Analyze and explain the bank in terms of factors affecting organizational design and organizational structure variables. The

Analyze and explain the bank in terms of factors affecting organizational design and organizational structure variables.  

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The organization of Banco Mercantil reflected the country's traditional economic structure. There was a big capital-city division, headed by the bank's president and chief executive officer himself. Its hundreds of branches outside the capital reported through regional headquarters to the one executive vice president in charge of the "Zona Interior." He, in turn, reported to the president. Then there had been formed a corporate banking division, first within the capital-city division, then as a separate division. This, too, was headed by an executive vice president who also reported to the president. International banking, mortgage banking, and fiduciary banking (investment management, especially of pension funds) also had evolved into separate divisions, headquartered in the main office in the capital and headed by executive vice presidents reporting to the president. At first, this structure worked, but with the growth of provincial cities the Banco Mercantil had clearly outgrown its structure. The organization of Banco Mercantil reflected the country's traditional economic structure. There was a big capital-city division, headed by the bank's president and chief executive officer himself. Its hundreds of branches outside the capital reported through regional headquarters to the one executive vice president in charge of the "Zona Interior." He, in turn, reported to the president. Then there had been formed a corporate banking division, first within the capital-city division, then as a separate division. This, too, was headed by an executive vice president who also reported to the president. International banking, mortgage banking, and fiduciary banking (investment management, especially of pension funds) also had evolved into separate divisions, headquartered in the main office in the capital and headed by executive vice presidents reporting to the president. At first, this structure worked, but with the growth of provincial cities the Banco Mercantil had clearly outgrown its structure.

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The organizational design and structure of Banco Mercantil reflect several factors affecting organizational design and it also highlights areas where the structure might be inadequate for the banks ev... View the full answer