Bellringer Before we begin this chapter, see what you already
know about banking by taking the chapter pretest.
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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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Slide 39
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
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
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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