The highest decision-making bodies of Norges Bank are the Executive Board and the Supervisory Council.
The Executive Board is responsible for the Bank’s executive and advisory activities. The Governor and Deputy Governor of Norges Bank are chairman and deputy chairman, respectively, of the Executive Board. The Governor is responsible for the day-to-day management of the Bank and represents the Bank externally.
The Supervisory Council supervises the Bank’s operations and ensures that the rules governing the Bank's activities are observed. The Office of the Supervisory Council shall perform supervisory tasks on behalf of the Supervisory Council.
A clear distinction is drawn between central banking and investment management. The central banking operation consists of the operational areas Norges Bank Monetary Policy and Norges Bank Financial Stability, together with Norges Bank Administration, which provides staff and support services.
The investment management operation Norges Bank Investment Management (NBIM) manages the Government Pension Fund Global and much of the Bank’s foreign exchange reserves. NBIM has some support functions of its own but also leans on Norges Bank Administration.
In addition, the Bank has an Internal Audit unit.
The division into a few relatively large units provides an appropriate span of control for the Governor and Deputy Governor. At the end of 2010, the central banking operation had around 310 employees, including the Office of the Supervisory Council, while the investment management operation had around 280 employees. Altogether, Norges Bank had around 590 permanent employees.
Organisation of the Bank (Click on the chart to see a larger version)
The Executive Board delegates much of the operational management of the central banking operation and the investment management operation to the Governor and the CEO of NBIM respectively. These two, in turn, largely delegate day-to-day operations to the operational areas. Pursuant to Section 5, final paragraph, of the Norges Bank Act, the Governor is in charge of the Bank’s administration and the implementation of the decisions.
Within the annual frameworks allocated for FTEs and budgets, the individual operational areas are allowed considerable freedom with respect to personnel management and budget disposal. An upper limit on the number of FTEs that may be utilised over a three-year period is recommended.
A strong degree of line management results in a clearly structured organisation with clear lines of responsibility. The The operational areas prepare annual action plans for their activities with associated performance targets for approval by the Governor and the CEO of NBIM respectively. These two review the performance of the head of each area during the year by means of appraisal dialogues in the spring and follow-up dialogues in the autumn. Follow-up discussions are normally held every three to four weeks throughout the year.
All managers have clearly defined responsibility consistent with the organisation of the Bank’s operations and the line management principle. Each year, managers are subjected to appraisal by their immediate superiors and sub-ordinates. The appraisal criteria are direction, result orientation, interpersonal skills and professional qualities.