CHAPTER - 2 ORGANISATIONAL STRUCTURE OF KSFC
2.1 ORGANISATIONAL STRUCTURE OF KSFC
KSFC has extensive network, offices encompassing entire Karnataka. KSFC services every nook and corner of Karnataka with its network of 7 Zonal Offices, 3 super ‘A ‘Grade Branch Offices, 12 ‘A’ Grade Branch Offices and 14 ‘B’ Grade Branch Offices with an empowered and decentralized administrative system. It is the only term lending financial institution in the Karnataka with such a widespread network. Chairman, Board of Directors and the Managing Director, appointed by the State Government, make policy decision and prepare road map to KSFC. The day to day administration is monitored by Managing Director .The head office has various departments to render services to the customers. KSFC has two Executive Directors (FINANACE AND OPERATION) and 6 General Managers-Corporate Planning, Credits, Internal Audit, Zonal, Administration and Asset Reconstruction. At the senior management level, DGMs’, AGMs’, with a legal advisor and two additional legal advisors are functioning. Mangers and Deputy Managers execute the policies at the middle level. Zonal Offices and Super ‘A’ Grade Branches are headed by DGMs’. All ‘A’ Grade Branches are headed by AGMs’. Managers head all ‘B’ Grade Branches.
SRI L. V. NAGARAJAN, IAS, CHAIRMAN, KSFC MADAN GOPAL M, IAS, MD, KSFC
LIST OF BOARD OF DIRECTOR’S: SL.N o. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Sri. Kaushik Mukherjee, I.A.S. Sri. M. Madan Gopal I.A.S Sri. B.R. Prem Kumar Sri. S.D Burde Sri. V. Madhavan Nair, I.A.S. Sri. Gurdeep Singh Dang Sri. Sat Pal Sri. C. Basavegowda Sri. G.S. Doreswamaiah Sri. H.V.S. Krishna Chairman &Managing Director Managing Director Director Director Director Director Director Director Director Director NAME DESIGNATION
Table 2.1 List of Board of Directors
SL.NO. NAME Sri. M. Madan Gopal, I.A.S Sri. B.R. Prem Kumar Sri. S.D. Burd Sri. Gurdeep Singh Dang Sri. Sat Pal Sri. C. Basavegowda Sri. G.S. Doreswamaia DESIGNATION Chairman Member Member Member Member Member Member
1. 2. 3. 4. 5. 6. 7.
Table 2.2 List of Executive Members
Abbreviations for the various short forms used in the organizational chart
EA: Executive Assistant ED: Executive Director GM: General Manager AGM: Assistant General Manager IA: Internal Audit HP: Hire purchase IT: Information Technology AR: Asset Reconstruction SUMD: Sick Unit Monitoring Cell Division BD & CR: Business Development & Credit Research
Type of Organisation Structure KSFC follows functional form of organization structure. Under, functional organization, men with special abilities to perform specific function will be employed and the benefit of specialization will be enjoyed by the organization. This will certainly lead to organizational balance by using the services of specialists in the required functions.
Advantages of Functional Organization Functional form of organization structure offers the following advantages: 1) This method gives full scope for division of labour and specialization and therefore, enables the concern to derive all the advantages of specialization. 2) The most important advantage of functional organization is the extensive use of the expert knowledge of the specialists. Planning and execution of the work becomes scientific because it is entrusted to the experts in that field. 3) It reduces the burden of executives as they are not required to perform too many duties. 4) The system promotes co-operation as there is little or no scope for ‘one man’ control in the organization.
Disadvantages of Functional Organization This form of organization structure suffers from the following disadvantages: 1) The principle of unity of command is ignored under this system. 2) It is difficult to achieve co-ordination between the specialists and team-spirit among workers. 3) The overhead expenditure increases considerably because of multiplicity of specialists.
2.2 RESPONSIBILITY AND AUTHORITY OF KEY PERSONNEL OF KSFC Following job descriptions are made for the officers, AGMs and above level:
2.2.1 Managing Director Managing Director is the chief executive officer of KSFC responsible for overall strategies, policies, resources and operation of the business. He is the authority for implementing the directives of the board and also the disciplinary authority; as such he leads KSFC quality initiatives.
Responsibility and Authority of Managing Director 1) Setting the targets for various performance parameters & their accomplishment through suitable operational strategies 2) Empowered to carry out executive function including quality system either independently or through delegation of authority. 3) In addition to the above he is responsible and authorized
To define & review the quality policy and quality objective of KSFC. To define and develop the organizational structure, defining authorities & responsibilities of personnel and their inter relationship. To provide adequate material and human resource. To appoint management representative. To conduct management reviews.
2.2.2 Executive Director (Finance) 1) Managing the affairs pertaining to the finance and treasury. 2) Managing the affairs pertaining to all Branches and Zones, HO, Internal Audit functions. 3) Inspection of BOs and Review of operational performance of all BOs and other related departments in HO on monthly basis and submit reports & necessary guidelines, policies etc. 4) Any other matters related to above departments / BOs. 5) He shall report to Managing Director. 6) Effective implementation of Quality
System in his functional areas including: Review of Quality Objectives. Documents and Data Control. Verification plan and their measurement. Control of nonconforming services & Products. Corrective and Preventive Action. Process Control & its validation. Control of Quality Records. Quality Management Review
2.2.3 Executive Director (Operations) 1) Carrying out business operations as per the targets set for different performance parameters. 2) Managing the affairs pertaining to entrepreneurial guidance, business development, Sanctions, disbursement, Recovery of Moneys from all HO case, BD & CR, Asset Reconstruction, HP&FS, and FSD, Administration / Personnel, Legal (HO) departments& Industry Revival Group (IRG) Cell. 3) Issuing operational guidelines / policies. 4) Review of operational performances of related departments on monthly basis and submit reports. 5) He shall report to Managing Director. 6) Effective implementation of Quality System in his functional areas including :-
Review of Quality Objectives. Documents and Data Control. Verification plan and their measurement. Control of nonconforming services & Products. Corrective and Preventive Action. Process Control & its validation. Control of Quality Records. Quality Management Review.
2.2.4 General Manager (Credits) 1) Matters pertaining to sanctions, disbursement and monitoring at HO under authority delegated from time to time. 2) Supervision of functioning of Credits department. HO. 3) Appraising the project of specific category and recommending sanction of loans tothe sanctioning authority. 4) Release of sanctioned loan as per contract. 5) Transfer of loan file to recovery after final release of loan. 6) Assisting management in monitoring the policies / guidelines. 7) He shall report to Executive Director (O). 8) Effective implementation of the Quality System in their functional areas.
2.2.5 General Manager (Asset Reconstruction) 1) Overall In charge of AR & HP&FS Sections. 2) Matters pertaining to Recovery from non-accrued assets, 3) Periodical review of the work of section heads. 4) Investigation of personal properties, attachments obtaining decrees filing EP etc. 5) Conducting sale negotiation under SARFAESI. 6) Monitor & Review of all court cases of AR & HP&FS section including writ petitions, personal guarantee involved decreed EP etc.
7) One Time Settlement proposals from both BOs & HO in respect of DC & MR cases. Assisting management to form the policies/guidelines & Conducting DRC meetings at HO and other default review meetings. 8) Ensuring attachment of personal properties. 9) He shall report to Executive Director (Operations). 10) Effective implementation of quality system in the functional areas.
2.2.6 General Manager (Recovery) 1) Effective and Efficient functioning of the recovery portfolio. 2) Approving authority for reschedule/rephasement of the instalment during
implementation stage. 3) Approving authority for rehabilitation. 4) Monitor & review of recoveries 5) Review of related departments on monthly basis 6) Any other matter included his department 7) He shall report to Executive Director (O). 8) Effective implementation of quality system in the functional areas of recovery departments including; Document & Data Control. Control of Quality Records. Control of Non Conforming Products. Corrective & Preventive action. Quality Management Review. Review of functional level Quality Objectives.
2.2.7 General Manager (Personnel & Administration) 1) Managing the affairs pertaining to Administration and Personnel and Disciplinary wing. 2) Selection and getting approval and periodic assessment of subcontractors for maintenance relating to office equipment, buildings air conditioning, generators, transport vehicles, furniture, computers, communication system etc. 3) All establishment matters. 4) Procurement of office equipment, stationery and consumables. 5) Matters pertaining to staff welfare. 6) HRD, Recruitment, Disciplinary, Career Development Administration, Expenditure control etc. 7) Implementation of HR policies.8)All other matters related to above departments.
2.2.8 General Manager (Zones) 1) Effective and efficient functioning of branch offices (North and South). 2) Business Development. 3) Entrepreneurial Guidance 4) Enquiry handling 5) Handling of Application. 6) Appraisal of Projects. 7) Sanction and disbursement of loans. 8) Recovery of loan. 9) Inspection of BOs as per direction
10) Assisting management in modifying policies / guidelines 11) Ensuring achievements set targets of BOs coming under his Jurisdiction 12) He shall report to Executive Director.
2.3 AREA OF OPERATION KSFC services the nook and corner of Karnataka with its extensive network of 7 zonal offices, 3 super “A” grade branch offices, and 14 “B” grade branch offices with an empowered and decentralized administrative system. It is the only term lending financial institution in the state of Karnataka with such a widespread network. The area of operation covers the entire State of Karnataka. KSFC has Branches in all the district head quarters. The industrial units / service sectors established or to be established within the State are only eligible for assistance. The Branch Offices of the Corporation are adequately delegated with powers of sanction and disbursement. Generally, requirements of financial assistance up to Rs.100.00 lakhs are handled by the concerned Branch Office itself. If the requirement of loan is more than Rs.100.00 lakhs, the entrepreneurs will have to approach Head Office. Head Office KSFC’s Head Office is located at, M/s Karnataka State Financial Corporation, “KSFC BHAVAN”#1/1 Timmaiah Road, Near Antonment Railway Station, Bangalore -560052, Tel: 22250130, Web: www.ksfc.in
Super ‘A’ Grade Branches M.G Road Branch, Bengaluru. Jayanagar Branch, Bengaluru. Rajajinagar Branch, Bengaluru.
‘A’ Grade Branches Bengaluru Rural Belgaum Bellary Dharwad Gulbarga Hassan Kolar Mandya Mangalore Mysore Tumkur Udupi
‘B’ Grade Branches Bagalkot Bidar Bijapur Chamarajanagar Chitradurga
Davanagere Gadag Haveri Karwar Koppal Madikeri Raichur Shimoga
Zonal Branches Bengaluru Rural Belgaum Davanagere Dharwad Gulbarga Mangalore Mysore