Bank of China vs Bank of America

In February 1912, approved by the Sun Yat-sen, the Bank of China was formally established. From 1912 to 1949, the Bank of China has exercised the central bank, international exchange bank and specialized foreign trade bank functions, adhere to the revitalization of the national financial sector to serve the public, responsibility, sound operation, forge ahead, the business has made considerable progress. After the founding of New China, Bank of China became the State foreign exchange and foreign trade bank, has made a significant contribution to the country’s foreign trade and economic development and domestic economic construction.

In 1994, the Chinese bank to a state-owned commercial banks. In 2003, the Bank of China began joint-stock reform. In August 2004, the Bank of China Limited was formally established. June 2006, in July, has success in the Hong Kong Stock Exchange and the Shanghai Stock Exchange listed first issued in the Mainland and Hong Kong listed Chinese commercial banks. Bank of China, China International Bank, and the highest degree of diversification in the Chinese Mainland, Hong Kong, Macao, Taiwan and 32 countries to provide customers with a full range of financial services.

Mainly engaged in commercial banking, including corporate banking, personal banking and financial markets business, investment banking and carried out by the wholly owned subsidiary of Bank of China International Holdings, a wholly-owned subsidiary of Bank of China Group Insurance Company Limited and its subsidiaries and associated companies carry on insurance business, by holding silver fund management Co. , Ltd.

engaged in the fund management business, through a wholly owned subsidiary of Bank of China Group Investment Limited engaged in direct investment and investment management business of BOC Aviation Private Limited to operate the aircraft leasing business. In terms of core capital, the Bank of China in 2009 in the British “Banker” magazine “the world’s 1000 largest bank ranked 10th. In 2011, Bank of China was selected global systemically important banks, this is the only selected financial institutions in China and emerging market countries.

In one hundred years, the development of the course, the Bank of China has always been adhering to the spirit of excellence will be patriotic as the soul of the Office line of the integrity first as an established line of this, the reform and innovation as to force the road will be people-oriented as Hing line of the base establish a superior brand image, has been widely recognized and praised the industry and the customers.

The face of the new historical opportunities, the Bank of China will actively promote the innovation and development, restructuring and development, cross-border development, towards achieving its aim of building a world-class large transnational business strategy of the Bank Group. -Bank of America Bank of America is an American multinational banking and financial services company, headquartered in Charlotte, North Carolina. This is the second-largest bank holding company’s assets in the United States.

Bank of America serves customers in more than 150 countries and regions, 5,600 branches and 16,200 ATMs, and 99% of the U. S. Fortune 500 companies and 83 % “Fortune global 500. The company is a part of a member of the Federal Deposit Insurance Corporation (FDIC) and the S & P 500 index and the Dow Jones Industrial Average index. As of 2010, the total income of the Bank of America is the fifth largest company in the United States, as well as the non-oil company in the United States the third largest (after Wal-Mart and GE (General Electric)).

In 2010, Forbes listed Bank of America as the world’s third-largest company. 2008 bank to buy Merrill Lynch, Bank of America is the world’s largest wealth management companies and investment banking market participants. Bank of America ‘s history can be traced back to 1904, when Amadeo Giannini founded the Bank of Italy in San Francisco in the other banks refuse service to meet immigration efforts. Giannini put forward, as his mother and stepfather, Lorenzo Scatena his father was shot and killed while trying to collect a debt of $ 10. 00.

In 1906 San Francisco earthquake, Giannini, is able to remove all deposits of the bank building from fire. The San Francisco bank in the smoldering ruins, unable to open the vault, Giannini, is able to use the rescued funds to start lending within a few days of the disaster. From the temporary table in two barrels of some wood, he lend money to anyone who would like to rebuild. Later in life, he was very proud of the fact that all of these loans to repay. Aspects Giannini in 1922 to set up the Bank of America and Italy, in Italy, purchased by Banca bank dell’Italia MERIDIONALE, which was established in 1918.

March 7, 1927, Giannini consolidated his Bank of Italy (101 branches), the newly established free, Bank of America (175 branches). As a result, the Italian National Trust and Savings Bank Association of dollars, $ 3 billion of capital and resources to $ 115 billion dollars. In 1928, AP Giannini’s, Los Angeles merged with Bank of America, and consolidated it with his other bank hold what would become the world’s largest banking institutions in the country. November 3, 1930 changed its name to Bank of Italy, Bank of America (Bank of America). Giannini’s Orra E. Monnette as the company headed by co-chairs.

Bank of America in 1986 and 1987 experienced a huge loss, a series of non-performing loans in the position of the third world, especially in Latin America. The company dismissed its CEO, the Shan Mu Ama Coster. Armagh Coster blame on his predecessor, AW (Tom) Clausen, Clausen was appointed to replace Armacost. Huge losses caused by Bank of America’s stock decline, making it vulnerable to a hostile acquisition. First Interstate Bancorp of Los Angeles (from the bank once owned by Bank of America), launched such a bid in the fall of 1986, Bank of America rebuffed, mainly from the sale of the business.

Chrysler and the brokerage firm Charles Schwab (Charles Schwab) to Mr. Xiang sell its FinanceAmerica subsidiaries Schwab. Also sold in the United States, the Bank of Italy, Deutsche Bank (Deutsche Bank). When the stock market crashed in 1987, Bank of America’s stock price has fallen to $ 8, but by 1992, it rebounded to become among the biggest gainers of that half of the decade. Organisation Structure and design -Bank of China -Bank of America For the Bank of China. The top is Board of Directors and Second top is the Chief Executive.

Chief Executive manages about 7 workers who is three Group Executive, Chief Financial Officer, Chief Operating Officer, Chief Risk Officer and Assistant Chief Executive. Each manager manages some services. For example, the first Group Executive is managing about personal management, such as personal banking or private banking, also a credit card services. The second Group Executive is managing some smaller business, such as Corporate Banking, or China Business. For Third Group Executive is managing about the Global business, such as Global Transaction and Global markets.

Three Group Executive manage different size of business, personal, China and Global. Chief Financial Officer, from the name we can know that he is managing the money of the bank. It have two departments, Financial Management and General Accounting. Chief Operating Officer, he is managing the operation of bank. The use of information technology. How to improve the services. Solve operating problem or also about the law. Chief Risk Officer, is about how to safely operate their company, mainly have two department. Risk Management Dept and Operational Risk and Compliance Dept.

Assistant Chief Executive, is about the development of the bank. For the Bank of America. The top is CEO , and under him, there are 11 department, CFO, Risk Management, two Co-COO, General Audit, Legal & Compliance, Strategy & Marketing, Technology & Operations, Global Treasury Solutions, Legacy Asset Servicing, Human Resources. Each department have one manager. Besides CFO and Co-COO, they have a sub-department for helping their management. CFO handling the Accounting and business Strategy. They also set up the Risk Management to make safely business. After that Two Co-COO have manage different departments.

The first Co-COO roughly manage the investment part and other Co-COO just manage the consumer part. General Audit, it should be about the financial part of America Bank. Legal & Compliance, it should be about the law of their operation. To check if they do something it will break the law. Strategy & Marketing, it should be used to design the strategy to improve their company and how to increase their competitive on the large market. Technology & Operations, it should be design how to use the technology to get a better operation. Legacy Asset, it should be providing a service for people to solve the problem about the legacy asset.

Global Treasury Solution, it should be look out the Global market and change their Strategy. Human Resources, it is obvious that used to manage the workers. The similarity of these two banks is that they also have many departments inside the bank. Also the function of those department don’t have a big different. For example, Risk management, Global economic or a law department. And those also under CEO. And the difference is that Bank of China totally haves 7 officer to manage different departments. Each officer manage about three to four department.

On the other hand, Bank of America roughly one person manages one department. It is the main different between two Banks. Approaches to Management & Organisational Behaviour 1. Motivation For Bank of China, I find that there are some extrinsic motivations. The workers on Bank of China divide into 13 level and 39 sub-level (only for salary), each level of each sub-level has a target annual salary, for example: 9 level 1 sub-level is 66K, annual salary but also multiplied by the degree of match, new entrants to the employees, is about 75% match, the match slowly growth base on your working time.

The most senior body of older employees (line age) can match up to 110%. After you get the matching salary and its 70% divided by 12-month pre-tax wage and 1 gold, after the deductible and 5 insurance is to get a monthly salary of the hand. 30% of the match after the wage performance payment, as the end of the end of each employee to submit a personal annual summary, department heads will give each employee playing a level, for example, have B you Take all performance, get 110% of A performance of C to take 80% of the performance of D to take 60% ??

of the performance, was A + to take 130% of the performance. But in general can of B, unless you have significant responsibilities negligence. Also, addition to fixed salary, the full-time staff are part of a lot of money benefits Cash form: holiday expenses, transportation allowance, lunch allowance, communications grants, summer cooling, etc. , there are non-cash in the form of, for example, enough material coupons. This example is about “salary” to increase the workers incentive. Worker work longer time and having better performance then he can take a better salary.

For Bank of America, I also find that there is some extrinsic motivation. Bank have a plan is call “Production workers incentive plan”. There are five purposes. First one is about piecework system to determine workers’ compensation, according to the piece-rate product, based on the percentage of workers performance is higher than the standard level paid to workers in the same proportion bonuses standard working hours system, as well as to the final of the team or the team’s overall level of output, team or group productivity or work standards based incentive plan.

Second is about in the senior management incentive plan. Divide into short-term incentive and long-term incentive. The short-term incentives are mainly used to improve short-term performance incentives in senior management bonus plan for the year, it depends on the individual performance of the year operating and management personnel. The long-term incentive for the company’s long-term development and prosperity, motivate and reward executives and managers to pay more attention to the long-term perspective in the decision-making, and grow with the business, including stock option plans and performance plans.

Third, is about the sales staff incentive plan. The sales staff is the most common mode of compensation of the mixed commission and salary payment, the composite plan. Strong incentive in this way can avoid the drawbacks of using alone. In addition, it is also feasible by some special incentives to boost sales. Fourth, other professionals incentive plan. Professionals expertise for enterprises to use the master service employees, including lawyers, economists and other professionals. Professionals incentive plan is usually the main bonus. Fifth, is about the organization’s overall incentive plan.

Many banks to develop all employees are eligible to participate in incentive schemes, including profit-sharing plan, employee stock ownership plan, Scanlon plan and variable pay plan, but not every employee four forms of remuneration, a large part of the proportion of employees can only get the basic wage and enjoyment of the general welfare. It is the method Bank of America use to motivate the workers. 2. Leadership For Bank of China, I think that it is an authoritarian leadership. As they believe that the Directors and manager of the bank having a decisive powers.

Directors are the core of the structure of the Company, with a clear division of labor between the management. The board is responsible for providing management level guidance and effective monitoring. In particular, the Board authorized management to execute the strategic directions has been identified to be responsible for the daily operations of the Group to the directors’ report. To this end, the Board has established a clear written guidelines particularly clear management shall report a variety of situations, as well as the management should be obtained before they can be approved by the Board on behalf of the decisions made ??

by the Group or the commitments made??. The Board will authorize and guidelines are regularly reviewed. The subcommittee has clearly defined responsibilities charter, and advice to the Board on relevant matters within its competence, decision or delegated authority, in appropriate cases. Following is the chart about the leadership. We Can find that the power centralize on the board of Director. For the Bank of America, I think that it is an Action-centred leadership. They are very concern about the Training. They focus on to maintain a steady influx of special candidates into their leadership team.

Members of the senior management of management jobs, provide candid feedback and guidance on a daily basis, and arrange opportunities, such as cross-organizational team, focusing on the key business issues. Also they have five principles guide their talent planning and leadership development: * Attract, develop, retain and reward the best talent * Hired from the industry’s top talent on a regular basis * To ensure leadership to all candid feedback * To monitor leading performance, to ensure the best performance in the role of critical business * Implement processes and programs to encourage diversity in leadership.

3. Human Resource Managemnt For Bank of China, they frequently launched human resources major initiatives, insist on to the people-oriented management philosophy and human resource strategic management of the right ideas, institutional reform and mechanism reform simultaneously, actively promote the position management, remuneration management, performance management and other human resources management system reform, vigorously strengthen personnel construction, comprehensively promote the traditional personnel management of the transition to modern human resources management.

For example, they will not engage in large-scale layoffs. Insist on to this commitment, the Bank of China, fully embodies social responsibility. And also from the bank have been kept “talent”, that is to believe that “human resources are the primary resources, they believe that” everyone can become a “talent’. ” For Bank of America, they focus on training the workers. They aimed at training personnel to improve employees’ knowledge, skills and capabilities, and to make it better for the realization of the objectives of the bank’s

efforts, that the process of the development of the personal maximum potential can also help organizations successfully. On the other hand, especially closely combine the personal and professional development of staff training and staff. Focus on creating family-oriented atmosphere. Provide a level playing field and fair competition in the challenging environment. Help employees design personal and professional development goals, and to encourage their employees to design personal and professional development goals by organizing career planning seminars and developing employee career planning manual. 4.

Culture & Diversity For bank of china, some workers have shared their experience on the internet. And I think Bank of China should be a Role culture company. He shared one thing for us that when he was the first day for working. His manager ask him to buy one thing. But he didn’t know what thing is it. He ask the manager and get the answer but still buy a wrong thing. Finally he got a point is that when a manager give a mission for him. He must ask for very detail. That means the information of that mission. Also he think that inside Bank of China, every workers also be a “more works, no talking’ worker.

In a real case, a young people working in Bank of China (he is a Dispatch system employee for 6 years. ). And his treatment is very different towards a normal full-time worker. Only take the welfare to an example. Personal cash benefits: A full-time cooling fees 800 ? 4 = 3200, but the young workers have nothing. A full-time holiday expenses 1200 ? 4 = 4800,but the young workers also have nothing. A full-time traveling expenses 750 ? 12 = 9000,young workers also have nothing. We can find that actually the young worker and a Official worker should be same work load ,same welfare.

But because they are come from different background. So that having a different treatment. For Bank of America, their working culture among the workers are : * Concentration and organization * Comfortable working in a fast-paced environment * Showed consistent positive attitude * Exhibit a strong work ethic and take pride in the accomplishment And a news was happened on Bank of America. National financial services company is a subsidiary of the Bank of America loan services, it has received a record-breaking anti-discrimination fines of $ 335 million. U. S.

Department of Justice claimed that there are about 200,000 African-American and Hispanic borrowers were obtained from higher interest rates “only because of their race and nationality. ” That mean Bank of America has a discrimination on the different race and nationality. 5. Information Technology Bank of China Group Investment Limited is beginning to use FlexSystem products, including accounts mergers and general accounting functions. First, the Bank of China Group Investment Limited use of EI to analyze large amounts of data tables and statements. By day past finishing required, greatly shortened to one hour.

FlexSystem the EI effectively simplify the past complicated procedures, such as the Account Code Mapping, merger accounting annual accounts in Hong Kong and domestic companies. Second is Properties Management System, management recognizes that the company’s operations in property management or maintenance program. They have use the system to manage their investment of the Bank. Bank of America, they have use a system call Masternet system. This system use on risk management. Since 1982 Bank of America have a big loss on the project. Bank started to initiate the development of the MasterNet Trust accounting system.

Although the success of information systems lucrative trade media and academic range System failures caused significantly less concerned. Until recently, academics began to check the reasons for the failure of information systems development. Clemons has developed a total of five risk framework for risk assessment of a project, trying to understand the possible sources of failure. This paper studies the MasterNet project, Clemons “Twelfth Five framework as a basis for risk analysis. Such an analysis will show that Bank of America (Bank of America) also rarely manage project risk across five dimensions.

Therefore the project is a possible candidate fails. Communication For Bank of China, I find that there are some website or forum is use for Bank of China ‘s workers to communicate. And Bank of America also. Reference 1. Wiki (2012) Bank of China [Online] available from http://zh. wikipedia. org/wiki/%E4%B8%AD%E5%9B%BD%E9%93%B6%E8%A1%8C#. E5. 85. B6. E4. BB. 96 [20 November 2012] 2. MBAlib (2012) Bank of America [Online] available from http://wiki. mbalib. com/zh-tw/%E7%BE%8E%E5%9B%BD%E9%93%B6%E8%A1%8C [2012] 3. Feifei2009 (2009) ‘Different between Bank Of China and Bank of America’ [Online] available from http://bbs.

bankrate. com. cn/thread-27312-1-1. html [25 Nov 2012] 4. Louis Carter (2012) ‘How Bank of America Develops Leadership Talent Around the World’ [Online] available from http://talentmgt. com/articles/view/how-bank-of-america-develops-leadership-talent-around-the-world/1 [20 Apr 2012] 5. Baidu (2010) ‘Bank of china working report’ [Online] available from http://wenku. baidu. com/view/493d6cd63186bceb19e8bbfc. html [17 Nov 20112] 6. Bank of China (2012) About us [Online] from http://www. bochk. com/web/common/multi_section. xml? section=about&level_2=bank_profile&fldr_id=291 [2012]