of the bank Tasks separated into 4 categories: Recruiting and hiring new employees Managing employee benefits Conducting or supervising employee reviews Maintaining employee records

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Recruiting and Hiring New Employees One of most important roles Attracting the best people for positions in the bank Multistep process: 1.Recruit applicants 2.Interview selected applicants. 3.Verify references. 4.Hire the best applicant.

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What are the steps in recruiting and hiring a new employee?

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Methods for Recruiting Applicants Promotions Media advertising Job fairs College visits Employment agencies

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Recruiting Applicants Promotions Encourages employees to excel at jobs to progress on a career path Series of jobs with increasing responsibility within a specific career. Notifications of positions: Posting on a company bulletin board Announcement in company newsletter Announcing in company meeting Posting on company website Sending company-wide email

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Recruiting Applicants Media Advertising Internet is where companies often advertise open jobs Company websites General employment websites: Indeed.com Applicants are encouraged to apply through website or email Keywords are used to get attention of those with skills and experience HR looks for Social media sites: (LinkedIn)

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Recruiting Applicants Job Fairs Recruiting event attended by one or more companies that are seeking new employees Most held in hotels or conference centers Some on college/university campuses Each company has a table or booth May accept applications for specific job openings

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Recruiting Applicants College Visits Banks often work with colleges to set up interviews with graduating seniors (specific majors)

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Recruiting Applicants Employment Agencies Match an employers available jobs to workers who have the needed skills, education, and experience. Private companies or government agencies Works with both employers and job seekers

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List five recruiting methods.

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Interviewing Applicants An interview is a meeting between a company representative and the applicant. Meant to see if the applicant is a good match Done by reps from HR, managers, coworkers Applicants skills will be tested, if necessary Confidentiality, ethics, and honesty may be discussed.

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Verifying References After applicant passes interview, company will contact references A person who can provide information about the applicants work history or character. Will be asked to verify info and recommend applicants work

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Hiring the Best Applicant Based on: Education, work experience, technical skills, leadership, interpersonal skills (ability to work with others) Cannot be Based on: Applicants age, gender, race, religion, or ethnicity

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Managing Employee Benefits Services or privileges that an employer provides in addition to the employees wages or salary. 401(k) and stock options Scholarships Free training Paid sick days Wearing casual clothing on Friday Free parking Direct deposit 4 weeks of vacation per year (new employees get 1 week) What if there is a problem with any of this?

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Reviewing Employees aka Performance Evaluation (look at how well an individual employee is doing his or her job) Clarify an employees role in the organization Determine whether strategic plans are being carried out Open lines of communication Assess the extent to which goals have been met Gauge employee potential for advancement Provide feedback to the employee and supervisor Identify differences in expectations and outcomes Discover areas for needed support or training Conclude if performance level merits a pay increase

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Reviewing Employees http://www.slideshare.net/hossam08/sample -employee-performance-review-8585108http://www.slideshare.net/hossam08/sample -employee-performance-review-8585108

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Reviewing Employees Annual Reviews Usually conducted by the employees manager Can be tied to an annual increase in wages based on performance Unacceptable Performance If an employee performs poorly, he/she may be placed on probation Period of time in which the employees performance is closely watched Could lead to termination Unethical behavior could lead to immediate termination Illegal behavior could lead to arrest.

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Who conducts a performance review? What are two possible consequences of poor work performance?

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Maintaining Employee Records Cover every action and decision from first to last contact Meet government requirements for recordkeeping State laws about access vary Not Kept: drug- screening tests, injury reports, personal- credit history, health, background checks, and criminal- investigation results

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What personnel records are employees not allowed to access?

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Employee Records EmploymentFinancialPerformanceExit ApplicationTime sheetsPerformance reviews Final interview ResumeTax formsTrainingFinal performance review Reference verification BenefitsSkills

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Small Group Activity20 minutes In groups of 3, imagine you are the human resources department of a bank and need to recruit applicants for 3 positions: teller, personal banker, and chief executive officer. Research the general qualifications and duties of these positions. Consider how you will evaluate and recruit applicants. As a group, develop a recruitment plan for these positions.

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Individual Activity Complete Chapter 10 online Post Test www.m.g-wlearning.com

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Homework Complete the remaining questions in your test packet by Friday Be sure to complete the Math Activity section as well.

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Bellringer10 minutes Write 10 questions you would be asked if you interviewed for a teller position.

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Bellringer10 minutes Research sample performance evaluations on the Internet. What employee qualities do managers and employees consider when creating performance evaluations? Submit

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