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MANAGEMENT CONTROL SYSTEMS

FOR
State bank of India


Submitted to: Mr.C. ANAND
Submitted on: January 15, 2013

Submitted by:
Sr. No. Name Enrollment No.
1 Shalini Shukla 11BSPHH0
2 Satya Anuragh 11BSPHH011144
3 S.Hemanth 11BSPHH0110
4 D.Uday Kumar 11BSPHH011089
5 G.Venkat Rao 11BSPHH
6 Sai Krishna 11BSPHH


2 | M a n a g e m e n t C o n t r o l S y s t e m s S t a t e B a n k o f I n d i a


INDEX
SL.NO. CONTENTS PAGE NO.
1 INTRODUCTION 3
2 ORGANIZATION STRUCTURE 4
3 MANAGEMENT STYLE & CULTURE 6
4 PERFORMANCE MANAGEMENT SYSTEM 9
5 MANAGEMENT CONTROL SYSTEMS 10
6
MERITS OF CONTROL PROCESS ADOPTED
BY SBI
17
7
DEMRITS OFCONTROL PROCESSES
ADOPTED BY SBI
18
8 RECOMMENDATIONS 19
9 CONCLUSION 20
10 REFERENCES 21






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INTRODUCTION
STATE BANK OF INDIA
SBI, a bank with 60% government stake, was Indias largest commercial bank and 43rd largest
bank in the world with a market capitalization of $36.5 billion in 2011. It along with its five
associate banks and 22 subsidiaries, which constituted the State Bank Group, had more than
26700 employees, a pan India network of over 18000 branches and 25000 ATMS, and delivered
profit of $2.6 billion.
The origin of State Bank of India set its roots in year 1806 when Bank of Calcutta was
established. In 1921, the Bank of Calcutta and two other presidency banks (Bank of Madras and
Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, in controlling
interest the Imperial Bank of India was acquired by the Reserve Bank of India and State Bank of
India came into existence by an act of parliament, as a successor to the Imperial Bank of India.
Today, State Bank of India has spread its arms around the world and has a network of branches
spanning all time zones. SBI provides a range of banking products through its vast network of
branches in India and overseas, including products aimed at non-resident Indians. It also has
around 130 branches overseas. It is one of the largest financial institutions in the world. It has a
market share of about 20% among Indian commercial banks in deposits and loans.
The Bank is forging ahead with cutting edge technology and innovative new banking models, to
expand its Rural Banking base, looking at the vast untapped potential in the hinterland and
proposes to cover 100,000 villages in the next two years.
SBI is also focusing at the top end of the market, on whole sale banking capabilities to provide
Indias growing mid and large Corporate with a complete array of products and services. Bank is
consolidating its global treasury operations and entering into structured products and derivative
instruments.
Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external
commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500
list.
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ORGANIZATION STRUCTURE
ORGANIZATION CHART



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There were four strategic business unit groups headed by Deputy Managing Directors. The
business units were:
National Banking Group
Rural and Agricultural Banking
Treasury and Markets
Mid-Corporate Group
The rural and agricultural banking group aimed into the enormous potential in rural India. The
creation of the mid corporate group was to cater to the second tier corporate borrowers and the
global capital markets.
There was a special committee group created, the Corporate Strategy and New Business
Group which was tasked with rolling out new businesses.
SBI was divided into 14 administrative circles each headed by a Chief General Manager.
Most circles consisted of two networks of branches, each headed by a General Manager. The
bank assigned each employee to a circle and then either promoted him within that circle or
posted him on assignments outside his circle on deputation. In order to provide executives a
diverse experience across functions, SBI promoted or transferred them every three to five years.
SBI employees were organized into three hierarchical levels officers (35%), clerical (44%) and
subordinate staff (21%). The bank selected clerical and executive staff through countrywide
examinations. It often promoted the clerical staff to the executive cadre. The bank recruited
executives as probationary officers, and after successful completion of training promoted them as
assistant managers. There were 9 levels between an assistant manager and the chairman.
At the senior level, decision making was mostly collective. The Central Management
Committee, the banks apex committee, comprising of the Chairman, Managing Directors and
Deputy Managing Directors typically met twice a month to monitor progress and take major
business decisions. This committee reported to the Board of Directors.


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MANAGEMENT STYLE & CULTURE
Organizational culture is a set of values, beliefs, and assumptions deemed appropriate in thinking
and acting inside an organization. Being shared by the organizations elements, culture helps
solve and understand external and internal problems. Established notions, stable and long-lasting
beliefs on significant matters and understandings of the relationship between various concepts all
contribute to the culture at work, so the members accept their validity and are influenced by the
same regarding the peoples perspective, thoughts, feelings, and behavior within the
organization.
Most organizations have their respective stories to tell, passed on from generation to generation
of employees and customers. These organizations have stories as medium of organizational
values and set of goals among members. Also, stories can persuade external people into throwing
support to the organization. Hence, stories are taken to be indispensably integral to the culture of
an organization, and are an essential part of its success. Same is the case with SBI. Its a bank of
more than 200 years old and it has been providing services to the nation and on that value it
proposes to move forward. This value is transmitted to its employees with help of stories. So
there is sense of commitment to the nation.
Another cultural behavior within the organization which outside people and employees may
learn from is rituals. Rituals are customary and recurrent practices that play a certain meaning in
any organization. They are functional for conveying the organizations major values and building
relations among employees, outsiders, and managers. Staff meetings, reward and evaluation
processes, and annual dinner or lunch are some of the organizational rituals conducted day-to-
day. These things go well with SBI also. In addition to that study leave and other benefits are
provided to SBI employees, which go well with SBI vision statement of a culture of mutual care
and employees commitment to bank & a sense of belonging.
An employees interactions with role models reflect his personality traits like expectations,
experience, self-confidence and competitive streak. These dealings become the cornerstone of an
employees career in the organization. New employees with positive role models build
confidence with their performance; obtain experience, aware of expectation from them and
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conscious of the organizations culture. At SBI for the last 10 years one role model for the
employees was Mr. O.P Bhatt. That has shaped the culture of SBI and gave it a competitive
streak as both old & new employees saw him as role model.
SBI, with its 18000 plus branches across the country, envisions maintaining diversity as a way of
life as its cultures core and its business foundation. The organizations objectives are to attract
and keep a manpower that reflects India, to make policies and practices that use human potential
to the fullest, and to build hopes, realize dreams and develop equity in partners, neighborhood
and communities.
With the help of training at SBI, prospective employees are expected to become best bankers.
For them to learn efficiently and perform better, they are provided with feedback. In effect, the
culture is crystallized into these employees and thus, it shares a hand in maintaining
organizational culture. An organizations culture, a few artifacts of which were just mentioned,
produces effects on corporate branding. In the course of prevalent globalization and international
franchising of companies, it is necessary for a systematic manner of managing the corporate
development in order to strive for long-term success. Organizational culture plays an important
role in making a companys image and reputation, both an increasingly important factor for the
decision-making of purchasers.
Vision is the compass of the organizationa medium used to lead the company to its desired and
desirable direction. An organization wants a future that ensures a lasting business, and through
envisioning does the organization locate itself at a specific success position. Vision of the
company shapes its culture with the help of values. These two have been playing important role
in shaping culture in SBI. The values of customer excellence, profit orientation, risk-taking
& innovation, team playing and transparency in policies & systems have helped SBI in
diversifying into new businesses as well. Vision of becoming premier financial services
company and an institution with a culture of mutual care & commitment and of providing
continuous learning opportunity have shaped both business and culture of the organization.
Like most companies SBI has fair share of red tape which frustrate both employees and
customers. If you have a file which does not have a political or big corporate backing, it will take
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months to move that file. This red tape is the reason of slow cross departmental work also. Other
than these work culture at SBI is formal and hierarchical in nature.
SBI recognizes and encourages innovation and risk taking. Innovation specifically financial
innovation is perhaps the prime reason for SBIs dominant position in the marketplace. Such
financial innovation is risky in terms of substantial cost of research and development. However,
this innovation and risk taking has certainly benefited SBI. This has helped in gaining good
market share and business.
Outcome orientation scores relatively high in the organization culture behavior of SBI. The
outcome, vision, or big picture is regularly stressed in monthly department meetings. The big
picture within any organization is delivering a quality product at cost, on time, and
responsiveness to the customers needs. Often times, it is the details that dominate most of the
meetings and work time, yet the outcome does rate high. For example, a task force is already in
place developing the second and third generation of the product. This task force has before it
clearly defined goals that must be reached. These goals are the desired outcome and must be
fulfilled in order to have a successful outcome.
Overall, the organizational culture in SBI contributes to a healthy and pleasant job experience.
There definitely exists a shared meaning as each organization has a wide expanse of control,
talented cross-functional teams, and empowered employees. In closing, the IBM organizational
culture provides a supportive framework, is technologically innovative, and encourages
employee empowerment.
In 2010, SBI won the Asian Banker Achievement Award for the strongest bank in the Asia-
Pacific region





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PERFOMANCE MANAGEMENT SYSTEM
Motivating people in a public sector organization is a huge challenge. The government dictated
salaries are not at par with the private sector. To overcome report writing, the individual reports
on employees were multiple choice formats. The number of committees to look into performance
management systems was formed. The structure at SBI was such that it empowered people
across organization, right from window assistants at the branches to credit committees at the
corporate office. The bank gave subordinate staff meaningful responsibility, for instance, at
the branches they were made responsible for guiding and assisting customers in simple tasks
such as dropping off checks, and forms and even in simple marketing efforts. There were
numerous employee recognition measures ranging from introducing a practice of sending simple
appreciation letters to conferring award for Best Employee of the Month to sending some
best performers on overseas trips with their families. There was online Employee Suggestion
Scheme. SBI actually implemented many of those suggestions. There was Chairmans Club
Scheme, which selected 50 top performers from different fields. The winners and their spouses
were invited for dinner at Chairmans residence. As a part of rights issue, SBI also introduced an
Employee Share Purchase Scheme to which everybody from the messenger to the Chairman
could subscribe.








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MANAGEMENT CONTROL PROCESS
A management control systems (MCS) is a system which gathers and uses information to
evaluate the performance of different organizational resources like human, physical, financial
and also the organization as a whole considering the organizational strategies. Finally, MCS
influences the behavior of organizational resources to implement organizational strategies. MCS
might be formal or informal. The term management control was given of its current
connotations by Robert N. Anthony. He defined Management Control is the process by which
managers influence other members of the organization to implement the organizations
strategies. Management control systems are tools to aid management for steering an organization
toward its strategic objectives and competitive advantage. Management controls are only one of
the tools which managers use in implementing desired strategies. However strategies get
implemented through management controls, organizational structure, human resources
management and culture.
Following are the control systems put in place in SBI:
RISK MANAGEMENT STRUCTURE
An independent Risk Governance Structure is in place for Integrated Risk Management covering
Credit, Market, Operational and Group Risks. This framework visualizes empowerment of
Business Units at the operating level, with technology being the key driver, enabling
identification and management of risk at the place of origination.
The Risk Governance Structure in place in the Bank is as under:
The Risk Management Committee of the Board (RMCB) has the overall responsibility to
monitor and manage Enterprise Wide Risk.
The Credit Risk Management Committee (CRMC), Market Risk Management Committee
(MRMC), Operational Risk Management Committee (ORMC), Group Risk Management
Committee (GRMC) and Asset Liability Management Committee (ALCO) support
RMCB.
Chairman & Group Executive (Associates & Subsidiaries) are the members of RMCB
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Chairman and Deputy Managing Directors are invited to attend all the meetings of the
Committee.
The Deputy Managing Director & Chief Credit and Risk Officer head CRMC, MRMC,
ORMC and GRMC. ALCO is headed by the Chairman & Chief Financial Officer.
Risk Management is perceived as an enabler for business growth and in strategic business
planning, by aligning business strategy to the underlying risks. This is achieved by
constantly re-assessing the inter-dependencies / interfaces amongst each silo of Risk and
business functions.
Bank is in the process of implementing Enterprise Risk Management (ERM) that will
integrate all the Risk Management functions of the Bank, explore inter-dependencies
amongst various risk types and act as a support system to strategic decision-making
process.
BASEL II IMPLEMENTATION
In accordance with RBI guidelines, the Bank has migrated to the Basel II framework, with the
Standardized Approach for Credit Risk and Basic Indicator approach for Operational Risk with
effect from March 31, 2008, having already implemented the Standardized Duration Method for
Market Risk
Simultaneously, the Bank is updating and fine-tuning its Systems and Procedures, Information
Technology (IT) capabilities, Risk Assessment and Risk Governance structure to meet the
requirements of the Advanced Approaches under Basel II.
Various initiatives such as new Credit Risk Assessment Models, independent validation of
Internal Ratings, loss data collection and computation of market risk Value at Risk and
improvement in Loan Data Quality would facilitate efficient use of Capital as well as smooth
transition to Advanced Approaches.
Risk Awareness exercises are being conducted across the Bank to enhance the degree of
awareness at the Operating levels, in alignment with better risk management practices, Basel II
requirements and over-arching aim of conservation and optimum use of capital.
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Keeping in view the changes that the Banks portfolios may undergo in stressed situations, the
Bank has in place a policy, which provides a framework for conducting the Stress Tests at
periodic intervals and initiating remedial measures wherever warranted. The scope of the tests is
constantly reviewed to include more stringent and new scenarios.
CREDIT RISK MANAGEMENT
Credit Risk Management process encompasses identification, assessment, measurement,
monitoring and control of the Credit Exposures. Well-defined basic risk measures such as CRA
(Credit Risk Assessment) models, Industry Exposure norms, Counter-party Exposure limits,
Substantial Exposure limits, etc., have been put in place.
Credit Risk components such as Probability of Default, Loss Given Default and Exposure at
Default are being computed. Frequency of Stress Tests in respect of Credit Risk has been
increased from Annual to Half-yearly, to identify Credit Risk at an early stage and to initiate
appropriate measures to contain/ mitigate Credit Risk.
MARKET RISK MANAGEMENT
Market Risk Management is governed by the Board approved policies for investment, Private
Equity & Venture Capital, trading in Bonds, Equities, Foreign Exchange and Derivatives.
Exposure, Stop Loss, Modified Duration, Present Value and Value at Risk limits have been
prescribed. These limits, along with other Management Action Triggers, are tracked daily and
necessary action initiated, as required, to keep Market Risk within approved limits.
OPERATIONAL RISK MANAGEMENT
The Bank manages operational risks by having in place and maintaining a comprehensive system
of internal controls and policies. The main objectives of the Banks Operational Risk
Management are to continuously review systems and control mechanisms, create awareness of
operational risk throughout the Bank, assign risk ownership, alignment of risk management
activities with business strategy and ensuring compliance with regulatory requirements.
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The Operational Risk Management policy of the Bank establishes a consistent framework for
systematic and pro-active identification, assessment, measurement, monitoring and mitigation of
operational risk. The Policy applies to all business and functional areas within the Bank, and is
supplemented by operational systems, procedures and guidelines which are periodically updated.
GROUP RISK MANAGEMENT
The State Bank Group is recognized as a major Financial Conglomerate and as a systemically
important financial intermediary, with significant presence in various financial markets.
Accordingly, it is imperative, both from the regulatory point of view as well as from the Groups
own internal control and risk management point of view, to oversee the functioning of individual
entities in the Group and periodically assess the overall level of risk in the Group. This facilitates
optimal utilization of capital resources and adoption of a uniform set of risk practices across the
Group Entities.
The Group Risk Management Policy applies to all Associate Banks, Banking and Non-banking
Subsidiaries and Joint Ventures of the State Bank Group under the jurisdiction of specified
regulators and complying with the relevant Accounting Standards, where the SBI has investment
in equity shares of 30% and more with control over management. With a view to enabling the
Group Entities to assess their material risks and adequacy of the risk management processes and
capital, all Group members, including Non-banking Subsidiaries are encouraged to align their
policies and practices with the Group, follow Basel prescriptions and international best practices.
ASSET LIABILITY MANAGEMENT
The Asset Liability Management Committee (ALCO) of the Bank is entrusted with the
evolvement of appropriate systems and procedures in order to identify and analyze balance sheet
risks and setting of benchmark parameters for efficient management of these risks. ALM
Department, being the support group to ALCO, monitors the Banks market risk such as liquidity
risk, interest rate risk etc., by analyzing various ALM reports / returns. The ALM department
reviews the ALM Policy and complies with the Banks / RBIs policy guidelines on an ongoing
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basis. The Market Related Fund Transfer Pricing Mechanism has been implemented for
evaluating the business performance of the branches of the Bank.
INTERNAL CONTROL
The Bank has in-built internal control systems with well-defined responsibilities at each level.
The Bank carries out mainly two streams of audits - Inspection & Audit and Management
Audit covering different facets of Internal Audit requirement. Apart from these, Credit Audit is
conducted for units with large credit limits and Concurrent Audit is carried out at branches
having large deposits, advances and other risk exposures and selected BPR Outfits.
Expenditure Audit, involving scrutiny of accounts and correctness of expenditure incurred, is
conducted at Corporate Centre Establishments, Local Head Offices, Zonal Offices, On Locale
Regional Offices, Regional Business Offices, Lead Bank Offices, etc. To verify the level of
rectification of irregularities by branches, audit of compliance at select branches is also
undertaken. The Information System Audit (IS Audit) of the centralized IT establishments is
being conducted.
Risk Focused Internal Audit (RFIA)
The inspection system plays an important and critical role of introducing international best
practices in the internal audit function which is regarded as a critical component of Corporate
Governance. Inspection & Management Audit Department undertakes a critical review of the
entire working of audit units. Risk Focused Internal Audit, an adjunct to risk based supervision
as per RBI directives, is in vogue in the Banks audit system. Inspection & Audit of all branches
have been segregated into 3 groups on the basis of business profile and risk exposures. While
audit of Group I branches and credit oriented BPR entities (excepting SARC) is administered by
Central Audit Unit (CAU) at Inspection & Management Audit Department headed by a General
Manager (CAU), audit of branches in Group II & Group III category and other BPR entities are
conducted by ten Zonal Inspection Offices, located at various Centers, each of which is headed
by a General Manager (I&A). The audit of branches and BPR entities is conducted as per the
periodicity approved by Audit Committee of the Board (ACB) which is well within RBI norms.
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Management Audit
With the introduction of Risk Focused Internal Audit, Management Audit has been reoriented to
focus on the effectiveness of risk management in the processes and the procedures followed in
the Bank. Management Audit universe comprises of Corporate Centre Establishments; Circles /
Apex Training Institutions, Associate Banks; Subsidiaries (Domestic / Foreign); Joint Ventures
(Domestic / Foreign), Regional Rural Banks sponsored by the Bank (RRBs). During the period
from 01.04.2010 to 31.03.2011, Management Audit of 45 domestic offices/establishments was
carried out.
Credit Audit
Credit Audit aims at achieving continuous improvement in the quality of Commercial Credit
portfolio of the Bank through critically examining individual large commercial loans with
exposures of 5 crores and above. Credit Audit System (CAS), which has been aligned with Risk
Focused Internal Audit, assesses whether the Banks laid down policies in the area of credit
appraisal, sanction of loans and credit administration are meticulously complied with. CAS also
provides feedback to the business unit by way of warning signals about the quality of advance
portfolio in the unit and suggests remedial measures. It also comments on the risk rating awarded
and whether it is in order. Credit Audit carries out a review of all individual advances above the
cut off limit within 6 months of sanction/enhancement/ renewal as off-site audit and a post
sanction audit once in 12 months as on-site.
Information System Audit:
Since April 2006, all the Branches are being subjected to Information Systems (IS) audit to
assess the IT related risks as part of audit of the branch. A Handbook on Self Audit of
Information Systems was introduced to facilitate branches for evaluating the efficiency level of
IT systems. IS Audit of centralized IT establishments has commenced in January 2007.
CONCURRENT AUDIT SYSTEM:
Concurrent Audit system is essentially a control process integral to the establishment of sound
internal accounting functions, effective controls and overseeing of operations. It works as a tool
for the Controllers of operations for scrutiny of day-to-day operations. Concurrent Audit System
is reviewed on an on-going basis as per the RBI directives so as to cover 30-40% of the Banks
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Deposits and 60-70% of the Banks Advances and other risk exposures. Inspection & Audit
department prescribes the processes, guidelines and formats for the conduct of concurrent audit
at branches and BPR entities. As on 31.03.2011, the system covers 30.15 % of deposits and
75.21 % of advances and other risk exposures of the Bank.
VIGILANCE
The main objective of vigilance activity in the Bank is not to reduce but enhance the level of
managerial efficiency and effectiveness in the organization. Risk taking is integral part of the
banking business. Therefore, every loss does not necessarily become subject matter of vigilance
enquiry. Motivated or reckless decisions that cause damage to the Bank are essentially dealt as
vigilance ones. While vigilance aims at punishing the delinquent employees, it also protects the
legitimate and bonafide business decisions taken by them and any other action devoid of
malafides. The Vigilance Department in the Bank functions on these principles.
Based on the principle Prevention is better than Cure, the Vigilance Department is actively
involved in the preventive measures, which aim at taking steps, which are essential for avoiding
recurrence of similar nature of frauds in the Bank. At the same time, Vigilance department is
taking proactive measures to prevent the incidences of frauds arising in CBS environment.
Considering the size of the Organization, we have set up vigilance departments at each of the 14
Circles, headed by Deputy General Managers. At Corporate Centre, Vigilance set up is headed
by Chief Vigilance Officer of the rank of Chief General Manager. The department reports to the
Chairman directly and conducts its affairs independently. The guidelines of the Central Vigilance
Commission (CVC) are followed in letter and spirit in its functioning.





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MERITS OF THE CONTROL PROCESSESS
ADOPTED BY SBI
The following are the merits of the various management control systems adopted by SBI:
1. Improved Coordination and Control between Various Departments.
With various committees and audit bodies having clear cut roles and responsibilities to
play, it is easy to coordinate and control the functioning of various departments and
branch units.
2. Future-Oriented
Control systems adopted by SBI are like Market Risk Management and Asset Liability
management are entrusted with the job of analyzing the balance sheets and predicting the
future liabilities which helps in taking the corrective measures for the bank and thus
helping in reducing the risk associated with it and allows for adjustments to be made to
get back on course before the control period ends.
3. Clear Management Roles and Responsibilities
The organization structure at SBI is a bureaucratic setup, with clear cut roles and
responsibilities for each post defined, thus resulting in lack of confusion about decision
making and lack of confusion of the expected standard of performance from each
employee.
4. Reward and Recognition to employees
Thought the organization is mostly centralized in decision making and authority wise, but
still there are a number of small initiatives undertaken, such as Best Employee of the
month and letters of appreciation, which keeps employees motivated even in a public
sector job.
5. Risk Management
Being a commercial bank, SBI faces several threats from credit defaults, hence making
risk management a very important tool. Bank has taken several steps to ensure the
credibility of its clients, which is utmost necessity for SBI.

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DEMERITS OF THE CONTROL PROCESSESS
ADOPTED BY SBI
1. Delays in Decision Making Process.
Since the organizational set up of SBI is basically bureaucratic in nature, the decisions
making process can be very time consuming as the issues will be transferred from the
branch manager to the assistant general manager to deputy general manager to the chief
general manager.
2. No Involvement of employees in the Decision Making Process.
In case of SBI we see that the job of framing the policies and strategies for the bank rest
solely in the hands of top management, with no involvement of the employees hence
resulting in lower employee motivation and morale.
3. Lack of Room for Change and Innovation
Rigid framework and guidelines in the control systems of SBI leave no room for change
and innovation. Even the bureaucratic and centralized structure gives little incentive for
new ideas and thoughts.
4. Too many rules and regulations
As we can see, SBI has to comply with all the rules and regulations lay down by Reserve
Bank of India. This is a set of very comprehensive rules which leaves no scope if
creativity.
5. Centralized structure leading to bureaucracy
The power in hands of the branch managers of SBI is very remote. However they are the
people running the branches. Every small decision has to be sanctioned by the Central
Management Committee and hence this might lead to bureaucracy.




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SUGGESTIONS & RECOMMENDATIONS
1. Creation of Responsibility Centers

A responsibility centre is an organization unit that is headed by manager who is
responsible for its activities. Creation of responsibility centers will help in removing the
bureaucratic set up of the organization to some extent. This concept is based on
delegating of responsibility for specific assignments or projects with specific goals at
successive levels of organization. Performance of each member of the responsibility
centre will be measures against the achievement of the specified goal.
2. Divisional autonomy

Each divisional manger should be given liberty to take decisions which are in best
interest of his/her division. There should be no interference in the decision making
process by other divisions.
3. Employee Involvement in Decision Making Process
Following a bottom up approach will make the employees feel that they are a part of the
organization and they are valued as employees, which will motivate the employees to
make decisions and take actions which are in organizations best interest.








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CONCLUSION
The management of any organization must develop a control system tailored to its organization's
goals and resources. Effective control systems provide factual information that's useful, reliable,
valid, and consistent. Controls are applied where failure cannot be tolerated or where costs
cannot exceed a certain amount. The critical points include all the areas of an organization's
operations that directly affect the success of its key operations. In case of Banks which function
on the concept of Risk and Returns, having efficient control systems in place are extremely
important. By efficient we mean systems which deliver the desired results and are easy to
understand and implement and also ensures viable patterns of employee behavior in order to
achieve organizational objectives.
SBI has efficient control mechanisms in place that is effective and function harmoniously within
the banking processes, does not create any bottleneck operations and provide factual information
that's useful, reliable, valid, and consistent.











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REFERENCES
www.wikipedia.org
www.statebankofindia.com
www.moneycontrol.com
www.scribd.com
State Bank of India : Transforming a State Owned Giant Harved Business case
study
www.sbiglobal.in
SBI annual report
Management Control Systems (Text Book)