Rabobank Nederland.

Essay by abhishek66University, Bachelor'sA+, October 2003

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Identification of company objectives

*Profit maximizations.

*The objectives and strategy of the North American branch is to compete by building on its experience and contacts in agribusiness.

Identification of key issues

*The role of account manager at Rabobank Nederland is to book good deals, period.

*Characterization of control system in Rabobank.

1.Action control.

2.No results control.

3.People control

*Advantages of its control system.

1.Less direct out-of-pockets

2.Other costs of control are saved such as

*Behavioral displacements


*Operating delays

*Negative attitudes from results control

*Disadvantages of control system.

1.Negative attitudes generated from actions controls

2.Lack of motivation due to no results control.

*Rejection of the credit application made by Roger in favor of North Texas cotton cooperative.

Analysis of key issues

Characterization of control system in Rabobank Nederland:

1.Action control - The managers of Rabobank Nederland follow a very loose action control routine.

They do not have to follow an elaborate set of procedures, in contrast to many large banks. This is because most of their employees are already experienced and need little guidance. However for each account manager written goals are set annually for loans and in some cases, deposits and other service income, and for sanctioning of larger loan amounts the employees have to present their case to head office.

2.Results control - Managers in Rabobank generally are not results controlled as they are not judged on their individual performances, and do not receive and performance related bonuses.

3.People control - People controls are part of virtually every management control system. As the New York branch of Rabobank Nederland is a very flat and lean organization, the employees are empowered and thus there is a greater need for people control.

If the above mentioned control system...