Files

Business Finance

Assignment

On:

Agency Problems

Submitted

To:

PROF. IMRAN AKRAM

Submitted

By:

Daniyal Khokher

Roll No. 0124

M.Com A2nd

Date:

15 April, 2014

Introduction:

Allied Bank Ltd. It is situated in circular road, Wazirabad its branch code is (0407) there are seven employees excluding guards, and helpers etc, two of them are related to marketing and five are dealing with operational affairs.

There is some of the agency issues related to this branch:

Agency Problems

Punctuality:

Employee are not punctual, they come late so that they need time to settle their counter to perform their job well. Customers are waiting but there is no one who attends them.

Cost:

In that time the Bank can lose a healthy client or a heavy deposit.

Solution:

When an employee is not punctual the employees must be ready to attend the customers. Manager must punish him/her by cutting incentive from their salary. There must be an attendance sheet for employees so the manager can know easily that when an employee arrived.

Lack of Training:

New employees are not fully trained they take a lot of time to perform a task. So the customer dealing becomes slow.

Cost:

Because of it the burden of work is increased and the employee cannot deal with customer properly. It results in loss of clients.

Solution:

Before appointing an employee there is need to train them for their job so that they can perform their job effectively and efficiently.

Employees Favoritism:

While dealing with customers if any relative or friend of employee arrives they prefer them to deal with not to those who are come first.

Cost:

Because of this act of employees the bank loses its goodwill.

Solution:

The employees must follow the rule that “First come first serve”.

Lack of New Product Knowledge:

If Bank launched any new product and the staff don’t know about that.

Cost:

Because of this problem the employees cannot...