Royal Bank of Scotland Critical Evaluation


Table of Contents

Introduction 2
Organisational Structure of RBS Group 4
IT 7
HR Management 8
Managing NatWest Integration 13
Models of Change 15
Recent History 17
Conclusion 18
Appendix 1 18
Appendix 2 19
Appendix 3 22
Bibliography 24

Royal Bank of Scotland was founded in Edinburgh on 21 of May, 1727. The first branch opened was in Glasgow in 1783 and during 19th century the bank developed a network of offices throughout Scotland.
After opening a branch office in London in 1874 the bank started to establish its position in England. After a long, turbulent history and many successful acquisitions, RBS officially became the fifth largest bank in the world in 2006.
In 2006

Organisation structure-“The structure of an organisation is the total sum of the ways in which it divides its labour into distinct tasks and then achieves co-ordination among them”.   (Mintzberg, H. 1989)
In March 2000, the Royal Bank of Scotland acquired NatWest, three times the size of RBS at the time, in the biggest takeover in British banking.  
The merger created a huge group, with a diversified range of services for personal, business and corporate customers (British Broadcasting Organisation 2010).

Centralised Versus Decentralised
In Centralised organisational model, decision - making is taken by management at the top of organisation which means they have very strong central control. (Boddy, D. 2007)

• Having a single IT platform for whole business, RBS is able to keep close control over products, margins, risk management etc.
• In NatWest – RBS merger, central control remained at the top in order to set up a standard set of rules which would be implemented throughout the organisation

Organisations with Decentralised model usually have staff with autonomous business units and decision – making authorities. (Boddy, D.2007)

• Customer – facing branches are given more autonomy over decisions...