Bank Of America Management Style Analysis

Culture and Management Style: The way Bank of America present its own culture will influence the performance results of the management team implementation of the organization control system, management style is probably the most important and will have the biggest impact on the management control system depending on how the management team is perceived in the entire organization, from the CEO down to the lower layer of supervisors. Informal Organization: Management needs to recognize the importance of communication, relationships and responsibilities at all levels of the organization, every layer of management is of importance to one another. Sources of communication are also of importance and can affect the performance of controls systems one way or the other. Perception and Communication: Organizations goals are set, so managers have to know what those targets are, take course of action to accomplished them, ensure there is a clear understanding of what management expectations are throughout the different layers of employees, all these factors have a huge influence on how effective the management control systems will performance. Formal control systems can be divided into Management control system itself and Rules, in Rules we can conglomerate: Instructions, jobs descriptions, SOP, manuals, guidelines, etc. Most rules are clearly set and need to be reinforce by management, they can be modified which don’t happen too often, only under special circumstances, if the overrule is on the best interest of the organization. Some are requirements and others are prohibitions of certain behaviors or actions, some should never be broken or overrule. Physical controls: includes but no limited to vaults, security guards, locked storage rooms, computer passwords, TV surveillance, etc. System safeguard are built in into the information processing system to ensure accuracy of the information flowing through the system, including transactions authorizations, counting cash, signature capture, etc. The design of an organization’s management control system is determined by the structure of it despite of the size, they are as follow: A) Functional structure, every manager is responsible for specific functions. B) Business unit structure, a manager is responsible for most of the activities and the unit function as a semi-independent piece of the organization and C) Matrix structure, where units have double responsibilities. In conclusion designers of management control systems should take into consideration either approaches, they should fit the system into the organization structure and decide in which combination will be the best interest of the organization, rather than which process will be easier to accomplish. …show more content…
The comptroller is the person responsible for designing and operating the management control system, preparing financial statements and analyzing reports, supervising internal audits and accounting control procedures to ensure validity of information, controlling the integrity of the accounting system and safeguarding of company assets from theft and fraud, also playing an important role on strategic and budget planning. Dealing with internal controls, next three different citations from peer’s presentations where we can see signs of failure or other issues relate to the way internal controls were handled and the adverse consequences paid by the organizations. A) “The study contents that commercial bank of Africa regards Non-performing loans concluded that Bank-specific factors being internal to the Bank and implicating the Bank internal processes and policies were a direct influence on the Non-performing loans”. (Nkurruhan, 2014). Another example, a manufacturing internal audit point out how the behavior of a considerably amount of auditors were negatively affecting their organizations, the same internal control system after receiving complaints, …show more content…
The key enhancements include increasing the focus on risk culture and ensuring consistency with regulatory guidelines, which is fundamental to the organization core values and operating procedures, requirements are to focus on risk in all activities and encouraging the necessary mindset and behavior to be able effective risk management and promoting sound risk taking within the limits already set. Bank of America Risk Framework is the heart of comprehensive risk management, it clearly detail responsibilities and accountability for managing risk. The Risk Framework sets roles and responsibility for the management of risk by front line units, independent risk management, control functions and Corporate Audits, risk Management Governance, and provide a blueprint on how the Board, through delegation of authority to executive officials and