Day-to-Day Activities

1. Day-to-Day Activities Banking & Finance

2. Bellringer • Before we begin this chapter, see what you already know about banking by taking the chapter pretest. • www.g-wlearning.com

3. Organization and Management • Explain how organizational charts are used in the banking industry. • Describe how banks are structured. • Describe the role bank management plays in meeting bank goals.

4. Biz Kid$ Video • Bank Management

5. Activity • Create a family tree, including at least two generations. • How is a family tree similar to the organizational chart of a bank?

6. Organizational Charts • Diagram representing the structure of a company or organization • Position of each element shows its place within the group • Lines link workers to their supervisors • Allows you to see relationships among individuals and groups

7. ? Question ? Why are organizational charts used?

8. Bank Structure • Groups can be set up using several factors: • Function • Number of people performing the same function • Amount of money the group earns • Geographic location • Most Common Groups • Departments • Branches • Run by • Managers • Executives

9. ? Question ? What are four factors that can be used to determine groups in a bank’s organization?

10. Bellringer • Name 3 departments usually found in a business.

11. Departments • Group created when several employees in a business are working on a specialized task. • # of workers depends on task and size of business • Common departments in business: • New customers (marketing) • Existing customers (customer service) • Employees (human resources)

12. ? Question ? What department(s) do you think you’ll find in banks?

13. Branches • Facility that is not the bank’s main location • Large banks may have in several cities • Opened if doing so will increase profits

14. ? Question ? Why would a bank open a branch office?

15. Bank ManagementManager - Bank employee who is in charge of a segment of a business Authority Power to affect or direct a situation or a worker’s behavior Responsibility Duty to complete an assigned task well

16. ? Question ? What are two qualities managers must possess to manage effectively?

17. Bank ManagementExecutives- managers who have the responsibility and authority to make decisions about the bank and how it conducts its business Set goals for the entire bank Structure of executive management depends on size and ownership Common positions: chief executive officer, chief operating officer, chief financial officer, and president

18. Bank ManagementBoard of Directors – group of individuals elected by a bank’s shareholders to represent them and guide the bank’s policies and business decisions. Ultimate authority, affects how bank operates Executives could be members of board of directors Board of directors selects one member to be chairperson (leads meetings reporting bank’s health and policy decisions are made)

19. ? Question ? Which executive is responsible for carrying out the policies that the board of director establishes?

20. Paired Activity Draw an organization chart for Ridgeway High School. Include at least three levels.

21. Bellringer • How are executives different from managers?

22. Individual Activity Select a local bank. Visit its website. Based on the information on the website, identify the managers and executives. Create an organizational chart to show their ranks.

23. Homework • Have the following completed by Thursday. • 1, 2, 4, 5, 10, 11, 19, 22, 26, 30, 32, 35, 39, 40

24. Special Departments

25. Bellringer (15 minutes) Word Study Foreclosure Repossession Garnishment

26. What are we Learning about Special Departments? • Describe the special functions that banks perform. • Explain the administrative tasks tellers perform. • Explain how a bank collects funds from unpaid loans. • Describe the role of compliance in bank operations. Why do I need to know this?

27. Think about this . . . • What are some of the rules of RHS or this classroom? • How do we make sure these rules are followed? • What are the consequences for breaking the rules? • Who is in charge of making sure the rules are followed?

28. Front Line Operational Support: Go Tellers! • Transactions • New account functions • Safe deposit boxes (protects items from fire, flood, and theft) • Customer interaction • Balance the cash drawer • FedCash Services (ordering currency from Federal Reserve Bank)

29. Which position in a bank is responsible for front-line operational support?

30. Loan Collection Transfer of past-due loans to a bank department or outside agency that attempts to gather full or partial repayment of the loan.

31. Banks don’t want to lose money! • Take the property if the loan was secured • Negotiate with the borrower • Take court action to recover lost funds When economic conditions are poor, the need for collections increases.

32. What are the three options a bank has if a borrower is unable to repay a loan?

33. Secured Loan • Backed by an asset • _______________: legal process of ending an owner’s right to a property (real estate—houses, commercial buildings, and land) • _______________: occurs when the bank takes property from a borrower who is not able to repay a loan (car or vehicle)

34. Negotiation • When a customer can’t repay, everyone loses. • Borrower and bank can negotiate terms of loan. • Reducing interest rate • Extending length of loan • Keep property

35. Court Action • Bank can take borrower to court for unpaid loan • __________: withholding all or part of a borrower’s salary to pay outstanding unsecured debt or bounced checks • Last resort for unpaid loan

36. Compliance • Banks are heavily regulated to protect customers • __________: process of following laws and regulations • Compliance personnel research and analyze changes needed to follow the rules • Compliance staff develop new procedures, monitor actions, and prepare records for bank managers.

37. What role does a compliance department play in a bank?

38. Kimbruh Be Like . . . Why can’t I eat a biscuit in your class?

39. Who’s a Joker! How is collection on an unsecured loan different from collection on a secured loan? Big Joker: From the lender’s perspective? Little Joker: From the borrower’s perspective?

40. Small Group Activity • Because banks deal with confidential and personal information, the ethical character of their employees is very important. • Using what you’ve learned about the responsibilities of bank employees, create a 3-5 slide PowerPoint presentation on the ethical qualifications for different levels of bank employees. • Greens – tellers; yellows – loan officers;reds – bank managers; blues – compliance officers

41. Homework • Complete the following questions in your test packet by • 3, 8, 9, 12, 13, 14, 15, 21, 23, 28, 33, 36, 37

42. Tuesday Bellringer What do you think `is the last resort for collecting an unpaid loan?

43. Thursday Bellringer What are three hazards that safe deposit boxes protect their contents from?

44. Bellringer How do banks use FedCash Services?

45. Friday Mr. Hardin is having a bad hair day!

46. Activity—15 minutes • Find an advertisement for a banking position. Based on the ad, describe the job responsibilities and the necessary skills and education.

47. Kie-Aire Be Like . . . “I Woke Up Like Dis . . . I Woke Up like Dis . . .”

48. Human Resources • Summarize the role of the human resources department. • Explain the process involved in recruiting and hiring a new employee. • Describe benefits that may be offered to employees. • Explain the employee review process. • Discuss the importance of maintaining employee records. Why?

49. Human Resources Department (HR) • Finds and supports employees who contribute to the success of the bank • Tasks separated into 4 categories: • Recruiting and hiring new employees • Managing employee benefits • Conducting or supervising employee reviews • Maintaining employee records

50. Recruiting and HiringNew Employees • One of most important roles • Attracting the best people for positions in the bank • Multistep process: • Recruit applicants • Interview selected applicants. • Verify references. • Hire the best applicant.