The convention of the modern patterns in supervision
of facilities and internal inspection of banks
Supervision
&
Internal Control
Basics
Author : Abbas Shorani
Translator : Mahnaz Akbarpour
Preamble of author
In the name of God , this study has been provided for you after serious efforts of all my colleagues in the General Inspection and Auditing department of Bank Sepah of Iran .
It discusses about procedures and the control and supervision approaches in departmental and functional systems specially banks .
Meanwhile, this study was read by academics previously and some of its materials were revised, however it is provided with the common materials.
It is possible that there are some mistakes or inconsistent with principles and the current regulations , kindly I request academics , professors and friends to send their comments and suggestions to my electronic address :
Shorani@banksepah.ir
and assist me in this regard .
Thanks,
July, 2007
Abbas Shorani
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The convention of the modern patterns in supervision of facilities and internal inspection of banks
Title of article :
Supervision And Internal Control Basics
Abbas Shorani
Bachelor's degree of accountant
Head of General Inspection and Auditing department & Director of money Laundering prevention division
Summary
According to development of the civil organizations and increasing the effectiveness of functions the cultural , social , economical and political organizations based on continuing of existence of society the subject of " supervision " on different activities of the social organizations is very important to philosophers . If we consider the effect of the religious and historical training in nowadays , we will believe that the supervision and internal control should be accepted by all people .
Professors in management science have defined the supervision in concept of providing the information in order to effectiveness of management and consider it as one of the main duty of manager , also they have divided it into types ; the apparent supervision and the hidden supervision , and achieving it depends on the providing the following four steps :
- To determine standards and criteria
- To collect the information , statistics and measure the function
- To compare the function with criteria and determine deviations
- To amend actions
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On this base, directors in order to ensure the used supervisory tools , can apply the following approaches :
- Inspections
- Auditing
- Examination
- Observation
- Correspondence
- Inquiry
- Systematic
Thereupon , purpose of the supervision is to ensure that regulations are conducted appropriately and it causes to following results :
- Increasing the efficiency and effectiveness of function units
- Setting the continuing process , obviously and timely from all financial and managing information
- Compliance procedures and functions with rules and regulations
- Decreasing mistakes and infractions
Thereupon , in order to strengthen the supervision and decreasing of infractions in the bank , we have provided the following suggestions :
1- Establish immediately the supreme committee of supervision with responsibility of one of assistants of minister of economy and finance affairs and delegates of supreme audit court , auditing organization and general inspection of organization and superior position of the supervisory organization .
2-Promoting the formal position of the banking supervisory organization to the supreme level of organization after board of directors and direct control of senior management .
3- Using tools and the updating facilities to conduct policies of control
4 – Setting the relationship in staffs with responsibilities and the size of organization
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5 – Setting the supervision and integrated internal control ( comply with principles of Basel Committee )
6 – Providing tools of internal control during service design and processes of the modern banking by use of facilities of professional supervisory units
7 – To decentralize and decrease the distance of operational place of controller with control unit
8 – Setting the practical training courses for levels of inspectors and auditors of organization
9 – Strengthening the moral and Islamic and National spirit of inspectors
10 – To manage independently on internal control and supervision units
11 – Setting the bank of internal information and inter banking
12 – The health joint plan ( getting swearing plan from staffs and customers based on legal principals in the relationship with organization )
13 – To strengthen the base of the organizational banks in order to prevent the anti-money laundering
14 - To strengthen working motivation in staffs
15 - To privatize some parts of affairs to private part
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Contents
-Introduction
- Preamble
- Terminology of Supervision
- Significance of supervision
- Supervision in aspect of religious leaders
- Scope of supervision
- Kinds of supervision
- Approaches of Supervision
- Supervisory tools
- Procedures of supervision and control
- Responsibilities and Purposes
- Obstacles of Supervision Effect
- Factors effecting wrongdoings and deviations
- Effects and results of weakness of control and supervision
- Supervision in banks
- Banking Mistakes Identification
- Solutions mentioned for strengthening the supervision to reduce deviations
- How to approve and conduct solutions of suggestions
- Reference materials
Vocabulary-
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Supervision and Internal Control Basics
Introduction
Studying the pre-history of Islam, Islam and the contemporary era, we can realize the importance of supervision and claim that it has deep roots in Iran history as well.
In ancient Iran, when we look upon the carves written on the rocks in Hakhamaneshi periods especially Kouroush's will we can understand there were some people assigned constantly to observe and write reports for the tax collections or dealing with the people's affairs and needs or predictions for the general requirements during the wars.
During the Daryoush's era when the country constitutions were established there was an assembly called the supervision assembly including legal authorities for the royalty families and Mobedan to execute the laws. Their duties were to inform the received reports from the Shahrbanan and States to the king.
In the Islamic era, reading the Imam Ali and Quran, we can see that there are some evidences referring to the importance of the supervision.
This is a piece of written Ahdnameh by Imam Ali to Malek Ashtar Nakhaee when he was appointed for the governor of the Egypt .
In the history of Islam , there are letters of Imam Ali and the Holy Quran that refer to the significance of supervision . Some of the letters of Imam Ali to Maalik al- Ashtar as the governor of Egypt is as follow :
تُوَلِّهِمْ مُحَابَاةً وأَثَرَةًاً، فَإِنَّهُمَا جِمَاعٌ مِنْ شُعَب ثُمَّ انْظُرْ فِي أُمُورِ عُمَّالِكَ، فَاسْتَعْمِلْهُمُ اخْتِبَاراً وَلاَ ِ الْجَوْرِ وَالْخِيَانَةِ وَتوَخَّاً مِنْهُمْ أَهْلَ التَّجْرِبَةِ وَالْحَيَاءِ، مِنْ أَهْلِ الْبُيُوتَاتِ الصَّالِحَةِ والقدم فِي الاِِْسْلاَمِ الْمُتَقَدِّمَةِ، فَإِنَّهُمْ أَكْرَمُ أَخْلاَقاً، وَأَصَحُّ أَعْرَاضاً، وَأَقَلُّ فِي الْمَطَامِعِ إِشْرَافاً، وَأَبْلَغُ فِي عَوَاقِبِ الاَُْمُورِ نَظَراً.
Then consider affairs of your officials .Regarding their positions , appoint each to his post after testing , not out of carelessness or self – interest and favoritism . Otherwise , grounds for tyranny and dishonesty would be established . Among them , select those who are qualified and dignified , descendants of virtuous families who had been pioneers in Islam and who are of high manners , nobler , and chaste and who would invariably have in mind the end of their deeds rather than being victimized by greed and immediate gains . 6
ثُمَّ أَسْبِغْ عَلَيْهِمُ الاََْرْزَاقَ فَإِنَّ ذلِكَ قُوَّةٌ لَهُم ْ عَلَى اسْتِصْلاَحِ أَنْفُسِهِمْ، وَغِنىً لَهُمْ عَنْ تَنَاوُلِ مَا تَحْتَ أَيْدِيهِمْ، وَحُجَّةٌ عَلَيْهِمْ إِنْ خَالَفُوا أَمْرَكَ أَوْ ثَلَمُوا أَمَانَتَكَ . ثُمَّ تَفَقَّدْ أَعْمَالَهُمْ، وَابْعَثِ الْعُيُونَ مِنْ أَهْلِ الصِّدْقِ وَالوَفَاء ِ عَلَيْهِمْ، فَإِنَّ تَعَاهُدَكَ فِي السِّرّ لاَُِمُورِهِمْ حَدْوَةٌ لَهُمْ عَلَى اسْتِعْمَال ِ الاََْمَانَةِ، وَالرِّفْقِ بِالرَّعِيَّةِ.
Also , allow them an abundance of livelihood , as this would enable them to mature themselves , keep them from misappropriating what they have at their disposal ( the public property or funds of the Moslems entrusted to them ) and would constitute an argument against their possible dishonesty or disobedience admitting of no excuse . In addition , keep checking their activities by appointing honest and faithful but disguised inspectors; for your secret supervision of their performance would be a motivation for their trustworthiness as well as their fair treatment of the people .
ثُمَّ أُمُورٌ مِنْ أُمُورِكَ لاَ بُدَّ لَكَ مِنْ مُبَاشَرَتِهَا: مِنْهَا إِجَابَةُ عُمَّالِكَ بِمَا يَعْيَا عَنْهُ كُتَّابُكَ .
Also there are certain matters that inevitably call for your own direct action . A case in point is replying to the executives when it is not within powers of your secretaries .
Imam Ali (a) had entrusted to Munzir bin Jarud Abdi something which he misappropriated. Thereupon Imam Ali (a) wrote the following letter to Him :
فَإِذَا أَنْتَ فِيَما رُقِّيَ إِلَي َّعَنْكَ لاَتَدَعُ لِهَوَاكَ انْقِيَاداً، وَلاَ تُبْقِي لاَِخِرَتِكَ عَتَاداً تَعْمُرُ دُنْيَاكَ بَخَرَابِ …
آخِرَتِكَ، وَتَصِلُ عَشِيرَتَكَ بِقَطِيعَة ِدِينِكَ
But all of a sudden I received about you news which confirms the fact that you do not check and control your inordinate desires, that you do not attach any importance to your life after death and you want to adorn and beautify you life at the cost of your salvation and that you are forsaking your religion to provide for your relatives .
When Mu'awiya came to power, he started corresponding secretly with Ziyad, inviting him to leave the side of Imam Ali (a) and to join him, offering him the bribe of being declared the son of Abu Sufyan. When Imam Ali (a) came to know of these secret messages he wrote the following letter to Ziyad :
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وَقَدْ عَرَفْتُ أَنَّ مُعَاويَةَ كَتَبَ إِلَيْكَ يَسْتَزِلُّ لُبَّكَ وَيَسْتَفِل ُّغَرْبَكَ فاحْذَرْهُ، فَإِنَّمَا هُوَ الشَّيْطَانُ
I am given to understand that Mu'awiya has been corresponding with you. Beware, he wants to make a fool of you, to blunt your intelligence and to harm your self-respect. Remember that it is Satan which will attack an imprudent and incautious Muslim from behind and from right and left so that finding him unwary and unwatchful, it may overpower him and may enslave his reasoning.
– Also , he wrote a letter to the one of his governors :
فَقَدْ بَلَغَنِي عَنْكَ أَمْرٌ، إِنْ كُنْتَ فَعَلْتَهُ فَقَدْ أَسْخَطْتَ رَبَّكَ، وَعَصَيْتَ إِمَامَكَ، وَأَخْزَيْتَ أَمَانَتَكَ
I have been given to understand that you have taken possession of State-lands and that you have not only brought them under personal use but you have misappropriated State treasury also.
Also, Imam Ali advised his governors to select the honest and truthful supervisors for control their activities :
ثم لاتدع مع ذلك تفقد اعمالهم و بعثه العيون عليهم من اهل الامانه و الصدق فان ذلك يزيدهم جداًفي العماره و رفقا في الرعيه وكفا عن الظلم وتحفظاً من الاعوان .
Do not forget the assessment of affairs and sending the honesty and trustworthy supervisors there because the supervision leads to habitable state and compromising with people , avoiding from cruelty and taking care of companies .
Chapter Al- Imran
كنتم خيرامه اخرجت للنا س تامرون بالمعروف و تنهون عن المنكروتومنون با لله ولوآمن اهل الكتاب لكان خير الهم منهم المومنون واكثرهم الفاسقون (110)
You are the best people raised for the good of mankind; you enjoin good and forbid evil and believe in ALLAH. And if the People of the Book had believed, it would have, surely, been better for them. Some of them are believers, but most of them are transgressors (110) .
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Chapter Al- Taubah
والمومنون والمومنات بعضهم اوليائ بعض يامرون بالمعروف و ينهون عن المنكرويقيمون الصلاه و يوتون الزكاه و يطيعون الله ورسوله اوليك سير حمهم الله عزيز حكيم(71). ان الله
And the believers, men and women, are friends of another. They enjoined good and forbid evil and observe Prayer and pay the Zakaat and obey ALLAH and HIS Messenger. It is these on whom ALLAH will have mercy. Surely, ALLAH is Mighty and Wise ( 71 ).
اينايبون العابدون الحامدون السايحون الراكعون الساجدون الامرون بالمعروف والناهون عن لمنكر و الحافظون لحدود الله و بشر المومنين (112)
Those who turn to ALLAH in repentance, who worship HIM, who praise HIM, who go about in the land serving HIM, who bow down to HIM, who prostrate themselves in Prayer, who enjoin good and forbid evil, and who observe the limits set by ALLAH. And give glad tidings to those who believe (112).
Chapter Al-Tahrim
ياايهاالذين آمنواقواانفسكم و اهليكم ناراًوقودها الناس و الحجاره عليها ملايكه غلاظ شداد لايعصون الله ما امرهم و يفعلون ما يومرون(6).
O ye who believe ! Save yourselves and your families from a Fire whose fuel is men and stones over which are appointed angels, stern and severe, who disobey not ALLAH in what HE commands them and do as they are commanded (6).
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Chapter Al-Hajj
الذين ان مكناهم في الارض اقاموا الصلاه وآتوا الزكاه وامروا بالمعروف و نهوا عن المنكرولله عاقبه الامور(41).
If we give them power in the earth, they will observe Prayer and pay the Zakat and enjoin good and forbid evil. And ALLAH rests the final issue of all affairs (41).
As discussed above , we get a result that the supervision is an value in all periods and its aim is well done of the regulations and indeed its ending lead to the efficiency and effectiveness of parts ( functional objectives ).
Setting the permanent , apparent and on time process of all financial and managing information ( informational objectives ) .
Adopting the processes and functions with related regulations and rules
( compliance objectives)
Reducing of misbehaviors and infractions ( preventive objectives)
So , the supervision is one of the effective factors on misconduct ions and infractions that it is more important than other factors such as managing , natural factors ,genetics factors ,cultural ,economy and socially , regulations and rules that the objective of this paper is to outline the discussion only about "supervision and internal control " and its role in reducing of infraction .
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Terminology of Supervision :
The definition of Supervision in Almajam- maghabis loghah is " look into things and consider the matters" .
Some believe that the non Arab use the vocabulary of supervision and its meaning is "to clean the garden". Therefore, the supervision is taking care and controlling the something from plague and disease .
In the Larous and Almonjed dictionary , the meaning of supervision in Arabic is cleverness and in Amid Persian dictionary is look into and view and in management science is gathering the information in order to effectiveness the management and to be assumed one of the main duty of manager .In view of idiom , the supervision is activity that compare "must "with" exists" , "desires "with "existence" and "forecasts" with" functions" conclusion of this comparing ,is so clear from similarity or differences between these two groups of factors that is available to managers of organization .
There are different definitions of supervision and control that in all there is one same point ,and it is" comparing between things that exist and things that must be present ". some authors of management science define "supervision ":
"It is the assessment and test out the function to make sure to do successfully objectives of organization and conducting its plans ".
" Supervision refers to observation and permanent consideration in order to control and leading the activities of parts , organizations ,and sub units to carry out the sound policies ,plans notified programs ".
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Significance of supervision
The most significance foundation of any system and sound and efficient collection , existence of a complete system and accurate supervision .Definitely ,existence of the supervision does not mean non confidence to staff , but in short we can say " confidence in organization is good , but supervision is essential ".Also , there are no differences between them , as supervision does not mean for search to get the weak points and infractions of staffs , but follow the strong points and abilities of staffs , because understanding and strengthening the positive points and talents and potential abilities of staffs , have important role for increasing the efficiency of any organization .All people excluding the prophets , make the mistakes .For this reason ,doing the different duties people make mistakes. Furthermore , disability , ignorance and partiality are got people into troubles.
Thing that can inform people from making mistakes , wrongdoing and change the weak points to the strong points , ignorance to awareness and prevent the bias is supervision "the good people", "sympathetic and awaring of people s duties " .
As a result , significance of supervision is disclaiming and if it applies carefully and thoroughly ,will make clear the effectiveness and significance of supervision .
"Supervision " is very important for organizations to assist the management and to direct the prevention for mistakes and bias .
"In management, there is not any good result without discipline and supervision , and if some conduct things willfully , by excellent leaders and managers, it will confuse some affairs" .
One of the main tasks of management is the supervision and control . Supervision is very important because it leads to matching the main planning , directing and agreements .
Thus , in conducting plans , it is essential to understand the talents of staffs and we can to be successful for matching the criteria with sound talents .
Matching and relations between duties , policy of organization and their talents are very important that without them is lead to weaken or fail the organization . For this reason , it is clear that strengthening or weakening of any organization depends on attitude and using for all periods .
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It is considered that applying encouragement and punishment should be set with states of programs and activities and characteristics of the organizational objectives after examining results of supervision and control and paying attention to the reality of talents in the organization.
Basically, in the organizations that there is no system of supervision and review, or without any supervision and control, accordingly planning and programs are failed.
If there is no supervision, there is no meaning for duties and obligations.
It is obvious that objectives of supervision and control are to ensure the corresponding between the results of operations and objectives of organization that has estimated in programming.
In formatting procedure of an organization and moving to the certain objectives, it will encounter to different barriers and these barriers cause the deviation of organization to unexpected ways and sometimes they may stop its working.
Accepting this reality is clarified that existence of the controlling system based on specific standards guarantees objectives of the organization.
Also, any organization in its developing procedures needs to understanding talents and the potential possibilities. Whereas the organization can point out all characteristics that the first , in the determination of criteria and policies provides the realities and facts , and the next for matching the certain criteria and standards with talents in order to specify the main and basic ways and using it very well .
Supervision in aspect of religious leaders
a) The Holy Prophet of Islam in his government in Medina has taken consideration to the Supervision and in the necessary cases he has used supervisors, because the good leadership for any society is needed the information and awareness of all things that has occurred in that society.
كان رسول الله (ص) اذا بعث جيشاً فامهم اميربعث معه من ثقاته من يتجسس له خبره
When the Holy Prophet of Islam sent the army and the commander was responsible of it, so he appointed the one of his trustful companions to the commander in order to report affairs to the Prophet.
It indicates that the Holy Prophet of Islam considered the people in organization very carefully, even selected the special persons that it is a sign of the importance of this matter in Islam and Islamic government.
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b) Studying some letters of Imam Ali in Nahjul balagha to governors and agents indicates that he takes consideration to the Supervision and selects the supervisor for any governor in order to report the duties. So, pay attention to some letters:
1-Imam Ali wrote the letter to Munzir bin Jarud Abdi:
فَإِذَا أَنْتَ فِيَما رُقِّيَ إِلَي َّعَنْكَ لاَتَدَعُ لِهَوَاكَ انْقِيَاداً، وَلاَ تُبْقِي لاَِخِرَتِكَ عَتَاداً تَعْمُرُ دُنْيَاكَ بَخَرَابِ …
آخِرَتِكَ، وَتَصِلُ عَشِيرَتَكَ بِقَطِيعَة ِدِينِكَ
But all of a sudden I received about you news which confirms the fact that you do not check and control your inordinate desires, that you do not attach any importance to your life after death and you want to adorn and beautify you life at the cost of your salvation and that you are forsaking your religion to provide for your relatives.
2- When Mu'awiya came to power, he started corresponding secretly with Ziyad, inviting him to leave the side of Imam Ali (a) and to join him, offering him the bribe of being declared the son of Abu Sufyan. When Imam Ali (a) came to know of these secret messages he wrote the following letter to Ziyad.
وَقَدْ عَرَفْتُ أَنَّ مُعَاويَةَ كَتَبَ إِلَيْكَ يَسْتَزِلُّ لُبَّكَ وَيَسْتَفِل ُّغَرْبَكَ فاحْذَرْهُ، فَإِنَّمَا هُوَ الشَّيْطَانُ
I am given to understand that Mu'awiya has been corresponding with you. Beware; he wants to make a fool of you, to blunt your intelligence and to harm your self-respect. Remember that it is Satan which will attack an imprudent and incautious Muslim from behind and from right and left so that finding him unwary and unwatchful; it may overpower him and may enslave his reasoning.
3 – Also, he wrote a letter to the one of his governors:
فَقَدْ بَلَغَنِي عَنْكَ أَمْرٌ، إِنْ كُنْتَ فَعَلْتَهُ فَقَدْ أَسْخَطْتَ رَبَّكَ، وَعَصَيْتَ إِمَامَكَ، وَأَخْزَيْتَ أَمَانَتَكَ
I have been given to understand that you have taken possession of State-lands and that you have not only brought them under personal use but you have misappropriated State treasury also.
Also, Imam Ali advised his governors to select the honest and truthful supervisors for control their activities: 14
ثم لاتدع مع ذلك تفقد اعمالهم و بعثه العيون عليهم من اهل الامانه و الصدق فان ذلك يزيدهم جداًفي العماره و رفقا في الرعيه وكفا عن الظلم وتحفظاً من الاعوان .
Do not forget the assessment of affairs and sending the honesty and trustworthy supervisors there because the supervision leads to habitable state and compromising with people, avoiding from cruelty and taking care of companies.
Imam Ali wrote to Maalik al- Ashtar : o Maalik , seek out in affairs of employees and appoint the eyes as inspector and supervisor that they are two characteristics of honesty and loyalty ,because their hidden inspection of affairs leads to treat them lovely .
Thereupon , in Imam Ali s speech , there are some main points about " control and supervision " :
-Necessary to seek out and supervise affairs of employees
-Indirect supervision and selection of inspector and supervisor
- having two characteristics of honesty and loyalty for inspectors and supervisors
- conducting the hidden inspection in order to keep the reputation of people
- the effectiveness of supervision and inspection that amendments of treatment compliance with plans
Imam Ali gave importance the supervision and inspection of the deeds and treatments of relatives to regime and its authorities and that letter wrote to Maalik al- Ashtar again :
Take care of your near cooperators and if one of them has been disloyal and confirms the reports of your inspectors , this certification is enough , punishes him and takes all properties , then contemns him and called him disloyal .
Due to the speech of Imam Ali , it is obvious that governor should pay more attention to his cooperators and companions and should consider all their deeds and treatments and if they do any things wrong , he encounters to them .
In another way , in addition to supervision for deeds and treatments of staffs , supervision for the situations of their living is duty of the governor and wrote to Maalik al- Ashtar :
" O Maalik , among your loyal companions select who is humble and fears from God that he supervises the weaken living and reports their affairs . "
This feature is unique and belongs to the Alavi management that governor or manager is not only supervision of organization affairs and department of staffs but also, he should be aware of the living situations of his staffs and in necessary case , he helps them and solves their problem . 15
Ibn e Abi Alhadid said : " Imam Ali struggle more in this matter and had the place called " Beytol ghesas " that people bring their complaints , requirements and letters there , so Imam solved their problems .
In Islamic management , the supervision is not only from upper level to lower level , but also people must supervise affairs of the governor and manager and evaluate his functions , so Imam commanded to one of his governor in the letter : " but then , select the substitution for affairs and send a group of your friends to Iraq , so ask about affairs place to place and supervise the treatment and action of governor . "
Scope of supervision
Maybe, there is a mistake about supervision that it is a kind of investigation and according to the Holy Islamic religious Law , it is forbidden , due to Holy verse :
" ولاتجسسوا " Do not investigate in "subjects affairs ".
We should explain that supervision is organizational or governmental subject , but investigation that is forbidden in the Holy religious Law is private subject , for this reason if the government supervise about its agents or a organization to staffs and personals that moves to accurate aims , implement the regulations accurately, in their the right place, is not opposite of the Holy religious Law and is not forbidden . Of course , maybe that it is interpret the supervision to investigation or called secretary that it is reason of irresponsibility of curiosity in the private affairs of subjects .
Islam does not permit the subjects to interfere to the other private affairs of subjects and command all to hide the indirect wrongdoings , so Imam Ali advised to Maalik al- Ashtar :
" وليكن ابعد رعيتك منك و اشنوهم عندك اطلبهم لمعايب الناس فان في الناس عيبا الوالي احق من سترها فلا تكشفن عما غاب عنك منها "
The most contemptible and the most avoided person in your view should be one who overtakes others in finding fault with people , for people do have frailties to cover which against those who would take advantage , no one is more qualified than the ruler .Do not try to uncover the faults hidden from you as your duty consists only in rectifying the faults which have been revealed to you .
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As you get, Imam Ali avoided people to be inquisitive of others and advised them to cover others faults , however , in other part of this letter ordered to Maalik al- Ashtar to appoint the inspector for governors. Thereupon , the Holy Quran avoided subjects to be inquisitive of private affairs and hidden faults of others that related to themselves or private relations with others , but investigation in public affairs is not only forbidden , but also sometimes is necessary ,a director should do all his duties correctly and inquisition in this part is important , even the private characteristics of directors should be supervised and inspected .
Of course, supervisors should pay attention to their affairs carefully ,until they don't make a mistake and disobey the regulations and rules of their responsibilities unless in certain situation that related organization or society is in danger, since consideration and recognition of legal and illegal area is very important , so in selecting and training of inspectors should be done very carefully and in this case, we can make use of supervision situations in the beginning of the letter of Imam Ali .
Kinds of supervision
* OPEN SUPERVISION :
A supervisor can conduct this supervision by some ways ;
- He directly gets the strong and weakened points by inspection and supervision of the range of his responsibility .
- getting report by staffs , and agents and consider them
- appointing the real inspectors or setting the organizations and they can be searched and inspected in doing affairs and reported to director of organization .
Open supervision by three above processes , has provided the control of the director of organization to affairs and caused his awareness to the strong and weakened points of organization , also caused the progress and development in affairs . Although , in this kind of supervision it is possible that some staffs make the mistakes and do their duties flattery and inaccurately , thereupon the open supervision is not sufficient that there is supervision called " Hidden Supervision ".
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* HIDDEN SUPERVISION :
This kind of supervision may conduct by appointing the hidden supervisor or getting the complaints and reports of people that we explain any of them shortly .
1- Appointing the hidden inspector : that can control of deeds of agents in the different forms and can distinguish active , careless and disloyal people and report about them . In this case , Imam Ali ordered to Maalik al- Ashtar :
" ثم تفقد اعمالهم و ابعث العيون من اهل الصدق والوفا عليهم "
Then , take care of their affairs and appoint the true and faithful secretaries .
By studying of history and letters of Imam Ali to governors , we can find that Imam Ali himself had this treatment to his agents and appointed hidden inspectors that they reported the adequate information .
2- Receiving the complaints and reports of people : it is accurate approach to control of agents because they knew that if they violated to the people rights or avoided to consideration of their affairs , so they reflected to top management , explained them and the top management
Considered the matter carefully and if they are right , top management did appropriately , so did not oppress to others .
When Imam Ali sent the army to do its responsibilities , he informed to the people that followed that army :
" و انا بين اظهر الجيش فارفعوا الي مظالمكم و ما عراكم مما يغلبكم من امرهم ولا تطيقون دفعه الا بالله و بي فانا اغيره بمعونه الله ان شاالله ."
I am in the back of army , so if you have the complaint , give me and whatever you get , exception God and me , nobody can not solve problems , so explain me until I will change it by supporting God , if he wants.
Imam Ali in the letter of Maalik al- Ashtar advised about investigation to
Complaints of people that arranges the meeting for all people :
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" واجعل لدوي الحاجات منك قسماً تفرع لهم فيه شخصك و تجلس لهم مجلساً عاماً فتتوا ضع فيه لله الذي خلفك و تفعد عنهم جندك واعوانك من احراسك وشرطك حتي يكلمك متكلمهم غير متتعتع ."
Spare part of your time and energy for those who have grievances, listening to them in public meetings , and for the sake of Allah , who brought you to existence , treat them humbly , keeping away from them your soldiers , henchmen guards , and the police so that if any of them has something to say may speak to you without fear and anxiety .
This is a sample of investigation of complaints of people ;
Soudeh , daughter of Amareh Hamedaniyeh , after the martyrdom of Imam Ali visited Mu' awiya to explain the complaint .
First, Mu' awiya blamed her that why she had rebelled people against him, then he asked ? What do you want ? Soudeh explained her complaint from Basar Ibn Ertah and at last said if you remove him , I will say thank you , otherwise we will not obey you . Mu' awiya said : Soudeh , do you threat me to my tribe ? I have decided that you are ridded to the camel and send to " BOSR" until whatever he wants to treat with you.
Soudeh thought shortly then read these poems .
صلي الا له علي روح تضمنها
قبرحالف الحق لا يبغي به بدلاً
فصاربالحق والايمان مقروناً
Peace be upon Him to the soul that has hidden Justice , indeed He has corporation to right and there is no substitution for Him , so there is a relation between the right and the faith .
Mu' awiya said : o Soudeh , who is he ?
She answered : He is Ali ebne Abitaleb .I complained to Imam Ali about a person who is responsible for collecting charities and he is cruel and I came to Imam Ali , he prayed God , so when he saw me , he finished it , then kindly asked me : what do you have problem ? I answered : " yes " , and explained the matter . He cried tears and said O lord , you know that I do not have ordered to be oppressive for people , so wrote the letter :
" In the name of God , when you read my letter , keep your affairs that you are responsible for them until the other comes and delivers your affairs , and the end " .
He gave me that letter without any covers , and I gave it to the person who is responsible for collecting charities . Thereupon , he withdrew and we became free of his oppression . 19
When Mu' awiya saw the condition , so he attracted the satisfaction of Soudeh .
DIRECT SUPERVISION
In this kind , supervision has been conducted without intermediary, for example the supervision of director for staffs .
INDIRECT SUPERVISION
In this kind , supervision has been conducted with intermediary, for example the supervision of governors and even the supervision of God by angels .
GENERAL AND SPECIFIC SUPERVISION
On the whole , there are two kinds of supervision : General supervision and Specific supervision .
General supervision is the outside care for all communities , but the Specific supervision is conducted by" particular unit "and " particular subjects " are responsible for it .
In General supervision , function of the governors is not hidden by people and if there was possible to limit the information of people in the past , but now there is no limitation , because of the worldwide network of information and the sensitivity of people to function of the governors , therefore they can analyze the matters better .
Imam Ali reminded to Maalik al-Ashtar :
" People think about your doing , in the same way , you think about functions of prior governors and they say about you whatever you say about them " .
According to above-mentioned speech , the professor Mohammad taghi Jafari said " this speech refers to " natural rule " that deeds of people reflect their thoughts ."
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Approaches of Supervision :
Regarding the investigation of Supervision as other social events , there are some special approaches by reviewing the records and scientific researches , we have appointed some approaches as follow :
Inspection : the regular and certain consideration on base the legal mission of organization to identify different items , change the current situation and excellent situation , evaluate their importance , recommend
In order to improve affairs , omit deficiencies , get better the treatment and function of organizations and staffs and follow the suggestions till their results .
Auditing : the scientific process and regular collection and impartial evaluation about claims to activities and events in order to compliance these claims with prior criteria then report the results to them .
Examination : the results consideration and investigation of upper level of organization to lower level .
Observation : research and investigation through going to that place and evaluate data with events .
Correspondence : to get information by letter writing for supervision .
Inquiry : investigation of information and supervisory data by the presence discussion with main matters .
Systematic : to study the statistics data in order to recognize the deviations of organization that it is one of the approaches of supervision and recently is used .
Supervisory Tools :
Humane ; The sense of seeing
The sense of hearing
The sense of touching 21
Inhumane ; The computer systems
Laser
Deductive measurement means
We will explain more about supervisory means later .
Procedures of supervision and control:
The responsible of supervision is that director supervises all process of functions at first , middle and end ( past, now , future ) .
The policy of Islamic system for managing communities is based on prevention , not treatment , because prevention is more important .
Process of supervision is divided to :
n To identify the items
n To collect the information , statistics and measure the function
n To compare the function with standards and identify deviation
1- Identify the items , measures and standards
Standards or measures of the function are measurable , in fact the matters are supervised their consideration and do results of function and operations comply with standards and expected measures .
In identification of Standards and measures , the organizational objectives are measurable shortly , because objectives are described generally and they are not measurable , therefore supervision becomes difficult .
So , the general objectives should divide into detail objectives and in form of numbers till we can evaluate them during supervision .
2 - Collect the information , statistics and measure the function
To measure the function of an organization is the second step of control process , if we do not pass the step of " measure the function " correctly , we can not get the step of " evaluation of function " , whereas if we want to consider this matter seriously , first of all we should measure the function of a person or organizational unit and then compare results with standards ,therefore get the evaluation .
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There are three main points in the measure the function , if you do not pay attention to them , they will cause to the wrong measurements , incorrect evaluations and bad effect for staffs . Indeed , we have excellent programs and appropriate standards , but during programs because of ignorance of three main points in the measure the function , we make the mistakes and finally we will provide and report the incorrect evaluations .Therefore , we may report the weaken affairs in form of excellent or accurate affairs in form of wrong and incorrect . So, these evaluations and reports have very bad effects for staffs .
In the measurements , should pay attention to following points :
1- What do you want to measure . ( subject)
2- How should you measure ( method )
3- When should you measure ( time )
In planning process , it should be determined the short and long aims obviously and according to the certain aims in the programs of an organization we can get indirectly that what we should measure.
Therefore , the system of control should measure and evaluate the main points that has the most results for organization and the main points that have the major role in correct conducting the functions and continuing the accurate programs of the different organization so, we called them
"Strategic points"
Some example of the strategic points of an organization :
n Centers that they have the most abilities and capacities of the organization .
n Centers that they have the main role in the aims of organization .
n Sensitive centers that they cause to the problems and difficulties .
n Centers that they are very important for the future of the organization.
The system of control should supervise all areas that they are important to directors and all matters that they are because of the standards programs should measure and evaluate .
In the matter of how to evaluate the affairs , we should consider the following items :
First , do all affairs and their results evaluate completely or not ?
The evaluation of all affairs should conduct entirely then we can judge , otherwise , the evaluation of wrong measurement causes to false evaluation .Meanwhile , it is very important in measurement affairs and functions if we pay attention to some aspects of affairs and ignore some other aspects they may cause problem in the spirit of staffs of organization and aspects that they don't measure and don't evaluate for directors are not important . 23
Second , are the measurement of affairs objective or subjective ?
In some cases , the measurements are subjective and away from the reality , sometimes in the large group with its sample and measurement of the function that sample in aspect of quality and quantity by observation and measurement of the function of someone from this sample cause to judge . While someone are not the sample of whole society of measurement .So, in some case we measure affairs and in another case we
only pay attention to sample of a large group .
Third, the time of evaluation ; in some system of control , it can measure the function of organization during conducting the programs . Purpose of this measurement is the getting information that it leads to clarify problems and giving them to staffs or computers then they can modify their treatments and functions.
In some systems , the measurement is conducted after operations and it is in cases that they have many processes of operations and it is conducting stage by stage . Therefore the first stage should complete then the satisfaction of affairs should be measured .If the first stage is done successfully then we can go to the next stage.
Of course , there are many situations that they are impossible to measure
the functions before and after completion , because :
- The function is done in the short time and we don't have any time to get
information .
- The time of function is very short and there is no time for modifying affairs before their completion .
3 – To compare the function with criteria and determine the deviation ;
In supervision process , we should compare the information related to real functions and conductive operations with standards and criteria .The comparison between the real information with standards and criteria
Should be obvious and be easy for making decisions .
In getting the information and comparing them with standards
We use the tables that they are easy for directors for their comparisons , also preparing the reports for studying and analysis are not difficult .
If there are many numbers , it should be better to use the computer .
4 –considering and modifying actions;
After the comparison between the function or real operations and standards , if their results are correct and function comply with standards, in this case , it is not necessary any action to take and we should find their reasons then solve them. 24
Of course, the main purpose of the effective system of supervision
avoids any mistakes and complying functions and operations with
programs and certain aims , it is possible to do not comply the real
functions or conductive operations with standards and programs .
If there are any modifications , the supervisory system should
be ineffective and it has not any good result .Whereas there are many
differences between results and estimate programs , it is better to review
programs and purposes , because there is no pay attention to
references and programs , therefore it is necessary to modify the actions
and correct the deviations .
Responsibilities and Purposes
The purpose of supervision is " to conduct the accurate rules " that it
causes to following results :
- Increasing the efficiency and the effectiveness of operations of units
- Setting the continuing process , clearly and timely from all financial and managing information
- Compliance the processes and operations with regulations and rules
- Decreasing in wrongdoings
So the ultimate aim is to find the causes to solve the problems otherwise the proper people would be replaced and contaminated for the same reasons and constantly the shaped causes stays in the society forever.
The Obstacles of Supervision Effect:
These obstacles can be divided to following parts:
Interior Obstacles:
Egocentricity – secularism – vengefulness – subjectivity – group interests – Political trend
Exterior Obstacles:
Structural – legal – conductive – (Extreme – incorporate supervision – inability in control variety) political and social
Interior Obstacles:
These obstacles having roots in selfishness can be seen in both supervisor and subjects. 25
The high point of the selfishness is Egocentricity in which one sees himself the center of everything and compares all things with his interest and considers others' interest subordinate.
He escapes from criticism of his faults and deficiencies because he sees the supervision as a device to reveal his faults. Therefore he cannot accept supervision and tries to escape it as much as he can.
He ridicules everything that opposes his power. Spread corruption and considers him appropriate. And when they are told not do any wrongdoings they reply that they only wish to correct everything. And be aware that these are the wrongdoers but they do not realize it.
Even the supervisor can be entangled in his carnal desires and tries to take revenge not to criticize. He envies and can see anybody better than himself. He always finds mistakes and speaks behind others back and searches everything and struggle to take out the rivals. He wants everything for himself and doesn’t want to change and correct anything.
Exterior Obstacles:
1- Structural Obstacles
There is the supervision in both upper level and lower level that many organizations such as the inspection organization of the judicial power and auditing organization are considered as supervisory structures, but sometimes there are ambiguous .
2- Legal Obstacles
However, the law should be obvious , otherwise, there is conflict between supervisor and subjects .
3 – Conductive Obstacles
In some cases, if there are not the structural and legal problems, we have conductive problems and their reasons are mismanagement and inefficiency .
- The extreme control :
The extreme control imposes the extreme regulations on activities and conductive duties of subjects and threat their freedom , the extreme control is result of the weak regulations for conductive activity and leads to extreme freedom . Both of them are dangerous and more control is obstacle of new actions and causes to the spirit problems , guides the organization to more prestige and slowly decisions . 26
The less control can damage to internal coordination and leads to the extreme usage of reference or its misusage .
The main principle is to find the accurate balance between controls to support the function of organization .
- uncoordinated supervisions :
If the systems of control have been designed inaccurately , it may send the wrong messages to staffs . Directors should provide the systems of control and encouraging of right behaviors in staffs leads to success the organization in the long time . For example , if subjects want spend their times for future plans , but keeping the fix salary , so the certain stiff continues his process of getting his salary in conductive affairs without thinking .
- Inability in variety controls :
Strategies of control , often reflexes the structure of organization for example ; for example a centre organization has a system of unit control that it determines collections of the same standards to conduct in parts and units . Some organization in different parts of country has different systems of control . Thereupon , the system of control is not coordinate to the system of payment .
- Imposing supervision instead of the supervision on him :
It is true that we can not depend on the supervision , because staffs remove the supervision by omission , transfer the result with law quality . One of the main problems of formal supervisions is to lead the terrible reactions and causes the following items :
1 – Inflexible formal behavior :
In this behavior , the staff poses him in system of supervision . They struggle to forget the main purposes of organization .
2 – Strategic behavior :
In this behavior , subjects provide the information in the certain time .
3 – Report of invalid information :
Sometimes , subjects weaken the system through incorrect and invalid information . All mentioned matters , the whole characteristics are ineffective and incorrect and its reason is mismanagement in supervision and it is dangerous . So, we should train supervisors and substitute the " supervision of management " with " management of supervisory " . 27
- Political – social obstacles :
Mr. Amid Zanjani believes that there are three interpretations in the
political dictionary and they have explained in supervision ; setting
interest , group interest and political trend that they are in management
and supervision level .If there is a problem in supervision , it should be in
all supervisions and it is need to omit the supervision from the
management . Thereupon , we consider the following factors :
1- Setting interest :
All people have different interests and different interests depend on way and we can see this matter in the purpose . When a supervisor does not satisfy a method , so he gives to the subject the negative mark . However,
The supervisor should take care of any interests . To be " impartial " is very difficult , because we have no impartial person like a judge that he judges in the sport competition and if he is impartial , it is possible but it makes problem.
2- Group Interest
It is not clear what the purpose of the group interest or legal interest is. Maybe the purpose is associate interest which is in opposed of the personal interest mentioned above. In investors, businesspeople, educational groups, is it the purpose or is this the cultural structure that anyone who joins a group makes it the axel and talks about it and explains all the regulations in favor of the position he has and gives credits to the same place. Even when he is moved to another section, he takes all the characteristics to the new section. This is a positive judgment that everyone wishes to develop and expand the productivity of the section he is working in and the negative judgment, expansion of the group orientated opinions in the modern organization. Therefore he claims more for one section which has been referred to as section-oriented view.
3- Political Trend
This factor or obstacle is like the others is inevitable and one cannot be without it. At the end one is fitted in one side. Of course there is no mention of the sides. There are many sides and subsides in a big one.
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Like west parties which have different sides or parties within themselves which during election period surface and show up. When the supervision group is chosen from a political group, the view becomes one sided.
To eliminate the rivals or blacken their position, this trend even in their judgment gets interfered because supervision and judging finally come from same root and supervision hides judgment and vice versa. We have been attacked from these kinds of supervisions.
Factors effecting wrongdoings and deviations:
Management
- oversimplifying the employees’ problems
- unfair work share
- ignoring employees’ performance evaluation
- incomplete and unaware appointment
- discrimination in effecting regulations
- using facilities and situations
- misusing rewarding and punishment tools
- neglecting employees’ educational needs
- reducing informal contact with the employees
Supervision and control
- ignoring minor deviations
- discrimination in striking corruption
- neglecting follow-ups
- sudden and devastating supervision
Environmental Factors
- contacting with the immoral employees
- physical factors, like light, sound pollution…
- factors effective in causing stress
- environmental culture
Genetic factors
- talent
- amputation
Cultural factors
- immoral culture of the environment
- ignoring the orders and regulations
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Economical and social factors
- economical and social poverty
- financial limitation
- comparing one with others subjectively
- ignoring employees’ performance and their income
Laws and regulations
- inflexible laws and regulations
- unattainable and difficult aims
- extremes in effecting the regulations
- combination of subject and supervisor
Usage tools
- omission of systems in computations
- unfair work share
- omission of control system
- shortage of conductive tools
we will explain all mentioned items in the future .
Effects and results of weakness of control and supervision :
The weakness and absent of the control and strong supervision can damage factors of organization and its benefits that this fact does not consider first , but then pay attention to it carefully . It is necessary to set the accurate and efficiency supervisory system for decreasing the sensitivity of directors to avoid the subjects like dissatisfactory of customers , delaying in repayment of claims , exposing the classified information , bribery , embezzlement , weakness of democracy , reducing the progress times for Iranian , increasing expenses of life and etc that they cause to damage the interests of organization .
Supervision in banks
احل الله البيع و حرم الربا
God has said that Business is lawful and usury is unlawful.
The banking regulations in Islamic Republic of Iran is based on legal article with certifying agents of parliament and keeping council . If banks do anything complying with law , so loan and deposits of customers are not lawful , but unfortunately some of banking directors act in spite of law and customers that they do not know anything about it . Thereupon loan and deposits are unlawful . 30
Meanwhile , banks as one of the active economic agencies in the society provide the different financial services to customers .
Therefore, directors of banks should sure to get profits and the simple process of providing services to customers and identifying the deviations , mistakes of the external organization to avoid the errors in current process of activity of organization and finally entering the damage to the benefits of the bank .
Consequently , in order to avoid the unlawful functions of banks , also keeping away from any errors in current process of activity of organization , the supervision should be necessary .
Banking Mistakes Identification
Referring to gained experiences during supervision organization of banking network and learning from the scientific research conducted on expansion and optimizing the supervision approaches in economical agencies in general, and banking system in specific, it can be seen that many factors have effects on organization members which as follows:
Financial Damages:
Every deviated phenomenon in bank investment directly or indirectly effected and led not from malfunction of other organization members. Like waste of properties through conducting criminal and deceitful proceedings.
Cultural and environmental Damages:
It is the inflexibility of organization cultural characteristic with present condition and ignoring environmental factors effective on the organization in frame of which the organization has been attending to and wishfully or unrightfully has affected the members of the organization. Not paying attention to the conditions of the country administrative system or worldwide society and ignoring the constant and present changes or preventing of informing in time and concealing the deviations in the name of the warnings supervisions.
Human Damages:
Ignoring the personal and individual characteristics of the employees and demotivating of their work without paying attention to the importance of the human resources role in reaching the organization goals. 31
On of these damages could be ignoring the appointing people appropriately and discrimination in giving rewards to them.
Setting goals Damages:
The organization in the procedure of the evolution needs to determine a program and supply appropriate tools to reach the set goals.
So preparing unreal goals and unreachable without considering the tools, economical, environmental and geographical conditions are the damages.
Legalization Damages:
The effect of the laws and regulation and the procedures on the current situation and gaining the organization aims is clear and always has been stressed by the damage sociologists. In this respect we can refer to the complexity, multidimensional, ambiguous laws and many changes occurring in them.
Solutions mentioned for strengthening the supervision to reduce deviations
Considering the discussion mentioned to reduce the damages present and making health the environment and preventing the administrative defaults, there is no way but to strengthen organs of the banking network organization, because the body of the conductive organization due to its nature, is unable to identify the damage factors on the members of the organization. Therefore, the members must be very powerful. So considering the available tools there are some suggestions for a short period of time:
1- Establish immediately the supreme committee of supervision with responsibility of one of the assistants of minister of economy and finance affairs and delegates of supreme audit court , auditing organization and general inspection of organization and superior position of the supervisory organization .
2- Promoting the formal position of the banking supervisory organization to the supreme level of organization after board of directors and direct control of senior management .
3-Using tools and the updating facilities to conduct policies of control
4- Setting the relationship in staffs with responsibilities and the size of organization 32
5- Setting the supervision and integrated internal control ( comply with principles of Basel Committee )
6- Providing tools of internal control during service design and processes of the modern banking by use of facilities of professional supervisory units.
7- To decentralize and decrease the distance of operational place of controller with control unit
8- Setting the practical training courses for levels of inspectors and auditors of organization
9 – Strengthening the moral and Islamic and National spirit of inspectors
10 – To manage independently on internal control and supervision units
11 – Setting the bank of internal information and inter banking
12 – The health joint plan ( getting swearing plan from staffs and customers based on legal principals in the relationship with organization )
How to approve and conduct solutions of suggestions :
According the consideration reference, suggestions are divided into two groups as following table ;
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Schedule of conductive suggestions
Suggestions group
Suggestive file
estimated time for conduction
The board of directors are responsible for conduction of these suggestions
- To manage independently on units
of internal control and supervision
- The health joint plan
- To establish the bank of customers information
- Promoting the formal position of the banking supervisory organization to the supreme level of organization after board of directors
- Setting the relationship in staffs with responsibilities & the size of organization
- Setting the supervision and integrated internal control
- Using tools of internal control during service design and processes of the modern banking by use of facilities of professional supervisory units
- To decentralize and decrease the distance of operational place of controller with control unit
Two weeks from date of approving the supervision committee & internal control
Suggestions group
Suggestive file
estimated time for conduction
The committee , interior or exterior organizational
References should consider suggestions
- To establish the supreme supervision committee
- Using tools and the updating facilities to conduct policies of control
- Setting the practical training courses for levels of inspectors and auditors of organization
- Strengthening the moral and Islamic and National spirit of inspectors and auditors
One month from date of approving the supervision committee and internal control
Complementary suggestions
- To conduct appropriately the Anti – Money Laundering regulations in banks
- To strengthen working motivation in staffs ad setting the special work for inspectors and auditors
- To privatize the audit of internal banks
- To privatize the professional training for inspectors and auditors
- To privatize the professional affairs and evaluate the technical , financial and economic descriptions & need to evaluate the credit of customer
- To privatize the evaluation of immovable collateral and machine
One year from date of approving the supervision committee and internal control
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Reference materials
1- The Holy Quran
2- Nahj Al – Balaghah
3- Amid Dictionary
4- Almonjed Dictionary
5- Larose Dictionary
6- Training courses of preparation of the army Islamic guards
7- Collections of questions the delegates unit of the office of the supreme leader in universities
8- Collection of suggestions of banking inspection group in the ministry of economy and assets affairs
9- Description of the negotiations of the reviewing council of the Constitution of Islamic Republic of Iran , page 1266 .
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Vocabulary
Accountable
مسئول
Act carelessness
سهل انگاری کردن
Agent
نماینده
Agency
ماموریت
Allocation
سهمیه / جیره
Appraisal
ارزیابی ، ارزشیابی ، برآورد
Appropriate
مناسب ،شایسته
Approve
تصویب کردن ، تائید کردن
Argument
گفتگو ، مشاجره
Army
لشکر
Assembly
شورا
Avoid
زنهار
Barrier
مانع
Become acquainted of
آشنا شدن
Board of directors
هیات مدیره
Blame
سرزنش کردن
Carelessness
سهل انگاری
Compromise
مدارا کردن
Confuse
مختل شدن
Confront
روبرو شدن با
Commander
فرمانده
Compliance
تطبیق
Contemn
تحقیرکردن
Contemptible
پست ، خوار ، قابل تحقیر
Contrary
مغایرت
Convention
همایش
Coordinate
هماهنگ کردن
Cover faults
پنهان کردن عیوب
Credibility
قابلیت قبول
Cruel
ظالمانه
Cruelty
ظلم ،ستم
Curiosity
کنجکاوی
Diligent
کوشا
Discharge
اخراج کردن
Discrimination
تبعیض
Discussion
گفتگو ،مذاکره
Disloyal
خیانتکار
Distinguish
تمایزقائل شدن
Divine Law
شرع
Doctrine
اصول
Effectiveness
کارایی
Efficiency
اثربخشی
Egocentricity
خودمحوری
Embezzlement
اختلاس
Envy
حسادت کردن
Establish
تشکیل دادن
Examination
بررسی
Exterior
بیرونی ، خارجی
Flattery
چاپلوسی
Follow up
پیگیری کردن
Foreseen
پیش بینی شده
Frailty
سستی ، ضعف اخلاق
Governor
استاندار، والی
Hide
پوشاندن ، مخفی کردن
Hoard
اندوختن ، احتکار کردن
Humble
فروتن
Humiliate
تحقیرکردن ، اهانت کردن
Judicial power
قوه قضائیه
Ignorance
نادانی ، جهالت
Ignore
چشم پوشی کردن ، صرفنظرکردن
Illegitimate
غیرقانونی ، نامشروع
Immovable
غیرمنقول
Incur
موجب ضرر شدن
Inconsistent with
مغایربا ،متناقض
Infractions
تخلفات
Introduction
مقدمه
Inquiry
پرس وجو ، تحقیق
Inquisitiveness
کنجکاوی
Inspection
بازرسی
Intermediate
واسطه
Investigate
تجسس کردن ، تحقیق کردن
Legitimate
قانونی ،مشروع
Martyrdom
شهادت
Measure
اندازه گیری کردن
Members of parliament
اعضا مجلس
Mission
ماموریت
Objective
عینی ، قابل مشاهده
Officials
کارگزاران
On the other hand
بعبارت دیگر
Oppress
ستم کردن ، تعدی کردن
Oppression
ستم ،ظلم ، تعدی
Oversimplify
خیلی سهل گرفتن
Pest
آفت ، بلا
Peace be upon him
درود بر او
Philosopher
اندیشمند
Piety
دینداری
Preamble
مقدمه
Preparation
بسیج
Privatization
خصوصی
Procedure
رویه ،روش
Professional
تخصصی ، حرفه ای
Pursue
پیگیری کردن
Rank
رتبه بندی کردن
Rebel
شورش کردن
Rectify
اصلاح کردن ، برطرف کردن
Relationship
پیوند ، رابطه
Reliable
قابل اطمینان ، موثق
Religious
دیندار
Religiousness
دینداری
Remedy
درمان کردن ، اصلاح کردن
Remind
یادآوری کردن
Remove
عزل کردن
Revenge
انتقام گرفتن
Review
تجدیدنظرکردن
Ridicule
تمسخرکردن
Rival
رقیب ، حریف
Scale
شاخص
Schedule
زمان بندی کردن
Scrutiny
بررسی دقیق ، موشکافی
Search
جستجو کردن
Self-admiration
خودپسندی
Senior management
مدیریت ارشد
Sensation
حس
Show partiality
غرض ورزیدن
Signify
معنادادن، دلالت داشتن
Specify
مشخص کردن
Standard
معیار
Substitution
جانشین
Subjective
ذهنی
Suitable
مناسب ،شایسته
Supervise
نظارت کردن
Supervisory
نظارتی
Supplication
درخواست
Swear
سوگندخوردن
Threat
تهدید کردن
Treat
درمان کردن
Trend
گرایش
Tyranny
حکومت استبدادی
Unattainable
دست نیافتنی
Uncover
افشا کردن
Unfair
غیرمنصفانه
Unknown
ناشناس
Unlawful
غیرقانونی
Untrustworthy
غیرقابل اعتماد
Usury
رباخواری
Verse
آیه قرآن
Violate
تجاوز کردن به
Watch over
نظارت کردن
Willfully
خودسرانه
Withdraw
کناره گیری کردن
of facilities and internal inspection of banks
Supervision
&
Internal Control
Basics
Author : Abbas Shorani
Translator : Mahnaz Akbarpour
Preamble of author
In the name of God , this study has been provided for you after serious efforts of all my colleagues in the General Inspection and Auditing department of Bank Sepah of Iran .
It discusses about procedures and the control and supervision approaches in departmental and functional systems specially banks .
Meanwhile, this study was read by academics previously and some of its materials were revised, however it is provided with the common materials.
It is possible that there are some mistakes or inconsistent with principles and the current regulations , kindly I request academics , professors and friends to send their comments and suggestions to my electronic address :
Shorani@banksepah.ir
and assist me in this regard .
Thanks,
July, 2007
Abbas Shorani
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The convention of the modern patterns in supervision of facilities and internal inspection of banks
Title of article :
Supervision And Internal Control Basics
Abbas Shorani
Bachelor's degree of accountant
Head of General Inspection and Auditing department & Director of money Laundering prevention division
Summary
According to development of the civil organizations and increasing the effectiveness of functions the cultural , social , economical and political organizations based on continuing of existence of society the subject of " supervision " on different activities of the social organizations is very important to philosophers . If we consider the effect of the religious and historical training in nowadays , we will believe that the supervision and internal control should be accepted by all people .
Professors in management science have defined the supervision in concept of providing the information in order to effectiveness of management and consider it as one of the main duty of manager , also they have divided it into types ; the apparent supervision and the hidden supervision , and achieving it depends on the providing the following four steps :
- To determine standards and criteria
- To collect the information , statistics and measure the function
- To compare the function with criteria and determine deviations
- To amend actions
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On this base, directors in order to ensure the used supervisory tools , can apply the following approaches :
- Inspections
- Auditing
- Examination
- Observation
- Correspondence
- Inquiry
- Systematic
Thereupon , purpose of the supervision is to ensure that regulations are conducted appropriately and it causes to following results :
- Increasing the efficiency and effectiveness of function units
- Setting the continuing process , obviously and timely from all financial and managing information
- Compliance procedures and functions with rules and regulations
- Decreasing mistakes and infractions
Thereupon , in order to strengthen the supervision and decreasing of infractions in the bank , we have provided the following suggestions :
1- Establish immediately the supreme committee of supervision with responsibility of one of assistants of minister of economy and finance affairs and delegates of supreme audit court , auditing organization and general inspection of organization and superior position of the supervisory organization .
2-Promoting the formal position of the banking supervisory organization to the supreme level of organization after board of directors and direct control of senior management .
3- Using tools and the updating facilities to conduct policies of control
4 – Setting the relationship in staffs with responsibilities and the size of organization
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5 – Setting the supervision and integrated internal control ( comply with principles of Basel Committee )
6 – Providing tools of internal control during service design and processes of the modern banking by use of facilities of professional supervisory units
7 – To decentralize and decrease the distance of operational place of controller with control unit
8 – Setting the practical training courses for levels of inspectors and auditors of organization
9 – Strengthening the moral and Islamic and National spirit of inspectors
10 – To manage independently on internal control and supervision units
11 – Setting the bank of internal information and inter banking
12 – The health joint plan ( getting swearing plan from staffs and customers based on legal principals in the relationship with organization )
13 – To strengthen the base of the organizational banks in order to prevent the anti-money laundering
14 - To strengthen working motivation in staffs
15 - To privatize some parts of affairs to private part
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Contents
-Introduction
- Preamble
- Terminology of Supervision
- Significance of supervision
- Supervision in aspect of religious leaders
- Scope of supervision
- Kinds of supervision
- Approaches of Supervision
- Supervisory tools
- Procedures of supervision and control
- Responsibilities and Purposes
- Obstacles of Supervision Effect
- Factors effecting wrongdoings and deviations
- Effects and results of weakness of control and supervision
- Supervision in banks
- Banking Mistakes Identification
- Solutions mentioned for strengthening the supervision to reduce deviations
- How to approve and conduct solutions of suggestions
- Reference materials
Vocabulary-
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Supervision and Internal Control Basics
Introduction
Studying the pre-history of Islam, Islam and the contemporary era, we can realize the importance of supervision and claim that it has deep roots in Iran history as well.
In ancient Iran, when we look upon the carves written on the rocks in Hakhamaneshi periods especially Kouroush's will we can understand there were some people assigned constantly to observe and write reports for the tax collections or dealing with the people's affairs and needs or predictions for the general requirements during the wars.
During the Daryoush's era when the country constitutions were established there was an assembly called the supervision assembly including legal authorities for the royalty families and Mobedan to execute the laws. Their duties were to inform the received reports from the Shahrbanan and States to the king.
In the Islamic era, reading the Imam Ali and Quran, we can see that there are some evidences referring to the importance of the supervision.
This is a piece of written Ahdnameh by Imam Ali to Malek Ashtar Nakhaee when he was appointed for the governor of the Egypt .
In the history of Islam , there are letters of Imam Ali and the Holy Quran that refer to the significance of supervision . Some of the letters of Imam Ali to Maalik al- Ashtar as the governor of Egypt is as follow :
تُوَلِّهِمْ مُحَابَاةً وأَثَرَةًاً، فَإِنَّهُمَا جِمَاعٌ مِنْ شُعَب ثُمَّ انْظُرْ فِي أُمُورِ عُمَّالِكَ، فَاسْتَعْمِلْهُمُ اخْتِبَاراً وَلاَ ِ الْجَوْرِ وَالْخِيَانَةِ وَتوَخَّاً مِنْهُمْ أَهْلَ التَّجْرِبَةِ وَالْحَيَاءِ، مِنْ أَهْلِ الْبُيُوتَاتِ الصَّالِحَةِ والقدم فِي الاِِْسْلاَمِ الْمُتَقَدِّمَةِ، فَإِنَّهُمْ أَكْرَمُ أَخْلاَقاً، وَأَصَحُّ أَعْرَاضاً، وَأَقَلُّ فِي الْمَطَامِعِ إِشْرَافاً، وَأَبْلَغُ فِي عَوَاقِبِ الاَُْمُورِ نَظَراً.
Then consider affairs of your officials .Regarding their positions , appoint each to his post after testing , not out of carelessness or self – interest and favoritism . Otherwise , grounds for tyranny and dishonesty would be established . Among them , select those who are qualified and dignified , descendants of virtuous families who had been pioneers in Islam and who are of high manners , nobler , and chaste and who would invariably have in mind the end of their deeds rather than being victimized by greed and immediate gains . 6
ثُمَّ أَسْبِغْ عَلَيْهِمُ الاََْرْزَاقَ فَإِنَّ ذلِكَ قُوَّةٌ لَهُم ْ عَلَى اسْتِصْلاَحِ أَنْفُسِهِمْ، وَغِنىً لَهُمْ عَنْ تَنَاوُلِ مَا تَحْتَ أَيْدِيهِمْ، وَحُجَّةٌ عَلَيْهِمْ إِنْ خَالَفُوا أَمْرَكَ أَوْ ثَلَمُوا أَمَانَتَكَ . ثُمَّ تَفَقَّدْ أَعْمَالَهُمْ، وَابْعَثِ الْعُيُونَ مِنْ أَهْلِ الصِّدْقِ وَالوَفَاء ِ عَلَيْهِمْ، فَإِنَّ تَعَاهُدَكَ فِي السِّرّ لاَُِمُورِهِمْ حَدْوَةٌ لَهُمْ عَلَى اسْتِعْمَال ِ الاََْمَانَةِ، وَالرِّفْقِ بِالرَّعِيَّةِ.
Also , allow them an abundance of livelihood , as this would enable them to mature themselves , keep them from misappropriating what they have at their disposal ( the public property or funds of the Moslems entrusted to them ) and would constitute an argument against their possible dishonesty or disobedience admitting of no excuse . In addition , keep checking their activities by appointing honest and faithful but disguised inspectors; for your secret supervision of their performance would be a motivation for their trustworthiness as well as their fair treatment of the people .
ثُمَّ أُمُورٌ مِنْ أُمُورِكَ لاَ بُدَّ لَكَ مِنْ مُبَاشَرَتِهَا: مِنْهَا إِجَابَةُ عُمَّالِكَ بِمَا يَعْيَا عَنْهُ كُتَّابُكَ .
Also there are certain matters that inevitably call for your own direct action . A case in point is replying to the executives when it is not within powers of your secretaries .
Imam Ali (a) had entrusted to Munzir bin Jarud Abdi something which he misappropriated. Thereupon Imam Ali (a) wrote the following letter to Him :
فَإِذَا أَنْتَ فِيَما رُقِّيَ إِلَي َّعَنْكَ لاَتَدَعُ لِهَوَاكَ انْقِيَاداً، وَلاَ تُبْقِي لاَِخِرَتِكَ عَتَاداً تَعْمُرُ دُنْيَاكَ بَخَرَابِ …
آخِرَتِكَ، وَتَصِلُ عَشِيرَتَكَ بِقَطِيعَة ِدِينِكَ
But all of a sudden I received about you news which confirms the fact that you do not check and control your inordinate desires, that you do not attach any importance to your life after death and you want to adorn and beautify you life at the cost of your salvation and that you are forsaking your religion to provide for your relatives .
When Mu'awiya came to power, he started corresponding secretly with Ziyad, inviting him to leave the side of Imam Ali (a) and to join him, offering him the bribe of being declared the son of Abu Sufyan. When Imam Ali (a) came to know of these secret messages he wrote the following letter to Ziyad :
7
وَقَدْ عَرَفْتُ أَنَّ مُعَاويَةَ كَتَبَ إِلَيْكَ يَسْتَزِلُّ لُبَّكَ وَيَسْتَفِل ُّغَرْبَكَ فاحْذَرْهُ، فَإِنَّمَا هُوَ الشَّيْطَانُ
I am given to understand that Mu'awiya has been corresponding with you. Beware, he wants to make a fool of you, to blunt your intelligence and to harm your self-respect. Remember that it is Satan which will attack an imprudent and incautious Muslim from behind and from right and left so that finding him unwary and unwatchful, it may overpower him and may enslave his reasoning.
– Also , he wrote a letter to the one of his governors :
فَقَدْ بَلَغَنِي عَنْكَ أَمْرٌ، إِنْ كُنْتَ فَعَلْتَهُ فَقَدْ أَسْخَطْتَ رَبَّكَ، وَعَصَيْتَ إِمَامَكَ، وَأَخْزَيْتَ أَمَانَتَكَ
I have been given to understand that you have taken possession of State-lands and that you have not only brought them under personal use but you have misappropriated State treasury also.
Also, Imam Ali advised his governors to select the honest and truthful supervisors for control their activities :
ثم لاتدع مع ذلك تفقد اعمالهم و بعثه العيون عليهم من اهل الامانه و الصدق فان ذلك يزيدهم جداًفي العماره و رفقا في الرعيه وكفا عن الظلم وتحفظاً من الاعوان .
Do not forget the assessment of affairs and sending the honesty and trustworthy supervisors there because the supervision leads to habitable state and compromising with people , avoiding from cruelty and taking care of companies .
Chapter Al- Imran
كنتم خيرامه اخرجت للنا س تامرون بالمعروف و تنهون عن المنكروتومنون با لله ولوآمن اهل الكتاب لكان خير الهم منهم المومنون واكثرهم الفاسقون (110)
You are the best people raised for the good of mankind; you enjoin good and forbid evil and believe in ALLAH. And if the People of the Book had believed, it would have, surely, been better for them. Some of them are believers, but most of them are transgressors (110) .
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Chapter Al- Taubah
والمومنون والمومنات بعضهم اوليائ بعض يامرون بالمعروف و ينهون عن المنكرويقيمون الصلاه و يوتون الزكاه و يطيعون الله ورسوله اوليك سير حمهم الله عزيز حكيم(71). ان الله
And the believers, men and women, are friends of another. They enjoined good and forbid evil and observe Prayer and pay the Zakaat and obey ALLAH and HIS Messenger. It is these on whom ALLAH will have mercy. Surely, ALLAH is Mighty and Wise ( 71 ).
اينايبون العابدون الحامدون السايحون الراكعون الساجدون الامرون بالمعروف والناهون عن لمنكر و الحافظون لحدود الله و بشر المومنين (112)
Those who turn to ALLAH in repentance, who worship HIM, who praise HIM, who go about in the land serving HIM, who bow down to HIM, who prostrate themselves in Prayer, who enjoin good and forbid evil, and who observe the limits set by ALLAH. And give glad tidings to those who believe (112).
Chapter Al-Tahrim
ياايهاالذين آمنواقواانفسكم و اهليكم ناراًوقودها الناس و الحجاره عليها ملايكه غلاظ شداد لايعصون الله ما امرهم و يفعلون ما يومرون(6).
O ye who believe ! Save yourselves and your families from a Fire whose fuel is men and stones over which are appointed angels, stern and severe, who disobey not ALLAH in what HE commands them and do as they are commanded (6).
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Chapter Al-Hajj
الذين ان مكناهم في الارض اقاموا الصلاه وآتوا الزكاه وامروا بالمعروف و نهوا عن المنكرولله عاقبه الامور(41).
If we give them power in the earth, they will observe Prayer and pay the Zakat and enjoin good and forbid evil. And ALLAH rests the final issue of all affairs (41).
As discussed above , we get a result that the supervision is an value in all periods and its aim is well done of the regulations and indeed its ending lead to the efficiency and effectiveness of parts ( functional objectives ).
Setting the permanent , apparent and on time process of all financial and managing information ( informational objectives ) .
Adopting the processes and functions with related regulations and rules
( compliance objectives)
Reducing of misbehaviors and infractions ( preventive objectives)
So , the supervision is one of the effective factors on misconduct ions and infractions that it is more important than other factors such as managing , natural factors ,genetics factors ,cultural ,economy and socially , regulations and rules that the objective of this paper is to outline the discussion only about "supervision and internal control " and its role in reducing of infraction .
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Terminology of Supervision :
The definition of Supervision in Almajam- maghabis loghah is " look into things and consider the matters" .
Some believe that the non Arab use the vocabulary of supervision and its meaning is "to clean the garden". Therefore, the supervision is taking care and controlling the something from plague and disease .
In the Larous and Almonjed dictionary , the meaning of supervision in Arabic is cleverness and in Amid Persian dictionary is look into and view and in management science is gathering the information in order to effectiveness the management and to be assumed one of the main duty of manager .In view of idiom , the supervision is activity that compare "must "with" exists" , "desires "with "existence" and "forecasts" with" functions" conclusion of this comparing ,is so clear from similarity or differences between these two groups of factors that is available to managers of organization .
There are different definitions of supervision and control that in all there is one same point ,and it is" comparing between things that exist and things that must be present ". some authors of management science define "supervision ":
"It is the assessment and test out the function to make sure to do successfully objectives of organization and conducting its plans ".
" Supervision refers to observation and permanent consideration in order to control and leading the activities of parts , organizations ,and sub units to carry out the sound policies ,plans notified programs ".
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Significance of supervision
The most significance foundation of any system and sound and efficient collection , existence of a complete system and accurate supervision .Definitely ,existence of the supervision does not mean non confidence to staff , but in short we can say " confidence in organization is good , but supervision is essential ".Also , there are no differences between them , as supervision does not mean for search to get the weak points and infractions of staffs , but follow the strong points and abilities of staffs , because understanding and strengthening the positive points and talents and potential abilities of staffs , have important role for increasing the efficiency of any organization .All people excluding the prophets , make the mistakes .For this reason ,doing the different duties people make mistakes. Furthermore , disability , ignorance and partiality are got people into troubles.
Thing that can inform people from making mistakes , wrongdoing and change the weak points to the strong points , ignorance to awareness and prevent the bias is supervision "the good people", "sympathetic and awaring of people s duties " .
As a result , significance of supervision is disclaiming and if it applies carefully and thoroughly ,will make clear the effectiveness and significance of supervision .
"Supervision " is very important for organizations to assist the management and to direct the prevention for mistakes and bias .
"In management, there is not any good result without discipline and supervision , and if some conduct things willfully , by excellent leaders and managers, it will confuse some affairs" .
One of the main tasks of management is the supervision and control . Supervision is very important because it leads to matching the main planning , directing and agreements .
Thus , in conducting plans , it is essential to understand the talents of staffs and we can to be successful for matching the criteria with sound talents .
Matching and relations between duties , policy of organization and their talents are very important that without them is lead to weaken or fail the organization . For this reason , it is clear that strengthening or weakening of any organization depends on attitude and using for all periods .
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It is considered that applying encouragement and punishment should be set with states of programs and activities and characteristics of the organizational objectives after examining results of supervision and control and paying attention to the reality of talents in the organization.
Basically, in the organizations that there is no system of supervision and review, or without any supervision and control, accordingly planning and programs are failed.
If there is no supervision, there is no meaning for duties and obligations.
It is obvious that objectives of supervision and control are to ensure the corresponding between the results of operations and objectives of organization that has estimated in programming.
In formatting procedure of an organization and moving to the certain objectives, it will encounter to different barriers and these barriers cause the deviation of organization to unexpected ways and sometimes they may stop its working.
Accepting this reality is clarified that existence of the controlling system based on specific standards guarantees objectives of the organization.
Also, any organization in its developing procedures needs to understanding talents and the potential possibilities. Whereas the organization can point out all characteristics that the first , in the determination of criteria and policies provides the realities and facts , and the next for matching the certain criteria and standards with talents in order to specify the main and basic ways and using it very well .
Supervision in aspect of religious leaders
a) The Holy Prophet of Islam in his government in Medina has taken consideration to the Supervision and in the necessary cases he has used supervisors, because the good leadership for any society is needed the information and awareness of all things that has occurred in that society.
كان رسول الله (ص) اذا بعث جيشاً فامهم اميربعث معه من ثقاته من يتجسس له خبره
When the Holy Prophet of Islam sent the army and the commander was responsible of it, so he appointed the one of his trustful companions to the commander in order to report affairs to the Prophet.
It indicates that the Holy Prophet of Islam considered the people in organization very carefully, even selected the special persons that it is a sign of the importance of this matter in Islam and Islamic government.
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b) Studying some letters of Imam Ali in Nahjul balagha to governors and agents indicates that he takes consideration to the Supervision and selects the supervisor for any governor in order to report the duties. So, pay attention to some letters:
1-Imam Ali wrote the letter to Munzir bin Jarud Abdi:
فَإِذَا أَنْتَ فِيَما رُقِّيَ إِلَي َّعَنْكَ لاَتَدَعُ لِهَوَاكَ انْقِيَاداً، وَلاَ تُبْقِي لاَِخِرَتِكَ عَتَاداً تَعْمُرُ دُنْيَاكَ بَخَرَابِ …
آخِرَتِكَ، وَتَصِلُ عَشِيرَتَكَ بِقَطِيعَة ِدِينِكَ
But all of a sudden I received about you news which confirms the fact that you do not check and control your inordinate desires, that you do not attach any importance to your life after death and you want to adorn and beautify you life at the cost of your salvation and that you are forsaking your religion to provide for your relatives.
2- When Mu'awiya came to power, he started corresponding secretly with Ziyad, inviting him to leave the side of Imam Ali (a) and to join him, offering him the bribe of being declared the son of Abu Sufyan. When Imam Ali (a) came to know of these secret messages he wrote the following letter to Ziyad.
وَقَدْ عَرَفْتُ أَنَّ مُعَاويَةَ كَتَبَ إِلَيْكَ يَسْتَزِلُّ لُبَّكَ وَيَسْتَفِل ُّغَرْبَكَ فاحْذَرْهُ، فَإِنَّمَا هُوَ الشَّيْطَانُ
I am given to understand that Mu'awiya has been corresponding with you. Beware; he wants to make a fool of you, to blunt your intelligence and to harm your self-respect. Remember that it is Satan which will attack an imprudent and incautious Muslim from behind and from right and left so that finding him unwary and unwatchful; it may overpower him and may enslave his reasoning.
3 – Also, he wrote a letter to the one of his governors:
فَقَدْ بَلَغَنِي عَنْكَ أَمْرٌ، إِنْ كُنْتَ فَعَلْتَهُ فَقَدْ أَسْخَطْتَ رَبَّكَ، وَعَصَيْتَ إِمَامَكَ، وَأَخْزَيْتَ أَمَانَتَكَ
I have been given to understand that you have taken possession of State-lands and that you have not only brought them under personal use but you have misappropriated State treasury also.
Also, Imam Ali advised his governors to select the honest and truthful supervisors for control their activities: 14
ثم لاتدع مع ذلك تفقد اعمالهم و بعثه العيون عليهم من اهل الامانه و الصدق فان ذلك يزيدهم جداًفي العماره و رفقا في الرعيه وكفا عن الظلم وتحفظاً من الاعوان .
Do not forget the assessment of affairs and sending the honesty and trustworthy supervisors there because the supervision leads to habitable state and compromising with people, avoiding from cruelty and taking care of companies.
Imam Ali wrote to Maalik al- Ashtar : o Maalik , seek out in affairs of employees and appoint the eyes as inspector and supervisor that they are two characteristics of honesty and loyalty ,because their hidden inspection of affairs leads to treat them lovely .
Thereupon , in Imam Ali s speech , there are some main points about " control and supervision " :
-Necessary to seek out and supervise affairs of employees
-Indirect supervision and selection of inspector and supervisor
- having two characteristics of honesty and loyalty for inspectors and supervisors
- conducting the hidden inspection in order to keep the reputation of people
- the effectiveness of supervision and inspection that amendments of treatment compliance with plans
Imam Ali gave importance the supervision and inspection of the deeds and treatments of relatives to regime and its authorities and that letter wrote to Maalik al- Ashtar again :
Take care of your near cooperators and if one of them has been disloyal and confirms the reports of your inspectors , this certification is enough , punishes him and takes all properties , then contemns him and called him disloyal .
Due to the speech of Imam Ali , it is obvious that governor should pay more attention to his cooperators and companions and should consider all their deeds and treatments and if they do any things wrong , he encounters to them .
In another way , in addition to supervision for deeds and treatments of staffs , supervision for the situations of their living is duty of the governor and wrote to Maalik al- Ashtar :
" O Maalik , among your loyal companions select who is humble and fears from God that he supervises the weaken living and reports their affairs . "
This feature is unique and belongs to the Alavi management that governor or manager is not only supervision of organization affairs and department of staffs but also, he should be aware of the living situations of his staffs and in necessary case , he helps them and solves their problem . 15
Ibn e Abi Alhadid said : " Imam Ali struggle more in this matter and had the place called " Beytol ghesas " that people bring their complaints , requirements and letters there , so Imam solved their problems .
In Islamic management , the supervision is not only from upper level to lower level , but also people must supervise affairs of the governor and manager and evaluate his functions , so Imam commanded to one of his governor in the letter : " but then , select the substitution for affairs and send a group of your friends to Iraq , so ask about affairs place to place and supervise the treatment and action of governor . "
Scope of supervision
Maybe, there is a mistake about supervision that it is a kind of investigation and according to the Holy Islamic religious Law , it is forbidden , due to Holy verse :
" ولاتجسسوا " Do not investigate in "subjects affairs ".
We should explain that supervision is organizational or governmental subject , but investigation that is forbidden in the Holy religious Law is private subject , for this reason if the government supervise about its agents or a organization to staffs and personals that moves to accurate aims , implement the regulations accurately, in their the right place, is not opposite of the Holy religious Law and is not forbidden . Of course , maybe that it is interpret the supervision to investigation or called secretary that it is reason of irresponsibility of curiosity in the private affairs of subjects .
Islam does not permit the subjects to interfere to the other private affairs of subjects and command all to hide the indirect wrongdoings , so Imam Ali advised to Maalik al- Ashtar :
" وليكن ابعد رعيتك منك و اشنوهم عندك اطلبهم لمعايب الناس فان في الناس عيبا الوالي احق من سترها فلا تكشفن عما غاب عنك منها "
The most contemptible and the most avoided person in your view should be one who overtakes others in finding fault with people , for people do have frailties to cover which against those who would take advantage , no one is more qualified than the ruler .Do not try to uncover the faults hidden from you as your duty consists only in rectifying the faults which have been revealed to you .
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As you get, Imam Ali avoided people to be inquisitive of others and advised them to cover others faults , however , in other part of this letter ordered to Maalik al- Ashtar to appoint the inspector for governors. Thereupon , the Holy Quran avoided subjects to be inquisitive of private affairs and hidden faults of others that related to themselves or private relations with others , but investigation in public affairs is not only forbidden , but also sometimes is necessary ,a director should do all his duties correctly and inquisition in this part is important , even the private characteristics of directors should be supervised and inspected .
Of course, supervisors should pay attention to their affairs carefully ,until they don't make a mistake and disobey the regulations and rules of their responsibilities unless in certain situation that related organization or society is in danger, since consideration and recognition of legal and illegal area is very important , so in selecting and training of inspectors should be done very carefully and in this case, we can make use of supervision situations in the beginning of the letter of Imam Ali .
Kinds of supervision
* OPEN SUPERVISION :
A supervisor can conduct this supervision by some ways ;
- He directly gets the strong and weakened points by inspection and supervision of the range of his responsibility .
- getting report by staffs , and agents and consider them
- appointing the real inspectors or setting the organizations and they can be searched and inspected in doing affairs and reported to director of organization .
Open supervision by three above processes , has provided the control of the director of organization to affairs and caused his awareness to the strong and weakened points of organization , also caused the progress and development in affairs . Although , in this kind of supervision it is possible that some staffs make the mistakes and do their duties flattery and inaccurately , thereupon the open supervision is not sufficient that there is supervision called " Hidden Supervision ".
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* HIDDEN SUPERVISION :
This kind of supervision may conduct by appointing the hidden supervisor or getting the complaints and reports of people that we explain any of them shortly .
1- Appointing the hidden inspector : that can control of deeds of agents in the different forms and can distinguish active , careless and disloyal people and report about them . In this case , Imam Ali ordered to Maalik al- Ashtar :
" ثم تفقد اعمالهم و ابعث العيون من اهل الصدق والوفا عليهم "
Then , take care of their affairs and appoint the true and faithful secretaries .
By studying of history and letters of Imam Ali to governors , we can find that Imam Ali himself had this treatment to his agents and appointed hidden inspectors that they reported the adequate information .
2- Receiving the complaints and reports of people : it is accurate approach to control of agents because they knew that if they violated to the people rights or avoided to consideration of their affairs , so they reflected to top management , explained them and the top management
Considered the matter carefully and if they are right , top management did appropriately , so did not oppress to others .
When Imam Ali sent the army to do its responsibilities , he informed to the people that followed that army :
" و انا بين اظهر الجيش فارفعوا الي مظالمكم و ما عراكم مما يغلبكم من امرهم ولا تطيقون دفعه الا بالله و بي فانا اغيره بمعونه الله ان شاالله ."
I am in the back of army , so if you have the complaint , give me and whatever you get , exception God and me , nobody can not solve problems , so explain me until I will change it by supporting God , if he wants.
Imam Ali in the letter of Maalik al- Ashtar advised about investigation to
Complaints of people that arranges the meeting for all people :
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" واجعل لدوي الحاجات منك قسماً تفرع لهم فيه شخصك و تجلس لهم مجلساً عاماً فتتوا ضع فيه لله الذي خلفك و تفعد عنهم جندك واعوانك من احراسك وشرطك حتي يكلمك متكلمهم غير متتعتع ."
Spare part of your time and energy for those who have grievances, listening to them in public meetings , and for the sake of Allah , who brought you to existence , treat them humbly , keeping away from them your soldiers , henchmen guards , and the police so that if any of them has something to say may speak to you without fear and anxiety .
This is a sample of investigation of complaints of people ;
Soudeh , daughter of Amareh Hamedaniyeh , after the martyrdom of Imam Ali visited Mu' awiya to explain the complaint .
First, Mu' awiya blamed her that why she had rebelled people against him, then he asked ? What do you want ? Soudeh explained her complaint from Basar Ibn Ertah and at last said if you remove him , I will say thank you , otherwise we will not obey you . Mu' awiya said : Soudeh , do you threat me to my tribe ? I have decided that you are ridded to the camel and send to " BOSR" until whatever he wants to treat with you.
Soudeh thought shortly then read these poems .
صلي الا له علي روح تضمنها
قبرحالف الحق لا يبغي به بدلاً
فصاربالحق والايمان مقروناً
Peace be upon Him to the soul that has hidden Justice , indeed He has corporation to right and there is no substitution for Him , so there is a relation between the right and the faith .
Mu' awiya said : o Soudeh , who is he ?
She answered : He is Ali ebne Abitaleb .I complained to Imam Ali about a person who is responsible for collecting charities and he is cruel and I came to Imam Ali , he prayed God , so when he saw me , he finished it , then kindly asked me : what do you have problem ? I answered : " yes " , and explained the matter . He cried tears and said O lord , you know that I do not have ordered to be oppressive for people , so wrote the letter :
" In the name of God , when you read my letter , keep your affairs that you are responsible for them until the other comes and delivers your affairs , and the end " .
He gave me that letter without any covers , and I gave it to the person who is responsible for collecting charities . Thereupon , he withdrew and we became free of his oppression . 19
When Mu' awiya saw the condition , so he attracted the satisfaction of Soudeh .
DIRECT SUPERVISION
In this kind , supervision has been conducted without intermediary, for example the supervision of director for staffs .
INDIRECT SUPERVISION
In this kind , supervision has been conducted with intermediary, for example the supervision of governors and even the supervision of God by angels .
GENERAL AND SPECIFIC SUPERVISION
On the whole , there are two kinds of supervision : General supervision and Specific supervision .
General supervision is the outside care for all communities , but the Specific supervision is conducted by" particular unit "and " particular subjects " are responsible for it .
In General supervision , function of the governors is not hidden by people and if there was possible to limit the information of people in the past , but now there is no limitation , because of the worldwide network of information and the sensitivity of people to function of the governors , therefore they can analyze the matters better .
Imam Ali reminded to Maalik al-Ashtar :
" People think about your doing , in the same way , you think about functions of prior governors and they say about you whatever you say about them " .
According to above-mentioned speech , the professor Mohammad taghi Jafari said " this speech refers to " natural rule " that deeds of people reflect their thoughts ."
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Approaches of Supervision :
Regarding the investigation of Supervision as other social events , there are some special approaches by reviewing the records and scientific researches , we have appointed some approaches as follow :
Inspection : the regular and certain consideration on base the legal mission of organization to identify different items , change the current situation and excellent situation , evaluate their importance , recommend
In order to improve affairs , omit deficiencies , get better the treatment and function of organizations and staffs and follow the suggestions till their results .
Auditing : the scientific process and regular collection and impartial evaluation about claims to activities and events in order to compliance these claims with prior criteria then report the results to them .
Examination : the results consideration and investigation of upper level of organization to lower level .
Observation : research and investigation through going to that place and evaluate data with events .
Correspondence : to get information by letter writing for supervision .
Inquiry : investigation of information and supervisory data by the presence discussion with main matters .
Systematic : to study the statistics data in order to recognize the deviations of organization that it is one of the approaches of supervision and recently is used .
Supervisory Tools :
Humane ; The sense of seeing
The sense of hearing
The sense of touching 21
Inhumane ; The computer systems
Laser
Deductive measurement means
We will explain more about supervisory means later .
Procedures of supervision and control:
The responsible of supervision is that director supervises all process of functions at first , middle and end ( past, now , future ) .
The policy of Islamic system for managing communities is based on prevention , not treatment , because prevention is more important .
Process of supervision is divided to :
n To identify the items
n To collect the information , statistics and measure the function
n To compare the function with standards and identify deviation
1- Identify the items , measures and standards
Standards or measures of the function are measurable , in fact the matters are supervised their consideration and do results of function and operations comply with standards and expected measures .
In identification of Standards and measures , the organizational objectives are measurable shortly , because objectives are described generally and they are not measurable , therefore supervision becomes difficult .
So , the general objectives should divide into detail objectives and in form of numbers till we can evaluate them during supervision .
2 - Collect the information , statistics and measure the function
To measure the function of an organization is the second step of control process , if we do not pass the step of " measure the function " correctly , we can not get the step of " evaluation of function " , whereas if we want to consider this matter seriously , first of all we should measure the function of a person or organizational unit and then compare results with standards ,therefore get the evaluation .
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There are three main points in the measure the function , if you do not pay attention to them , they will cause to the wrong measurements , incorrect evaluations and bad effect for staffs . Indeed , we have excellent programs and appropriate standards , but during programs because of ignorance of three main points in the measure the function , we make the mistakes and finally we will provide and report the incorrect evaluations .Therefore , we may report the weaken affairs in form of excellent or accurate affairs in form of wrong and incorrect . So, these evaluations and reports have very bad effects for staffs .
In the measurements , should pay attention to following points :
1- What do you want to measure . ( subject)
2- How should you measure ( method )
3- When should you measure ( time )
In planning process , it should be determined the short and long aims obviously and according to the certain aims in the programs of an organization we can get indirectly that what we should measure.
Therefore , the system of control should measure and evaluate the main points that has the most results for organization and the main points that have the major role in correct conducting the functions and continuing the accurate programs of the different organization so, we called them
"Strategic points"
Some example of the strategic points of an organization :
n Centers that they have the most abilities and capacities of the organization .
n Centers that they have the main role in the aims of organization .
n Sensitive centers that they cause to the problems and difficulties .
n Centers that they are very important for the future of the organization.
The system of control should supervise all areas that they are important to directors and all matters that they are because of the standards programs should measure and evaluate .
In the matter of how to evaluate the affairs , we should consider the following items :
First , do all affairs and their results evaluate completely or not ?
The evaluation of all affairs should conduct entirely then we can judge , otherwise , the evaluation of wrong measurement causes to false evaluation .Meanwhile , it is very important in measurement affairs and functions if we pay attention to some aspects of affairs and ignore some other aspects they may cause problem in the spirit of staffs of organization and aspects that they don't measure and don't evaluate for directors are not important . 23
Second , are the measurement of affairs objective or subjective ?
In some cases , the measurements are subjective and away from the reality , sometimes in the large group with its sample and measurement of the function that sample in aspect of quality and quantity by observation and measurement of the function of someone from this sample cause to judge . While someone are not the sample of whole society of measurement .So, in some case we measure affairs and in another case we
only pay attention to sample of a large group .
Third, the time of evaluation ; in some system of control , it can measure the function of organization during conducting the programs . Purpose of this measurement is the getting information that it leads to clarify problems and giving them to staffs or computers then they can modify their treatments and functions.
In some systems , the measurement is conducted after operations and it is in cases that they have many processes of operations and it is conducting stage by stage . Therefore the first stage should complete then the satisfaction of affairs should be measured .If the first stage is done successfully then we can go to the next stage.
Of course , there are many situations that they are impossible to measure
the functions before and after completion , because :
- The function is done in the short time and we don't have any time to get
information .
- The time of function is very short and there is no time for modifying affairs before their completion .
3 – To compare the function with criteria and determine the deviation ;
In supervision process , we should compare the information related to real functions and conductive operations with standards and criteria .The comparison between the real information with standards and criteria
Should be obvious and be easy for making decisions .
In getting the information and comparing them with standards
We use the tables that they are easy for directors for their comparisons , also preparing the reports for studying and analysis are not difficult .
If there are many numbers , it should be better to use the computer .
4 –considering and modifying actions;
After the comparison between the function or real operations and standards , if their results are correct and function comply with standards, in this case , it is not necessary any action to take and we should find their reasons then solve them. 24
Of course, the main purpose of the effective system of supervision
avoids any mistakes and complying functions and operations with
programs and certain aims , it is possible to do not comply the real
functions or conductive operations with standards and programs .
If there are any modifications , the supervisory system should
be ineffective and it has not any good result .Whereas there are many
differences between results and estimate programs , it is better to review
programs and purposes , because there is no pay attention to
references and programs , therefore it is necessary to modify the actions
and correct the deviations .
Responsibilities and Purposes
The purpose of supervision is " to conduct the accurate rules " that it
causes to following results :
- Increasing the efficiency and the effectiveness of operations of units
- Setting the continuing process , clearly and timely from all financial and managing information
- Compliance the processes and operations with regulations and rules
- Decreasing in wrongdoings
So the ultimate aim is to find the causes to solve the problems otherwise the proper people would be replaced and contaminated for the same reasons and constantly the shaped causes stays in the society forever.
The Obstacles of Supervision Effect:
These obstacles can be divided to following parts:
Interior Obstacles:
Egocentricity – secularism – vengefulness – subjectivity – group interests – Political trend
Exterior Obstacles:
Structural – legal – conductive – (Extreme – incorporate supervision – inability in control variety) political and social
Interior Obstacles:
These obstacles having roots in selfishness can be seen in both supervisor and subjects. 25
The high point of the selfishness is Egocentricity in which one sees himself the center of everything and compares all things with his interest and considers others' interest subordinate.
He escapes from criticism of his faults and deficiencies because he sees the supervision as a device to reveal his faults. Therefore he cannot accept supervision and tries to escape it as much as he can.
He ridicules everything that opposes his power. Spread corruption and considers him appropriate. And when they are told not do any wrongdoings they reply that they only wish to correct everything. And be aware that these are the wrongdoers but they do not realize it.
Even the supervisor can be entangled in his carnal desires and tries to take revenge not to criticize. He envies and can see anybody better than himself. He always finds mistakes and speaks behind others back and searches everything and struggle to take out the rivals. He wants everything for himself and doesn’t want to change and correct anything.
Exterior Obstacles:
1- Structural Obstacles
There is the supervision in both upper level and lower level that many organizations such as the inspection organization of the judicial power and auditing organization are considered as supervisory structures, but sometimes there are ambiguous .
2- Legal Obstacles
However, the law should be obvious , otherwise, there is conflict between supervisor and subjects .
3 – Conductive Obstacles
In some cases, if there are not the structural and legal problems, we have conductive problems and their reasons are mismanagement and inefficiency .
- The extreme control :
The extreme control imposes the extreme regulations on activities and conductive duties of subjects and threat their freedom , the extreme control is result of the weak regulations for conductive activity and leads to extreme freedom . Both of them are dangerous and more control is obstacle of new actions and causes to the spirit problems , guides the organization to more prestige and slowly decisions . 26
The less control can damage to internal coordination and leads to the extreme usage of reference or its misusage .
The main principle is to find the accurate balance between controls to support the function of organization .
- uncoordinated supervisions :
If the systems of control have been designed inaccurately , it may send the wrong messages to staffs . Directors should provide the systems of control and encouraging of right behaviors in staffs leads to success the organization in the long time . For example , if subjects want spend their times for future plans , but keeping the fix salary , so the certain stiff continues his process of getting his salary in conductive affairs without thinking .
- Inability in variety controls :
Strategies of control , often reflexes the structure of organization for example ; for example a centre organization has a system of unit control that it determines collections of the same standards to conduct in parts and units . Some organization in different parts of country has different systems of control . Thereupon , the system of control is not coordinate to the system of payment .
- Imposing supervision instead of the supervision on him :
It is true that we can not depend on the supervision , because staffs remove the supervision by omission , transfer the result with law quality . One of the main problems of formal supervisions is to lead the terrible reactions and causes the following items :
1 – Inflexible formal behavior :
In this behavior , the staff poses him in system of supervision . They struggle to forget the main purposes of organization .
2 – Strategic behavior :
In this behavior , subjects provide the information in the certain time .
3 – Report of invalid information :
Sometimes , subjects weaken the system through incorrect and invalid information . All mentioned matters , the whole characteristics are ineffective and incorrect and its reason is mismanagement in supervision and it is dangerous . So, we should train supervisors and substitute the " supervision of management " with " management of supervisory " . 27
- Political – social obstacles :
Mr. Amid Zanjani believes that there are three interpretations in the
political dictionary and they have explained in supervision ; setting
interest , group interest and political trend that they are in management
and supervision level .If there is a problem in supervision , it should be in
all supervisions and it is need to omit the supervision from the
management . Thereupon , we consider the following factors :
1- Setting interest :
All people have different interests and different interests depend on way and we can see this matter in the purpose . When a supervisor does not satisfy a method , so he gives to the subject the negative mark . However,
The supervisor should take care of any interests . To be " impartial " is very difficult , because we have no impartial person like a judge that he judges in the sport competition and if he is impartial , it is possible but it makes problem.
2- Group Interest
It is not clear what the purpose of the group interest or legal interest is. Maybe the purpose is associate interest which is in opposed of the personal interest mentioned above. In investors, businesspeople, educational groups, is it the purpose or is this the cultural structure that anyone who joins a group makes it the axel and talks about it and explains all the regulations in favor of the position he has and gives credits to the same place. Even when he is moved to another section, he takes all the characteristics to the new section. This is a positive judgment that everyone wishes to develop and expand the productivity of the section he is working in and the negative judgment, expansion of the group orientated opinions in the modern organization. Therefore he claims more for one section which has been referred to as section-oriented view.
3- Political Trend
This factor or obstacle is like the others is inevitable and one cannot be without it. At the end one is fitted in one side. Of course there is no mention of the sides. There are many sides and subsides in a big one.
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Like west parties which have different sides or parties within themselves which during election period surface and show up. When the supervision group is chosen from a political group, the view becomes one sided.
To eliminate the rivals or blacken their position, this trend even in their judgment gets interfered because supervision and judging finally come from same root and supervision hides judgment and vice versa. We have been attacked from these kinds of supervisions.
Factors effecting wrongdoings and deviations:
Management
- oversimplifying the employees’ problems
- unfair work share
- ignoring employees’ performance evaluation
- incomplete and unaware appointment
- discrimination in effecting regulations
- using facilities and situations
- misusing rewarding and punishment tools
- neglecting employees’ educational needs
- reducing informal contact with the employees
Supervision and control
- ignoring minor deviations
- discrimination in striking corruption
- neglecting follow-ups
- sudden and devastating supervision
Environmental Factors
- contacting with the immoral employees
- physical factors, like light, sound pollution…
- factors effective in causing stress
- environmental culture
Genetic factors
- talent
- amputation
Cultural factors
- immoral culture of the environment
- ignoring the orders and regulations
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Economical and social factors
- economical and social poverty
- financial limitation
- comparing one with others subjectively
- ignoring employees’ performance and their income
Laws and regulations
- inflexible laws and regulations
- unattainable and difficult aims
- extremes in effecting the regulations
- combination of subject and supervisor
Usage tools
- omission of systems in computations
- unfair work share
- omission of control system
- shortage of conductive tools
we will explain all mentioned items in the future .
Effects and results of weakness of control and supervision :
The weakness and absent of the control and strong supervision can damage factors of organization and its benefits that this fact does not consider first , but then pay attention to it carefully . It is necessary to set the accurate and efficiency supervisory system for decreasing the sensitivity of directors to avoid the subjects like dissatisfactory of customers , delaying in repayment of claims , exposing the classified information , bribery , embezzlement , weakness of democracy , reducing the progress times for Iranian , increasing expenses of life and etc that they cause to damage the interests of organization .
Supervision in banks
احل الله البيع و حرم الربا
God has said that Business is lawful and usury is unlawful.
The banking regulations in Islamic Republic of Iran is based on legal article with certifying agents of parliament and keeping council . If banks do anything complying with law , so loan and deposits of customers are not lawful , but unfortunately some of banking directors act in spite of law and customers that they do not know anything about it . Thereupon loan and deposits are unlawful . 30
Meanwhile , banks as one of the active economic agencies in the society provide the different financial services to customers .
Therefore, directors of banks should sure to get profits and the simple process of providing services to customers and identifying the deviations , mistakes of the external organization to avoid the errors in current process of activity of organization and finally entering the damage to the benefits of the bank .
Consequently , in order to avoid the unlawful functions of banks , also keeping away from any errors in current process of activity of organization , the supervision should be necessary .
Banking Mistakes Identification
Referring to gained experiences during supervision organization of banking network and learning from the scientific research conducted on expansion and optimizing the supervision approaches in economical agencies in general, and banking system in specific, it can be seen that many factors have effects on organization members which as follows:
Financial Damages:
Every deviated phenomenon in bank investment directly or indirectly effected and led not from malfunction of other organization members. Like waste of properties through conducting criminal and deceitful proceedings.
Cultural and environmental Damages:
It is the inflexibility of organization cultural characteristic with present condition and ignoring environmental factors effective on the organization in frame of which the organization has been attending to and wishfully or unrightfully has affected the members of the organization. Not paying attention to the conditions of the country administrative system or worldwide society and ignoring the constant and present changes or preventing of informing in time and concealing the deviations in the name of the warnings supervisions.
Human Damages:
Ignoring the personal and individual characteristics of the employees and demotivating of their work without paying attention to the importance of the human resources role in reaching the organization goals. 31
On of these damages could be ignoring the appointing people appropriately and discrimination in giving rewards to them.
Setting goals Damages:
The organization in the procedure of the evolution needs to determine a program and supply appropriate tools to reach the set goals.
So preparing unreal goals and unreachable without considering the tools, economical, environmental and geographical conditions are the damages.
Legalization Damages:
The effect of the laws and regulation and the procedures on the current situation and gaining the organization aims is clear and always has been stressed by the damage sociologists. In this respect we can refer to the complexity, multidimensional, ambiguous laws and many changes occurring in them.
Solutions mentioned for strengthening the supervision to reduce deviations
Considering the discussion mentioned to reduce the damages present and making health the environment and preventing the administrative defaults, there is no way but to strengthen organs of the banking network organization, because the body of the conductive organization due to its nature, is unable to identify the damage factors on the members of the organization. Therefore, the members must be very powerful. So considering the available tools there are some suggestions for a short period of time:
1- Establish immediately the supreme committee of supervision with responsibility of one of the assistants of minister of economy and finance affairs and delegates of supreme audit court , auditing organization and general inspection of organization and superior position of the supervisory organization .
2- Promoting the formal position of the banking supervisory organization to the supreme level of organization after board of directors and direct control of senior management .
3-Using tools and the updating facilities to conduct policies of control
4- Setting the relationship in staffs with responsibilities and the size of organization 32
5- Setting the supervision and integrated internal control ( comply with principles of Basel Committee )
6- Providing tools of internal control during service design and processes of the modern banking by use of facilities of professional supervisory units.
7- To decentralize and decrease the distance of operational place of controller with control unit
8- Setting the practical training courses for levels of inspectors and auditors of organization
9 – Strengthening the moral and Islamic and National spirit of inspectors
10 – To manage independently on internal control and supervision units
11 – Setting the bank of internal information and inter banking
12 – The health joint plan ( getting swearing plan from staffs and customers based on legal principals in the relationship with organization )
How to approve and conduct solutions of suggestions :
According the consideration reference, suggestions are divided into two groups as following table ;
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Schedule of conductive suggestions
Suggestions group
Suggestive file
estimated time for conduction
The board of directors are responsible for conduction of these suggestions
- To manage independently on units
of internal control and supervision
- The health joint plan
- To establish the bank of customers information
- Promoting the formal position of the banking supervisory organization to the supreme level of organization after board of directors
- Setting the relationship in staffs with responsibilities & the size of organization
- Setting the supervision and integrated internal control
- Using tools of internal control during service design and processes of the modern banking by use of facilities of professional supervisory units
- To decentralize and decrease the distance of operational place of controller with control unit
Two weeks from date of approving the supervision committee & internal control
Suggestions group
Suggestive file
estimated time for conduction
The committee , interior or exterior organizational
References should consider suggestions
- To establish the supreme supervision committee
- Using tools and the updating facilities to conduct policies of control
- Setting the practical training courses for levels of inspectors and auditors of organization
- Strengthening the moral and Islamic and National spirit of inspectors and auditors
One month from date of approving the supervision committee and internal control
Complementary suggestions
- To conduct appropriately the Anti – Money Laundering regulations in banks
- To strengthen working motivation in staffs ad setting the special work for inspectors and auditors
- To privatize the audit of internal banks
- To privatize the professional training for inspectors and auditors
- To privatize the professional affairs and evaluate the technical , financial and economic descriptions & need to evaluate the credit of customer
- To privatize the evaluation of immovable collateral and machine
One year from date of approving the supervision committee and internal control
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Reference materials
1- The Holy Quran
2- Nahj Al – Balaghah
3- Amid Dictionary
4- Almonjed Dictionary
5- Larose Dictionary
6- Training courses of preparation of the army Islamic guards
7- Collections of questions the delegates unit of the office of the supreme leader in universities
8- Collection of suggestions of banking inspection group in the ministry of economy and assets affairs
9- Description of the negotiations of the reviewing council of the Constitution of Islamic Republic of Iran , page 1266 .
36
Vocabulary
Accountable
مسئول
Act carelessness
سهل انگاری کردن
Agent
نماینده
Agency
ماموریت
Allocation
سهمیه / جیره
Appraisal
ارزیابی ، ارزشیابی ، برآورد
Appropriate
مناسب ،شایسته
Approve
تصویب کردن ، تائید کردن
Argument
گفتگو ، مشاجره
Army
لشکر
Assembly
شورا
Avoid
زنهار
Barrier
مانع
Become acquainted of
آشنا شدن
Board of directors
هیات مدیره
Blame
سرزنش کردن
Carelessness
سهل انگاری
Compromise
مدارا کردن
Confuse
مختل شدن
Confront
روبرو شدن با
Commander
فرمانده
Compliance
تطبیق
Contemn
تحقیرکردن
Contemptible
پست ، خوار ، قابل تحقیر
Contrary
مغایرت
Convention
همایش
Coordinate
هماهنگ کردن
Cover faults
پنهان کردن عیوب
Credibility
قابلیت قبول
Cruel
ظالمانه
Cruelty
ظلم ،ستم
Curiosity
کنجکاوی
Diligent
کوشا
Discharge
اخراج کردن
Discrimination
تبعیض
Discussion
گفتگو ،مذاکره
Disloyal
خیانتکار
Distinguish
تمایزقائل شدن
Divine Law
شرع
Doctrine
اصول
Effectiveness
کارایی
Efficiency
اثربخشی
Egocentricity
خودمحوری
Embezzlement
اختلاس
Envy
حسادت کردن
Establish
تشکیل دادن
Examination
بررسی
Exterior
بیرونی ، خارجی
Flattery
چاپلوسی
Follow up
پیگیری کردن
Foreseen
پیش بینی شده
Frailty
سستی ، ضعف اخلاق
Governor
استاندار، والی
Hide
پوشاندن ، مخفی کردن
Hoard
اندوختن ، احتکار کردن
Humble
فروتن
Humiliate
تحقیرکردن ، اهانت کردن
Judicial power
قوه قضائیه
Ignorance
نادانی ، جهالت
Ignore
چشم پوشی کردن ، صرفنظرکردن
Illegitimate
غیرقانونی ، نامشروع
Immovable
غیرمنقول
Incur
موجب ضرر شدن
Inconsistent with
مغایربا ،متناقض
Infractions
تخلفات
Introduction
مقدمه
Inquiry
پرس وجو ، تحقیق
Inquisitiveness
کنجکاوی
Inspection
بازرسی
Intermediate
واسطه
Investigate
تجسس کردن ، تحقیق کردن
Legitimate
قانونی ،مشروع
Martyrdom
شهادت
Measure
اندازه گیری کردن
Members of parliament
اعضا مجلس
Mission
ماموریت
Objective
عینی ، قابل مشاهده
Officials
کارگزاران
On the other hand
بعبارت دیگر
Oppress
ستم کردن ، تعدی کردن
Oppression
ستم ،ظلم ، تعدی
Oversimplify
خیلی سهل گرفتن
Pest
آفت ، بلا
Peace be upon him
درود بر او
Philosopher
اندیشمند
Piety
دینداری
Preamble
مقدمه
Preparation
بسیج
Privatization
خصوصی
Procedure
رویه ،روش
Professional
تخصصی ، حرفه ای
Pursue
پیگیری کردن
Rank
رتبه بندی کردن
Rebel
شورش کردن
Rectify
اصلاح کردن ، برطرف کردن
Relationship
پیوند ، رابطه
Reliable
قابل اطمینان ، موثق
Religious
دیندار
Religiousness
دینداری
Remedy
درمان کردن ، اصلاح کردن
Remind
یادآوری کردن
Remove
عزل کردن
Revenge
انتقام گرفتن
Review
تجدیدنظرکردن
Ridicule
تمسخرکردن
Rival
رقیب ، حریف
Scale
شاخص
Schedule
زمان بندی کردن
Scrutiny
بررسی دقیق ، موشکافی
Search
جستجو کردن
Self-admiration
خودپسندی
Senior management
مدیریت ارشد
Sensation
حس
Show partiality
غرض ورزیدن
Signify
معنادادن، دلالت داشتن
Specify
مشخص کردن
Standard
معیار
Substitution
جانشین
Subjective
ذهنی
Suitable
مناسب ،شایسته
Supervise
نظارت کردن
Supervisory
نظارتی
Supplication
درخواست
Swear
سوگندخوردن
Threat
تهدید کردن
Treat
درمان کردن
Trend
گرایش
Tyranny
حکومت استبدادی
Unattainable
دست نیافتنی
Uncover
افشا کردن
Unfair
غیرمنصفانه
Unknown
ناشناس
Unlawful
غیرقانونی
Untrustworthy
غیرقابل اعتماد
Usury
رباخواری
Verse
آیه قرآن
Violate
تجاوز کردن به
Watch over
نظارت کردن
Willfully
خودسرانه
Withdraw
کناره گیری کردن
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