World Bank organization
The World Bank was founded in 1944 as a single institution but in current times, it has expanded its wings and it’s associated with five development institutions. The institutions include: the International Bank for Reconstruction and Development, International Finance Corporation, Multilateral Guarantee Agency, International Center for the Settlement and Disputes. Initially, the World Bank had financial analysts and engineers who lived in Washington, D.C but today the organization accommodates a divergent workforce who includes: economists, public policy experts, the social scientist and sector experts. The main function of World Bank is to reduce the poverty levels in the universe and also plays a part in reconstruction. The other functions include approving loans and guarantee, implementation of new policies, administration budget, and the borrowing of financial advice.
The clients and who it does business with
The World Bank clients include countries with high poverty levels, the states affected with conflict and are fragile, the Arab world, and countries in the category of middle income. The World Bank institutions are under the management of 188 member countries. The World Bank is a powerful organization when it comes to financing and provision of technical assistance to developing countries in the world. World Bank has around 9,000 employees who are distributed in 100 offices around the world.
The systems at work
The matrix system at work is a closed system as it was introduced as an internal reform of the organization. It is charged with the role of checking the accountability of the regions and networks around the world and also among the countries and their sector units in regions. The matrix system aimed at enhancing responsiveness of the client based on the delivery models and the technical support of the operations of the bank.
Hierarchy of the organization
The World Bank organization governance structure is made up of: 188 member countries, the board of governors, board of directors, senior management, development committee and the articles of agreement. It has a president who presides over meeting of the board of directors and will be responsible for the entire management of the organization. The board of directors is made up of executive directors who meet two times in a week to review the daily operations of the bank. The boards of governors are the decision makers and they give duties to the executive directors. The daily operations of the world bank is under the president’s leadership, the management and senior employees, and the vice president who presides over the different regions, sectors and the entire network of the organization.
The World Bank rules and norms
The rules and norms are adopted after they are authorized by the majority members. The rules are contained in an article and they are used to solve conflicts when they arise. The rules and norms are categorized under the following: the meetings of the board of directors, annual reports, the voting of governors, terms of service, member’s representation, budget and audits, application of membership, suspension of membership and the amendment of the by-laws. The provisions of all the rules are subject to mandatory respect by all members of the World Bank group.
The communication network in the bank involves both formal and informal networks. In the formal network the information flows vertically from the minor subordinate staffs through the directors to the top at the presidential level of the organization. The communication therefore, has to follow the authority chain and is restricted to task-related communications. On the other hand, the informal networks allow the information in the bank to move freely in any direction. In some instances the communication in the organization does not have to follow authority level. Therefore, the management does not have control on the informal network of communication.
Organizational orientation of the World Bank
There has been significant achievement in the World Bank Organization that has made the goal of Millennium Development Goals target for the year 2015 to be relevant. The goal have been achieved through more emphasis on education and health issues, more incentive growth in Africa and less developed countries, and integration of environment and development agendas. World Bank together with other multilateral institutions has put more effort and support towards achieving these goals.
Dogmatism in the World Bank involves the formulation of the pension reform policies. Although the bank’s pension policies have been formulated to server the transition and developing countries, there are allegations that the pension system also serves the developed countries especially European Union countries.
The World Bank has recently taken social leadership approach as a tool to enhance change and development. The bank plays a significant role in the balancing and transformation of the society. This is enhanced by giving support and financial assistance in leadership of the partner nations’ efforts to effectively eradicate poverty and enhance sustainable growth.
World Bank faces negative leadership reinforcement as it is challenged by the ability to adapt to the culture change. This makes the formal objective and goals of the organization to be slightly ambiguous. This international organization is owned and monitored by the powerful governments in the world while board of directors and staffs are in the frontline in second-guessing the role of management.
Decision making process in the World Bank involves the information flow within the organization structure. The managers in the organization consults the board of director when making decision concerning the banks business and providing approval on policy making, guarantees, strategies and budget. The organization has an established communication networks that enhance easier flow of information within different countries. The countries’ representatives, governors, are consulted by the managers when need to make decision concerning the organization business in their country arises. Consultation might be done through internet infrastructures, such as email, and also phone calls.
Growth and expansion of World Bank
Despite the fact that the World Bank has expanded its operation to different countries in the world, the growth rate of the organization is unpleasant. The growth and expansion of the bank could be viewed by many as a stagnant growth due to its inefficiency in its management. Particularly, the bank needs more effective and transparent decision making structure through enhancing more equitable power distribution among the directors in its board.
Mosley Paul, Harrigan Jane, Toye John (2005). Aid and Power: The World Bank and Policy Based Lending, 2nd Edition. 1. Abington, UK: Routledge
Goldman, Michael (2005). Imperial Nature: The World Bank and Struggles for Social Justice in the Age of Globalization. New Haven, CT: Yale University Press