Original Research

The determination of an optimal size for building societies' branch offices in South Africa

P. D. Gerber
South African Journal of Business Management | Vol 11, No 3 | a1246 | DOI: https://doi.org/10.4102/sajbm.v11i3.1246 | © 2018 P. D. Gerber | This work is licensed under CC Attribution 4.0
Submitted: 26 October 2018 | Published: 30 September 1980

About the author(s)

P. D. Gerber, Department of Business Economics, University of South Africa, Pretoria, South Africa

Full Text:

PDF (224KB)

Abstract

The size of a building society's branch office can have a significant influence on its profitability. In this article a model for an optimal size branch office is established on the basis of three criteria, i.e. the ability of the branch office to generate income, efficiency of labour and control of administrative expenses. A revenue potential index is compiled based on the assumption that revenue potential depends on the volume of funds handled by a branch office. On this basis, weights are allocated, and a ranking order is established for revenue potential according to branch office size. Labour efficiency is measured in terms of average assets controlled per employee. Efficient control of administrative expenses is evaluated in terms of average administrative expenses per employee. From these findings a clear guideline could be established for the optimal branch office size from the profitability viewpoint.
Die grootte van 'n bouvereniging takkantoor kan 'n belangrike invloed op die winsgewendheid daarvan uitoefen. In hierdie artikel word 'n model vir 'n optimale grootte takkantoor aan die hand van drie kriteria bepaal, naamlik die vermoe daarvan om inkomste te genereer, die doeltreffendheid van arbeid, en beheer oor administratiewe uitgawes. 'n Inkomstepotensiaalindeks word saamgestel op die veronderstelling dat dit afhang van die volume fondse wat deur 'n takkantoor hanteer word. Op grond hiervan word gewigte toegeken en 'n rangorde bepaal vir inkomstepotensiaal volgens takkantoorgrootte. Arbeidsdoeltreffendheid word gemeet in terme van gemiddelde bates per werknemer beheer. Doeltreffende beheer oor administratiewe uitgawes word beoordeel in terme van gemiddelde administratiewe uitgawes per werknemer. Uit hierdie bevindings kon 'n duidelike riglyn vir die optimale takkantoorgrootte uit die winsgewendheidsoogpunt neergele word.

Keywords

No related keywords in the metadata.

Metrics

Total abstract views: 1168
Total article views: 515


Crossref Citations

No related citations found.