Abstract
Technology alters the structure of the systems in the finance and service sectors. Nevertheless, technology has been chancing operating systems and as a source to the emergence of new business models. The boundaries of departments in enterprises are weakened and disappeared, these changes give rise to the emergence of showing less commitment in the behavior of employees. In modern business the survival of the organizations does not seem possible, which see success in reactive behavior of the strategy-structure-interaction classical triple. Critical success factor is based foresight and proactivity in all areas of operations including organizing. In this chapter, enterprise organizations' financial departments and resulting changes of structures of the financial sector entities, the effects of this structural changes in the operation system with the new business models is discussed, the tips on how financial system's agencies and departments can fulfill the requirements of proactive nature revealed is studied.
Top1. Introduction
In the war for future existence all institutions, including financial institutions, feel the need of converting the structures such as growth, downsizing, merger, change of administration, organizational inefficiencies as internal factors besides technological, social, legal and other environmental changes such as external reasons,.
Change, is seen as an important opportunity and threat, need to cope in today's organizations. Nowadays everything in the world is shifting. The environment is undergoing change with everything in. Change in the environment of the organization, it is necessary to also change strategy to be followed. Strategies vary, but the main goal of the organization is not changed: To make a viable and successful strategy. For Practicable and successful strategy, strategy consistent with an organizational structure is required. Succinctly environmental changes affect strategies, thus the structure of the organization
The traditional organizational structure was based on, command-and-control paradigm and the understanding that perceives the organization as a mechanical process. The traditional organizational structure has lost its effectiveness today. Nowadays, all organizations are in the trend and need of developing effective organizational structures that make it possible to achieve the goals. The most important element of business life, the financial sector, cannot be abstracted from these conditions. Changes in the organizational structure of the financial sector affect the entire business life and spearhead the entire industry.
The financial sector is generally considered the most globalized of all economic sectors. Money is easily digitalized and is therefore highly mobile via information and communication technology. For this reason, it is generally believed that the spread of telecommunications together with the ongoing deregulation in Europe will have an enormous impact on the financial sector and financial centers (Alessandrini et al., 2009, p.278).
The financial services sector can be the most effective economic sector in advanced economies. . In the advanced economies-like the United States- the financial sector employs more people than manufacturing of apparel, automobiles, computers, pharmaceuticals and steel combined; 5,4 million people are employed by financial services firms in the U.S. financial services account for almost 5% of Gross Domestic Product in the U.S., about 5.5% in Germany, 3.5% in Italy, and similar statistics are found in other European Union economies with highly developed intermediaries. (Harker & Zenios, 1998)
Table 1.
Changes in the U.S. banking industry 1979-1994
| Item | 1979 | 1994 |
| Total number of banking organizations | 12.463 | 7.926 |
| Number of small banks | 10.014 | 5.636 |
| Industry gross total assets (trillions of 1994 USD) | 3.26 | 4.02 |
| Industry assets in small banks | 13.9% | 7.0% |
| Total number of employees | 1.396.970 | 1.489.171 |
| A number of automated teller machines | 13.800 | 109.080 |
| Cost (1994 USD) of processing a paper check | 0.0199 | 0.0253 |
| Cost (1994 USD) of an electronic deposit | 0.0910 | 0.0138 |
(Berger et al., 1995, pp. 55-218).
Key Terms in this Chapter
Proactive Organizational Structure: Arranging structure at all stages and sectors to execute proactive strategies in a way that encompass anticipatory and influential actions on the surroundings to facilitate improving performance.
Organization: An entity, structured and managed for pursuing the collective goals to meet economic needs that can be affected by environment.
Proactiveness: An action that expects change and as involving the careful creation of modifications. Company’s early response to signals of coming change is anticipation as creation of change itself is called influence.
Organizational Structure: A hierarchical arrangement of relationships between the different activities and the members, and subdividing and assigning roles, responsibilities, and authority to carry out different tasks.
Strategy: Making trade-offs in competing operational effectiveness for the conception of a unique and valuable position, requiring a different circle of actions.