Since banks come in all sizes and differ greatly in the ways they conduct their business, the departments mentioned here, though typical of those you will find in most institutions, may vary greatly with regard to their names, sizes, and functions.
Operations Department
The busiest and largest department is usually operations, for here a group of employees handles the greatest amount of paperwork, much of which is generated by the paying and receiving tellers who work on practically all the bank's transactions. As previously noted, every check received or dollar paid out starts a long flow of paperwork. Take the paycheck that Martha Green deposits as an example.
The teller receives Ms. Green's paycheck together with a deposit slip bearing her name and account number. The teller records the amount of the deposit on a special machine that issues a pink receipt to be given to Ms. Green. This is not the end of the transaction, though, for Ms. Green needs some cash and so hands the teller her own personal check drawn to cash for twenty-five dollars. When Ms. Green picks up the crisp new bills and makes room for the next person in line, she has left behind a check drawn on a bank in a distant city, a deposit slip directing that her paycheck is to be deposited to her account, and her own check that has been cashed. At the end of the day the teller must balance the cash with all the deposits and withdrawals. Once this is accomplished, the teller sees that the out-of-town checks go to the transit department and that all the deposit slips and checks received go to the bookkeeping department.
Here a computer operator electronically sends the information to the computer, which records the transactions on the bank's and Ms. Green's records. At the same time, the transit department employees are sorting out-of-town checks into various categories, making certain that the total of all the checks is accurately computed and correctly entered on the bank's records. Then the checks are bundled and placed in special mailing containers to go to the nearest Federal Reserve Bank.
Marketing Department
Recently many banks have organized marketing departments to "market" or sell their services to the public. Any business must constantly attract new customers and expand if it hopes to keep its doors open and prosper. Banks are no exception, and as competition increases, each institution must double its efforts to find new accounts and persuade the public that it is offering the finest and most complete service. In a small bank one of the top officers is usually responsible for carrying out the marketing program, but in large banking companies each department may be responsible for its own marketing, or there may be a marketing department to carry out the bank's sales, advertising, and public relations programs.
Maintenance
In a small bank, the custodian who empties the wastepaper baskets and mops the floors also tends the furnace and acts as a handyman when something needs repairs. Larger banks have their own maintenance departments staffed with specialists who not only handle the custodial services, but also maintain the machines, air conditioning, heating, and other mechanical apparatuses. These same banks probably have a purchasing department too, because it makes sense to centralize the task of buying hundreds of items ranging from paper clips or ballpoint pens to furniture, electric adding machines, or even pickup trucks to transport files to the warehouse.
Personnel
Since banking consists of people who provide services for other people, the personnel department is a vital part of the enterprise. It is not only responsible for hiring employees but also for supervising all of the personnel services that the bank offers, some of which may be extensive—especially in a large bank with many branches. Salary administration is an area of increasing importance that ensures that fair guidelines for setting salaries and governing increases are established. Employee benefit programs are widespread because many banks now offer health and life insurance, pensions, profit-sharing plans, as well as disability and unemployment compensation. Determining the bank's policy on vacations, sick pay, and time off for special purposes is also a concern of this department.
One major responsibility of the personnel department is maintaining records on all employees—no small responsibility, especially in a bank that operates in an urban area and has a large number of workers and a steady turnover. With the advent of federal "Affirmative Action" programs that encourage businesses to hire and promote more women and members of minority groups, employee management can be a challenging assignment. The Affirmative Action officer must work closely with all department heads to see what opportunities there may be for placing women and minority applicants, as well as to make certain that these people receive equal consideration with other employees for promotion.
Administration
So far no mention has been made of the men and women who administer the overall affairs of the bank. They are the officers, who range from chairman of the board down through president, vice president, cashier, auditor, security manager, and assistant officer. Promotion to the position of officer is the reward for the men and women who learn the business, apply themselves, and become useful and reliable employees. Since we are concerned primarily with the beginning or intermediate positions that may eventually lead to that of officer, we shall mention only that these experienced and capable individuals are the people who direct the overall operations of the bank. At the same time, they are responsible for seeing to it that the bank earns a profit, which brings us now to the all-important subject of lending.
